business plan for family day care

How to Write a Business Plan for a Daycare: Complete Guide

• January 30, 2023

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Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your daycare, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your daycare business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it’s the summary of the different sections included in your business plan.

Why do you need a business plan for your daycare?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or private grant

How to write an executive summary for your daycare?

The executive summary of your daycare business plan should include the following important information:

Business Overview

Introduce your company (its name, its mission) and the history behind it: why did you decide to create a daycare in your area today? Why you? 

Also, that’s where you should expand on the business: where will the daycare facility be located? How old are the children you target? How many children will you be able to take care of? What are the amenities (classrooms, playground, cafeteria, etc.)? 

Market Overview

Provide here a deep market analysis that backs your decision to open a daycare business in your area today. Why would your business succeed given current market conditions? 

For example, the market analysis should include information like: what are your competitors in the area? What are their characteristics, strengths and weaknesses ? Who are your target audience (parents and children)? Is that in line with the demographics in your area?

Management & People

Who is the management team? What is your/their experience in the daycare industry?

Financial plan

What is your expected revenue and profitability for the next 5 years? When do you expect to break-even? Simply include here a chart of your key financials (e.g. Revenue, Gross Profit, Net profit )

Funding Ask

What loan/investment/grant are you seeking? How much do you need? How do you intend to spend the money?

Daycare Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Daycare Business Overview

The business overview section of the daycare business plan summarizes the basics of your facility, including the background information, business model, services, target audience, and legal structure. 

a) History of the Project

When you launch a daycare business, you want it to grow and even become the best in the region if possible. One small element that can catalyze your company’s growth is its history. You don’t have to exaggerate the information here, but try to include useful details that will make your daycare business stand out. 

For a business as sensitive as daycare, trust overrides anything else. So, make sure to include in your business plan your experience and passion for children to demonstrate to investors you are qualified and the right person to successfully run a new daycare facility.

Also, flesh out the history behind the project: why are you starting a daycare now? For example, you may have noticed a lack of child care services for toddlers and infants in the city.

b) Business Model

Next up is the business model. This is the revenue-generating plan that identifies how your business operates. A daycare business model should be succinct and address specific things about the business. 

For instance, is it a commercial daycare facility or a family daycare? Is it an independent facility or a partnership? And should you opt for a daycare franchise? 

Keep in mind that daycare facilities vary by the target age group. So, you can opt for a childcare center, a family daycare, a kindergarten/pre-school, or a nursery school.

c) Daycare Services

It takes a lot to raise a child. So, be clear on the services you want to offer in your newly founded daycare facility. The quality of services will make your business more attractive. But an even bigger factor will be the type of services you provide at the facility.

Indeed, a lot happens inside a daycare facility, from hands-on learning (classrooms, private tuition) to field trips, games and community events. 

d) Pricing Strategy

Age is a key factor when setting the prices of your daycare services. On average, parents across the US pay about $9,400 per year on child care per child. Of course, the actual figure will vary based on a number of factors, but this is a great starting point when getting into the industry. 

An accurate pricing strategy can help you outshine your biggest competitors. However, don’t forget that setting cheaper prices isn’t necessarily the best strategy, just in the same way overpriced services may turn off potential clients. 

e) Target Audience

Daycare centers are so named because they are about a child’s well-being. However, the final decision rests with the parents, who must buy into your idea and long-term vision for the facility. 

For this type of business, you have a definite target market . And all you have to do is ensure your facility is closer to a busy neighborhood with many children. Find out if the families truly need child care services, why they need these services and the children’s average age. 

Finally, make sure your services are aligned with your target audience. For example, you wouldn’t necessarily succeed with a daycare operating 9am – 4pm in an area where parents typically work long hours in the city and need time to commute back to their neighborhood to pick up their kids.

Same goes for pricing: if you offer high-quality expensive daycare services, make sure your daycare is either located close to offices or in an area where affluent parents work or live.

f) Legal Structure

Finally, your business overview section should specify what type of business structure you opt for. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Daycare Market Overview

In the market overview section of your business plan, you must cover 2 important areas:

• Market trends : how big is the daycare industry in your area? How fast is the market growing? What are the trends fuelling this growth (or decline)?
• Competition analysis : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?

a) Daycare Market Trends

How big is the daycare industry in the us.

It’s always helpful to base your business decisions on the latest trends in the US market. For instance, the US daycare market had a value of approximately $54.3 billion in 2019 . And it is projected to grow at an annual rate of 3.9% from 2020 through 2027. 

According to reports, the high number of parents occupying full-time and part-time jobs is a major driving force behind the increasing demand for daycare services. No matter how you look at it, these statistics make the daycare business even more lucrative, provided you get all the basics right through your business plan. 

How big is the daycare industry in your region?

After the US, assess the size of the daycare market in your city or area. Focus on the zone where you plan to offer daycare services.

Naturally, you might not be able to get the data for your specific city or region. Instead, you can estimate the size of your market, for more information on how to do it, read our article on how to estimate TAM, SAM and SOM for your startup . To give you an example, let’s assume you plan to operate in an area where there are already 10 competitors:

As we know the US daycare industry is worth $54 billion today, and there are about 230,000 child care centers , therefore the average annual turnover per child care center is around $235,000.

Now, we can safely assume that the daycare industry is worth $23 million in your area (10 centers).

How fast is the daycare industry growing in your region?

Growth is an important metric for assessing the status of the daycare industry in your region. 

Here if you don’t find information online or via your research, you can calculate growth using the total number of competitors in your area. 

For example, assuming there were 8 daycare competitors in the region in 2018, and 10 in 2022, the annual growth rate is 6% per year.

b) Daycare Competitor Analysis

At the very least, your competitor analysis should answer all the questions below:

• How many daycare businesses are the area where you plan to open yours?
• What type of daycare businesses are there: home-based vs. center-based home care, early care vs. early education & daycare, etc.
• What age range do they specialise in?
• What services do your competitors offer?
• What amenities do your competitors have (playground, classrooms, etc.)
• What’s their average price (daily rate / monthly rate)?
• What is the child / staff ratio of your competitors?

4. Sales & Marketing Strategy

For some existing daycare facilities, marketing isn’t the most important aspect of running the business. But you’ll probably have to implement a few marketing strategies at the beginning to attract the first families , especially if you’re starting a new daycare facility.

a) Daycare Market Channels

A daycare business doesn’t have diverse marketing channels like retail stores or other businesses. So, this may limit your options when it comes to new marketing channels. 

Apart from word of mouth, other marketing channels include;

• Social media
• Online listing (Google business, Facebook business page)
• Word-of-mouth

b) What are Your Unique Selling Points (USPs)? 

Daycare facilities offer pretty much the same services, and it’s not easy to stand out from the competition. However, a few factors can be useful when evaluating your opportunities in a competitive market, including:

• Target age group : You may cover a unique age group as opposed to your competitors
• Opening hours : you may offer longer opening hours to accommodate for different parents’ jobs and availabilities
• Price : Your services may be cheaper than your competitors
• Quality & amenities : Quality services and extra amenities (outdoor playground, etc.) will make your daycare facility more attractive vs. competitors
• Services : Your services may go beyond the standard hands-on learning and kid games 

5. Management & People

The 5th section of your daycare business plan should be about people. It should include 2 main elements:

• The management team and their experience / track record
• The organizational structure: what are the different teams and who reports to whom?

a) Management

Here you should list all the management roles in your company.

Of course, the amount of details you need to include here varies depending on the size of your company. For example, a small daycare business run by 1 or 2 persons doesn’t need the same level of detail vs. a large center with 50 children or more.

If you plan on running your business independently, you may write a short paragraph explaining who are the co-founders and/or senior managers (if there are any in addition to yourself). It’s important to highlight their experience in the industry and previous relevant professional experiences.

b) Organizational structure

No matter how many leadership roles there are, you should now explain how you intend to run the company from a management standpoint.

What are the different teams (management, childcare staff, cooking staff, human resources, finance, etc.)?

Note that you should include these details even if you haven’t hired anyone yet. It will show lenders and investors that you have a solid hiring and management plan to run the business successfully.

A great addition here is to add an organizational chart that list all the roles, from Directors to managers, key supervisory roles and employees. Make sure to highlight with reporting lines who manages/supervises whom.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your daycare is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you plan to start a new daycare facility, or add capacity to an existing daycare center, renovate your facilities, etc.)
• The 5-year financial projections

a) Historical Financials (optional)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project.

For a daycare, startup costs are all the expenses you incur before you open the space to your customers. These expenses typically include: renovation costs, equipment and furniture, etc.

The startup costs for opening a child care center depend on various factors such as the location and size of your daycare facilities, the capacity (the number of children you plan to have), the quality of the amenities, etc. 

We’ve identified that it costs anywhere between $130,000 to $490,000 to start a daycare business with 50 children . See below the cost estimates.

Note that these costs are for illustrative purposes and depend on several factors which might not fully apply to you. Let’s first start below with startup costs. 

c) Financial Projections

In addition to startup costs, you will now need to build a solid daycare financial model over 5 years.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 10%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of children over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of members as a small change in these assumptions will have a big impact on your revenues.

When it comes to the costs, consider both startup and operating costs. For more information, read our complete guide here .

7. Funding Ask

This is the last section of the business plan of your daycare center. Now that we have explained what type of daycare services your company would offer, at what price, your marketing strategy , management and people, this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to buy the real estate and do the renovations? Or will it cover the cost of the salaries of your childcare staff and other employees the first few months?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our daycare financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

Privacy Overview

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.

How to Start a Daycare Business Plan 

A Step-by-Step Guide for Childcare Planning with Tips to Help Entrepreneurs Start Their Daycare Business

Table of contents

What is daycare and why should i start one.

• Types of Daycare Providers
• Before Starting Your Daycare Business Essential Planning Steps
• Decision Journey Map Definitions

Assess the Competition

How to start your daycare business.

• The Importance of an Execution Plan
• Execution Plan: Marketing and Sales
• Form Your Daycare Business

Get Familiar with Daycare Licensing Requirements

• Choose Your Insurance and Liability 
• How to Gain Enrollment at Your Daycare  
• Invest In Childcare Experience Software to Build Your Daycare with Less Work

Build an Expert-Level Business Plan for Daycare

The childcare industry is full of passionate, hard-working individuals. Entrepreneurs just like you are starting a daycare from the ground up. In this guide, we'll give you guidance and provide templates to build a solid daycare business plan.

According to Forbes , daycare businesses were projected to have some of the fastest employment growth of all industries through 2020. Starting a daycare is a great opportunity for aspiring business owners who have a passion for early childhood education and child development.   

‘Daycare’ is an umbrella term for various childcare options (such as Montessori, head start programs, preschool, and many more) where parents and guardians drop their children off and leave them in your care to...  

• Socialize with other children in their age group  
• Learn basic fundamentals for future academic success  
• Reach important developmental milestones

Is Starting a Daycare Business Worth It?

Starting a childcare business or franchise is profitable, emotionally rewarding, and sustainable – the need for committed childcare entrepreneurs has never been greater.   

As of 2021, there were 856,238 childcare centers in the United States. The growing popularity of childcare centers comes from the demand. Parents will always need a form of care for their kids. Plus, there’s a necessity, especially beyond COVID-19, to socialize children in an environment that fosters development.  

Types of Daycare Providers 

• In-home daycare  
• Relative care  
• Preschool  
• Independently-owned daycare
• Daycare franchises  

The Difference Between Individual Centers and Franchises  

An independently-owned daycare often has an individual owner, a center director, and possibly a few other administrative staff members – along with teachers, cooks, bus drivers, etc. The owner is typically an individual who puts their own money and savings into opening the daycare, so all business rights (name, branding, etc.) belong to them.  

Alternatively, a daycare franchise falls under a corporate brand that has made an agreement with an individual to legally establish a business – using the company’s brand or trademark. In this scenario, the franchisee usually pays an initial fee, as well as ongoing royalties to the corporate franchisor. In return, the franchisee gains the use of a trademark, support from the franchisor, and the right to use the franchisor's system of doing business (including unique business policies and procedures, such as their method for advertising or enrollment). This model can be particularly beneficial for individuals who are passionate about early childhood education but don’t know how to get started on their own.  

For example, Kids R Kids and Kiddie Academy are both successful daycare business plans in the United States. Each center operates similarly, has the same name (aside from a unique location number or city/county name), and the same branding as all locations fall under the franchisee umbrella.  

Daycare Franchise Terms

• A franchisor is a daycare company that provides its services, brand, and business operations to the individual. This may also be known as a ‘ franchise system ’.  
• A franchisee is an individual owner that is being supported by the company (franchisor). Buying into a daycare franchise makes you the franchisee.  
• The franchise refers to the legal agreement between the company and the franchisee.  
• The franchise disclosure document is the legally binding contract between the company and the individual.  

Essential Planning Steps Before Starting Your Daycare Business

1) conduct market research.

When it comes to starting your childcare center, relying on assumptions about your customers and competitors leads to wasted time, money, and effort. In contrast, businesses that conduct regular market research improve customer retention and are 76% more likely to see an increase in revenue.  

Market research is a data collection process that evaluates both consumer behavior, competitor habits, and industry trends to determine the viability of your center and build a foundation for future business operations.  

Prepare for success upfront by conducting thorough market research to understand your competition, improve communication with your target audience, and identify new market opportunities. This research should result in actual data that you can use to drive your business and marketing strategies as you launch your center.  

There are a variety of tools available to help you conduct market research - all from the comfort of your own office. Gone are the days of hiring team members with clipboards to approach consumers face-to-face. Survey Monkey, Attest, and Sprinklr all offer digital market research tools to help guide you through the process of understanding your audience, your competitors, and your industry.  

2) Determine Your Target Market

A market segment is a group of consumers that could potentially enroll at your childcare center. First, identify your daycare target market segments and determine how big each segment is.  

Be careful not to fall into the trap of defining your market as “everyone in your community.” This often leads to a ‘spray and pray’ approach to your marketing and as we know, a message for everyone really speaks to no one. When you generalize your advertising in favor of not isolating a potential consumer, you aren’t able to effectively communicate with your ideal customers – forgetting to recognize how your childcare center can appeal to them and their needs.  

A classic example is a shoe manufacturer. While it would be tempting for a shoe company to say that their target market is anyone who has feet, realistically they need to target a specific segment of the market in order to be successful. If they sell adult athletic shoes, they should be building their message to target athletes or individuals who enjoy staying active and exercising. Likewise, if you offer programs for children aged 6 months to 4 years old, you should prioritize advertising toward young adults in their 20s and 30s.  

A common strategy when identifying target markets is to use the TAM, SAM, and SOM approaches to look at market sizes from a top-down approach as well as a bottom-up approach.

Target Market Terms

This should include everyone you wish to reach.  

Example: Your entire local community.  

SAM: Your Segmented Addressable Market or Served Available Market 

This is a portion of the TAM you will specifically target because they align with your offerings.  

Example: Families with young children.  

SOM: Your Share of the Market 

This is the group of your SAM that you will realistically reach—particularly in the first few years of your center’s opening, as you may expand and grow your service over time.  

Example: Families with young children who make at least $65,000 each year in household income.  

For childcare organizations with multiple brands, schools, or programs - increasing revenue and keeping families happy is vital for growth. Your Millennial parents need a uniform, high-quality experience, regardless of location.

Standardizing business processes has a significant impact on time savings, costs, and most notably quality. In fact, standardization improves quality by   61.9% ,  on average. Create consistent  enrollment processes across all your franchise locations to ensure every family has a great experience and a positive association with your brand – leading to higher conversion success and profitability.   

To achieve consistency, your franchisees’ marketing approach and advertising material must follow all your corporate brand guidelines. Your organization should have a lead management system that supports your childcare franchise staff as they  guide families through   the decision-making journey  while also ensuring each location is delivering a consistent parent experience.  

3) Develop Your Buyer Personas

Before you begin writing your daycare marketing plan, make sure you’ve defined your market and buyer personas. Without a deep understanding of whom you’re speaking to, a daycare marketing plan will have little value.    

Audience personas allow you to dive even deeper into your target market and help you understand more than just who your customer is. These identities inform you how to communicate with your customers in a way that relates to their pain points and needs.  

Building a daycare business plan is no joke! Check out childcare business tips at a glance . 

When you understand your customer’s motivations, you can uniquely address their concerns and questions in your marketing materials - leading to increased tours, enrollments, and revenue.   

Start by listing out the various kinds of programs and classes you’d like to offer at your center.  

Then, determine who the primary decision-maker is and who the primary influencers might be in each scenario.   

Primary decision-maker : typically the individual(s) taking financial responsibility and remitting payment at your center.   

Primary influencers : are  also crucial in the purchasing process as they often have the ability to sway decision-makers.  

For example, imagine you’re promoting availability for Summer camp programs at your center. In this instance, the primary decision-maker might be the parent(s) or guardian(s) whereas the primary influencer would likely be the child who’s deciding what kind of activities they want to do this Summer.  

Audience Overview

List the audiences, personas, or segments that you want your center’s marketing and messaging efforts to reach.  

Select one audience from above and describe it to the best of your knowledge. Go beyond the traditional persona to consider motivations & behavior.  

Identify the key stages in your audience’s enrollment journey from beginning to end, knowing there may be multi-dimensional steps within a stage. Complete the table for each journey at the individual stages from the specific audience’s point of view.  

Decision Journey Map Terms & Definitions 

Stage : This refers to each stage of the enrollment journey - awareness, consideration, action, and advocacy.  

Awareness : This is when a family is first learning of your center and your brand. They are researching multiple daycare centers and eventually send an inquiry to tour your facility or learn more.   

Consideration : During this stage, a family is touring your center and may be deciding between you and 1-2 other providers. Tip: Proactively equip your staff with key talking points so they can highlight your unique center features.  

Action : This is when a parent decides to register their child for care, pay fees, and is either placed on your waitlist or enrolls.  

Advocacy : After a successful, happy experience, this parent or guardian has become an advocate for your business. They’re telling friends and family about your center. This is vital for your word-of-mouth marketing strategy.  

Emotion : Identify what the persona is feeling at each stage of the customer’s journey. They may be anxious, curious, excited, or satisfied at various points. Put yourself in their shoes.  

Key Actions : What actions would a consumer take at each stage? For example, during the awareness stage, they may see your ad on Facebook, look you up on Google, or visit your website. In the consideration stage, they may call your center to get more information, look at your services online, or read reviews.  

Questions : What questions is the consumer asking in each stage? These are the questions you need to be answering for them in your advertising and marketing efforts.  

Competitive research helps you understand why customers choose your center over other alternative care options. This information provides you with insight into how your competition is marketing their services and over time, this can help you improve your own marketing campaigns and business offerings.  

Look up similar daycare centers in your area, and see what programs they offer, the type of facilities, their capacity, and their curriculum. Then, highlight the features that make your center stand out. Showcase your selling points in all marketing and advertising efforts.  Get started with these key questions...

• Who are my direct competitors and what do they offer?
• Who are my indirect competitors
• What does my competition's pricing look like?
• Do they offer promotional pricing or payment plans?
• What do they do best?
• What do they do poorly?

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

Download the Guide

Build a Daycare Business Plan

A good 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.  

There’s no correct or incorrect way to write your business plan. What’s most important is that you identify your business objectives and use this document as a roadmap for how to achieve these goals.  

A strong business plan can help you recruit business investors, gain funding, or find new partners. 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.  

Write a Day Care Executive Summary (Daycare Business Plan Outline)

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. At this stage, you will be able to articulate your business more clearly and summarize all the information in a succinct, concise manner.  

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. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation, and more in-depth daycare business plan financials.  

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. This section is intended to be a quick read that hooks your potential investors’ interest and excites them to learn more.  

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  
• A quick financial summary (based on grants, funding, and potential revenue from projected enrollments)

This may seem like a lot of information upfront, but it’s simply a high-level overview of your plan.   

Conduct an Opportunity Analysis 

The opportunity section of your business plan includes information about:  

• The problem that you’re solving within your community
• P rograms and classrooms   do you plan to market your center(s) to
• How your daycare facility fits into the existing competitive landscape  

Opportunity Analysis: An Example 

The opportunity analysis portion of your business plan is important for outlining what distinguishes your daycare from your direct and indirect competitors. It details how you can continue to expand and grow your center in the future.  

Use your previous competitive research to determine your daycare business’s competitive advantage and position. Analyze potential strengths, weaknesses, opportunities, and threats. 

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.   

So, what is the primary pain point for them? Maybe it’s that busy, working parents need a caring, safe place for their child during the day, or perhaps families are seeking after-school care options for their elementary-aged children, or maybe parents need 24-hour childcare options when they’re traveling or working odd hours.   

Now, assess how they are solving their problems currently and where there’s room for improvement. If there's only one childcare center in your community and it has no open seats, you could be the solution. Or maybe there are lots of existing care providers in your city but they’re expensive or have rigid pickup and drop-off times that working parents have trouble meeting. Or perhaps there aren’t any existing childcare businesses within a reasonable driving distance of where you’d like to place yours.  

Defining the problem you are solving for your customers is by far the most critical element of your business plan and is crucial for your daycare business’ success. If you can’t pinpoint a problem that your potential customers have, then you might not have a viable business concept.  

To ensure that you are solving a real problem, try conducting your own survey with potential customers to get a better understanding of their needs and validate that they have the problem you assume they have. Then, take the next step and pitch your potential solution to their problem.

Do they agree that it’s a good fit or does it seem to fall flat?  See how to come up with a strategic plan for your business.

The Importance of Creating an Execution Plan

The execution chapter outlines how you’re actually going to make your childcare center work . You’l l address your marketing and enrollment plans, operations, success metrics, and any key milestones that you expect to achieve.  

Execution Plan: Marketing and Sales  

The marketing and sales plan section of your business plan details how you propose to reach your target market segments, how you plan on converting those target markets, what your pricing model looks like, and what partnerships you may need to make your center a success.   

Your Positioning Statement

Once you understand your audience, the first part of your marketing and sales plan is your 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 from the alternatives that a customer might consider. This statement should be written for an investor or loan provider, rather than for your customer.  

One daycare business plan example - a positioning statement for a 24-hour childcare center in Austin, Texas may look like this:

“For the Austin-based family who is seeking childcare around the clock, Jenny’s 24-Hour Daycare is a safe option for young children with nutritional meals, best-in-industry sleeping arrangements, a clean outdoor play area, and highly trained care professionals. Jenny’s 24-Hour Daycare is the first center of its kind within 30 miles of the Austin metroplex and offers competitive pricing and tuition payment plans.”  

Use this formula to develop a positioning statement for your center: 

Your Mission Statement

Your mission statement is a scaled-down version of your positioning 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 company core values that explain your daycare’s purpose and how you serve your audience.  

For example, Cadence Education is a leading early childhood education provider with the mission of “providing parents with peace of mind by giving children an exceptional education every fun-filled day in a place as nurturing as a home .”  

Pricing 

Your positioning strategy will typically determine how you price your memberships and packages. There are some basic rules that you should follow when deciding on your price point:  

• Cost-plus pricing : For the most part, you should be charging your customers more than it costs you to host them at your center to ensure your venue is profitable and appealing to investors.  
• Market-based pricing : Look at what your competitors are charging and then price based on what your audience is expecting.  

Strategic Alliances

As part of your marketing plan, 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.   

This partnership should benefit both of you – it may help provide access to a target market segment for your venue while allowing your partner to offer a helpful recommendation to their customers. If you’ve already established an alliance, it’s important to detail that in your business plan.  

The operations section is all about how your business works. This portion details the essential logistics such as staffing and sourcing and fulfillment. But remember, your goal is to keep your business plan as short as possible, so too much detail here could easily make your plan much too long.  

Milestones and Metrics

It’s critical that you take the time to look forward and schedule the next critical steps for your business. Investors will want to see that you understand what needs to happen to make your plans a reality and that you are working on a realistic schedule.

Then, determine how you will measure the success of each milestone by listing out the key performance indicators and metrics needed to see progress. These will be the numbers you monitor on a regular basis to evaluate the trajectory of your business. For example, you may look at how many families tour your center each week, how many children you enroll each month, or the amount of revenue you bring in per quarter.  

Company and Management Summary

The structure of your staff and teams sets your daycare up for success. In a new daycare center, there’s typically an owner (or franchisee), a center director, staff members, an enrollment or marketing team, accounting/administration, teachers, assistants, cooks, bus drivers, and janitorial staff. For example, the average small daycare business plan includes 8-10 fully licensed and/or certified early education teachers.

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. Break your sales forecast down into several rows, focusing on just high-level buckets at this point.   

Knowing how much your daycare will cost to open ahead of time can save you money, stress, and time. Daycare business plan start-up expenses vary by size, enrollment capacity, and miscellaneous needs.

Keep in mind that you can save on staffing costs and cut down on overhead with technology that helps to streamline your center’s operations. After all, 40% of Millennials prefer self-service over human contact when interacting with businesses.   

It’s essential that you find ways to enable families to book tours and enroll online without ever having to make a phone call to the center- reducing time spent on necessary-but-manual tasks for both your staff and inquiring families.  

Finally, articulate your profits and losses based on the data from your sales forecast and your personnel plan plus a list of all your other ongoing expenses associated with running your childcare center.  

See this Formula for Financial Forecasts

Step 1 : Average cost of tuition per child x your expected enrollments x 12 (annual revenue – assuming each family enrolls their child in one of your summer programs).  

Step 2 : Daycare businesses make around 16% profit from their overall revenue, after daycare expenses. Multiply your number from step 1 by .16 to get your predicted profit.   

Example : Let’s say you plan to charge families an average of $315 per week for childcare. With that, your goal is to enroll 60 students by the time your daycare center opens. Multiply $315 x 60 x 12 (annual revenue). This should come out to $226,800. Lastly, multiply your revenue of $226,800 by .16, which equals a net profit of $36,288 per year.  

Consider Various Funding Sources

Depending on your situation, there’s both loan and grant funding in childcare. Between state tax credits, loans, and grants – there are financing options for a variety of situations.  

Review Your Tax Deduction Options

Collecting tax credits is one way to receive an annual deduction on daycare costs. Based on your state, you can claim tax credits for...  

Collect Daycare Grants for Your Business

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.   

Know Which Loans Are Available to Daycare Business Owners

While grants are a wonderful option for freshly opened daycare businesses, loans are occasionally easier to come by. They’re offered widely and often have fewer requirements to qualify. Check out a few loan examples for your daycare center.   

• SBA Loans , otherwise known as Small Business Administration loans, have exceptional rates, low interest, and flexible repayment options.  
• SBA 7(a) Loans are beneficial for covering pricier equipment funds and real estate. Loans of up to $5 million are available to daycares.  
• SBA 504 Loans – these are wonderful for business expansions and involve a loan for 50% of the project cost.  

Take Actionable Steps to Bring Your Daycare Business to Life

Both Limited Liability Companies and Incorporations offer the significant legal advantage of helping to protect assets from creditors and provide an extra layer of protection against legal liability.  

The main difference between an LLC and a corporation is that an LLC is owned by one or more individuals, and a corporation is owned by its shareholders. In general, the creation and management of an LLC are considered simpler and more flexible than that of a corporation.  

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  

All states have different daycare licensing requirements. Generally, you'll follow the steps below.

1) Take a Course

Attend and complete a pre-application course (you’ll receive a certificate at the end – remember to save it).  

2) Submit Your Application

Submit your online licensing application. It'll ask for details about your business that were outlined in the executive summary.

3) Pay Fees

Pay your application fees. The fee depends on your center's capacity or the number of children you plan to enroll.

4) Complete Inspections

An inspection of your business property must be conducted.

5) Submit Your Service Payment

Register and pay for the inspection.

6) Conduct Background Checks

Submit background checks (this may also be an additional charge).

For More Information on How to Operate In Licensing Excellence, Listen to the Podcast Below

Choose Your Insurance and Liability

• Provide general liability – stay covered if your center has any property damage or injuries to third parties (children).  
• Abuse coverage protects your childcare business or franchise. If employees turn out to be abusive towards children, this policy covers defense costs and defends you against financial losses.  
• Professional liability insurance provides coverage for your business and workers if there is a neglect claim.  
• Hired and non-owned auto liability ensures everyone is covered if there is a pick-up/drop-off vehicle accident.  

*Liability requirements may vary by state.

How to Gain Enrollment at Your Daycare

From a business owner's perspective, the next step after successfully starting your daycare is to grow your center and gain enrollments.   

Begin by building a strong company culture, actively marketing your daycare center, and finding the right childcare technology to optimize your enrollment process and save time.  

See how to elevate your business plan for daycare with better waitlist management.

Create a Culture Where Staff Want to Work

A daycare center that stands out from the rest has happy staff members that want to work hard. Create a diverse employee culture that feels comfortable openly talking about situations. Provide support, patience, and room for growth. See more tips for creating a healthy and positive culture for your daycare staff .  

Market Your Center

A daycare marketing strategy starts with an achievable goal. Do you want to fill your enrollment spots? Do you want to build a waitlist? Should you focus on scheduling more tours or gaining new leads ?   

Choose a goal with measurable results. That way, you can track and analyze your marketing performance. When it comes to how to promote daycare business, marketing helps families realize you're the best childcare center on the block. Promote your centers through...

• Social media (especially Facebook – 83% of Millennials have a Facebook account).  
• Landing pages and contact forms on your website  
• Listing directories  
• Email and text marketing campaigns  
• Referrals  
• Digital advertisements  
• Flyers  
• Word-of-mouth marketing  

Tip: childcare experience software that automates the reports you need helps you to save time and improve your return on investment (ROI).  For example, a  Source of Families report shows you where your leads are coming from to optimize your efforts.

Invest In Childcare Experience Software to Build Your Daycare with Less Work  

LineLeader is revolutionary childcare software that automates lead capture, follow-up, scheduling tours, and reports. Craft  beautiful, personalized marketing campaigns to continually grow your business.  Plus, easily manage your curriculum, attendance, and billing with automated center management

Get more from your marketing while saving franchisees 10 hours every week with LineLeader. Automate everything from lead capture and reporting to center management—all from one place.

Download Your Guide

Resources to help you run your childcare business.

4 Fun-Filled Ways to Celebrate the Fourth of July with Children

Crush the Competition With Effective Competitor Analysis

4 Amazing 4th of July Crafts To Do with Your Students This Summer!

Additional resources.

For more information on specific childcare resources regarding marketing tools, campaigns, tips, and best practices - see below.

1. Learn hidden secrets no one tells you about starting a childcare business .

2. See how to operate in childcare licensing excellence to boost enrollment.

3. Beth Fiori of Tiny Treasures provides expert tips. check out ways to improve your business plan for daycare with enhanced waitlist management.

4. Discover tips to maintain the best childcare center on the block.

5. Gain advice for strengthening your daycare staff culture. 

6. Learn the benefits of building a daycare business plan , at a glance. 

LineLeader Video Resources

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

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So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Start a Day Care: A Step-by-Step Guide

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If you’re a teacher, former teacher, or simply have years of experience caring for children — and an entrepreneurial streak — you might have considered starting your own day care center, either from home or in a dedicated facility. And at an expected job growth of 7% over the next decade, working in child care is a stable career choice. So, if you’re seriously wondering how to start a day care center, you’ve come to the right place.

As is the case starting a business in any industry, however, your passion for your craft alone — or, in this case, your students — isn’t quite enough to ensure that your day care business is copacetic, either financially or legally. You’ll need to do a good amount of due diligence when looking into how to start a day care business, paying special attention to licensing requirements, and ensuring that your facility and program aligns with your state’s health and safety codes.

If you’re a pro at educating, training, supporting and generally corralling large groups of small children, you should be pretty unperturbed by the work it takes to start a day care business. Here’s what you need to know.

How to start a day care business

Although every path toward starting a business looks different for every business owner, there are a few steps that every aspiring day care owner needs to think about when it comes to how to best start a day care.

1. Decide what kind of day care business you want to start

Before you can even get to writing a business plan for your day care business, you need to decide what kind you want to open. Look into whether you want to start a day care business at home, or whether you want a more commercial facility — there might be different permits required in your municipality depending on which you choose. You also need to decide what age groups you want to focus on.

Next up, you'll have to decide on a business entity, which will have huge effects on the way you're taxed and how you operate your day care business. Will you have partners or open your business on your own? Additionally, you'll want to consider whether you want a business entity that offers you some protection. Making your day care center a limited liability company might be a good move, since the business will take on liability should anything go wrong.

You might also decide to buy into a day care franchise opportunity. This option will significantly streamline the steps you need to take in opening your day care.

Once you narrow down these details about your business, you can move on to the next step in starting a day care business: writing a business plan.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

2. Write a day care business plan

This is a step you have to take when starting any business and it can be quite a bit of work, especially for anyone looking to get moving quickly on their business. When you start writing a business plan, start with an outline of all the things you want to include.

Your plan should include a summary, an overview of the company, a market analysis that includes an assessment of the need for a business like yours, a marketing and sales plan, and a financial plan along with financial projections. Don't worry, though, you can always add to it as your business grows.

One thing you should include, though, is market research. The last thing you want to do is go through all of these "how to start a day care business" steps, only to find that there isn't a market for one or that there are already too many day cares in that area to make it a viable business.

Your business plan should also include a budget. The costs associated with opening and running your day care center can never be accurately totaled, but nailing down a budget will give you some parameters to work within (and some peace of mind).

In your budget plan, don’t forget to factor in:

Your startup costs, including day care equipment, food, toys and educational tools, wages, insurance and licensing.

How much tuition you’ll charge.

Your predicted revenue over the next two to three years.

When you’ll break even.

Also know that day care centers can claim certain tax deductions, which can ease your annual financial burden.

You'll also want to include a marketing plan. If you’re seriously researching how to start a day care business, it’s likely that you’ve already been caring for children in your area for some time and have built up a network of local parents. That’s one valuable method of attracting customers (aka word of mouth) covered. Still, implementing even a basic marketing plan can help define and legitimize your business — and if you need to implement a waitlist as a result, that’s great too!

Your marketing efforts can be relatively simple and low-cost. You can start by creating a Facebook page for your day care center and building a business website, making sure to include your contact information and a little bit about your business. If possible, plan to include pictures of your facilities and testimonials from happy customers.

If you’re a fan of social media, it also can’t hurt to create an Instagram, LinkedIn and/or Twitter account to keep both current and prospective customers updated on your business. Just be sure that once you do, you receive permission from parents or guardians before posting pictures of their children, of course.

Analog marketing techniques would work well here, too. If possible, consider distributing flyers or brochures to nearby libraries, schools, places of worship or any other local gathering spots.

3. Obtain the necessary certification and licenses

You may not need a master’s degree in education to become a day care teacher, but each state does require some combination of licensing and certification when it comes to how to start a day care. Visit your state’s Division of Child Care Services (or its equivalent) to find out the training, experience and credentials you need to legally operate a day care facility.

In New York State, for instance, the head of the day care facility must have one of the following:

An associate degree in early childhood education or an equivalent.

A CDA credential (child development associate) and at least two years of experience caring for children.

A high school diploma and at least three years’ experience caring for children.

You'll probably find that there are some other requirements that usually come up when you're looking up how to start a day care business at home or in another facility. Your state may require that you and any staff you hire are CPR-certified, for one. Another point of safety to remember is that you should be trained in at least basic first aid for children. You and your staff might also need to be fingerprinted and undergo background checks before being cleared for work.

Even if your state doesn’t require that you obtain a license, you should consider doing so, as your licensing course will go over all the boxes you need to check to operate your day care in your state — including health and safety regulations, proper food preparation and the required child-to-adult ratio.

4. Find a (safe) day care facility

In certain states, in order to obtain the proper licenses or registration to start your day care business, you’ll first need to show that your day care facility meets your state’s health and safety requirements.

So whether you choose to open your day care facility in your own home, or buy or lease a new property, you’ll need to make sure your facility meets zoning, fire, and health and safety laws. When it comes to how to start a day care at home, you may need to make alterations to your house to comply with day care requirements in your state, so be sure to factor them into your budget.

5. Get insured

Another requirement for obtaining your license? Getting insured. In certain states, you’ll need to be licensed by the Department of Health and Human Services to run your day care center, but to do so, you’ll first need liability insurance.

The exception is home-based day care centers, which don’t need insurance to be licensed by the DHHS. Still, those opening day care centers at home should seriously consider obtaining small business insurance. You always run the risk of a lawsuit when you’re running your own business, but that risk increases when caring for other people’s children — so protect yourself whenever possible.

There are several types of insurance that cover day care businesses — general liability insurance, workers’ compensation, property insurance, abuse and molestation insurance and others — so contact an insurance broker to help you decide which coverage is best for your business.

6. Get a business checking account and credit card

Get a business credit card and a business checking account early on to help you keep your business expenses separate from your personal expenses when first starting a day care.

It’s crucial to separate your personal and business expenses for many reasons, not the least of which is to reduce your (or your accountant’s) burden come tax season. It’s simply the most professional way to conduct your business, too. Set yourself up for success now by signing up for a business credit card and opening a business bank account, and be diligent about using both solely for your day care’s finances.

Having a business credit card can help you increase your business credit score, too. By paying the card off on time — or early if you can — you can boost your score, which will help you late on when you need a loan or other financing for your day care business.

7. Get financing

Most entrepreneurs bootstrap their businesses at the beginning, as it’s difficult for brand-new businesses with limited credit history to secure a business loan, either from a bank or from an alternative lender.

Your financing options aren’t limited to your own purse strings (or your friends’ and family’s). Here are a few other ways to get funding and loans for a child care business:

SBA microloan

Although most SBA loans are available only to businesses with a few years of experience under their belts, SBA microloans are actually designed to help startups get off the ground. They’re especially accessible to women, veterans, minorities and business owners in low-income areas. And unlike most other SBA loan programs, SBA microloans are disbursed by nonprofit lenders, rather than banks.

As the name suggests, SBA microloans tend to be on the smaller side, with amounts capped at $50,000, but they may be as low as $500. (For more context, the average microloan amount was $14,000 in 2017.) And because microloans are designed for new businesses, business owners with average or even challenged credit may still be accepted, as long as other aspects of their SBA loan applications are in good shape.

SBA community advantage

These loans from the SBA have all of the advantages that come with SBA microloans but the community advantage loans are specifically for businesses that are serving traditionally underserved communities. These loans are generally for a higher dollar amount than the microloans and can go a bit further for your business.

Government grants

You might be able to obtain financial assistance to start and run your day care through state or federal funding programs for early childhood education providers. For instance, you can contact your state’s Child Care and Development Fund Plan to look into startup funds, or your state’s school meal contacts to seek funding for your day care center’s meals.

Take a look at the Administration for Children and Families Office of Child Care’s list for a more comprehensive overview of federal and state financing programs for child care centers .

Business credit card

It’s important to use a business credit card to keep your day care’s expenses separate from your own. Of course, using a credit card is also the most convenient way to pay for your daily expenses. And since credit limits for business credit cards tend to exceed those of consumer cards, you can spend more liberally without worrying about maxing out your card.

Another bonus? Using your business card responsibly (by which we mostly mean paying off your balance in full and on time, every month) can help you build business credit. And with a healthy business credit score, you’re in a better position to secure business loans with great terms down the line.

If you opt for a card with a long 0% intro APR period, you can essentially use that introductory grace period as an interest-free loan. Look into the American Express Blue Business Plus card, which, at 12 months, carries one of the longest interest-free introductory periods in a business credit card right now.

After your 12 interest-free months are up, though, a variable APR kicks in at a rate depending on your creditworthiness and the market. Check the issuer's terms and conditions for the latest APR information.

8. Hire staff

You may be planning on running your day care facility solo, but depending on your state and the number of children you’re looking after, that might not be an option — every state sets a required ratio of staff to children to ensure that every child receives adequate care. They also dictate the maximum number of children permitted in a group.

Adult-to-child ratios and class sizes depend on the age of the children, but they might also depend on the size of the day care facility, or face further restrictions based on municipality. For a day care center in New York state, for example, the state requires one adult for six children under school age. However, in New York City, there must be two teachers or one teacher and one assistant to every six children aged 2 to 3, with a maximum of 12 students allowed in a single group. Your own children may or may not be included in that count, too.

So, while hiring really depends upon your state’s requirements, it makes sense to leave room for hiring staff in your business budget. That way, you’ll be prepared for growth, without worrying about your operation shutting down because you’re not properly prepared for it. (Just keep in mind that any staff you hire needs to be appropriately licensed or trained for it, and potentially undergo a background check.)

Start Your Dream Business

9. Write your day care contract and policies

To further legally protect your business, it’s crucial that you draw up a contract, write out your day care policies, and require that potential clients (or, more likely, the parents of potential clients) review and sign both documents before accepting their patronage.

If you're just starting to read up on how to start a day care business, you might not be clear on the distinction between these two documents. To clarify, your contract is the document stating that you’ll provide child care, be compensated for providing care according to the payment terms you specify, and have the right to terminate providing care.

Your policies, on the other hand, provide parents with important logistical information regarding how you’ll run your day care center. There, you can outline protocol regarding vacation, illness, inclement weather, drop-off and pickup times, curriculum, field trips, and anything else you believe is important for your clients to understand and agree to about your day care center.

On a similar note...

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Daycare Business Plan

With the majority of parents staying out of the home throughout the day, the daycare (childcare) business has turned into an extremely bankable one in recent years.

If you have the right resources and more importantly, are good with children. If you have ever dreamt of starting a daycare business , then you are at the right place!

Though certain sections are common to all business plans, you’ll need to customize the outline as per the needs and requirements of your business.

Industry Overview

The U.S. childcare market size was valued at USD 54.3 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 3.9% from 2020 to 2027.

This rise in demand has come from the increasing number of working parents. Earlier parents had to quit their careers to take care of their children, but that has changed due to better daycare facilities.

Now, if you plan on entering this competitive childcare market, you must know that the daycare business is based on the foundation of trust more than anything. Hence, providing quality services and having a clean image in the market is of utmost importance.

Studies show that a lot of daycare businesses fail in their first three years due to reasons ranging from poor management to lagging finances. You can combat all of these and many more troubles if you enter the industry with a well-rounded daycare business plan.

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What is a Daycare Business Plan?

A daycare business plan is an equivalent of a roadmap in your business journey. A plan helps you understand what you’re getting yourself into.

It helps you understand the market, figure out where you stand in it, know your target audience better, and formulate better marketing and financial strategies.

Overall, it makes your decision-making process faster and more effective and prevents you from feeling clueless at any point in your business journey.

Moreover, it also helps you get investors and helps your employees and partners understand what your business stands for. It gives the people in your business a feeling that you have a vision and know what you are doing with your business.

Also, you get to set clear goals that give you a direction to work and put your efforts in.

Why is a Daycare Business Plan Important?

Everything you do for your business should add value to it. And here’s how a daycare business plan can add value to your business:

It gives you a sense of direction

There are several ways you can go with each business decision. A business plan helps you understand what would work best for your business then.

Also, it gives a set of tangible goals to look forward to when you work on your business.

It helps you understand your target audience better

Planning your business gives a better form and structure to your research. Which at the end of the day helps you understand your customers better. It also helps you analyze what it means for your business.

Making and upgrading your product or service for your customers serves the biggest purpose at the end of the day.

It helps you understand your competition better

Imagine there’s a popular daycare center in your city and several parents swear by it. Now, this could mean several things for your business.

You’ll have to pick a different location, know the daycare service’s weaknesses and offer better services by working on that area for your business.

You can also pick the things they are doing right, and inculcate the same in your strategies.

A business plan can help you do all of the above and more through a competitive analysis.

It helps you convince your investors

Though making the right prediction is difficult, having a rough idea of your business’s sales and financial potential is important to get investors on board.

Investors want to know the scalability of your business before they invest in it. A good and realistic prediction of returns makes it easier to convince investors.

And a business plan can help you make realistic financial predictions.

It keeps you updated with the latest business trends

A business plan is a living document that grows alongside your business. It also helps you have a foresight of changing trends and act on time for getting the best results for your business.

This also makes it important for you to keep updating your plan as your business grows.

What does a Daycare Business Plan Look Like?

If you are planning to start a new auto or car repair shop, the first thing you will need is a business plan. Use our sample Daycare Business Plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new auto repairing shop, spend as much time as you can reading through some examples of Children’s & Pet business plans .

Moreover, business plans come in different forms to fit the current state of your business.

Apart from that, there are a few major sections that should be included in every business plan.

Daycare Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

• Executive Summary
• Keys to Success
• Company Summary
• Timothy Bernard Kilpatrick
• Start-up Summary
• Locations and Facilities
• Service Description
• Competitive Comparison
• Sales Literature
• Fulfillment
• Future Services
• Industry Analysis
• Market Segmentation
• Market Analysis
• Market Needs
• Market Trends
• Market Growth
• Business Participants
• Competition and Buying Patterns
• Main Competitors
• Strategy and Implementation Summary
• Value Proposition
• Competitive Edge
• Positioning Statement
• Pricing Strategy
• Promotion Strategy
• Marketing Programs
• Sales Forecast
• Sales Programs
• Strategic Alliances
• Web Plan Summary
• Website Marketing Strategy
• Development Requirements
• Management Summary
• Organizational Structure
• Timothy B. Kilpatrick
• Carolyn Steverson
• Candice Harris
• Management Team Gaps
• Personnel Plan
• Projected Profit and Loss
• Projected Cash Flow
• Projected Balance Sheet

What to Include in Your Daycare Business Plan?

A good daycare business plan consists of a certain number of well-defined sections, the following sections can help you in writing an excellent business plan.

1. Executive Summary

The executive summary section is one of the most important sections of your business plan because it not only forms the first section of your business plan but also acts as a pitch for potential investors who can provide you with funds for your daycare business.

It consists of your company’s vision and mission, its USP, objectives, and also expected revenues.

Writing the executive summary section of your plan at the very end, so you can sum up your plan properly is a good tip to remember.

2. Services

In this section, you should give out a clear idea of what your services are and whom it caters to. You should define your target market, your niche, the area your services will be extended to, etc.

As a daycare center, you should have a clear idea of the age group you will cater to, what is the preferred location of your target audience, how you come off as a service to your customers, and so on.

3. Market Analysis

Market analysis can be of great help to any business, it can help you understand what you are getting yourself into, who your competitors are, what your client base expects out of you, and where you stand in the current market situation.

Hence, market analysis immensely improves your understanding of the industry you are getting into. In the case of a daycare center knowing the best practices of childcare that exist in the market can be of great help.

4. Web Plan

In today’s internet-based world, most busy parents looking for a daycare center online. Hence, having a strong and reliable web presence is crucial to the success of your daycare business. Thus, including a web strategy in your business plan is necessary.

Always remember, as a daycare service coming off as a trustworthy and reliable institution is crucial for your business to work.

5. Management and Organizational Structure

Having a well-structured management system is especially crucial for a daycare service. It not only helps your business run smoother, but it also makes you look more responsible and reliable in front of the parents or the primary caregivers.

In this section, you should include the structure of your organization, details about people on various levels in your company, a solid system for tracking everyone’s work and progress, the areas your team is excelling at, and the areas your team is lagging in.

6. Financial Plan

One of the chief reasons for several daycare services running out of business is poorly managed finances or running out of funds to keep going.

Planning your finances in the early stages of your business saves you from encountering such a problem later on.

Hence, planning your finances is mandatory while writing a business plan.

Download a sample daycare business plan

Need help writing your business plan from scratch? Here you go;  download our free daycare business plan pdf  to start.

It’s a modern business plan template specifically designed for your daycare business. Use the example business plan as a guide for writing your own.

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Daycare Business Plan Summary

In conclusion, apart from having a good image as an organization, a well-managed team, a clearly defined niche, thorough research of the market and an excellent financial plan is crucial to the success of a daycare business.

After getting started with Upmetrics , you can copy this sample daycare business plan into your business plan and modify the required information and download your daycare business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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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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Home » Sample Business Plans » Education

How to Write a Daycare Business Plan [Sample Template]

Do you want to start a daycare (childcare)? and need to write a business plan? If YES, here is a sample daycare business plan template & feasibility report. Okay, so we have considered all the requirements for starting a daycare center. We also took it further by analyzing and drafting a sample daycare marketing plan template backed up by actionable guerrilla marketing ideas for child care centers.

Why Start a Daycare Business?

It is the duty of every parent- especially the mothers to see to it that their kids are properly taken good care of. However, there are times when circumstances just makes this totally challenging, as there may not be the luxury of time available to them to sit closely with their children and monitor them.

That is one of the reasons why parents would always want to take their kids to a daycare center. The question therefore is: how reliable are day care centers in seeing that the children are totally given the best of care and attention?

Before the daycare businesses came into existence, parents who could afford the luxury of hiring a home nanny whom they thought were vast and experienced in the care of children. However, as things changed and the crime rates in some areas went haywire-where some folks gained entrance into the houses of people for the sole aim of robbing them, the daycare trend took over.

And ever since the emergence of this trade, we have come to see more and more people who have a penchant for kids, dive into the industry just to tap into the profits that the day care business offers.

What Does It Take to Start a Daycare Center Successfully?

More often than not, in some parts of the world we find that some folks begin a day care business after they have been successful with running a school. Conversely, that is not to say that one couldn’t possibly start only a day care business. As a matter of fact, starting first with a day care center, helps to start on a right footing so that you are able to determine whether you will be able to have a school as an addendum business in the near future.

So, if you have scaled the hurdle of being in love with children, then starting your own day care business might be a smart business choice. Having this wish or aspiration as it were on the front burner of your mind, isn’t all that is required. As a matter of fact there are legal necessities that you have got to tidy. As well as draw up a comprehensive business plan that will guide you as you start out and trudge ahead in business.

A Sample Daycare Center Business Plan Template

1. industry overview.

Day care business is one of the easy businesses that just about anyone who has a flare for kids could readily start. There is no doubt that as the zeal to make more money heightens with parents, then the need for newer and more seasoned day care centers to arise becomes highly important. That is why investors are beginning to leverage on the high demand for day care services, to establish even better ones.

As such, in all of the states of America, there is hardly one neighborhood that doesn’t have a day care centre. The business is indeed a lucrative one and those who are into the trade of establishing them are smiling to the banks every day. However, that is not to water down the fact that loads of work has to be put in place in order to satisfy parents who use these daycare centers.

Whether you are looking to start a small or big one, truth is that there would always be the need to have kids put in these places. This is why some folks who do not have the wherewithal in terms of finance may choose to start from their homes, whilst some may want to start from very little spaces they get.

Over and above one bright ray of light as it concerns the day care business is that there is always room for expansion, as one learns on the job and then improves the services that one renders.

Setting up a day care business means that one would be dealings with little babies, and as such, care have got to be taken in order to hire not just mere employees, but to hire those who are way too vast in the trade and are capable to help the day care business to a great level. There will always be the need to garner plenty of knowledge that would be useful in giving the children the very best of experience.

The returns on investment that one attracts here is so huge that one have just got to keep at doing those things that would continue to guarantee repeat customers as well as give the kids whom are being cared for a growth experience that they wouldn’t forget in a hurry.

2. Executive Summary

Tiny Thoughts ® is a foremost day care center in Ohio, America. It has the best of aims to prepare its pupils to come out tops in all they do- given that they would be the leaders of tomorrow. We propose to achieve this and more by merging an all exclusive curriculum custom-made explicitly for children.

Our type of curriculum is enriched with extra super child care services. This is nothing like what our competitors have to offer because we offer forward-thinking technology plans, after-school training, and activities that help the kids grow better. Activities such as; arts, dance, crafts, gymnastics, theatre, sports, amongst others.

Tiny Thoughts is a privately held establishment run by its owner, Mrs. Mary McGregor. Mrs. Mc Gregor has 10years of Educational training experience. As a matter of fact   she is a master’s degree holder of child psychology. So that when it comes to child management and psychology, she is always at the top of her game.

Her advanced degree in child psychology and interest in kids is the driving force behind the establishment of Tiny Thoughts . She will be supported in daily operations by another educationist and psychologist, amongst other employees.

With the inflation bane that continues to affect the American economy, there will always be the need for parents to work more than one job per time for additional income. It is for this reason that there will always be a need for excellent child care services.

With the least population of Ohio which is at 11.59 million people, there will always be the need to have capable day cares to cater for them. That is why we have decided to position our establishment so as to meet the teeming needs of parents who want the very best for their children.

At Tiny Thoughts , we leave no stone unturned to see that we put in place high- quality child care services, thorough bred educated instructors, as well as personal skills that will allow us compete well in our market . We shall also offer competitive price as part of one of our success factors so that we can attract all and sundry to our prestigious day care center.

Furthermore, we know the importance of having an excellent rapport with parents, and the community we serve, which is why we train and even retrain our workforce so that they bring the best of skills and attitude to the table at all times.

With the aforementioned points in place, we therefore do not intend to look for long before we attract customers as we go all-out to build a loyal customer base by offering the kids at the day care a very hospitable- yet educating experience in a comfortable and beneficial environment.

3. Our Products and Services

At Tiny Thoughts ®, we are first all about making the day care center a very conducive one. We are aware of the fact that some parents might hold back when it comes to the type of vicinity their kids will be put in; which is why we have taken time to research and learn the various ways to build a world class establishment. This we have done in the state of Ohio. Our services include the following;

• Taking care of the infants, toddlers and preschoolers
• Cleaning the infants and toddlers up whilst they are dirty
• Have all kids well fed when hungry
• Keep them active with some extracurricular activities

4. Our Mission and Vision Statement

• Our vision is to build a most standard day care business, where parents can unreservedly leave their kids in our hands, and be totally satisfied in the long run.
• To establish an international standard day care center where kids can be groomed and prepared to be leaders of tomorrow.

Our Business Structure

Big establishments know that one of the greatest selling points is to have the best hands. As such; we plan to only hire the most competent and seasoned employees. This is particularly important since it is uttermost on our minds to run our day care center with an intercontinental approach. This means that we are looking to have all races enroll in our establishment.

We came up with outright buying our own building, instead of having to make do with a leased one. This is why we have resolved to have quite a number of employees to be on our pay roll because of the ample room we have. Therefore, below is the type of structure we look to build our business on;

• Chief Executive Officer (Owner)
• Assistant Director

Administrative Assistant

• Accountants / Cashiers
• Infant room Supervisor

Toddler Room Supervisor

• Preschool room supervisor

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals.
• Responsible for recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for managing the daily activities in the day care center.
• Ensures that all orders and guidelines given by the CEO are adequately carried out.
• Interfaces with other employees
• Reports to the Chief Executive Officer
• Attends to Parent’s complaints and enquiries
• Prepares budget and reports for the organization
• Responsible for Training and Development in the day care center
• Any other duty as assigned by the CEO

Assistant Director:

• Responsible for assisting the director to carry out all that have been assigned by the CEO.
• Ensures that all employees carry out the agenda of the day care center to the latter.
• Responsible for quality control
• Any other duty as assigned by the CEO and director

Accountant / Cashier:

• Receives payments on behalf of Tiny Thoughts®
• Issues receipt to customers
• Prepare financial report at the end of every working Month
• Handles all financial transaction on behalf of Tiny Thoughts
• Interfaces with our bankers
• Responsible for payment of tax, levies and utility bills
• Any other duty as assigned by the CEO / Director
• Assists the director in seeing to it that all the kids are thought are line
• Ensures that all documents are safely kept
• Handles customers enquiries and keeps all records of kids and employees well
• Any other duty as assigned by the director

Infant Room Supervisor

• Responsible for supervising the nannies that take care of the infants.
• Makes sure that everything is in place
• Reports to the Director
• Relates with the nannies and cleaners
• Carries out any other task as assigned by the superiors
• Responsible for supervising the nannies that take care of the toddlers.

Preschool Room Supervisor

• Responsible for all the kitchen activities at the center
• Attends to the foods of all kids
• Takes orders that will advance the establishment from the Director, CEO and others.
• Responsible for cleaning the day care facility at all times
• Washes the mugs, spoons and other utensils
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the daycare
• Any other duty as assigned by the day care director.

6. SWOT Analysis

Our purpose of starting a day care center is to compete favorably with other schools, and surpass them. We have also decided to have a test run on the business for a period of 5 years. This is to know how we are able to fare during this time, as well as to determine if we are to devote more resources, additional money, for the expansion of the business.

We shall start with just one center for now and then see how we are able to succeed despite the myriad of competition. In arriving at all these, we deemed it fit to employ the services of an expert who has helped us with conducting a SWOT analysis.

It was expedient that we did this, so as to ensure that we have what it takes to run a day care school and perhaps even build more branches. Here is a summary of the result from the SWOT Analysis that was conducted on behalf of Tiny Thoughts;

Our area of strength to a very large extent lies in the fact that the owner of our day center is well versed in child psychology. This is really a positive one for us, because we believe that we shall be able to really handle the kids that are put in our care, unlike some folks who have no background knowledge in education and psychology.

The perceived weakness for our business could be that we are starting out as newbies and it really isn’t easy to convince people to come and enroll their kids at the day care. This is why we have got to really work hard at our advertising strategies, as well as solidify how to seal deal with our potential clients.

• Opportunities:

The fact that we intend to lower the fees involved in enrolling a kid at our daycare, seems to be one of the ways at which we will attract all and sundry. We are certain without a doubt that with the quality of our employees and services, we shall attract clients that would be highly satisfied with us.

Some of the threat our business may likely faced with might be a scenario where a kid has an illness and yet comes to the center. There may be likelihood that such an epidemic might spread to other kids. As such; this might not be nice because that might make some guardians want to withdraw their kids to a safer place.

7. MARKET ANALYSIS

• Market Trends

In the united states of America, you will quite agree that there are lots of guardians who need to work almost round the clock to eke out a living for them and their families. As such and as stated earlier, the need for someone to care for the kids whilst working in non negotiable.

That is why there will always be the need to have kids at day care centers. Furthermore, there is no indication that the day care trade would plummet anytime soon based on the statistics of parents who work that is found by experts.

There is always a boom in this business all year round, as the weather or state of the economy has nothing to do with it. That is why the services being rendered by us have to be top notch at all times. We do not want to be found wanting in any area, that is why we are sure to invest a lot in training our employees at all times.

Our positioning, as is always the case of determining the amount of customers that patronize a business is of importance to us, which is why we have chosen to start from Ohio.

Despite the fact that there loads of day care businesses who have done so well for themselves in the past, we plan to not leave any stone unturned as we continue to work at better ways to make our services known to people. Part of the marketing and sales strategies to be adopted includes;

• Commencing operation by first having a grand opening. This means that we will have a big party where we can invite those who reside in the neighborhood we propose to start out  from, as well as those from other neighborhoods.
• Ensure that we have all our professional employees present at the party and if possible show them off.
• Make use of attractive hand bills to create awareness and also to give direction to potential clients
• Position our signage / flexi banners at strategic places around the vicinity.
• Advertise our day care center on business directories, magazines and yellow pages.

8. Our Target Market

When it comes to the day care business, of course our target market is the guardians and parents. That is why we have got to primarily focus on these types of people. The people we intend offering our services to are;

• Corporate Executives
• Business People
• Sports Men and Women
• Government Officials
• Low class, middle class and high class people

Our Competitive Advantage

Going by the state where we have chosen to start from, we found that there are no day care centers in the vicinity we are, which is why if we are able to do our due diligence, and we are able to attract a crowd of customers there, then there is the possibility of hitting success in the first few years of operation.

We plan to run a standard day care business which is why we hired one of the leading business consultants to work with us in setting up our business. The business consultant we have hired has over 10 years of experience in business management and has successfully opened several day care businesses in major cities across the United States of America.

So far, there are clear indications that with what he has brought up, we shall no doubt do well and even surpass other businesses in the state. We believe that for us to have hired one of the experts in town, without a shadow of doubt, we will do exceptionally well when eventually we kick start.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Our sources of income for Tiny Thoughts is limited to the services of taking proper care of the children that have been placed in our care. However, we are not relenting when it comes to   opening different branches.

10. Sales Forecast

It is important to state that our sale forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. Below is the sales projection based on the location (Ohio), which already has an avalanche of day care schools.

• 200 pupils per session

N.B : Our annual projected sales for TinyThoughts ® is put at about $4,800-$16,500, or $400 -$1,375 monthly per child. Over and above, as Tiny Thoughts gets established, our net profitability will likely witness a boom as that indeed is what we project.

• Marketing Strategy and Sales Strategy

Tiny Thoughts will throw a grand opening party when it does start. One of the very unique things that we plan to do on that day is to; unveil some of the professionals and junior employees that we have. That is those who will help us get things started on the right footing. Why is this a big one for us? It is a big one for us because parents will have an opportunity to interact with this people, as well as ask all the questions they want.

The location of our day care center is strategically positioned to attract ample customers with little or no effort from our own part, which is why we do not make provisions for marketing and sales executives in our company’s structure. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate a high number of people;

• Position our greeters to welcome parents and the kids as they arrive
• Create a loyalty plan that will enable us reward our regular customers
• Position our flexi banners at strategic positions all around the vicinity
• Advertise our Tiny Thoughts Business on yellow pages magazines
• Partner with child’/ education agencies to refer parents who are looking for a good day care center

11. Publicity and Advertising Strategy

When it comes to publicity and advertising, we have a low budget for it simply because our business is located in a place that can easily attract the numbers of customers we would need with little or no stress on our own part.

But for the fact that we hope to some day in the near future have more branches, we have decided to create a budget for publicity and advertisement for the major aim of introducing our brand in the market place. Everything that we will do in this regard is geared towards communicating our brand. Here are the platforms we intend leveraging on to promote and advertise our business;

• Place adverts on both print (travel magazines) and electronic media platforms
• Sponsor relevant educational community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations
• Distribute our fliers and handbills in target areas where guardians can be found.
• Position our Flexi Banners at strategic positions around the airport

12. Our Pricing Strategy

When it comes to fixing prices for our services, we will ensure that we set pricing in line with what is available in the day care trade. We are very aware that we have got to lower our price so that we will be able to attract customers like never before as we seek to gain recognition as newbies. When this is achieved, then bottom line is that our customers will derive real satisfaction when they bring their kids to us.

• Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches.

13. Startup Expenditure (Budget)

This is the key area where we will spend our start – up capital;

• The Total Fee for Registering the Business in Ohio: $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,300.
• Marketing promotion expenses for the grand opening of Coffee4All® in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $52,800.
• Cost for building remodeling – $25,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory – $16,027
• The cost for office supplies (one month) – $287
• Daycare hardware ( bins, utensil rack, shelves, food case ) – $3,720
• Cost for client reception area equipment ( plates, glasses, flatware ) – $3,000
• Cost for equipment ( cash register, security, ventilation, signage ) – $13,750
• Office equipment and furniture – $3,600
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
• The cost of Launching a Website: $600
• The cost for our opening party: $5,000
• Miscellaneous: $2,500

We would need an estimate of about $100,000 to successfully set up our day care business. The amount includes the salary of all employees and the CEO (Owner) for 3 months.

Generating Funding / Startup Capital for our Daycare Business

Tiny Thoughts is a private business that is solely owned by Mrs. Mary McGregor and she does not have the intention of welcoming any external partners except immediate family members which is why she has decided to restrict the sourcing of her start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B : We have been able to generate about $60,000 ( Personal savings $40,000 and soft loan from family members $20,000 ) and we are at the final stage of obtaining a loan facility of $80,000 from our bank. All the papers and document has been signed and submitted, the loan has been approved and any moment from now our account will be credited and we will be able to execute all the things that needs to be executed.

14. Sustainability and Expansion Strategy

Our plans of establishing Tiny Thoughts is basically to test – run the Day care trade. We have decided to start our first outlet in a competitive location like Ohio. Although we don’t have the intention of running chains of day care centers now, but we have plans to set up branches in years to come. It is pertinent to state that we shall not allow our standard operating process to drop so that we do not lose our loyal customers.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Obtaining of health permit : Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Purchasing a building and remodeling it: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, beddings, toys, electronic appliances, office appliances and other equipment: In progress
• Creating Official Website for the day care center: In Progress
• Creating Awareness for the business both online and around the neighborhood of location: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress

More on Education

The Ultimate Guide on How to Start a Daycare Center

• brightwheel
• Running a business

For children, daycare centers are a jumpstart to healthy growth and development. For you, they could be the key to financial freedom and a rewarding career. 

Opening a daycare center is not as easy as ABC, 1-2-3. There are several components to consider like your location, the overall economy, operating costs, licensing, insurance coverage, and more.

This ultimate guide has everything you need to know about opening a daycare center and the nine steps you can take to start your business.

Daycare centers in the current economy

The daycare industry has always been essential. However, the COVID-19 pandemic did have a negative impact on many childcare programs. 

To cooperate with social distancing regulations, USA Today reported that more than 2 in 3 of the United States’ formal childcare centers were closed or operating at reduced capacity. In addition, many families lost the need for childcare when many corporate jobs shifted to remote work. 

Additionally, daycare centers continue to battle against inflation affecting the costs of rent, utilities, food, supplies, staff salaries, and tuition. And while this might all seem daunting, the childcare industry is on the rise again.

With the reduction of COVID-19 regulations, parents have returned to their offices, and the need for childcare has returned. The U.S. Bureau of Labor Statistics reports that the job growth outlook for childcare workers between 2022 to 2032 is projected to decline 2% however, it is projected that there will be 153,000 openings for childcare workers each year, on average, over the decade. And while the economy can quickly bring about the downside of any industry, there are many benefits associated with opening a daycare center to consider.

The benefits of opening a daycare center

The significant benefits of opening a daycare center include personal childcare, financial freedom, tax benefits, and a rewarding career.

Personal childcare

When parents of young children go to work, they have to consider child care. Who will watch their child? How much will it cost? Will they be available to drop them off and pick them up? Opening a daycare center eliminates these questions for you. Starting a daycare business could lead to increased financial freedom if you already provide at-home care for your own children. 

Financial freedom

Most workers in the corporate world rely on their supervisors and managers for a paycheck. Opening a daycare center gives you financial freedom and autonomy over your income. Owning your own business also allows you to make decisions to propel the business and ensure your financial security.

Tax benefits

Opening a daycare provides tax benefits that save you money. For example, as a business owner, you can write off certain daycare expenses, including your utility bills, vehicle, and childcare supplies. 

Opening an in-home daycare may also allow you to write off a portion of your housing payment as a business expense when you file taxes.

Rewarding career

There is no doubt that many daycare owners and workers find their job of teaching, helping, and encouraging children rewarding. Daycare is essential to young children's cognitive, physical, and social-emotional development. Teachers have a direct hand in shaping their minds and behavior.

Before opening a daycare, ask yourself why you want to start a daycare. For example, are you passionate about fostering young children's development? Do you want to help families in your community? Reflecting on the reasons why you want to start a daycare will motivate you through the process and help your business succeed.

How much does it cost to start a daycare?

Before we outline the steps to starting your daycare center, you might find it beneficial to understand the financial obligation you’ll be making. The average cost to start and run a daycare business is about $50,000. The typical range is between $10,000 and $100,000 , depending on various factors like location, size of daycare, number of children, and staff.

Overall, home-based daycares usually has less start-up costs since you don't need to find a facility. On the other hand, medium to large-sized daycares can cost upward of $50,000, and the largest daycare centers can cost upward of $100,000, depending on your location. The typical operating costs of running a daycare center include:

Rent and utilities

You may opt to operate a home-based daycare center, which may cost less to operate than renting a commercial space. Most commercial spaces charge between $0.60 and $2.50 per square foot. Utilities may include electricity, water, heating, TV, phone, and internet.

Employee compensation

Hiring teaching and non-teaching staff is crucial if you plan to run a daycare. According to data from Salary.com as of September, 2023, childcare workers in the U.S. earn an average salary range of $34,500 to $43,000 per year. However, this range may differ based on your location as well as the employee's education, certifications, and years of experience.

Licensing fees

Daycare business licensing requirements and fees vary from one state to another. You should inquire with your state's early childhood education department to determine what licenses will be required for your business.

Insurance costs can range between $3,000 and $5,000 a year, depending on your specific policy and location. You may have to buy the following insurance policies: liability policy, property policy, workers’ compensation insurance and errors and omissions insurance.

Supplies and equipment 

You will need plenty of educational supplies and various furniture and equipment at your daycare center. Typical costs range from $30,000 to $40,000. Indoor furniture and equipment such as cribs, tables, changing stations, mats, chairs, computers, and outdoor furniture like playground equipment is essential for your center. Educational supplies like age-appropriate toys, books, and craft supplies, and housekeeping supplies such as cleaning supplies, diapers, and wipes should also be included in your budget.

If your center provides meals, you will also need to budget for the cost of food and other kitchen equipment and supplies like plates, cups, and napkins. The USDA website provides information on Child and Adult Care Food Program nutrition standards that most centers must abide by.

Advertising and marketing

Advertising and marketing are crucial for new and established daycare businesses. The total advertising and marketing costs can range between $1,000 and $1,500. These expenses typically include things like printed flyers or other marketing materials, website costs, or ads on social media.

When opening a daycare, use this information to estimate your daycare’s monthly budget and expenses.

How to start a daycare in 9 steps

Opening a daycare requires careful preparation. Follow these steps carefully in accordance with your local and state guidelines to keep your business compliant and help your daycare run smoothly.

1. Learn about daycare licensing requirements 

Daycare businesses often start small. You might transition from babysitting and nannying to owning your own childcare business. Making that transition requires you to be compliant with local and state regulations. 

To comply with your state's specific rules and regulations, check out Child Care Aware of America’s licensing guidelines for childcare and daycare providers. This resource allows you to research the requirements in your specific state and city. 

If the information for your state is unavailable, contact your state’s Department of Children and Family Services (DCFS) or equivalent agency. While the requirements will vary across the country, you typically need to meet specific education and training requirements to obtain a childcare license. 

For example, some states require that a childcare center director has a degree in child development or a related field, while others might require a Child Development Associate (CDA) credential or years of experience working with children. 

Your local Child Care Resource & Referral Agency (CCR&R) will play a significant role in the information you need. Use them as a resource to understand and remain compliant with all childcare regulations.

2. Write a daycare business plan

Writing a daycare business plan will provide a great advantage and guide you through the rest of the startup process. 

To start, decide on a name for your daycare as well as a mission statement. You'll also need to determine your marketing plan, organizational plan, staffing, operations, and budget.

Next, you will need to research the costs of successfully launching a profitable daycare business. Consider the financial aspect of your daycare startup: are you using your own money or seeking a small business loan? Have you looked into daycare grants ? 

Creating and setting financial goals is crucial to running a successful business. In business, everything costs money, so make realistic expectations and estimates.

For additional help, the U.S. Small Business Association provides detailed instructions on writing a general business plan.

3. Find a location for your daycare

Are you starting an in-home daycare ? Are you looking to rent an existing daycare center? Are you planning to start a daycare business from scratch with a new facility?

You’ll often hear the phrase “location, location, location” in real estate. Consider this when searching for your daycare facility location. Note that all families will likely have a preference on where to send their child. Some might choose a quiet suburb over a bustling city. A facility next to a highway might raise safety and security concerns for some families. Remember these factors when searching for a location that fits your business needs.

Additionally, check your city zoning laws and childcare licensing guidelines to ensure your daycare business location is compliant with all regulations.

4. Get insurance for your daycare business

Depending on the type and size of the daycare you're opening, you will need various insurance policies . 

Most states require that daycare facilities obtain a license from their state's Department of Health and Human Services (DHHS). Part of the licensing process includes getting liability insurance. Liability insurance protects you and your business if someone gets hurt on your property. It is essential when caring for other people’s children.

Other types of insurance that could be beneficial in running your business include workers’ compensation—if an employee is injured on the job—and commercial property insurance—if your daycare center or assets are damaged and need to be repaired or replaced.

Insurance can get complicated. Find out what coverage is required and check your local childcare provider licensing requirements for guidance.

5. Prepare your daycare facility

What do you need to open a daycare business? You'll need furniture and supplies if you're getting ready to open a daycare center. Use this list to guide you through your preparation.

Safety supplies:

• First aid kits
• Smoke detectors
• Carbon monoxide detectors
• Fire extinguishers
• Emergency preparedness kit
• Emergency plan

Cleaning supplies:

• Cleaning supplies (all-purpose cleaner, vacuum, rubber gloves, etc.)
• Bathroom supplies (sponges, bucket, mop, etc.)
• Hand sanitizer
• Sanitation plan

Furniture & equipment:

• Highchairs and/or boosters
• Nap mats and/or cribs
• Step stools
• Shelves and/or storage system

Play materials:

• Crib mobiles
• Stacking rings
• Nesting cups or boxes
• Large play vehicles
• Dolls and stuffed animals
• Musical instruments

Daycare technology:

• Attendance tracking
• Automated billing
• Daily event tracking and recording
• Digital check-in/check-out system

After getting the necessary supplies for your daycare facility, preparing the space also means ensuring it is childproofed. Having safety supplies and measures in place is an irreplaceable step, but you’ll need to take it further. Secure furniture and large appliances to the wall. Install covers on electrical outlets. Avoid keeping small items and toys around the facility to prevent choking.

When opening a daycare, the safety of the children comes first. So spend the time and use the proper resources to set up a safe, compliant daycare center.

6. Develop policies and procedures

Use childcare forms and templates to kick-start developing policies, procedures, and handbooks for your staff and families. 

Three important forms are daily report, staff evaluation, and enrollment forms. 

• Daily report forms allow the staff to communicate with the parents on their child's progress. 
• Staff evaluation forms help you monitor your employees' performance at your center and also provide an opportunity for you to support their professional development.
• Lastly, enrollment forms will typically be one of a parent's first interactions with your business. Carefully craft the messaging to demonstrate a welcoming, inclusive environment for families and their children.

As mentioned in the previous section, preparing your daycare facility also includes needing emergency and sanitation plans. You’ll want to develop a disaster or crisis management plan under the guidance of your local childcare licensing requirements. Your crisis management plan should include health, safety, privacy, and nutrition protocols.

7. Hire staff to help you run your daycare

A daycare center is only as good as its staff, so carefully consider your childcare hiring decisions.

Verify the daycare licensing requirements for staff ratios. The child-to-staff ratio ensures that all children receive adequate care, but depends on factors like the children's age and the daycare center's size. If you plan on running the daycare facility on your own, this will limit the number of children you can have in your facility. 

Additionally, you will need information on the licensing requirements for teachers’ educational backgrounds and other qualifications. Childcare staff may also be subject to criminal background checks and fingerprinting for further investigation. Therefore, verify references and education levels rigorously to avoid faux credentials.

8. Invest in childcare software

One of the best ways to start a successful daycare is to take advantage of the fantastic daycare technologies at your disposal. Streamlining your administrative tasks gives you more time to focus on providing families with a quality childcare experience. 

Brightwheel makes easy-to-use childcare software to help you manage your daycare and stay in touch with families. Your staff can use brightwheel to record and track daily events and activities , and parents can get real-time updates delivered to their mobile devices throughout the day.

Our powerful daycare app also offers secure, digital check-in/check-out and an automated paperless daycare billing system .

9. Market your daycare business and seek applicants

You'll need a marketing strategy for your childcare center that includes marketing collateral and an online presence. 

Here are some ideas to get the word out about your daycare:

• List your business in local childcare directories and participate in your community's daycare or preschool enrollment fairs. 
• Advertise through local businesses, parent groups, local events, and popular childcare blogs. 
• Try popular early education sites like Tinybeans and Winnie .
• Run a social media campaign focusing on your target population.
• Host a grand opening event to attract families. 

Once you’ve managed to fill your inaugural child roster, continue with ongoing marketing efforts so that you’ll always be building a customer base.

FAQs about starting a daycare center

Here are some frequently asked questions about starting a daycare center:

Can you open a daycare center from home?

Most states allow you to operate a daycare center from your home or private residence. Like commercial daycare centers, in-home daycare centers require a license from your state. The National Database of Child Care Licensing Regulations outlines each state's licensing policies and regulations. 

How much does it cost to get daycare licensing?

Daycare licensing fees vary from state to state, but they typically cost between $100 and $200. This cost does not include the expenses associated with any additional requirements like obtaining specific education, certification, or training requirements or making sure your facility or home is up to your state's standards.

How long does it take to get licensed?

The average time it takes to receive a daycare license varies by location but can take several months. However, this process can take longer if you lack the proper experience or documentation to fulfill your state’s requirements.

Are daycare centers profitable?

Your daycare center's profitability depends on many aspects of your business including your location, operating costs, tuition rates, and employee compensation. Generally, daycare centers in areas with higher costs of living can typically charge more for tuition. 

How much can you charge?

The average cost of center-based daycare in the United States is $10,000 - $12,000 per year. However, the price you charge for childcare will depend on numerous factors, including business location, local rates, average state tuition, and the child’s age. 

Your rates can also fluctuate based on what kind of child care you provide and whether you offer part-time, full-time, or after school care. 

How much does it cost to get insured?

The cost of business insurance varies based on the type of coverage policy. On average, you’ll pay the following premiums for business insurance:

• Business owner’s policy (BOP) = $84/month
• General liability insurance = $53/month
• Business property insurance = $63/month
• Professional liability insurance = $46/month
• Workers’ compensation = $86/month
• Small business health insurance = $623/month, single coverage

What makes a daycare attractive to families?

When choosing a daycare center, families look for high-quality childcare programs that have the below characteristics: 

• Small class sizes with low child-to-teacher ratios
• Qualified and well-trained childcare staff with low turnover
• Highly experienced childcare director
• A safe and hygienic learning environment with age-appropriate curriculum
• Adequate learning materials and resources and nutritious foods
• Active family engagement
• Accreditation by relevant education associations

Learn more about daycare licensing regulations in your state

Daycare licensing requirements vary by state. Consult with your state's childcare licensing department or check out our guides below for more information:

• Connecticut
• Massachusetts
• Mississippi
• New Hampshire
• North Carolina
• North Dakota
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Washington, D.C.
• West Virginia

Take the first step to opening a daycare center today

Now that you know the general process of opening a daycare center, research the specific requirements for your state. A lot of work goes into opening a daycare business, but the time, money, and effort you invest will be returned to you through the change you bring to the families and children in your community.

Brightwheel is the complete solution for early education providers, enabling you to streamline your center’s operations and build a stand-out reputation. Brightwheel connects the most critical aspects of running your center—including sign in and out, parent communications, tuition billing, and licensing and compliance—in one easy-to-use tool, along with providing best-in-class customer support and coaching. Brightwheel is trusted by thousands of early education centers and millions of parents. Learn more at mybrightwheel.com .

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A list of everything you need to start an early education program.

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Find Trusted Daycares Near Me in Moscow, ID

We have 60 daycares in Moscow, ID! Compare and find the best daycare to fit your needs.

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Palouse early learning center, mais daycare, ms. lourdes family day care, honey bunch of stink weeds, smallfreckles home day care.

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Daycares in Moscow, ID

1150 Alturas Dr Ste 107 , Moscow , ID

Costimate: $389/wk

Grandma bea's.

807 W C Street , Moscow , ID

Starting at $440/wk

Lori's little learning center.

379 Meadowlark Ln , Moscow , ID

Costimate: $222/wk

Small steps day care.

715 Travois Way , Moscow , ID

ST ROSE'S SCHOOL

412 N Howard St , Moscow , ID

Costimate: $327/wk

Head start preschool.

514 Northwood Dr , Moscow , ID

New Discoveries Playschool LLC

602 E E St , Moscow , ID

UNIVERSITY OF IDAHO CHILDREN'S CENTER INC

421 W Sweet Ave , Moscow , ID

White Pine Montessori of Moscow LLC

103 N Jackson St , Moscow , ID

Moore Care Per Person

1029 Colt Rd , Moscow , ID

Moscow Day School Inc

405 S Van Buren St , Moscow , ID

Retta's Day Care Center Inc

715 Rachel St , Troy , ID

Costimate: $207/wk

6610 W 73rd Ave , Arvada , CO

Starting at $40/day

1108 Basswood Pl. , Wellington , FL

Starting at $200/wk

938 East 3385 South , Millcreek , UT

Starting at $5/hr

2834 Rosemary Ln , Falls Church , VA

Starting at $405/wk

Blair Care Children's Center

12 Tanglewood Lane , Freeport , NY

Starting at $250/wk

Mother Goose Daycare by Lisa

24266 Mccoy Rd , Lake Forest , CA

Little Footsteps

3945 Kaualio Place , Honolulu , HI

Costimate: $240/wk

Aunties Bee Happy Daycare

2617 Lunt Ave. , Chicago , IL

Showing 1 - 20 of 60

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Faqs for finding daycares near you in moscow, id, what are the benefits of daycare near me in moscow, id, what services do daycare centers offer near me in moscow, id, what should i look for in a daycare center near me in moscow, id, what questions should i ask when looking for a daycare for my child near me in moscow, id.

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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1 During congestion,  Magenta  customers using >100GB/mo. may notice reduced speeds until next bill cycle due to data prioritization; video typically streams on smartphone/tablet in SD quality.  Essentials  customers may notice speeds lower than other customers and further reduction if using >50GB/mo., due to data prioritization. Video typically streams on smartphone/tablet in SD quality;  Magenta Max, Go5G Plus, & Go5G Next:  activate up to 4K UHD streaming on capable device, or video typically streams in SD.  Go5G:  During congestion, customers on this plan using >100GB/mo. may notice reduced speeds until next bill cycle due to data prioritization. Activate up to HD streaming on capable device, or video typically streams in SD.  Go5G Next : Qualifying new financed device & Go5G Next plan req'd. Upgrade qualifying device in good condition after 6+ months with 50% paid off; upgrade ends current financing & any promo credits. Not combinable with some offers.

2 5G:  Capable device req'd; coverage not available in some areas. Some uses may require certain plan or feature; see plan for details.  Scam Shield:  Capable device req’d. Turning on Scam Block might block calls you want; disable any time.  Taxes & fees:  Sales tax and regulatory fees included in monthly rate plan price.

See full terms

Essentials : Credit approval, deposit, and, in stores & on customer service calls, $35 device connection charge due at sale. Monthly Regulatory Programs (RPF) & Telco Recovery Fee (TRF) totaling $3.49 per voice line ($0.50 for RPF & $2.99 for TRF) and $1.40 per data only line ($0.12 for RPF & $1.28 for TRF) applies; taxes/fees approx. 4-38% of bill. Capable device required for some features. Not combinable with certain offers. Switching plans may cause you to lose current plan/feature benefits; ask a rep for details. Max 6 lines. Plan not available for hotspots and some other data-first devices.  Unlimited talk & text  features for direct communications between 2 people; others (e.g., conference & chat lines, etc.) may cost extra. Some messages, including those over 1MB, use data and may be unavailable internationally.  Roaming:  U.S. roaming and on-network data allotments differ: includes 200MB roaming. High-speed data is US only; in Canada/Mexico, unlimited at up to 128kbps; additional purchase required for data elsewhere. Calls from Simple Global countries, including over Wi-Fi, are $.25/min. (no charge for Wi-Fi calls to US, Mexico and Canada). Service may be terminated or restricted for excessive roaming. Not for extended international use; you must reside in the U.S. and primary usage must occur on our U.S. network. Device must register on our U.S. network before international use.  Video streams  at up to 2.5Mbps (SD). Optimization may affect speed of video downloads; does not apply to video uploads. For best performance, leave any video streaming applications at their default automatic resolution setting.  Tethering  at max 3G speeds. For customers using >50GB/mo., primary data usage must be on smartphone or tablet. Smartphone/tablet usage is prioritized over Mobile Hotspot (tethering) usage, which may result in higher speeds for data used on smartphones and tablets.  AutoPay discount requires bank account or debit card, up to 6 lines, otherwise $5/mo per line. May not be reflected on 1st bill. 

Magenta:  Credit approval, deposit, and, in stores & on customer service calls, $35 device connection charge due at sale. U.S. roaming and on-network data allotments differ: includes 200MB roaming. Unlimited talk & text features for direct communications between 2 people; others (e.g., conference & chat lines, etc.) may cost extra. Unlimited high-speed data US only. In Canada/Mexico, up to 5GB high-speed data then unlimited at up to 128kbps. Not available for hotspots and some other data-first devices.  Video streams  at up to 2.5Mbps (SD). Optimization may affect speed of video downloads; does not apply to video uploads. For best performance, leave any video streaming applications at their default automatic resolution setting.  Netflix:  Offer subject to change. Receive Netflix Basic (1-screen, up to $9.99/mo. value) while you maintain 2+ qual'g Magenta lines in good standing. Alternative discount toward different Netflix streaming plans may apply. Not redeemable or refundable for cash. Cancel Netflix anytime. Netflix Terms of Use apply: www.netflix.com/termsofuse. 1 offer per T‑Mobile account; for existing Netflix members it may take 1-2 bill cycles during which time you will continue to be charged separately for any existing Netflix account. If you link an existing Netflix account to this offer, terminating the qualifying line(s) will not automatically cancel your Netflix membership, and Netflix will automatically resume charging your existing payment method that they have on file. See  T‑Mobile.com/netflix  for add'l info. Like all plans, features may change or be discontinued at any time; see T‑Mobile Terms and Conditions at  T‑Mobile.com  for details.  Tethering:  5GB high-speed data then unlimited on our network at max 3G speeds. For customers using >50GB/mo., primary data usage must be on smartphone or tablet. Smartphone usage is prioritized over Mobile Hotspot (tethering) usage, which may result in higher speeds for data used on smartphone.  AutoPay discount requires bank account or debit card, up to 8 lines, otherwise $5/mo per line. May not be reflected on 1st bill.  Int’l Roaming in Simple Global Destinations:  Calls, including over Wi-Fi, are $.25/min. (no charge for Wi-Fi calls to US, Mexico and Canada). Up to 5GB high-speed data in select Central European countries; otherwise standard speeds approx. 256 Kbps.  Not for extended international use; you must reside in the U.S. and primary usage must occur on our network.  Device must register on our network before international use. Service may be terminated or restricted for excessive roaming.  Coverage  not available in some areas; we are not responsible for our partners’ networks.  In-Flight Connection:  On select flights on select U.S.-based airlines; Wi-Fi Calling functionality, valid e911 address, & 1 prior Wi-Fi call w/ current SIM card req'd for messaging. Streaming where available.  Stateside Int’l Talk:  Calls must originate on T‑Mobile’s U.S. network or in Canada/Mexico. Rates and included countries vary and may change. 

Magenta MAX:  Credit approval, deposit, and, in stores & on customer service calls, $35 device connection charge due at sale. U.S. roaming and on-network data allotments differ: includes 200MB roaming. Unlimited talk & text features for direct communications between 2 people; others (e.g., conference & chat lines, etc.) may cost extra. Unlimited high-speed data US only. In Canada/Mexico, up to 5GB high-speed data then unlimited at up to 256kbps. Not available for hotspots and some other data-first devices. Capable device required for some features. Activation required to deliver video streams at speeds that provide up to  Ultra HD video  capability (max 4K); some content providers may not stream their services in UHD. May affect speed of video downloads; does not apply to video uploads.  Apple TV+:  Offer subject to change. Receive Apple TV+ (up to $4.99/mo. value) while you maintain 1 qualifying Magenta Max line in good standing. Valid only for Apple TV+ in the United States. Complete registration with Apple in the Apple TV app; requires iTunes/Apple Media Services account. Terms and Apple Privacy Policy apply; see the applicable terms at  https://www.apple.com/legal/internet-services/itunes/us/terms.html . Must be 13+. Only one offer per account; may take 1-2 bill cycles. Apple TV+ is a registered trademark of Apple Inc. Apple is not a sponsor of this promotion.  Netflix:  Offer subject to change. Receive Netflix Basic (1-screen, up to $9.99/mo. value) while you maintain 1 qualifying Magenta Max line in good standing or Netflix Standard (2-screen within a household, up to $15.49/mo. value) while you maintain 2+ qualifying lines in good standing. Alternative discount toward different Netflix streaming plans may apply. Not redeemable or refundable for cash. Cancel Netflix anytime. Netflix Terms of Use apply:  www.netflix.com/termsofuse . 1 offer per T‑Mobile account; for existing Netflix members it may take 1-2 bill cycles during which time you will continue to be charged separately for any existing Netflix account. If you link an existing Netflix account to this offer, terminating the qualifying line(s) will not automatically cancel your Netflix membership, and Netflix will automatically resume charging your existing payment method that they have on file. See  T‑Mobile.com/netflix  for add'l info. Like all plans, features may change or be discontinued at any time; see T‑Mobile Terms and Conditions at  T‑Mobile.com  for details.  Tethering:  40GB high-speed data then unlimited on our network at max 3G speeds. Service may be terminated or restricted for excessive roaming. For customers using >50GB/mo., primary data usage must be on smartphone or tablet. Smartphone and tablet usage is prioritized over Mobile Hotspot Service (tethering) usage, which may result in higher speeds for data used on smartphones and tablets.  AutoPay discount requires bank account or debit card, up to 8 lines, otherwise $5/mo per line .  May not be reflected on 1st bill.  Int’l Roaming in Simple Global Destinations:  Calls, including over Wi-Fi, are $.25/min. (no charge for Wi-Fi calls to US, Mexico and Canada). Up to 5GB high-speed data, then unlimited at up to 256 Kbps.  Not for extended international use; you must reside in the U.S. and primary usage must occur on our network.  Device must register on our network before international use. Service may be terminated or restricted for excessive roaming.  Coverage  not available in some areas; we are not responsible for our partners’ networks.  Scam Shield:  Capable device req’d. Turning on Scam Block might block calls you want; disable any time.  In-Flight Connection:  On select flights on select U.S.-based airlines; Wi-Fi Calling functionality, valid e911 address, & 1 prior Wi-Fi call w/ current SIM card req'd for messaging. Streaming where available.  Stateside Int’l Talk:  Calls must originate on T‑Mobile’s U.S. network or in Canada/Mexico. Rates and included countries vary and may change.

Go 5G: $35 device connection charge due at sale. Credit approval & deposit may be required. U.S. roaming and on-network data allotments differ: includes 200MB roaming. Unlimited talk & text features for direct communications between 2 people; others (e.g., conference & chat lines, etc.) may cost extra. Unlimited high-speed data US only. Not available for hotspots and some other data-first devices. Activation required to deliver video streams at speeds that provide up to *HD video  capability (max 720p); some content providers may not stream their services in HD. May affect speed of video downloads; does not apply to video uploads .   Netflix:  Offer subject to change. Receive Netflix Basic (1-screen, up to $9.99/mo. value) while you maintain 2+ qual'g Go5G lines in good standing. Alternative discount toward different Netflix streaming plans may apply. Not redeemable or refundable for cash. Cancel Netflix anytime. Netflix Terms of Use apply: www.netflix.com/termsofuse. 1 offer per T‑Mobile account; for existing Netflix members it may take 1-2 bill cycles during which time you will continue to be charged separately for any existing Netflix account. If you link an existing Netflix account to this offer, terminating the qualifying line(s) will not automatically cancel your Netflix membership, and Netflix will automatically resume charging your existing payment method that they have on file. See T‑Mobile.com/netflix for add'l info. Like all plans, features may change or be discontinued at any time; see T‑Mobile Terms and Conditions at T‑Mobile.com for details.  Tethering:  15GB high-speed data then unlimited on our network at max 3G speeds. For customers using >50GB/mo., primary data usage must be on smartphone or tablet. Smartphone usage is prioritized over Mobile Hotspot (tethering) usage, which may result in higher speeds for data used on smartphone.  AutoPay   discount  ** requires bank account or debit card, up to 8 lines, otherwise $5/mo per line. May not be reflected on 1st bill.  Int’l Roaming in Simple Global Destinations:  Calls, including over Wi-Fi, are $.25/min. (no charge for Wi-Fi calls to US, Mexico and Canada). In Canada/Mexico, up to 10GB high-speed data then unlimited at up to 128kbps. Up to 5GB high-speed data in select Central European countries; otherwise, standard speeds approx. 256 Kbps. Video typically streams at up to 2.5 Mbps (SD), where available.  Not for extended international use; you must reside in the U.S. and primary usage must occur on our network.  Device must register on our network before international use. Service may be terminated or restricted for excessive roaming.  Coverage  not available in some areas; we are not responsible for our partners’ networks.  In-Flight Connection:  On select flights on select U.S.-based airlines; Wi-Fi Calling functionality, valid e911 address, & 1 prior Wi-Fi call w/ current SIM card req'd for messaging. Streaming where available.

Go 5G Plus: $35 device connection charge due at sale. Credit approval & deposit may be required. U.S. roaming and on-network data allotments differ: includes 200MB roaming. Unlimited talk & text features for direct communications between 2 people; others (e.g., conference & chat lines, etc.) may cost extra. Unlimited high-speed data in US only. Not available for hotspots and some other data-first devices. Capable device required for some features. Activation required to deliver video streams at speeds that provide up to *Ultra HD video  capability (max 4K); some content providers may not stream their services in UHD. May affect speed of video downloads; does not apply to video uploads.  Apple TV+:  Offer subject to change. Receive Apple TV+ (up to $4.99/mo. value) while you maintain 1 qualifying Go5G Plus line in good standing. Valid only for Apple TV+ in the United States. Complete registration with Apple in the Apple TV app; requires iTunes/Apple Media Services account. Terms and Apple Privacy Policy apply; see the applicable terms at  https://www.apple.com/legal/internet-services/itunes/us/terms.html . Must be 13+. Only one offer per account; may take 1-2 bill cycles. Apple TV+ is a registered trademark of Apple Inc. Apple is not a sponsor of this promotion.  Netflix:  Offer subject to change. Receive Netflix Basic (1-screen, up to $9.99/mo. value) while you maintain 1 qualifying Go5G Plus line in good standing or Netflix Standard (2-screen within a household, up to $15.49/mo. value) while you maintain 2+ qualifying lines in good standing. Alternative discount toward different Netflix streaming plans may apply. Not redeemable or refundable for cash. Cancel Netflix anytime. Netflix Terms of Use apply:  www.netflix.com/termsofuse . 1 offer per T‑Mobile account; for existing Netflix members it may take 1-2 bill cycles during which time you will continue to be charged separately for any existing Netflix account. If you link an existing Netflix account to this offer, terminating the qualifying line(s) will not automatically cancel your Netflix membership, and Netflix will automatically resume charging your existing payment method that they have on file. See T‑Mobile.com/netflix for add'l info. Like all plans, features may change or be discontinued at any time; see T‑Mobile Terms and Conditions at T‑Mobile.com for details.  Tethering:  50GB high-speed data then unlimited on our network at max 3G speeds. Service may be terminated or restricted for excessive roaming. For customers using >50GB/mo., primary data usage must be on smartphone or tablet. Smartphone and tablet usage is prioritized over Mobile Hotspot Service (tethering) usage, which may result in higher speeds for data used on smartphones and tablets.  AutoPay discount requires bank account or debit card, up to 8 lines, otherwise $5/mo per line. May not be reflected on 1st bill.  Int’l Roaming in Simple Global Destinations:  Calls, including over Wi-Fi, are $.25/min. (no charge for Wi-Fi calls to US, Mexico, and Canada). In Canada/Mexico, up to 15GB high-speed data then unlimited at up to 256kbps. In Simple Global destinations, up to 5GB high-speed data, then unlimited at up to 256 Kbps. Video typically streams at up to 2.5 Mbps (SD), where available.  Not for extended international use; you must reside in the U.S. and primary usage must occur on our network.  Device must register on our network before international use. Service may be terminated or restricted for excessive roaming.  Coverage  not available in some areas; we are not responsible for our partners’ networks.  Scam Shield:  Capable device req’d. Turning on Scam Block might block calls you want; disable any time.  In-Flight Connection:  On select flights on select U.S.-based airlines; Wi-Fi Calling functionality, valid e911 address, & 1 prior Wi-Fi call w/ current SIM card req'd for messaging. Streaming where available.

Go5G Next General Terms:  $35 device connection charge due at sale. Credit approval & deposit may be required. U.S. roaming and on-network data allotments differ: includes 200MB roaming. Unlimited talk & text features for direct communications between 2 people; others (e.g., conference & chat lines, etc.) may cost extra. Unlimited high-speed data in US only. Not available for hotspots and some other data-first devices. Capable device required for some features. Activation required to deliver video streams at speeds that provide up to Ultra HD video capability (max 4K); some content providers may not stream their services in UHD.  May affect speed of video downloads; does not apply to video uploads.  Upgrade-ready Every Year:  Available only for qualifying new financed devices purchased on Go5G Next plan; existing devices are not eligible.  Upgrade qualifying device after at least 6 months and when 50% of device cost has been paid.  Trade-in device must be in good working order.  You must be current with your scheduled financing and wireless service payments.  Upgrading ends current financing and any device promotion or deposit reimbursement credits and we will pay the remaining balance of your then-existing finance agreement; trade-in satisfies early upgrade and not valued separately. Not combinable with some offers (e.g. JUMP). Upgrade benefit is subject to cancellation or change.  Tethering:  50GB high-speed data then unlimited on our network at max 3G speeds. Service may be terminated or restricted for excessive roaming. For customers using >50GB/mo., primary data usage must be on smartphone or tablet. Smartphone and tablet usage is prioritized over Mobile Hotspot Service (tethering) usage, which may result in higher speeds for data used on smartphones and tablets. AutoPay Pricing for voice lines 1-8. AutoPay discount requires bank account or debit card, otherwise $5 more/line/mo. May not be reflected on first bill.   Int’l Roaming:  Calls, including over Wi-Fi, are $.25/min. in 215+ countries and destinations (no charge for Wi-Fi calls to US, Mexico, and Canada). In Canada/Mexico, up to 15GB high-speed data then unlimited at up to 256kbps. In 215+ countries and destinations, up to 5GB high-speed data, then unlimited at up to 256 Kbps. Video typically streams at up to 2.5 Mbps (SD), where available. Not for extended international use; you must reside in the U.S. and primary usage must occur on our network. Device must register on our network before international use. Service may be terminated or restricted for excessive roaming.   Apple TV:  Offer subject to change. Receive Apple TV+ (up to $4.99/mo. value) while you maintain 1 qualifying Go5G Next line in good standing. Valid only for Apple TV+ in the United States. Complete registration with Apple in the Apple TV app; requires iTunes/Apple Media Services account. Terms and Apple Privacy Policy apply; see the applicable terms at  https://www.apple.com/legal/internet-services/itunes/us/terms.html . Must be 13+. Only one offer per account; may take 1-2 bill cycles. Apple TV+ is a registered trademark of Apple Inc. Apple is not a sponsor of this promotion.  Netflix:  Offer subject to change. Receive Netflix Basic (1-screen, up to $9.99/mo. value) while you maintain 1 qualifying Go5G Next line in good standing or Netflix Standard (2-screens within a household, up to $15.49/mo. value) while you maintain 2+ qualifying lines in good standing. Alternative discount toward different Netflix streaming plans may apply. Not redeemable or refundable for cash. Cancel Netflix anytime. Netflix Terms of Use apply:  www.netflix.com/termsofuse . 1 offer per T‑Mobile account; for existing Netflix members it may take 1-2 bill cycles during which time you will continue to be charged separately for any existing Netflix account. If you link an existing Netflix account to this offer, terminating the qualifying line(s) will not automatically cancel your Netflix membership, and Netflix will automatically resume charging your existing payment method that they have on file. See T‑Mobile.com/netflix for add'l info.  Like all plans, features may change or be discontinued at any time; see T‑Mobile Terms and Conditions at T‑Mobile.com for details.  Coverage  not available in some areas; we are not responsible for our partners’ networks. Scam Shield: Capable device req’d. Turning on Scam Block might block calls you want; disable any time. In-Flight Connection: On select flights on select U.S.-based airlines; Wi-Fi Calling functionality, valid e911 address, & 1 prior Wi-Fi call w/ current SIM card req'd for messaging. Streaming where available.

Switch to T‑Mobile, and we’ll help pay off your phone—up to $800.

Via virtual prepaid Mastercard. Card typically takes 15 days.  Get full terms

Over $270 worth of benefits—every month.

With Go5G Next and Go5G Plus family plans, you’ll get amazing benefits like Netflix ON US, voice and data in Canada and Mexico. Plus, coverage in 215+ countries and destinations, inflight Wi-Fi, and more.

Based on the  retail value of monthly benefits  available with Go5G Next and Go5G Plus family plans, like entertainment, travel benefits, and scam call protection. See plan details on this page above for full included benefits . Some benefits may require activation.

Have questions?

Plus, we’re giving you more., more 5g coverage, experience america's most awarded 5g network..

T‑Mobile is America’s most awarded 5G network with the most individual awards for nationwide 5G metrics in public reports from independent industry experts.

MORE SAVINGS

Families save 20% vs. at&t and verizon..

With 3 lines on Essentials or Go5G Plus. Savings with T‑Mobile 3rd line free via mo. bill credits vs. comparable plans. Get full terms

MORE COOL STUFF

More entertainment, travel, and plan benefits than ever before..

Get the Samsung Galaxy S24 ON US. No trade-in required.

Get up to $800 off via 24 monthly bill credits when you add a line on a Go5G Plus or Go5G Next rate plan. Plus, get a $200 rebate via virtual prepaid card to spend at T‑Mobile with a qualifying port-in.

Allow 8 weeks for virtual prepaid card. If you cancel before 24 credits, credits stop & balance on required finance agreement may be due; contact us . For well-qualified customers; plus tax.  Get full terms

PACK YOUR BAGS

Our travel benefits just got even better..

Now customers get 5GB of high-speed data in select countries and full-flight Wi-Fi and streaming options with Go5G—along with AAA for a year on us and more great travel benefits.

Up to 5GB high-speed data in select Central European countries; otherwise, std. speeds approx. 256 Kbps. 4 full flights per year with certain plans. One year membership on us requires active voice line on eligible plan, registration, and validation.  See full terms

Get up to $800 to keep the phone you love.

Add four new lines for just $26.25/line with Autopay when you switch and bring your own eligible phone.

Limited-time offer; subject to change. Plus taxes & fees; with AutoPay. For well-qualified customers. Card typically takes 15 days.  See full terms

NETWORK PASS

Try our network free for 3 months..

See how T‑Mobile’s network stacks up against yours with a free trial—before you switch. Get started now.

Non-T‑Mobile customers only; 1 trial per user. Compatible unlocked device req'd.  Get full terms

Got questions about 3rd line offers?

New customers activating on an eligible voice plan, including Essentials™, Go5G, and Go5G Plus, can get their 3rd voice line FREE. New customers activating on Go5G Next can get their 3rd line discounted to just $10 (with AutoPay & eligible payment method).

To qualify for a free or discounted voice line, you must:

• 3rd Line Free: Essentials™, Go5G, or Go5G Plus.
• Discounted 3rd Line: Go5G Next.
• The bill credit will be applied monthly to the eligible line. Customers on plans with additional taxes and fees (e.g. Essentials™) will receive credits for the monthly service price of their line but will be responsible for all applicable taxes and fees.
• Your new lines must remain active to continue receiving bill credits.
• A maximum of 1 free or discounted line may be added per account for this promotion.

You can keep the promotional pricing as long as you maintain an eligible rate plan. On Go5G Next, you must also be enrolled in AutoPay with an eligible payment method to maintain the $10 price point.

Yes, you may combine this offer with most other promotions, including device promotions, Carrier Freedom, or Keep and Switch. Talk to us to ensure you meet the requirements for both promotions. This promotion cannot be combined with other free or discounted voice line offers.

Yes, this promotion can be combined with Carrier Freedom and Keep and Switch. Learn more here . 

No, this promotion is only available with qualifying regular-rate voice plans. 

Yes, your free or discounted line must be a voice line. Other line types are not eligible for this promotion.

This offer has a maximum of one free or discounted voice line per account

You’re never required to use AutoPay, but you’ll get a monthly discount on select voice plans if you sign up for AutoPay with an eligible payment method.

AutoPay is not required to receive the promotion.

On Go5G Next, you will need to sign up for AutoPay with an eligible payment method to get the discounted line for $10 (via $30 bill credit and $5 AutoPay discount). If you do not wish to sign up for AutoPay with an eligible payment method, your discounted line on Go5G Next will be $15 per month (via $30 monthly bill credit).

In most cases, you’ll see your promotional credits on your first bill. 

Got questions?

T-Mobile plans for consumers and small businesses that won’t slow down your data based on how much of it you use include: Go5G Next, Go5G Plus™, Go5G Business Next, Go5G Business Plus, Magenta® MAX, and Business Unlimited Ultimate. Plans with Unlimited Premium Data are unlike most of today’s plans that are built for lower capacity 4G LTE networks—across all wireless providers, you could experience a lower network priority if you’ve used more than 50GB of data in a billing cycle.

In the past few years, AT&T and Verizon quietly increased device contracts from two years to three — with no shorter option if you want their best phone deal. Our best Go5G plans have benefits that give you the freedom to upgrade when you want. Upgrade as early as every year with Go5G Next or be upgrade ready every two years (also referred to as “New in Two”) with Go5G Plus.

Plus with Go5G Next, customers only have to pay off half of their phone—and they still get to trade in that phone, in good condition, for a new one. Say a customer picks up a $1000 smartphone. Once they pay off half ($500), that customer can then trade it in toward a new one, and T-Mobile covers the remaining $500 on the old phone. And new and existing customers on Go5G Next always get the same great deals whenever they’re ready to upgrade.

1.       Switch to a plan or feature that includes Yearly Upgrade. Score a new phone on T-Mobile’s no-interest phone payment plan (EIP) with any eligible offer. Right now, that’s a free 5G smartphone for both new and existing customers with eligible trade-in via 24 monthly bill credits plus tax.

2.       After 6+ months, and half of your phone is paid off—the average customer does this within 12 months of getting a device—you’re ready to upgrade!

3.       Simply trade in your old phone in good condition (T-Mobile pays off your remaining EIP!) and upgrade to the latest phone on a new EIP.

You will automatically become eligible for a yearly upgrade when you activate or have a voice line on Go5G Next, purchase a new phone on T-Mobile’s no-interest phone payment plan (EIP) and keep it active for at least six months.  When you have paid off 50% of cost of the phone, simply trade in your device in good working condition and T-Mobile will cover your remaining device payments up to half of your device cost.  Your Yearly Upgrad benefit allows you to take advantage of any eligible in-market phone promotions. And new and existing customers always get the same great phone deals.

It means that existing customers on qualifying plans ALWAYS get the same great device deals as new customers switching to T-Mobile on those plans. This is a promise, not a limited time offer. So whether you’re just joining T-Mobile or have been with us for years, whenever you’re ready to upgrade, you’ll have access to the same great phone deals now … and always in the future. It’s the fair treatment you can count on from the Un-carrier. 

Go5G Plus and Go5G Next customers are automatically enrolled in this benefit – no action required!

In the past few years, AT&T and Verizon quietly increased device contracts from two years to three — with no shorter option if you want their best phone deal. Our Go5G plans have benefits that give you the freedom to upgrade when you want. Upgrade as early as every year with Go5G Next or be upgrade ready every two years (also referred to as “New in Two”) with Go5G Plus.

All taxes, fees, and surcharges are already included in the cost of your plan, so you'll never be surprised by your bill.

All our phone plans include unlimited talk, text, and data on our 5G network. Check out our 5G coverage map to see if 5G is available in your area. A 5G-capable device is required to receive 5G network access. Coverage is not available in some areas, and some uses may require certain plans or features.

Netflix Standard with ads is included at no additional cost on the following plans: any Go5G™ or Magenta® plan with two or more lines, any Go5G Next, Go5G Plus™ or Magenta® MAX plan, including Military, 55, and First Responder plans. Lines must be in good standing for offer. Get more details at  https://www.t-mobile.com/offers/netflix-on-us

For customers who are interested in select older rate plans, we continue to make them available for a limited time. These plans are known as heritage plans. Details on T-Mobile mobile internet heritage plans are available  here.  Details on Sprint heritage plans are available  here.

What is Price Lock?

For information on our Price Lock guarantee, see our Price Lock FAQ page  here

Get one FREE.

Contact us before cancelling service to continue remaining bill credits, or credits stop & balance on required finance agreement is due (e.g., $799.99 – Galaxy S23 128GB). Tax on pre-credit price due at sale. Limited-time offer; subject to change. Qualifying credit & service (Magenta MAX or other premium data plan) required. If you have cancelled lines in past 90 days, you may need to reactivate them first. $35 device connection charge due at sale. Up to $800 via bill credits; must be active and in good standing to receive credits; allow 2 bill cycles. Max 4 discounted devices/account. May not be combinable with some offers or discounts.

Magenta® MAX, our best plan ever.

Magenta MAX General Terms:  Credit approval, deposit, in stores & on customer service calls, $35 assisted or upgrade support charge may be required. U.S. roaming and on-network data allotments differ: includes 200MB roaming. Unlimited talk & text features for direct communications between 2 people; others (e.g., conference & chat lines, etc.) may cost extra. Unlimited high-speed data US only. In Canada/Mexico, up to 5GB high-speed data then unlimited at up to 256kbps. Not available for hotspots and some other data-first devices. Capable device required for some features. Activation required to deliver video streams at speeds that provide up to  Ultra HD video  capability (MAX 4K); some content providers may not stream their services in UHD. May affect speed of video downloads; does not apply to video uploads. Netflix: Receive Netflix Standard (2-screens within a household, up to $15.49/mo. value) while you maintain 2+ qualifying Magenta Max lines in good standing. Netflix account & compatible device required. Alternative discount toward different Netflix streaming plans may apply. Not redeemable or refundable for cash; cannot be exchanged for Netflix gift subscriptions. Cancel Netflix anytime. Netflix Terms of Use apply: www.netflix.com/termsofuse . 1 offer per T‑Mobile account, may take 1-2 bill cycles. Like all plans, features may change or be discontinued at any time; see T‑Mobile Terms and Conditions at  T‑Mobile.com  for details.  Tethering:  40GB high-speed data then unlimited on our network at MAX 3G speeds. Service may be terminated or restricted for excessive roaming. For the small fraction of customers using >50GB/mo., primary data usage must be on smartphone or tablet. Smartphone and tablet usage is prioritized over Mobile Hotspot Service (tethering) usage, which may result in higher speeds for data used on smartphones and tablets.  AutoPay discount  requires bank account or debit card, up to 8 lines, otherwise $5/mo per line. May not be reflected on 1st bill.  Int’l Roaming:  Usage may be taxed in some countries. Calls from Simple Global countries, including over Wi-Fi, are $.25/min. (no charge for Wi-Fi calls to US, Mexico and Canada). Standard speeds approx. 256 Kbps.  Not for extended international use; you must reside in the U.S. and primary usage must occur on our network.  Device must register on our network before international use. Service may be terminated or restricted for excessive roaming. Coverage not available in some areas; we are not responsible for our partners’ networks.  Scam Shield:  Capable device req’d. Turning on Scam Block might block calls you want; disable any time.  Gogo:  on U.S.-based airlines; Wi-Fi Calling functionality, valid e911 address, & 1 prior Wi-Fi call w/ current SIM card req’d for messaging.  Stateside Int’l Talk:  Calls must originate on T‑Mobile's U.S. network or in Canada/Mexico. Rates and included countries vary and may change.

4 New Lines: Limited-time offer, subject to change. $35 device connection charge due at sale. Capable device required for some features. Not combinable with certain offers. Switching plans may cause you to lose current plan/feature benefits; ask a rep for details. Max 6 lines. Plan not available for hotspots and some other data-first devices. Calls from Simple Global countries, including over Wi-Fi, are $.25/min. (no charge for Wi-Fi calls to US, Mexico and Canada). Service may be terminated or restricted for excessive roaming. Not for extended international use; you must reside in the U.S. and primary usage must occur on our U.S. network. Device must register on our U.S. network before international use.  Tethering at max 3G speeds. For customers using >50GB/mo., primary data usage must be on smartphone or tablet. Smartphone/tablet usage is prioritized over Mobile Hotspot (tethering) usage, which may result in higher speeds for data used on smartphones and tablets. AutoPay Pricing for lines 1-6. AutoPay discount requires bank account or debit card, otherwise $5 more/line/mo. May not be reflected on first bill. See plan for full details.

$800 Offer:  Limited time offer; subject to change. Qualifying device, credit, service, and port-in (Verizon, AT&T, Spectrum, Claro, Xfinity, Liberty, or US Cellular) required. You must unlock device before port-out; ask us how. Device balance (incl. lease purchase option) up to $800 paid by virtual prepaid MasterCard ( no cash access & expires in 6 months ) which you can use online or in-store via accepted mobile payment apps, typically within 15 days. Tax excluded. Submit proof of balance & 90+ days in good standing with carrier & device within 30 days of port-in and be active and in good standing when processed; allow up to 15 days. Devices previously used for Keep & Switch are not eligible. We might ask for more information. Up to 5 lines. One offer per subscriber. T‑Mobile Prepaid MasterCard is rebate/reimbursement or exchange on port-in; for any tax implications, consult a tax advisor. No money has been paid by you for the card. Card is issued by Sunrise Banks N.A., Member FDIC, pursuant to a license from Mastercard International Incorporated. Mastercard is a registered trademark of Mastercard International Incorporated. Use of this card constitutes acceptance of the terms and conditions stated in the Cardholder Agreement.

Get home internet for $30/month with Go5G Next or Go5G Plus

Price Lock  guarantees new accounts with qualifying service can keep their regular monthly rate plan price for current unlimited internet data; excludes taxes/fees, select limited-time promotions, per-use charges, third-party services, devices and network management practices. Savings via $20 monthly bill credit. Limited-time offer; subject to change. Qualifying credit, voice line, and unlimited Home Internet line required. Existing customers must visit myT-Mobile.com. Credits may take up to 2 bill cycles;  credits will stop if you cancel any lines or change plans . Limit 1/account. May not be combined with some offers or discounts (e.g., Price Lock); see FAQs at T‑Mobile.com/plans. 5G Home Internet General Terms: During congestion, Home Internet customers may notice speeds lower than other customers due to data prioritization. Not available in all areas. $35 device connection charge due at sale. Plus taxes & fees for accounts currently paying for a T‑Mobile wireless line with additional taxes & fees: Monthly Regulatory Programs (RPF) & Telco Recovery Fee (TRF) totaling $1.40 per data only line ($0.12 for RPF & $1.28 for TRF) apply; taxes/fees approx. 3-12% of bill. Credit approval required. For use only with T‑Mobile Gateway for in-home use at location provided at activation. If canceling service, return gateway or pay up to $370. Video streaming resolution depends on available speeds. For best performance, leave video streaming applications at their default resolution setting. Not compatible with some live TV streaming services. AutoPay discount requires bank account or debit card, up to 8 lines, otherwise $5/mo per line. May not be reflected on 1st bill. Network Management: Service may be slowed, suspended, terminated, or restricted for misuse, abnormal use, interference with our network or ability to provide quality service to other users. See T‑Mobile.com/OpenInternet for details.  See Terms and Conditions (including arbitration provision) at www.T‑Mobile.com for additional information. Fast & Reliable: Based on T‑Mobile analysis of eligible customer speed data reflecting consistent broadband speeds. Delivered via 5G cellular network; speeds vary due to factors affecting cellular networks. See T‑Mobile.com/OpenInternet for additional details.

20% Savings

With 3 lines on Essentials or Go5G Plus. Savings with T‑Mobile 3rd line free via mo. bill credits vs. comparable available plans; plan features and taxes & fees may vary. Credits stop if you cancel any lines. Qualifying new account & credit req'd.

Essentials Saver - $50/mo. for 1 line

With AutoPay discount using eligible payment method. Plus taxes & fees. Available in select locations. Contact us to learn more.

• Unlimited 5G & 4G LTE data 50GB of Premium Data
• Unlimited 3G mobile hotspot data included
• Unlimited text in 215+ countries & destinations
• Unlimited talk, text & data (up to 128 kbps) in Canada & Mexico
• Nationwide 5G coverage
• Taxes & fees 
• Netflix on Us 
• In-flight connection

During congestion, customers may notice speeds lower than other customers and further reduction if using >50GB/mo., due to data prioritization. Video typically streams in SD quality. Tethering at max 3G speeds.

General Terms: $35 device connection charge due at sale. Credit approval & deposit may be required. Monthly Regulatory Programs (RPF) & Telco Recovery Fee (TRF) totaling $3.49 per voice line ($0.50 for RPF & $2.99 for TRF) and $1.40 per data only line ($0.12 for RPF & $1.28 for TRF) applies; taxes/fees approx. 4-38% of bill. Capable device required for some features. Not combinable with certain offers. Switching plans may cause you to lose current plan/feature benefits; ask a rep for details. Max 3 lines. Plan not available for hotspots and some other data-first devices. Unlimited talk & text features for direct communications between 2 people; others (e.g., conference & chat lines, etc.) may cost extra. Some messages, including those over 1MB, use data and may be unavailable internationally. Roaming: U.S. roaming and on-network data allotments differ: includes 200MB roaming. High-speed data is US only; in Canada/Mexico, unlimited at up to 128kbps; additional purchase required for data elsewhere. Calls from Simple Global countries, including over Wi-Fi, are $.25/min. (no charge for Wi-Fi calls to US, Mexico and Canada). Service may be terminated or restricted for excessive roaming. Not for extended international use; you must reside in the U.S. and primary usage must occur on our U.S. network. Device must register on our U.S. network before international use. Video streams at up to 2.5Mbps (SD). Optimization may affect speed of video downloads; does not apply to video uploads. For best performance, leave any video streaming applications at their default automatic resolution setting. Tethering at max 3G speeds. For customers using >50GB/mo., primary data usage must be on smartphone or tablet. Smartphone/tablet usage is prioritized over Mobile Hotspot (tethering) usage, which may result in higher speeds for data used on smartphones and tablets. AutoPay Pricing for lines 1-3. AutoPay discount requires bank account or debit card, otherwise $5 more/line/mo. May not be reflected on first bill.

BASE ESSENTIALS

Get a phone plan with all the essential benefits you need including 5G access.

Up to 4 lines available (2 lines: $80/mo. / 3 lines: $100/mo. / 4 lines: $120/mo.).

• 20GB of high-speed data (then unlimited data at up to 1.5Mbps)
• Unlimited mobile hotspot data at 3G speeds
• Unlimited talk, and text & data at 2G speeds in Mexico and Canada
• Calls from 210+ Simple Global countries and destinations for a low flat rate, and free text messages
• One Year of Paramount+ on us (Subscription automatically renews at $4.99/mo after first year. Credit card required. See terms.)
• Scam Shield TM

During congestion, customers on this plan may notice speeds lower than other customers and further reduction if using >50GB/mo., due to data prioritization. Video typically streams on smartphone in SD quality. Tethering at max 3G speeds.

Base Essentials General Terms: Credit approval, deposit, and, in stores & on customer service calls, $35 assisted or upgrade support charge may be required. Monthly Regulatory Programs (RPF) & Telco Recovery Fee (TRF) totaling $3.49 per voice line ($0.50 for RPF & $2.99 for TRF); taxes/fees approx. 4-38% of bill. Capable device required for some features. Not combinable with most offers. Switching plans may cause you to lose current plan/feature benefits; ask a rep for details. Max 4 lines. Plan not available for hotspots and some other data-first devices. Includes 20GB high-speed data, then unlimited data at max 1.5Mbps download / 750kbps upload. Unlimited talk & text features for direct communications between 2 people; others (e.g., conference & chat lines, etc.) may cost extra. Some messages, including those over 1MB, use data and may be unavailable internationally. Roaming: U.S. roaming and on-network data allotments differ: includes 200MB roaming. High-speed data is US only; in Canada/Mexico, unlimited at up to 128kbps; additional purchase required for data elsewhere. Calls from Simple Global countries, including over Wi-Fi, are $.25/min. (no charge for Wi-Fi calls to US, Mexico and Canada). Service may be terminated or restricted for excessive roaming. Not for extended international use; you must reside in the U.S. and primary usage must occur on our U.S. network. Device must register on our U.S. network before international use. Video streams at up to 2.5Mbps (SD) when available. Optimization may affect speed of video downloads; does not apply to video uploads. For best performance, leave any video streaming applications at their default automatic resolution setting. Tethering at max 3G speeds. For the small fraction of customers using >50GB/mo., primary data usage must be on smartphone. Smartphone usage is prioritized over Mobile Hotspot (tethering) usage, which may result in higher speeds for data used on smartphones. 5G : Capable device required; coverage not available in some areas. Some uses may require certain plan or feature; see plan for details. While 5G access won’t require a certain plan or feature, some uses/services might. Scam Shield: Qualifying service & capable device req’d. Turning on Scam Block might block calls you want; disable any time. Paramount+ : Limited-time offer. Available to active T‑Mobile and Sprint postpaid voice wireless and Home Internet customers (excluding corporate/government accounts) who are residents of the 50 United States and at least eighteen (18) years of age. Receive 12-months of Paramount+ Essential Monthly plan (valued at $59.88) when you register to receive a code and then redeem the code within 30 days. Offer requires Paramount+ subscriber account registration and provision of a valid payment method for continued service after the promotional period ends.  IF YOU DO NOT CANCEL YOUR PARAMOUNT+ SUBSCRIPTION BEFORE THE 12-MONTH PROMOTIONAL PERIOD ENDS, YOU AUTHORIZE VIACOMCBS TO CHARGE YOUR CREDIT CARD $4.99 EACH MONTH ON A RECURRING BASIS UNTIL YOU CANCEL YOUR PARAMOUNT+ SUBSCRIPTION. TO CANCEL YOUR SUBSCRIPTION AND AVOID BEING CHARGED, YOU MUST CANCEL BEFORE THE END OF THE 12-MONTH PROMOTIONAL PERIOD. Call (888) 274-5343 or go through your subscriber account to cancel your Paramount+ subscription. If subscription is cancelled, cancellation will be effective at the end of then-current subscription period. No refunds. Max 1 code/account. ViacomCBS and T‑Mobile reserve the right to determine your eligibility for the promotional period as well as to amend, modify, or waive the terms and conditions from time to time. Use of the Paramount+ service and creation of a subscriber account are governed by the VCBSI Terms of Use available at https://www.viacomcbs.legal/us/en/cbsi/terms-of-use and Privacy Policy at https://www.viacomcbsprivacy.com/en/policy . This offer may be changed or cancelled at any time. Void where prohibited. Nontransferable, not for resale, and not redeemable for cash. Other restrictions and taxes may apply. Cannot be combined with any other Paramount+ code or coupon offers. Coverage not available in some areas. Network Management: Service may be slowed, suspended, terminated, or restricted for misuse, abnormal use, interference with our network or ability to provide quality service to other users, or significant roaming. See T‑Mobile.com/OpenInternet for details. See Terms and Conditions (including arbitration provision) at www.T‑Mobile.com for additional information.

Get up to $1,000 when you switch your family on our Magenta Max plan.

Limited-time offer; subject to change. Qualifying credit, voice service (MAX, Business Unlimited Ultimate, Magenta Plus, ONE Plus), and port-ins from AT&T, Verizon, Claro, US Cellular, Spectrum, Liberty Puerto Rico, or Xfinity required. Complete port-in and register code within 30 days of activation for each qualifying line. If you have cancelled lines in past 90 days, reactivate them first. In stores & on customer service calls, $35 assisted or upgrade support charge may be required. Get $200 via virtual prepaid Mastercard, which you can use online or in-store via accepted mobile payment apps;  no cash access & expires in 6 months . The Virtual Prepaid Mastercard is issued by Sunrise Banks N.A., Member FDIC, pursuant to a license from Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. This card may be used everywhere Debit Mastercard is accepted. Registration, activation, acceptance, or use of this card constitutes acceptance of the terms and conditions stated in the Prepaid Card Agreement. This promotion is not associated, sponsored, or endorsed by Mastercard or Sunrise Banks N.A. Lines must be active and in good standing when card is issued. Allow 6-8 weeks from fulfillment of offer requirements. Max 5/account. May not be combined with some offers or discounts. While 5G access won’t require a certain plan or feature, some uses/services might. See  Coverage details ,  Terms and Conditions , and  Open Internet  information for network management details (like video optimization).

Calls, including over Wi-Fi, are $.25/min. (no charge for Wi-Fi calls to US, Mexico, and Canada). Up to 5GB high-speed data in select Central European countries; otherwise, standard speeds approximately 256 Kbps. Additional charges apply in excluded destinations; see www.T‑Mobile.com for included destinations (subject to change at T‑Mobile's discretion). Qualifying postpaid plan and capable device required. Taxes additional; usage taxed in some countries. Voice and text features for direct communications between two people. Communications with premium-rate (e.g., 900, entertainment, high-rate helpline) numbers not included. Not for extended international use; you must reside in the US and primary usage must occur on our network. Device must register on our network before international use. Service may be terminated or restricted for excessive roaming. Coverage not available in some areas; we are not responsible for our partners’ networks. In-Flight Connection: On US-based airlines; Wi-Fi Calling functionality, valid e911 address, and one prior Wi-Fi call with current SIM card required for messaging. Where available on select US airlines. AAA: Limited-time offer; subject to change. Available for new and active AAA members and T‑Mobile postpaid customers in good standing. Active voice line and AAA member validation required. Receive one year AAA Basic or Classic membership/renewal on us when you register at Promotions.T‑Mobile.com/AAA and enroll for a new AAA membership with auto-renewal and a valid credit card or provide your existing AAA member number. Existing AAA members must remain a T‑Mobile customer in good standing through their registered AAA membership next renewal date in order for their registered next renewal to be paid by T‑Mobile . Limit one per AAA Member household and T‑Mobile account. This offer may be changed or cancelled at any time. Void where prohibited. Nontransferable, not for resale, and not redeemable for cash. This offer and AAA membership is for personal use. May not be combinable with some offers or discounts. Other restrictions and taxes may apply

MORE 5G COVERAGE.

While 5G access won’t require a certain plan or feature, some uses/services might. See  Coverage details ,  Terms and Conditions , and  Open Internet  information for network management details (like video optimization).

Limited-time offer; subject to change. 5G device req'd to access 5G network. Data available for 3 monthly cycles for approximately 90 days. During congestion, customers on this plan using>50GB/mo. may notice reduced speeds until next monthly cycle due to data prioritization. Video typically streams on smartphone/tablet in SD quality. Tethering not available. Not for international use. Active non-T‑Mobile service required; your carrier's terms also apply. You may need to upgrade when you switch to get full coverage. Coverage not available in some areas. Not for international use. See Network Management Policies and Terms and Conditions (including arbitration provision) at T‑Mobile.com for additional information

Go5G Plus family plan customers can get perks like…

• Netflix Standard 2 Screens within a household Subscription On Us ($15.49/mo. value)
• Apple TV+ On Us ($4.99/mo. value)
• Paramount+ On Us for a year ($4.99/mo. value)
• ViX+ On Us for a year ($6.99/mo. value)
• AAA On Us for a year ($5/mo. value)
• Unlimited talk, text, & up to 15GB full-speed data in Canada & Mexico ($60/mo. value for 2 lines)
• Up to 5GB of full-speed data in 215+ countries/destinations ($70/mo. value for 2 lines)
• Premium Scam Protection Services ($13.98/mo. value for 2 lines)
• Unlimited in-flight Wifi on select flights on select U.S. based airlines ($99.90/mo. value for 2 lines if purchasing unlimited in-flight wi-fi from an in-flight wifi provider)
• Taxes & Fees Included in monthly rate plan price (approx. $9.50/mo. value for 2 lines, varies by location)

But that’s not all! With T‑Mobile Tuesdays & T‑Mobile Travel, customers can get hundreds of dollars of savings and giveaways every week, like discounts on gas and food, free movies, discounted experiences, 40% off select hotel and car reservations, and more.

We won’t raise the price of your rate plan—ever.

Price Lock guarantees new accounts with qualifying service can keep their regular monthly rate plan price for current unlimited talk, text, and data on our network; excludes taxes/fees, limited-time promotions, per-use charges, third-party services, and network management practices.

Price Lock guarantees accounts with qualifying service can keep their regular monthly rate plan price for current unlimited talk, text, and data on our network; excludes taxes/fees, limited-time promotions, per-use charges, third-party services, and network management practices. Qualifying service includes new and existing customers on Go5G Next, Go5G Plus and Go5G plans and accounts activated after 4/28/22 with other eligible plans. See additional details at   https://www.T‑Mobile.com/support/account/price-lock .

Go5G Next and Go5G Plus family plan customers can get perks like...

• Taxes & Fees Included in monthly rate plan price (approx. $9.66/mo. value for 2 lines, varies by location)

But that’s not all! With T‑Mobile Tuesdays & T‑Mobile Travel, customers can get savings and giveaways every week, like discounts on gas and food, free DVD rentals, discounted experiences, up to 40% off select hotel and car reservations, and more.

Order now and get yours FREE.

Contact us before cancelling service to continue remaining bill credits, or credits stop & balance on required finance agreement is due (e.g., $999.99–Galaxy Z Flip5 5G 256GB). Tax on pre-credit price due at sale. Limited-time offer; subject to change. Qualifying credit, service, & new line or trade-in (e.g., Save $1000: Samsung Galaxy S21 / Save $800: Samsung Galaxy S20 / Save $400: Samsung Galaxy S6) required. If you have cancelled lines in past 90 days, you may need to reactivate them first. $35 device connection charge due at sale. Up to $1,000 via bill credits; must be active and in good standing to receive credits; allow 2 bill cycles. Max 4 discounted devices/account. May not be combinable with some offers or discounts.

Order now and get up to $1000 off.

Contact us before cancelling service to continue remaining bill credits, or credits stop & balance on required finance agreement is due (e.g., $1,799.99–Galaxy Z Fold5 256GB). Tax on pre-credit price due at sale. Limited-time offer; subject to change. Qualifying credit, service, & new line or trade-in (e.g., Save $1000: Samsung Galaxy S21 / Save $800: Samsung Galaxy S20 / Save $400: Samsung Galaxy S6) required. If you have cancelled lines in past 90 days, you may need to reactivate them first. $35 device connection charge due at sale. Up to $1,000 via bill credits; must be active and in good standing to receive credits; allow 2 bill cycles. Max 4 discounted devices/account. May not be combinable with some offers or discounts.

Now you can be upgrade-ready every year with Go5G Next.

Available only for qualifying new financed devices purchased on Go5G Next plan; existing devices are not eligible. Upgrade qualifying device after at least 6 months and when 50% of device cost has been paid. Trade-in device must be in good working order. You must be current with your scheduled financing and wireless service payments. Upgrading ends current financing and any device promotion or deposit reimbursement credits; trade-in satisfies early upgrade and not valued separately. Not combinable with some offers (e.g. JUMP).

Contact us before cancelling account to continue remaining bill credits, or credits stop & balance on required finance agreement is due (e.g., $799.99 – Samsung Galaxy S24 128GB).  Tax on pre-credit price due at sale. Limited-time offer; subject to change. Qualifying credit and service required. If you have cancelled lines in past 90 days, you may need to reactivate them first. $35 device connection charge due at sale. Up to $800 via bill credits; must be active and in good standing to receive credits; allow 2 bill cycles. Max 4 discounted devices/account. May not be combinable with some offers or discounts. $200 Virtual Prepaid Card: Limited-time offer; subject to change. Qualifying credit, new Go5G Plus or Go5G Next voice line, and port-in from AT&T, Verizon, Claro, US Cellular, Spectrum, Liberty Puerto Rico, or Xfinity required. Complete port-in and register code within 30 days of activation. If you have cancelled lines in past 90 days, reactivate them first. $35 device connection charge due at sale. Get $200 via virtual prepaid Mastercard, which you can use online or in-store;  only accepted at T‑Mobile , no cash access, & expires in 6 months . The Card is issued by Sunrise Banks N.A., Member FDIC, pursuant to a license from Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Registration, activation, acceptance, or use of this card constitutes acceptance of the terms and conditions stated in the Prepaid Card Agreement. This promotion is not associated, sponsored, or endorsed by Mastercard or Sunrise Banks N.A. Lines must be active and in good standing when card is issued. Allow 8 weeks from fulfillment of offer requirements. Max 5/account. May not be combined with some offers or discounts.

Switch now and keep the phone you love—we’ll help pay it off up to $800.

Limited time offer; subject to change. Qualifying device, credit, service, and port-in (Verizon, AT&T, Spectrum, Claro, Xfinity, Liberty, or US Cellular) required. You must unlock device before port-out; ask us how. Device balance (incl. lease purchase option) up to $800 paid by virtual prepaid MasterCard ( no cash access & expires in 6 months ) which you can use online or in-store via accepted mobile payment apps, typically within 15 days. Tax excluded. Submit proof of balance & 90+ days  in good standing with carrier & device within 30 days of port-in and be active and in good standing when processed; allow up to 15 days . Devices previously used for Keep & Switch are not eligible. We might ask for more information. Up to 4 lines. One offer per subscriber. T‑Mobile Prepaid MasterCard is rebate/reimbursement or exchange on port-in; for any tax implications, consult a tax advisor. No money has been paid by you for the card. Card is issued by Sunrise Banks N.A., Member FDIC, pursuant to a license from Mastercard International Incorporated. Mastercard is a registered trademark of Mastercard International Incorporated. Use of this card constitutes acceptance of the terms and conditions stated in the Cardholder Agreement.

Switch to T‑Mobile, and we’ll help pay off your phone up to $800.

Limited time offer; subject to change. Qualifying device, credit, service, and port-in (Verizon, AT&T, Spectrum, Claro, Xfinity, Liberty, or US Cellular) required. You must unlock device before port-out; ask us how. Device balance (incl. lease purchase option) up to $800 paid by virtual prepaid MasterCard ( no cash access & expires in 6 months ) which you can use online or in-store via accepted mobile payment apps, typically within 15 days. Tax excluded. Submit proof of balance & 90+ days in good standing with carrier & device within 30 days of port-in and be active and in good standing when processed; allow up to 15 days . Devices previously used for Keep & Switch are not eligible. We might ask for more information. Up to 4 lines. One offer per subscriber. T‑Mobile Prepaid MasterCard is rebate/reimbursement or exchange on port-in; for any tax implications, consult a tax advisor. No money has been paid by you for the card. Card is issued by Sunrise Banks N.A., Member FDIC, pursuant to a license from Mastercard International Incorporated. Mastercard is a registered trademark of Mastercard International Incorporated. Use of this card constitutes acceptance of the terms and conditions stated in the Cardholder Agreement.

General election latest: Tory tactic on Starmer age may backfire, poll suggests; Farage changes tune on Tory deal

Sir Keir Starmer has faced accusations of a left-wing cull in the Labour Party, including from predecessor Jeremy Corbyn. In better news for the party leader, another Tory - Mark Logan - has defected. Submit your election questions in the form below.

Thursday 30 May 2024 20:12, UK

• General Election 2024

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Election news

• 'How can we trust you?' Voter challenges PM
• Tory defects to Labour | 'The right thing for country'
• Corbyn accuses Starmer of 'clearly intervening' in 'purge'
• No reason Abbott shouldn't be able to stand, says Rayner
• Tory tactic on Starmer age may backfire, poll suggests
• Farage changes tune on Tory deal
• Live reporting by Tim Baker

Expert analysis

• Jon Craig: Latest Tory defector not an obvious fit for Labour
• Gurpreet Narwan: Reform unfussed by impact of 'immigration tax'
• Darren McCaffrey: Partygate clearly still an issue for Tories
• Beth Rigby: Massive distraction gives Starmer questions to answer

Election essentials

• Trackers: Who's leading polls? | Is PM keeping promises?
• Campaign Heritage: Memorable moments from elections gone by
• Follow Sky's politics podcasts: Electoral Dysfunction | Politics At Jack And Sam's
• Read more: What happens next? | Who is standing down? | Key seats to watch | How to register to vote | What counts as voter ID? | Check if your constituency's changing | Your essential guide to election lingo | Sky's election night plans

A squeeze on people's incomes due to frozen tax thresholds will continue until 2028 under Tory plans, Jeremy Hunt has confirmed.

Rishi Sunak introduced a freeze on tax-free personal allowance thresholds (the amount you can earn before you start paying tax) when he was chancellor back in 2021. In his autumn 2022 budget, Mr Hunt extended the time it would need to be in place from 2026 to 2028.

The frozen rates mean many have failed to feel the benefit of the national insurance cut which kicked in this year.

The Office for Budget Responsibility also estimates the static rates will drag an additional four million people into paying tax by 2028 and push three million into a higher tax bracket. This is because wages will go up alongside inflation, but the threshold won't. 

The policy is often referred to as a "stealth tax".

Mr Hunt told BBC Radio 4's Today programme: "The tax rises that happened as a result of the pandemic and the energy shock, these two giant shocks, will stay for their allotted time period."

But he reiterated the Conservatives' pledge to end the freeze after 2028, saying: "I can absolutely undertake that the threshold freeze that we introduced until 2028 will not continue after that."

The Tories have said they will unfreeze the thresholds for pensioners if they win the election.

Labour has also refused to commit to unfreezing overall tax thresholds.

Sir Keir Starmer said earlier that he believed the tax burden on working people was "too high" but that his party was not going to "make commitments that we cannot afford".

"Therefore I'm very clear about the tax that will remain and will be locked and where we cannot make those commitments," he said.

What are the tax thresholds and what do they mean?

The personal tax allowance is frozen at £12,570. You don't pay income tax on anything you earn below that - anything above is taxed at the 20% base rate. At the same time, the higher rate has been frozen at £50,271 - anything above that is taxed at 40%.

Tom Selby, director of public policy at AJ Bell, said the personal allowance, if it had been inflation-linked since 2021-22, would be forecast to rise to £15,989 by 2028 - nearly £3,500 higher than the frozen threshold.

There was another classic of the Lib Dem election stunt genre today, and this time Sky joined in.

Our correspondent Matthew Thompson jumped on a waterslide with party leader Sir Ed Davey - and you can watch the fun they had below...

The stunt was done to raise awareness of a Lib Dem policy to introduce a mental health professional into school.

That concludes our coverage of tonight's Politics Hub With Ali Fortescue - it'll be back tomorrow, but stick around for more news and analysis through the evening.

If this is the first TikTok election, you might be surprised at who's winning.

On the youngest, buzziest social media platform, Reform UK - whose vote tends somewhat towards the elderly - has the most followers, 125,500, just ahead of Labour on 108,500.

But others are catching up fast - and how they're using it reveals a lot about a key digital battleground in this election, one of the few arenas where money doesn't buy you influence.

Because this is new territory. "It's worth noting that the three major parties are really new to the game," says Kate Dommett, professor of digital politics at the University of Sheffield.

No major party had much of a TikTok presence before the election was called. Now they're racing to build them on the fly.

Read more from our online campaign correspondent Tom Cheshire :

Our panel is asked by Ali whether it's becoming difficult to distinguish between the two parties.

Former government adviser  Mercy Muroki says she thinks so. 

"We've heard a lot of talk already about how Labour are kind of trying very hard to move… to the centre at least and to purge the left," she says.

"And I think the policy platform they have on tax and other issues is more or less practically indistinguishable from what the Conservatives have been trying to do," she adds. 

Regardless, she says, "all parties come in promising various things on tax, and they always end up breaking it - always end up raising tax when they said they wouldn't".

Ali Fortescue   turns to our panel, former government adviser Mercy Muroki and ex-Labour staffer Greg Cook .

Asked about Mark Logan's defection, Ms Muroki says it is a "very odd" example of someone changing parties.

She points out that Mr Logan was elected in 2019 as a Boris-backing Brexiteer who is now saying Sir Keir Starmer is the future of the country.

Ms Muroki adds that Mr Logan doesn't really criticise Rishi Sunak in his letter, and admitted the Tories could hold his seat.

She says there is no clear reason for him leaving the Tory party, unlike in other defections.

Tories 'will be absolutely terrified'

Mr Cook says it may be that Labour had a hand in the defection, and it could be a useful distraction from the bad Labour headlines at the moment.

The former Labour employee says that Mr Logan seems like a "genuine, honest guy" who clearly thought his decision through.

Mr Cook says that, when Tories defected in 1997, it was over Europe and showed other Conservatives they could back Labour.

Now, there is no single clear reason that defectors have given.

"I imagine the Tories will be absolutely terrified there are more of these in the pipeline," Mr Cook says.

On the subject of Diane Abbott, Ms Muroki says it is "clearly not a good look" for the Labour Party.

But she criticises some of the narrative around the case.

She says: "I just do find it this narrative that, you know, she's a black woman, and somehow she should receive special treatment for that. 

"It's kind of undermining the reason that she was sort of being investigated in the first place."

Ms Abbott was suspended from the parliamentary Labour Party after writing in The Observer that "Irish, Jewish, and Traveller" people suffer "prejudice" - and likened it to discrimination experienced by "redheads".

"But they are not all their lives subject to racism," she added.

Another MP defecting to Labour will no doubt come as a blow to Rishi Sunak, but there are divisions in Labour too, our political editor Beth Rigby says. 

"Mark Logan has defected… it comes on the back of Natalie Elphicke [leaving, who was] more high-profile, actually," she says.

"She defected to Labour about small boats and you then had Dan Poulter, a former minister and a doctor, saying he was defecting to Labour over the NHS.

"It will, of course, be a blow to the prime minister."

In response, Beth says, the Tories have thrown themselves fully into campaigning. 

"Rishi Sunak is actually trying to shore up, for now, the right of the party, with those offers on national service, on the triple lock and more tax benefits for pensioners."

Moving to Labour, she says the Diane Abbott row may actually be a bigger story than we think. 

"The way that they are responding is making it a bigger, bigger, bigger problem, instead of nipping it in the bud," she says.

"It speaks to divisions in the party."

Sky political correspondent Serena Barker-Singh has been speaking to Jeremy Corbyn, the former Labour leader who is now an independent.

Mr Corbyn was asked about the candidates seen to be on the left of the party - like Diane Abbott, Lloyd Russell-Moyle, and Faiza Shaheen - not being allowed to stand.

He tells Serena: "The one thing they all have in common, the people that have been purged, is that they're on the left of the party and have all spoken out in favour of an immediate ceasefire and permanent ceasefire in Gaza."

When it was put to him that Labour claims some of the action was down to liking social media posts, Mr Corbyn says: "We don't even know which tweet it was or whose tweet it was.

"That seems to me a bit thin - and the Labour Party's procedures ought to be more robust and more open than that."

Serena asks if Mr Corbyn thinks Sir Keir Starmer is behind the decisions.

The ex-Labour chief says: "Well, as much as he claims sometimes it's nothing to do with him and other times that he's made the decision, he better make up his mind what it is. 

"I think the leader ought to be independent of the other processes. But he clearly is intervening all along the way."

Sir Keir has denied he was blocking leftwing candidates.

He says that he wants the "highest quality candidates" - and that "no decision" has been taken on Ms Abbott's case.

He then paid tribute to her and the "incredible challenges" she overcame as an MP.

Mr Corbyn is standing for re-election in Islington North.

The full list of candidates for the seat is as follows:

• Jeremy Corbyn, independent;
• Vikas Aggarwal, Liberal Democrat;
• Sheridan Kates, Green Party;
• Praful Nargund, Labour;
• Martyn Nelson, Reform UK.

If you need more insight into Mark Logan's defection, read this from our chief political correspondent Jon Craig ...

In a Sky News interview after Tory MP Christian Wakeford defected to Labour in 2022, Mark Logan was asked if he planned to join him.

At the time, the Northern Ireland-born MP laughed and replied jokingly: "I'm not planning to defect - to the Democratic Unionist Party."

Yet two years later, Mr Logan has indeed - like Mr Wakeford, Dan Poulter and Natalie Elphicke in the parliament that has just ended - abandoned the Conservative Party and switched to Labour.

Mr Logan said he had done "much soul-searching throughout my first term in parliament".

Not many MPs admit to that sort of self-doubt. But then Mr Logan has never been tribal like the more bombastic and shouty members of the Tories' 2019 intake. You know who you are!

Nor is he a divisive figure like the most recent previous Tory defector to Labour, Natalie Elphicke, whose welcome from the party leadership appalled some Labour MPs and activists.

And though he won his seat from Labour's Sir David Crausby, who represented Bolton North East from 1997 until 2019, it's not a Red Wall seat.

Read the full article below:

Ali Fortescue   suggests Mark Logan's defection is further evidence of Labour shifting to the right of politics.

Mr Logan thinks it's a case of the party having "decided it wants to govern" and wanting to incorporate a "broad church".

Sir Keir Starmer has been accused of a "purge" of left-wing candidates, with predecessor Jeremy Corbyn among his critics.

Some voters are also disappointed with his stance on Brexit, having dismissed any chance of the UK rejoining the EU.

Mr Logan, a Brexiteer, says "we deal with the environment we have".

"I think Labour, if it does come to power, is going to be in the situation where it does have a lot of expertise and interest in furthering the UK's relations with European partners," he says.

"And that's important when we're in a world where things are darker than they have been in recent decades."

In his defection letter released earlier, former Tory MP Mark Logan cited Labour's stance on the war in Gaza as a reason for switching.

Many of his constituents feel strongly about it, he says.

He thinks a Labour government would have "the right intention" to help end the conflict, saying there are many people in the party "that have an interest" and even a "specialism" when it comes to the Middle East.

The party has been calling for an immediate ceasefire, though the leadership has been criticised for how long it took to change its stance.

'An opportunity to show leadership'

"I do think Labour are going to do things a bit differently," says Mr Logan.

"It's actually an opportunity to show leadership. The UK can show leadership with other like-minded countries.

"There's a real opportunity if we can show leadership and move to having reconstruction that benefits the people of Gaza and also making sure that Israel is secure and safe."

Be the first to get Breaking News

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Don't bother with copy and paste.

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Child Day Care Services Business Plan

Start your own child day care services business plan

Kid's Community College

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.">.

Kid’s Community College® aims to prepare its students to excel as young leaders of tomorrow by combining an exclusive collegiate-based curriculum tailored specifically for children with enhanced, first class child care services. Unlike our competitors, we offer advanced technology programs, after-school tutoring, and activities such as arts and crafts, dance, theatre and gymnastics, all in one location.

Kid’s Community College is a privately held corporation run by its owner, Timothy Bernard Kilpatrick, Sr. Mr. Kilpatrick has 17 years of Executive Management (VP) and Budgeting experience, and extensive experience with budgeting methodologies and strategic planning, including the Balanced Scorecard approach. His advanced degree (and interest) in computer science is the driving force behind our technology component. He will be supported in daily operations by an industry consultant, a campus director, and a VP of educational operations, all with extensive experience in child care fields.

With inflation continuing to rise each year, the typical American family now requires dual or supplemental incomes. This trend has created a need for quality child care services. The population growth rate in the Riverview area of Hillsborough County is now over 14.6%, leading us to anticipate expanding market potential for this industry in our local area. Price, service, certification and reputation are critical success factors in the child care services industry. Kid’s Community College® will compete well in our market by offering competitive prices, high-quality child care services, and leading-edge educational programs with certified, college-educated instructors, and by maintaining an excellent reputation with parents and the community we serve.

This is a daycare business plan for Kid’s Community College®, which will focus on two subdivisions: ‘Lake St. Charles’ and ‘The Villages of Lake St. Charles,’ which are new upscale community developments within a 2 square mile radius, boasting over 900 new homes. Our target customers are dual-income, middle-class families who value the quality of education and child care we provide for their children, ages 4 months to 12 years.

We will open for business starting with an initial enrollment of 13 students. We project healthy revenues by the end of the first year, and expect to nearly triple that by the end of Year 3. Our biggest operating expenses will be compensation at industry standard rates for our highly-qualified personnel, and rent on our facilities, improved for our purposes during the start-up period. We would like to grow into four campuses, eventually, but growth is planned conservatively, to be financed from existing cash flow as we go. We anticipate a net profit beginning in our second year.

To these ends, we are putting significant investment in the business, and are seeking a matching amount in the form of an SBA loan.

“Some of the best years in life are the time spent as a child and later our collegiate years…” As working adults in a fast paced society, we sometimes forget just how precious and  fleeting those years are.

With that in mind, imagine an alternative to traditional infant, day and after school care that not only met your child care needs, but also provided an activity based learning environment that mirrors those used at colleges, universities and vocational centers around the nation.  A college community of professional care givers with the credentials to not only enhance your child’s early social and motor skills, but to also teach them advanced studies in the arts and sciences found at institutions of higher learning.  A collegiate-based curriculum tailored specifically for children, taught in a fun, nurturing care giving environment.

Now imagine this at a cost less than that of the combination of conventional day care and specific interest based children programs.

Kid’s Community College® is a start-up comprehensive community college exclusively for kids ages 4 months to 5 years and 1st through 5th grades.  The College dedicates its efforts and resources toward ensuring top-rated care giving services coupled with a high-quality activity based learning environment tailored for children in these age groups.  The College will respond to the needs of its parents and students with excellent care-giving and instruction, an advanced curriculum, flexible programs, local community involvement and business partnerships.

The College has a strong commitment to accessibility and diversity.  Its open door policy embraces all who desire to provide a better quality of care, preparedness and education for their children.  The College works to provide affordable, first-class care giving and education by providing a broad range of integrated programs and services and innovative learning approaches.

The College is committed to taking a leadership role in child care services, higher learning, community services and promoting cultural diversity.  Kid’s Community College® directs its activities towards student success.

• Sales increasing to almost double first year sales by the end of Year 2.
• Maintain a high raw gross margin by the end of Year 1.
• Open second campus by the end of Year 1.
• Begin franchise effort by end of Year 3.

Keys to Success

The keys to success for KCC are:

• Marketing: differentiating KCC’s care giving and educational services from traditional daycare offerings and interest activity programs.
• Service quality: care giving and educational programs provided by degreed and certified educators, child care workers, tutors and subject matter industry professionals in a technologically advanced first-class collegiate environment.
• Reputation: maintaining a highly regarded reputation for excellence in care giving, education and community involvement and being the employer of choice in our market for child care and educational talent.
• Profitability: controlling costs and managing budgets in accordance with company goals, adhering to strategic business plans for growth and expansion and reinvesting in the business and its employees.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Kid’s Community College® – Lake St. Charles Campus will be located in Riverview, FL.  The College will employ six fundamentals that will serve as the driving force for the services offered:

• Premier Care Giving Services
• An Activity Based, Children Structured Collegiate Curriculum
• Advanced Technology and Developmental Programs
• Trademarked General and “Continuing” Education Mentoring and Tutoring 
• Learning Services
• Community Advancement and Involvement

The Lake St. Charles campus is a newly constructed, 3,600 square foot facility in the Lake St. Charles Medical Plaza and will be developed meeting strict KCC design standards, under close supervision of Hillsborough County child care Licensing.

Start-up Summary

The college founder and president, Mr. Kilpatrick, will oversee fiscal responsibility, employing an independent CPA for financial oversight.  A Campus Director will be hired to handle day-to-day operations of the facility and will work collaboratively with the silent partners and other campus personnel to ensure a successful business venture.

As reflected in the table below, the estimated start-up costs for KCC will be $39,450.  These costs will be financed solely by the owners’ personal cash funds and optional credit lines.  An anticipated $60,000 SBA guaranteed 5-year loan will be used as working capital.  Future expansion, growth and franchising strategy will be self-financed.

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Company Locations and Facilities

Kid’s Community College® will begin with one location – a newly constructed 3,600 square foot campus in Riverview, FL located near the entrance of the upscale Lake St. Charles subdivision.  The campus is in the Lake St. Charles Medical Professional center and will boast separate halls for arts and crafts, theatre and dance, information technology, library and quiet study, tutoring, infant care and a cafeteria.  The play area will be adjacent to the campus and will be securely fenced and furnished with appropriate playground equipment and facilities. 

Three additional campuses are planned in the rural Tampa marketplace over the next four years.  Franchise start-ups will be offered in the Orlando, Miami and Jacksonville marketplace after 2 years of successful operation.

Company Ownership

Kid’s Community College® is a privately-held proprietorship owned in majority by its founder and president, Timothy Bernard Kilpatrick, Sr.  There are also two silent partners, neither of whom owns more than 10%, but will be active participants in daily operations, management decisions and consulting, though they do not own a financial stake in the company.

Once the operation reaches its anticipated growth and profitability goals, the college plans to franchise and will re-register as a limited liability company or as a corporation, whichever will better suit the future business needs. 

Kid’s Community College® offers upscale child care services and an advanced collegiate based curriculum designed for kids ages 4 months to 5 years and 1st through 5th grades.  Normal operating hours will be 6:45am to 6:30pm, Monday through Friday – with observance of all major legal holidays.  Early drop-off service will be offered as needed. 

KCC exists to provide Premier child care services that are aimed at enhancing traditional day care methodologies and integrating extracurricular interests (such as arts and crafts, dance, theatre and gymnastics) into one comprehensive program.  Our activity based collegiate curriculum is specifically tailored for children and mirrors the arts and sciences taught at colleges, universities and vocational schools around the nation.  We offer state-of-the-art technology programs in leading-edge facilities which help prepare students for the technology age in which they live.  Our general and “continuing” education programs help mentor and tutor students through “main school” homework assignments and provide a base of understanding and interaction to ensure success in future educational endeavors.  Finally, our developmental programs reinforce basic social, listening, independence and motor skills and prepare students for future related interaction.

All of our learning and child care services employ technology, partnerships, professional services and other activities that support and promote higher learning.

In addition to the extensive services and curriculum offered, each campus will also offer weekend specialty classes for children and adults and planned family activities in the community it serves.  KCC will also offer children birthday party hosting services, providing great activities for kids and an easy experience for parents.  Activity instructors will be assigned for these events and will lead the activities, ensuring a memorable celebration. 

Service Description

Upon its opening, Kid’s Community College® will offer four basic services in the Lake St. Charles community:

• Full-time Child Day Care
• Part-time/After School Care (including drop-off and pick-up)
• After School Tutoring
• Drop-In Care

Prior to opening, the college will have a two-month enrollment drive.  Based on the market reaction to the drive, these services may be altered to meet the needs of the community.  The college will always remain nimble enough to respond to the needs of the community in which it serves.

Competitive Comparison

The child care industry as a whole is saturated.  However, based on US Census 2000 data, Hillsborough County Child Care Services provider listings and Hillsborough County building permit records, the city of Riverview, Florida itself is growing and has few licensed child care facilities.  Kid’s Community College® intends to fill this local market need.

The Lake St. Charles and ‘The Villages of Lake St. Charles’ subdivisions have 800 and 100 single family homes respectively. There are only two other child care facilities in the neighborhood. One is in the immediate area, a church based facility and the other is 2 miles away, a facility hosted by a local martial arts academy.  There are also three family child caregivers listed in the area, but none in the immediate community.  Kid’s Community College® will differentiate itself from its local competitors by offering an alternative to these traditional day care approaches. 

The Kid’s Community College® market strategy is based on providing an activity based learning environment that is used in many major colleges, universities and vocational centers around the nation. We will offer a community of professional caregivers with the credentials to not only enhance a child’s early social and motor skills, but to also teach them advanced studies in the arts and sciences found at institutions of higher learning.

Kid’s Community College® will be located in a new medical arts plaza, which has already shown a need and interest for child care services. The center currently has a pediatrics office and fitness center with clientele that has inquired about child care services. By forming collaborative partnerships with these businesses and becoming an active voice in the Lake St. Charles community, the college will position itself as the market share leader in child care services, development and educational offerings.

Sales Literature

A copy of the Kid’s Community College® informational brochure is attached in an appendix at the end of this document.

Fulfillment

The key fulfillment and delivery of services will be provided by the campus director, licensed campus instructors and staff workers. The real core value is the professional strength and industry expertise of the founder and silent partners, staff experience and certifications, education and hard work (in that order).

We will turn to qualified professionals for freelance back-up in tutoring and educational support, which will enhance the core values provided to the clients.

Since the company founder has an extensive Information Technology background, it’s only natural that Kid’s Community College® will employ and maintain the latest technology to enhance its curriculum, office management systems, payment processing and record keeping.

Future Services

Three additional campuses are planned in the rural Tampa marketplace over the next four years. Franchise start-ups will be offered in the Orlando, Miami and Jacksonville marketplace after 2 years of successful operation.

Market Analysis Summary how to do a market analysis for your business plan.">

Kid’s Community College® offers services which are vitally important in today’s fast paced, dual-income world. As an increasing number of families have become dependent on two incomes, the need for quality child care has skyrocketed. According to Florida Business Statistics, 84.6% of licensed child care facilities succeed and make a profit in their 1st year of operation.  Nationally, this number is 66.7%. 

Market Segmentation

Kid’s Community College® has a focus on meeting the local community need for child care services within the 10-mile radius of Riverview.  Students will be taken in flexibly on either a full-time or part-time basis.

Full-Time Working Couples

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

After School Care

Another large segment of the college’s business will be in the after school care market.  This client base will provide a higher profit for the college since instructor-to-student ratios are higher, and the students require more educational services, which are the primary focus of the college.  By offering tutoring, and advanced studies in technology, theatre, arts and sciences, the college will attract these profitable business clients, producing significant supplemental revenues.

Part-Time Workers/Drop-Ins

Part-time workers and Drop-Ins from the fitness center and locals businesses will comprise less than 1% of the revenues.  While this market is not a primary focus, sufficient flexibility to handle this market is important to the local ‘word-of-mouth’  marketing strategy.

Target Market Segment Strategy

The target market for Kid’s Community College® is full-time working couples. Referral marketing, direct-mail campaigns and community activity days will be the primary types of marketing strategies utilized. Maintaining and enhancing its reputation with families and in the community will be crucial in obtaining the planned market share growth of this target market.

Market Growth

According to US Census 2000 data, the population growth rate for Hillsborough county is approximately 2%, which is reflected in the market analysis summary. However, the Riverview area of Hillsborough County is experiencing a residential construction boom, yielding well over a 14.6% growth. This is supported by data obtained from the Hillsborough County Building Permits office and is included in the appendix of this plan. This suggests that more families continue to move into the Riverview area, thus becoming potential customers.

In our market analysis, we suggest a modest 6% yearly growth in the number of potential customers.

Market Needs

With inflation continuing to rise each year, the typical American family now requires dual or supplemental incomes. This trend has created a need for quality child care services. We do not see this model changing in the foreseeable future. In fact, based on the growth in the Riverview area, specifically the new Lake St. Charles and Village of Lake St. Charles communities, we expect the need to increase.

Market Trends

Currently there are more family caregivers than licensed child care facilities nationwide. However, this business model can’t keep up with the needs of the growing child care industry. In the family care giver paradigm, space is limited and quality of care is questionable – in many cases viewed as only slightly higher quality than babysitter services.

Service Business Analysis

Kid’s Community College® is in the child care services industry, which includes several models:

• Licensed Child Care Facilities: Business facilities that offer child daycare services.
• Family Child Care Homes: Individuals that offer child daycare services in their homes.
• Specific Interest Based Programs: Businesses that offer specialized instruction such as gymnastics, martial arts and athletics.
• Church Child Care Facilities: Religious organizations that offer child daycare services in their communities.

Competition and Buying Patterns

Price, service, certification and reputation are critical success factors in the child care services industry. Kid’s Community College® will compete well in our market by offering competitive prices, high-quality child care services, and leading-edge educational programs with certified, college-educated instructors, and by maintaining an excellent reputation with parents and the community in which we serve.

Main Competitors

• Weaknesses: May not appeal to customers of different religious beliefs. Unlicensed facility.  Non-accredited. 
• Weaknesses: Location – outside of middle-income market. Non-educational offering.  Building condition – prone to constant flooding. 
• Family Child Care Homes:
• Weaknesses: Capacity – only allowed a certain number of children. Non-professional stigma. 

Business Participants

• Specific Interest Based Programs: Martial Arts America
• Church Child Care Facilities: Christian Day Academy (not licensed).

Strategy and Implementation Summary

Kid’s Community College® will focus on two subdivisions: ‘Lake St. Charles’ and ‘The Villages of Lake St. Charles,’ which are new upscale community developments within a 2 square mile radius and boast over 900 new homes. 

The target customers are dual income, middle-class families who value the quality of education and child care provided for their children ages 4 months to 12 years.

Value Proposition

Kid’s Community College’s® value proposition is quite clear and quite easily distinguished from others in the market. We offer uniquely premium child care services, as measured by the curriculum and activities offered, experience and educational level of the instructors, community involvement and community college theme. 

Competitive Edge

We start with a critical competitive edge: there is no competitor in our market that is offering our concept, quality of educational program and child care services. Our educational approach is unique and we have a resource with over 25 years of child care expertise and over 17 years of technology savvy. Our positioning on these points is very hard to match, but only if we maintain the focus in our strategy, marketing, business development, and fulfillment. We should be aware that the tendency to dilute this expertise with bargain shopping could weaken the importance of our competitive edge, but we must continue to bolster our value proposition.

Marketing Strategy

Marketing in the child care industry depends largely on reputation and referral. At Kid’s Community College® that reputation will start within our community bolstered by our involved commitment to those we serve. 

Promotion Strategy

1.  Advertising –We’ll be developing our core positioning message: “A community college for kids!” to differentiate our service from the competition.  We will be using direct mail campaigns, pre-enrollment drives, and local community newspaper advertising to launch the initial campaign. 

2.  Sales Brochure –Our theme and curriculum will help sell the college to prospective clients. 

3.  Direct Mail –We will send quarterly direct mail campaigns to the housing developments in a 10-mile radius of the campus.  We will also offer monthly calendars for parents and the Lake St. Charles community, noting weekend family days and other open house approaches. 

4.  Community Involvement –We will be active in the Lake St. Charles community, sponsoring events at the community center for families and residents.

Marketing Programs

Catered open houses, parent survival days/nights, clubhouse pool parties and weekend movie matinees are but a few approaches we will utilize to reach out to our community.  We will also develop and maintain partnerships with local businesses that cater to the needs of children. 

Our pre-opening effort will include an application fee waiver, free children ID cards, T-shirts and a community block party sponsored and hosted by Kid’s Community College®.

Positioning Statement

For families who value the importance of higher education and quality child care services, Kid’s Community College® offers a great alternative to traditional child care services and specific interest based programs. Unlike those programs, KCC combines child care services with a modified collegiate level curriculum, just for kids!

Pricing Strategy

Kid’s Community College® must charge appropriately for the high-end, high-quality educational and care giving services we offer. Our revenue structure has to support our cost structure, so the salaries we pay to assure quality services must be balanced by the revenue we charge. 

We will be price competitive in the market we serve; however, we will not subscribe to the “low price leader” concept. The quality of our service will support the prices we charge.

Sales Strategy

Kid’s Community College® will sell its community college theme, services and offerings, separating itself from traditional daycare-only offerings.

We will be a one-stop shop for child care services, advanced learning and specialized program offerings.  We will also be active in the community, building a solid reputation with parents and the community.  By succeeding in these areas, we expect to begin seeing an operational net profit in month nine of the 1st year, while increasing enrollment by 32% monthly for the first 8 months and gradually thereafter, until our maximum allowed capacity is reached.

Sales Forecast

The following table and chart give a run-down on forecasted sales.  A detailed spreadsheet is also included in the appendix of this business plan. 

For the first eight months of operation, Kid’s Community College® has assumed a conservative enrollment due to the fact that school, aftercare and child care placement has already taken place for the school year and most parents will be comfortable with their current arrangements.  Consequently, we expect initial enrollment to be far less than anticipated future year levels. 

A sales increase of approximately 32% each month is expected until the start of the next school term, in August.  While this forecasted  increase seems large by industry standards, it is a good estimate based on initial enrollment.  Going into years 2 and 3, we expect that our presence will be known, convenience factor considered and we will then be a considered as a choice in August 2003.  In fiscal years 2004 and 2005, 80% and 90% of full enrollment is assumed respectively.

We expect to be open for business on January 1, 2003, starting with an initial enrollment of 13 students:

7 Full-time students at $115 each per week.  6 After-school students at $60 each per week and Drop-in revenue of approximately $100 per month. 

Sales Programs

Sales programs will include incentives for obtaining quarterly financial and enrollment goals, probationary period completion, passing county inspections and maintaining perfect attendance. 

Customer service awards will be provided for those employees who best exemplify the mission of Kid’s Community College® and exceed customers’ expectations. 

The accompanying table highlights important start-up milestones, with dates, completion status, responsible parties and budgets for each.  The milestone schedule indicates our emphasis on planning for implementation. 

What the table doesn’t show is the commitment behind it.  Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections. 

Strategic Alliances

As mentioned previously, Kid’s Community College® will form professional alliances with Impact Fitness to offer Drop-In child care services while parents work out.  We will also partner with Family Pediatrics to provide referrals of their existing customers.  A discounted rate will be offered in both cases.

Web Plan Summary

The Kid’s Community College® website will be the virtual business card and portfolio for the college, as well as its online “home.”

It will showcase the campus, curriculum and activity calendar for the school.  It will also provide for an Internet background of the instructors, online projects posted by the students, the campus newsletter and online enrollment. 

The Kid’s Community College® website will be simple, yet classy and well designed, but at the same time, in keeping with the latest trends in user interface design.  A site that is too flashy, or tries to use too much of the latest technology can be over-done, and may not be supported by all browsers. 

The key to the website strategy will be presenting a very well designed and informative Web presence that will market the Kid’s Community College® image, service offerings and community commitment.

Website Marketing Strategy

The Kid’s Community College® website will embody the mission of the college.  It will not only offer visitors the opportunity to “look around” the campus, but it will give them a good idea of the level of quality and service they can come to expect from the college.

Mostly informative in nature, the website will be a digital representation of our physical self. 

Development Requirements

The Kid’s Community College® website will be developed by the college founder, Timothy B. Kilpatrick, Sr., who has over 17 years of Information Technology experience.  Formation Technologies will host the site.

The site will be developed using Macromedia Dreamweaver 4, which will allow for support outside of Mr. Kilpatrick’s involvement.  The initial maintenance of the site will be done by Mr. Kilpatrick. 

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The opening management team of Kid’s Community College® will consist of the founder, a silent partner, a campus director and administrative assistant.

As the college grows, gradual investments in the instructional staff will be made over the next 3 years – beginning in June 2003 or as otherwise dictated by enrollment.

Organizational Structure

Kid’s Community College® depends on the founder, silent partner, Campus Director and VP of Education Operations for management in the following roles:

Management Team

Owner/President – Timothy B.  Kilpatrick, Sr.  The Owner/President will have overall fiscal responsibility, ensuring that the business is financially sound and attains its planned goals. 

• 17 years Executive Management (VP) and Budgeting experience
• Advanced degree in Computer Science
• Proven leadership and employee development ability
• Extensive experience with budgeting methodologies and strategic planning, including the Balanced Scorecard approach.

Industry Consultant – Carolyn Steverson.  The Industry Consultant will be relied upon for her industry expertise, providing valuable insight to rules, regulations and governmental programs that may benefit the college.

• 25 Year owner of Fat Albert Day Care Center
• Licensed child care facility owner
• Vast knowledge of Hillsborough County Child Care Licensing requirements and government supplemental programs

Campus Director – Candice Harris.  The Campus Director will be responsible for daily operations, curriculum oversight and management of all instructors, caregivers and tutors.

• B.S.  Degree in Education
• 2 years facilities administration/support experience with the University of South Florida
• 2+ years Regional Operations Manager
• 5+ years managerial/supervisory experience
• 3+ years grant writing, technical writing, workflow and process documentation experience

VP of Education Operations – Nitika Steverson-Kilpatrick

• Collegiate-level Public Relations education
• 5+ years customer service experience
• 8+ years child care industry experience (her mother owns Fat Albert Daycare)
• Extensive theatre and dance background

Management Team Gaps

The present team requires Child Care Development Associate credentials to support our value proposition and preparation for 2004 Florida child care requirements.  Currently, the Campus Director and Industry Consultant are the only members of the management team who have these credentials.

The Owner/President and VP of Education Operations will be enrolling in January 2003 to complete the six-month course required to obtain these credentials.  Education for these two can’t begin in this area until that time since it is a requirement that the college be open for business before the course work can begin.  Long-term, all full-time instructors will be required by the college (not the State) to obtain this credential.

Regarding financial administration, we will retain a strong CPA to help the owner guard cash flow.  While the owner is well versed in the worries of cash flow, he also has the sense to listen to reason and deal with constraints, as guided by the CPA.

Personnel Plan

The following table summarizes our personnel expenditures for the first three years, with compensation increasing from approximately $57K the first year to about $113K in the third.  We believe this plan is a fair compromise between fairness and expedience, and meets the commitment of our mission statement. 

The yearly figures in the second and third year are assumptions for the Lake St. Charles campus only.  The numbers reflect 100% enrollment, a full staff of instructors and a 5% payroll increase each year – which will include tuition reimbursement, pay increases, vacation pay, bonuses and state required certifications.

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• Adequate start-up capital is assumed, along with an SBA 5-year guaranteed loan.

Important Assumptions

The Kid’s Community College® financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions.  The monthly assumptions are included in the appendices.  From the beginning, it is recognized that total enrollment is critical, which is a factor that must be influenced immediately.  Interest rates, tax rates, and personnel burden are based on conservative assumptions. 

The most important underlying assumption is that there is a strong need for the business in the Lake St. Charles community. 

Key Financial Indicators

The following benchmark chart indicates the key financial indicators for the first three years.  We foresee a gradual growth in sales (enrollment) and operating expenses into the second and third year.

It is projected that the raw gross margin will remain stable for the first three years since expenses are relatively indirect in the service based course work industry.  Operating expenses increase gradually as enrollment increases.

Enrollment is very important.  We must maintain an average weekly enrollment of 34 students for fixed cost coverage. 

Break-even Analysis

For the break-even analysis, start-up monthly running costs assumptions are shown in the the table below, including a three person payroll, rent, utilities and an estimation of other running costs.  Payroll, at median market averages, was presented previously in the Personnel table. 

Based on these assumptions, the chart below shows the enrollment of students per month needed to break-even.  This represents about 46% of our allowable monthly enrollment based on state and county course work guidelines.

Projected Profit and Loss

Our projected profit and loss is shown on the following table, with sales increasing from the first year to the third. 

In years two and three, we are projecting full enrollment regarding cost of sales and gross margin.  The investment return in these years supports the goal of opening another campus at the end of the second year and begin the franchise offering by the end of the third year.  Profit from the additional campuses and income from franchising are not included in this business plan. 

The detailed monthly projections are included in the appendices. 

Projected Cash Flow

The following cash flow projections show the annual amounts only, significant for the first year mainly in the amounts projected in cash sales and payables. 

Cash flow projections are critical to the success of Kid’s Community College®.  The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other the monthly cash balance.  The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices. 

Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and a gradually sufficient healthy financial position.  The monthly estimates are included in the appendices.

Business Ratios

The following table shows the projected businesses ratios for our industry: Child Day Care services, SIC code 8351. Kid’s Community College® expects to maintain healthy ratios for profitability, risk, and return.

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