Home-based daycare?

[cbcansurvive]

I was wondering if any folks here have ever had a home based daycare business. My wife is considering operating one out of our home-she is a certified teacher (lost her job due to budget cuts) so she has plenty of experience with children, etc... The state regulations are pretty straightforward-you must work with the appropriate agency in your county, pay $25, submit to background checks, have a home inspection and comply with safety regulations, and take an eight hour class in order to get licensed. Not too onerous or anything. However, insurance is our really big question. We currently have our homeowner's policy through a company that will not insure a home with home based daycare. Their rates are very low, but it's because they are extremely conservative and are simply not willing to take on the risk even though the business will be insured through a separate policy. I am hesitant to part with them because we pay less for homeowner's insurance than most people we know and have excellent coverage, but it looks like we have no choice. Can anyone recommend an insurance provider who could write both a homeowner's policy taking the business into account as well as a business policy? It would be nice to just deal with one company. Other than that I'd be interested to hear from others about their experiences, pitfalls, etc...

[oregon woodsmok]

No recommendations for a company but make sure you have tons of excellent coverage because if one of those kids gets even slightly injured, the parents are going to try to sue your socks off.

I'd also have full time video recording of everything and every room the child could possibly be in. It will be your only defense against child abuse charges. Plus parents like it if they can video link with their computers and see what their child is doing.

[Mickie3]

Originally Posted by oregon woodsmok

No recommendations for a company but make sure you have tons of excellent coverage because if one of those kids gets even slightly injured, the parents are going to try to sue your socks off.

I'd also have full time video recording of everything and every room the child could possibly be in. It will be your only defense against child abuse charges. Plus parents like it if they can video link with their computers and see what their child is doing.

The video is a great recommendation. Also, have seen units fairly reasonably priced at places like Costco so they don't have to cost an arm and a leg to protect yourself. The installation and use of a video system in any and all rooms that the kids have access to can also most likely reduce the insurance premiums as well.

As to the insurance company, any large national company will write that kind of a policy. The fact that you have a cheap rate now is nice; however, it means absolutely nothing if you want to start a home business. If you want a cheap rate, forget the home business, but if you want to start the business, you will have to ante up for the commercial rates. With the home business, its like everything else, there is no free lunch.

[mekasmom]

One of the ladies from church ran a home day care. She gave it up because it wasn't worth all the hoops she had to jump through for the state. She was a teacher too, but just didn't want to be a puppet to the state's laws for daycare.

[oregon woodsmok]

Just a suggestion: Forget the day care. If your wife is a licensed teacher she can make good money with tutoring. To avoid insurance issues, she can go and tutor at the child's home or at the school after hours.

My mother, who specialized in reading disabilities, tells me she earned $50 an hour for getting children with disabilities to the point that they could read. Parents who care about their kids will pay serious money to get them through school. (She also had adult students who had never been able to learn how to read)

Now, she was a specialist and had a masters degree in her specialty, so she probably received higher pay. She could straighten out a kid's problems pretty quick, because she knew how to do it. But a regular tutor, teaching regular stuff, gets paid pretty well, and there is lots of business out there.

[blufford]

If your market is already saturated with daycares how about evening care to serve the families who work the 4 to 12 shift.

[Pelenaka]

I was a Navy Child Care Provider in military housing for 4 years. I was licensed for 3 children (my own 3 children under 12 took up the other 3 slots) - ages 2 weeks to 12 years. Only one child care slot was to an infant. On averaged I would have 3 two year old. I can tell you I lived for nap time !
Here's my words of wisdom
1st impressions of parents during your initial interview is critical. If you get the funny feeling in your gut stick with it even if you need that slot filled. It will come back to haunt you.
Have a well worded contract, read it TOGETHER, and have the parent sign off on each paragraph.
I would give both myself & the parent a two week window for either of us to cancel the contract no reason needed. Sometimes it just isn't a good fit.
Don't become friends with your parents even just in social settings.
See if there is an association/group of local certified care providers that your wife could mentor with. We had a monthly meeting were we would meet & greet & watch a video about child care topics. This is were we would refer clients to each other or give warnings about who bounced a check & who showed up with alcohol on their breath to pick up their child.

As O.W. suggested I'd look into tutoring. If she does decide on tutoring consider obtaining a background check from your local police dept.

~~ pelenaka ~~

[clovis]

Any chance you could just buy a liabilty policy, just in case a kid gets hurt.

I'd be talking to several...up to 10 insurance agents...to find out what my options are.

I've never run a day care, but with that said:

I met a guy and his DW that ONLY accepted cash payments. Wanna write a check? Okay, but don't bring your kid back in the morning, or ever.

They also had a hard line policy of having the kid picked up by a certain time, or the whole deal was off...and they really would call the police if the parent was late.

They had hard and strict rules, set up front, and they meant business. They had a waiting list 3 miles long, but enforced the rules.

They made some powerful cash, 8 kids a week X $135 per kid....no taxes...no overhead to speak of...and they picked their own customers.

[ruesready2hmstd]

I worked at a dc facility (licensed for 152 kids) They let my 9mo baby crawl off changing table. I resigned. I took a job but only opening was 3rd shift. I found a home dc and I absolutely love them-better yet my kids love going. I make sure they are paid Thursday's when I am paid (not due until Monday)because all the expences I know the dc has (food, toys, insurance, craft materials, basic utilities& rent, help/asst,etc)
not to mention if you've worked in a dc, you have seen what " CAN " happen. But make sure you do your research and good luck.

[Mickie3]

Originally Posted by clovis

Any chance you could just buy a liabilty policy, just in case a kid gets hurt.

I'd be talking to several...up to 10 insurance agents...to find out what my options are.

I've never run a day care, but with that said:

I met a guy and his DW that ONLY accepted cash payments. Wanna write a check? Okay, but don't bring your kid back in the morning, or ever.

They also had a hard line policy of having the kid picked up by a certain time, or the whole deal was off...and they really would call the police if the parent was late.

They had hard and strict rules, set up front, and they meant business. They had a waiting list 3 miles long, but enforced the rules.

They made some powerful cash, 8 kids a week X $135 per kid....no taxes...no overhead to speak of...and they picked their own customers.

You are talking an unlicensed operation, I take it. Also, another fringe benefit is the free vacation they will get if the IRS ever catches onto them and does the "reconstruction of income" number on them. They should look into selling crack or meth, they are not legal, either and no kids to deal with.

[sunflower-n-ks]

Do your research of the area. Are there more kids than day cares? Or more day cares than kids? What is the economy of the area? Parents barely making ends meet or a lot of good paying jobs? The hours that needs the most day care providers.

If there are a lot of day cares with a lot of empty slots, you will have a hard time getting enough to make it pay, etc.

Do you have kids? If so, how will they feel about having kids sharing their toys and space. And part of that is just having kids and possibly other people, like a helper, in your house for hours a day. Not saying that is bad, just something to be aware of.

I knew someone once that lived close to a school. She took before and after kids and then did preschool classes during school hours. No babysitting for working parents. She did very with making money and providing two needed services for that town. Working parents can have a hard time finding a place for their school age children to be before and after school and the preschool classes were popular in that town at that time. What does your town need?

[clovis]

Originally Posted by Mickie3

You are talking an unlicensed operation, I take it. Also, another fringe benefit is the free vacation they will get if the IRS ever catches onto them and does the "reconstruction of income" number on them. They should look into selling crack or meth, they are not legal, either and no kids to deal with.

Let's not shoot the messenger.

[rean]

Contact your local social services office and find out what you have to do to become certified through the state. Then ask to be put on their list of providers. The state will pay you instead of the parents. You're guaranteed payment, and there also might be food assistance available to you. I don't know who your insurance provider is, but look in to State Farm. Our house insurance for 120,000.00 in coverage runs us $40.00 a month.

[Mickie3]

Originally Posted by clovis

Let's not shoot the messenger.

Sorry, I must have misread the topic and didn't realize topic really said "I want to have a home-based daycare and willing to commit several felonies doing so, please advise if I can make money doing so." If I had read the topic more closely, I would have realized your reply above was entirely on-topic.

[Mickie3]

Originally Posted by blufford

If your market is already saturated with daycares how about evening care to serve the families who work the 4 to 12 shift.

Or even the midnight to 7 AM shift.

When my kids were young, we would use the local childcare place every Friday night so we could go out. Was nice, was expensive, and place was always full. They were only open on Friday & Saturday nights for people who wanted to go out but not take small children with them. If you are near a larger population base, it could be a nice small part-time operation done at home.

Look at your local market and find and fill the niche that is currently un-served and go for it.

[bigfoot2you]

I had a home daycare several years ago and I now work at a well established, state licensed daycare. My advice..........DON'T my current employer has tons of paperwork and godzillions of rules to follow. The state can show up at any time ( at least in Maine) and run us thru hoops. The biggest thing that angers me is sickness. Unless the child has a fever and is throwing up we cannot send them home. We have to keep them there coughing, ugly, snot running all over their face and allllllllllll the toys they handle and shove in their mouths, ( and YES, we chase them constantly with tissues) Parents will dose them with cold meds in the am so they run out just before lunch.........then we have sick, ugly, crying children..........trying to feed them and make sure they get enough fluids..........I can only hold just so many kids, wipe streaming noses, and try to console........one starts wailing, they all get into it. Nap time? huh, lay them down, they cough, cough, cough.............then the crying, then they allllllllllllll awake!!. Parents!!..........don't let you know if they are keeping kids home, just don't show up........."forget" it's payday...........are just going to be a little late, maybe an hour?? Forget to tell you they threw up all morning before daycare, and they have now infected alllllllllllllll the other children and you.............I could go on forever! It sounds like the perfect income.........play with the little chicklets, feed em and they all have a nice little nap.......and go home...........HAH! And the worst part? When the kids come in sick, dirty, and you KNOW, because you're a mom, grandmother, aunt, that things at home are not good for that child..........and your heart breaks.........and why do I do it? Because I love my little chicklets and somebody has to wipe their noses and hug em.............and read to them............and snuggle.......