Wondering how to start a daycare business? This article will go over the basic steps to start your own daycare practice, including researching the market, determining licensing and regulations, choosing a location, setting up your daycare space, hiring staff, and marketing your daycare business.

Research and Plan

If you have previous experience working with and taking care of children, and you have the patience to do so, this may be the time to start considering opening that daycare you have been dreaming of for a while. The need for quality childcare is growing, which makes it a good time to start your own business.

As more parents are returning to their jobs to provide financially for their families, the need for high-quality and affordable childcare continues to grow. Parents need the peace of mind that their child is in safe hands while they are out of the house, and daycares are beginning to run out of the space necessary to safely take in more children. Daycares have a strict limit on the number of children per care provider, and they are beginning to be overwhelmed with children.

However, childcare is not something that you just jump into willy-nilly. Taking care of children is a massive responsibility, and the parents put a significant amount of trust in you and your care. Opening a daycare is a massive commitment and investment, and we want to make sure that you are prepared to take on that level of responsibility.

Whenever you decide to start any business on your own, you do not want to run headfirst into it without some sort of game plan. Running a safe and successful daycare business is not as simple as it sounds, as the job requires you to take care of young children and keep them safe. This is a massive responsibility, and it should be taken very seriously and planned accordingly.

Not only that, but running a business, in general, is no easy feat. It requires strategic planning and framework to make sure that your business stays afloat and continues to flourish. Adequate research and planning need to take place before you can flip the open sign on your new daycare business. The two big things to focus on during the research phase are to understand the daycare market and where it currently stands, as well as to create a thorough business plan that will set you up for success in the long run.

Understand The Market

The first step when creating your daycare business plan is to get a feel for the daycare market in your target area. If you know the specific city or state that you want to open your daycare in, then look into that area and figure out what the market looks like. What are the current demands for daycare centers in that area? Perhaps the local daycare centers are too full and have to turn parents away, in which case there is a good job market for you to join. Find an area that has a strong need for childcare and daycare services and try to build your business there.

In addition, you need to figure out the demographics of your target audience. For a daycare business, your target audience may be younger working parents who need childcare during the 40-hour work week. Figure out who your target audience is and find out where they have a strong need for reliable childcare.

Create a Business Plan

Once you have a general idea of the daycare market and what your target audience looks like, the next step is to create your business plan. You need to make sure that you go into this endeavor prepared, so try to make your plan as thorough as you can. Set clear goals and objectives for your business, not just “I want to take care of kids.” Set tangible goals that you can realistically achieve, and figure out the steps you will need to take to reach those goals.

You also need to begin planning for your business financially. Calculate your potential start-up costs and figure out your pricing strategies for the services you will be providing. Also, look into potential funding options that can help your daycare business get off the ground.

It will also be beneficial to decide on what business structure you would like your daycare business to follow. Whether that be a sole proprietorship, a limited liability company (LLC), or a corporation, having this framework in place will help you flesh out your business in more detail.

Learn About Daycare Licensing and Regulations

You may have previous experience as a nanny or have taken care of children in the past, but running a daycare requires a whole set of licenses and regulations that must be followed for your daycare to remain legal. If these regulations and requirements are not strictly followed, it could lead to serious legal repercussions for your business and also for yourself individually. This is why it is crucial to be knowledgeable on these regulations and stay up-to-date on them in the event changes are made over time.

Daycares must abide by both local and state licensing laws and regulations, meaning that the specifics can vary depending on where you live. If you live anywhere in the United States, we strongly encourage you to get in touch with your state’s Department of Children and Family Services (DCFS) as well as your local childcare licensing agency. Both of these organizations are very well-versed in the daycare laws and regulations for your specific area, and their websites tend to have all of that information readily available to the public. Use this as an opportunity to read up on these regulations and prepare the necessary documentation.

The basic licensing and regulation requirements can include the following:

• Health and safety regulations
• Staff-to-child ratios and qualifications
• Permits and building codes
• Fire safety inspections for both home and non-home daycare centers

There are also requirements for the types of insurance that are required to run a daycare. This can include liability coverage, property insurance, business insurance, and worker’s compensation. The specific types of insurance that are required depend on the state that you live in. If you are not sure which are required in your area, be sure to reach out to your local child care licensing agency.

Choose a Location

Once you have the necessary licenses and certifications to run a legal daycare in your state, the next thing you need to do is pick a location where you want to open your childcare business. There are options for you to run your business from your home or commercial space, and both of these have different legal requirements and licenses that need to be obtained.

If you decide to look for a commercial location to house your business, then you need to find a space that meets your business’s needs. For a daycare, try to find a space that is in a safe and accessible area, as your primary clientele will be parents with their children. Also look for a location that is close to residential areas and workplaces, as that is where your target market will be found. Your daycare also needs to have a certain amount of indoor and outdoor space to safely care for children and give them the enrichment they need.

Set Up Your Daycare Space

You found a place for your daycare to call home! Now begins the process of setting up your daycare space. You want to make sure that your space is a safe and engaging environment for the children in your care while also keeping them safe. Your daycare should be a bright and colorful space where the children can have fun during the day while also engaging in active learning.

It is important to furnish your new daycare space with the proper furniture and equipment that balances fun with functionality. Totmate has an entire collection of daycare furniture pieces that are easy to build and able to withstand the chaos of a daycare environment.

We offer toddler changing tables, kids' tables, chairs, and storage options such as cubbies. Some of our pieces have the option to ship pre-built, saving you the time and hassle of having to build the furniture yourself. You can focus on preparing the rest of your space instead of counting screws and finding the right screwdriver.

Hire Daycare Staff

Staffing your daycare with qualified childcare providers can help take some of the weight off of your shoulders and balance the day-to-day workload. However, it is important to be very thorough in your hiring process, as childcare providers need to have specific qualifications and certifications to work at a daycare center. These can vary from state to state, so check with your local organizations.

In addition, be sure to perform background checks and thorough interviews to make sure that you are hiring qualified and kindhearted individuals to work with the children trusted in your care. They also need to have first aid and emergency preparedness training, as they will be responsible for the health and safety of the children under their watch.

Market Your Daycare Business

Now that you are ready to open your doors, you need to get people to actually come to the doors. People need to know that your business exists, which is where marketing comes in. Figure out creative ways to get your daycare’s name out there and bring clients to your front door.

There are marketing agencies that you can work with to help spread the word about your business, and there are a few marketing methods you can try on your own to start. These can include creating social media accounts, writing a blog, and even marketing through word of mouth.

FAQ

How much does it cost to open a daycare?

There is no exact number for how much it costs to open a daycare, as the cost can vary depending on factors such as your location and how big of a space you are renting out. In general, the cost of opening a daycare can range from $10,000 to $100,000, averaging out to around $50,000. The expenses involved in opening your own daycare can include the following:

• Renting Your Daycare Space
• Indoor And Outdoor Furniture Pieces
• Cleaning Supplies
• Child Care Supplies Such As Diapers And Baby Wipes
• Toys
• Licensing Fees
• Meals And Snacks For The Children
• Bottles, Cups, Plates, Utensils, etc.

Can you start a daycare from home?

If you live in the United States, yes! Most states allow you to run your daycare business from your home or other private residence. There are specific regulations you need to follow and licenses you need to obtain, and this can vary depending on the state that you live in.

Want to know how to start a daycare at home? A good place to start would be to visit The National Database of Child Care Licensing Regulations website, as they have a whole database of what licenses are required for an at-home daycare for each state.

How long does it take to get a daycare license?

The timeline for the entire process, from filling out the application to obtaining a daycare license, can vary depending on the state that you live in and their specific licensing requirements. On average, it can take a few months to get your license.

However, it can take longer if you do not already have the necessary paperwork that your state requires or if you do not have as much experience. Some states require a certain amount of previous childcare experience before you can apply for a daycare license, so obtaining that experience can prolong the entire process.