How Do You Start a Child Care Business?


Quick Answer

Starting a child care business involves evaluating local needs, finding an appropriate location, obtaining insurance and licenses, developing a business plan and finding funding. Also crucial in setting up a child care business are hiring and managing the staff, developing and executing a marketing plan and developing programming and activities.

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Full Answer

Assessing the specific child care needs of a neighborhood helps a prospective business owner determine whether to focus on infant care, after-school care, preschool care or any other specialty. It is possible to establish a home-based child care business, but the business must comply with local safety regulations and the Americans with Disabilities Act. Any other location also has to comply with local zoning laws.

Child care businesses typically need to be licensed by local authorities. Fire, theft, liability and workers compensation insurance are needed, and the business must apply for a tax identification number. Tax credits may be available.

A viable business plan is needed for a child care business, taking into account management, staffing and operations needs. Determining the costs to charge is a crucial decision that may make a key difference in the ability of the business to keep the doors open. Figuring out how many children can be accommodated is a key factor in this decision; local laws may limit the number of children who can be served.

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