How to start a daycare business

How to start a daycare business, step by step

1. 01

   Choose home daycare or a center

   Every state sets its own categories, so read your state's licensing page first. This guide uses Texas as the example. Texas Health and Human Services lets you care for up to three unrelated children as a listed family home, and up to six unrelated children 13 or younger during school hours as a registered child care home.

   A registered home may add six school-age children after school, but no more than 12 children can be in care at once, including the caregiver's own. A licensed child care home cares for seven to 12 children. Larger programs become licensed child care centers, with their own minimum standards and ratio charts.

2. 02

   Take the orientation and apply

   In Texas, Child Care Regulation asks you to schedule an orientation class to learn the application process, then apply through an online provider account. To run a licensed or registered child care home, you must be at least 21 and have a high school diploma or equivalent. Listed family homes require you to be 18.

   Fees are small. Texas charges a $35 application fee for a registered child care home or licensed operation, and a $20 fee for a listed family home. Registered homes then pay $35 a year, and licensed operations pay $35 plus $1 for each child of capacity.

3. 03

   Plan your staff around ratios

   Ratios decide how many children one adult may supervise, and they shape your whole budget. In Texas centers caring for 13 or more children, one caregiver may supervise four children up to 11 months old, five at 12 to 17 months, nine at 18 to 23 months, eleven 2-year-olds and fifteen 3-year-olds.

   Infant rooms need the most staff per child, so they cost the most to run. You can open with toddlers and preschoolers, where one adult can care for more children, and add infants once enrollment covers the extra pay.

4. 04

   Clear background checks for every adult

   Plan on background checks for yourself, any staff, and the adults who live in a home daycare. In Texas, child care operations pay $2 to Child Care Regulation for every background check submitted, and an FBI fingerprint check costs $40 for paid positions or $38 for unpaid ones, such as a household member.

   Book fingerprint appointments for everyone the week you apply. A slow appointment can hold up your application, and every week of delay is a week without tuition.

5. 05

   Get insured and trained

   Texas Child Care Regulation requires applicants for licensed, registered and listed homes to provide proof of liability insurance before it issues a permit. Next Insurance says most of its daycare customers pay between $56 and $78 a month for general liability coverage.

   Train in pediatric first aid and CPR before the first child arrives; the BLS notes that some states require it. The American Heart Association's Heartsaver Pediatric First Aid CPR AED online course costs $24.50, plus a hands-on skills session sold separately for your completion card.

6. 06

   Set tuition and family policies

   Set weekly tuition by age group, since infants cost the most to staff. Call five licensed providers near you, ask their weekly rates and waitlists, and price where your hours, ratios and program fit. Charge a registration fee to hold a spot and cover enrollment paperwork.

   Write a parent handbook before you enroll anyone: hours, late pickup fees, sick-child rules, meals, naps, holidays, payment due dates and how much notice families must give to leave. Clear rules stop the same arguments from happening every week.

7. 07

   Give parents a site to tour from

   Parents search online, read every word and then ask to visit. Your site needs your age groups, hours, weekly tuition, a day-in-the-life schedule, photos of the space, your license details, reviews, and a tour request form asking for the child's age and start date. Replo builds it from a description of your program, on your own domain.

   Replo doesn't manage enrollment, attendance or billing. Embed a Calendly or Cal.com calendar for tours. Replo checkout can collect a fixed registration fee or deposit in USD to hold a spot.

What it costs to start a daycare business

What it costs to open a registered child care home in Texas with one adult in the house. Other states' fees differ, so check your licensing agency.

Your first 30 days

1. Week 1

   Pick a type and apply

   • Read your state's licensing page and choose your home or center type.
   • Schedule the orientation class and open your online provider account.
   • Measure your space and list the ages you'll accept.
   • Request liability insurance quotes that meet your state's requirement.

2. Week 2

   Checks, training and paperwork

   • Book fingerprint appointments for every adult who lives or works there.
   • Complete pediatric first aid and CPR, including the hands-on session.
   • Submit your application with the fee and proof of insurance.
   • Write a parent handbook covering hours, fees, illness and pickups.

3. Week 3

   Price and open a waitlist

   • Call five nearby providers about weekly rates and waitlists.
   • Set weekly tuition by age group and a registration fee.
   • Launch your site with tuition, photos and a tour request form.

4. Week 4

   Tour families and enroll

   • Give tours to every family on the waitlist.
   • Collect registration fees and enrollment forms for your first spots.
   • Set start dates for the day your permit is issued.

Build your daycare site

Frequently asked questions

How profitable is a child care business?

It depends on enrollment and ratios. Your revenue is tuition times enrolled children, and your biggest cost is staff, which ratios fix in advance. The BLS reports a median of $16.82 an hour for childcare workers, so price tuition to cover pay at your required ratios.

Which age group is hardest to start a daycare with?

Infants. They need the most adults per child, so they cost the most to staff. In Texas centers, one caregiver may supervise only four children under 12 months, compared with eleven 2-year-olds. Opening with toddlers first keeps your staffing simpler.

What is a normal weekly rate for daycare?

It varies by state, county, the child's age and home versus center care. Call five licensed providers near you for their weekly rates and waitlists. The Department of Labor's National Database of Childcare Prices also reports prices by county and age group.

Do I need a license to run a daycare from my home?

Usually, yes, depending on your state and how many children you watch. In Texas, caring for up to three unrelated children needs a listed family home, and up to six needs a registered child care home, each with background checks and proof of insurance.

How many children can one person watch in a daycare?

Your state's ratios set it by age. In Texas centers caring for 13 or more children, one caregiver may supervise four infants, nine children aged 18 to 23 months, eleven 2-year-olds, fifteen 3-year-olds or eighteen 4-year-olds.