I have a fully dedicated lower floor for the daycare, sleep room, class/playroom, bathroom but it is not the only part of the home I use for the daycare but the toy mess stays in the basement. On the main level we use the main living room but the toys are in baskets in the cabinet, under the table etc. So when you walk in the main level you see a family home but there is lots there for the kids to keep them entertained at drop off, lunch prep. I also have wicker baskets on top of my kitchen cabinets that I have day to day craft supplies in so they are out of site but easily accessible and the kids use the dining room table for crafts, eating snacks/lunch, and the older girls use it for quiet time learning.

So my main level is used but it does not scream daycare, now that my own child is school age I wanted the toys and learning materials accessible but not on display so we have our home back on weekends and evenings with little transition time (basically only need to put on the kids boosters at the dining room table for the ones under 2.5 years of age)