From Passion to Profession: Steps for Starting Your At-Home Child Care Business
Starting an at-home child care business can be a rewarding career path. It's not uncommon for people to start by watching a friend’s child or helping a neighbor, only to discover a passion for child care. However, in many states, running an in-home child care business requires a license, even if you are caring for just a few children.
In this article, we turn to Angela Garcia, who started her business, Escuela Viva, from home. Now, it is a thriving business, with four locations in and around Portland. Drawing on her own experience, as well as those helping others launch child care businesses, she shares some key steps to take when establishing an at-home child care facility in Oregon.
1. Understanding the Child Care Landscape
Before starting a child care business, Garcia points out that it’s important to understand the different types of facilities and their regulatory requirements. She notes, “The prerequisites for registered family child care homes are a little easier to navigate. And certified family child care homes require certain training and education.”
In Oregon, according to the Department of Early Learning and Care, child care providers have three primary options:
- Registered Family Child Care Homes, which can care for up to 10 children and are located in the provider's residence. These homes have fewer prerequisites, making setup simpler and quicker.
- Certified Family Child Care Homes. These are situated in single-family dwellings and can care for up to 16 children. Certified Family Homes licenses have more regulation around training hours, square footage per child, and health and safety regulations, but allow a provider to care for more children.
- Certified Child Care Centers. Typically found in commercial or nonresidential settings, these are certified to provide care and education for larger groups of children and have a separate set of regulatory standards.
2. Navigating Licensing Requirements
Licensing is a critical step in establishing a home-based child care business. Oregon requires providers caring for more than three non-related children or offering paid child care services regularly to obtain a license.
As part of the licensing process, the home will be required to go through an inspection by the fire marshal and environmental health officials. During these inspections, Garcia says, "The certifier comes out, takes a look, and either says, 'Yes, with these certain adjustments or modifications,’ or ‘There's no way this will work.'" Although this process might seem daunting, the certifiers are there to ultimately help providers succeed.
Learn more about the licensing requirements for each type of child care facility on the Department of Early Learning and Care licensing page.
3. Securing Funding and Resources
Once providers have obtained the necessary licenses, the next step is obtaining financial resources to get started. Garcia acknowledges that opening a home-based care facility can be challenging. As a result, securing funding and resources is a crucial step towards ensuring the success of the business.
Local programs like Preschool for All in Multnomah County offer substantial support for new providers. These resources can cover enrollment, tuition, and provide access to coaching and professional development.
“None of those resources existed 20 years ago when I started out," Garcia reflects. Proper funding not only supports initial setup costs but also ensures the sustainability and growth of the facility. This ultimately helps providers create a stable, high-quality care environment for children.
4. Managing Your Business
Running a successful home-based child care facility also requires careful business management. Prospective business owners must prepare for the operational aspects of running a facility, such as:
- Developing clear policies for enrollment, payments, and parent communication
- Creating a safe, engaging learning environment with designated activity areas
- Maintaining detailed records of attendance, child development, and emergency contacts
- Establishing safety protocols, including emergency response plans and regular safety drills
- Separating personal and business finances
- Obtaining appropriate liability insurance
Organizations like local Small Business Administration offices and nonprofits such as Start Small Think Big offer valuable guidance on business management. Additionally, our coalition of partners hosts free workshops to support small business owners, and you can explore our library of recorded webinars on tax strategies, business branding, and more on our Resources page.
By calling on different resources, providers can start to build a network to help the facility thrive. Engaging with parents, local schools, and other child care providers can lead to invaluable insights and support that can make all the difference in the business’ success.
Start Your Journey Today
Starting a home-based child care business is more than a career—it's a calling to shape young lives and support families in your community. While the path may seem complex, Garcia shares a helpful reminder: “The process may seem daunting but there are many resources to access to help a provider in their journey.”
In May 2025, Garcia will celebrate the 20th anniversary of Escuela Viva. Her journey of growing a child care business from a home-based facility in her basement to four centers all around Portland proves that with passion, preparation, and persistence, you can turn your love for child care into a thriving business.