What Do I Need to Open a Daycare Business? A Step-by-Step Guidance to Know

The increasing number of working mums creates a business opportunity. Yap! Daycare. With many mums spend hours outside working, they need somebody to take care of their kids.

This is how daycare will be a profitable business to build. But what I need to open a daycare? Well, just like any other small business, starting a daycare also requires some consideration for success.

Find out everything you need to know about opening a daycare business on the following page.


Step by Step How to Start a Childcare Center

#1. What Type of Daycare You are Going to Start?

Before opening this business, you need to determine what type of daycare you would like to start. Generally speaking, there are two types of daycare businesses out there, they are an in-home daycare and a center-based daycare.

As the name suggests an in-home daycare is a service that you provide in your house, allowing you to avoid renting a facility.

However, working in a place that also becomes your living space can be very stressful. Meanwhile, a based-center can be operated in a separate place.

As a consequence, you need to buy or rent a facility for that. But it will provide you with a separate space from your home to taking care of the kids, making it less stressful.


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#2. Licensing Requirements

Once you have determined the type of daycare you are going to set up, now it is time to fill in the legal requirements needed.

Depending on the state where your daycare business is built, the rules and regulations required can be different from one to another.

Make sure that you contact the Department of Children and Family Services (DCFS) in your state to get all the information about the regulations.

As an alternative, you can visit the official website of the local childcare licensing agency. Most of the time, you will need a current CPR certification, a clean driving record, and other documents to get the license. This is aimed to show the authorized people your commitment to young children.

#3. Create a Business and Budget Plan

Bear in mind that creating a business plan is a tough task. There are several things you should put into consideration. In creating this daycare business plan, you need to include some important elements related to the business.

These include a daycare’s mission statements, an organizational plan, budgets, operations, marketing plan, staffing, and more.

When planning your financial goals, you need to keep in mind that it is important to know where your money comes from. Not only that but you should know well how to make your investment profitable.

In this way, make sure that you do some research that focuses on the understanding of the costs needed in the business operation.

You have to determine whether you need a small business loan or use your own money for the business. Also, it is important to ask some basic questions to yourself like do you need to hire employees, expand a room in your house, rent space in the building?

This is also essential to determine whether you need to buy bedding, safety equipment, and additional toys before starting the business.

When making a budget plan, make sure that you also include the cost needed for licensing, zoning, and inspection.

You will find the financial plan is much easier to do if you know well what is needed to build your business and make it profitable.

#5. Finding a Business Location

If you decide to set up a center-based daycare, the next thing you should do is find the best location for your business.

You need to determine whether you want to start with a new brand facility for the business of you want to rent an exiting daycare center.

To get the rightest business location, you can check the zoning laws of your city. Not only that but you also need to check the childcare guideline licensing in your state to make sure that the location of your daycare business is compliant.

#6. Create a Contract

Once you have made your business plan in detail, this is time for you to create a contract. It should outline what you will provide for your clients and what you expect from them.

To create a good daycare business contract, you can start with several questions such as what time the parents should pick up their children in the daycare and whether there will be any consequence given if they are late for that.

When creating the business contract, you also need to outline what items that parents should responsible for, the policy for sick children, the consequence for late payments, and more.

You also need to clearly state in the contract how many days off you will take and whether the days are paid.

Many online resources are available out there to help you write your daycare business contract.

As an alternative, you can contact a childcare attorney to get advice on important elements that should be included in the paper.

#7. What Distinguishes You from Your Competitors?

To build a good brand, you need to determine what could help you distinguish your childcare business from similar businesses in your area.

Conducting some research will be a good idea to take. This will help you to find out how to meet the needs that you see.

The research should include several important elements required in the childcare business. This includes business hours, menu, services, and location that can help you distinguish your business from the competition.

For instance, whether would it be beneficial for your business if you offer different daycare-hour arrangements for a childcare business or not.

Also, which one is more advantageous among kosher, vegan, and organic menu if they are used in the business. Then, make sure that you market yourself well.

Aside from conventional marketing, you also need to consider marketing yourself through social media.

An official website contains pictures, services offered, vision, and mission of the child care will make your daycare business looks more professional. Not only that but will also help you to reach wider audiences, providing you with more potential clients.