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Thinking About Opening a Daycare Center?


The daycare industry is poised to have one of the fastest employment growth spurts, of all service industries. If you are considering starting a child day care center, now is the perfect time to do it.

As with any other business types, there are numerous challenges involved opening and running a child daycare business.

There are however some things you need to ask yourself before you start, here are some reminders.

What are the licensing requirements in your area?

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Daycare centers are generally more closely regulated than most other industries, for good reason. You need to count the financial obligations associated with obtaining the required permits and licenses and weigh these against your projected turnover.

You should also keep in mind that many towns have zoning restrictions when it comes to child day care and private homes and not just in a commercial location. Childcare liability insurance should also be on your list of things to take care of.

What role will you have within the business?

Maybe you are a qualified teacher and wish to interact with young children. Perhaps you are an entrepreneur who just really likes kids and you have the desire to turn that into a thriving, profitable business. Whatever it is, be sure to define your actual role early so that you can quickly identify areas where you will need help and support.

Micromanagement isn’t always the best way to run a business, so knowing where your strengths are and leaving other things to people who really know what they are doing (and trusting they will) is by the best approach.

How many daycare centers have you actually visited?

If your answer this is either one or none then this needs to be rectified quickly. When you visit a daycare center, try to see it as though you were a visiting parent trying to decide if this center is right for your child. Ask yourself questions such as:

  • What is the child to staff member ratio?
  • How do they handle a poorly child?
  • Do they have vaccination linked admission policies?
  • Is this neighborhood safe?

These are all legitimate questions and will help you plan your own center. During your visit, note what has been done right and what you think could be done better. These notes will be important in making sure that your own daycare center hits the ground running.

Is funding available?

If you intend to run your center for a profit then most likely your only source of potential government assistance is the Child and Adult Food Care Program. There are, however, significant tax advantages for being a not for profit organization. In addition to this, Google offers $10k in free advertising, per month, for qualifying organizations.