A Comprehensive Guide to Starting and Growing a Home Daycare

If you’re a person who has a business mindset, loves children, and is passionate about helping families, a home daycare might be just the perfect business venture for you.

Compared to other businesses, starting a home daycare comes with lower risks while you get a chance to earn a good income.

However, the business side of starting and managing your home daycare is somewhat complicated and requires strong organizational skills and the desire to learn along the way.

In this article, we offer a comprehensive guide to starting and growing a home daycare.


The very first step when starting any business is preparing a good business plan which will force you to plan and consider all important aspects of starting a home daycare. Ultimately, it will serve as a stable foundation to build off of.

That said, one of the crucial first steps also involves obtaining the right daycare insurance because no matter how careful you are, accidents happen every day especially when children are involved.

When writing your business plan, you might think that insurance is one of the points where you can cut down on expenses.

However, keep in mind that a good insurance plan will always be worth the cost as it will give you peace of mind, ensure that you’re covered, guarantee the safety of the children, all while protecting your business from the unexpected.


The licensing process in each state is different and so you should research what the exact requirements and guidelines are in your area.

Certain rules also depend on the number of children you plan on taking care of and this can also mean that you can run your business with or without a license.

Still, it would be in your best interest to get a proper license for the daycare as it’s the most professional thing to do and it will help you ensure parents that their child is sent to a place that meets all standards established by relevant authorities. Obtaining a license mainly involves training, background record checks, filing plenty of paperwork, and a home inspection.

When your daycare licensing is done properly, it may also make you eligible for funding and different professional development opportunities which can significantly influence the success and growth of your business.


The truth is that although you won’t necessarily need to hire a lot of employees to run a home daycare, you won’t be able to handle everything on your own.

Depending on the requirements, you may need a certain teacher-to-child ratio and it can become a burden for you to handle all administrative tasks, meal prepping, and cleaning at the same time.

Having many responsibilities and dealing with different tasks might wear you out and cause you to forget about why you wanted a daycare business in the first place.

During the hiring process, make sure to focus on candidates who share the same values as you and who show sincere love for this demanding work.


One of the most important parts of having a successful home daycare is the program, routine, and activities that the children will enjoy and benefit from every day.

This requires extensive research and planning so that the children are supported and guided in all areas of learning and development while taking into account their interests, skills, abilities, and needs.

Along with your staff, you can draft a written plan of the approach or framework you are considering implementing and this will serve as the perfect example when explaining the program to families who want to enroll their children.

Make sure your program incorporates information from families about their children’s interests and experiences, and organize regular meetings with them as this is the best way to improve as you can exchange opinions, write down their ideas, and suggestions.


Once you feel sure that things are running smoothly, it’s time to grow your business. Having satisfied parents and happy children enrolled at your daycare will be a massive plus when putting the word out. Marketing isn’t always easy but word-of-mouth and good references are the best strategies to ensure a thriving business.

To take things to the next level, try advertising online and on social media and communicate all that your business has to offer.

Final Thoughts

Opening a home daycare is a serious undertaking. To get it up and running, you must first obtain licensing, insurance, have a clear plan about budgeting and regulations and last, but not least, make sure that you get positive feedback from your clients.

By following this simple guide, you’ll be sure to have a rewarding and thriving business in no time.

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