child care centre business plan australia

How to Build a Childcare Business Plan

A step-by-step guide for childcare with tips and a detailed outline to help entrepreneurs start their childcare business.

Table of contents

• What Is Childcare and Why Should I Start One
• Types of Childcare Providers
• Essential Steps Before Starting Your Childcare Business
• Develop Your Buyer Personas
• Decision Journey Map Definitions
• Determine Your Competitors  
• How to Start Your Childcare Business
• Conduct an Opportunity Analysis

Problem and Solution

• Execution Plan

Strategic Alliances

• Financial Forecasts
• Consider Various Funding Sources

Form Your Childcare Business

• How to Gain Enrolment at Your Childcare
• Find the Right Childcare CRM Software to Manage Enrolment with Less Work

Check Out the Tips and Tricks

Changing parent expectations have created an environment where the old way of managing the parent experience from initial enquiry through family retention doesn’t work anymore. It’s inconvenient, time-consuming, and full of obstacles that cause families to choose another childcare centre altogether.

Childcare organisations that make the parent experience digital and convenient will grow enrolment, increase retention, and remain competitive in the childcare market. In this guide, you'll view the key takeaways from our research and provided recommendations to help you grow your business by optimising the parent experience .

What is childcare and why should I start one?

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

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

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

Is starting a childcare 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 13,370 childcare centres in Australia. The growing popularity of childcare centres 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 socialise children in an environment that fosters development.  

Types of Childcare Providers 

• Family Daycare  
• Relative care  
• Preschool (only)
• Independently-owned daycare
• Childcare Groups  
• Before & After School/Vacation Care

The difference between individual centres and childcare groups.

An independently-owned daycare often has an individual owner, a centre 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 centre, so all business rights (name, branding, etc.) belong to them.  

Alternatively, a childcare group falls under a corporate brand who has acquired centres in multiple locations and either re-branding or keeping the current brand (to grow their portfolio). This type of business is usually controlled by a group of employees in a head office or headquarters facility. 

The centre directors, cooks, educators and teachers are then recruited by the childcare group itself and distributed to different locations to maintain similar or exactly the same policies, values and learning program. Ultimately each location is owned and operated by the larger corporate group.

Essential steps before starting your childcare business

1) conduct market research.

When it comes to starting your childcare centre, 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 behaviour, competitor habits, and industry trends to determine the viability of your centre 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 centre.  

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, Typeform, Google Forms 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 enrol at your childcare centre. First, identify your 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 generalise your advertising in favour of not isolating a potential consumer, you aren’t able to effectively communicate with your ideal customers – forgetting to recognise how your family entertainment centre 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 prioritise advertising towards young adults in their 20’s and 30’s.  

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

Target Market Terms

• TAM: Your Total Available or Addressable Market  

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 centre’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 organisations 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.

Standardising business processes has a significant impact on time savings, costs, and most notably on quality. In fact, standardisation improves quality by   61.9%,  on average. Create consistent  enrolment processes across all your 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 marketing approach and advertising material must follow all your corporate brand guidelines. Your organisation should have a lead management system that supports your childcare 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 marketing plan, make sure you’ve defined your market and buyer personas. Without a deep understanding of who you’re speaking to, a 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.  

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

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

Then, determine who the primary decision-maker 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 centre.  

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

For example, imagine you’re promoting availability for Holiday program at your centre. 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 centre’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 & behaviour.  

Identify the key stages in your audience’s enrolment 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 Definitions 

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

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

Consideration : During this stage, a family is touring your centre 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 centre features.  

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

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 centre. 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 a consideration stage, they may call your centre 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.  

Determine your competitors.

Competitive research helps you understand why customers choose your centre over other alternative care options. This information provides you with insight about 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 childcare centres in your area, see what programs they offer, the type of facilities, their capacity, and curriculum. Then, highlight the features that make your centre 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 services do they offer?

For example, other childcare centres, family daycare or school pre-schools.

Who are my indirect competitors?

For example, other childcare offerings that may lure potential families away such as relative care and babysitters, at home programs, etc.

What does my competitions pricing look like?

Do they offer promotional pricing or cheaper daily rates, what do they do best, what areas do they lack in, how to start your childcare business., construct a business plan.

A good business plan will guide you through each stage of starting and managing your childcare organisation- 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 centre’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 an Executive Summary

Although this section is the first thing people will read, it’s advised that you write it last, once you know the details of your business inside and out. At this stage, you will be able to articulate your business more clearly and summarise 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 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 centre (you can decide on the exact location later)  
• A potential open date  
• A projected enrolment count (number of children you can enrol)  
• Programs you plan to offer  
• Ages you hope to serve  
• A quick financial summary (based on grants, funding, and potential revenue from projected enrolments)  

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  
• Your programs and classrooms  
• Who you plan to market your centre(s) to  
• hHw your daycare facility fits into the existing competitive landscape  

This portion of your business plan is also important for outlining what distinguishes your childcare centre from your direct and indirect competitors as well as how you may continue to expand and grow your centre in the future.  

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

Describe the problem that you are solving for your customers. Childcare centres 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 centre 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.

Write an Execution Plan

The importance of an execution plan.

The execution chapter outlines how you’re actually going to make your childcare centre work . You’l l address your marketing and enrolment 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 centre 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.  

For example, a positioning statement for a 24-hour childcare centre in Sydney, New South Wales may look like this:  

“For the Sydney-based family who is seeking childcare around the clock, Jenny’s 24-Hour Childcare Centre is a safe option for young children with nutritional meals, best-in-industry sleeping arrangements, a clean outdoor play area, and highly trained care teachers and educators. Jenny’s 24-Hour Childcare Centre is the first centre of its kind within 10 km of the Sydney city centre and offers competitive pricing and competitive daily rates.”  

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

Your Mission Statement

Your mission statement is a scaled-down version of your positioning statement. This should be just one-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 childcare’s purpose and how you serve your audience.  

For example, Busy Bees is a leading early childhood education provider with the mission of “ high quality childcare and exciting learning opportunities that give every child the best start in life .”  

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 centre to ensure your venue is profitable and is appealing to investors.  

Market-based pricing: Look at what your competitors are charging and then price based on what your audience is expecting.  

As part of your marketing plan, you may wish to collaborate with other organisations such as local camps, after-school programs, pediatricians, or even other childcare centres 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 fulfilment. 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 centre each week, how many children you enrol 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 childcare centre, there’s typically an owner, a centre director, staff members, an enrolment or marketing team, accounting/administration, teachers, assistants, cooks, bus drivers, and janitorial staff. For example, the average small daycare business has 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 childcare will cost to open ahead of time can save you money, stress, and time. Childcare start-up expenses vary by size, enrolment 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 centre’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 enrol online without ever having to make a phone call to the centre- 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 centre.  

Step 1 : Average daily rate per child x your expected enrolments x 12 (annual revenue – assuming each family is still enrolled during the holiday periods).  

Step 2 : Childcare businesses make around 16% profit from their overall revenue, after Childcare 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 $110 per day for childcare. With that, your goal is to enrol 60 students by the time your childcare centre opens. Multiply ($110 x5) 60 x 12 (annual revenue). This should come out to $396,000. Lastly, multiply your revenue of $396,000 by .16, which equals a net profit of $63,360 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.  

Collect childcare grants for your business.

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

For example, companies and associations such as Australian Grants or Early Childhood Association Australia can help you with more information or support towards applying for these grants and funding.

All legitimate businesses, including childcare will need to apply for an ABN (Australian Business Number) that identifies your business to the government and the community. 

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 centre 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 

Cleaning & Maintenance 

Childcare Management System (CMS) 

Customer Relationship Management (CRM) Software 

Digital Payments Provider 

Online Forms Software 

Research Your Vendors

Check their most current reviews and current list of clients.

Review Your Options

Don't settle for the first vendor you see, research and receive quotes from at least 3 vendors.

How to gain enrolment at your childcare.

The next step after successfully starting your daycare business is to grow your centre and gain enrolments.  

Begin by building a string company culture, actively marketing your childcare centre, and finding the right childcare technology to optimise your enrolment process and save time.  

Create a culture where staff want to work.

A childcare centre 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.  

Market your centre.

A childcare marketing strategy starts with an achievable goal. Do you want to fill your enrolment spots? Do you want to build a waitlist? Should you focus on scheduling more tours?  

Choose an objective and measurable results – so you can track and analyse your marketing performance.  

Market, promote, and advertise your childcare centre with...  

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 software that automates the reports you need helps you to saves time and improve your return on investment (ROI).  

For example, with a Source of Families report, you can see where your leads are coming from. It helps you enhance your marketing efforts and refine your spending. Invest in the channels that are popular and spend less on the ones that aren’t working to generate more high-quality leads.  

Find the right childcare CRM software to manage enrolment with less work.

ChildcareCRM is revolutionary childcare software that automates lead capture, follow-up, scheduling tours, and reports. With digital enrolment forms  – you and your staff will save hours of time. Plus, craft beautiful, personalised marketing campaigns to continually grow your business.  

Further, marketing is the growth engine for every new childcare centre. But missed leads, slow response times, a complex parent experience, and lack of reporting make marketing difficult. Busy and overworked staff often don’t have time to complete every manual-but-necessary marketing activity, so opportunities are lost.   

Get more from your marketing while saving educators and centre directors 10 hours every week with ChildcareCRM. Automate everything from lead capture to reporting—all from one place.

For Current Users

Visit our website to learn more.

For Interested Users

Schedule a demo to take the next step and effortlessly increase occupancy and gain enrolments from the get-go.  

Get started With LineLeader.

Resources to help you run your childcare business..

How LineLeader Enhances Personalized Marketing for Childcare Enrollment

10 Ways LineLeader Streamlines the Parent and Staff Journey in Childcare...

Adapting Enrollment Strategies Post-Pandemic: What Childcare Centers Need...

How to Start a Childcare Business

• Written by  Lorina
• January 12, 2015

How many times while working in childcare, you may have thought of opening up your own childcare centre? Being a boss, implementing your own ideas and suggestions, running things how you see fit. It’s a great opportunity to make a difference within the community and to offer your own experiences and knowledge. It may sound like a good idea but the reality of it, it’s a hard task! There are a lot of regulations, government policies and requirements that needs to be followed. However if you are willing to put the hard work in then it can be very rewarding! This article will provide you with information on what you need to do in order to start your own childcare business.

When starting a childcare business it’s best to have some experience with working in different early childhood settings and be qualified to own a childcare centre. Having a degree isn’t essential to own a childcare centre however a Diploma qualification would enable you to understand the ins and outs of responsibilities within a centre. Along with a qualification you will also require:

• a Police/Criminal check
• Current First Aid Certificate
• Current Working With Children’s Check
• Current Anaphylaxis training

Being a qualified owner is beneficial as you will be aware of what is required and meet the needs of the educators and families. It also provides trust in staff knowing you are qualified to own a centre. There is nothing worse than working for an owner who has no idea on childcare itself. So, it’s best to spend a couple of years getting qualified and gaining experience… After all this is your business and a lot depends on the choices you make.

Types of Early Childhood Services

When starting a childcare business there are many different types of childcare services you can offer within the community. Before deciding on which service you would like to start it’s best to do some research in the locality you’re planning to run your service. Find out the community needs and see what type of service would suit the needs of the community best. For example: in the locality if there are 3 long day care centres offering care for 0 – 5 year olds, it may be beneficial to start up a preschool service which focuses primarily on school readiness.

Childcare services include some of the following:

• Long Day Care – Long day care (LDC) is a centre-based form of childcare service. LDC services provide quality all-day or part-time care for children of working families and the general community.
• Family Day Care – Family day care (FDC) services support and administer networks of FDC carers who provide flexible care and developmental activities in their own homes for other people’s children.
• Preschool – Pre-schools are also referred to as kindergartens in some States. They essentially provide services to children in the year prior to attending primary school and involve structured, seasonal programs for two or three days a week.
• Occasional Care – Occasional care (OCC) is a centre-based form of child care. OCC services provide flexible care which allows parents to meet their work related and non-work related commitments
• OOSH - Outside school hours care (OSHC) services provide care before and/or after school and/or care during school vacation time.

If you want to start up a service that will be part of the competition in the locality, find a “niche” idea that you can advertise and sell your centre on in order to gain popularity and enrolments. Think of an idea that the other centres are not offering. Some ideas include: being an organic centre, offer after hour care, only target a specific age group (e.g. nursery care only), offer play groups with parents etc. Snoop out the competition and see what unique idea you can come up with!

Provider Approval & Service Approval

Provider Approval - Before operating an early childhood service you will need to obtain a “provider approval”. This is an application process conducted by the Regulatory Authority. This process will examine whether you are a fit and proper person to be involved in the provision of an early childhood service. This is national recognized. To be deemed as a fit and proper person assessed on your history of compliance with current education and care service law, criminal history check and whether you have had any bankruptcy issues. Once submitted you will receive a result in 60 days.

For more information on Provider Approvals: http://www.acecqa.gov.au/provider-approvals

Service Approvals – If you application is successful as an approved provider you may apply to the Regulatory Authority for service approval. Service approval is needed if you will be the operator of the service and will be responsible for the management of the service. This applications requires details on the type of service you will be managing, insurance, permits, policies and procedures etc.

For more information on Service Approvals: http://www.acecqa.gov.au/service-approvals

Before obtaining any approval it’s best to contact your state or territory Regulatory Authority for further information on approvals.

Franchising, Building or Pre-Existing Centres

Now you what type of service you want to provide to the community and have been approved to offer care, next step is to think about whether you will be building a centre from scratch, buy a pre-existing centre from owners or buying a franchise?

It’s really hard to determine which one is more suitable because it really depends again on the locality and how much money you are willing to spend during this process.

• Building a Centre - When building a centre from scratch it will probably cost more than buying a pre-existing centre. You need to gain council permits, building permits, landscape and interior designers for both indoors and outdoors and much more! The biggest benefit of building a centre from the beginning is you can basically design the centre of your dreams.
• Pre- Existing Centres - There are many childcare centres that are available to buy that are already running. They have staff, children and families and everything within the centre has already been settled. Once you purchase the centre you will be the owner and take over responsibility. One of the benefits of purchasing a pre-existing centre is that all the work has already been done. All you really need to do is maintain it.
• Franchising Centres - In the childcare business there is some stiff competition out there when it comes to running a childcare business. Instead of being a competitor you can purchase a franchise. A franchise is basically running a centre based on the main centre. Initially start-up costs will be involved however you will receive all that you need through support services based on the main centre. All documentation, policies, procedures etc. will be the same as the main centre itself. If you have been working at a particular centre and like the way it is run then this is a great opportunity for you to start a franchise rather than starting from scratch.

No matter which option you choose you will need to spend a bit of money and it varies depending on a number of factors. It’s probably best to start off with a budget on how much you are willing to spend on the centre. It can range anywhere from $200,000 and more. Locality is also a big factor. City areas and surroundings are going to be more costly than rural areas. Another factor to consider is the size of the centre. It will cost less to build or maintain a centre for a smaller amount of children (less than 60) than a larger centre (more than 60). However you need to consider the needs of the community before determining how big the centre will be.

When starting a childcare business and running a centre, it’s important that the centre is insured. Insurance protects against accidents, personal injury, legal action and property damage. Insurance types, how much you need and requirements depend on the type of service you are providing.

Under the Family Assistance Legislation of the Department Of Employment, Education and Workplace Relations for education and care service the following insurance must be provided:

• Public Liability – not less than $10 million for each and every claim
• Workers Compensation - required by law
• Professional Indemnity – not less than $5 million per claim

Depending on the type of childcare service you are providing you can also consider purchasing the following types of insurance:

• directors’ and officers’ liability (for community-owned services)
• personal accident insurance for volunteers
• property damage
• fire and theft
• money insurance
• car insurance (for damage resulting from work related activities)
• fidelity guarantee
• electronic equipment

It’s best to seek support from an Insurance company authorised by the Australian Prudential Regulatory Authority on the types of different insurance that your service may require.

Legislative Requirements and Responsibilities

It’s imperative that when starting up a childcare business that you are aware and are up to date with the current legislation and law that is implemented throughout Australia. Even if you are an existing educator wanting to start up a childcare business and are familiar with the legislation and law you should understand it completely.

Throughout Australia most services (LDC, OSHC, FDC), in most states, are regulated by the National Quality Framework. The NQF includes:

• the National Law
• the National Regulations – Education & Care Services National Regulations
• a National Quality Standard – for assessing the quality of the service
• The National Quality Framework provides early childhood settings support in improving the quality of education and care, improve program delivery that impact child’s learning and development and assist families to make informed choices about which services suit their child best.

Under the National Regulations services must meet specific operational requirements including:

• Educational Programs & Practice
• Building Standards & Physical Environments
• Staffing Requirements
• Policies, Procedures & Records

For more information on NQF: http://www.qld.gov.au/education/childcare/providers/pages/legislation.html

The information and details provided here is just the beginning of the long road ahead of starting your own childcare business. It should be used as a starting point to make an informed decision about whether or not it is possible for you to own a childcare service. If you are willing to spend the money, go through all that’s necessary, you can create a fantastic service for children to learn and develop. Also, a childcare business is less likely to fail as the need for childcare centres are in high demand. So, good luck and take a chance to do something wonderful for the community…

http://www.acecqa.com.au

http://www.licence.smallbusiness.wa.gov.au

http://www.startupsmart.com.au

http://www.guardianchildcare.net.au

http://deta.qld.gov.au

http://www.gowrievictoria.org.au/

• childcare career

Related Articles

Childcare Wages In Australia +

Including Aboriginal and Torres Strait Islander Cultures In Your Service +

Diploma Qualified Educator Wages In Early Childhood Services +

Avoiding Cultural Tokenism In Early Childhood Settings +

Dealing With Workplace Bullying In Childcare +

Bush Tucker Gardens In Early Childhood Services +

Incorporating Natural Materials In The Learning Environment +

Loose Parts: A Guide For Educators +

Children Going Barefoot In An Early Childhood Setting +

Process Art Vs Product Art In Early Childhood Services +

Suggestions

Interest Areas In Childcare

Within the physical environment, Interest Areas are prepared and maintained to encourage children in their...

Probation Period When Starting A New Job In Childc…

When you've have accepted a job offer in service, it is fairly common that you...

Benefits Of Singing To Children

Music in varied forms offers a plethora of benefits to children, whether they are listening...

• Childcare Articles
• Childcare Programming
• Student Articles
• Teaching Children
• Child Development
• Child Behaviour
• Parenting Articles
• Pregnancy Articles
• Child Health & Safety
• Games and Activities
• Art and Craft
• Rhymes and Songs
• Cooking Activities
• Cutting Worksheets
• Pre Writing Worksheets
• Alphabet Worksheets
• Number Worksheets
• Colours Worksheets
• Shapes Worksheets
• Vocabulary Worksheets
• Phonics Worksheets
• Reading Worksheets
• Writing Worksheets
• Math Worksheets
• English Worksheets
• Classroom Displays
• Colouring Pages
• All EYLF Templates
• Learning Stories
• Reflections
• Child Observations
• Child Portfolios
• Curriculum Plans
• Forms and Checklists
• FAQs and Troubleshoot
• Childcare News
• Childcare Events
• Forum Index
• Active Topics
• Childcare Forums
• Student Forums
• Parent Forums
• General Discussions
• General News
• Articles News
• Activities News
• Printables News
• EYLF Templates News

Subscription

• Subscription Plans
• Edit Profile
• Newsletter Settings
• Forum Settings

Appsessment

• Terms & Conditions
• Copyright & Disclaimer
• Privacy Policy

© 2009-2024 Aussie Childcare Network Pty Ltd. All Rights Reserved .

• Testimonials
• Work for Us
• Aged Care Business Plan
• Bank Loans & Investor Business Plans
• Builder & Construction Business Plans
• Café & Restaurant Business Plans
• Child Care Business Plans
• Fitness & Wellness Business Plans
• Food Manufacturing & Distribution Business Plans
• Franchise Business Plans
• Grants Business Plans
• Hair & Beauty Salon Business Plans
• Hotels & Licensed Premises Business Plans
• Labour Hire Licence Business Plans
• Lease Business Plans
• Migration and Visa Business Plans
• NDIS Business Plans
• NEIS Business Plans
• Property Development Business Plan
• Registered Training Organisation Plans
• Start-up Business Plans
• Tech Business Plans
• Business Planning Boot Camp – WORKSHOP

Can't find what you're looking for?

If you can’t find the right fit, tell us what you need – we’ll give you a quote!

• Urgent Business Plan Express Services
• One Hour Coaching
• Business and Company Profile Writing Service
• Document Retrieval/Version 3 Service
• Clients - helpful material

Sample Business Plans

Free financial templates, blog articles, business plan sample for a child care centre, download sample business plan, why use our example business plans.

Our example Business Plans show all the essential topics and elements including:

·        Executive Summary: Get the accrediting authorities on-side with a concise overview of your business and Child Care Centre.

·        Services Description: Clearly articulate all of the details of your Centre: rooms, children, staff, additional value-added services (home cooked meals, excursions/incursions, etc.).

·        Operations and Business Model: Outline how you will generate revenue and achieve profitability.

·        Market Analysis: Demonstrate your in-depth understanding of your target market and competition.

·        Marketing and Sales Strategy: Detail your plans for reaching and acquiring new parents and families.

·        Financial Projections: Detail and showcase your financial forecasts and funding requirements.

We categorise our example Business Plans to help you find the best fit for your Centre.

Whether you’re building a small Centre for 30 children, or a big suburban Centren and pre-school for 100 children, you’ll find guidance on what your Plan needs to include here.

Once you have had a chance to review all of the different Sections and Topics in our example Business Plan, please do not hesitate to reach out if you need help from us with any of the Sections if you feel like having a go yourself, or if you would like us to create your whole Plan. If you’d like us to write your whole Plan for you – no problem! We will research, gather the information you need from our sources, write, edit, format, and include charts and pictures, proof, send it to you, make any changes you need, ready for you to forward on to ACE

Small Business Plans provides comprehensive, professional, ,expertly researched and written Business Plans with personalized service via online meetings, phone chats, and where required, face-to-face meetings.

Ready to Start or extend your Child Care Centre?

Download our free example Business Plan for your Child Care Centre today and take the first step towards turning your vision into reality.

TikTok coming soon

Acknowledgement of Country

Small Business Plans acknowledges and pays respect to the past, present and future Traditional Custodians and Elders of this nation and the continuation of cultural, spiritual and educational practices of Aboriginal and Torres Strait Islander peoples. 

Call Us: 0434 027 212

[email protected]

© 2023 • Small Business Plans

Office Hours

• Monday - Friday 7:30am - 7:30pm
• Weekends 7:30am - 7:30pm

Please let us know the sample plan you’re interested in. We’ll send it to your email address. If your email address is not a business email (for example a [email protected]), or is a Gmail, Hotmail, or yahoo email, please add either an ABN and/ or your first and last name – we do this to prevent spam and scraping of our sample plan intellectual property.

Find Your Plan

• Bank Loan / Investor Business Plan
• Builder & Property Business Plan
• Cafe & Restaurant Business Plan
• Child Care Business Plan
• Fitness & Wellness Business Plan
• Food Manufacturing & Distribution Business Plan
• Franchise Business Plan
• Grants Business Plan
• Hair & Beauty Business Plan
• Hotel & Licensed Premises Business Plan
• Labour Hire Business Plan
• Lease Business Plan
• Migration Business Plan
• NDIS Business Plan
• Registered Training Organisation Business Plan
• Start Up Business Plan
• Tech Business Plan
• Business Planning Boot Camp

Automated page speed optimizations for fast site performance

• (03) 9225 5254
• [email protected]
• Mon - Fri 9am - 5pm

• Property Acquisitions
• Childcare Needs Assessment Modelling and Financial Feasibility Study
• Property Leasing
• Childcare Centre Design & Design Management
• Development Management
• Project Administration
• Childcare Operational Consultancy
• Brand Design & Marketing
• Opportunities

The essential components of a successful childcare centre business plan

Childcare or Daycare Centre Business Plan

As any business owner knows, a solid business plan is essential for success. But when it comes to a childcare centre business plan, there are specific components that must be included in order to ensure the success of the business. In this blog, we will discuss the most important components that should be present in your childcare centre business plan.

• Executive Summary
• Marketing Plan
• Operational Plan
• Financial Projections
• Competitive Analysis
• Risk Assessment

1. Executive Summary

The executive summary is a brief overview of your day care centre business plan. It should include your mission statement, business objectives, the target market you are serving, and a summary of your financial projections. It is important to make this section concise and to the point as it is the first thing a potential lender or investor will read.

Contact Information Ensure you provide comprehensive contact information. Include your name, phone number, physical address, email address, and any other pertinent details. This information makes it easy for potential partners and investors to reach out to you.

Business Concept Detail the specifics of your childcare business, whether it’s a one-person babysitting service or a 24/7 child care facility. Describe your staff size, the services you offer, provide an overview of daily operations, and outline the necessary operating licenses you possess or intend to obtain.

Business Structure Clearly list the owners, partners, managers, and employees involved in your venture. Explain the organizational structure and how your business will function. This section should also encompass your target demographic and basic marketing strategies.

Mission Statement Define the core purpose driving the establishment of your childcare business. This statement encapsulates the fundamental values and goals that guide your venture, emphasizing its commitment to providing exceptional care and support to children and families.

2. Marketing Plan

A successful childcare centre relies heavily on its marketing efforts. In this section, outline how you plan to market your business to potential families and the community. This could include local advertisements, promotional events, or partnerships with other businesses in the area. As you craft your marketing plan, consider the following elements:

Market Analysis Begin by providing a concise overview of the childcare landscape in your area. Determine whether your business will be one of many daycares in close proximity or if you are addressing a childcare deficit within the community. Dive into neighborhood trends, assess your competition, and examine the average cost of childcare services in your locality. Additionally, detail information about your target clientele and elaborate on how your childcare services will cater to their specific needs, thereby demonstrating the immense potential of your business.

Business Niche Define your unique position within the childcare industry. Whether you specialize in a particular age group or offer evening care services, articulate how your business carves out a distinctive niche and sets itself apart from the competition. Highlight the specialized services you provide that will resonate with your target audience.

Price, Product, Promotion, Place, and People To succeed, you must ensure that your childcare business aligns the right pricing and product offerings with the right people in the most effective manner. Analyze market data and demographic insights to formulate marketing and advertising strategies that resonate with your target clients. Address the five key elements – price, product, promotion, place, and people – to optimize your approach and ensure your childcare business reaches the right audience effectively.

3. Operational Plan

The operational plan describes how your business will operate on a day-to-day basis. This section should include information on staffing, scheduling, and the services that you will offer. It is important to be detailed in this section as it will help you identify potential challenges and give you a plan of action for dealing with them. Staffing Outline your staffing requirements, including the number of employees, their roles, and qualifications. Clarify the hiring process and your approach to training and development.

Scheduling Define your operating hours, including weekdays and weekends, if applicable. Discuss any seasonal or special schedule adjustments. Ensure a smooth workflow by detailing staff shifts and responsibilities.

Service Offerings Provide a comprehensive list of the childcare services you intend to offer. Specify age groups, programs, and any specialized offerings. Explain how these services align with local demand and regulations.

4. Financial Projections

Your financial projections will be based on your operational plan, so it is important to have a clear understanding of your business operations before development . This section should include a balance sheet, income statement, and cash flow statement. You will also want to include specifics on how much capital you will need to start the business and how you plan to use it.

Tax Clearly outline your childcare business’s legal structure, such as whether it’s a company, partnership, sole trader, or trust, ensuring compliance with Australian taxation regulations. A well-defined tax plan is essential for navigating the Australian tax landscape effectively.

Insurance Compliance Thoroughly assess the insurance requirements specific to the Australian childcare industry, including risk assessment, liability coverage, and legal obligations. Ensure that your business is adequately insured to meet local regulatory standards.

Budget Develop a comprehensive budget that accounts for all financial aspects of your childcare business, including personnel costs, equipment procurement, supply expenses, professional fees, and other relevant expenditures. Craft both monthly and annual budgets, accompanied by a cash-flow forecast tailored to the Australian market to maintain financial stability.

Managing Market Fluctuations: Address the unique market dynamics and fluctuations that childcare businesses in Australia may encounter. Create contingency plans to effectively navigate unexpected changes and fluctuations in demand, while adhering to local regulations and standards.

5. Competitive Analysis

A competitive analysis will help you identify other childcare centres in your area and the services that they offer. This will allow you to identify gaps in the market and give you an idea of how to differentiate yourself from your competitors. You should also be aware of potential threats to your business, such as increased competition in your area.

Identifying Market Gaps Research the daycare centers in your area to pinpoint the gaps and unmet needs within the market. Use this insight to strategically position your childcare business to meet these demands effectively.

Setting Yourself Apart Understanding your competitors allows you to carve out a unique identity for your childcare center. Craft a compelling value proposition that highlights what sets you apart from others in the field.

6. Risk Assessment

A risk assessment is essential for any business plan. Identify potential risks to your business, such as changes in the economy or an increase in competition. Develop a plan for handling these risks and include this plan in your business plan.

Anticipating Threats Be vigilant about potential threats, including the emergence of new competitors in your locality. Prepare contingency plans to safeguard your market share and reputation.

Staying Informed Continually monitor the competitive landscape to adapt and refine your business strategy.Stay attuned to evolving trends and emerging childcare services in Australia.

In conclusion, a successful daycare centre business plan should include a combination of operational, financial, and marketing strategies. It is important to be detailed, concise, and realistic in developing your plan. Remember that your business plan is a living document that should be updated regularly to reflect changes in the market and your business operations.

By following these steps, you can create a comprehensive childcare or daycare centre business plan that will help you launch and grow your childcare centre.

Share this post

Are you looking for, experienced childcare centre developers.

Get a free initial consultation from leaders in childcare centre design, development and business management.

• Business Set Up
• Consumer Law
• Data & Privacy
• Employment Law
• Getting Finance
• Intellectual Property
• Technology & Software
• Professional Services
• Construction & Trades
• Fitness, Health and Wellness
• Online Business
• Food & Hospitality
• Meet the Team
• Quick Q&As
• Get Started
• Member Login

How To Start A Childcare Business In 2024

Childcare businesses are a valuable and essential service, so starting one can be a gratifying experience. As they involve one of the most vulnerable members of society, childcare businesses are held to a particularly high standard. 

If you’re interested in opening your own childcare business, you will need to consider all your legal obligations first. In this article, we’ll cover these legals as well as any other important considerations when starting your own business in Australia . 

How To Start Up A Childcare Business In Australia

Firstly, the correct qualifications are essential in starting a childcare business. The minimum qualification to run a childcare business is a Certificate III in Early Childhood Education and Care . You should also be equipped to administer CPR and first aid. These qualifications are not only required for you as the business owner, but also any staff you may wish to hire. 

Next, decide on a business structure and start the registration process for your business . Prior to doing this, it’s important to have determined the key factors regarding your business, such as  assessing what kind of childcare you will be starting. 

For example, think about whether or not you will provide after school care, occasional care or an entire day service. Creating a business plan can help you clarify these matters. 

You will also need to attain Provider Approval, which will determine whether you can be deemed fit to run your childcare business. Once you have gotten your provider approval, you can then apply for Service Approval. 

Finally, you will need to look into getting an appropriate space and having the right equipment for the children. The National Law Regulations provides details on the standard expected of childcare service providers. This includes the kinds of activities, care and provisions the children will be expected to have and partake in. 

Additionally, think about how you are going to market your new business and get the word out there about your services. 

Register A Childcare Business In Australia

When starting a childcare business, one of the most important steps is making things official – this is where you register your childcare business. To register your business, you will need to determine what legal structure your childcare business will have. In Australia, the three most common types of business structures are a sole trader, partnership and company.

To register as a sole trader or in a partnership, you need to apply for an Australian Business Number (ABN). The application process can be completed online — if you’re starting business with a partner them each partner will need their own ABN. Unless you meet the exception, then you will also need to register a business name . Once you have submitted your application, you’ll be notified of an outcome. The set up process for a sole trader or partnership business is relatively simple however, it’s important to be mindful of the risks. A sole trader or partnership business provide very little legal protection as the business is attached to you personally. This means, you’ll be liable for everything that happens with your childcare business which can be a pretty big gamble.

For better legal protection, registering a compan y is the way to go. As a company is a separate legal entity, you will have limited liability. Moreover, companies are the more regulated business structure – clients are typically likely to trust a registered company rather than a business. However, registering a company can get a bit complex. On top of the registration process, companies have ongoing obligations you will need to keep up with – it’s better to have a legal expert walk you through the company set up to make sure everything get’s done right.

What Documents Do I Need To Run A Childcare Centre?

Every business needs the correct legal documents to be able run a legitimately functioning venture. Childcare is no different – before you get to running the business, it’s necessary to take care of the legal aspects first. 

When starting a childcare business, consider looking into getting the following legal documents: 

• Employment Contracts
• Non-Disclosure Agreements  
• Website Terms and Conditions
• Cookie Policy  
• Privacy Policy  
• Intellectual Property Protection

Of course, each individual business is different and therefore, not all businesses will have the same legal requirements. It’s best to talk to a legal professional to get a more specific idea on the correct documents you will need to have sorted in order to start your childcare business. 

Do I Need A Childcare Agreement?

Yes, it’s important to have a Child Care Agreement in place between you and all your clients. A Child Care Agreement sets out what can and cannot be expected of your business so that all parties are on the same page. 

Furthermore, if a dispute ever arises concerning your services, the agreement can always be referred to. In other words, it ensures that your arrangement is detailed in writing to secure the details. 

What Is Included In A Childcare Agreement?

A Child Care Agreement can be catered to your needs, however, most childcare agreements includes information regarding: 

• The services being offered
• The duties and obligations of both parties
• Payment methods
• Liabilities and waivers 

Arguably, a Child Care Agreement is one of the most important documents you will need to run a childcare business as it not only sets the tone for the relationship with your clients, but it also works to protect your business in various ways. 

Is A Working With Children Or Police Check Required In A Childcare Business?

A working with children check and police check will be required by you and all your staff. These checks will determine whether or not someone is suitable to be around children. For a childcare business, it’s a legal requirement to have these checks completed prior to allowing anyone to work with children.  

What Are My Employer Obligations?

As an employer, it is your duty to make sure your staff are being treated fairly and in accordance with national standards. This includes: 

• Making sure all employees are paid fairly
• Creating a safe environment 
• Ensuring that employee have the correct leave, entitlements and days off
• Actively taking into consideration employee concerns
• Promoting equity and fairness in the workplace

It’s an employers duty to actively create a positive working environment for their employees. 

Work Health And Safety

A good work environment should avoid harming employees both physically and physiologically. 

Workplace Health and Safety protects this right of employees and is one of the most important obligations an employer has towards their employees. As an employer, you have a duty of care towards your employees to ensure you have taken all reasonable steps to provide a working environment that does not bring physical or mental harm to them.  

Safe Work Australia provides guidance on upholding the best workplace health and safety practices, so it’s important to become familiar with them. 

There are many ways to implement work health and safety, such as: 

• Making sure the work space is free of hazards 
• Routinely training employees on safe practices
• Allowing employees a chance to raise any concerns regarding the work environment 
• Strictly prohibiting and taking immediate action against bullying or harassment  
• Supplying the correct equipment needed 

Starting A Childcare Business From Home

Starting a childcare business from your own home is always an option – it’s convenient and can be much easier to operate. However, you will need to look at your local planning and zoning laws in order to determine whether or not you are allowed to operate a childcare centre from your place of residence. 

If you’re good to go on that end, then you will need to take into consideration how you can assign a space for childcare and consider other matters such as: 

• Keeping the children away from the rest of the house (potential hazards in areas such as the kitchen) 
• How many children can your home space accommodate 
• Operating hours and potential noise complaints
• Parking for parents when they are picking up and dropping their children off 
• Updating any current insurance coverages  

My Employees Work From Home – What Legal Issues Should I Consider?

If you’re running your business from home or you have franchised your childcare business to a franchisee who also operates from their own home, then it’s important to take into consideration any issues arising from work from home arrangements. 

You’ll need to think about:

• Whether the space is appropriate for this kind of business
• What changes will need to be made to the are to make it suitable for childcare
• Striking a work life balance when operating from home
• Maintaining professional conduct with the absence of a traditional workplace environment
• Continuous training and open communication with employees

Key Takeaways

Naturally, there are a lot of aspects to consider before you start to run a childcare business. It’s always good to seek the help of a legal professional to help you sort through it all.  

To summarise what we’ve discussed:

• First and foremost, you will need to be qualified and have the correct approvals
• Decide where and what kind of childcare you will be running
• Register your business and have the correct legal documents, such as a Child Care Agreement
• If you’re hiring employees, have a plan to fulfil your obligations towards them
• Take into account the additional considerations of running a childcare business from home, such as maintaining a professional standard 

If you would like a consultation on starting a childcare business, you can reach us at 1800 730 617 or [email protected] for a free, no-obligations chat .

Sprintlaw's expert lawyers make legal services affordable and accessible for business owners. We're Australia's fastest growing law firm and operate entirely online.

Speak to our expert lawyers, quick and online.

• Full Name *
• Email Address *
• What are you looking for help with? *
• Phone This field is for validation purposes and should be left unchanged.

Related Services

Register a company, child care agreement, business name registration, employment contract packages, workplace policy.

Get in touch. We'll have your FREE quote ready within 1 business day.

• Name This field is for validation purposes and should be left unchanged.

Download our Top 3 Legal Mistakes guide.

Book in a free consultation with us to discuss your legal needs.

You're visiting Sprintlaw . Would you like to switch to Sprintlaw ?

• Business Sales
• Commercial Leases
• Construction
• Creative & Entertainment
• Digital Marketing & Advertising
• Franchising
• Not-for-profits & Charities
• Regulatory Compliance
• Software & IT
• Accountants
• Agribusiness
• Beauty Industry
• Clothing Business
• Consulting and Professional Services
• Creative Industries
• Education and Training
• Event Planning & Management
• Fitness and Wellness Industry
• Furniture & Homeware
• Hairdressing Business
• Healthcare and Medical Practices
• Hospitality and Tourism
• Instagram Business
• Legal Services
• Logistics and Transportation
• Marketing Business
• Party Business
• Restaurant and Cafés
• SaaS Business
• Sports & Recreation
• Technology and Software Development
• Travel Agencies and Tour Operators
• Creative & Entertainment
• Data & Privacy
• Digital Marketing & Advertising
• Not-for-profits & Charities
• Software & IT
• Uncategorized
• Getting Started With Your Legals
• Business Ideas and Plans
• Business Structure
• Business Partners
• Industry Regulations
• Building a Team: Employees and Contractors
• Online Business and Privacy

Child Care Business Plan Template

Written by Dave Lavinsky

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

Download our Ultimate Child Care Business Plan Template here >

What is a Childcare Business Plan?

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

Why You Need a Business Plan as a Childcare Provider

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

Source of Funding for Child Care Businesses

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

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

Finish Your Business Plan Today!

How to write a business plan for a childcare business.

A childcare business plan should include 10 sections as follows:

Executive Summary

• Company Overview

Industry Analysis

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

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

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

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

Company Analysis

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

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

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

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

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

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

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

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

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

Finish Your Childcare Business Plan in 1 Day!

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

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

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

Direct competitors are other child care businesses.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Free Business Plan Template for Childcare Providers

You can download our child care business plan PDF .

Childcare Business Plan Summary

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

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

Additional Resources For Starting a Childcare Center

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

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how our professional business plan writers can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Business Guides

Start your own childcare business in australia.

• Last Updated: March 27, 2023

Start your own Childcare Business with our complete step by step guide by

Beef Jerky Business

Candle business, startup costs, cleaning business, lawn mowing business, gardening business, youtube channel, starting a business in australia, setting up a proprietary limited company, registering for gst, guide to business insurance in australia, small business web design, registering a domain name, cake business from home, childcare business, table of contents.

Are you passionate about children’s well-being and want to make a difference in their lives? Starting a childcare business can be a rewarding and fulfilling venture for you. As a childcare provider, you’ll have the opportunity to nurture and shape young minds, while also creating a thriving business.

You might want to start a childcare business if you are:

• Passionate about working with children and want to make a difference in their lives
• Be your own boss
• Fill a need for quality childcare in your community
• Wanting to create a business that has a positive impact on families
• Looking for a meaningful and satisfying career.

But starting a childcare business isn’t just about providing a safe and secure environment for children. It’s also about building a strong brand and marketing your services effectively to attract and retain clients. With the right approach to sales and marketing, you can establish a reputable and successful childcare business that stands out from the competition.

So if you’re ready to start a childcare business prioritizing excellence in care and marketing, we’re here to help. Let’s work together to create a business that not only supports children’s development but also fosters lasting relationships with families in your community.

Main Reasons to Start a Childcare Business

Starting a childcare business can be a rewarding and fulfilling career path for those with a passion for working with children. Below are some reasons why starting a childcare business may be the right choice for you.

Passion for working with children and want to make a difference in their lives

As a childcare provider, you have the opportunity to impact children’s development and help them reach their full potential. You can create a safe and nurturing environment where children can learn and grow.

Be your own boss and have the flexibility to set your own schedule and work from home

Starting a childcare business allows you to be in control of your work schedule and work-life balance. You can choose to work full-time or part-time and have the freedom to make your own decisions about how your business is run.

A need for quality childcare services in your community and want to fill that gap

Providing high-quality childcare can be a valuable service to families in your community. By offering a safe and stimulating environment for children to learn and grow, you can help support working parents and contribute to your local economy.

Create a business that has a positive impact on families and the local economy.

Starting a childcare business can be a way to give back to your community by providing a valuable service that supports families and helps the local economy thrive. By creating jobs and supporting local businesses, you can make a positive impact on your community.

You have experience in childcare or early childhood education and want to leverage that expertise to start your own business

If you have a background in childcare or early childhood education, starting your own business can be a natural next step. You can use your experience and knowledge to create a high-quality childcare program that meets the needs of children and families.

Potential for growth and profitability in the childcare industry and want to take advantage of that opportunity.

The childcare industry is a growing field with potential for long-term profitability. By starting your own business, you can capitalize on this opportunity and build a successful career.

Provide a safe, nurturing, and stimulating environment for children to learn and grow

As a childcare provider, you have the opportunity to create a positive and enriching environment for children. By offering engaging activities and opportunities for learning and development, you can help children reach their full potential.

Building lasting relationships with families and become an integral part of your community

Starting a childcare business can be a way to build strong relationships with families and become a trusted member of your community. By offering a supportive and caring environment for children, you can create a sense of community and connection among families.

You believe that high-quality childcare is essential for children’s development and want to contribute to that mission

Providing high-quality childcare is essential for children’s development and can have a lifelong impact on their well-being. By starting a childcare business, you can contribute to this mission and make a difference in the lives of children.

Have a meaningful and rewarding career that aligns with your values and priorities

Starting a childcare business can be a way to create a career that aligns with your values and priorities. By providing a valuable service to families and making a positive impact on your community, you can create a career that is both meaningful and rewarding.

Steps on How to Start a Childcare Business

Starting a childcare business can be a rewarding and fulfilling venture for those who are passionate about working with children. However, it’s important to understand that it requires careful planning, research, and attention to detail in order to be successful.

In this outline, we’ll cover the essential steps for starting a childcare business, from developing a business plan to opening your doors. By following these steps and taking a strategic approach to building your business, you can create a safe and nurturing environment for children while also building a successful and profitable business.

Develop a Business Plan

Developing a business plan is an essential step in starting a childcare business, as it helps you clarify your vision, identify potential challenges, and create a roadmap for success. Here’s a more detailed breakdown of what’s involved in developing a business plan:

Determine your target market and the type of childcare services you want to offer.

The first step in developing a business plan is to determine your target market and the type of childcare services you want to offer. Will you provide home-based care, center-based care, or a combination of both? Will you focus on full-time or part-time care? Will you specialize in infant care, preschool education, or after-school care? By defining your niche, you can develop a clear marketing strategy and pricing structure that meets the needs of your target audience.

Research your competition and identify what makes your services unique and valuable.

Once you have a clear understanding of your target market, it’s important to research your competition and identify what makes your services unique and valuable. What are the strengths and weaknesses of your competitors? How can you differentiate your services from theirs? By offering unique services, such as flexible hours or specialized curriculum, you can stand out in a crowded market and attract more clients.

Determine your pricing structure and projected expenses in order to create a sustainable and profitable business.

You need to determine your pricing structure and projected expenses. Consider factors such as rent or mortgage, utilities, insurance, equipment, supplies, and staff salaries. How much will you charge per child per hour or per day? Will you offer discounts for siblings or referrals? By calculating your expenses and revenue, you can ensure that your pricing structure is competitive and profitable.

Develop a marketing strategy to promote your services to potential clients.

In order to attract clients, you need to develop a marketing strategy that promotes your services to potential clients. This can include creating a website, social media presence, and print materials such as flyers and brochures. You may also want to consider offering promotional discounts or hosting open houses to attract new clients.

Secure financing or funding for your business, if needed.

Starting a childcare business can be expensive, so you may need to secure financing or funding to cover startup costs. This can include loans from banks or investors, or grants from government or nonprofit organizations. It’s important to carefully consider your financing options and create a realistic budget to ensure that you can meet your financial obligations and achieve your business goals.

By following these steps and creating a solid business plan, you can lay the foundation for a successful childcare business that provides high-quality care to children and meets the needs of your community.

Meeting legal requirements

Meeting legal requirements is a crucial step in starting a childcare business. Failure to comply with licensing, permits, and insurance requirements can result in fines, legal action, or even closure of your business. Here are some important things to keep in mind when meeting legal requirements:

Check with your state’s licensing agency for regulations and requirements for starting a childcare business.

Each state has its own regulations and requirements for starting a childcare business. Check with your state’s licensing agency to find out what you need to do to become licensed. Some common requirements include background checks for staff, minimum staff-to-child ratios, and facility safety standards.

Obtain the necessary licenses, permits, and insurance.

To legally operate a childcare business, you may need to obtain certain licenses and permits. This can include a business license, childcare license, and zoning permit. You may also need to obtain liability insurance to protect your business in case of accidents or injuries. Be sure to research the specific requirements in your state and obtain all necessary licenses, permits, and insurance before opening your doors.

Meet health and safety regulations for your facility, including child-proofing, sanitation, and fire safety.

In addition to obtaining licenses and insurance, you’ll need to ensure that your facility meets health and safety regulations. This includes child-proofing your facility to prevent accidents and injuries, ensuring that your facility is clean and sanitary, and meeting fire safety standards. You may need to install smoke detectors, fire extinguishers, and emergency lighting, and have regular inspections to ensure compliance with local regulations.

Overall, meeting legal requirements is an important aspect of starting a childcare business. By doing your research and ensuring that your business is compliant with all regulations and requirements, you can provide a safe and secure environment for the children in your care and build a successful and sustainable business.

Set Up Your Space

When setting up your childcare space, there are several factors to consider to ensure that it is safe, welcoming, and stimulating for children. Here are some steps to take:

Determine the space requirements for your childcare services.

Your state licensing agency may have specific requirements for the amount of space needed per child, the number of rooms required, and the need for an outdoor play area. Be sure to research these requirements and ensure that your space meets them.

Create a safe, welcoming, and stimulating environment for children.

When designing your space, consider the needs of the children you will be caring for. Make sure that the space is safe and free of hazards, such as sharp corners, exposed outlets, or loose cords. Create a welcoming environment by using warm, inviting colors, comfortable seating, and age-appropriate decorations. Provide stimulating activities and materials, such as books, toys, and educational materials, to encourage learning and development.

Purchase necessary equipment and supplies.

To provide quality care for children, you’ll need to purchase the necessary equipment and supplies, such as toys, books, furniture, and educational materials. When selecting these items, consider the age of the children you will be caring for and their interests. Look for high-quality, durable items that will withstand frequent use.

Consider the layout of your space.

Think about how you can arrange the space to encourage learning and development. For example, you might create a reading area with comfortable chairs and a variety of books, or a creative space with art supplies and a table for art projects. Make sure that there is enough room for children to move around freely and engage in different activities.

By taking the time to set up your childcare space properly, you can create a safe and welcoming environment that promotes learning and development for the children in your care.

Hire and Train Staff

Hiring and training qualified staff is essential to the success of your childcare business. Here are some steps to take:

Determine the number of staff needed based on state regulations.

Each state has its own regulations regarding the ratio of children to adults required in a childcare setting. Be sure to research these regulations and determine how many staff members you will need to hire based on the number of children you plan to care for.

• Queensland: https://earlychildhood.qld.gov.au/legislation-and-guidelines/staffing-requirements-and-leadership/qualifications-and-training

Develop job descriptions and conduct interviews.

Create job descriptions for the positions you need to fill, including required qualifications and responsibilities. Once you have received applications, conduct interviews to evaluate candidates and determine if they are a good fit for your business. Look for candidates who have experience working with children, are knowledgeable about child development, and are committed to providing quality care.

Train staff on health and safety regulations, child development, behavior management, and other relevant topics.

Once you have hired staff, it’s important to provide them with thorough training on topics such as health and safety regulations, child development, behavior management, and other relevant topics. This training should cover the policies and procedures of your business, as well as any state regulations that apply. Provide ongoing training and professional development opportunities to ensure that your staff is up-to-date on best practices and industry standards.

Foster a positive work environment.

Creating a positive work environment is key to retaining staff and providing quality care to children. Foster open communication and a team-oriented culture. Listen to staff feedback and ideas, and provide opportunities for staff to be involved in decision-making processes. Encourage staff to develop positive relationships with the children and their families, and recognize and reward staff for their hard work and dedication.

By hiring and training qualified staff, you can ensure that your childcare business provides high-quality care to children and their families.

Develop Policies and Procedures

Developing clear and comprehensive policies and procedures is crucial to the smooth operation of your childcare business. Here are some steps to take:

Develop policies and procedures for handling emergencies, communication with parents, discipline, and other important areas.

Creating policies and procedures for handling emergencies, communication with parents, discipline, and other important areas will help ensure that everyone is on the same page and knows what to expect. Consider the specific needs of your business and the families you serve when creating these policies and procedures. Be sure to review and update them regularly as needed.

Create contracts and enrollment forms for parents to sign.

Contracts and enrollment forms are important documents that outline the expectations and responsibilities of both the childcare provider and the parents. They should include details such as hours of operation, fees, payment terms, policies on absences and vacations, and any other relevant information. Make sure that parents understand and agree to these terms before enrolling their child in your program.

Communicate policies and procedures to parents.

Once you have developed your policies and procedures, be sure to communicate them clearly to parents. This can be done through parent handbooks, newsletters, or other forms of communication. Make sure that parents understand and agree to these policies before enrolling their child in your program.

Train staff on policies and procedures.

It’s important to ensure that all staff members are familiar with your policies and procedures and know how to implement them. Train staff on these policies and procedures during their initial training and provide ongoing training as needed. Encourage staff to ask questions and provide feedback to help ensure that everyone is on the same page.

By developing clear and comprehensive policies and procedures, you can help ensure the smooth operation of your childcare business and provide a positive experience for both the children in your care and their families.

Advertise and Market Your Services

Once you have established your childcare business, it is important to advertise and market your services to attract new clients. Here are some steps you can take:

Develop a marketing plan that includes advertising through social media, print media, and word-of-mouth referrals.

A marketing plan will help you to identify your target audience and determine the most effective ways to reach them. Consider advertising through social media platforms such as Facebook, Twitter, and Instagram, as well as print media such as local newspapers and parenting magazines. Word-of-mouth referrals can also be a powerful tool, so encourage your existing clients to spread the word about your services.

Offer promotional discounts or free trial periods to attract new clients.

Promotional discounts or free trial periods can be a great way to attract new clients and encourage them to try out your services. Consider offering a discount on the first week or month of care, or a free trial period of one or two days.

Attend community events to meet potential clients and promote your services.

Community events such as fairs, festivals, and parenting seminars can be a great way to meet potential clients and promote your services. Set up a booth or table and provide information about your childcare services, along with promotional materials such as brochures and business cards.

Develop a referral program to incentivise current clients to refer new clients.

Referral programs can be a powerful way to encourage current clients to refer new clients to your business. Consider offering a discount or other incentive to clients who refer new business to you.

By advertising and marketing your childcare services effectively, you can attract new clients and build a thriving business. Remember to always provide quality care and excellent customer service to keep your clients happy and satisfied.

Open Your Doors

After completing all the necessary steps to start your childcare business, it’s time to open your doors to families and begin providing care for children. Here are some steps you can take:

Conduct a soft opening to allow time for staff to get comfortable with their roles and for children to adjust to the new environment.

A soft opening allows you to test your operations and services in a controlled environment before officially opening your doors to the public. During this time, you can invite a small group of children and their families to use your services and provide feedback on their experience.

Evaluate the effectiveness of your policies and procedures and make necessary changes.

After conducting a soft opening, evaluate the effectiveness of your policies and procedures. Identify areas where improvements can be made and make necessary changes to ensure the quality of your services.

Continuously monitor and evaluate the quality of your services and make adjustments as needed.

As your business grows and evolves, it’s important to continuously monitor and evaluate the quality of your services. Solicit feedback from families and staff and use that feedback to make improvements and adjustments to your services.

By conducting a soft opening, evaluating the effectiveness of your policies and procedures, and continuously monitoring the quality of your services, you can ensure that your childcare business is providing the best possible care for children and meeting the needs of families in your community.

Costs Associated in Starting a Childcare Business

Starting a childcare business requires a significant financial investment. Before you begin, it’s important to consider the costs associated with starting and running a childcare business.

Here are some of the expenses you can expect:

Licenses and permits

To legally operate a childcare business, you will need to obtain the necessary licenses and permits. The cost of these can vary depending on your location and the type of childcare business you plan to operate.

Facility costs

The cost of renting or purchasing a facility will likely be one of your biggest expenses. This will depend on the size of your facility, location, and local real estate prices.

Equipment and supplies

You will need to purchase a variety of equipment and supplies to provide care for children. This can include furniture, toys, educational materials, and other items. Depending on the size of your facility and the number of children you plan to care for, this expense can be significant.

Staffing costs

Your staffing costs will depend on the number of staff you need to hire, their salaries and benefits, and the regulations in your area regarding child-to-staff ratios.

Marketing and advertising

To attract new clients, you will need to invest in marketing and advertising. This can include print materials, online ads, and promotions.

You will need to purchase liability insurance to protect your business in case of accidents or injuries.

Administrative expenses

You will need to budget for administrative expenses such as office supplies, software, and accounting services.

In total, the costs associated with starting a childcare business can range from tens of thousands to hundreds of thousands of dollars, depending on the size and scope of your business. It’s important to carefully consider these expenses and develop a detailed budget before beginning the process of starting your business. Additionally, it’s important to have a solid financial plan in place to ensure that your business is sustainable and profitable in the long run.

Useful Stats about Childcare Growth in Australia

Childcare usage: According to the Australian Bureau of Statistics, in June 2020, around 1.2 million children aged 0-12 years were enrolled in a formal child care program, with around 815,000 children attending child care services in the week before the survey.

Cost of childcare: The average hourly fee for long day care in Australia in 2020 was $9.40, with families paying an average of $82 per day for full-time care. The cost of care can vary depending on location, type of care, and other factors.

Childcare workforce: As of 2020, the childcare workforce in Australia includes around 195,000 people, with the majority (around 93%) being female. The average age of a childcare worker is 38 years, and around 73% of workers have a Certificate III or higher qualification in children’s services.

Childcare availability: In 2021, the availability of childcare places in Australia varies depending on location and demand. However, there has been an increase in the number of childcare places available over the years, with the total number of childcare services increasing from around 11,500 in 2010 to over 16,000 in 2020.

COVID-19 impact: The COVID-19 pandemic had a significant impact on the childcare sector in Australia in 2020, with many services temporarily closing or reducing their hours. In response, the Australian Government introduced various support measures, such as the Early Childhood Education and Care Relief Package, to help families and services cope with the disruption.

These are just a few of the statistics related to childcare in Australia up until 2021. The landscape of childcare in Australia is constantly changing, so it’s important to stay up-to-date with the latest trends and developments in the industry.

Childcare business related articles

How to Start a Childcare Business with No Money

Starting a childcare business can be a fulfilling career choice for those who love children and want to make a positive impact on their development.

Are Childcare Centers Profitable?

Starting a childcare center can be a profitable business if run effectively. According to a report published by the Australian Government Department of Education, Skills

How to Promote & Market Your Childcare Business

Starting a childcare business can be a rewarding and fulfilling endeavor. However, attracting and retaining clients can be a challenge. To succeed in the highly

How to Hire Childcare Workers

As a parent or guardian, hiring childcare workers can be a daunting task. Whether you are looking for a nanny, babysitter, or your startup childcare

Childcare Safety Regulations in Australia

Childcare is an essential service that provides families with the necessary support to balance work and family responsibilities. In Australia, the government has developed a

Other Start Your Own Business guides

Music label, gym business, honey bee hive, dog grooming business, photography business, mortgage brokerage, microbrewery, jewellery business, bbq rub business, ev charging station, landscaping business.

How to start a childcare business

According to IBISWorld, the household services sector represents a new frontier with regard to business opportunities, as time-poor, cashed-up consumers increasingly outsource household duties.

“Everything we traditionally did for ourselves – including cleaning, childcare and even beauty – will be increasingly outsourced [in the future],” IBISWorld says.

Parents in particular will find it difficult to juggle their many responsibilities, leading to an increased demand for quality childcare.

What is it and who is it suited to?

Childcare, or daycare, refers to the care of a child during the day by a person other than the child’s legal guardians. It is typically an ongoing service, particularly for working parents.

The service is provided in a specialised childcare facility or in the carer’s home, and can take on a more formal structure with education, child development, discipline and even preschool education.

You need to be extremely patient, energetic and enthusiastic to work in this industry. If you think you can cope with the tears and tantrums, you’re in the right place.

Rules and regulations

In order to work with children, some states require a Police Check while others require a Working with Children Check. You may also face criminal history screening or safety screening.

With regard to your business premises, ensure everything is safe and secure; any furniture and equipment must be well maintained and conform to safety standards.

You should also seek advice from your local council to ensure you comply with legal obligations relating to health and safety.

Research and competition

It’s important to note that by 2014, every childcare worker in Australia must have, at a minimum, a Certificate III in Children’s Services.

Also, half the staff must have at least a TAFE childcare diploma, and every single childcare centre must have a degree-qualified teacher onsite all day. So if you don’t have the right experience, make sure you appoint someone who does.

You then need to check out the competition, including other childcare centres, playgroups, mother’s groups and nannies.

You need to determine whether there is enough demand for another childcare service. Use your local library, council and the internet to research your area in order to gain a better understanding of the demographic.

You should also think about how many children you want to look after in your centre as this will affect the venue, staff numbers and pricing.

If this is your first venture, don’t try and compete with the chains that offer places for over 100 children. But to be viable, you will probably need to have at least 25 to 30 places.

Once you have looked at the competition and defined your ideal customer, you should start to get a feel for what to charge. Prices will vary depending on the demographic you’re catering to but also how old the children are. For example, it costs more to look after babies than toddlers.

Costs and earnings

You will obviously need to source suitable business premises. If you decide to rent, make sure you have a reasonable lease on the property. It will be very hard – and expensive – to move after only two or three years in a property.

If you are making structural alterations to a building that already exists, you will need to factor in the cost.

The building might also require some work to bring it up to fire safety standards. For example, ensuring you could evacuate all the children in an emergency.

You should also ensure that there is adequate security such as extra locks on doors and windows to keep strangers out and children in.

You should also budget for toys and equipment. And don’t forget that with 25 children playing all day long, the equipment will wear out more quickly than normal.

Setting aside a regular amount for replacement should help when the bills start rolling in. You can also save by buying secondhand, particularly in the beginning, providing everything is thoroughly disinfected before use.

Once you have established the venue and a reputation in the area, you should find that the places fill up fairly quickly.

With more parents either returning to work or ramping up their work commitments, good quality childcare is in short supply in many areas, which means parents are prepared to pay high prices.

To put a child in care for an entire day can cost between $55 and $125.

But even when your centre is full, you are likely to find that much of your fees from the children go on fixed costs. Staff and premises are likely to be the biggest costs but food, nappies and equipment all add up.

Your costs will inevitably rise and, when you try to put your prices up, you are likely to hear about it from parents. You should also remember that many of the costs are fixed, so expansion is the only way to grow the business.

Based on the competitive nature of the business, anything above breaking even could be considered a success.

Remember also that because of the relatively high start-up costs and low profit margins, it could take several years before you are close to making back what you originally invested.

An average day

According to the Aussie Childcare Network, your duties and responsibilities as a childcare worker could include the following:

• Work with staff members to manage the day-to-day running of the centre.
• Plan, supervise and engage in children’s activities and mealtimes.
• Maintain a clean and healthy environment for all children; allocate daily cleaning duties or outsource a cleaner.
• Communicate with parents including informing them of their child’s progress, and facilitate meetings with both parents and staff.
• Perform administrative duties, namely account-keeping.

Useful contacts

National Childcare Accreditation Council

1300 136 554

[email protected]

Family Day Care Australia

1800 621 218

[email protected]

Aussie Childcare Network

www.aussiechildcarenetwork.com

Australian Government Small Business Support Line

1800 777 275

ABOUT THE AUTHOR

SmartCompany is committed to hosting lively discussions. Help us keep the conversation useful, interesting and welcoming. We aim to publish comments quickly in the interest of promoting robust conversation, but we’re a small team and we deploy filters to protect against legal risk. Occasionally your comment may be held up while it is being reviewed, but we’re working as fast as we can to keep the conversation rolling.

The SmartCompany  comment section is members-only content. Please subscribe to leave a comment.

The SmartCompany comment section is members-only content. Please login to leave a comment.

Ethical cosmetics brand Kester Black quietly emerges from voluntary administration

Ask Us Anything: Connecting you to expert mentors

DigiDirect owner buys Booktopia from administration — but don’t expect an Australian Amazon

Google rep denies using ai for live senate responses, dodges market dominance claims, five anz startups that raised $38.5 million this week, paris olympics a reminder to also invest in founder mental health and wellbeing.

Send to a friend

Just fill out the fields below and we'll send your friend a link to this article along with a message from you.

Your details

Your friend's details.

How much does it cost to open a childcare centre?

Childcare centres are big business in Australia, with our growing population fuelling huge and ever-increasing demand for new centres in every state and capital city.

So for those who want to get in on the action, what does it cost to open a childcare centre?

Experts estimate the average cost to build and open a childcare centre ranges between $700,000 to $800,000, and can be as high as $1 million – and that’s not including buying the land to build it on.

Here’s a starter guide to how much money you’ll need to get your childcare centre off the ground.

When purchasing land in order to build your childcare centre, the location of your proposed property will greatly impact what your final costs are.

If you’re opening a childcare facility in a capital city, it’s highly likely that the land will be the single biggest expense in the entire process.

Burgess Rawson childcare specialist Adam Thomas says a development site with zoning to allow a childcare centre will generally range “between $1 million and $4 million” on the commercial property market.

Location is a huge factor in the cost of opening a childcare centre.

Construction costs

The cost of building a childcare centre can vary greatly based on its size and scope.

But Thomas says constructing the building itself generally costs around $600,000 to $650,000 for an average-sized property.

And while converting or retro-fitting an existing commercial property as a childcare centre might seem like a cheaper way to do it, Thomas says that’s not always the case

“It’s almost more expensive to retrofit a building for childcare use – retrofitting isn’t really cost saving,” he says.

“If you’ve got a complementary use, like an office building where you’ve effectively just got your four walls and plenty of car parking, then you’re probably OK. But it’s very hard to retrofit a childcare centre from a medical centre or aged care, because it just doesn’t work with the outdoor floor space ratio that you require.”

Operational equipment

With dozens or even hundreds of children to manage, childcare centres are major logistical operations that require significant equipment to keep them running.

With food preparation equipment, playgrounds, other equipment and even technology playing an increasing role, there are major costs involved in the fitout.

“You can spend as much as $100,000 to $150,000 on operational equipment,” Thomas says.

Leasing a childcare centre doesn’t require the same initial financial outlay as building one.

Rental shortfall

Childcare developers and operators borrow money all the time in order to build childcare centres.

But if construction times blow out, every week that the property remains unopened represents a rental or income shortfall that needs to be factored into your cost.

With some centres leased for between $5000 and $10,000 per week, that lack of income can start to add up.

The cost of leasing

Of course, you can open a childcare centre without building one.

Leasing a property as a childcare centre won’t require anywhere near the same financial outlay.

For a smaller childcare centre with around 80 places in a regional area, operators can expect to pay an average of around $200,000 in annual rent.

At the upper end of the regional market, rents can reach upwards of $300,000, while for larger metropolitan childcare centres, some operators are paying more than $500,000 in annual rental costs alone.

Buying & Selling

Private investors power large format retail deals

5 expert tips to kickstart a commercial property portfolio

Austwine Viticulture to sell Rosedale Vineyard

Child Care Provider Business Plan

When applying for Child Care Subsidy (CCS) for a new service, the Australian Government has introduced a new requirement – applicants must supply a Child Care Provider Governance business plan. In short, to be considered fit and proper, providers must satisfy the Secretary that their organisation has sufficient governance to protect the integrity of public funds they will administer and ensure ongoing compliance with the family assistance law. As managed clients of Early Learning Management, we take the stress out of this process and work with you to develop the organisation’s business plan that demonstrates the support of and compliance with the CCS legislative obligations. Early Learning Management will provide you with a professionally written and formatted document that forms part of your Policies and Procedures.

Additionally, our QLD clients have had to create specific emails for both their Nominated Supervisors and their Early Childhood Teachers due to an update of the Queensland Curriculum and Assessment Authority requirements. These emails are to be used to contact the Queensland Curriculum and Assessment Authority only and will need to be updated if there are any staff changes. We administer the process and audit regularly to ensure our clients are compliant.

Recent Posts

• The Service Centre
• Childcare Construction, Building & Operational Services
• Childcare Management
• Childcare Policy Management
• Childcare Advisory Services
• Childcare Business Systems Advisory
• Childcare Financial Modelling
• Childcare Budget Support
• Childcare Bookkeeping Services
• Childcare Payroll Services
• Rescue Bookkeeping Services

Opening a childcare service

Information about how to start a childcare centre or family day care in Victoria.

On this page

Childcare services are regulated, types of early childhood services, things to consider before you start, first steps – provider approval, being a suitable person to operate a childcare service, next steps - operating a service, regulatory fees, more information, child care funding.

Childcare services (early childhood services) are regulated by each state and territory in Australia:

• to protect the safety and wellbeing of children who attend the services, and
• to ensure they have access to quality learning experiences.

Before opening a service, providers and their services must be approved by the Regulatory Authority. It is illegal to operate a child care service without this approval.

In Victoria the Department of Education is the Regulatory Authority for early childhood services.

The following childcare services are regulated in Victoria:

• long day care services (LDC)
• preschools (kindergartens)
• family day care services (FDC) (where care is provided in the carer’s own home or an approved venue)
• outside school hours care (OSHC) services
• school holiday care programs
• limited hours services (where children attend for a short period of time)
• occasional care services.

Some services and activities for young children do not need to be approved by the Regulatory Authority to operate.

Read more about the different types of early childhood services, how they're regulated, which activities don't need to be approved or regulated, and the role of the Regulatory Authority .

Contact us to confirm if your proposed service or activity will require approval:

• 1300 307 415 between 9am to 5pm (Monday to Friday)
• email [email protected] .

Operating a service is a significant commitment.

As the approved provider you have the legal responsibility to ensure that the service and each educator engaged complies with the relevant laws and regulations .

Before you open a service, you need to consider:

• the financial investment required to establish a service
• how many staff you will need to offer a quality service and what qualifications they need
• how you will organise and govern your operations
• what role you will have in administering Australian government childcare funding ( Child Care Subsidy )
• and many other issues.

You will also need to consider whether the proposed location of your service is suitable and meets all the regulatory requirements for the service premises and operations.

Services must have natural light, ventilation, access to genuine outdoor space and a natural environment, as well as meeting detailed safety requirements. These requirements are important considerations if you are intending to retrofit or re-purpose an existing building.

To start a childcare service in Victoria you must first apply to the Regulatory Authority:

• initially, to apply to be an approved provider
• then to apply for approval to operate a service .

You can apply as:

• an individual
• an incorporated association
• partenership.

To apply for a new provider approval you must ordinarily reside in Victoria or have a principal office in Victoria if the applicant is not an individual.

You should get your own legal advice on the implications of the entity type.

To become an approved provider of an early childhood service, you must satisfy the Regulatory Authority that you are a ‘fit and proper person’, that is:

• you are a person* of good character and
• you have the capability to operate a service.

*If the applicant is a company or other entity this applies to all individual persons who comprise that entity, i.e. the directors of a company, the members of the executive committee of an incorporated association, and the partners in a partnership.

To assess if you are ‘fit and proper’ the Regulatory Authority will:

• conduct background checks - including your criminal history and record of compliance with relevant laws as well as whether you hold a Working With Children Check.
• the laws that regulate early childhood services
• the Victorian Child Safe Standards.
• check your past management experience and ability to operate a service.
• check your financial capability.
• it may also check you do not have medical condition that makes you incapable of being responsible for providing a service.

The Regulatory Authority will also assess whether other people in your organisation are ‘fit and proper’.

This applies to any other people:

• who will have responsibility for managing the delivery of the service(s) or
• who have significant influence over the activities or delivery of the service.

There are no limits to what the Regulatory Authority may assess to consider if you are a fit and proper person to be involved with providing a service.

After you become an approved provider, you may apply to the Regulatory Authority for approval to operate a service.

Next you need to decide what type of service you will operate:

• Services that provide education and care to children on a regular basis must meet the requirements and standards specified in the National Quality Framework (NQF).
• Similar requirements apply to occasional care and limited hours services that provide care to children on an irregular or ad hoc basis under the Children’s Services Act .

The National Quality Standard (NQS) applies to services that provide regular education and care to children. It sets a high national quality benchmark for early childhood education and care services in Australia. The NQS has 7 quality areas that are important for ensuring quality outcomes for children.

Services regulated under the NQF are:

• assessed and rated by their Regulatory Authority against the NQS, and
• given a rating for each of the 7 quality areas and an overall rating based on these results.

While they are a small part of the overall cost of running a childcare service, you should also consider the regulatory fees that will apply.

Fees are payable under both regulatory schemes that operate in Victoria and fall into two categories:

• the annual service fee, which applies to all approved services and is payable by 1 July each year
• transaction fees, which are individual fees that apply to specific applications and are payable when the application is made, for example, an application for provider approval.

All fees are indexed annually. Some fees vary according to the size of the approved service.

For the current fees under the NQF (for long day care services, family day care services and outside school hours care services), refer to ACECQA indexed fees .

For the current fees for occasional care and limited hours services, refer to: Children’s services regulated under State law .

• eLearning modules for approved providers
• Education and Care Services National Law Act 2010
• Education and Care Services National Regulations
• Children’s Services Act 1996
• Children’s Services Regulations 2020 .

The Australian Government operates the Child Care Subsidy (CCS) scheme . For more information please read the Child Care Provider Handbook .

For more information and assistance about starting a service, contact our Enquiries and Support Team on:

Updated 5 January 2024

• 0424 370 025

7 reasons childcare centres are outperforming other investments, and smart buyers know it

• June 18, 2021

We think of the best-performing assets as property and shares. But what if there was an investment that combined both, buoyed by a robust industry, growing long-term demand, and powerful government backing?

Here’s 7 reasons daycare centres are showing up as a top profitable performer, and why you should consider it, too – especially in today’s changing culture.

Table of Contents

#1: More double-income families than ever before

The need for childcare is growing in line with current family trends and population growth.

The Australian Bureau of Statistics estimates a 9.9% increase in the number of children aged under 3 by 2024, making it the fastest-growing proportion of the population.

Additionally, a cultural shift in Australia has seen more women returning the workforce than ever. The growing trend of double-income families has driven demand for early childcare and outside school hours care, with over 1.3million children accessing government assistance to attend daycare services in 2021.

#2: Massive government subsidies

Accessible childcare is a priority for the federal government, as a means to boosting the national economy by allowing more people into the workforce. They offer a range of grants and incentives to help more families use childcare services.

The Child Care Subsidy (CCS) is a fee assistance incentive offered to eligible families sending their children to daycare and outside school hours care. It covers up to 85% of the fees, assessed by income.

Recently, the federal government announced a new CCS reform for 2022 that increases the subsidy for siblings in care, with no income cap. These subsidies allow more low and middle income families to access childcare.

#3: Clear growth in the amount of children in daycare

With more families seeking two incomes and the affordability of childcare with government subsidies, the numbers of enrolments continue to increase.

Although the Covid-19 lockdowns impacted enrolment numbers during 2020, the figures are well and truly bouncing back, with 44% of Australian children aged between 0 – 5 enrolled in child care services. According to the ABS, 81% of children aged 4 attend pre-school, even with skewed numbers because of the pandemic.

In response to the growing demand for quality childcare, Early Childhood educator jobs are expected to “experience the largest relative growth in the sector, growing by 22% or reaching 9,000 jobs by 2023”, according to the Australian Industry and Skills Committee Report ,.

Management roles are projected to increase by 20%, and childcare industry positions as a whole will increase by 27,000 jobs to accommodate the new centres needed to meet demand.

#4: Large land sites in prime locations

Childcare centres occupy sizeable plots, which in itself is a growing asset. As a centre owner, you have the choice of buying the land and property (a freehold investment) or the child care business itself, or both (called “freehold going concern”).

Owning the land gives greater power to your asset and allows for profitable rezoning from commercial to residential down the track, as most centres are situated in neighbourhood areas.

As urban sprawl increases, more childcare centres will be needed to service the families seeking affordable properties in planned communities.

#5: Long-term, stable leases from invested tenants

As a freehold owner, you can rent out the childcare property as a landlord. The lease terms are typically 10 years plus options, since frequent relocations are expensive and can wreak havoc on enrolment numbers.

Long, stable lease terms are a win-win for both tenant and landlord. Tenants can confidently set up a long-term, durable business, and landlords experience fewer changes of hands, which means maximum rental income with no vacancy time.

Properties are immaculately maintained, too. The tenants in your property must uphold high standards of cleanliness and upkeep, to meet stringent industry regulations on quality of care.

Not to mention that the main client – the parents – are placing greater value on excellence, cleanliness and education, which drives competition and can be a deciding factor on a parent’s choice of centre. As a result, the property itself stays well preserved and maintained.

#6: More profitable – faster – than many other forms of investment

In terms of assets, child care centres are historically one of the most profitable, with many benefits that other investment opportunities lack. For example:

• As a freehold property owner, you’ll own a substantial block in a premier location, which is a lucrative land investment
• Due to childcare standards, your buildings and land are kept well maintained by the business operator, which means more profit down the track at sale time – which can’t always be said of tenants in a rental property or other commercial property
• The sustainable nature of the childcare industry along with long lease terms allows for steady annual rental increases, without the fluctuations you might otherwise experience with a commercial property to cater for vacancies, different tenants, and changes in the market
• Rental income is stable, since leases are typically more than a decade, with tenants who invest heavily into their premises
• The attractiveness of childcare property investments is that a sustainable secure childcare tenant provides compounding annual rental increases for the owner over the length of the lease.
• Childcare property returns tend to be  stronger and properties rarely vacant compared to other classes of commercial property assets, which over the same tenancy period may include long vacancies and fluctuations in rent?
• Rental yields are impressive compared to an investment property, with the average national yield sitting consistently between 5-6% in metro areas
• Market volatility is far less than other assets such as shares or cryptocurrency
• Massive depreciation benefits across the life of the property, including blanket recovery of landlord expenses, which can extend into the millions for larger centres

#7: Unaffected by technology or off-shore economies

Child care is a hands-on need for families that can’t be replaced by technology, and can’t be outsourced to off-shore companies. It’s a brick-and-mortar business with high standards, in an industry that has to grow to meet the needs of a changing population.

Childcare is an essential service with strength and stability.

The childcare industry is one that many may not have considered as part of an investment strategy.

But, care for children and families is an invaluable service that has become enmeshed with our new standard of living. It’s a stable sector with increasing job opportunities to support the needs of a growing population.

With the growing trend of women returning to work, increased government support, and the potential return on investment, childcare centres are showing up as one of the strongest passive-income assets in an investment portfolio today.

Essential teaching aids for 2024: must-haves for early childcare centres

2024 changes to Learning Frameworks signals a better year for ECEC

LINCOLN BRIDGE

• [email protected]

ANDREW URQUHART

• 0408 439 762
• [email protected]

Twitter feed is not available at the moment.

Childcare 4 Sale

• 07 5562 2744
• 8am - 5pm, Mon to Sat

• Skip to content
• Skip to navigation

About child care and early childhood education in Australia

There are 5 main options for child care and early education in Australia:

• home-based care
• centre-based care
• family day care
• business-related creches
• outside school hours care.

Child care is also known as early childhood education and care . It’s mainly designed for children aged up to 5 years, but it also includes care for primary school-age children in outside school hours care.

All children living in Australia have the right to use child care services. Children can’t be excluded from child care on the basis of their cultural background, citizenship, family circumstances or ability.

Home-based care

Home-based care is when a friend, relative, babysitter or nanny cares for your child in your own home .

You might choose to organise home-based child care because other child care options aren’t available when you need them or they don’t meet your needs.

Many families use informal home-based care. For example, this is when grandparents or other relatives look after children , either regularly or occasionally.

Other families make more formal arrangements. For example, they use babysitters or nannies .

Babysitters are handy for occasional care – for example, when you’re going out for an appointment or social event. For longer and more regular hours of care, you might choose to employ a nanny . Nannies are generally more experienced and better qualified than babysitters.

You might be able to use the Australian Government’s In Home Care program to help with the cost of home-based child care by an educator who meets minimum qualification requirements. You have to be working non-standard or variable hours, be geographically isolated, or have complex or challenging family needs to be eligible.

Centre-based day care: long day care and occasional care

Centre-based care includes long day care, occasional care, preschools and kindergartens.

Long day care at a child care centre suits many families who work regular weekdays.

Some child care centres offer occasional care for families who need someone to look after their children every now and then. This is a good option if you work irregular or unpredictable hours or you need to go to appointments or catch up on household tasks. You can express your interest in occasional care days and go on a waiting list for when other children are away.

Preschools or kindergartens operating from stand-alone centres offer education and care programs for children aged 3-5 years. Some preschools also offer occasional care days if other children are away.

Centre-based care:

• is reliable
• has qualified early childhood educators
• offers a learning and development program with structure and routine
• gives children opportunities to play and socialise with many other children.

Family day care

Family day care is when your child is looked after by an approved educator in the educator’s home .

Family day care:

• is a home-based environment
• offers a learning and development program and opportunities for children to play and socialise with other children
• might be a quieter environment, which some children prefer or need
• can be flexible – for example, if you just need care for part of the day
• might be less reliable than centre-based care – for example, you might have to find back-up care if your carer gets sick.

If you’re interested in family day care or centre-based child care, it’s a good idea to visit family day care homes or child care centres so you can get a feel for different services. Our child care checklist can help you work out whether a particular service is right for your family.

Business-related creches

Some businesses, like gyms or shopping centres , offer informal child care in creches. These businesses might charge a fee or build a fee into the overall cost of membership or the price of their products or services.

These creches can be convenient if you need care for a brief period . They’re a good way for children to play and socialise with other children. They can also prepare children for more formalised child care in the future.

These creches don’t have to meet the same requirements as centre-based care or family day care – for example, requirements for educator-child ratios or education quality. So they won’t help your child learn and develop in the same way as a quality early childhood education and care service .

Outside school hours care

Outside school hours care is centre-based child care for families who need care before or after school, on student-free days and during the school holidays. It’s only for primary school-age children.

Educators in centre-based child care services, family day care and outside school hours care must be qualified in early childhood education. They have the skills and training to support your child’s learning, which is a key part of the child care experience.

Which type of child care is right for your family?

When you’re trying to decide which type of child care is right for your family, you might want to consider the following questions:

• How many hours of child care do you need each week?
• What are the child care options in your area, and how much do they cost?
• Do you want your child educated and cared for at home or at a child care centre?
• Are you looking for child care that matches your family’s interests, lifestyle or values – for example, food choices, musical interests and so on?
• Do you want your child to experience different styles of learning and mix with children from a wide range of social and family backgrounds?
• Are you looking for child care that’s similar to or different from learning and care at home?
• What are the quality ratings of the options you’re interested in? You can check quality ratings of child care services at Starting Blocks .

You might be able to get Australian Government assistance to help with child care costs . You need to meet certain criteria to be eligible. For example, you must use an approved child care service.

Registering early for child care

When you’ve decided or even while you’re still deciding, it’s a good idea to register with any services that you’re interested in .

It’s OK to put your child on more than one waiting list. This is because you might not get all the days you need from one service alone, or a service might not have a vacancy when you need it.