Also as a owner of a home daycare, I am home all alone with these kids all day and some things that they do make me so angry that really I need the time out. I need a few minutes to pull myself together and see what we should do about this behaviour.
I have a timer that I put on a minute for every year of their age. I don't leave then there and walk away. No one learns anything that way. I wait until everyone is calm, myself included and we talk about why they are there and how they can prevent being there and what they can do to make it right. If there is any time left after we have talked they wait until it dings and then we do a hug and kiss and back to play.
Thankfully this works right now, I am not sure what the next step is when they don't care about time out anymore.