If you enjoy working with children, running a child-care business is a great way to make a living.There are two main ways to run a child-care business.Start a center-based business if you want to care for a lot of children.Those with children of their own may want to consider a home-based, family, child-care center.You will want to understand how to set up your business.
Step 1: There is a need for child care in your community.
Before you start a business that provides child-care services, you need to research the market for that service in your community.The best way to get this information is to speak to the parents of the community in which you want to do business.Interview several families and ask the parents what type of child care they could benefit from, and the extent to which this kind of service is already provided by local businesses.Census data for your community includes the number of working families with children of an appropriate age, recent marriages, and the income distribution of those families.You can find this information from a number of sources, including the U.S. Census Bureau.
Step 2: Take a look at the existing child-care businesses.
Determine who your potential competitors are.If there is a need in your community for a certain type of child care, it would be best for you to serve it.Do you know what age groups are already being served by your potential competitors?What are the hours of other businesses?What types of child-care services are available in your area?How many of these businesses already exist in your community?
Step 3: Decide if you will operate a home or center-based child-care business.
There are two types of child-care businesses, one run out of your home and the other at an independent location.What legal requirements you will have to comply with and what type of child-care business you want to run will determine what you need to account for in your budget.Home-based child-care businesses have a lower overhead and are more convenient for you and the parents who need you the most.The legal requirements to operate a home-based child-care business are not as strict as those for a center- based business.A center-based business will give you more space so you can expand your business and make more money.
Step 4: What kind of child-care business do you want to operate?
The next step is to decide what type of child care you would like to offer, after you decide whether you want to operate your child-care business at home or in an independent facility.It's a good idea to look at your motives for going into the child-care business.By considering why you want to get into this type of business in the first place, you can better understand what your community needs.Do you want to care for people based on their faith?Do you want to teach people how to build or reinforce skills?Do you want children to have a place to play?It will allow you to build the business you want, but it will also give you a budget for the things you might need to run such a center effectively.).
Step 5: A budget is made.
When starting a business, it's important to make a budget.Doing so will help you plan for the future of your business, and ensure that it has the chance to succeed based on the funding you have available to you.Start-up costs, annual expenses, and monthly operating expenses should be considered.Licensing, inspection, and insurance fees are the types of expenditures that you should consider when making your budget.There are medical tests and clearances.Safety devices include smoke alarms, fire extinguishers, carbon-monoxide detectors, first-aid kits, child-proofing supplies, etc.You need food, toys, and equipment for your activities.Prospective employees are paid wages.Fees for advertising, legal, and professional service.Fees for rent, mortgage, and utility.
Step 6: Pick a name for the business.
One of the most important steps in the process is choosing a name for your business, because that is what will represent your services to the outside world.The type of service you will be providing should be indicated by your name.You will need to check with the secretary of state's office for your state to make sure that your proposed name does not conflict with any other name currently on record.
Step 7: You can choose a type of business.
There are different types of legal structures that can be used for your business.If you operate as a sole proprietor, you will have an easier time filing your taxes.If you operate your business as a corporation or a limited-liability company, you will be able to limit your liability to the funds that you put into the business.In order to get a good understanding of the different types of structures available to you, you should speak with a local attorney who is experienced in business formation.
Step 8: Contact your country's local government.
Once you have a business plan in place and are ready to actually start setting up your business, your first step should be to contact your local government to determine what legal requirements you must comply with in order to properly run a child-care business in your county.You should ask the office if you need a business license and how to get it.What building codes do you need to meet?How many children will you be able to take care of legally in your county?You can find your local child-care agency by typing in your zip code on the website.
Step 9: Pick a location.
If you plan to operate your child-care business out of your home, this step is complete.If you want to open a separate facility, you need to choose one that is in a good location that you can afford.Depending on your available funding, you will need to consider whether to buy or rent this space.Is the location convenient for parents when you're looking for a location outside of your home?Does public transportation take you to your proposed location?Is it safe?Is there enough space for your business?Does it have enough kitchen and bathroom facilities?
Step 10: Call your county's office.
You will have to make sure that the location complies with local laws.If you want to inquire as to whether your proposed location is appropriate for child care, contact your county's zoning office.
Step 11: Make sure your facility is ready for inspection.
This should include installing cabinet locks, setting up changing tables, putting up smoke detectors, and installing electrical outlet covers.You might need to post an emergency plan.If you don't pass the first time, you will be given a chance to correct the errors and be inspected again.
Step 12: Schedule the necessary inspections.
To make sure that your proposed location complies with local health and safety laws, you will likely have to obtain a series of inspections.You may have to schedule a fire safety inspection.A health checkup.An environmental health checkup.
Step 13: Obtain licenses.
Most of the time, you will have to apply for and be granted the proper licensing in order to care for children.Depending on your jurisdiction, the type of licensing you will need will be different.If you want to run a child-care business, your local municipal government office should be able to tell you what licenses are required.You should read carefully the overview of the licensing requirements applicable to you provided by your state's licensing office.You will attend an orientation session where you will learn about state and local requirements for operating your business and complying with applicable state law.A licensing application needs to be filled out.Paying a fee.The licensing agency reviews your business plan, inspects your facility and completes the licensing process if you work with them.Taking classes that focus on first-aid.You and any prospective employees will be subjected to a background check.You and any prospective employees are required to undergo medical testing.
Step 14: It is necessary to obtain insurance.
You will need liability insurance for your child-care business.You will be taking care of other people's children and you should give them the best attention possible.It will provide peace of mind to prospective clients and to you that your business is protected.Depending on the type of child-care business you intend to start, your local municipal government office should be able to tell you which types of insurance are required.
Step 15: Comply with tax laws.
Depending on the type of legal structure you choose for your business, you will have to contend with different tax obligations.As with choosing a legal structure for your business, tax law is complex and you should consider hiring a tax specialist to make sure you are paying taxes correctly and complying with applicable law.
Step 16: Purchase the necessary equipment.
The type of child-care business you want to operate will largely dictate what equipment and materials you need in order to run your business successfully.Children of different ages have different needs and interests, and the type of activities you will offer will require different equipment and supplies to operate effectively.Some or all of the following are child-sized furniture.Materials for arts and crafts include pencils, crayons, paper, safety scissors, and more.The toys include games, puzzles, dolls, action figures, Legos, and building blocks.Children's books.There are healthy snacks and meals.Storage containers for personal belongings.
Step 17: Hire employees.
Depending on the size of the business you want to operate, you may need to hire additional staff.As the employer, you will be responsible for their conduct on the job, so be careful with your staff selection.Try to find candidates with previous employment experience working with children when evaluating a potential candidate.Educational credentials are important as well.Potential hires should have received training in child care, child education, or a similar field.While not necessarily a legal requirement, you should consider if a potential hire has relevant certifications, like first-aid training.Depending on the laws of your state, you will need to make sure your employees have passed certain background checks, such as state and federal criminal-record-history checks or child-abuse checks.
Step 18: A marketing strategy is needed.
A sound marketing strategy will make the community aware of the great services you will offer.Take some time to think about the information you want to convey.Think about how you will describe the service you are going to offer.What is it better than what's already out there?What age do you serve?What hours will you be working?If you want to be competitive with other child-care businesses in the area, think about the price you will charge.Think about the advantages of your location.If you have staff, think about how to market them.What qualifications do they have for your business?
Step 19: There is a need to advertise.
Three months is enough time to start advertising for your child-care business.If you have the funds, newspaper, radio, and television ads will give you the most exposure, but they are not cheap.Even if you can't afford more conventional advertising, consider some of the less expensive options.You need to get permission from the owner of the property/building to put your fliers on first.Business cards are distributed at libraries, church meetings, and neighborhood get-togethers.An ad can be placed in the classified section of the paper.
Step 20: A daily schedule is needed.
You will have to decide what your daily activities will be.Some child-care businesses don't have a set schedule or routine, but make toys and food available for the children to use.Others take a more planned approach, with time set aside for playing, learning, napping, etc., based on the ages of the children being cared for.Take some time to think about what you will offer the children for whom you'll be caring, as well as what the schedule will be.If you don't know how to start, you can ask the parents in your area what they would like a child-care facility to offer or how they structure their child's time at home.