Start a Child Daycare Business

Today, many parents are searching for an affordable child daycare services. The new economy has forced many working parents to take their children out of traditional child day care centers. Yet, with every problem there is usually a business opportunity.

The Concept

If you love children and are looking for a great business that you can start from your home then consider starting a home-based child daycare business. These new smaller forms of a traditional day care business are becoming popular since more and more parents are working longer hours and second jobs. A home daycare business will not be able to take the volume of kids that a traditional daycare business does. Yet, this can be used to your advantage as you will be able to focus more on the children you have and their particular needs.

The Start-up Costs

When preparing for a home day care business, the first costs to factor into the equation are the fees associated with licensing. In most states, child daycare businesses require a license even if they're located within a residence. The next essential cost is for insurance. Though, you may not have to purchase a separate insurance policy. Most homeowner policies will not cover this business unless you add a rider (or addition) to your policy to include this new business. There are other costs to consider, but also ways to save on these initial expenses. Training fees are essential for child daycare beginners. Typically, you can take a few classes, like CPR training, at a local university or community college. But, you can also check with your local and state governments to see if any of these classes are offered for free. Toys can be purchased cheaply online or at garage sales. And, the federal government often provides assistance with food costs.

Marketing

The best marketing strategy for a home daycare start-up business is word-of-mouth. Start by, letting your neighbors know your intentions. You may find that they are either looking, or know someone who is looking for a good daycare service provider. Typically this is the best place to start as these individuals already know and feel comfortable with you. Another good place to drum up business would be to spread the news among your church family and/or club members. The key thing to remember about marketing for your home child daycare business is that there is no reason to spend much money on marketing. If you are able to create flyers, and talk to those around you, the marketing strategy for your start up is well under way. However, you can post free ads on local classifieds websites, such as craigslist.

Take-away Tips

Understand that you should keep great financial records for tax purposes. There are tax deductions that you can qualify for, that will off-set some of your expenses. There are deductions for toys, training, and other business related expenses. And, if you have clear separations for items such as phone service you may qualify for even more deductions. Also, do your home work to make sure that your rates are reasonable and fair to your customers and yourself.