If you’re ready to take your passion for children and caregiving to the next level, it’s time to start your in-home daycare. However, starting any business can be intimidating and challenging, especially if it’s your first time. And when it comes to starting an in-home daycare, there are a number of additional considerations, such as in-home daycare insurance, that you must understand and navigate. Fortunately, we’ve outlined the top five often-overlooked steps for starting an in-home daycare.
1. Start with Market Research & a Business Plan
Although you may have remarkable ideas, it’s important to start with your customers and their needs. Ask yourself:
- Is there a need for an in-home daycare in your neighborhood or community?
- Have you noticed parents discussing the desire for more affordable childcare options?
- Are there needs that existing daycares are not fulfilling?
In most instances, the answer to these questions will be a resounding “Yes.” Even so, you should conduct market research. Once you have, it’s ideal to create a comprehensive business plan for daycare centers to make sure all of your boxes are checked. In the end, those who fail to plan are planning to fail.
2. Confidently Know Federal and Municipal Requirements
Requirements for opening an in-home daycare can vary from state to state. As a result, you should familiarize yourself with the requirements for opening a home-based daycare. In addition to a range of federal, local, and state laws, there are unique insurance requirements for in-home daycares, which we will discuss in more detail below.
One great source of truth is the Small Business Administration’s How to Start a Quality Child Care Business. This 69-page guide is a comprehensive solution that provides the ins and outs of starting a home-based child care business.
3. Be Financially Capable and Competent
One thing is for certain — starting a home-based daycare business will require some form of financial investment. A good rule of thumb when planning for these costs is to overestimate everything. For instance, if you plan on having three kids, you should plan for accommodations for at least five tiny patrons. While overestimating may drive your costs up, it will offer you flexibility in your budget, which can be instrumental later.
In either case, the costs will be directly related to the number of children you plan on caring for. Some of the most common costs you should budget for include:
- The cost of insurance
- The hiring of daycare staff (Make sure you’re aware of the required legal staff-to-child ratio)
- Necessary changes to your home
- Food for the children
- And more
Once you have created a comprehensive list of your costs, you’ll be better equipped to know how much you should charge for your services as well as whether your business will be profitable. Also, it’s a great idea to learn the rates charged by comparative businesses.
4. Where to Find Funding for a Home Daycare?
Make sure to conduct extensive research for funding. Fortunately, there are a number of different external funding options. In many instances, local, state, and federal governments will offer affordable loans and grants you can use to jump-start your business. Again, the Small Business Administration can be invaluable when it comes to finding funding.
5. Meeting the Necessary Insurance Requirements
Starting any business will require a certain degree of risk. However, when you are starting a business that involves the care of children, the stakes are much higher. Because of this, you’ll need adequate insurance protection for the center as well as theft and fire insurance for your home. You will also be required to have liability insurance to protect the children, your staff, and your center. To make matters even more confusing, the insurance requirements can vary from state to state. But no matter your state, accident, and liability insurance are both considered essential.
Contact InHomeDaycareCoverage.com for Guidance & Quotes
While understanding the necessary insurance requirements for starting a home daycare business can be confusing, the team at InHomeDaycareCoverage.com makes it easy. We are a team of experienced insurance specialists who will match your unique needs to the best insurance coverage solution. At InHomeDaycareCoverage.com, we’ll do the heavy lifting, so you can focus on creating a successful business.
Contact us today to request guidance and a free quote.