If you have a love of children, a patient demeanor, and plenty of energy, then starting a daycare business may be the opportunity you’ve been searching for!
There are certainly plenty of issues that must be managed when starting a part-time business in daycare, including health regulations, safety codes and licenses, but a daycare business may be a rewarding way to earn extra cash – and have fun too!
Not everyone has the personality to run a daycare business, but if you have experience in childcare services, a genuine admiration for children, and a safe secure home from which you can run your part-time business, then your dream of starting your own daycare business may become a reality.
Skills Required: A background in childcare or child rearing, CPR
Although there are no set skill requirements for running a daycare business, it certainly looks better in the eyes of potential customers if you have a background in childcare (i.e. daycare provider, teacher) or if you are simply a parent yourself.
Training in CPR, first-aid and other life-saving treatments are also a necessity if you are considering a part-time business in home-based childcare.
Depending upon your specific municipality, you may also be required to take early education classes at your local community college for licensing purposes.
Other skills include good health, the ability to move about easily and to not tire easily.
Startup Expenses: $1,000 to $2,000
The first step you will need to take before opening your childcare business is to learn about the licenses required for your particular state. Just some of the items you will need to address include: health regulations, safety codes, zoning laws, emergency procedures, fire drill procedures, fire inspections and adequate square footage. All of this may cost anywhere from a few hundred dollars to a few thousand dollars.
You will also likely need to purchase liability, theft and accident insurance for your part-time business. In addition, you will need to take the appropriate steps to child-proof your home.
And don’t forget about purchasing baby equipment (play pens, strollers, highchairs, toys, baby gates, etc), if needed. You will need to make sure all of your baby equipment is safe and has not been recalled.
Monthly Revenue: $500 to $1,000
You can expect anywhere from a few hundred dollars to close to $1,000 through a part-time daycare business, although ultimately your revenue will depend on how many children you care for during any given month.
Monthly Expenses: $100 to $200
Expenses associated with your childcare services will usually be food and supply-related, although the cost of insurance should also be factored into the equation.
Time to Break Even: One to two months
After all expenses have been covered and all supplies have been purchased, you can expect to break even after about a month or two of childcare services.
Possible Bumps in the Road
You may find the process of acquiring the needed licenses to be quite time consuming and difficult, and it may be hard to find your first clients. Many times, clients want to see an established daycare business, but if you have a nice network of friends and business contacts in your area, then you can find those first clients to get your part-time business up and running.
