How to set up a daycare center in your home to serve parents looking for childcare in small groups
, a Boston-based tech startup that helps in-home daycares manage their licensing, marketing, and operations, has also received a "higher than average" amount of interest from childcare providers looking to open up a new in-home daycare this year, according to CEO and cofounder Brian Swartz.
"If you've got one kid home with you and you've got some background or interest in child development, you can bring a few more kids into your home and make ends meet," Swartz said. "You can make a modest living doing this." So what exactly does it take to set up an in-home childcare program? Above all, it requires a deep love for and commitment to taking care of children. "You have to understand that you'll be with kids all day," Sager said. "You have to be patient and flexible and excited to watch children learn." "That being said, you don't have to have it all when you start," Sager added. For childcare providers interested in starting an in-home program, Business Insider tracked down the basics of where to begin.Family childcare programs are run out of private homes, but they're still licensed just like center-based daycares are. Licenses are given out by states and municipalities, and they vary widely across the country. There's typically a small application fee and time cost of any required training. You can find a database of state licensing regulationsGenerally speaking, licensing requirements cover basic health and safety issues like background checks for providers, adequate safe sleeping space for children, and equipment like fire extinguishers and outlet covers. Beyond that, providers will need a home space that also meets the needs of multiple children. "You want a space that has books in it, manipulative learning tools, an option to go outside," Sager said. This may be much easier to accomplish in a house than in a small city apartment. It's also important to check all zoning laws, homeowner association rules, and lease agreements before starting in-home childcare to make sure you're allowed to run the business out of your home. Organizations like All Our Kin and NeighborSchools can help providers with the nitty gritty of pricing, marketing, hiring staff, collecting fees, and other business concerns. There's no general rule for how much to charge, since pricing is highly dependent on location, but parents often pay a few hundred dollars per week. However, Sager pointed out some additional costs that new providers shouldn't forget to factor in. "In the current moment with COVID-19, it's very important that family childcare educators are protected against any sort of liability," she said, stressing the importance of liability insurance. "They are really on the front line." And as long as the pandemic continues, providers should also budget for additional safety equipment like cleaning supplies and PPE.Since most in-home daycare providers work by themselves, it's usually best to operate as self-employed, according to, an expert on the business of family childcare who has written more than a dozen books on the topic. But unlike other business owners who work from home, family daycare providers can claim any part of the home that's used for the daycare program as a business expense. That can include the living room for playtime, kitchen for snacks, and bedrooms for naps. "Most providers are able to count 30 to 40% business use of their home," Copeland said. "These are expenses they had anyway and now they are turning them into business deductions, which is a significant financial benefit to doing childcare in your home," he added.
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