Working full time but looking to switch to opening in home daycare. Need advice :)

[Momof4]

I quit my full time job and opened a daycare also. The first year was awful, really awful so a lot of savings is a good idea to get you through that year. It's difficult to get going but with persistence, patience, hard work and luck you can do it.

Don't think it's an easy job though and you will be relaxing a lot. Noooooooo, not if you do it right. And also, if you do it right you will never be bored. I've never been busier. Good luck.

[gravy_train]

i agree with what everyone else is saying about saving money before you start. i opened my daycare a few months ago, started advertising months before and am still looking for two clients. my partner is also money conscious (thank god, because i am not) and it has been really hard on our relationship. we both thought that i would start off full, or close to full and that hasn't been the case at all.
however, my price is a bit higher than the average in my area, but i stand by that decision and feel that my time, effort, meals, programming, etc. are worth it and the right clients will come in good time.
also, i'm glad to have my clients trickling in as it gives me the time to adjust to this new and very demanding career that i've chosen. it is very difficult and very physically demandin, not to mention stressful (in a different way than my office job was), so it would be best to have yourself covered financially so that you can ease your way into it.
good luck!

[ab04ch]

Thanks for the advice ladies, I appreciate it!
I am actually just outside of Chatham, Ontario. I agree about the pool thing- and having a 1 year old it was a priority for me to have it fenced anyway so plans are underway to make that happen.

As for my Daycare, I would love to save money and do try. But that is where my problem lies- between what I make, after paying for my daughter's day care and gas, we have little left to save. That is what makes having a home daycare so attractive- even only having 2 kids come 2 days a week at 32$ per child, I would make the same as I bring home now. So my thought was I would just start part time and see how it goes, and take on more if it is working out. Home daycare would give me the opportunity to be with my baby, while letting her socially interact with her peers as well as bring in an income for me. I do enjoy and love other people's children, by nature I am very patient and I feel optimistic about this opportunity!

I am trying to get in contact with the local agency here in town, I want to be licenced to do daycare. Similarly, I have excellent resources as I have 1 friend who is an ECE professor, and another who is an ABA specialist. I look forward to the new adventure, as I am quite unhappy now and I feel opening a daycare might allow me to expand my creativity. There is a park, and another daycare just down the street from me as well.
I do worry about the saving money part... nothing in life comes easily! haha

[playfelt]

Given the math that you have worked out it means having one child in care for the full week actually will then work out to more than you make now. With that in mind there is no reason why you shouldn't be able to make a go of the daycare financially. As has been said it is the figuring out how much you need to make to equal what you were making at work that determines what you need to bring in from your daycare. Realize that going with an agency will limit you to only 4 daycare children rather than 5 because your own child will count in that number. However going with an agency can be a great way to get started in daycare because they take you through the steps. Then when you are comfortable you can venture out on your own privately - often happens after the birth of your second child when you realize you will lose one of your daycare children now that you have two of your own but if you were private you could keep them all.

[ab04ch]

Thank you for your advice! I was #2. I was wondering, how do you work out income tax when you are sel employed? Or I wonder if the Agency would take care of that since they pay you?

[playfelt]

No you are basically just contracted by the agency to provide care. You are still self employed and as such claim your income as a business. Keep all receipts for things you buy for the kids such as equipement, food, toys, craft supplies. There are forms to fill out to determine what portion of the money you make is actually taxable and then you will pay tax and canada pension based on that amount.

If you go to the canada revenue site there is a little booklet you can download that gives some ideas about the things that you can claim. If you look around this site there may be some other places where we have discussed taxes that you can get ideas from. It really isn't as daunting as it sounds but does mean you need to be organized.

The Ottawa childcare association has a start up kit that you can look at on their webite and it will give you some good information about setting up a home daycare. www.ccprn.com