Small Home Daycare Setup

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Running a home daycare is an exciting and rewarding journey. If you have limited space, this small home daycare setup will help you navigate everything you need.

Having a thoughtful plan and a nurturing environment for your home business is key to your success. It allows you to work from home, care for children, and make a meaningful impact on their early development.

Understanding Your Space and Licensing Requirements

Before buying supplies or rearranging furniture, the first step is to evaluate your space and understand your state’s childcare licensing regulations. Requirements vary by state, but they generally include safety features, maximum capacity, caregiver-to-child ratios, and sanitation standards.

Some states may require inspections, background checks, CPR certifications, and specific training in early childhood education.

Measure the available areas in your home that you plan to use for daycare. Consider how each space can be safely divided or adapted for different age groups and activities.

Commonly used areas include living rooms, kitchens, converted garages, and basements. Think about traffic flow, visibility, and access to outdoor spaces. Your goal is to create an environment that is open and inviting, yet safe and manageable.

After running my home daycare at Little Sprouts for 30 years, I can tell you one thing for sure, the most important component of your business is love. If you have a safe space and lots of love, you will be successful.

Creating Functional Zones

A well-organized daycare has clearly defined zones that support a variety of activities and needs. These zones help children know what to expect and reduce chaos. Even in small spaces, thoughtful design can make a big difference.

Free Play Area

This is the heart of your daycare. Include a mix of toys that encourage imaginative play, physical activity, and fine motor development. Consider low shelves to display toys and materials children can choose independently. Rotate items regularly to keep interest high without overwhelming them. This is one key that has helped me so much in my career as a home daycare provider.

Free play is by far the most important part of the day for kids and learning. So make sure you have enough room for kids to explore their own interests, interact with one another and have fun.

Circle Time/Group Area

Designate a small rug or mat as a circle time area where you gather for songs, stories, calendar activities, and group learning. Make this space cozy with pillows or soft seating.

We have our circle time in two places, we use the kitchen table for lots of activities as well as the middle of the living room. As I am getting older, I am not able to get down on the floor with the kids as many times during the day, so I sit in a chair and they circle up in front of me instead of me sitting down there with them like I used to. It still works. Do what works well for you.

Nap Area

Design a quiet space where children can nap comfortably and safely. For infants, you’ll need cribs or Pack ‘n Plays that meet safety standards. For toddlers and preschoolers, mats or small cots work well. In Oklahoma, our mats have to be 2 inches thick if we go that route.

We use the playroom for our napping area. I have dramatic play areas around the room and low shelves on one side and we use the middle area to lay out the mats for sleeping. Some states have rules about how far apart naps must be, but in Oklahoma we don’t, so we have room for 7 mats in that room. My kids sleep great like that.

I turn down the lights so just a small amount of sunlight peeps in and I turn on some baby lullabys softly. I give everyone a big hug and tell them I love them and something special about themselves and they get in bed and are asleep in no time. We have quiet activities after lunch with stories and songs or fingerplays and they are ready to wind down.

I do notice if we get out of this routine they have more trouble falling asleep, so I try to stick to it well.

Eating Area

Many providers use the kitchen or dining room for meals and snacks. Use child-sized tables and chairs or booster seats at your existing table. Keep bibs, utensils, and cleaning supplies within reach.

My kids are 2-4 years old and I have a long bench seat on one side and a short bench on another side. Six kids can fit there and I have one chair for me and the “star” chair that a different child sits in each day. They bless the meal, if there are choices during the day like someone picks the book or someone chooses something, the star gets to choose also. And we rotate whose turn it is for that.

Diapering and Bathroom

For infants and toddlers, create a diapering station with a changing table, storage for diapers and wipes, and a covered trash can. Sanitize between uses. If your daycare includes potty-training-age children, provide child-friendly toilet access, step stools, and extra clothing.

At Little Sprouts, I use my master bathroom for the kids. It’s really small and the kids are messy so I don’t like them using the bathroom my guests might use. So I turned my little master half bath into their bathroom. The changing table is in our bedroom right outside the door with all of the extra clothes, diapers, pull ups, wipes, and other things we might need. The diaper pail is there as well.

While it’s not ideal to have all of this in my bedroom, my house is extremely small, and it’s what works best for us. We have to have different daycare things tucked everywhere in our house in order to fit it all in. The only other thing we use our bedroom for in the business is the instrument basket is stored in there. It doesn’t fit anywhere else. I just stage it like a piece of furniture and it’s fine for us.

Learning and Craft Area

Include a table or flat workspace for crafts, writing, puzzles, and learning activities. Store art supplies, paper, markers, and manipulatives in accessible containers. Consider using carts or bins for easy cleanup and organization.

We use the dining room table for art and crafts as well. We do most of our activities that are indoors there. And we do puzzles, playdough, and things like that there.

Dramatic Play Area

You’ll need to make sure you have lots of dramatic play materials for kids to use and enjoy. We have a dress up center with dress up clothes in it, a play kitchen, and one more station that we rotate. Right now it has a big cube you can crawl inside of and play. About 4 toddlers can fit in it. Sometimes It’s a climber, sometimes it’s a tool bench. It’s another way to add interest for the kids.

My kids play anything from “moms and dads” (we called that playing house), dinosaurs, picnic, restaurant, daycare, monster truck rally, police, and anything else you can think of in these areas in the playroom as well as the living room and of course outside.

Reading Area

We have a big egg shaped chair with a cushion, a book rack next to it, the couches and chairs, and the big cube where kids can get cozy and read. Books are available at all times for kids to enjoy.

Choosing the Right Furniture and Equipment

In a small home daycare, every piece of furniture needs to be functional, safe, and space-efficient. Choose items that serve multiple purposes. For example, a sturdy shelf can also divide play zones, or a foldable table can be used for crafts and meals.

Child-sized furniture encourages independence and proper posture. Look for durable, washable, and non-toxic materials. Label bins with pictures and words to support early literacy and help children clean up after themselves. We have a small kid’s table in the living room with a couple of chairs. The kids love to sit at it with their toys and materials.

Safety is essential. Anchor heavy furniture to walls, cover outlets, use safety gates, and secure cords and blinds. Choose toys that meet safety standards and are age-appropriate. Keep choking hazards and dangerous items out of reach.

Setting Up Outdoor Space

Outdoor play is essential for gross motor development and emotional well-being. Even a small backyard or patio can provide excellent play opportunities. Prioritize safety: check for sharp edges, poisonous plants, or other hazards.

Don’t forget to check for safety every time you go out. A snake can move in or wasps can build a nest in no time.

Create a play area with grass, mulch, or rubber mats to cushion falls. Include ride-on toys, a sandbox, climbing structures, and open-ended items like buckets and shovels. Provide shaded areas for rest and hydration. Rotate toys outdoors just like inside to keep things fresh.

Don’t forget the importance of gardening, nature exploration, and sensory play. Even small raised beds or container gardens can teach children where food comes from and foster responsibility.

Daily Routines and Schedules

Children thrive on predictable routines. Structure your day with a balance of active play, quiet time, meals, naps, and guided activities. Visual schedules with pictures help even young children understand what’s next and reduce anxiety.

A typical day in a home daycare might include:

• Arrival and free play
• Morning snack
• Circle time
• Outdoor play
• Learning activities or crafts
• Lunch
• Nap time
• Afternoon snack
• Storytime and play
• Pickup

Keep transitions smooth by giving children warnings before changes and using songs or signals to move between activities. Build in time for self-care routines like handwashing, bathroom use, and cleaning up.

Storage and Organization

Staying organized in a small space is critical. Use vertical space—shelves, hanging storage, wall pockets—to your advantage. Label everything so children and helpers know where things go.

Invest in plastic bins, baskets, and rolling carts. Color-code items by category or age group. Use under-bed or closet storage for seasonal items or toys you’re rotating out. Keep important documents in a dedicated binder or filing system.

Designate specific spots for shoes, backpacks, and personal items. Create cubbies or hooks for each child’s belongings. This helps keep the space tidy and helps children feel a sense of ownership.

Safety and Cleanliness

Your setup must prioritize child safety. In addition to anchoring furniture and covering outlets, you’ll need to keep cleaning products locked away, have working smoke detectors and carbon monoxide alarms, and maintain a first aid kit.

Install baby gates to block stairs or unsafe areas. Keep small objects and cords out of reach. Clean high-touch surfaces frequently and sanitize toys daily or as needed. Post your emergency plans and contact numbers where they’re easy to see.

Make sure all children’s immunization records and emergency forms are up to date and stored securely. Practice fire drills and other emergency procedures regularly.

Planning for Different Age Groups

A mixed-age group is common in small home daycares. Planning for this requires creativity and flexibility. Arrange your space so that infants are kept safely away from rough play, and toddlers and preschoolers can interact with age-appropriate materials.

Use playpens, gated areas, or low furniture to create safe boundaries. Offer parallel activities that engage children at different developmental levels. For example, during art time, infants might explore finger paint while older children practice scissors and glue.

Consider setting up rotating “stations” so older kids can engage more deeply while you tend to diapering, feeding, or soothing younger ones. Having a helper, even part-time, can greatly ease this process. That’s not realistic for all of us, but if you can have one, do it. I have never been able to. But I would love it.

Managing Noise and Chaos

Small spaces can get noisy quickly. Use soft furnishings like rugs, curtains, and pillows to absorb sound. Play calming background music during nap time.

Establish expectations for inside voices and gentle hands. Model respectful behavior and offer plenty of praise for cooperation and problem-solving. When children feel safe and heard, they’re less likely to act out.

Having clear rules and consistent discipline methods helps maintain calm. Keep rules simple, positively stated, and reinforced often. Use visuals and routines to support positive behavior.

Making It Feel Like Home

One of the great benefits of a home daycare is the cozy, loving environment you can create. Add personal touches like photos of the children, homemade decorations, and seasonal themes. Display their artwork proudly on the walls.

Create a welcoming entrance area with a sign, cubbies, and notes for parents. Include soft lighting, warm colors, and comfortable spaces for reading and cuddling. Your warmth and the inviting environment you create will help children feel at ease.

A calm and cozy atmosphere helps both children and caregivers thrive. This kind of nurturing environment builds strong attachments and fosters emotional security.

Building Parent Relationships

Your setup should also consider the parent experience. Create a check-in and check-out system that’s efficient and friendly. Offer daily notes or texts with updates on meals, naps, and activities. Use a bulletin board or email list to share news, policies, and reminders.

Communicate clearly and respectfully. Listen to parent concerns and preferences. Having an open-door policy, even in a small space, shows that you value their trust and want to work as a team in supporting their child.

Budgeting and Shopping Smart

Setting up a home daycare doesn’t have to break the bank. Start small and build over time. Many essentials can be found secondhand or donated by friends and family, just make sure they meet current safety standards. Most items have a 1-800 number listed that you can call for recall and safety information.

Make a list of “must-haves” versus “nice-to-haves.” Focus first on items that support health, safety, and basic care. Add learning tools and toys gradually. Rotate what you have to keep things interesting without constant spending. Here is a list of start up expenses that are common for opening a home daycare.

Discount stores, online marketplaces, yard sales, and buy-nothing groups can be goldmines. Many providers also swap items with one another or shop during clearance sales to save money.

Staying Inspired and Avoiding Burnout

Running a home daycare is rewarding but can also be exhausting. Set boundaries for your workday and make time for self-care. Create a system for breaks during the day, even if it’s just a quiet moment during nap time. Make sure that you plan for time off from the beginning. Most of us don’t and that’s not good.

Join provider support groups, either online or in your community. Share ideas, ask questions, and vent when needed. Stay inspired by attending training, reading blogs, and following early childhood educators who align with your philosophy.

Keep a stash of rainy-day activities and simple backup plans for when things don’t go as expected. Flexibility, a sense of humor, and a strong “why” will help you get through tough days.

A small home daycare setup can be beautiful, functional, and full of love. With thoughtful planning, smart organization, and an eye for safety and engagement, your space can support learning, growth, and joy for the children in your care. Remember, it’s not about having the biggest or fanciest setup, it’s about creating an environment where children feel safe, valued, and ready to explore the world around them.

If you are interested in how to start and run a home daycare, check this out for more tips.