What to Consider Before Starting a Home Daycare

Written by editor on September 17, 2013 Categories: Finance Tags: ,

Although starting a home daycare business can be exciting and rewarding work, there are a number of factors one must consider before making the commitment. Following are several aspects of home daycare which one should think about before starting a daycare business.

First, decide upon what payment method would work best. While many providers take debit and credit transactions with ease, financing accounts receivable can come with hidden fees and other expenditures. A cash-only method may work as well; However, it is important to note that all income must be backed up by transaction receipts in order to properly calculate income taxes.

Many home based daycares require state certification. There are a number of requirements that a home daycare must meet in order to receive certification. This may require extensive home modifications and other costly expenditures.

CPR and basic life support certifications are a must if one is considering implementing a daycare program in one’s home. No daycare provider wants to believe that she will ever be in a position to use these skills, however, it is best to prepare for the worst.

Assess how many children can be taken care of in one’s home. While more children means more income, this may not be in the best interest of each child. Many parents choose home daycare programs over standard daycare due to the ability for the provider to give individualized attention to each child. Ideally, no more than three to four children should be cared for. at a time.

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