Q:

How do you start a day care?

A:

According to the U.S. Small Business Administration, the first step in developing a child care business is obtaining specific demographic data for the area where the business is to be located. Knowing where the greatest need exists is crucial to the business' success. The Small Business Administration has useful resources for completing market research of this kind.

Of course, starting a business involves more than simply identifying a need, says the SBA. Child care providers need a location that complies with specific zoning laws in their municipality and insurance on the property, including liability and casualty insurance such as fire and theft. Additionally, state licensing laws usually require that the property complies with specific provisions of the Americans With Disabilities Act. Potential providers are encouraged to set up a pre-licensing inspection of the property to ensure that it complies with the all of these statutes before applying for a license. A child care provider license is required in all states in the United States.

Another important component of being a child-care provider is having a well-structured business, according to the SBA. This includes such factors as having a well-written business plan and a marketing plan for recruiting new clients. Lining up sources of financing to get the business started is crucial, as well. Other factors include legal considerations, such as how to structure the business, registering the business name, filing the correct tax identification forms, and obtaining a business license and all necessary permits. Careful screening of potential employees and knowing the legal responsibilities involved in being an employer are important, too.

Sources:

  1. sba.gov
  2. sba.gov

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