To start a daycare business at home, begin with the rules, not the toys. Home-based childcare is regulated almost everywhere: US states license it, England requires childminders caring for young children to register with Ofsted, and in Nigeria crèches are registered at state level. The rules set how many children you can care for, what training you need and how your home must be set up.
Once you know the rules, the business side is simple: make your space safe, set fees that cover your real costs, and fill your places through parents who trust you.
Key takeaways
- Licensing comes first. It decides how many children you can take, and so your maximum income.
- In England, a childminder can care for up to six children under eight at once, and normally no more than three young children.
- Price from your costs and local rates, and charge for the place, not just the hours a child attends.
- Most families find home daycare through word of mouth and local search.
What a home daycare business is
A home daycare (called childminding in the UK) is paid care for other people’s children in your own home. It’s usually smaller and more flexible than a daycare center, and many parents choose it for younger children because of the home setting and the consistent carer.
You might offer:
- Full-day care for babies and toddlers
- Before- and after-school care
- Holiday care for school-age children
- Part-time or flexible places for shift workers
Why demand is steady
Childcare demand tracks how many parents work. In all three countries, a large share of women are in the labor force, and families need reliable care to keep working.
- 24% of US childcare workers are self-employed US Bureau of Labor Statistics, 2026
- $34,980 US median annual wage for childcare workers, May 2025 US Bureau of Labor Statistics, 2026
- £35 a year Ofsted Early Years Register fee for childminders GOV.UK, 2026
The low median wage is a warning, not a reason to give up. Childcare pays poorly when it’s priced by the hour without counting the full cost. Running it as a business, with a fee structure, contracts and full places, is what changes the numbers.
Licensing rules for home daycare in the US, UK and Nigeria
United States. Licensing is set by each state. BLS notes that many states require childcare centers, including those in private homes, to be licensed, often with background checks, immunization records, minimum training and sometimes CPR and first aid certification (BLS). Start with your state’s child care licensing agency. Childcare.gov explains how regulation works and links to each state.
United Kingdom (England). Register with Ofsted as a childminder. The Early Years Register fee for childminders is £35, paid every year (GOV.UK). Under the EYFS framework, a childminder may care for a maximum of six children under eight at any one time, including their own, and generally no more than three of them may be young children (EYFS framework). Wales, Scotland and Northern Ireland have their own regulators.
Nigeria. Crèches and daycare centers are registered and inspected at state level. Contact your state ministry responsible for social development or education to confirm what applies to a home-based setting, including space, staff ratios and health requirements. Register the business name with CAC too, so you can open a business account and issue receipts.
How to start a daycare business at home, step by step
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Confirm the rules
Contact your state licensing office, Ofsted, or your Nigerian state ministry. Write down child limits, training, and inspection steps.
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Get trained
Pediatric first aid, safeguarding and food hygiene are common requirements and parents ask about them.
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Prepare your home
Separate play and nap areas, safe sleep setup, gates, outlet covers, secure storage for medicines and cleaning products, and a fire plan.
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Apply and pass inspection
Submit your application, background checks and any home inspection.
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Insure the business
Public liability insurance at minimum. Tell your home insurer you're running a business.
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Write your policies
Hours, fees, sickness, late pick-up, holidays, safeguarding and emergency contacts. Put them in a parent contract.
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Set your fees
Use the worked example below and local rates.
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Fill your first places
Tell your network, list with local directories and set up a Google Business Profile.
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Keep records
Attendance, incidents, medication and payments. Inspectors and parents will ask.
How much does it cost to start a home daycare?
| Cost item | Estimate | Basis |
|---|---|---|
| Registration or licensing | £35 a year Ofsted childminder fee (England); varies by US state; state fee (Nigeria) | GOV.UK |
| Background checks and training | $50–$400 | Planning estimate; depends on location and courses |
| Safety equipment (gates, covers, fire blanket, first aid kit) | $100–$400 | Planning estimate |
| Toys, books and learning materials | $100–$500 | Planning estimate; buy secondhand where safe |
| Cots, high chairs and feeding supplies | $150–$600 | Planning estimate |
| Insurance | Get quotes | Varies by country and number of children |
| Business registration (Nigeria) | CAC fee | Check the CAC portal |
Fee maths: what a full home daycare can earn
Here’s a worked example with illustrative numbers. Use your own local rates and the child limits that apply to you.
- You’re allowed four paying children full time (your own child takes another place).
- Weekly fee per child: 200
- Weekly income: 4 × 200 = 800
- Weekly costs: food 60, materials and cleaning 25, insurance and fees 15, extra utilities 20 = 120
- Weekly profit before tax: 800 − 120 = 680
- Over 48 working weeks: 680 × 48 = 32,640
Now the risk: if one place sits empty for eight weeks, you lose 200 × 8 = 1,600. That’s why many providers charge a deposit, charge for booked places rather than attendance, and keep a waiting list.
How to find families for your daycare
- Word of mouth. Tell your neighbors, faith community, school-gate parents and local groups. Give current parents a referral thank-you.
- Local search. Parents search “childminder near me” or “daycare in [area].” A complete Google Business Profile with photos, hours and reviews matters. Our local SEO team covers what moves the needle, and our glossary explains local SEO in plain terms.
- Show your registration. Parents check Ofsted reports and state license lookups. Make your registration number easy to find.
- Open days. Let parents see the space, meet you, and ask questions.
Keeping families is as important as finding them. Clear communication, daily updates and reliable hours drive customer retention in childcare more than anything else.
Parents are choosing someone to trust with their child, so your marketing has to answer safety questions before price questions. I'd lead the website and Google profile with your registration details, a typical day and real photos of the space. Reviews from current parents carry more weight than any ad. Make it easy for them to recommend you, then ask.
Myth vs fact
- MythLooking after a few children at home doesn't need registration.
- FactIn most places, paid care for other people's children in your home is regulated. In England, childminders caring for young children register with Ofsted; US states license home-based care.
- MythCharging by the hour is fairer and earns more.
- FactHourly billing makes income unpredictable. Charging for a booked place, with clear policies, protects your income and helps families plan.
- MythYou can take as many children as fit in the room.
- FactChild limits are set by your regulator. In England, a childminder can care for at most six children under eight at once.
Before you open
- Registration or license approved
- First aid, safeguarding and food hygiene training done
- Home safety check complete, with a written fire and emergency plan
- Insurance in place and home insurer informed
- Parent contract and policies written
- Fee structure, deposit and payment terms set
- Records system for attendance, incidents and medication
Frequently asked questions
Can I start a daycare at home without experience?
You can, but you'll need the training your regulator requires, and parents will expect it. Many providers start after working in a nursery or school, or after caring for their own children, then add first aid, safeguarding and early-years courses.
How many children can I look after in a home daycare?
It depends on where you live. In England, a childminder may care for up to six children under eight at once, generally with no more than three young children. US states set their own limits for family child care homes. In Nigeria, check with your state ministry.
How much should I charge for home daycare?
Check what local providers charge for similar hours and ages, then make sure your fee covers food, materials, insurance, fees and a fair wage for you. Charge for booked places, take a deposit, and review fees once a year.
Do I need insurance for a home daycare?
Yes. Public liability insurance is the minimum, and many regulators or local authorities expect it. Tell your home insurer you run a business from home, because a standard policy may not cover it.
How do I get my first daycare clients?
Start with families you already know, then build a Google Business Profile, list with local directories and hold an open day. Reviews from your first families will drive most new inquiries after that.
Next step
Contact your licensing body this week and get the official checklist. While you wait, write your policies and parent contract. When you’re ready to look professional online, see website design at TechDella Studios.
