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Starting a childcare business seems to be one of the most stable career options for people with expertise in the field, as this business industry is currently valued at 54.3 billion dollars. If you are a former teacher looking for a new career venture or a licensed childcare expert looking to boost passive income, a daycare business can fill your life with joy and your bank account with profit.
However, starting a business can be very stressful as it requires a lot of planning and playing your cards right. For that reason, we decided to help passionate interferents with quick and easy steps that will take you to success.
Licensing your daycare
Many daycare businesses start small but it is possible to transition from a babysitting or nannying business to a childcare business.
However, for that to happen, you will need to comply with all local and state regulations when you make that transition. Childcare Aware of America’s licensing guidelines is a great resource for childcare providers to ensure compliance with all applicable rules and regulations. If you don’t find the necessary information, you can contact your state’s Department of Children and Family Services (DCFS).
A CDA (Child Development Associate) credential is also required by most states to support your dedication and experience in child care. On top of that, additional documentation such as proof of training, experience, and credentials is also needed.
Although requirements may vary from one state to the next, you will need to have a current CPR certificate in order to open a daycare.
Write a daycare’s business plan
First things first, decide on the daycare’s name and mission. Next, choose your marketing plan, organization plan, staffing, operations, and budget. All of this might sound very complicated without a solid plan but that’s where a business plan can come in handy.
Running a daycare business is one of the most difficult jobs in the world. You have to deal with a variety of challenges that may arise, such as safety hazards and much more. To ensure that everything is going well, write a winning business plan that will serve as a guideline for how your business will operate for years to come.
If you are short on time and can’t organize everything, you can always use a child care business plan template that will help you cover all the important aspects of your business in no time.
Find a suitable location
As with any business, location is key. When you are planning a daycare business, you can either rent a space or if you own a spacious home, you can convert a large space of it to cater to your daycare needs.
If you decide to rent a place, always look for areas where the population is dense so that you maximize your potential for profit. Parents, for instance, might be concerned about safety and security if their children live near a highway. So, your best bet is to opt for a suburban location where traffic regulations are strict.
Get the right insurance
Daycare facilities must be licensed by the Department of Health and Human Services, with the exception of home-based centers. Liability insurance is an integral part of licensing. Liability insurance covers you and your company in the event that someone is injured on your property.
Workers’ compensation is a type of insurance that can also be helpful in running your business as it will provide insurance for your employees.
Equip your daycare
For your daycare business to operate correctly, you will need the right equipment. For instance, you will need first aid kits, smoke detectors, carbon monoxide detectors, fire extinguishers, and much more. Besides safety, you will have to add a nice touch of decor to your property and include entertainment.
Play material such as puzzles, floor gyms, play vehicles, and musical instruments is a must if you want to help with the development of the children. If you feel that you should add additional equipment, consider consulting their parents or even the children so that they can give you feedback.
Final thoughts
Opening a daycare business is not an easy task, but with the proper guidance and planning, you can achieve your dreams seamlessly. The first phase of your daycare should include a solid business plan as well as obtaining the legal document, and finding the right location to run your daycare business. Purchasing equipment, furniture, and playing materials should be the last phase of the process and the most fun part of opening a daycare business.
