At home daycare facilities and commercial day care facilities have major differences. For a person who is just in need of extra income while managing the household, a home-based day care center is a good choice. Manning a small day care center with around 3 or 5 kids at a time may not require licenses to operate plus there would not be a need to hire more than one extra help. Profit wise, the earnings to be gained is still strong and could be a good source of stable income.

For the businessman or businesswoman who is bent on building a child care facility that can provide for a larger number of children, the rules change. For one, since there are about 35 or more kids enrolled at a time, management of day to day activities, cash flow monitoring, taxes and other documentation tasks become more tedious. Aside from that, the requirements for licensing come in and that can take up so much time before getting to open your doors for business.

However, the profits to be gained would be much larger, as long as you can handle the stress and organization skills needed to bring your business to a successful level. To start off, you will need to check with your local government regulatory agencies about policies you need to follow in establishing your own day care facility. There will be much to digest, such as minimum area requirements, minimum ratio of children to handlers, and staff requirements. It would be best to research on all of these before starting your day care center business plan.

The licensing department will be the one to assess whether you need a license and a registration before operating. They will initially count the children you will be teaching plus the number of other children who are present in the establishment at the time of providing care. The department will also assess the sufficiency of the space, and safety and health requirements in accordance to policies.

Your facility will also be inspected by the fire marshal and you will be give a certificate if your facility was deemed to meet fire safety rules. You need this certificate for licensing procedures. Additionally, you will need a certificate from public health authorities on the safety of your premises. Aside from these, you also need a proof of insurance coverage for the day care center.

For the operations, you will need to come up with a formal schedule of daily activities, and a sample weekly menu. Your staff will need a personal statement of health and will be subject to criminal background and child and adult protective services investigation. Prepare a list of each person over 18 that will be present in the establishment, fill in legal name, position, age, residential address, and contact numbers.

Lastly, you will need a written fire and emergency evacuation plan for all establishments that will be used to provide child care. Moreover, you will be asked to document annual emergency practices that detail when the drill took place and how much time it took to complete the evacuation.

More info: How to start a daycare business