Dedicated space is important.

For me, right now, anyway, my trouble is personal space.
My daycare is in the middle of the house, which is a ranch. It's a large ranch, but still our bedrooms are at one end and living room on the other, with ONE bathroom, kitchen and playroom are in the middle of the house.
My husband has trouble with it. It's a big deal to have a daycare in the middle of your home. Nothing is personal.

My children have trouble with the daycare. My youngest is 3 and aggressive towards the other kids. My older one is 6 and resents them.

Make sure your family knows what is involved. It sounds like so much fun to start a daycare to your kids, AND IT IS! But it's also very difficult to have people/kids around when they want to play alone. Make sure they have their own space.

Have well written policies and contracts that parents sign and be very very strict about them.

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