Yes, there are expenses, but most of the money made is profit. Below is the income I made and the expenses I paid out.
My hours were 7am to 5pm, Monday to Friday, which is 50 hours per week. Keep in mind that during those hours, there is no real break time. I always made sure to sit down during quiet time, but I was still “on the clock” so to speak.
Home Daycare Income:
$3000/month (5 children @ $150/week)
Home Daycare Expenses:
Food – $200
Home Daycare Insurance – $25
Toys/Equipment – $100
Wipes, Craft Supplies – $50
Curriculum – $25
Cleaning Supplies – $15
Taxes – $333
Not included are the start up costs (playpens, cots, high chairs, booster chairs, sheets, blankets, dishes, sippy cups, bottles, etc), extra utility costs (heating, air conditioning, electricity, water, etc) and wear and tear (paint, drywall putty, etc).
Total Expenses: $688
Since I worked 50 hours each week, or 200 hours each month, I made $11.56 per hour. That’s close to wage where I live, but because that was my take-home, free and clear of transportation costs, the costs of daycare for my children, and clothing costs, it’s nothing to sneeze at.
Before you open a home daycare, consider carefully these things:
- The going rate in your area for home daycare.
- How many children you’re legally allowed to have.
- What your insurance company will charge you (it will depend on whether you’ll be driving the daycare kids).
- How much you’ll need to spend to buy equipment up front. Chances are, if you have children yourself, you may already have many of the things you need.
- What you’ll be expecting the parents to provide. You’ll want them to bring diapers of course, but perhaps you’ll have them provide a blanket, wipes, a sippy cup or bottle, etc, for their own child. That will allow you to save a bit.
- Whether licensing, a fire inspection, or extra child-proofing is required in your home.
and most importantly:
- How long it will take to recruit a full roster. You likely won’t open with a full house, unless your marketing is awesome! Take into account the fact that you won’t be making a full pay from start up. It could take weeks or months to get to that point.
If you’ve done home daycare or know someone who has, I’d love to hear what the current daily rates are for your area. Leave them in the comments below!