I have some experience on both sides of this issue. I ran a daycare business in my home for 10 years. I had full time, part time, after school, before school, you name it, I did it. After 10 years, I was worn out. I found I didn't enjoy the kids like I used to and really wanted to be home with just my own two boys. I shut down my business when my kids were 5 and 8. Both of my boys missed the other kids and wanted me to start doing daycare again.
Both of my kids are in school full time now and I needed to go back to work. I put together a resume, which was no small task considering I'd been out of "the office" for more than 10 years. I felt really strongly that I needed to be home after school with my kids, my oldest son has some lingering medical problems after he suffered a massive stroke three years ago. I ended up taking a job at a local daycare center. The center is owned by a wonderful woman, the director is very good at what she does, the staff are well trained, caring, etc. The center takes less children per teacher than what the state allows so that group sizes are smaller. There's lots of stimulation, fair rules, healthy snacks and the location can't be beat for school age kids. They charge reasonable rates and accept state aid for childcare.
All that said, seeing what I've seen in the field for the last many years, were I to have a preschool or younger age child, I would choose in home daycare in a heartbeat.
You will find yourself with more kids needing care than you've got space to take them. Set down rules and guidelines with parents and make them clear in the first interview. Insist that parents have a backup caregiver in the case of illness or emergency on their part or yours. DO NOT allow a child to stay in your home with a fever, vomiting, etc. It may seem cruel to call the parents and send the child home. But, I speak from experience. Those nasty bugs will spread through every one of the children you care for and you will have sick kids for weeks. It is truly in the best interest of everyone to send that child home.
Decide on your fees and outline them up front for parents. Also decide when you want to get paid and stick to it. I always asked to be paid on Monday for the week. That way, I knew I was getting the income I contracted for and if the parents chose to not bring their kids, I didn't lose out.
I also had an information form I asked parents to fill out and I kept it for my reference. Things like parents names, address, phone numbers, (home, work and cell), emergency contact information, etc. I also asked questions like, do they use time-out, what is the child's naptime routine, favorite toys, books, favorite foods, dislikes, etc. Also ask them to sign a medical release allowing you to give motrin, etc. for teething, the start of fevers, etc. You need to have their written permission, it's a safety issue for you.
I could go on forever. If you are at all interested in any of the other things I did, or have any questions, e-mail me direct at ____@____.com. I'd love to chat.