STARTING/OPERATING A HOME DAYCARE

CREATING A HOME DAYCARE BUDGET


CREATING A HOME DAYCARE BUDGET If you want to make the largest profit possible running a home daycare, you need to create and stick to a tight budget.  The following is a list of common expenses incurred by home daycare providers:

1.  Electricity:  Even if you stayed home during the day before you opened your home daycare, you will likely use a lot more electricity than you did before.  Look at your electricity bills from before you opened your daycare and compare them to the first month you are in business.  The difference is the approximate amount of extra energy your home daycare is costing you per month.

2.  Water:  Extra loads of laundry and dishes will quickly increase your monthly water bill.  The amount of extra water your daycare is requiring beyond your family's regular monthly needs is the amount you should take out of your daycare budget each month.  Compare your bills from before you opened the daycare to the first month your daycare is in business.

3.  Food:  Unless parents are providing their children's snacks and meals, you need to designate a category in your budget for food.

4.  Insurance:  Many home daycare providers do not purchase extra insurance.  However, you never know what could happen while children are in your care so you will want to include this in your budget.

5.  Equipment:  Even if you have kids, you will likely need extra equipment including: toys, highchairs, swings, cribs/cots, outdoor play equipment,  shelves, blankets, etc.

6.  Supplies:  Set aside money in your budget for art materials, toilet paper, hand soap, laundry detergent, bandages, etc.

7.  Misc: You will need a miscellaneous category for extra expenses such as field trips or special activities you do with the kids .

8.  Advertisting:  Unless you have a well established home daycare that is able to rely on word of mouth, you should include advertising in your budget.