Many people who are contemplating the option of opening up their own home daycare ask about a daycare provider’s income. How much can you make? Is it profitable? Is it a steady income? Will it be enough money for my situation?
Let’s take a look at each question:
How much can you make?
This depends on where you live, and therefore the limitations of how many children you are allowed, by law, to care for in your home with a license. For example, in Canada, you are allowed to care for up to six children. If your own children are under the age of six then you need to count them in your numbers. So you might have five daycare children and one of your own for a total of six children. Licensed childcare providers need to follow the rules and regulations of the Child Care and Early Years Act. Five paying children at $45 a day would be $1125.00 a week.
Is it profitable?
Yes. It is a wonderful way to make a respectable income at home while contributing to the lives of young children. If you have children of your own it is a fantastic way to combine being an engaged and involved parent while also operating your own business. It also saves you paying someone else for childcare.
Is it a steady income?
No. Daycare families will come and go. People move, go on maternity leave, change school zones, etc. If you realize this factor and create some safeguards it won’t affect your income as much.
Using a contract that includes four weeks notice and care paid in advance helps. It is also beneficial to maintain a waiting list for upcoming clients. Strong networking connections with other caregivers will often provide you with new clients when you have a spot opening up. Great advertising helps as well. Good money management to cover any dry spells helps alleviate stress around losing a daycare client. Fantastic daycare providers are always in high demand. If you provide high quality care, there will be families out there waiting for a spot.
Will it be enough money in my situation?
If you have a child or children currently and you are paying someone else for childcare then you have an idea what daily childcare costs. Depending on your situation and your regular income, then home daycare might be more profitable or at least comparable for you.
A few factors to keep in mind while you crunch the numbers.
-Average daycare costs in your area (phone five providers and ask them their rates)
-You will save on your own daycare costs if you currently have children in care.
-You can write off a portion of your home, car, and grocery bills.
-You will eliminate commuting costs.
-You will drastically decrease personal costs such as clothing purchases, dry cleaning, salon visits, etc.
-You will be eating lunch at home and therefore saving on daily restaurant and coffee shop expenses.
-You will have time to plan and prepare nutritious home cooked meals and therefore will decrease your reliance on fast food and expensive take-out meals.
If you have children of your own then you need to ask yourself, “What is the value of spending my days with my own children?” Your answer will guide your decision.
May you acquire the money you need to support the decision you desire!