Daycare or daycare at home: the pros and cons
When starting a daycare business, there are two options available. Start your home business as a home nursery or start a center in a commercial location. Both of these options have their own advantages and disadvantages that you should be aware of.
Nursery at home
Advantage
- Less expensive to start. Compared to starting a daycare, a daycare at home is less expensive, which is why this is why daycare at home has the biggest advantage over daycare. Starting a home nursery with a capacity for 5 children can cost you as little as $ 1,000 in equipment, supplies, and learning materials, such as arts and crafts, toys, and books.
- The operating cost is lower. Your operating costs will also be much lower compared to a daycare. For example, you have the flexibility of not charging your business rent, since it is your home that you are using. This also gives your business a greater chance of success.
- Parental preference: one-to-one interaction. Some parents prefer home daycare because a homecare can only accept a smaller group of children, giving your children more opportunities for one-on-one interaction.
- The licensing requirements are less stringent. The licensing requirements for day care homes are typically less stringent, making it faster to start the business compared to day care.
Disadvantages
- Limited capacity. Compared to day care, the number of children you can accept will be limited by local statutes or state or provincial laws, and will depend on the space you can allocate for child care services in your own home. Often times, the space you can allocate will be limited to one or two rooms in your home without the business significantly encroaching on other parts of your home life. As a result, this limits your earning potential.
- Family life mixes with work life. Running child care services in your own home can potentially invade your family life. Sometimes this can cause stress or problems with other family members.
- If he is sick. If you get sick, you may need to shut down child care services for a few days and notify the parents of the situation. In addition to losing income, parents may feel upset that they will have to urgently seek alternative care.
Day care center
Advantage
- Known for having structured programming. Since day care centers are regulated and operate under strict guidelines, parents have peace of mind knowing that there is structured programming for child development (eg, cognitive, gross motor, fine motor, etc.). Unlike Mrs. Jones down the street who runs a family day care home, parents also know that qualified teachers with formal training are hired to care for their children. This attracts parents to licensed day care centers.
- Safe and secure. Through the state or provincial licensing process, parents know that day care centers must adhere to various rules related to safety, health, and sanitation.
- Greater capacity. Relative to a home nursery, a nursery has a larger space, which can accommodate more children. Greater capacity can potentially generate more revenue and revenue.
- Daycare services continue even if you are sick. If you are sick and cannot come to the center, you have staff to continue and operate the daycare.
Disadvantages
- Expensive to start with. Compared to a home nursery, building and starting a nursery is more expensive. Renovating a commercial space to meet various building codes and child care licensing requirements can be very expensive and will require more capital to get started.
- Operating costs are higher. Unlike a home daycare, you have rental commitments specified in a lease for a specified period of time. Also, due to the larger space, you will have to pay more for utilities and maintenance. As a result, operating costs are higher compared to a home nursery.