With most parents working outside their homes, they have to find childcare services for their preschool-aged kids. Some place the children under the care of family members, babysitters, or nannies. However, many parents rely on daycare services to care for their children.
The demand for childcare services presents a business opportunity for anyone who loves children and doesn’t mind engaging them in finger painting, playing, and reading. Opening a daycare business can be rewarding financially and emotionally for people who desire to help parents or have a passion for children.
If you’re interested in a childcare business, here’s how to start a daycare:
Step 1: Take An Early Childhood Education Course
Although you don’t have to be an early childhood professional to know how to open a daycare business, learning about childhood development would give you a competitive advantage. Since you’ll be caring for young children, you should know how to provide the proper care and support.
This training can give you a solid understanding of what children need and how they behave and think. Most importantly, training will prepare you to provide the services parents seek, which keeps them from returning every time. You could enroll in an online course or take in-person lessons at a local college.
Step 2: Check Licensing Requirements
You must fulfill daycare licensing requirements to operate a daycare business in your area. A license legitimizes your daycare business and keeps you from getting into trouble with the government for accepting children.
Visit the children’s department in your state to learn about regulations that providers of childcare services must adhere to. You should also check out licensing information online by visiting the website of your local licensing agency.
You’ll need a clean driving record, a cardiopulmonary resuscitation (CPR) certificate, and evidence of commitment to offer quality childcare services to get a daycare license. Call or visit the local licensing agency to ask questions and ensure you meet all the requirements.
Step 3: Prepare A Business Plan
The next step is to prepare a business plan for your daycare business. Developing a business plan enables you to set practical goals for your company, outline your services and create a structure. Ideally, the business plan should define your mission statement, staffing needs, operating procedures, and budget.
The business plan development process enables you to think through issues like how you’ll finance your business, whether you’ll hire staff or operate it solo. You also consider your service offering range—would you provide other services like tutoring? Additionally, a business plan enables you to track business progress.
Step 4: Get A Suitable Location
The next step in starting a daycare business is finding an ideal location. This step is straightforward if you plan to set up a daycare in your home. If not, you have to identify a suitable location for your business. You may consider finding places like churches, recreational centers, local businesses, and schools with free space to lease at a monthly fee.
Alternatively, look for options online, in local newspapers, or make inquiries in your network. Ideal locations are easily accessible, centrally located, and child-friendly. Consider your city’s licensing guidelines and zoning laws to ensure you pick a compliant site.
Step 5: Raise Funds
Starting a daycare business requires capital to meet costs like rent, indoor and outdoor equipment, cleaning supplies, toys, consumables like wipes and diapers, and license fees.
You also need money to purchase a business laptop and provide reliable transport and utensils like food. You can raise capital from savings, family and friends, loans, community fundraising, or business grants from organizations that support startups.
Step 6: Set Up The Daycare Center
Once you have the license, capital, facility, and all materials and equipment, it’s time to set up the daycare center. Start by cleaning and sanitizing the facility before childproofing it based on the age of the children you plan to serve. Determine the layout of the center and set the toys and play equipment.
The set-up process should include getting relevant insurance, drafting contracts, preparing operation procedures, and hiring staff. Check with the licensing office to determine what insurance you need if you need clarification. Draw a contract for clients to sign to prevent legal issues. You prepare the agreement or have a lawyer draft one in line with your business requirements.
The contract should outline what you expect from your clients, including payment’s due date, pick-up time, and consequences of late payments and late pick-ups. Prepare standard procedures to guide your daycare operations. Such policies would include safety and privacy protocols, emergency plans, and facility rules.
If you plan to recruit staff to run the business, hire one at the beginning and add more over time in line with licensing requirements on the staff-to-children ratio. Conduct criminal background checks before hiring to keep the children safe.
Step 7: Market Your Business
Once you’re done with setting up your daycare business, let people know about it. You can post fliers around your community, schools, businesses, and coffee shops. You could also run ads on social media platforms to reach families in your area. With time, you can promote your business on social media and set up a well-optimized website to attract online traffic.
Final Thoughts
A childcare business can be rewarding for people who love kids. If you’re wondering how to open a daycare business in your area, following the steps above will get you started in no time.
