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Business Startup Checklist: How to Start a Daycare in Your Home

Business Startup Checklist: How to Start a Daycare in Your Home

How to Start a Daycare in Your Home

If you’ve been wanting to start a daycare in your home and become a business owner, now is a great time to do it. To open your own daycare will be more than a service for your community, but a very fulfilling and successful career on its own. 

Business startup checklist: How to start a daycare in your home

How to Start a Daycare in Your Home

Here’s a checklist of steps to take on opening a daycare in your home.

1. Licensing and Certificates

Depending on which province your daycare is operating out of, you may need some type of license. Several provinces determine licensing based on the number of children you are caring for. For example, in Alberta, if you are caring for 7 or more children you will be required to get a license.

If want to start a daycare in your home for 6 children or less you are not required to have a license, but you have the option of becoming an approved family day home. 

To find out what your province’s licensing requirements are, do a simple Google search! This information is easily accessible to you.

For certifications- Before you take a big gasp and run for the hills, this is in regards to Standard First Aid courses (which is required). If you have this already, that a bonus.

The Standard First aid with child and infant CPR training is required for all home care practitioners because of the ability to save lives and is required as part of the Child Care Modernization Act, 2014.

Additional things you can do, but is not required but would recommend taking weekend courses for a business organization. Or you can review our blogs on business expenses. This way you know what expense receipts to keep aside.

2. Protection

Deciding whether or not you are going to join a governing body or agency when you start your home daycare will be very important when it comes to having back up.

In the event that you are unable to care for the children due to an illness or other emergency, you will of course need someone who is prepared to step in for you!

3. Grants and Funding

There are several funding options for child care programs and providers! Again, this is dependent on which province you live in. Do a little research for your region, and see what funding is available to you! For example, British Columbia offers one-time startup grants for unlicensed child care providers looking to start up their daycare and become licensed.

Here is a list of the top child care associations in Canada and the United States.

4. Budget

What are the costs to open a home daycare?  Think about any additional supplies you might need for your home and food and activity costs.

The budget will also take into account any changes to allow for adequate space requirements. If you think a daycare in your home would have sufficient space for every activity, think again.

You may need a separate room for eating, sleeping, and other activities. Depending on the children’s age, you may need space for baby cots and educational spots for older kids.

The toys and art-n-craft accessories need their own storage space. These issues may seem trivial, but taking care of them goes a long way when it comes to organizing and managing the daycare inhabitants and their activities.

Your daycare facility must have a first-aid kit, fire extinguisher, and smoke alarm (at the appropriate spots). Age-appropriate toys and art supplies are also a must-have for your little residents. And do not forget the great outdoors.

A reputed daycare caters to spending at least two hours outside every day as and when the weather permits. There should be proper fencing around that area, and it should be free of any potential hazard. If your budget and space allow, then make room for outdoor toys and other play equipment.

5. Set the price

This step is where you will need to determine your rates – don’t be intimidated by this! This is an exciting phase. It is an excellent idea to do a little research here and see what other day homes in your area are charging.

Another good rule of thumb is determining what “kind” of day home you will be opening. Are you going to promote yourself as being different from other day homes because you do educational activities?

You will be able to determine better what your rate should be when you consider things like your hours of operation, flexibility, activities, etc.

6. Home Care Contracts and Database Record

You will need to have contracts made for each of your clients to sign. Such a measure will protect you from any future issues, such as late fees, illness and injury, and damages. Some key things to include in your contract are the length of the agreement, tuition fees, late/cancellation fees, hours of operation, illness, food allergies, rules, and discipline.

Some other things to include are activities arranged for the children and the distribution of time being spent in the daycare. There should be a proper routine for older children with fixed meal and snack times, nap times, and times for art and educational activities.

Establishing policies and procedures for your daycare adds a professional look to your business. Some daycare facilities keep attendance records. It would be best if you recorded the meals served, completed activities, and finished milestones. Updating such a database would not only help in marketing your business but also aid in creating long-term client relationships.

Here is a general template for a day home contract!

7. Home Insurance

You may need to extend your home insurance plan for this type of business. Liability insurance delivers in the interest of daycare providers, licensed or without a license.

Of course, there are always exceptions, so make sure you call your insurance company and confirm that your business plan is fit for running a day home. If it’s not, this can easily be changed!

8. Money-Saving Guide

Once you have taken the first six steps to start a daycare in your home, you are ready to download CorePro8’s free money-saving guide on pre-business expenses! This guide will give you tips on how to save money and organize your business. We’ll give you the information you need to make sure you’re not missing out on writing off business expenses.

Get your free money-saving guide straight from our website!

Business startup checklist: How to start a daycare in your home

9. Market Yourself

Marketing is an essential part of opening a home daycare, yet it is often overlooked. We emphasize the significance of keeping things local and targeted at your potential customers.

Set up a Facebook page to let others know of the opening of your home care business. Re-post it to local community groups on social media. Ensure your social media page has pictures showing your pace and availability for children. Some home care providers even go as far as providing a layout of the daily activities with meal times and naps.

Post flyers for your business in local libraries, community centers, cafés, and supermarkets. Use the economic points of interest that social media sites can offer, and do what you can to make your business look proficient and ready. Once your daycare is efficiently up-n-running, word of mouth would be enough to attract clients.

You’re Ready!

When you’ve ticked all 7 boxes and you’re ready to start your business, CorePro8 can walk you through the next steps of starting a business. Using CorePro8 will help ensure sure that you’ve followed all of the rules and regulations so that you stay out of trouble with the Canada Revenue Agency.  With CorePro8 you can start a business without having to leave the house. Registration can all be completed online.  

To start your business, register with CorePro8!

About Coreina Hubert

Coreina Hubert is the founder and CEO of CorePro8, a program that guides business owners step-by-step through the process of registering or incorporating their business. Previously, Coreina worked as an accountant at her company, Book-it Bookkeeping Inc.

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