Caring for children is not only a noble business option, but it’s also a lucrative one. People who own and operate childcare businesses can often take on up to 8 kids on their own and charge as much $200-$300 per week or more depending on the state they are in. While there are plenty of expenses as well, this option is a fantastic business opportunity, especially in areas where quality childcare is in short supply. Launching a childcare business is no simple task. There are plenty of steps to go through, but in the end, you’ll have a great business with customers who always need your services.
Background Checks
Not only will you the business owner need to undergo a background check, but all the people you employ will as well. This is important to ensure the safety of the children you’ll be caring for. Don’t wait until the last minute either. How long does a background check take? Well, it depends on the service you use and if you provide all the important details right away or not. Some electronic ones are very quick and can turn around results in a few days, others through the police department can take a few weeks or more.
A Legal Business Entity
Operating a childcare facility either out of your home or in a separate facility means you’ll need a legal business entity. While someone who babysits might get away with being a sole proprietor, someone running a legal daycare should also have a legal business like an LLC or S-corp. There are not only many benefits to having one of these, but there are also many protections afforded individuals against liability if they have the right corporate structure. Unless you are doing something criminal, the legal business entities can help shield your personal assets in the event of litigation.
State Licensing
There are many different kinds of childcare facilities and each one has different state licensing requirements. Drop-in facilities for part-time care will have many different regulations than a full-time center. A home daycare also has unique regulations. It’s important to get all the details from your state about licensing a facility to ensure you hire the right kind of staff and that you follow any continuing education requirements for you and your staff.
Adequate Facilities
State licensing officials will give you a detailed checklist about what needs to be in the childcare facility. There need to be bathrooms, kitchens for preparing food, safety locks, and so much more. They will tell you what kinds of things to do to your home to ensure children are safe. This may even extend to your outdoor spaces as well, and if you have pets, they will also give you important details about what to do to create safety for the children who will be in your care. For facilities outside the home, you may need to do extensive construction depending on what’s already in a building to ensure it meets the state minimum requirements.
Child-Friendly Supplies
Some states require a certain number of toys, books, games, and gear for children of a variety of ages. You’ll want to be sure that any toys you have do not contain any choking hazards, harmful paints, or other materials that could hurt an infant or child. For bigger kids, you’ll want art supplies, beginner reader books, imaginative play toys, and more to keep them occupied and entertained in age-appropriate ways.
Legal Contracts
It’s important to work with a lawyer to ensure you have all the right legal documents for your clients to sign. This will help you in the event you need to get payment, deny service, or send a child home for sickness or poor behavior. Legal documents that parents sign to bring their children to your childcare business helps everyone be on the same page.
A Way to Accept Payments
Whether you choose to operate cash, credit, or even check-based is up to you. The best childcare facilities offer the option for all three. You’ll need to issue a receipt as well. Part of planning for your childcare business means looking into getting a payment portal and a process for accepting payments from the families.
