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The Daycare Business Plan Blueprint (Examples + Template)

April 14, 2022

Adam Hoeksema

Starting a daycare business can be a daunting task. There are so many things to think about and plan for. You need to find the perfect location, get the right licenses and permits, hire qualified staff, and, most importantly, create a daycare business plan. 

Creating a daycare business plan is one of the most important steps in starting your business. A well-thought-out business plan will help you get funding, attract investors, and operate your business effectively. 

The bad news is that there is a lot of advice out there on writing a business plan. With so much information and tons of daycare business plan examples to choose from, it can be overwhelming to know where to start. 

The good news is, we've got you covered. In this article, we'll give you a comprehensive guide on how to write a daycare business plan. We will also provide some examples and a free daycare business plan template to get you started. 

But First...Is a Daycare a Good Business to Start? 

Before we talk about how to create a daycare business plan, let's first answer the question: is starting a daycare a good business to get into? 

The answer is a resounding yes! The daycare industry is growing rapidly. It is one of the few businesses that are not only recession-proof but also thrives in uncertain economic times. 

According to the National Association of Child Care Resource & Referral Agencies (NACCRRA), the demand for child care services has increased by 26% over the last decade. This demand is only expected to grow in the coming years. 

When it comes to profitability, the daycare industry is very attractive. According to IBISWorld , the average profit margin for a daycare business is around 15%. That's higher than the average for most other industries! 

If you're thinking about starting a daycare business, know that you are getting into a very profitable and in-demand industry. Now let's talk about how to write a daycare business plan that will help you start and grow your business successfully.

How to Create a Daycare Business Plan 

A daycare business plan is as simple as a word document with the following sections:

• Business Description
• Market Analysis

Business Model

• Location and Facility
• Marketing Plan
• Financial Plan

Executive Summary

This article will provide context of what to include in each section of your daycare business plan. As you work on writing your business plan, you will want to grab our daycare financial projection template as well in order to complete the financial plan section.

Your daycare business plan should be an elevator pitch in itself. It should be attractive to potential partners and investors. Basically, it should give them a clear idea of your business, where it is located, what services you offer, who your target market is, and how you plan to make money. 

Creating a daycare business plan doesn't have to be complicated. In fact, the cheapest and easiest approach is to simply start with a blank word document and work through each of the above sections, it can be pretty easy. Here is a step-by-step guide on how to create a daycare business plan: 

Create a Compelling Business Description

Your daycare business's unique selling point (USP) should be the first thing you include in your business plan. What is it that makes your daycare center different from all the others? 

This description should be the foundation of your marketing efforts as well.

There are a few questions you should answer in your company description. They include:

What's your Curriculum Based On?

Potential investors, partners, and even customers will be interested in knowing what your curriculum is based on. This will help them understand the environment children will be in a while under your care. 

When describing your curriculum, make sure to include:

• What age ranges do you cater for?
• The type of care you offer (full-time, part-time, drop-in) 
• Your educational philosophy 
• The activities and programs you offer 

For example, if your daycare is unique by offering a Montessori curriculum, you will want to highlight that.  In fact, you can learn more about how to start a Montessori program here . 

How Big is Your Facility? 

The size of your facility will say a lot about the type of operation you're running. Are you a small, home-based daycare or a large center with multiple classrooms? 

This section of your business plan may include: 

• A floor plan of your facility 
• The capacity of your facility 
• The number of employees you have 
• Type of equipment and furniture you have 

Who Is Your Target Market? 

You can't market to everyone, so you must identify your target market. This will help you focus your marketing efforts and ensure that you're reaching the right people. 

Below is a daycare business plan example that shows how your business description should be:

“ABC Daycare is a small, home-based daycare located in San Francisco, CA. We cater to children aged 0-12 years old and offer full-time, part-time, and drop-in care. 

Our curriculum is based on the Reggio Emilia approach, emphasizing hands-on learning and collaboration. Activities and programs include arts and crafts, music, and outdoor play. 

Our facility can accommodate up to 12 children at a time. We have a staff of four employees who are all CPR and First Aid certified. 

Our target market is working parents in the city who need quality child care but can't afford the rates of larger daycare centers.  We've created an affordable subscription-based pricing model for our target market to fulfill the demand. We generate revenue through monthly subscriptions and have low operating costs due to our small size. 

Our suppliers are local businesses that provide us with food, toys, and other supplies.” 

Do a Thorough Market Analysis

After writing a compelling description of your business, you need to do a thorough marketing analysis. This analysis will help you determine your target market, what type of advertising and promotion will work best, and how to price your services. 

You should also research the competition and see what they are doing right and wrong. This information will be invaluable as you create your daycare business plan.

Keep these things in mind when doing a market analysis:

The Size of Your Market

This is determined by the number of potential customers in your area who need or want your services. 

For example, if you live in a small town with only a few thousand people, there may not be enough demand to support a large daycare facility. 

On the other hand, if you live in a city with hundreds of thousands of people, there may be room for multiple daycare facilities. 

Your target market is the segment of the population that is most likely to use your services. This includes factors like age, income, education, and location. 

After you've identified your target market, you need to show how you plan on fulfilling the demand. This is where your business model comes in. 

Your business model is a detailed description of how your daycare will operate daily. It should include: 

• How do you plan on acquiring customers? 
• What are your pricing strategies? 
• How will you generate revenue? 
• What are your operating costs? 
• Who are your suppliers? 

Your business model should be detailed and easy to understand. It should also be realistic and achievable. 

Here is a daycare business plan example of a business model for a small daycare center: 

“The daycare will be open Monday through Friday from six in the morning to six at night. We will offer care for children ages six weeks to twelve years old. 

Our rates will be $50 per week for one child and $40 per week for each additional child from the same family. We will offer a discount of $20 per week for families who enroll their children for an entire year. 

We will generate revenue by charging weekly rates for our services. Our operating costs will include rent, utilities, supplies, and salaries for our employees. Also, we will acquire customers through online advertising and word-of-mouth.” 

As you can see, a business model is a detailed description of how your business will operate. It's essential to have one in place before promoting and selling your services. 

One thing you should not forget to include in your daycare business plan is the location of your business and your rental agreement. If you are renting a space, including the terms of your agreement and how long you have the space. If you are purchasing a property, include information on the property, such as square footage and any special features that will help your business stand out. 

This daycare business plan example shows you how to include this vital information: 

“The daycare will be located at 123 Main Street in a commercial space currently leased by the owner. The lease agreement is for three years with an option to renew for an additional three years. The monthly rent is $2000, and the security deposit is $3000. 

The daycare will have exclusive use of the main floor, including a large open play area, a small kitchen, two bathrooms, and four classrooms. The daycare will also have access to the outdoor playground.

80% of our space will be used for childcare, with the other 20% used for our administrative offices and staff lounge. 

We have chosen this location because it is close to several residential neighborhoods and has easy access to public transportation. The space is also large enough to accommodate our future growth.” 

There are many daycare business plan templates you can use to help you get started. This is a basic outline of what should be included.

Daycare Marketing Plan

Most daycare business plan templates will include a section for your marketing plan. Most people overlook the marketing aspect of their business, but it is one of the most important pieces of your puzzle. 

In your business plan, you need to outline your target market, your marketing strategies, and how you plan on executing those strategies. 

You also need to set aside a budget for your marketing efforts. Many people make the mistake of thinking that they don't need to spend money on marketing, but that couldn't be further from the truth. 

The following daycare business plan example shows you how you should describe your marketing efforts:

"Our target market is working for families with children between six weeks and five years old. We will reach our target market through online and offline marketing efforts. 

Some of the offline marketing strategies we will use include print advertising, flyers, and word-of-mouth referrals. We will use a mix of SEO, content marketing, and social media for online marketing. 

We have set aside a budget of $500 per month for our marketing efforts."

As you can see from the example above, your marketing plan should be clear, concise, and to the point. Don't forget to include a budget!

Daycare Financial Plan

Your business plan should include a financial plan section. This is where you'll lay out how much money you need to start or grow your business. Be specific and include dollar amounts. If you're seeking a loan, including information on how much you're requesting and how you'll use the funds.

You should also include a detailed budget in your business plan. Your budget should include all of your projected income and expenses for at least the first year of operation. Creating a budget will help you get a clear picture of what it will cost to start and operate your business.

This section should include projected costs for:

• Rent or mortgage payments
• Advertising and marketing
• Operating expenses such as utilities, supplies, and more. 

Startup costs are another vital item to include in your business plan. This is the money you need to purchase equipment, furniture, or any other items to get your business up and running.

If you plan to secure a loan, your lender will want to see a detailed business plan with information on how you plan to use the loan funds. Ensure you include this information in your business plan to increase your chances of securing funding.

If you're seeking funding from investors, you'll need to include information on how they will be compensated. This is typically done through equity, a percentage ownership stake in your business. 

For example, if you seek $100,000 in funding and offer a 20% equity stake, the investor will own 20% of your business. 

Make sure you use a daycare business plan template that includes a section on funding to ensure you include all the necessary information. If you’re planning to get a loan or seek investment, you’re going to need full financial projections. Our daycare financial model will provide up to 5 years of projected income statements, cash flow and balance sheet forecasts.

Next I want to answer some key financial questions for you as you consider how to forecast your daycare financials. I am going to hit on:

• Daycare Startup Costs
• Daycare Revenue 
• Daycare Facility Operating Expenses
• Daycare Profitability

Let’s dive into some key questions. 

How much does it cost to start a daycare? 

It costs between $10,000 and $50,000 to start an in-home daycare business according to Bizfluent . 

It costs between $59,000 and $3 million dollars to start a daycare facility according to Bizfluent . 

So obviously this is a huge range in startup costs.  The main thing that will determine your startup costs is your daycare facility.  Depending on how large your daycare is, whether you are buying, building, or leasing the space, and how much renovation needs to be done, your startup costs can vary drastically.  

Some tips to help you estimate a cost of a daycare facility:

• A daycare facility should have 35 square feet of open floor space indoors per child. 
• So if you wanted a facility that could care for 100 children you would need 3,500 square feet of indoor space for children, plus additional space for offices, kitchen, bathrooms, etc.  Let’s assume that you would need at least 5,000 square feet of space for a daycare facility that served 100 children.  
• A daycare center would cost at least $295 per square foot to construct in the U.S. based on data from Levelset . 
• Constructing a new 5,000 square foot daycare center would likely cost at least $1,475,000 based on $295 per square foot.  
• Now you might not be constructing new, rather you might rent an existing facility which could require renovations.  You will need to get a specific quote for the specific renovations that you need for your space. 

How much revenue can a daycare business make?

A daycare facility can generate $17,680 in revenue per year per child according to Zippia .  

A daycare business with 100 children can generate over $1.75 million per year in annual revenue based on our average revenue per child of $17,680. 

How much does daycare cost?

The average cost of daycare is $17,680 per year, per child in the U.S. according to Zippia . 

This means that the average monthly cost of daycare in the U.S. is roughly $1,475.

What is the typical child to staff ratio for a daycare? 

The typical child to staff ratios for a daycare are:

• 1 adult staff for every 4 infants (age 0 to 12 months)
• 1 adult staff for every 6 toddlers (age 1 to 3 years)
• 1 adult staff for every 10 pre schoolers (age 3 to 5 years)
• 1 adult staff for every 12 school aged children (5+ years old)

Source - Childcare.gov

These ratios will help you estimate how many staff members you will need.  Our financial projection template makes this easy.  Just enter in your ratios and the number of children you expect to have in each age group and the model will automatically calculate the number of staff required to maintain your ratios.  See the input daycare staffing table below:

What are the typical operating costs for a daycare? 

Your largest operating expense for a daycare facility is likely to be your rent. 

It should cost between $20 and $30 per square foot to rent a daycare center space based on available spaces on Loopnet . 

Other operating costs for a daycare center include:

You can see how you can enter in your operating costs into our financial model below:

How much profit can a daycare make? 

The average daycare profit margin is 6.5% according to Daycare Business Boss . 

Once you complete your projections you will want to take a look at our At a Glance tab to make sure that your projected profit margins aren’t way out of line with the industry norms.  You can find projected profit margins for your daycare below:

This is an important aspect that you may not find in most daycare business plan templates, but it's still essential. An appendix includes any additional information to help you understand your business plan. This might include things like your:

• Business licenses 
• Insurance policy 
• Lease agreement 
• Sample contracts 
• Staff bios 

This section adds credibility to your daycare business plan and shows that you've done your homework. Including all of the necessary details in your appendix will give investors peace of mind and show that you're serious about starting a daycare center.

An executive summary is a brief overview of your business plan and is often considered the most important section. It should be two pages long, with a clear description of your business, your goals, and why you will achieve them.

There are several key elements to include in your executive summary:

• Business Name: This is the name you have chosen for your business.
• Location: Include the city, state, and country where your business will be located.
• Business description: Describe what type of business you will be operating.
• Target market : This is the group of people you will be targeting as customers.
• Competition: Who are your competitors, and how will you compete with them?
• Product or service : What product or service will you be offering?
• Sales and marketing: How will you generate sales?
• Financials: Include a five-year income statement, balance sheet, and cash flow statement.
• Management team: Introduce your management team and their experience.
• Exit strategy : This is the plan for how you will eventually sell or otherwise exit the business in case you decide to retire or move on to other projects.

The executive summary is the most crucial section of your business plan because it gives investors and lenders a quick overview of your company and its prospects. Be sure to include all of the key elements listed above, and keep it under two pages in length.

What Are The Benefits of Creating a Daycare Business Plan?

Research shows that a business plan helps business owners make better decisions, turn abstract goals into tangible objectives, and track progress over time. But what does this mean for those who want to open a daycare? 

Creating a business plan forces you to think through every step of starting your company. It's a valuable exercise that can save you time and money in the long run. Even if you don't end up following your business plan to a tee, the process of writing it will help you better understand your business and what needs to be done to make it successful. 

There are many benefits to creating a daycare business plan, including: 

Gives You a Roadmap to Follow

As with any journey, it's always helpful to have a map. A business plan is that map for your daycare business. It will give you a clear idea of where you want to go and how you can get there. 

Helps You Secure Funding

A business plan is essential if you're looking for investors or loans. It will show potential lenders and investors that you've put thought into your business and have a solid strategy for making it successful. 

Ensures Your Daycare Business is Feasible

When you're starting a business, it's easy to get caught up in the excitement and overlook potential problems. A business plan forces you to take a step back and assess whether your business is truly viable. It also helps you identify any areas where additional research is needed. 

Final Thoughts

A daycare business plan is a valuable tool to help you make your business successful. 

It is worth noting that your business plan is not a one-time exercise but should be updated regularly as your business grows and changes. This document is meant to be a living document that evolves as your business does. 

If you're unsure where to start, there are plenty of resources available to help you, including daycare business plan examples online, books, and daycare business plan templates. 

You can also use our daycare projection template to get your financial plan ironed out and ready for your business plan.

The most important thing is just to get started. The sooner you create your business plan, the better prepared you will be for success.

You can get the Daycare Facility financial projection template here!

The template is simple to use and will save you loads of time while still producing professional looking daycare projections. ProjectionHub has helped more than 50,000 businesses create financial projections so you can be confident that you can do it too.

The daycare business projection template includes:

5 Year Daycare Facility Pro Forma Financial Statements

CPA Developed & Completely Customizable

Free Support & Projections Review

Compatible with Google Sheets

Free expert review of your completed projections

The template is easy to use and you do not need to be an excel wizard to fill it out. Editable cells are highlighted in blue, a video guide is included, and our team is available to answer any questions you have.

You can see the complete walkthrough and demonstration of the daycare business forecast template here:

Get the template today for just $79

If you have any questions before purchasing, please feel free to begin a live chat or email us at [email protected]

100% money back guarantee in accordance with our terms and conditions

‍ Photo by Pixabay

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 40,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Child Care Business Plan Template

Written by Dave Lavinsky

  Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their child care centers. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a child care business plan template step-by-step so you can create your plan today.

Download our Ultimate Child Care Business Plan Template here >

What is a Childcare Business Plan?

A business plan provides a snapshot of your child care business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan as a Childcare Provider

If you’re looking to start a childcare business or grow your existing one you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your child care in order to improve your chances of success. Your childcare business plan is a living document that should be updated annually as your business grows and changes.  

Source of Funding for Child Care Businesses

With regards to funding, the main sources of funding for a child care business are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a child care is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.  

Finish Your Business Plan Today!

How to write a business plan for a childcare business.

A childcare business plan should include 10 sections as follows:

Executive Summary

• Company Overview

Industry Analysis

Customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of child care facility you are operating and the status; for example, are you a startup, do you have a child care that you would like to grow, or are you operating a chain of child care businesses.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the childcare industry. Discuss the type of child care you are operating. Provide key details regarding your direct competition. Give an overview of your target audience. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will describe your business concept for a child care business that you are currently operating or plan to open.

For example, you might operate one of the following types:

In addition to a business description, the Company Analysis section of your business plan needs to provide background on the business. Include answers to question such as:

• When and why did you start the business?
• What is your mission statement?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new program offerings, etc.
• Your legal structure. Are you incorporated as an S-Corp? A Limited Liability Company? A sole proprietor? Explain your business structure here.

In your industry analysis, you need to provide an overview of the child care business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the child care industry educates you. It helps you understand the local market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards child care that includes transportation, it would be helpful to ensure your plan calls for such a service.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the child care business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the target market?
• What trends are affecting the child care industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your child care. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.

The customer analysis section must detail the target customers you serve and/or expect to serve.

The following are examples of customer segments: working parents, young families, baby boomers caring for grandchildren, etc.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most child care businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your potential customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

Finish Your Childcare Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Child Care Business Plan Template you can finish your plan in just 8 hours or less!

Your competitive analysis should identify the direct and indirect competitors your business faces and then focus on the latter.

Direct competitors are other child care businesses.

Indirect competitors are other childcare options that customers have that aren’t direct competitors. This includes keeping children at home and/or after school programs among others.

With regards to direct competition, you want to detail the other child care businesses with which you compete. Most likely, your direct competitors will be child care centers located within the same residential neighborhood or very close to your local area.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What child care services do they offer?
• What times are they open?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your unique value proposition. For example:

• Will you provide superior child care services?
• Will you provide child care services that your competitors don’t offer?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a child care business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of child care that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, will you over technology or exercise classes to the children?

Price : Document the competitive pricing strategies you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your child care. Document your location and mention how the location will impact your success. For example, is your child care located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your child care marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some marketing efforts you might consider:

• Social media marketing
• Reaching out to local bloggers (particularly “mommy” bloggers) and websites
• Local radio advertising
• Banner ads at local venues

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your child care such as discussions with prospective new customers, procuring supplies, cleaning and sanitizing the facility, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th child, or when you hope to reach $X in sales. It could also be when you expect to hire your 4th employee or launch a new location.

To demonstrate your child care’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the child care business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in childcare businesses and/or successfully running retail and small businesses.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your ongoing expenses to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 10 children per day or 50? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your childcare center, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow forecast will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 childcare contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your financial projections be sure to include several of the key start-up expenses needed to open a childcare center:

• Center build-out including design fees, construction, etc.
• Cost of fixtures like tables, chairs, couches, etc.
• Cost of equipment used like computers and televisions
• Staffing costs for support staff members
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your childcare center design blueprint or location lease.

Free Business Plan Template for Childcare Providers

You can download our child care business plan PDF .

Childcare Business Plan Summary

Putting together a business plan for your childcare facility will improve your company’s chances of success. The process of developing your plan will help you better understand your target market, your competition, and your customers. You will also gain a marketing plan to better attract families, a business operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Growthink’s Ultimate Child Care Business Plan Template allows you to quickly and easily complete your Child Care Business Plan.

Additional Resources For Starting a Childcare Center

• Opening & Running a Child Care Center
• Marketing Your Child Care Program
• Childcare Licensing and Regulations

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Other Helpful Business Plan Articles & Templates

Daycare Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Daycare Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Daycare Business Plan

You’ve come to the right place to easily complete your daycare business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their daycares.

How To Write a Daycare Business Plan & Example

Below are links to each section of your daycare business plan template:

• Executive Summary – This is a brief overview of your daycare business plan. The executive summary should be no more than 2 pages long, with brief summaries of other sections of the plan.
• Company Overview – This is where you provide a business description, including your company history, business structure, and any pertinent information about the daycare center.
• Industry Analysis – The industry analysis describes the daycare industry, including market size and trends.
• Customer Analysis – This section of your daycare business plan describes your target market and potential customers. You will detail the demographics, needs, and wants of your target audience and how you plan to meet those needs.
• Competitive Analysis – The competition in your local area will be described here, along with how your daycare business will compete in the market.
• Marketing Plan – Your marketing plan will describe your daycare’s marketing strategy, including your advertising and promotion plans.
• Operations Plan – This section of your business plan describes how your daycare will be operated on a day-to-day basis. It may also include your long-term plans for expansion and the milestones you want to achieve to get there.
• Management Team – The management team section of your business plan should describe the experience and qualifications of your management team including the director, teachers, and support staff.
• Financial Plan – The financial plan section of your daycare business plan should include your financial statements, such as your income statement, balance sheet, and cash flow statement.

Next Section: Executive Summary >

Daycare Business Plan FAQs

What is a daycare business plan.

A daycare business plan is a plan to start and/or grow your daycare business. Among other things, a good daycare business plan will outline your business concept, identify your target customers, present research about the child care industry, detail your marketing plan, and provide your financial plan.

You can  easily complete your daycare business plan using our Daycare Business Plan Template here .

What Are the Main Types of Daycare Businesses?

There are different types of daycare businesses that parents can choose from for their child's needs. A traditional daycare center is most sought after by working parents since it provides child care during regular work hours. There are also in-home daycare centers that are licensed to provide child care in a home setting with fewer children. Other child care centers provide hourly care services by trusted babysitters or nannies and are operating on an as-needed basis.

What Are the Main Sources of Revenues and Expenses for a Daycare Business?

The primary source of revenue for a daycare business is its child care services.

Some key expenses for a daycare business is rent, salaries for staff, utilities and snacks expenses for the children.

How Do You Get Funding for Your Day Care Business Plan?

A daycare or child care center is typically funded through small business loans, personal savings, credit card financing and/or angel investors. This is true for a business plan for daycare or a childcare business plan.

What are the Steps To Start a Daycare Business?

Starting a daycare can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Day Care Business Plan - The first step in starting a business is to create a detailed child care business plan that outlines all aspects of the venture. This should include market research on the childcare industry and potential target market size, information on the services you will offer, marketing strategy, pricing strategies and detailed financial projections.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your daycare business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your daycare business is in compliance with local laws.

3. Register Your Daycare Business - Once you have chosen a legal structure, the next step is to register your daycare business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your daycare business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Daycare Equipment & Supplies - In order to start your chlidcare business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your childcare   business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising to reach your target audience.

Learn more about how to start a successful daycare business:

• How to Start a Daycare Business

Where Can I Get a Daycare Business Plan Example PDF?

You can download our daycare business plan PDF template here. This is a business plan template you can use in PDF format.

Growthink's Ultimate Business Plan Template

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Daycare Business Plan Template

The world’s #1 daycare business plan template — it’s the quickest and easiest way to create a winning daycare business plan, period.

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Automatic Financials

Simply type in some numbers, like your salary and expected growth, and our template automatically calculates your complete 5-year financial projections.

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This section takes you through our proven and proprietary process for creating an Operations Plan that will transform your ideas into reality.

Improve Your Strategy

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For example, in the Marketing Plan section, you’ll see several of the best marketing tactics to get new customers.

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Immediately upon purchasing Growthink’s Ultimate Daycare Business Plan Template, you will be taken to our Member’s Area where you can instantly download our template and begin working on your business plan.

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How to create a childcare or daycare business plan

Claim your free Nextdoor business page

Claim your business page to get discovered by customers and manage your recommendations

Keeping a group of toddlers occupied and writing a strong business plan may be very different tasks, but both take patience, time, and coordinating a few moving pieces.

You bring the child care skills, this guide will help out with the other one, outlining the five key areas to include in an effective child care business plan.

From financial projections to local business marketing strategies , here are the most important sections of a successful daycare business plan.

1. Executive summary

Your childcare business plan will be as functional to your business as a shelf stocked with Curious George. Not only is it an essential document if you’re raising funds for your business, but it’s also a helpful way to organize your thoughts and plans for yourself and to share them with employees.

Start every business plan with a summary to hook whoever’s reading it to learn more about your company and your proposal. Think of it a little like a sales pitch for your business and a preview of everything you lay out inside. Be sure to include:

Contact information – Include your name, number, address, email, and any other relevant contact information so potential partners know how to get in touch.

Business concept – Whether a one-person babysitting service or a 24/7 child care facility, include key details of your business, including staff size, services, a summary of general operations, and the required operating licenses you have or plan to get.

Business structure – List owners, partners, managers, and employees, and explain the structure of your business and how it will run. This should also include your target demographic and basic marketing plans.

Mission – Share your reason for starting a childcare business. For Matt and Anne Evers , owners of the Primrose School of Atascocita in Kingwood, TX, their business is personal: “Since both of our children attend the school it is very easy for us to ask ourselves when making daily decisions, ‘What’s the best choice for the child? What will result in the best outcome for [them]?’”

Keep the executive summary to one or two pages. You’ll have the space to dive deeper into the details of your childcare business in the following sections.

2. Location details

Child care is a local business, which means location, community needs, and demographics are all key in planning your grand opening.

Your business location will likely fall into one of two categories of childcare businesses:

Inside your home – Operating within your home can mean less overhead costs, fewer rental expenses, and more flexibility. To comply with local and state safety regulations, you may be required to renovate or change portions of your home. 

Outside your home – Factor in rent, utilities, and any necessary repairs to the property. Whether renting in a residential neighborhood or purchasing a commercial property, summarize your general knowledge of the building and neighborhood, plus why you plan to operate there in this section.

Since your location is important to your childcare business, include insurance costs, relevant zoning laws, neighborhood information, and applicable details on kitchen and bathroom facilities.

3. Financial layout

An effective business plan will share both a compelling narrative for your idea and the steps you’ll take to make it a success. Your financial planning section should be well-researched with estimates for costs, the funding you’re seeking, and projected growth over the next three or more years. While this section is necessary for investors and partners, it will also give you a working plan to help your childcare business run smoothly and make a profit.

When fleshing out the financial section of your business plan, include details like:

Tax plan – Share your business’s legal structure — commonly C or S corporation, general or limited partnership, sole proprietor, or limited liability company — to plan for taxes.

Insurance – Assess risk, liability, protection, and coverage options to ensure you’ve covered all the necessary bases. 

Budget – Include both costs and projected profit for your child care business accounting for personnel, equipment, supplies, professional fees, and other expenses. Include monthly and annual budgets, as well as a cash-flow forecast.

Detail your plans for fluctuations, which is common for childcare businesses. Take it from Danielle Burns, director of Lil’ Red Barn Academy in Washington whose business experienced an influx of children in the summer of 2021, despite the summer typically being a slower time.

If you run into questions with the financial section of your business plan, consider tapping an accountant for help, especially if they have advised other local businesses in your area.

4. Marketing plan

It’s almost time to spread the word about your services. Building a marketing plan as a neighborhood business is more than catchy slogans and photos of cute kids. In this section, show your understanding of your local market and how your business will support it.

When developing your marketing plan, include:

Market analysis – Summarize the state of childcare in your area: Will you be one of five daycares on the block, or are you opening up within a community that’s lacking in childcare options? Consider neighborhood trends, your competition, and the average cost of child care in your neighborhood. Include information on your target clientele and how you’ll meet their needs to show your business’s potential.

Business niche – Whether you’re focused on a specific age group or specializing in evening care, explain where you fit into the overall childcare industry and how any unique services will distinguish you from the competition.

The 5 P’s: Price, product, promotion, place, and people – You’ll want to make sure you’re offering the right prices and products to the right people in the most effective way possible. Analyze market and demographic data for marketing or advertising plans for your childcare business to reach the right clients for your business.

Start with a free business page on Nextdoor . Set one up for your local business in minutes to instantly unlock a following of your most valuable customers: neighbors. Show up in local searches when neighbors look for childcare options near them, share updates as you open and grow, and build trust in your business with recommendations.  

5. Daily operations

The details of your day-to-day operations are just as important as the big picture ideas and long-term goals you’re setting. Use this section for the details of your services, including information on:

Personnel – List your team along with the goals and responsibilities of each of their roles. Share details of your hiring practices and staff policies, from sick leave to the termination process. 

Structure – Include a schedule for what a typical day at your daycare looks like highlighting what makes your business unique: lunch or nutrition plans, classes and other organized activities, playtime, exercise, and storytime.

Parental policies – The two most important details with parents are how you plan to keep them informed, and what your policies are. Pick-up and drop-off requirements, what happens if they’re late for pick-up, behavioral issues — build an action plan to set expectations when they first enroll their children.

Emergency plans – Include fire escape plans, medical protocol, and other possible contingency plans as part of your daily operational details.

Build a community with Nextdoor

The building blocks of a successful childcare service start with a comprehensive business plan. From there, your business will rely on your local community and how you’re able to meet the needs of the families in your neighborhood to thrive. 

With one in three U.S. households on Nextdoor , neighbors use the app every day to get things done, connect with everyone and everything nearby, and pass along local recommendations. With 50,000 shared each week, make the next recommendation for your child care services with a free business page and a plan to reach local families who need them.

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The 9 Essential Components of a Daycare Business Plan

• by Stephanie Vozza Stephanie Vozza is an experienced ... more
• November 19, 2020
• 4  Minute Read
• Home > Blog > Financial Health > The 9 Essential Components of a Daycare Business Plan

Entrepreneurs who love working with children might be wondering how to start a daycare business. Child care is a $54.6 billion industry, according to IBISWorld , and working with kids can be a rewarding career path. But before you can open a company of your own, you’ll need a daycare business plan.

Here’s how you make one.

Why a Daycare Business Plan Is Important

A business plan is a blueprint for how you’ll run your operation and will help you meet your goals. If you ever need to ask for funding from a lender, you’ll absolutely need a business plan, and a good one will demonstrate the strength of your business to lenders.

Business plans are living documents and should be updated as your business grows or changes. They’re as much a vision for the future as they are a plan for now, so look three to five years ahead when writing yours.

What You Should Include in Your Business Plan

A business plan can follow a template — the U.S. Small Business Administration offers several examples — but lenders don’t require you to follow a specific outline. When you write yours, use a combination of these nine sections.

1. Executive Summary

The executive summary is a general overview that highlights the main points of your daycare business plan. It should include your mission statement, location, services, management team and staff, and anything unique about your child care center. While this section comes first in a business plan, it helps to write it last by summarizing the following sections into a succinct overview for potential lenders or investors.

2. Company Description

This is where you detail your facility and the services you provide. There are several types of daycare businesses, such as:

• In-home care , such as a service that contracts nannies or sitters
• Daycare and child development centers for infants and toddlers
• Before- and after-school care for children with working parents
• A nursery or preschool , which provides daycare and education to toddlers and young children

In this section, discuss your specific competitive advantages. Maybe you plan to open a daycare center near a new corporate headquarters or by a large living development that’s being built. Your location could provide you ready access to clientele. Or maybe your staff members are bilingual, which means you could communicate with parents who aren’t comfortable speaking English or teach a foreign language to children in your care. Given the shift to remote work and education, you could even offer virtual learning technologies at your center.

This section should also include practical information about your operating hours.

3. Market Analysis

This section is where you demonstrate how you’ll set yourself apart from your competition. Provide information about the demand for your services in your area and how you’ll address them. Conduct thorough market research and note the size of the market you intend to serve. List the other daycare offerings that are available in your market, their strengths and weaknesses, and how you plan to position your center to compete. For example, you might offer flexible scheduling for parents with irregular working hours.

4. Organization and Management

This part of your plan includes information on how you’ll structure your daycare business, such as whether you’ll be a sole proprietorship, a partnership, an LLC or a corporation. Include legal information, such as your plan for site safety and emergency care. Provide bios for the management team that highlight any strengths that set them apart. And give details on your staff, including their qualifications, training, and responsibilities.

5. Products and Services

Every daycare business offers child care services, but you could structure your offerings in various ways. In this section of your business plan, explain what you’ll provide to parents and what you’ll charge clients. For example, you might offer drop-in daycare at one price and full-time daycare at another. Or you might offer meals and snacks as part of your program for an extra charge.

6. Marketing

This section explains how you’ll market your services to your target clientele. Be specific on how you’ll market your business. You might plan on taking out an ad in a local parent magazine. Word-of-mouth can be a big lead generator with daycare; you might set up a referral program for your clientele, offering discounts to existing customers for sending new ones your way.

If you plan to apply for a small business loan , you’ll need to add a section on funding that includes the information a lender needs to assess your business. Explain how you’ll use the money; for example, if you plan to purchase new playground equipment, provide a list of the items you intend to buy, how much each piece costs, how the new equipment will improve your business, and your projected return on investment.

8. Financial Projections

Whether or not you’re seeking funding, your daycare business plan should include financial projections. In this section, provide past and current revenue information , including your pricing structure, expenditures, balance sheets, and cash flow statements. Forecast future income based on expected enrollment growth. Back up these projections with data, such as population growth charts for your area.

9. Supporting Documents

Your plan should end with an appendix of supporting documents. This section commonly includes tax returns, credit histories, permits and licenses, contracts, lease agreements or mortgage statements, reference letters, and resumes. This section is optional, but including these documents provides helpful context to lenders or investors reviewing your plan.

Bringing Your Plan to Life

By taking the time to write a well-researched daycare business plan, you’ll create a rule book that can help your business succeed. But don’t stick your business plan in a drawer once it’s done. Instead, roll up your sleeves and review it monthly or quarterly to ensure that you’re on track, and update it as your goals and needs change.

A daycare business plan is the first step in how to start a daycare business. With a comprehensive plan, you validate your commitment to providing professional, high-quality services that can make a difference in a child’s life.

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How to Write a Business Plan for Daycare and Preschool

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• Running a business

Writing a daycare or preschool business plan is a big task, but due diligence and hard work will help you understand what you’ll need to launch and run a daycare or preschool successfully.

What do daycare investors want?

Your local government will have rules and regulations you’ll need to follow as a small business owner and childcare provider. Start by reviewing the childcare licensing guidelines for your state and city. Once you’re clear on licensing guidelines, you’re ready to start writing your childcare business plan.

The purpose of a business plan is to help secure funding. You’ll likely need financing to launch your preschool or daycare, especially if you want to avoid the monthly repayment of a loan. 

Investors provide businesses with money in exchange for partial ownership. As a result, they expect a larger return on their initial investment. Because many investors work in business, they prefer to invest in an established company.

Most investors look for:

Industry background and experience

Financial performance and promise.

Investors want to make money. Therefore, they are more inclined to work with experienced entrepreneurs and business owners to guarantee a return on their investment. 

This might sound discouraging for those with little experience or without a business management background, but the opportunity doesn’t end there. You could consider bringing on a partner with a business background. Additionally, many investors act as a source of business advice. 

You need to demonstrate that your business will make money. Investors will likely want to see signs of business growth before they give you money. 

Additionally, investors will want to know about your financial stability. Questions an investor might ask are:

• What do you plan to do with the money?
• Has your business been up or down in recent years?
• Is your company losing money? Are there signs of growth for the future?
• How do you plan to repay your investment?

Of course, every investor is different, so they’ll consider various factors. While experience and financial promise are at the top of the list for most investors, they might also look for uniqueness, business readiness, an effective business model, and more.

Writing a daycare business plan

We’ve discussed licensing and investors. Now, you’re ready to begin the framework of your business plan for daycares and preschools. Here’s what you’ll need to get started:

Business description

Needs assessment, insurance policies, operating policies and procedures, marketing strategy.

Start with the basics: what does your daycare do? Detailing the service you’re offering will help you create a clear business plan. Next, you might want to write some goals or even a mission statement outlining your purpose and motivation.

Start by looking at general daycare or preschool industry trends, then narrow your scope to the preschools or daycares in your local area. Next, you’ll need to figure out who your target customers are and confirm that there is a need for a business like yours in your community. 

Are there a lot of young families in your neighborhood? Are you located somewhere convenient for commuting parents? Does your business offer a specific service that your competitors don’t, like early check-in or extended hours? 

Also, check out the competition. Research the existing daycare or preschool options in your community. Look at current preschool or daycare business plan samples. What makes your daycare or preschool unique? 

Developing detailed budgets will help you run your small business. You’ll need to compare your current cash flow and expenditures to determine whether you’ll make a profit.

Build a budget for unexpected costs. For example, how many children do you need to serve to be able to pay your bills and stay afloat? Child Care Aware of America offers some terrific budgeting resources for this process.

Depending on the type and size of your preschool, you’ll need insurance policies of several different types, including liability, property, workers’ compensation, and business insurance. Check the licensing requirements for guidance in building this part of your preschool business plan.

Create a comprehensive handbook for families and staff that includes you center's policies and procedures. For instance, you'll need to develop an emergency plan , daycare sick policy , and other safety protocols according to your local childcare licensing requirements. 

Your staff handbook will be a helpful resource your employees can reference and include all your employment policies including work and pay schedules, benefits, and information about professional growth and development. You can also include information on your center's philosophy and curriculum, classroom procedures, and expectations for working with children and families.

Your marketing strategy is the key to attracting customers. Decide what type of advertising you will use in front of potential customers. For example, list your school in local directories and participate in parenting and kid-friendly community events. Run a social media campaign focusing on your target population.

Another big part of childcare business marketing is differentiating yourself from other preschools. These days adopting daycare software is a surefire way to attract families with young children. A tool like brightwheel's center management feature will streamline your center's admission process, record keeping, and reporting, saving you up to 20 hours per month. 

You can also use brightwheel for recording and tracking daily events and activities, and sending real-time updates to families throughout the day. It also offers secure, digital check-in/check-out and a paperless billing system. This is a great way to keep your families looped in on daily activities and handle all of your administrative tasks in one place.

Your business is ready!

Writing a business plan can be stressful, but it doesn’t have to be. Once you secure the proper licensing, use the information in this article to guide you through creating a solid daycare business plan that drives investors and financing to your business.

These are just the basics to get you started. For further information, the U.S. Small Business Administration’s website has detailed instructions on creating each necessary part of a successful business plan. 

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Legal Templates

Home Business Business Plan Daycare

Daycare Business Plan Template

Download our template and create a business plan for your daycare!

Updated September 22, 2023 Reviewed by Brooke Davis

When you are ready to start a daycare business, you need an effective plan outlining how to get there. High-quality child care is in high demand, but you must be prepared for the challenges of starting a new business.

A solid business plan will get you off on the right foot before you even open the doors of your new facility.

With these helpful tips, you can learn how to make a business plan for a daycare center. Whether you are looking to watch over young children or even need a dog daycare business plan, Legal Templates is here to help you get started.

Why You Need a Business Plan for Your Daycare Business

How to write a business plan for a daycare.

• Management Team

Daycare Business Plan Sample

A business plan sets the stage for how you will operate your business and how you will get it running. A daycare is no different. Opening a daycare requires intensive planning, legal compliance, and understanding of your market.

A daycare business plan template walks you through the steps to build a proper path forward. Every successful business is planned correctly, not as you go along.

A sample daycare business plan pdf or Word document lays it out for you. You can learn how to put it together and what you must include. Many business plans help you understand what you must do to prepare.

Some are designed to recruit potential investors to your cause. Either way, you need a business plan to prepare you for the challenges and successes ahead.

Knowing how to write your daycare business plan can be tricky without some help. You may not have done this before, but a daycare business plan example can help.

Follow these writing tips in each section to create a strong business plan for your future daycare.

1. Executive Summary

The initial section of your business plan is the executive summary. This part of your plan is an introduction for whoever reads it. It is designed to offer an overview of the remaining sections. It should be concise and add only summary details—this is not the section for intensive information or data.

The executive summary will highlight what your daycare business will look like and the most crucial section of your entire plan.

This section may provide information such as:

• A business address
• Phone number, email address, and other contact information
• List of owners
• Banking information
• Start date for the daycare
• Client base
• Market niche
• Factors for success

The executive summary lets you make a case for why your particular daycare will be successful and competitive. It is also the section that helps you sell yourself and your business to potential investors who may play a critical role in starting your daycare.

Provide a mission statement that reflects your goals for the daycare and your motivation for starting your business.

2. Management Team

Your daycare business plan should include important information about your management team. The first part of this section may address ownership of the business itself. It should outline all essential ownership details, such as:

• Legal names of every owner
• Each owner’s proportionate share
• The format of ownership percentage (i.e., stocks, capital investments, etc.)
• The format of the business (Corporation, LLC, etc.)
• Contact information for each owner

You want everyone who reads this business plan to know who has a stake and how their interests are represented. These details are a crucial part of business formation and preventing costly legal disputes in the future.

The management team section should also include the profiles of your management staff. These people will run the business daily, and they should be properly vetted before being put in charge.

Your business plan should list the management teams’:

• Names and positions
• Summary of responsibilities
• Credentials and education background
• Prior employment or experience
• Early childhood education licensing or other credentialing
• Management experience
• Salary and benefits
• Past success in a similar role

This information should demonstrate why these are the right people for the job. Not only does it help you know how your business will run, but it also shows others you have a proper plan in place for your daycare.

3. Products and Services

This section lets you talk about why you are starting this business in the first place. You will outline the services or products you intend to sell to consumers. For a daycare, it should outline the following:

• Who is being cared for: Children, elderly adults, or pets?
• Business hours
• Staff costs and required credentials
• Will you offer food, diapers, and other child-care products?
• How will you measure sales metrics

Daycare is typically considered a service, but product sales are also often a part of this model. Your plan should adequately account for how you will handle this dual purpose and how it fits into your business model.

4. Customers and Marketing

You must identify your market and how you will get customers into your daycare. This section will focus on your area’s need for daycare services and the types of customers you expect to get.

Identification of customers is a vital part of a business plan and should include details like:

• How many parents need childcare services?
• What costs can families be expected to pay for your services
• The community you will target
• Demographic data for potential customers

With your customers in mind, you can focus on your marketing strategies. You want to differentiate yourself from competitors and ensure the community knows your new business. The daycare business plan must outline how you will achieve these goals.

A marketing strategy should combine both traditional and digital marketing methods, including:

• Open houses
• Word-of-mouth advertising
• Advertisements in the paper or yellow pages
• Billboards or other ads
• Television, radio, or internet advertisements
• Social media pages

5. SWOT Analysis

A SWOT analysis will address your daycare’s strengths, weaknesses, opportunities, and potential threats. This analytical method examines your company and how it will operate.

It puts each of the four metrics into a visual matrix to help prospective business owners quickly identify favorable and unfavorable factors that may affect their business venture.

A SWOT analysis should focus on how your daycare services can perform against competitors. It may address factors like:

• Any threats the daycare may face
• Competitive advantages and why they would be successful
• Areas that may be improved over time
• Technology or resources the company may use to increase efficiency
• Internal factors that may affect economic success

Detailed SWOT sections show investors you have done your homework and give you valuable data to make informed business choices.

6. Financials

A business plan should address the unique financial situation you face. Your daycare business plan should demonstrate your break-even amounts and expected profit margins.

It will also address the costs and the areas of revenue you expect. You will want to address the following:

• Enrollment fees
• Payment plans
• Cost of supplies and materials
• Employee costs
• Regulatory costs
• Additional program offerings and revenue
• Necessary loans or capital improvements

A well-developed budget can demonstrate expected cash flows versus expected expenditures. Knowing how to handle these costs will be incredibly helpful in starting your daycare.

7. Operations

Your operational plan should outline specific procedures your business and staff will follow. It will list employees and those in management positions and their responsibilities.

As in your management section, a detailed “chain of command” is essential. Staff are an important part of your operations and should be detailed here.

One of the most important aspects of a daycare operation is its location. It would be best if you addressed the following:

• The facility’s address
• The type of area it is in (residential, commercial)
• The space available and amenities
• Why is it a prime location
• Accessibility to the community for drop-off

You should also list your business hours and the services you will have available at different times. Child daycare centers differ in when they offer care—whether during the day, evenings, or even on weekends.

If you are doing other forms of daycare, you may even utilize late or overnight hours. You can decide how you run your business, but operations should be clearly outlined in your business plan.

8. Appendix

The appendix section allows you to include other documents that add to your business plan. They may include legal documents like licensing credentials, insurance information, and business formation documents.

Additional documents in this area are meant to support your business plan. The appendix might also include the following:

• Reference letters
• Photographs of the facility, locations, or general area
• Market research data
• Compliance Requirements

The appendix is a flexible section that lets you add supporting documents and other relevant information. Only add details that are helpful to your business plan. The appendix does not need to be lengthy or filled with fluff.

Legal Templates has the daycare business plan sample you need to construct your plan. With this sample at your disposal, you can formulate a business plan for your daycare to show to investors or for your purposes.

You may also use a business plan builder template to help you construct your daycare business plan step by step. See the sample below to help you get started.

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Your Ultimate Toolkit for Building A Business Plan for Daycare

A good daycare business plan will guide you through each stage of starting and managing your childcare organization- including how to structure, run, and grow your new business.   

Prospective investors want to feel confident they’ll see a return on their investment and your center’s business plan is the perfect tool to assure potentials that working with you — or investing in your business— is a smart and profitable decision. In this blog, learn quick tips for building a simple daycare business plan.  

Check out the guide   for professional templates that help you build a solid daycare business plan .  

Table of Contents

• Write an Executive Summary
• Conduct an Opportunity Analysis
• Problem and Solution
• Build an Execution Plan
• Map Out Your Funding Sources
• Find the Right Vendors

How a Childcare Experience Platform Can Boost Your Business

How to build a business plan for daycare, 1) write an executive summary.

Building a daycare business plan starts with the executive summary. Although this section is the first thing people will read, it’s advised that you write it last, once you know the details of your business inside and out.  

Ideally, your executive summary will be able to act as a stand-alone document that covers the key highlights of your detailed business plan. In fact, it’s common for investors or loan providers to ask for just the executive summary when they start evaluating your business.   

As your executive summary is such a critical component of your business plan, you’ll want to  make sure that it’s as clear and concise as possible . Cover only the essential components of your daycare, ensuring your executive summary is one to two pages maximum.  

 The executive summary is a tell-all first paragraph that details…  

• The  city and state of your center (you can decide on the exact location later)
• A potential   open date
• A  projected enrollment count (number of full-time enrollments)  
• Programs you plan to offer  
• Ages you hope to serve (who's your daycare target market ?)
• A quick   financial summary (based on grants, funding, and potential revenue from projected enrollments)  

2) Conduct an Opportunity Analysis

Starting a business is tough work. 

Use your previous competitive research to determine your daycare business’s competitive advantage and position. The best daycare center will analyze a range of potential strengths, weaknesses, opportunities, and threats.

SWOT Analysis

3) Problem and Solution

Describe the problem that you are solving for your customers. Childcare centers are need-oriented, meaning your consumers have tangible pain points that you must resolve to be successful.  From there, you'll identify your daycare target market .

4) Build an Execution Plan

In an execution plan, you’ll address your marketing and enrollment plans, operations, success metrics, and any key milestones that you expect to achieve. Your execution plan should be carefully detailed...   

• Marketing and Sales  – The marketing and sales section of your business plan details how you propose to reach your target market segments and how you plan on converting those target markets.   
• Positioning Statement  – Refer back to your value proposition to create a simple, straightforward sentiment, explaining where your company sits within the competitive landscape and what differentiates your venue . This statement should be written for an investor or loan provider, rather than for your customer.   
• Mission Statement  - This should be just one or two sentences that are geared toward your target consumer and describe what your business plans to accomplish. This statement usually includes your company's core values.   
• Strategic Alliances  - You may wish to collaborate with other organizations such as local camps, after-school programs, pediatricians, or even other childcare centers that don’t offer the same activities that you do.   
• Operations – Discuss day-to-day business logistics here.  
• Milestones & Metrics  – Know what milestones you want to hit (be specific) and decide which metrics you need to track to reach these goals.  
• Company & Management Summary  – Describe the structure of your staff and teams.  
• Financial Forecasts  - A typical financial plan will have monthly sales and revenue forecasts for the first 12 months, and then annual projections for the remaining three to five years.

Need more ideas? See how to grow your childcare center's brand like a pro in this video resource ! 🙌

5) Map Out Your Funding Sources - Apply for Daycare Grants

Often, startup costs for opening a daycare are high. Certain states and counties offer grants for new daycare businesses. There are several grant options, depending on your child and family details.    

For example, there’s a Preschool Development Grant Program and a Head Start/Early Head Start grant to provide funding that expands early childhood centers and developmental programs.   

See 3 Essential Grants for Daycare Business Owners    

1. ccdbg funds.

The Child Care and Development Block Grant, also known as CCDBG Funds, provides federal funding to individual U.S. states. The goal of the grant is to help low-income families afford child care. With the recent of the American Rescue Plan Act of 2021, the CCDBG program will get an extra $15 billion in funding to support both families and childcare providers in need.  

What Can This Be Used for?   

• Parents who need financial assistance for daycare.   
• Childcare owners and directors who need help allocating funding for payroll, cleaning supplies, and other issues that have resulted from Covid-19.    
• Improve the quality of care and support childcare providers.  

2. CACFP Funds

For many daycares, the cost of food is a large, ongoing   expense . Fortunately, there are grants for child care centers that aim to alleviate this financial burden.      The Child and Adult Care Food Program (CACFP) provides funds to care centers like yours that can be used to purchase nutritious meals and snacks for eligible children. The way it works is by giving cash reimbursements to child care centers for serving meals and snacks that meet Federal nutritional guidelines to eligible children. In general, centers may be approved to claim reimbursement for serving up to two meals and one snack, or two snacks and one meal, per day to each child participant.   

• Childcare centers (owners/directors) that provide children with multiple snacks/meals (can help offset the rising cost of goods due to inflation).   
• Provides reimbursements for nutritious meals and snacks eligible for children and adults who are enrolled at a childcare center  
• Provides reimbursements for meals for children in emergency shelters

3. Childcare Expansion Initiative Grant

In February 2022, the Texas Workforce Commission   approved $75 million   to increase the number of high-quality home- and center-based childcare providers for working parents in Texas. Part of this funding will go towards the Child Care Expansion Initiative, to offer start-up funding to help expand the availability of child care in areas of the state that lack sufficient supply (child care deserts); for programs opening or expanding in partnership with a local employer; and, to expand the availability of infant care around the state.     New and existing home- and center-based child care providers who are opening or expanding their child care businesses after March 1, 2022, will be eligible to apply if they will be:     

• Serving families in a pre-defined   childcare desert.
• Operating in partnership with a local company or consortium of companies, to serve the children of their employees; and/or   
• Expanding the availability of care for infants (0-17 months).   

Funding can be used to offset operations costs incurred during startup and/or the first few months of opening or expanding. It cannot be used for major renovations or construction. Operations costs can include the use of a CMS/CRM or a unified childcare experience platform like LineLeader by ChildcareCRM . Applications will be available in June 2022 and will be accepted on a rolling basis through early 2023.

6) Find the Right Vendors

Choosing the right suppliers for your business is essential . If your vendors aren’t reliable or don’t deliver quality products, your new center will struggle to attract families. As a childcare provider, you will likely need the following vendors at one point or another:  

• Electrician 
• Plumber  
• Food and Beverage Supplier 
• Educational Materials Supplier  
• Substitute Staffing Provider 
• Accountant  
• Childcare Licensing Consultant 
• Cleaning & Maintenance  
• Childcare Management System (CMS) 
• Customer Relationship Management (CRM) Software  
• Digital Payments Provider 
• Online Forms Software  
• Childcare Experience Software 

Invest in your staff and family experience.  Save time, grow enrollment, and simplify center management with a childcare experience platform , the first and only solution to offer full-featured customer relationship management (CRM) software, a family engagement app, and childcare management software (CMS) in one unified platform. You can optimize your staff and family experience while managing your business more efficiently.

Take a look at the videos below to start your daycare business off on the right foot . Plus, learn the power of running your business with LineLeader - the only childcare experience platform .

Unlock the Full Daycare Business Plan Toolkit to Achieve Success

T he daycare business plan e-book will give you all the tools and knowledge you need to start up your own childcare business. It’s important that you identify your business objectives and use the e-book as a guideline for how to achieve those goals.   Building a daycare business plan isn't easy, but we're here to help.

D ownload a free business plan   for essential templates, tips, and best practices .  

Subscribe to stay up to date on the latest industry news, trends and best practices for growing and managing your childcare business.

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Day Care Business Plan

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Safe Kids Child Care

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

There are an increasing amount of families who have become dependent on two incomes, which has created the necessity of the child care industry. Increasing need means that there are more children that are in need of a safe enriching place to go. 

Safe Kids Child Care will succeed by offering its clients’ children a safe and secure care environment, and close personal attention. The goals of the center are dual-sided: to help parents feel good about the care of their children, and to make it a safe, educational, and fun experience for the child. 

Safe Kids Child Care has a focus on meeting the local need for child care services within the 10-mile radius of Lynn. Children are taken in flexibly on either a full-time or part-time basis.

Competition

There are over 300 child care providers in the local area. The larger commercial chain child care centers, such as KinderCare, have a majority of the market share. These larger chains compete well because of a good reputation among the consumer market. Safe Kids Child Care offers a lower staff to child ratio, which is appealing to most parents. Additionally, the company maintains child care fee levels that are 5-10% below the average of that of the large commercial chain child care fees.

 Safe Kids Child Care offers a lower staff to child ratio, which is appealing to most parents. Additionally, the company maintains child care fee levels that are 5-10% below the average of that of the large commercial chain child care fees.

Expectations

Safe Kids is an exciting opportunity that provides safe and secure child care to the Lynn, MA neighborhood. Safe Kids will reach sustainable profitability over the next three years. Through a combination of well-priced services, outstanding customer service, and a well seasoned management team, Safe Kids will quickly gain market share and a reputation as a premier child care provider.

Financial Highlights by Year

Financing needed.

We plan on having $40,000 to start our business. Each owner will contribute $20,000 to our opening costs. 

Problem & Solution

Problem worth solving.

The child care market is quite competitive in the Boston area. There are over 300 different facilities. There are two general types of facilities. The larger style is commercially run, typically a corporate franchise center. These facilities are both regional and national. Currently, the four largest child care facilities in the USA account for 29% of the market. There are also many different smaller locally run and owned faculties. While the largest facilities can host between 20-100 children, the locally run centers typically have a maximum capacity of 20 children.

Target Market

Market size & segments.

Full-Time Working Couples

The company wants to establish a significantly large full-time regular client base in order to establish a healthy, consistent revenue base to ensure stability of the business. Customer relations are extremely important, as it is imperative to keep the parents pleased in order to keep their children in the daycare center.

Part-Time Workers / Drop-Ins

Part-time workers and drop-ins comprise approximately 20% of revenues. While this market is not the primary focus, sufficient flexibility to handle this secondary market is important to producing supplemental revenues.

Current Alternatives

Our advantages.

Child care competitive edge is the facility’s efforts in obtaining all appropriate licensing and certifications. Additionally, thorough pre-hire background screenings are performed on all individuals before hired for employment.

Keys to Success

Keys to success for the company will include:

• Maintaining a reputable and untarnished reputation in the community. 
• Quality care. 
• Competitive pricing. 
• Flexible hours.

Marketing & Sales

Marketing plan.

The differentiating effort will be benchmarked customer service. A customer-centric philosophy will be infused within the entire organization. Safe Kids will spend extra money to attract and train the best employees. This is especially important because it is the employees that interact with both the children and parents and will have the best chance to impress them enough to turn them into a loyal customer as well as to be vocal in telling their friends about their positive child care experience. 

We will have a Social Media Campaign which uses Facebook and Linked in. We will have experts answer child care questions if the public wants. This gives the public confidence that we know what we doing. We will have customer reviews and allow our customers to talk to us. 

Safe Kids Child Care will make a significant profit through the excellent care of children. Even though Safe Kids charges less, the company will see profit within the first year due to beneficial word-of-mouth advertising. The company expects to double its’ clientele every six months, for the first 18 months.

Locations & Facilities

The facility will originally consist of a 1,300 sq. ft. house in a quiet, residential neighborhood. The yard will be fully fenced in, to ensure no one can either come in or wander away. The yard will be furnished with safe, entertaining toys, as well as a sandbox.

Milestones & Metrics

Key metrics.

Our Key Metrics are: 

• Facebook page views, Twitter re-tweets, and new potential clients calling saying that a current client referred them. 
• The number of children we take care of daily 
• The number of children that are signed up for the monthly care 
• The amount of training our staff has to take care of children and keep incidents down to zero. 

Ownership & Structure

This business will start out as a simple proprietorship, owned by its founders. As the operation grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will better suit the future business needs.

Management Team

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

Our key assumptions are: 

• There are children from families where both parents work or need to work. The children need somewhere safe and enriching where they can grow and make friends while their parents get a chance to get back to him.
• Adults sometimes have emergencies and they need to have a place to leave their children when they can’t be with them 
• The community appreciates the it takes a village mentality. They appreciate we have resources and experts that will answer their questions. We assume they will come to us if they need help, we won’t go out of our way to advise. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Our Start-up Expenses are $3000 including: 

Legal $1,000

Brochures $350

Stationery etc. $100

Activity Supplies $250

Food Preparation Supplies $300

First Aid Supplies $200

Cleaning Supplies $150

Nap Time Bedding $250

Sources of Funds

Our two owners will put up 20,000 dollars each, totaling 40,000. 

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

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The ultimate guide to starting a daycare business.

Why Start a Daycare?

Advantages to starting a daycare, can you start a daycare from home, how much does it cost to start a daycare, 15 steps to starting a daycare center, resources for daycare owners, bottom line.

Since most parents work outside the home, most preschool aged children receive some form of child care. While many are cared for by nannies, babysitters or other family members, nearly one-quarter (23.4%) of children under age five attend an organized daycare center. 

This presents a world of opportunity for those looking to take the next step and start a child care business of their own. Starting a daycare center can be both personally fulfilling and financially rewarding.

Do you want to open your own daycare center in the U.S.? Follow along with this guide as we reveal the step-by-step process for opening a successful child care business. 

Opening a daycare can be intimidating, but it can also be incredibly rewarding. While there is no blueprint for success, many child care business owners find joy in the journey. So whether it’s your passion for kids or desire to serve parents in your community, there are many valid reasons to open a daycare. 

What’s important is that you also need to consider your own unique reasons for wanting to open a daycare, as these reasons will then motivate you to follow through on your dream. Even though you will face obstacles along the way, the payoff of opening a daycare is certainly worth the struggles.

Starting your own daycare business can be advantageous on multiple levels. For one, you’ll have the personal satisfaction of starting your own care center from scratch. Then, there’s the joy of spending time with children and learning life-changing lessons along the way.

If you’re still on the fence about starting your own daycare, consider these likely advantages:

• Emotionally rewarding: Working with kids teaches you to be patient and enjoy the simple things in life. You’ll also have the flexibility of having your own business versus being confined to a traditional day job.
• Financial freedom: By opening a daycare, you’re in control of your income rather than reliant on a typical paycheck. You can maximize your earning potential and make investments back into your own business.
• Personal child care: If you have your own child, you can care for them while you’re running your daycare. This will save you money and give your offspring opportunities to make friends with other kids. 
• Continued education: Opening a daycare can open the door to new opportunities in the field of child care. You may be presented with another job position or choose to pursue additional education of your own accord. 
• Extra money: Rather than stay home and care for your own children for free (assuming the original plan was to be a stay-at-home parent), why not make some extra money by caring for other children at the same time? 
• Tax deductions: As a business owner, you can write of certain expenses as business expenses, saving you money on your taxes. These expenses can include a portion of your housing payment (if you have an in-home daycare), your cell phone bill, your vehicle, child care supplies and more. See Tax Deductions . 

These are just a few of the many advantages of starting your own daycare center. Now let’s address some common questions you may have about being a daycare business owner. 

Yes, starting a care center from your home is an option and may even be the more affordable option. This is because there are different options at the local, state and federal level that provide grants and funding to in-home daycare centers.

If you already have the space to run a child care business out of your home, it’s worth looking into Small Business Administration (SBA) loans to help you fund your endeavor. Remember, at the end of the day, you may be eligible for tax cuts and other benefits.

According to small business website bizfluent.com , the average startup cost for a daycare center is $10,000 to $50,000. This can vary widely depending on whether you’re opening a home-based daycare or leasing a separate facility for your care center. 

If you don’t have $10,000+ in your bank account, don’t worry. There are many grants and loans available to child care businesses. In fact, some local businesses will offer financial incentives to support budding child care centers. Consider reaching out to your community for support.

Now, let’s get to the good stuff: how to start your own daycare business from start to finish!

Starting a small business in general is always a journey. While we’ve outlined a few steps to getting your business up and running, know that there is no one “right” way to achieve success. You’ll learn many lessons along the way and are likely to pave your own path.

That said, here are 15 steps to starting your daycare center, even if you have zero experience.

1. Learn About Daycare Licensing Requirements

You might have started off as a babysitter or a nanny, but in order to start a full-on daycare business, you need to meet the proper licensing requirements in order to be legal . That way, your daycare will be legitimate and you won’t run into any legal trouble accepting children into your care. 

A good first step is to contact your state’s Department of Children and Family Services (DCFS) to learn about their specific regulations for child care providers. Another option is your local area’s child care licensing agency. You can usually find this information online. 

To obtain a license to start a daycare center, you’ll also need a current CPR certification, a clean driving record and additional documents that prove your commitment to providing quality child care. Don’t be afraid to ask your local agency questions to ensure you’re satisfying all requirements.

2. Consider Taking Early Childhood Education Classes

While you don’t need to have professional child care experience to start a daycare business, having some understanding of early childhood development is strongly encouraged. You’ll be caring for young lives, so you need to know how to provide the right kind of support and care.

Getting a degree is early childhood education is a good place to start. You can typically find classes in-person at your local community college or online. Through this degree, you’ll gain a greater understanding of how children think and behave, and what they need in order to be properly cared for. 

Beyond that, you’ll have the skills to set your business apart from your competition. You’ll be better prepared to offer the services parents are looking for and keep them coming back time and time again.

3. Create a Daycare Business Plan

In starting any type of small business, it helps to have a business plan. Having a business plan helps you set tangible goals for your business, organize your business structure, outline your services and so much more.

In your daycare business plan, you’ll define your daycare’s mission statement, operations and procedures, staffing and budget. This business plan works to keep you on track and striving toward success. 

Consider how you want your business to be organized for you plan. Will you be solo or hire staff? How will you secure funding? Will you offer services beyond child care (like tutoring)? For help in creating your business plan, check out this detailed guide from the U.S. Small Business Association .

4. Find a Location for Your Daycare

If you plan on running your daycare out of your home, this step should be pretty straightforward. If not, you’ll need to find a location for your child care facility.

Many recreational centers, churches, local businesses and even schools have space available to host a daycare, typically for a monthly fee. Search online, in your local newspaper and within your network to find options in your area. 

Once you’ve found a good fit, you need to check your city’s zoning laws and licensing guidelines to make sure your chosen location is compliant. That way you can avoid some legal headaches down the road. 

Ideally, you’ll need to find a location that’s centrally located, easily accessible and child-friendly. Consider what children and their parents will be looking for in a child care center. You might not find the perfect option, but you can make it work with a little TLC.

5. Get Insurance

Most daycare centers need several types of insurance in order to keep children (and their businesses) protected. These policies typically include liability coverage, property, workers’ compensation and business insurance.

Not sure what type of insurance you need? You can always check with your local child care provider licensing office for guidance.

6. Seek Out Grants and Funding

As we covered already, there are certainly costs associated with starting a daycare. If you don’t have the money you need to cover your initial startup costs, you’ll need to get creative when it comes to acquiring funding.

There are many grants available to help you cover your startup costs. You might also consider taking out an SBA loan or doing community fundraising. Know that the goal is to use these funds as an investment that will yield profitable returns in your business.

Costs Associated with Starting a Daycare

There are several things you’ll need to buy or lease in order to get your business up and running for day one. These expenses include but are not limited to:

• Renting a daycare space
• Indoor and outdoor play equipment
• Art supplies
• Cleaning supplies
• Child care supplies (like diapers and wipes)
• Business laptop
• Licensing fees
• Food (for snacks/meals)
• Bottles, cups, plates, utensils, etc.
• Car or reliable transportation (optional)

You might think of some additional items you’d like to have at your daycare. Over time, you can use the revenue coming in to help cover these expenses and invest in better equipment/supplies. It’s OK to keep things simple and then scale your way up. 

7. Prepare Your Daycare Center

Once you have a location secured and the proper materials and equipment in place, it’s time to prepare your daycare center.

First, clean your facility and sanitize with an effective disinfectant. Then, take the needed steps to childproof your daycare according to the ages of the children you will be caring for. Follow this childproofing checklist for help.

Finally, set up play equipment and lay out toys. You might decide to use storage boxes to keep everything organized. You can always rearrange your layout according to your needs.

Is your daycare ready for service? Give it another once-over and you’re ready to open your doors for day one of business!

8. Draft up a Contract

As a small business owner, having a contract is always a good idea. The parents that come to your facility are essentially your clients, and you want to have a solid contract in place to protect yourself from any legal issues.

We recommend seeking out a trusted contract lawyer to draft up a contract according to your needs and unique business requirements. Your contract will then be used to outline your expectations for your clients and their children.

Here are some important questions to consider when creating your contract:

• How do you expect to be paid?
• How will you handle late payments?
• What time should parents pick up their children?
• Are there consequences for late pick up?
• What services will you provide?
• What is your policy when it comes to sick children?
• Do you offer refunds? If so, under what conditions?
• What happens if a child is injured at your facility?

Whether you seek help from an attorney or write the contract yourself, you should have a contract in place before accepting business. Once signed, you can then send professional daycare invoices to get paid by your clients. 

9. Establish Policies and Procedures

Establish policies and procedures for the families that attend your daycare and your staff. These procedures may include an emergency plan, safety procedures, privacy protocols and rules for your facility.

Having these procedures in place will help you keep the children safe and protect yourself from liability (in some instances). In establishing your policies, be sure to review your local child care licensing requirements to ensure compliance. 

10. Research Possible Tax Credits

If you’re opening an in-home daycare, you may be eligible for certain tax reductions based on the fact that you’re using your residence for business purposes. This means you can essentially write off a portion of your housing cost. This can be the case even if your daycare space serves as a family room after hours. 

11. Hire Staff as Needed

When you’re first getting started, you may just be a company of one, as you might want to save the cost of hiring unnecessary help. But over time, you may need to hire help to take care of the kids during the day.

This is especially true if you find yourself running up against the required ratio of staff to children, as outlined in your local daycare licensing requirements. Be sure to review these to make sure you have enough staff for the number of children you plan on caring for.

Also, make sure all child care staff undergo criminal background checks and provide references to ensure the safety of the children. Make your hiring decisions carefully to keep your facility safe and maintain a stellar reputation.

12. Market Your Daycare

You have your daycare set up and open for business, now how do you get families in the door? As with any small business, you’ll need to market yourself to attract potential clients.

There are many ways to market your daycare. One method is to create flyers and post them around your local community—at businesses, schools and coffee shops. You can also run paid ads on Google or Facebook to draw in families from your local area.

To establish your daycare as a professional business, consider building a website that provides more information about your services. A basic website can cost anywhere from $10 for a WordPress template and set up, to $2,000 or more for a custom design.

With a website, you can then use search engine optimization (SEO) to attract organic traffic from Google. That way, when families search for a daycare near them, your business is likely to show up in the search results.

13. Promote Your Daycare on Social Media

Another effective marketing tool for daycare centers is social media. Platforms like Facebook, Instagram and LinkedIn can be used to promote your business and draw in potential clients.

Create a business Facebook page to post more information about your daycare, collect client testimonials and keep families up-to-date with events at your daycare. You can also post on Instagram and LinkedIn, with targeted hashtags, to attract families in your area.

As your business grows, you might decide to invest in paid marketing services. A digital marketing agency or consultant can help you increase your business’s presence online, outrank your local competitors and attract new clients. 

14. Provide Top-Quality Care

The success of your daycare depends on you providing top-quality care to your families. If the kids at your facility are properly cared for, and, even better, enjoy coming to your daycare, you’re likely to attract more referral business.

Positive reviews can work wonders to attract new clients. Ask families to review your business on Facebook, Google, Yelp and other review sites to improve your daycare’s reputation in your community.

Always look for ways to improve your daycare. Ask families for feedback, invest in additional education and hire fantastic staff to make your daycare the obvious choice for families in your area. 

15. Manage Your Business Finances

Many small businesses fail due to poor money management. If you want your business to succeed, you’ll need at least a basic understanding of business accounting and how to manage your expenses.

Staying on top of your business finances is more than just tracking revenue in and expenses out. You’ll need to plan for taxes—typically around 30% of your revenue, after expenses—and make informed decisions when it comes to how you’re going to allocate your funds.

Professional daycare accounting software can help you send invoices, track revenue, manage expenses and more. It can even send reminders to parents for late payment and accept credit card payments with ease.

The more you know, the easier it will be to make smart financial decisions. Stay on top of your business finances so your business is not only surviving but thriving . 

Congratulations on taking the first step to starting your own daycare business—reading this guide! By now you have a general blueprint for how to start your own business and get up and running. 

Need more help getting started? Check out these reliable resources for aspiring daycare business owners:

• Child Care Aware of America: licensing guidelines for child care and daycare providers
• United States Department of Health and Human Services: childproofing checklist
• Early Childhood Training and Technical Assistance System (ECTTAS): child care resource guide
• Office of Child Care: list of state licensing agencies
• Child Care Resources Inc.: early educator training

Starting a daycare business can be challenging but also incredibly rewarding. The process is made easier by having a general roadmap for how to get started. Hopefully, this guide has provided some guidance on how to get started, plus inspiration for you to finally launch a business of your own.

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How to Open a Drop-in Daycare

by Charlina Stewart

Published on 22 Jan 2019

Not all parents need full-time daycare for their children. Some of them just need short term daycare every once in while so they can go to the grocery store, make a hair appointment or take a much needed break. So, instead of paying the hefty price to enroll their children in full-time child care programs, these parents opt for drop-in service.

Drop-In Daycare Location

Location can make or break any business, including a daycare. You want a location that is convenient to the clients you are marketing toward, as well as one that keeps costs affordable for you. Consider whether you want to run your drop-in day care service in your home or in a separate building.

Running a drop-in day care inside your home will limit the number of kids you’re allowed to care for at one time because drop-in child care regulations stipulate the square footage required per child, as well as the number of children each adult can supervise, but your overhead costs will be minimal.

If you choose to run your drop-in day care outside of the home, you can have as many children as the square footage of the building will allow, but will also pay more in overhead costs, which you must pass on to your clients in higher rates.

Licensing and Background Checks

All daycare facilities must obtain a license in order to legally operate. You will need to check with your state licensing agency to find out what the requirements are to run a drop-in daycare in your area. Typically, they are required to meet the same standards as full-time day care programs. For instance, like traditional programs, drop-in child care regulations require you to have adequate smoke detectors, follow certain hygiene protocols, meet building code, and adhere to other rules about location, background checks, training and business licensing.

In addition, most states have specific regulations about nap time areas, food preparation areas, bathrooms, emergency exits, children per square footage and per adult. These rules and regulations apply to both traditional daycare centers and short term daycare centers.

As part of the licensing process, you will be required to get a criminal background check through your state before opening the drop-in daycare center, and then at least every five years after that. All adults who volunteer or work in your drop-in daycare facility will also need to pass this background check that includes an FBI fingerprint check, sex registry search, and ensures that you have no history of child neglect or abuse charges. You must pass this background check in order to get your license and everyone working in your facility must pass it prior to working in order for you to keep your license.

Education and Training 

Most states' drop-in child care regulations require daycare workers to obtain specific child development training, as well as pediatric cardiopulmonary resuscitation (CPR) and first-aid certification. Although most states don't require a college degree to own or operate a day care center, you may be required to have a certain number of child-development training hours to open your doors and then participate in continuing education programs yearly in order to stay open.

Child-development training hours can be obtained through workshops in early childhood education or through local community college courses. Depending on your educational goals and past academic history, scholarships, grants and student loans could be available to help you with this process. Pediatric CPR and first-aid training can be obtained from your local chapter of the American Red Cross and can be completed in-person or partially online. Your state will probably require you to take refresher CPR courses every few years and re-certify.

Prepare to Open Your Doors

Once you meet requirements for location, code, education and background checks, the fun starts. Now, you get to set up your short term daycare environment with lots of things to keep the children happy and entertained. Your state will likely want to see that you have enough age-appropriate toys and equipment to accommodate the number of children for whom you are licensed to care. Include things like books, child-size tables and chairs, and a variety of indoor and outdoor toys. Large children's consignment sales are a good place to find bulk items at a reasonable cost.

After your final inspection, you can advertise your business to connect with your ideal customer. Consider passing out fliers and business cards at events, meeting up with mommy groups, placing an ad in your local newspaper, and putting a sign on your car or in front of your day care. Remember to build a social media presence, too, especially through Facebook and Instagram. Family members and friends can follow your social media pages, as well as provide reviews that vouch for your integrity.

Your advertisements get the word out, but relationships are what will help your center thrive. Once you build your clientele, the word about the quality of your drop-in service will spread quickly, especially maintain your reputation by the loving quality of your care, following regulations and providing children with a safe, clean and comfortable place to spend their days.

Everything You Need To Know

Home Daycare Business Plan

Sure, starting a home daycare seems simple enough – it’s just babysitting, right wrong.

Running an in-home daycare is running a business and you need to treat it as such. As a sole proprietorship business, you are liable for the well-being of every single person that sets foot on your property.

As with any new business, you need to have a detailed outline on how it’s going to run. This is known as a business plan. You’ll use it to figure out how you’re going to run your business and more importantly, make money. 

If you haven’t had a chance to check out the  Getting Started Page , go do that now.  You will need to start gathering information about specific licensing requirements for opening a family child care business in your area. Plus, you will want to get started on some of the paperwork for your business license, police records, and first aid. 

GRAB A COFFEE

Because we are going to cover a ton of information, jump to a section, business summary.

Who Are You? | What do you plan on doing? | What is going to make you stand out?

FINANCIAL PLAN

Rates | Start-Up Costs | Record Keeping | Payment Policies | Taxes

OPERATIONS PLAN

Designate Your Home Daycare Area | Develop a Parent Handbook | Schedules | Quality Control Checks | Interviewing Parents

MARKETING PLAN

Your own website | Flyers with tear off tabs | Word of mouth | Social Media | Newspaper Ads | Online Daycare Advertising Sites | Craigslist, Kijiji | Put a sign on your yard 

Let’s get started!

Home daycare business summary.

Start by briefly summarizing the following: who you are, what are you planning to do? What will set you apart from other child care businesses? You will use this summary over and over again during the planning process.

So NO CHEATING! Don’t skip this step.   

Who are you?

Simply state who you are and why you are qualified to open a home daycare. Don’t worry if you think you aren’t qualified. You don’t need a background in early childhood education to run an in home child care business. Chances are you are more qualified than you think, so take a deep breath and just go for it. The following are a few examples:

I am Liz, a stay at home mom of 2.

I am Sally, a preschool teacher taking a break from teaching to stay at home with my kids.

What do you plan on doing?

List the types of services you plan on providing. Think about who your ideal client would be and what services they would need. 

Ask yourself the following questions to identify your ideal client :

What ages of children do you most want to have in your home daycare?

Would you rather have sets of siblings?

Do you only want to take on full time children or do you prefer only part time children?

Take some time to really brainstorm your perfect home daycare situation and then write a summary.

For example:

My ideal clients would be a non-shift worker whose contracted hours are 8-5.  The children would be between ages 1-4.  

My ideal clients are teachers, who do not need care in the summer. The children would be between the ages of 1-4. 

Also think about the services you don’t want to offer. If drop- in care doesn’t work for your family, don’t offer it. You will have moments when you are tempted to change your services for parents, but adjusting services based on individual cases will only hurt your business. Make sure you are very clear on what you want to offer and what you don’t.  

Here are some examples:   

• Provide child care services for children between the ages of 1-5
• Provide Fulltime, part-time, drop in services
• Provide Before and after school child care 
• Provide 24 hour care for shift workers

What is going to make you stand out?

Try to find something that will set your home daycare apart from other comparable businesses in your area. Now don’t go all politician here and make some wild and crazy promises that you won’t be able to keep. It can be as simple as a weekly craft or newsletter. Specializations could include: 

• Do you speak another language?
• Do you have a special talent?  (Music, Art)
• Will you provide transportation?
• Will you cater to shift-workers who work odd hours?
• Will provide tons of outdoor time?
• Will you be an allergy friendly house?
• Will you serve only organic food?

We will go over more market research in the following section, but start asking around in local Facebook groups and social media groups for ideas. What are local parents looking for in home daycares?  You might be surprised by their answers. It can be as simple as wanting a home daycare to be open until 6 pm. Or something different like a home daycare that provides pet sitting. 

Now, put it all together in a brief summary. It doesn’t have to be perfect. At this point you can cut out what you don’t want to include or add anything extra you think will make your business stand out.  

Here are a few examples 

I am Liz, a stay at home mom of 2.  Liz’s home daycare is located in the Willowbrook area and provides care for children 1-6 years old.  We spend our days, exploring local parks and making crafts.   

I plan on opening a home daycare in the Berryhill area, with transportation services to Berryhill elementary and Markhill elementary.

Home Daycare Financial Plan 

In this section, we’re going to work out how much money you need to charge your clients in order to turn a profit. Let’s face it, having positive cash flow is kind of the point and if this venture isn’t going to provide you with the extra cash flow you want, what’s the point? And although there aren’t a ton of start-up costs for opening a home daycare, there are operating costs that can cut into your profits. Here we will create a budget for expenses, and touch on tax planning.    

Sure, we would all love to charge the highest rate possible. Who doesn’t want to make a fortune at their home business? but that’s not always feasible. In order to attract clients, you will have to charge rates that are competitive with other child care services in your area. Remember, that being a child care provider is a lot of work. You will be working long hours, with few breaks So, don’t undercharge yourself, either.

So how do you determine what to charge?

Start by conducting some market research about your competitors. 

You don’t need to break out the excel sheet but you should gather details about your other child care providers in your area. Start by calling different home daycares and child care centers to find out their rates and what they offer. After a few, you will start to see a general average rate for your area. 

Then ask yourself, does any daycare stand out more than the others? If so, what makes them unique? Are they charging a premium?  

Now, go back and revisit your business summary. Did you identify something that will make your home daycare stand out?  Did any of the home daycares you called offer something comparable? What were they charging? You may need to expand your research beyond your local area to find a comparable home daycare.  

Types of rates

Your rates should reflect how you plan on running your home daycare. If you haven’t thought about this yet, it’s a good time to start. Ask yourself if you would prefer to have your number of kids on a monthly basis or have a few full-time and a few part-time kids.  

Monthly Rate

Charging a monthly rate is fairly straightforward. This is a set rate for the whole month regardless of how many days are in the month. This rate should be a set amount and not fluctuate.  

Part-time rate 

You can do a few things with part-time rates. Charging a set rate for a certain number of days per week is one option. Another option is charging for a certain number of days per month.

2 days a week is x amount

3 days a week is x amount

Or 10 days per month is x amount

You’re only allowed to have so many kids in your care, so if you plan on taking on part-time kids make sure that it works in a way for you to be able to fill the other days. 

Sally comes three times a week only on Monday/Wednesday/Friday. You can then offer care to another child on only Tuesday/Thursdays. Although this system is more difficult to make work it is possible.   

Margo comes 10 days out of the month. Her parents let you know a month in advance what those 10 days are. With plenty of notice, you can fill those extra spots.   

Frankly if you want to have a steady income, only take on full-time kids. Or only take on 1-2 part-time kids in addition to 1-2 full-time kids.  

If you plan on having a drop-in service, make this your highest per-day rate. Drop-in’s can be a lot of work.  Often these kids are not used to daycares. 

Don’t expect to be at full capacity right away. Budget for 75% to 85%. 

Figure out your break-even point. Is there a minimum amount that you “need” to make it worthwhile for you to run a home daycare. For some, this will be $2,000 or other it will be $500.  

Say you need to make $2000 per month and through your research, the average price for childcare in your area is $750.  

You would need to take on at least 3 full-time kids to make your $2000. 

Desired income + monthly expenses / Your rate = How many kids you need to take on.   

***Important this calculation does not take in consideration that you still need to pay taxes on this and in Canada, you need to pay into the Canadian Pension Plan twice.  (See more on  Using Your Home for Daycare ) If this is a concern for you, adjust these amounts accordingly.  

Now if you are just running a home daycare to make some extra cash, this might not be such a concern to you, but remember your time is still valuable.     

Remember, if you are able to add more value to your services you should be charging more. Also, keep in mind, you should increase your rates every year to keep up with increases in the cost of living.    

Start-Up Costs

Although there are not a ton of start-up costs to running a home daycare, there are a few that will have to come out of your pocket before you can take on your first client. Here is a list of possible startup costs for opening your home daycare:  

• Business license
• Licencing fees (If required)
• First Aid Courses
• Police Checks
• Additional Home Insurance
• Additional Auto Insurance
• Operational Supplies  (Check out The Ultimate List of Home Daycare Supplies)
• Marketing/Advertising costs

Record Keeping  

Record keeping is so important when running a small business. Don’t fall behind on this.  Set aside time each day to record your attendance and some time at the end of the month to update your expenses and income reports. Get a binder or file folder to hold all your important documents.

You should record your attendance daily.  Keep a record of who attended each day, when they were dropped off and picked up. Depending on the type of services you offer the number of hours you work could vary daily or stay the same. Regardless you will need to know this for tax purposes.  

Record every time someone pays you. Use an Excel sheet, an online accounting program or a notebook.  

Let’s face it no one becomes a millionaire running a home daycare. You want to save as much as possible of what you do make.  And one way of doing that is paying less in taxes. Make sure you save your receipts and record all your expenses. The more you can deduct the less tax you will have to pay at the end of the year.    

Here is a list of typical operational expenses for home daycares:

• Supplies for activities
• Curriculum materials 
• Fees (e.g. licensing)
• Maintenance
• Office supplies
• Professional services (e.g.lawyer or accounting)
• Accounting Software
• Supplies (cleaning, kitchen and teaching)
• Telephone and Internet
• Utilities        

Payment Policies

How are you going to make sure you get paid .

You can require payment either monthly, bimonthly or weekly .  Also include how far in advance you want to receive payment. The first of each month is commonly used. However, you can choose to require payment two weeks in advance of services. You can match your payment schedule with the parents’ salary payment and get paid the same day they do.  

Decide how you are going to handle drop-in payments?  Will you require payment in advance? 

Are you planning on charging late fees?  If so, when do you plan on requiring payment.

For example:  

Payment for late fees are required within 24 hours from the occurrence or subject to termination of care

Payment for late fees will be added to next months payment.  

Inform parents what forms of payment you accept, most common are cash and Email Money Transfer (EMT).

You should state that fees are nonrefundable and services are subject to termination if not paid on time.

Develop a system for yourself to ensure you’re on top of getting paid and nothing gets missed. You don’t want to be working for free.  

For example you can make a policy that part-time parents need to have their required hours submitted by the 1st of every month. You can send a reminder email the week before to ensure you have enough time to fill any empty spaces.

You can you also use an application like Waveapp to create recurring invoices, send payment reminders and generate payment statements.  This program is free. 

What if a parent doesn’t pay?  

You need to decide before opening what your policies will be on non-payment. Unexpected bills and extenuating circumstances do come up for parents. However you have to remember you’re running a business here and you deserve to be paid. Simply put: don’t provide services without for free.   

The last thing you want is a big tax bill at the end of the year. Decide on how you plan on address paying your taxes. The easiest way is to put a little away each month in a savings account. You can always set up an automatic transfer, so you don’t forget.

Get a file folder to keep all your receipts in one place.   

Decide whether you are going to do your own taxes or have an accountant file your taxes for you.  If you go the accountant route, look for an accountant who is knowledgeable about home daycares. 

*Keep in mind the legal structure of most home daycares is that of the sole proprietorship. On the tax front, the business’s income and expenses are included in the tax return of the owner. Since the business is not legally separate from its owner, it is not required to file separate tax returns.

  Home Daycare Operations Plan

Your operation plan defines the nitty gritty details how exactly you are going to run your business.  While there are regulations that home daycare have to follow, you have a lot of freedom in how you run your home daycare. You get to choose your hours, days off, policies and even which children you take in.  

Designate your home daycare area

If you have not by now, figure out all the areas of your house you will be using for your home daycare. You should include a dedicated area play area, sleeping area, eating area and bathroom. Calculate the square footage and keep it handy for your taxes.  

Now start addressing your supplies needs for each area.  

You might already have everything you need but check out  The Ultimate List of Home Daycare Supplies . This post goes into detail on everything you possibly can think of to run a home daycare.

Develop a Parent Handbook – Policies and Procedures

If you want your home daycare to run smoothly from day one, you need to figure out your policies and procedures. While this sounds like a daunting task, it will be incredibly helpful when it comes to communicating your expectations with parents.       

A Parent Handbook is an easy way to share your policies and procedures. It’s an informational guide for parents outlining everything you expect from them. What they should expect from you, payment information, behavior policies and emergency information. A handbook sets you up for success by getting everyone on the same page, but it’s up to the parents to read it.

Hours of Operation

What hours do you want to work? 

What days do you want to be open?

Keep in mind the average person works 9-5 Monday through Friday and must commute to and from work. Yet there still is a market for part-time, overnight or even care on weekends.

It’s tempting to change your hours in order to sign a new client. But over time your work- life balance will suffer and you will end up burning yourself out.

Contracted Hours / Days

  You should insist on each child having contracted hours. Contracted hours are the time/days the parents will be dropping off and picking up their child. For example: If you have a part time child that comes on 3 days a week on Monday, Wednesday and Friday 9am to 5pm, you can schedule other part time children around those days to fill your Tuesday and Thursday time slots. If the clients need to change their contracted three days to a different three days, in your contract, specify that you can refuse such changes due to a conflict and have the right to end the contract.  

Contracted hours allow you to schedule activities. You will know approximately when each child will be coming, and you can plan around drop offs and pickups.

While late drop off and picks happen, you want to make sure that the parents know you are serious about open communication. Be sure to ask them, if they are going to late that they call or text you to let you know. You will soon find out that maintaining a schedule and following a routine is important.

Holidays   

What holidays do you want to observe?

It’s widespread practice for clients to pay regular fee for civic holidays. For example, your monthly rate is $800, so you would not give a discount because you’re closed for a holiday.

You can choose to either charge parents for your vacation days or not. But, you must make this completely clear to clients before they sign your contract.  

Be sure to state that if the parent decides to take a holiday or day off and pull their child out of your care for that day, they still pay your full monthly fee. They will not receive a refund or credit.  This is important because often you put out your own money for food beforehand. You don’t want to be losing money because a parent took a Friday off. Your time is valuable and there is a cost to holding a spot for them.        

Some providers also include a few paid personal days in their contract. This is 2-3 days that they would elect to take of during the year the parents would pay for. For example, you want to take next Friday off for a funeral. You would inform your parents that you will be taking a personal day. This would be one of your paid days off. This saves you the hassle of issuing refunds or credits for having to take a day off.

Pickup and Drop off Policies

Nothing is worse that a parent drop off a child early and you’re still in your bathrobe. Or you need to drop your kid off dance class and a parent hasn’t pick up their kid yet.

Most parents are good about picking up their children on time. Unless an emergency arises, you shouldn’t have a problem. But it’s always a good idea to have something written in your handbook about early/late drop offs. This is primarily so that you are not being taken advantage of. The chances that you are going to have to charge a late fee is slim, but it is a good idea to put a monetary value on being late such a $5 fee for every ½ hour the child is in your care past their contracted hours. Most large daycare centers have similar policies and strictly enforce them.  

Once a child is in your care, you are responsible for who you release that child to. You need to have it written in your handbook and contract, who is allowed/ not allowed to pick up a child. It is best to get this in writing, so in the case of a mix up you can prove you have done your due diligence. Specify that you will be asking for photo ID before releasing a child to anyone you have not met in person. 

Restraining Orders   

In the event of a court ordered restraining one parent from a child, you need to have a legal copy of the restraining order and a written note from the custodial parent. Without these items on file you can’t prevent the non-custodial parent from picking up the child. You don’t want to be in the middle of a messy divorce. 

Provider’s Sick Day Policy 

If you need to close on a given day because of illness, you need to decide if you will provide a refund for the day.  Most home daycares do not charge customers for their own sick days. Or have a number of sick days outlined in their contract.  

Illness Policy

You wouldn’t invite someone over to your house that had been up vomiting all night, so don’t do it with your home daycare. Parents will test you on your illness policy, but you need to stand firm. You may have to remind parents that bringing a sick child into a dayhome spreads the illness to not only the other children in your care, but also yourself, potentially rendering you unable to care for their child.  

Specify the symptoms you consider a child to be too sick to attend. Make a list of symptoms, then specify when a child is safe to return. Generally, a child should be well enough to take part in normal everyday activities.

What are you going to do when sickness develops during the day?

Outline what you expect parents to do. For example, will you call them and expect them to come pick up their child immediately? 

Ask parents to let you know as soon as possible if their child won’t be attending due to illness or for any other reason. This will allow activities to carry on as scheduled and help you know how many children you need to prepare meals for.

Medicine Policy and Procedure

Get parents to provide written consent before you administer any type of medicine. Parents should label all medicine with the child’s name, dose and dosage times before you administer anything. You should specify that you won’t administer any medicine not complying with the policy. 

Example of medicine policy:

Prior to administering any type of medicine to your child(ren), I require written consent by a parent. All medicine must be properly stored in a container labeled with the child’s name, dosage and times to be administered.  Medicine supplied in unmarked, unlabeled containers and/or without written consent will not be administered.   

Medical Emergencies

Minor bumps and scratches are inevitable. You should specify how will you handle minor injuries. Will you administer first aid, then let the parent know at the end of the day what happened? Or will you call the parents right away?

What are you going to do in case of an emergency injury or illness? Specify who is responsible for the cost of any emergency medical treatment/ transportation. 

Emergency Plan and Evacuation Plan

Provide parents with your emergency plan.  Where you are going to be and how to contact you.  What evacuation sites you are going to be at incase of fire, earthquake, flooding etc.

Behavior policy

  Give a brief summary of how you are going to handle children’s behavior. For example, do you plan on using the “time-out” method?  If a behavioral issue continues without resolve, how do you plan on handling such situations? Think about at what point would you want to end a contract over a behavioral issue.  It’s unfair to the other children in your home daycare if you spend your whole time dealing with one child.

Clothing Policy

Clothing can become a big issue if you don’t specify what you expect. Make sure parents know that you want children to be dress in comfy clothing that can get dirty. You don’t want to be responsible for any stained or ruined clothing. Older children should be able to operate their clothing themselves, without your help. Insist on at least one spare change of clothes regardless of the child’s age. You want to keep children happy and comfortable. Younger children should have at least two changes of clothing (including socks).  

Kindly remind parents that if outdoor apparel is not supplied, then everyone has to stay inside.   Often this can happen in winter time because of a lack of snow pants, hats or mitts. You can suggest that parents leave an extra set at your house to prevent this from happening.  

Meals and Snacks

Provide parents with a schedule of meals and snacks. Inform them if they drop off after a scheduled meal time, you expect the child to have eaten. You don’t have time to supply meals on demand.

Are you going to allow a child to bring food from home? Often parents will sneak snacks into a kid’s backpack,  in case their kid gets hungry. But this can cause conflict between kids and issues for you if another child that has allergies.  For special occasions like birthdays, you can decide on a case to case basis if you are going to allow special treats from home.   

What are your procedures for storing breast milk? Put in place a procedure for yourself, so that you never run out of breast milk or formula.  An example of this would be that you require to have at least half a can of formula on hand at all times. Are you going to be responsible for sanitizing the bottles? or do you expect parents to supply sanitized bottles every day. 

Food Allergies

You need to decide if you will allow children with food allergies to attend your home daycare.  

Can you guarantee your home daycare is safe from allergies? 

Are you comfortable administering an EpiPen? 

Decide which food allergies you will allow.  An allergy to mangos is a lot easier to deal with than a peanut allergy.  Also specify any allergies where parents need to supply the food. Such as in the case of a gluten allergy, you can ask the parents to supply bread, dry pasta or crackers.  Specially foods can be expensive, and you don’t want to blow your whole food budget on one child. 

Potty Training Policies

At one point in your home daycare career, you are going to have to assist with potty training. The key word here is “assist” with potty training.  Communicate with parents that it’s not your job to potty train their child. If they have a method that has been working for them, then you’ll try to continue with that method.  However, their child must wear clothing at all times and you’re unable to follow a strict timed potty schedule. (ex. taking a child to the potty every ½ hour). Children need to be able to pull down and up their pants themselves. Suggest “User friendly” clothing, such as shorts and pants with elastic waist.  Kindly mention if you run out of dry clothing, that you will be calling and expecting them to drop off more. 

Termination Policy

Decide on how much notice you need from a parent before they can terminate their contract. Two weeks’ notice is common, but some home daycares require a month notice.

Outline reasons to parents why you would to end a contract.

Here are some suggestions,

• Failure to provide payment for services
• Routinely late picking up their child
• Failure to complete the required forms
• Lack of parental cooperation
• Failure of child to adjust to the home daycare after a reasonable amount of time
• Physical or verbal abuse of any person or property
• Lack of compliance with handbook policies and procedures
• Serious illness of a child

Other policies and procedures you may want to consider including:

Indoor activities  

What activities are you planning to engage in, circle time, reading, singing.  Give parents a brief summary of daily activities you plan on doing.  

Outdoor activities

How much outdoor time are you planning on having?  Include what your weather limits are. How hot or cold do you consider to be unsafe to play outside?

Napping / Quiet time procedures

Give parents a brief outline of how you are going to handle napping/quiet time.  Do you require all kids to nap? If not, what do you expect from children during quiet time.  Remember this is probably the only time you will get a break during the day. 

Are parents responsible for bringing their own Pack and Play or are you providing beds?

Immunizations Policy

Consider if you need all children to be immunized/or not to attend your home daycare. This is a personal preference. 

Transportation  

Many home daycares provide before and after care for school aged children.  This sometimes includes transportation to and from school in their own vehicles.  Also, some home daycares offer field trips to local attractions such as a library, park or zoo. If this is something you want to provide consider the following:

Do you have a vehicle that could adequately fit all the children?

Do parents need to provide car seats?

What schools are you willing to provide transportation to?

Who is going to pay for admission to attractions?

House rules

Providing a set of house rules is a wonderful way to express your expectations of a child’s behavior.  For example: you expect no jumping/climbing on couches.  

Toys from home

Are you going to allow toys from home? Often these items cause fights among the other children.  An exception to this should be a comfort toy/blanket for napping. 

Two-week trial period

You can choose to implement a two-week trial period for both parties. This allows adequate time for a child to adjust to your home daycare.  At the end of the two weeks, either party can terminate the contract for whatever reason they see fit. Trial periods allows you to see how a child fits into your home daycare dynamic. 

While you can run a home daycare without a schedule, you will save yourself a ton of grief if you have at least a guideline of activities.  You can also include this in your parent handbook to give parents an idea of your daily activities.   

Kids thrive on routines and while you don’t have to have a strict routine, a schedule can help children navigate their day and ease the transition from one activity to the next.  For example, they will get to know that after lunch they go for nap.

Start by setting a time for breakfast, lunch, and snack time s.  Then think about naptime and activities. 

Quality control checks (Cleaning)

Kids are sticky, messy and germy but in a good way. Don’t forget, this is not only your place of work, but also your home and the last thing you want is to be sick all the time. If you take a sick day, you most likely are not getting paid so you should be motivated not to take too many. While you don’t have too much control over what kind of germs enter your home, you can control the spread of it.  

Put in place a cleaning routine. Just like any public washroom, keep a cleaning checklist.  There will be things that you have to do everyday. And other things you will only have to do once a week. Make your checklist as detailed or not as you feel like. 

Items to include:

Bathroom,  Floors,  Bedding &  Toys

Interviewing Parents

The interview process can be a bit scary when you first start out.  But remember you’re also interviewing them too.  

Never commit to taking on a child full time until you have met them.      

For any new prospective client, suggest a “meet and greet.” What is a meet and greet?

A meet and greet is an opportunity for prospective parents to come into your home and check out the space.  It gives parents time to ask you any questions and voice any concerns they may have. A meet and greet also gives you a chance to observe a child’s behaviour and ask them any questions you may have. Such as is your child a bitter? Has the child ever been in a home daycare before.  If so, why did you leave the last home daycare.   

Don’t be afraid to say “no” to a parent if you don’t think their child would be a good fit. You’re better off to be honest and up front. One child can completely change the dynamic of your home daycare and cause you and the other children in your care undue stress.  If you are unsure, then suggest a two week trial period before committing to a contract. Revisit the section of your business summary where you outlined who your ideal client would be. Be picky.  

Now, it’s time to get your first client.  

Home Daycare Marketing Plan

When starting a home daycare business, you don’t just sit there waiting for families to knock on your door. You need to get your name out there.   

If you’re just getting started, marketing your services may not be your strongest skill. Thankfully, there are many ways you can easily advertise your home daycare business.

Here are some ideas for home daycare advertising to give potential customers a better sense of your services.

Your own website

This is perhaps the most inexpensive way of reaching out to parents. A website should introduce your daycare by highlighting the basic information like name, size, location, and the age range you accept. Secondly, you should come up with a business name and logo that stands out from other family daycare services. Obviously, the website should sum up the services you offer.  And you can even outline your policies and procedures. Also list some features like meal/snack options, size of your space, outdoor play setup, fencing, and more. Besides that, you should include short endorsements from past customers so that parents can know their children will be under constant supervision.   

Flyers with tear-off tabs

This is the easiest home daycare marketing strategy. You should make colorful flyers (red, yellow or blue) that show the contact number, email, and services offered. Needless to say, they should be child-friendly – include some pictures of smiling happy children or clip art. It’s worth mentioning that you should not list the price on the flyers. This is because you want the parents to choose a family daycare based on the services, not price.  Flyers work best when they are posted in locations most likely to reach your target market. Where do parents frequent that they may see your ad? The best place to distribute them is in community centers, coffee shops, and libraries.

Word of mouth

Tell everyone about your new venture. You can notify your neighbors, family, co-workers, and friends. And if you already have clients, ask them to recommend a friend.

Social media

The strategy you use on your social media marketing should reach families looking for daycare centers. You should make Facebook page for special announcements, reminders and examples of fun activities. Most parents will appreciate a platform where they can see and share photos of their kids activities. But keep in mind not all parents what to have their kids faces on social media.  Make sure you have a photo release form signed before posting any child’s face.

Other social media platforms you can use include Instagram, YouTube, and Pinterest.

Newspaper Ads

You should include information like your approximate location, opening and closing hours, and anything else that makes your business special. For best results, you may want to place your ads on smaller local papers rather than a big display ad. Of course, it pays huge dividends if you place an ad in the childcare section. It’s important that you inquire on the details allowed, but don’t forget to include the brand name and contact information.

Online daycare advertising sites

Online advertising sites make it easy for parents to search for services in a specific area. They give information on who you are and the services you offer.  Most advertising sites charge a fee to post. If you choose to use one of these sites, always emphasize on any information that makes your business stand out from the competition. And include photographs to showcase your home daycare to prospective clients.

Craigslist, Kijiji

This type of site is commonly referred to as the “hunter’s dream” – you’ll find everything you want here. Even better, you can list your childcare websites. There is a separate section for baby-sitters and daycare providers.

Put a sign on your yard

This will help potential clients know who you are and what you have to offer. All the parents living close to you will be aware of your daycare and will probably mention the same to other parents. These signs can be customized to suit your needs. Be sure to include your business name and contact information.

The above advertising methods will give you an opportunity to toot your own horn. As you embark on the journey, highlight everything that makes your business different from the competition. For best results, do some research to understand the services your competitors are offering. Be creative with your marketing strategies, and you’ll have a full house in no time.

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Student Loan Bills Are Dropping Next Month for Many, but There’s a Hiccup

The Education Department has not finished recalculating payments for millions of borrowers enrolled in SAVE, forcing loan servicers to put many loans into forbearance.

By Stacy Cowley

On July 1, millions of federal student loan borrowers will see their monthly bills drop — some by as much as half — as the Biden administration’s new income-driven payment plan , known as SAVE, takes full effect.

But first, the government and its four loan servicers have to resolve a major hiccup.

Starting next month, borrowers enrolled in the SAVE plan with only undergraduate loans will have their monthly payments capped at 5 percent of their discretionary income, down from the current 10 percent limit. (Graduate school loan payments will remain at a maximum of 10 percent, while people with a mix of undergrad and graduate loans will have a weighted payment.)

The loan servicers are relying on the Education Department to send them the new loan amounts for every borrower. But the department has not yet finished making calculations, according to three people familiar with the process, who asked for anonymity because they are not authorized to speak about the issue publicly.

To buy time, the department instructed its servicers to place borrowers with payments due in early July into an administrative forbearance for the month, which means no payment from them will be required.

More than eight million borrowers have enrolled in the SAVE plan. Many received notices this month saying that their account had been placed into forbearance, sparking widespread surprise and confusion.

“I was freaking out a little bit,” said Iván Barragán, who got a letter from his servicer, MOHELA, last week. “I thought I had done something wrong. Then I quickly went on Twitter and saw that a bunch of people were also getting the notices.”

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Canada announces new pilot programs to support caregivers and Canadian families, intends to make the caregivers program permanent

From: Immigration, Refugees and Citizenship Canada

News release

Caregivers from abroad are invaluable to Canadian families. Their hard work makes a difference in the lives of those they care for, including children, seniors and persons with disabilities.

June 3, 2024—Toronto— Caregivers from abroad are invaluable to Canadian families. Their hard work makes a difference in the lives of those they care for, including children, seniors and persons with disabilities.

As the Home Child Care Provider Pilot and the Home Support Worker Pilot come to a close later this month, the Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship, today announced new, enhanced caregiver pilots. This will allow caregivers to continue to come to Canada, as we work toward making the caregiver pilot programs permanent.

The new pilot programs will provide home care workers with permanent residence (PR) on arrival in Canada. They will also be allowed to work for organizations that provide temporary or part­time care for people who are semi-independent or recovering from an injury or illness. This new pathway means that caregivers can more easily find proper work with reliable employers and have clear, straightforward access to permanent resident status as soon as they arrive in Canada.

Through these new pilot programs, candidates interested in working in Canada’s home care sector will be eligible to apply if they meet the following criteria:

• attain a minimum of level 4 based on the Canadian Language Benchmarks (CLB)
• hold the equivalent of a Canadian high school diploma
• have recent and relevant work experience
• receive an offer for a full-time home care job

These new PR on arrival pilot programs mark an important step forward in Canada’s efforts to meet the evolving home care needs of its diverse population. More information will be available before the full launch of the pilots, including full eligibility criteria and details on how to apply.

“Caregivers play a critical role in supporting Canadian families, and our programs need to reflect their invaluable contributions. As we work to implement a permanent caregivers program, these two new pilots will not only improve support for caregivers, but also provide families with the quality care they deserve.” – The Honourable Marc Miller, Minister of Immigration, Refugees and Citizenship

“After hearing stories and feedback from caregivers across Canada, I am proud that we are taking concrete action to create policies to support the caregiver community. Generations of women and men have advocated for this important pathway and have cared for our families and loved ones here in Canada. Now is the time to return the care they deserve." – The Honourable Rechie Valdez, Minister of Small Business

Quick facts

In June 2014, there was an inventory of over 60,000 persons for the Live-in Caregiver Program. Today, less than 1% of that Live-in Caregiver Program inventory remains.

As part of the 2024–2026 Immigration Levels Plan, Canada will admit over 15,000 caregivers as permanent residents.

As of April 30, 2024, nearly 5,700  caregivers and their family members have become permanent residents since the launch of the Home Child Care Provider Pilot and the Home Support Worker Pilot in 2019.

Associated links

• Existing Canadian caregiver programs

Contacts for media only:

Bahoz Dara Aziz Press Secretary Minister’s Office Immigration, Refugees and Citizenship Canada [email protected] Media Relations Communications Sector Immigration, Refugees and Citizenship Canada 613-952-1650 [email protected]

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Suburbanization Problems in the USSR : the Case of Moscow

• Référence bibliographique

Gornostayeva Galina A. Suburbanization Problems in the USSR : the Case of Moscow . In: Espace, populations, sociétés , 1991-2. Les franges périurbaines Peri-urban fringes. pp. 349-357.

DOI : https://doi.org/10.3406/espos.1991.1474

www.persee.fr/doc/espos_0755-7809_1991_num_9_2_1474

• RIS (ProCite, Endnote, ...)

Galina A. GORNOSTAYEVA

Moscow University

Suburbanization Problems

in the USSR :

the Case of Moscow

Suburbanization processes typical to cities in Western Europe, the USA and other countries are not observed in the USSR or they are distorted to such an extent that they may not be compared with existing standards. This states the question how Soviet cities-succeeded in escaping this stage of urban development. In order to answer this question, we should first summarize the main aspects of Western suburbanization.

Firstly, it is well known that the urbanization processes are linked to structural changes in the economy. Thus the transition from the stage of concentration to this of suburbanization is associated with industrialization, and the transition to the third stage - déconcentration - is related with the rapid growth of employment in the non-industrial sphere. Secondly, a suburbanization of economic activities can be distinguished. It applies in the first place to the building and iron- working industry, transports, engineering and chemical works. These are polluting and requiring extensive areas. This suburbanization of industry is caused by the following factors: rising demand for land from firms ; worsening of transport

tions in the inner cities ; demand for lower land costs and taxation levels in suburbs ; rapid growth of road transports; state policies regulating the growth of large cities ; migration of the labour force to the suburban zones. Scientific and educational activities are also transferred from the centre to the suburbs.

The third important aspect of suburbanization applies to the population. In the suburbs two opposite flows of population meet ; one is centripetal, coming from non- metropolitan regions, the other is centrifugal, coming from the central city. The reasons for the migration to the suburbs are as follows : declining living standards in large cities (overcrowding, slow housing renewal, environmental problems, etc.); growth of motorization of the population, development of communications (telephone, telex, fax, computer) ; intensifying decentralization of working places ; lower land prices in the suburbs ; state support for the intensification of real estate development in the suburbs. The above-mentioned factors and reasons for suburbanization are altered in the Soviet cities. Let us explore them, by taking for example the largest one - Moscow.