#53 of the Top 100Local Business

Open a Home Daycare

People search: “how to start a home daycare” (10K+ per month)

Care for a small group of children in a licensed home setting, charging weekly or monthly tuition per child.

Local business? Scan the competition in your city first →

Difficulty

Advanced

Startup cost

$1,000 to $10,000

Time to first $

90 to 180 days

Revenue potential

High

Profit margin

20 to 35 percent

Viability

8.0 / 10

Search demand

High (10K+ per month)

Where it runs

Local

Best for: Parents, teachers, caregivers who love kids

The opening

Why this idea is overlooked

Licensing scares people off, yet childcare demand outstrips supply in most towns and waitlists are common.

The roadmap

How to start, step by step

  1. 1

    Read your state's licensing rules

    Search your state plus 'family child care home license' and note the ratios, square footage, and training hours required. Every later step hangs off this document.

  2. 2

    Complete training and background checks

    CPR and first aid certification, required pre-licensing orientation, and background checks for every adult in the household. Start these early because processing takes weeks.

  3. 3

    Prepare your home for inspection

    Outlet covers, safety gates, a fenced outdoor area, fire extinguishers, and dedicated nap and diapering spaces. Fix what the inspector checks before they arrive.

  4. 4

    File the license application

    Submit while you finish home prep and schedule your inspection. Ask the licensor about the CACFP food program, which reimburses meal costs per child.

  5. 5

    Set tuition and write your handbook

    Call three local daycares to price your market, then write a parent handbook covering hours, sick policy, late pickup fees, and a signed weekly tuition contract with a deposit.

  6. 6

    Get daycare liability insurance

    Standard homeowners policies exclude childcare. Get a family child care liability policy and register with your state's child care subsidy program to accept more families.

  7. 7

    Fill your first spots

    List on Winnie and Care.com, post in local parent Facebook groups, and tell nearby elementary schools. Waitlists are common, so a licensed opening often fills itself.

Your first move

Look up your state's home daycare licensing requirements and start the application while you set up your space.

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