How to Start a Daycare Business

The daycare business provides an excellent avenue for individuals to cash in on this booming, profit producing industry. As dual income families have become the norm, parents find no other option but to leave their children in the hands of capable daycare providers. But this business is not for the large daycare chains. In fact, individuals who are capable of running a small business in or close to their neighborhood are in a great position to keep their hands full.

Research shows that parents prefer to drop their children off close to home rather than close to work, which bodes well for the “residential” daycare center that you provide to your neighbors. Parents also feel safer leaving their kids with capable neighbors and people they know who limit the number of children they supervise, which has the perception of greater safety and less germs.

How much can you really make from starting a daycare center?

The income potential largely depends on how much you can scale your business. The more children you can supervise and manage without trouble, the more money you can make. Daycare centers typically charge around $50 a day for each child, and may charge more for meals. In other words, for every 10 children, you can bring in roughly $2,500 a week in gross profits for a 5-day/week program.

The amount of money you can make depends on the amount of space you have, how much you can physically handle, and how well you are able to get the word out. Once you establish regular clientele, your may find yourself turning down business as word-of-mouth advertising makes your phone ring off the hook. At that point it may be time to think about expanding and hiring help.

But before you start advertising your business, be sure to check your local state and government laws and regulations for running a daycare center. Some states require a certain amount of square footage per a child. You may even need to have a licensed teacher or a licensed nurse on premise, depending on the state you live in.

There’s a lot to find out before you jump in, so go out and visit daycare centers and start asking questions.

  • How much does rent and insurance cost?
  • What are the biggest safety issues and how do you handle emergencies?
  • How much do you charge?
  • What state regulations must be met, and which ones are the toughest to meet?
  • What is the biggest challenge of running a daycare?
  • Where do you find quality daycare personnel?

Start with visiting church and non-profit daycare centers, as they will be more willing to help out and give you advice. Once you have all the information you need, find local businesses, churches and other organizations that could benefit from a daycare. You might just get them to fund your new business start up costs.

To get all your information and tools to start a daycare, operate it smoothly while making a profit, get the Daycare Start Up Kit

3 Responses to How to Start a Daycare Business

  1. friend says:

    It does state $50 a day per child, re-read the sentence. “Daycare
    centers typically charge around $50 a day for each child, and may
    charge more for meals.”

  2. Ryan says:

    Yeah, I went back and changed it.

  3. Andrea says:

    Thanks for writing this it had great tips!

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