daycare and preschool business plan

How to Write a Business Plan for Daycare and Preschool

• brightwheel
• Running a business

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

What do daycare investors want?

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

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

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

Most investors look for:

Industry background and experience

Financial performance and promise.

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

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

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

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

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

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

Writing a daycare business plan

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

Business description

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

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

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

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

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

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

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

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

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

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

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

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

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

Your business is ready!

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

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

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

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Daycare Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

Daycare Business Plan

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

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

How To Write a Daycare Business Plan & Example

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

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

Next Section: Executive Summary >

Daycare Business Plan FAQs

What is a daycare business plan.

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

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

What Are the Main Types of Daycare Businesses?

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

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

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

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

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

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

What are the Steps To Start a Daycare Business?

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

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

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

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

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

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

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

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

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

Learn more about how to start a successful daycare business:

• How to Start a Daycare Business

Where Can I Get a Daycare Business Plan Example PDF?

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

Daycare Business Plan Template & PDF Example

• August 27, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful daycare. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your daycare’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a daycare business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your daycare business concept into reality. Let’s dive in!

Our daycare business plan is thoughtfully developed to encompass all crucial aspects required for an in-depth strategic plan. It outlines our facility’s operations, marketing strategies, market dynamics, competitors, management team, and financial projections.

• Executive Summary : Offers an overview of your Daycare’s business concept, including the innovative learning environment, market analysis , management team, and financial strategy.
• Building & Location: Describes the Daycare’s modern, child-friendly design, its central location, and amenities such as indoor and outdoor play areas, sensory rooms, and nap zones.
• Pricing & Educators: Lists the services provided by your daycare, including full-time and part-time care options, the educator-to-child ratio, and pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the Daycare market.
• Key Trends: Highlights recent trends affecting the childcare sector, such as the increasing demand for early childhood education programs and technological integration.
• Key Competitors: Analyzes main competitors nearby and how your daycare differs from them, focusing on aspects like curriculum quality and additional services.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis tailored to the daycare business.
• Marketing Plan : Strategies for attracting and retaining customers, including branding, local advertising, online presence, and community involvement.
• Timeline : Key milestones and objectives from the initial setup through the first year of operation and beyond.
• Management: Information on who manages the daycare, detailing their roles, experience in early childhood education, and business management.
• Financial Plan: Projects the daycare’s 5-year financial performance, including revenue projections, profit and loss statements, cash flow analysis, and balance sheet, aiming for significant growth and profitability by the target year.

Daycare Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary serves as the gateway to your daycare business plan, providing a succinct overview of your daycare center and its offerings. It should highlight your market positioning, the variety of child care and educational services you provide, its location, size, and a sketch of daily operations.

This section should also delve into how your daycare will integrate into the local community, including an analysis of the number of direct competitors in the area, identifying who they are, along with your daycare’s distinctive features that set it apart from these competitors.

Moreover, you should incorporate details about the management and co-founding team, outlining their roles and contributions to the daycare’s success.

Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be included here to offer a clear vision of your daycare’s financial strategy.

Daycare Business Plan Executive Summary Example

Business Overview

In the  business overview  section of a daycare’s executive summary, it’s vital to present a comprehensive picture of the daycare’s operations.

This includes the facility’s location, size, amenities, the qualifications of the educator team, child capacity, and pricing structure. Key aspects to highlight are the features that contribute to a nurturing and educational environment, such as indoor and outdoor play areas, sensory rooms, and nap zones. The qualifications and number of educators are crucial for ensuring quality care and education.

This section should also outline the daycare’s capacity to accommodate children and the  pricing strategy , reflecting its commitment to providing accessible and high-quality childcare services.

Example: Little Explorers Daycare, located in [Location/City/Neighborhood], spans 5,000 sq. ft. and offers a stimulating learning environment with dedicated play and learning zones. The daycare boasts a team of 5 certified educators, ensuring a low child-to-educator ratio. Licensed for up to 60 children, the facility provides flexible childcare options with competitive rates, catering to the needs of the community.

Market Overview

The  market analysis  section should include an assessment of the childcare industry’s size, growth trends, average costs, and key  market trends .

This part of the executive summary is crucial for understanding the industry’s dynamics and the daycare’s position within it. Trends such as the rising demand for early childhood education programs and employer-sponsored daycare benefits are important to highlight, as they indicate evolving consumer preferences and potential growth areas. An analysis of the  competitive landscape  is also vital for identifying the daycare’s unique selling points and potential areas for differentiation.

Example: The US childcare market, valued at $60.4 billion, is characterized by its essential demand for quality services. With approximately 600,000 daycare centers nationwide, Little Explorers Daycare competes in a robust market. Its focus on specialized curriculums and child development tracking sets it apart in an industry where differentiation is often based on curriculum quality and additional services.

Management Team

This section introduces the key figures leading the daycare, highlighting their educational background and experience.

The management team’s expertise in early childhood education and business management is critical for the daycare’s operational success and strategic direction. This part of the summary should instill confidence in the team’s ability to provide high-quality childcare and effectively manage the business.

Example: The Director, a co-founder with a Master’s in Early Childhood Education and 10 years of teaching experience, oversees the educational program. The Business Manager, also a co-founder with an MBA and expertise in entrepreneurship, handles the operational and financial aspects of the daycare.

Financial Plan

The financial plan overview provides insight into the daycare’s financial goals and projections.

This section outlines the revenue targets and profit margins, reflecting the daycare’s financial health and potential for profitability. It includes specifics such as aiming for $1.9 million in yearly revenue and an 18% profit margin by 2028.

This section should demonstrate how the daycare plans to achieve these financial objectives through strategic enrollment growth, operational efficiency, and quality service provision.

Example: Little Explorers Daycare aims to achieve $1.9 million in annual revenue with an 18%  EBITDA  margin by 2028. This goal will be supported by expanding enrollment, maintaining high standards of childcare, and implementing efficient business management practices to optimize costs and enhance revenue.

For a Daycare, the Business Overview section can be effectively divided into 2 main components:

Building & Location

Briefly describe the daycare’s facility, focusing on its safety, child-friendly design, and the stimulating environment that it offers to children.

Mention the daycare’s location, emphasizing its accessibility and the convenience it brings to parents, such as proximity to residential areas or ease of drop-off and pick-up. Explain why this location is beneficial in drawing your target clientele, particularly parents who prioritize convenience and safety in their choice of daycare.

Pricing & Educators

Detail the range of childcare and educational services provided, from basic care for infants to preschool programs and after-school care for older children. Outline your pricing strategy , ensuring it aligns with the quality of care and education provided and is competitive within your market segment.

Highlight any special programs, discounts for siblings, or membership deals that offer additional value to families, fostering long-term relationships and loyalty among your clientele. Discuss the qualifications, experience, and approach of your educators and staff, underlining their role in creating a nurturing and educational environment for the children.

Industry size & growth

In the Market Overview of your daycare business plan, start by examining the size of the childcare industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying opportunities for expansion, particularly in regions with increasing numbers of working parents or areas underserved by quality daycare facilities.

Key market trends

Proceed to discuss recent market trends , such as the growing demand for early childhood education, the importance of developmental programs, and the preference for daycares that offer flexible hours and holistic child development approaches.

For example, highlight the need for services that cater to different developmental stages and incorporate educational curriculums, alongside the rising popularity of daycares that focus on sustainability and health, such as offering organic meals or eco-friendly play areas.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your daycare in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your daycare’s unique selling points, essential for differentiating your business in a competitive market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying and Categorizing Competitors

Initiate the competitive analysis by cataloging various local childcare services. Beyond traditional daycare centers, include in-home childcare providers, preschools, Montessori schools, and specialized educational programs focused on early childhood development. Also, consider alternative childcare solutions like nanny services or after-school programs, as they might indirectly compete for parental trust and enrollment.

Leverage digital platforms and online tools to map out the geographical presence of these competitors. Extract insights from customer reviews available on platforms such as Google Reviews, Yelp, or dedicated childcare review websites. Positive reviews highlighting a competitor’s dedicated staff or emphasis on a nurturing environment signal  strengths  in their service offerings.

Daycare Competitors’ Strategies

A meticulous examination of various aspects of competitor operations is imperative:

• Educational Philosophy and Curriculum:  Evaluate the educational approach and curriculum structure. A daycare center with an emphasis on bilingual education or a holistic developmental approach might attract parents seeking specialized learning opportunities for their children.
• Staffing and Qualifications:  Assess the qualifications and certifications of daycare staff. Highlighting a team of experienced and well-trained early childhood educators can be a significant competitive advantage in assuring parents of quality care and education for their children.
• Pricing Models and Services:  Conduct a comparative analysis of pricing models and the spectrum of services offered. Does a competitor provide additional services such as transportation, meal plans, or extracurricular activities as part of their package?
• Marketing and Outreach Strategies:  Analyze the effectiveness of competitors’  marketing strategies . Evaluate their online presence, community engagement initiatives, or collaborations with local events aimed at engaging parents and attracting prospective clients.
• Facilities and Amenities:  Consider the facilities and amenities offered. A daycare center with secure outdoor play areas, advanced security systems, or partnerships with extracurricular activity providers may stand out from competitors.

What’s Your Daycare’s Unique Value Proposition?

Reflect profoundly on what sets your daycare apart. This could be innovative teaching methodologies, a focus on environmental sustainability, or specialized programs catering to children with diverse needs.

Gather insights from parent feedback, industry trends, and  market research  to identify gaps in the market. For example, if there’s an emerging demand for daycares focused on mindfulness and emotional intelligence, consider integrating such practices into your curriculum.

Tailor your daycare’s services and facilities to match the demographics and preferences of your location. An urban daycare might prioritize flexible schedules and proximity to workplaces, whereas a suburban daycare might emphasize larger outdoor spaces and nature-based learning experiences.

First, conduct a SWOT analysis for the daycare , identifying Strengths (such as a qualified and caring staff, comprehensive educational programs), Weaknesses (like limited space or high operating costs ), Opportunities (for instance, a growing demand for quality early childhood education), and Threats (such as changes in government regulations or competition from new daycares).

Marketing Plan

Next, formulate a marketing strategy that details how to attract and retain families through targeted outreach, referral incentives, a strong online presence, and participation in community events.

Marketing Channels

Employ a mix of marketing channels to reach potential parents and engage effectively with the community.

Digital Marketing

• Social Media Presence:  Leveraging various platforms like Facebook, Instagram, LinkedIn, and Twitter allows you to share engaging content showcasing daily activities, educational insights, testimonials from satisfied parents, and detailed information about your programs and events.
• Website and SEO:  Maintaining an informative, user-friendly website that provides comprehensive details about your daycare’s philosophy, curriculum, staff qualifications, enrollment procedures, and upcoming events. By optimizing your website for local SEO, you enhance visibility in online searches, ensuring that interested parents find your center easily.
• Email Marketing:  Implementing an effective email marketing strategy allows you to regularly communicate with parents, providing updates about enrollment, upcoming events, educational resources, parenting tips, and testimonials. This strategy fosters engagement, builds trust, and maintains a consistent line of communication with parents considering your daycare services.

Local Advertising

• Community Engagement:  Foster connections within the local community by participating in neighborhood events, sponsoring school activities, or organizing open houses and tours to showcase your daycare’s facilities and programs.
• Partnerships:  Collaborate with local businesses, pediatricians, schools, or community centers to establish referral programs, joint events, or educational workshops, thereby increasing your daycare’s visibility and credibility.

Promotional Activities

• Special Enrollment Offers:  Create promotions like ‘Early Bird Registration Discounts,’ ‘Sibling Discount Programs,’ or ‘Refer-a-Friend Incentives’ to attract new enrollments and encourage parent referrals.
• Open House Events:  Host periodic open house events inviting prospective families to tour your facility, meet staff members, and learn about your curriculum and approach to childcare.

Sales Channels

Implement effective sales strategies to convert inquiries into enrollments and ensure customer satisfaction.

Consultative Selling

• Tours and Information Sessions:  Offer guided tours of your daycare center, allowing parents to experience the facilities and interact with teachers. Conduct informative sessions addressing parents’ concerns and questions about your programs, curriculum, safety measures, and daily routines.
• Personalized Approach:  Tailor your communication with parents based on their specific needs and concerns. Highlight how your daycare meets their child’s developmental needs and addresses any apprehensions they might have.

Enrollment Process Efficiency

• Online Enrollment:  Simplify the enrollment process by offering an intuitive, user-friendly online registration system accessible via your website. Ensure it provides all necessary information and offers secure payment options for a seamless experience.
• Enrollment Incentives:  Provide incentives like waived registration fees, trial days, or discounts on the first month’s tuition to encourage parents to enroll their children at your daycare.

Retention Strategies

• Parent Engagement:  Foster a sense of community by organizing family-friendly events, parent-teacher conferences, workshops on child development, and educational seminars. Encourage parental involvement through volunteering opportunities or participation in daycare activities.
• Quality Service Delivery:  Focus on delivering exceptional childcare services, ensuring the safety and well-being of children, providing engaging learning activities, maintaining open communication with parents, and offering regular progress updates about their child’s development.

Strategy Timeline

Lastly, draft a precise timeline that marks crucial milestones for the daycare’s launch, marketing initiatives, enrollment targets, and growth plans, ensuring the business progresses with clear goals and intent.

The Management section focuses on the daycare business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the daycare business toward its financial and operational goals.

For your daycare business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your daycare business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your daycare business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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The Daycare Business Plan Blueprint (Examples + Template)

April 14, 2022

Adam Hoeksema

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

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

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

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

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

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

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

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

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

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

How to Create a Daycare Business Plan 

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

• Business Description
• Market Analysis

Business Model

• Location and Facility
• Marketing Plan
• Financial Plan

Executive Summary

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

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

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

Create a Compelling Business Description

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

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

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

What's your Curriculum Based On?

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

When describing your curriculum, make sure to include:

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

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

How Big is Your Facility? 

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

This section of your business plan may include: 

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

Who Is Your Target Market? 

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

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

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

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

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

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

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

Do a Thorough Market Analysis

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

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

Keep these things in mind when doing a market analysis:

The Size of Your Market

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Daycare Marketing Plan

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

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

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

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

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

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

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

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

Daycare Financial Plan

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

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

This section should include projected costs for:

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

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

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

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

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

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

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

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

Let’s dive into some key questions. 

How much does it cost to start a daycare? 

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

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

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

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

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

How much revenue can a daycare business make?

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

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

How much does daycare cost?

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

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

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

The typical child to staff ratios for a daycare are:

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

Source - Childcare.gov

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

What are the typical operating costs for a daycare? 

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

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

Other operating costs for a daycare center include:

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

How much profit can a daycare make? 

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

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

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

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

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

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

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

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

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

What Are The Benefits of Creating a Daycare Business Plan?

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

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

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

Gives You a Roadmap to Follow

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

Helps You Secure Funding

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

Ensures Your Daycare Business is Feasible

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

Final Thoughts

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

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

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

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

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

You can get the Daycare Facility financial projection template here!

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

The daycare business projection template includes:

5 Year Daycare Facility Pro Forma Financial Statements

CPA Developed & Completely Customizable

Free Support & Projections Review

Compatible with Google Sheets

Free expert review of your completed projections

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

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

Get the template today for just $79

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

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

‍ Photo by Pixabay

About the Author

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

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Daycare Business Plan Template

Written by Dave Lavinsky

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

Download our Ultimate Daycare Business Plan Template here >

What Is a Daycare Business Plan?

A daycare business plan provides a snapshot of your daycare 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

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

Source of Funding for a Daycare Business

With regards to funding, the main sources of funding for a daycare business are bank loans and angel investors. With regards to bank loans, a lender will want to review your daycare 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 daycare 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. Venture capitalists will not fund a daycare business.

Finish Your Business Plan Today!

A good daycare business plan should include the following 10 key elements:

Executive Summary

Your executive summary provides an introduction to your daycare 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 business you are operating and the status; for example, are you a startup, do you have a daycare that you would like to grow, or are you operating a chain of child care centers.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the daycare industry. Discuss the type of daycare you are operating. Include detailed information about your direct competitors. Give an overview of your target customers. 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 the type of daycare company you are operating, including a business description.

For example, you need to decide which type of child care business you plan to operate:

• Home-Based Daycare: this type of daycare business operates out of your home and typically has one or two caregivers on staff.
• Daycare Center: this kind of child care center operates out of a commercial building. It typically has multiple teachers and personnel and can provide care to many kids.
• Preschool Daycare: a daycare business that primarily serves preschoolers
• School-Age Daycare: a daycare business that primarily serves school-age kids.

In addition to explaining the type of child care you operate, the Company Analysis section needs to provide background on the business.

Include answers to questions such as:

• When and why did you start your daycare business?
• 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? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

First, researching the daycare industry educates you. It helps you understand the 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 daycare 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 of your daycare business plan:

• How big is the daycare business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the local or national market?
• What trends are affecting the daycare 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 daycare. 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.

Customer Analysis

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

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

Try to break out your target audience in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the families you seek to serve. Because most daycares primarily serve customers in the same local area, such demographic information is easy to find on government websites.

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

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Competitive Analysis

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

Direct competitors are other daycare providers in your local area.

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

With regards to direct competitors, you want to detail the other daycare or child care centers with which you compete. Most likely, your direct competitors will be daycare businesses located very close to your location.

For each such competitor, provide an overview of their services and document their strengths and weaknesses. Unless you once worked at your competitors’ daycare 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 parents do they offer services to?
• What daycare 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 parents’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior daycare services?
• Will you provide daycare 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.  

Marketing Plan

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

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

Price : Document the prices 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 child care services you offer and their prices.

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

Promotions : the final part of your daycare marketing plan is the promotions section. Here you will document how you will drive families to your location(s). The following are some promotional methods you might consider:

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

Operations Plan

While the earlier sections of your daycare 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 procedures include all of the tasks involved in running your daycare such as discussions with prospective new customers, procuring supplies, keeping the center clean, 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.  

Management Team

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

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

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

Financial Plan

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 costs to show whether you turned a profit or not.

In creating 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 company. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While these financial statements 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 daycare 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 statement will help determine how much money you need to start or grow your company, 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 daycare 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 costs needed in starting or growing a daycare center:

• Daycare center build-out including design fees, construction, etc.
• Cost of fixtures like tables, chairs, couches, etc.
• Cost of equipment used like computers and televisions
• Payroll or salaries paid to staff
• 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 daycare center design blueprint or location lease.  

Putting together a good business plan for your daycare is an exciting process to help you develop and grow your child care business into the future. If you follow the template above including all the key sections, by the time you are done, you will truly be an expert. You will really understand the daycare industry, your competition, and your target parents. You will have developed a comprehensive business plan and will really understand what it takes to launch your daycare business, obtain the financing you need, and expand your business.

Daycare Business Plan Template PDF

You can download our daycare business plan PDF or use our sample daycare business plan to help you get started on your own business plan.

If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate Daycare Business Plan Template has numerous features not available in the free template including its financial projections template which automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements.  

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

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 a Growthink business planning advisor can create your business plan for you.

Other Helpful Business Plan Articles & Templates

How to Start a Daycare Business Plan 

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

Table of contents

What is daycare and why should i start one.

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

Assess the Competition

How to start your daycare business.

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

Get Familiar with Daycare Licensing Requirements

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

Build an Expert-Level Business Plan for Daycare

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

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

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

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

Is Starting a Daycare Business Worth It?

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

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

Types of Daycare Providers 

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

The Difference Between Individual Centers and Franchises  

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

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

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

Daycare Franchise Terms

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

Essential Planning Steps Before Starting Your Daycare Business

1) conduct market research.

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

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

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

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

2) Determine Your Target Market

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

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

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

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

Target Market Terms

This should include everyone you wish to reach.  

Example: Your entire local community.  

SAM: Your Segmented Addressable Market or Served Available Market 

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

Example: Families with young children.  

SOM: Your Share of the Market 

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

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

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

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

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

3) Develop Your Buyer Personas

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

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

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

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

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

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

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

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

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

Audience Overview

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

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

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

Decision Journey Map Terms & Definitions 

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

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

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

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

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

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

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

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

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

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

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

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

Download the Guide

Build a Daycare Business Plan

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

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

A strong business plan can help you recruit business investors, gain funding, or find new partners. Prospective investors want to feel confident they’ll see a return on their investment and your center’s business plan is the perfect tool to assure potentials that working with you — or investing in your business— is a smart and profitable decision.  

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

Although this section is the first thing people will read, it’s advised that you write it last, once you know the details of your business inside and out. At this stage, you will be able to articulate your business more clearly and summarize all the information in a succinct, concise manner.  

Ideally, your executive summary will be able to act as a stand-alone document that covers the key highlights of your detailed business plan. In fact, it’s common for investors or loan providers to ask for just the executive summary when they start evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation, and more in-depth daycare business plan financials.  

As your executive summary is such a critical component of your business plan, you’ll want to make sure that it’s as clear and concise as possible. Cover only the essential components of your daycare, ensuring your executive summary is one to two pages maximum. This section is intended to be a quick read that hooks your potential investors’ interest and excites them to learn more.  

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

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

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

Conduct an Opportunity Analysis 

The opportunity section of your business plan includes information about:  

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

Opportunity Analysis: An Example 

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

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

Problem and Solution

Describe the problem that you are solving for your customers. Childcare centers are need-oriented, meaning your consumers have tangible pain points that you must resolve to be successful.   

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

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

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

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

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

The Importance of Creating an Execution Plan

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

Execution Plan: Marketing and Sales  

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

Your Positioning Statement

Once you understand your audience, the first part of your marketing and sales plan is your positioning statement. Refer back to your value proposition to create a simple, straightforward sentiment, explaining where your company sits within the competitive landscape and what differentiates your venue from the alternatives that a customer might consider. This statement should be written for an investor or loan provider, rather than for your customer.  

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

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

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

Your Mission Statement

Your mission statement is a scaled-down version of your positioning statement. This should be just one or two sentences that are geared toward your target consumer and describe what your business plans to accomplish. This statement usually includes company core values that explain your daycare’s purpose and how you serve your audience.  

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

Pricing 

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

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

Strategic Alliances

As part of your marketing plan, you may wish to collaborate with other organizations such as local camps, after-school programs, pediatricians, or even other childcare centers that don’t offer the same activities that you do.   

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

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

Milestones and Metrics

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

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

Company and Management Summary

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

Financial Forecasts  

A typical financial plan will have monthly sales and revenue forecasts for the first 12 months, and then annual projections for the remaining three to five years. Break your sales forecast down into several rows, focusing on just high-level buckets at this point.   

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

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

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

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

See this Formula for Financial Forecasts

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

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

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

Consider Various Funding Sources

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

Review Your Tax Deduction Options

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

Collect Daycare Grants for Your Business

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

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

Know Which Loans Are Available to Daycare Business Owners

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

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

Take Actionable Steps to Bring Your Daycare Business to Life

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

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

Find the Right Vendors

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

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

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

1) Take a Course

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

2) Submit Your Application

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

3) Pay Fees

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

4) Complete Inspections

An inspection of your business property must be conducted.

5) Submit Your Service Payment

Register and pay for the inspection.

6) Conduct Background Checks

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

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

Choose Your Insurance and Liability

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

*Liability requirements may vary by state.

How to Gain Enrollment at Your Daycare

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

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

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

Create a Culture Where Staff Want to Work

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

Market Your Center

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

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

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

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

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

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

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

Download Your Guide

Resources to help you run your childcare business.

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...

Additional resources.

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

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

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

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

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

5. Gain advice for strengthening your daycare staff culture. 

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

LineLeader Video Resources

How to Create a Daycare Business Plan

Childcare owners get into the daycare business through many pathways. Whether you are a business-savvy educator in the child care industry, a new parent looking to fill a need in your community, or a seasoned entrepreneur looking to expand your horizons – the first step to launching your daycare business is to create a comprehensive business plan.

Let’s get real for a moment here – writing a child care business plan, will take quite a bit of time, a lot of thinking, and even more energy to follow through. But, get this step right and you will set the tone and direction to create a successful daycare business (ad)venture! 

When developing your daycare business plan, it is ideal to think in the timeframe of 3-5 years. This level of long-term thinking will serve as a map on your way to your goal of establishing a solid daycare business plan to start a daycare.

Without further ado, let’s help you get started.

Here’s an overview of 9 elements that you’ll need to build a good daycare business plan. A child care business plan should include the following:

• Executive Summary 

Company Overview 

• Service Description  

Market Analysis 

• Marketing Plan  

Operations Plan

Financial analysis , supporting documents .

Executive summary for your child care business plan

This is your introduction and “elevator pitch.” Keep it short, sweet and to the point.

The executive summary section of your daycare business plan should function to get potential investors and partners excited about what your daycare center has to offer in the following key sections. 

This is an opportunity for you to include: 

• A brief but “wow!” business description
• Your mission statement

Your executive summary is a place to express what’s unique about your daycare business plan – is it the location, approach, learning philosophy, child care services, team, diversity, or something brand new? Don’t be afraid to make this your own!

This section covers the structure of your daycare business plan and business concept.

Are you planning on being a thought leader in the daycare industry within a specific niche of childcare? A special Waldorf school? A school that prioritized multiculturalism? A center that is Montessori first with Reggio influences to prioritize independent learners? Home daycares? Or do you want to build an empire with an eye on franchising your daycare business model? 

Some key elements to include in a brief overview are: 

• Your daycare business structure
• History of the business
• Core services offered
• Target age group and capacity
• Success milestones (accreditation, state-focused quality rating)  
• Mid-term business goals & requirements

Service Description 

This section dives into the nitty-gritty of what daycare services you will provide to your community and how your business will go about doing so.

Things to think about for your business description are: 

• Full-time or part-time care 
• After school care for school aged children 
• Child Care Center capacity 
• Age group information 
• Operation hours 
• Extra-curricular programs (yoga, music instruction, languages, gardening)
• Food program 
• Room layout & design 
• Furnishing & equipment needs 
• Facility management & development 
• Do you have a big vision for your daycare facility that needs to be broken down into different phases?
• If yes, what do these phases look like? 
• Will consultants be hired to support each phase of growth? Is this even necessary?
• Will there be a board involved in the decision making process (NFPs)

This is where your vision meets reality! Think of this piece as your ingredients list to build a good daycare business plan. Write everything down and ask people in your inner-circle for feedback.

Market analysis is a business way of saying, “Get to know your surroundings.”

Here’s a list of questions to get you on the right track: 

• Who is your target audience? (School age kids? Working parents? )
• What are the geographic boundaries of the client base that your business will serve?
• What is the population of young children & families in your area? (Are there many new young families moving in?)
• What is in high demand for child care services? 
• What is the supply for childcare? 
• How many daycare businesses are there in the area? 
• Where are other daycare providers located? 
• How long are waitlists? 
• What kind of programming / services are offered by other child care centers?
• What are childcare vacancies like in the daycare industry? 
• How much does childcare cost in the area? 
• What’s the dominant age group in the area? 
• What are the unique licensing & regulation requirements for child care centers in your area?

Answering as many of these questions as you can will give you a clear picture of what you’re getting yourself into and how to stand out from competition. 

Okay, let’s get practical for a minute – how can you answer these questions? Drive around. Join parent communities online. Facebook groups are great resources to understand what parents and potential customers around you are talking about, stressing about, enjoying, and prioritizing in their childcare search.

In short,  really  get to know your community of potential customers for your business. I cannot stress the importance of this step for a good business plan. Nothing beats listening to real people from your target market with real problems when building a business case. This seems simple, but it does take a lot of work and persistence to get results. 

To distill this process into 5 broad business categories for your daycare business plan: 

• Understand your target customers
• Identify the need of your target customers
• Research your competitors 
• Define your differentiators 
• Position yourself to grow your business

A note on licensing requirements and regulation : Before you take any steps towards setting up your child care business or daycare franchise, take the time to understand the center licensing guidelines and regulations that will apply to you from your local government. Make sure that you will be able to obtain the necessary licensing for your facility.

Marketing Plan 

My favourite part. Now that you have an idea of your daycare business identity, you have to have a marketing plan to promote it and make a splash!

• What differentiates you from existing daycare businesses or other child care centers in the area? 
• How can you really showcase what’s special compared to competition? 
• What are your initial marketing goals? Perhaps building out a waitlist before launching? 
• How will you connect with families you want to work with with your marketing strategy?

Building out a marketing plan for your daycare can be as simple or as elaborate as you like. Get creative with your marketing strategy and really show your personality. Here’s an in-depth post we did about marketing your child care center .

Now an idea is just a thought without a team to get it done. Your operations plan is the backbone of your business. In this section, key things to include are: 

• Who is on your management team?
• Who are your core staff members? 
• What does the organizational chart for your business look like? 
• Training opportunities & needs for staff? 
• If your daycare center is a NFP, who are the board members? 
• If your daycare center is a for profit center, will you have a parent committee that drives operations at your center?

Think of this section as building out your A-team. Why have you chosen certain people for their roles? What do your management team members bring to the table that’s unique?

This also brings transparency to how your team is structured and career development opportunities. Remember to keep growth in the back of your mind for each section of your daycare business plan. 

Now that you’ve done most of the heavy lifting, you can use all the information that you have previously gathered to come up with a financial plan for the first few years of your business operations. 

Remember, starting any business is difficult and it usually takes 3-5 years to break even and start becoming profitable.

Here are the key questions to answer in this section: 

• What is your start up budget? 
• How will you secure funding?
• What is your annual operating budget (income & expenses) 
• Income statement
• Balance sheet 
• Revenue model 
• Your current revenue & expense statement 

Need a template to get started on your financial plan? Check out  How To Manage Your Child Care Center Budget  to download the template.

Milestones 

This last section is one I like to call, the “keeping us honest” section. This is where you and your team will list down milestones that you plan on accomplishing on your daycare business plan journey. Don’t leave this section blank as it’ll be your measuring stick as you launch your daycare business plan. 

Some example milestones are: 

• Reaching 80% of capacity 
• Getting NAEYC accredited 
• Achieving the most stars in your state QRIS 
• Collecting 5 star reviews from parents for your Google page 
• Reaching 100 followers on your Facebook community 

Get together with your team and pick the measures that make the most sense for your childcare business.

Here’s a list of documentation that might come in handy when pulling all of this together. 

• Revenue & expenses sheet 
• Financial projections 
• Income statement, balance sheets and funding
• Resumes of everyone on your team
• Contracts with external consultants 
• Letters of endorsement 
• Legal documents (daycare license, property documents, articles of incorporation) 
• Daycare business plan template
• Any other relevant information 

Child Care & COVID-19 

While COVID-19 has thrown a wrench in many people’s business plans, that does not mean that you should give up on your dreams of becoming a daycare business owner. With all the change and uncertainty of the current climate comes the space for opportunity!

Centers now have to operate under different health and safety requirements, most notably reduced ratios.

Here’s a roundup of resources that we’ve compiled as a team to support your business plans during the pandemic and beyond.

• [Survey] What Parents Value In Childcare During COVID-19
• [Guide] Cold, Flu, COVID-19: A Director’s Survival Guide (with printables)
• [Article] What To Do If Someone Tests Positive For COVID-19
• [Webinar] HiMama Features To Build Trust During COVID-19  

To quote Dwight Eisenhower, “Planning is everything, the plan is nothing.” The process of defining your vision will make a difference when facing obstacles on your journey to creating a successful business.

Things won’t go perfectly according to your daycare business plan, but because you’ve mapped out your way, you will find a way to work over, under, or around those obstacles to get there.

Good luck! 

Did you know that HiMama makes it simple to get organized, stay in touch with parents, and keep on top of your operations? Contact us today to find out how we can make your daycare business plan into a reality.Do you have any pointers to add to this? We’d love to hear them. Let us know in the comments below. Don’t forget to follow us on social media @HiMamaSocial.

Carmen is the Marketing Coordinator and Preschool Podcast Manager on the HiMama team. She's been working with childcare business owners and consultants for 3 years. She is passionate making connections that empower the ECE Community through knowledge-sharing to support better outcomes for children, their families, and society!

More by Carmen

Carmen Choi

February 13th, 2017

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Childcare expansion: 5 things to consider when expanding your child care center

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Child Care Business Plan

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The Toddler Warehouse

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

The education of our children needs to start earlier and earlier. The school system is failing.  Those who can hire private teachers and tutors to help with their children’s education should.

The Toddler Warehouse is a full-service child care/development facility that cares for toddlers from age three to five. The Toddler Warehouse will be concentrating on the upper end of the market: double-income professional parents. These personally ambitious parents are typically eager in terms of their children’s development and will be willing to pay to have their children attend the best facilities.

The Toddler Warehouse will be offering child care/development for toddlers age three to five. The Toddler Warehouse will be targeting double income professional families who, because of work obligations, do not have the time during the day to care for their child. The Toddler Warehouse will be targeting families that are interested in something more than simple baby-sitting facilities, they would like the children to be enrolled in a program that offers development of many different skills including: socialization skills, arts and crafts, large muscle group workouts, reading, numbers, etc. Parents who are professionals, who are ambitious by nature themselves, are typically eager for their children to move ahead and are willing to pay for the best development care services for their children.

Competition

The Toddler Warehouse will be competing in the child care industry. This industry is fairly broad and populated, there are companies at all levels, from the basic baby sitter services, to competitors of The Toddler Warehouse. There are service providers that offer standard business hours as well as services that offer night and evening hours. There are scheduled services and no reservation drop off services. Price, quality, and gut feeling drives a lot of parental choices. The Toddler Warehouse believes the secret to success is to 1) concentrate on only a portion of the market, and 2) choose a portion of the market that is growing.

The Toddler Warehouse’s mission is to provide top level child care. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

Expectations

We will be profitable in the first year. By year 3 we will be able to hire more general help which focuses on care since we are all set for teachers

Financial Highlights by Year

Financing needed.

Matt will invest $85,000

Problem & Solution

Problem worth solving.

The education of our children needs to start earlier and earlier. The school system is failing.  Those who can hire private teachers and tutors to help with their children’s education should.

Our Solution

The Toddler Warehouse is a full-service child care/development facility that cares for toddlers from age three to five. The Toddler Warehouse will be concentrating on the upper end of the market: double-income professional parents. These personally ambitious parents are typically eager in terms of their children’s development and will be willing to pay to have their children attend the best facilities.

Target Market

Market size & segments.

The Toddler Warehouse is targeting one specific customer group, the middle to upper class, two income professional family. This group of families have both parents working, not allowing them time to raise their child during the day. This group has the money for child care, and are willing to spend a little extra to get a higher level of care.

This customer segment has already begun teaching it’s child advanced concepts like reading, singing, socialization, etc. The Toddler Warehouse will continue to develop the children’s skills.

This customer group is typically made up of two professional parents. This would explain why the parents 1) have the money for more sophisticated child care, and 2) are ambitious in terms of their children’s learning and development.

Current Alternatives

There are many different competitors in the child care space. The Toddler Warehouse will only detail the direct, or reasonably direct competitors, and will not detail the myriad of other service providers that offer some sort of child care option. The direct competitors are:

• Established, often franchised, child care centers. These are typically larger facilities that offer care to a wide range of ages. The number of children serviced is usually quite large. The child care is adequate, although somewhat impersonal by virtue of its large size.
• Small, home based child care. These competitors are people that have a child care facility based out of their house. The quality of these ranges considerably, some are great, some are sub par.
• Medium sized companies. These are typically independently owned facilities. Some of theses will handle a wide range of ages, others will specialize with a specific age group.

Our Advantages

The Toddler Warehouse’s competitive edge is two-fold:

• Specialized training – The facility can only be as good as the teachers and assistants. With this in mind, The Toddler Warehouse has a specialized training program that all teachers and assistants are put through so they are proficient at teaching the specific programs that The Toddler Warehouse has developed for toddlers age three to five. The employees are put through an intensive week long course and only after they pass the intensive training will they be allowed to work with the children.
• Innovative learning programs – Typical learning programs for toddlers this age focus on specific traits and only work on one trait/ skill at once. While this is successful in reinforcing the skill, it is often very difficult for the child to appreciate the interrelationships of the different skills. Consequently, the child can learn the skill, but has difficulty applying the skill when faced with multiple stimuli. When the child is unsure of what to do because of the multiple stimuli and these several skills that they have learned independently, the child tends to shut down out of confusion. Matt’s Master’s thesis was based on Intertwined Learning Systems that teaches skills not in isolation from each other, but taught together. Matt’s research strongly supports the assertion that when the skills are taught together, just as you would expect to encounter them in real life, the children are able to assimilate the new task into their skill set much quicker.

Keys to Success

Our keys to success are: 

• To create a service based operation whose primary goal is to exceed customer’s expectations.
• The utilization of The Toddler Warehouse by at least 40 different families in the first eight months.
• To increase the number of client’s served by 20% each year.
• To develop a sustainable, profitable, start-up business.

Marketing & Sales

Marketing plan.

The Toddler Warehouse intends to concentrate on the double income working professional families because they are the segment that can most readily afford day care, are the ones who need day care because of their work obligations, appreciate the advanced learning and development The Toddler Warehouse has to offer, and lastly are a growing segment of our society.

As America continues to be a society of people working long hours, there will always be the need for child care. The trend of longer work weeks is increasing and this drives The Toddler Warehouse’s business.

The Toddler Warehouse’s sales strategy will be targeting double income working professional families. These families have the money to spend on child care and these parents are much more likely to appreciate the advanced learning systems taught at The Toddler Warehouse based on Matt’s thesis.

The sales strategy will be based on a communication effort to explain the virtues of the program and how time at The Toddler Warehouse can speed up the children’s development considerably. In addition to one on one explanations of the program and its merits, the prospective parents will be given tours of the facilities. The tour of the facility will serve two purposes:

• The tour will be used as a way to impress the prospect of the facilities that The Toddler Warehouse has. These facilities were custom designed to achieve very specific educational goals and The Toddler Warehouse is immensely proud of the facilities.
• The tours typically occur during the day and this becomes a perfect opportunity for the potential customer to view the care as it is occurring. This will serve to build a trust bond between The Toddler Warehouse and the parent who naturally is cautious about leaving the child with strangers to have the child cared for and taught the entire day.

In essence, The Toddler Warehouse  is letting the facilities and teacher/student interactions speak for themselves. Because of the high level of service, this is entirely possible.

Locations & Facilities

The Toddler Warehouse, soon to be located in Salem, OR, will offer child care services for kids between the ages of three and five. The Toddler Warehouse will offer services from 6 a.m. to 7 p.m. The children will be exposed to a wide range of activities including arts and crafts, socialization, large muscle group activities, and general learning. The Toddler Warehouse will be priced out of some people’s budget, but will offer a low student to teacher ratio and well trained staff. The Toddler Warehouse will be located in a recently purchased and converted home that now is solely a child care center.

Equipment & Tools

The Toddler Warehouse offers Salem an upper-end child care facility for toddlers age three to five. The Toddler Warehouse offers a low teacher to student ratio, custom facilities, and innovative learning programs. The Toddler Warehouse hours will be a bit wider rage than normal business hours to accommodate the working parents, the target customer.

The two income families have children, yet both parents work. The Toddler Warehouse is an innovative solution that acts as virtual parents, broadening the children’s skills during the day. This is not a baby sitter facility. The children are engaged throughout the day, learning new skills and reinforcing already acquired ones.

Milestones & Metrics

Milestones table.

Key Metrics

Key metrics are: 

• The # of families paying fees to breakeven 
• increase the # families paying fees by 20% year over year 
• training teachers and assistants 
• keep on top of the educational tools 

Ownership & Structure

The Toddler Warehouse will be an Oregon Corporation, founded and owned by Matt Ernal.

Management Team

Matt Ernal, the founder and owner of The Toddler Warehouse will be running the daily operations. Matt got his undergraduate degree in English from the University of Oregon. Upon graduation, Matt was unsure of what he wanted to do so he travelled to Indonesia and taught English for three years. For the first year, Matt lived with a local family. In exchange for room and board, Matt cared for the family’s two children. Although he had never done any child care before, Matt found this very satisfying.

Upon returning to the US, Matt was contemplating pursuing something with teaching. His experience in Indonesia was quite positive, both the English classes and caring for the young children. Ultimately, it was the experience with the young children that led Matt to consider a career teaching young children. Matt entered Western Oregon University’s nationally recognized Master of Education Program to pursue toddler development. After graduation, Matt was confident of his abilities and decided that he would appreciate the autonomy of running his own business. He purchased a house for the facility has been working hard on this project ever since

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

Our key assumptions: 

• Kids need to have a place that caters to the way they learn 
• Kids need somewhere that teaches them life skills
• Education starts at a very young age
• Parents need somewhere safe and nurturing to leave children while they finish their workday. 

Revenue by Month

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

The Toddler Warehouse’s start-up costs include:

• Legal: $1,000
• Stationery etc: $100
• Brochures: $350
• Art supplies: $150
• Kitchen supplies: $200
• Cleaning supplies: $100
• Medicine kits: $100
• Matts and pillows: $150

Total $ 2150 

Sources of Funds

Our founder will invest $85,000 to get the operation up and running. 

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

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Home » Sample Business Plans » Education » School

How to Write a Preschool Business Plan [Sample Template]

Do you want to start a preschool and need to write a plan? If YES, here is a complete sample preschool business plan template & FREE feasibility report. There are various business ideas that you may want to start.

However there are some businesses that guarantee good returns on investment. Chief amongst it is the preschool business. One of the reasons why this business is good is the point that you are able to help mound lives whilst you are making good money.

Why Start a Preschool?

Running a preschool can be a very rewarding and profitable venture. An entrepreneur who is interested in children education and also having a business might find that opening a preschool would meet both desires. Before starting a preschool, one must be prepared by ensuring that they carefully plan out the venture from the beginning, by researching on local and state laws that govern pre – school education business.

What Does It Take to Start a Preschool Successfully?

There must also be planning as regards space, getting insurance, developing a curriculum, hiring additional staff, advertising and registration of children. A pre – school program is a business that requires that no details be overlooked.

The first thing that needs to be done before starting out is in contacting the local governing body of child care for relevant information regarding the opening of a preschool. When approaching the governing agency, ask to meet with the administrators, so as to discuss your business idea, and get information on how to become a licensed preschool program provider.

After gathering all the information that you would need including written literature, you would need to contact the local government as regards getting a license to start. Depending on the state you will be operating in, you might be required to register and pay a fee to obtain licensees.

You will also need to ensure that the property you intend to use as a facility is in an acceptable area from which the business can be started, even if it is a section of your own residence, this can be done by contacting the zoning department of your local government, and if the area you choose is not suitable, you will be advised on suitable areas.

After applying for a business license as required by the state and meeting any other special requirements needed in order to become a preschool, you should then consult with insurance agencies regarding the right coverage for your facility. Ensure you choose a plan that will adequately cover you, your clients, as well as your business.

Lastly, ensure that you prepare your location for safety inspections, while ensuring that your facility has emergency evacuation plan in place for any unforeseen circumstances or disasters. Also prepare a curriculum for your pre – school program.

You can either choose an established program from a particular publisher or choose various materials from several publishers, while not forgetting that you have an option of creating your own curriculum. Do not also forget to hire qualified staff after running background checks, and marketing your school.

A Sample Preschool Business Plan Template

1. industry overview.

The Preschool industry operators provide day care services for children under the ages of three and four to prepare them for kindergarten.

The dispersion of the preschool programs reflects in the geographic distribution of the children, which is also influenced by the cost and supply of pre – school programs, income and housing affordability patterns, labor, and child care subsidy policies. Also, varying state and local regulations and licensing requirements affect employment in this industry.

According to research and statistics, this industry generates $53 billion annually, and is projected to have an annual growth rate of 2.5% by 2016. The number of business in this industry amounts to 768,021, employing 1,664,311 people.

There are about 53,000 commercial facilities, plus about 21,000 facilities run by non-profit organizations. The industry is highly fragmented as the top 50 companies generate less than 20% of revenue for the entire industry.

Preschool programs became popular especially as more percentage of women in the workforce grew by nearly 71% in 2007. According to the Bureau of Labor Statistics (BLS), 28% of mothers with young children worked in 1975, which has more than doubled by 60% by 2013.

Over the same period, employees in the daycare industry increased by nearly 250%. The bureau also noted that investment in childcare by non-profit and government agencies, as well as new tax credits, also helped to fuel the industry’s growth.

According to the Child Care Aware group, about 11 million children under the ages of 5, spend an average of 35 hours a week in childcare. Infants in center-based care had an average annual cost that ranged from $5,496 in Mississippi to $16,549 in Massachusetts; 4 year olds had care in a center ranging from $4,515 in Tennessee to $12,320 in Massachusetts; with the quality of care and degree of regulation varying widely.

Also, childcare workers were seen to be paid the lowest wages in any professional field, $21,490 on average. However, the recovery of the economy is already impacting greatly on the preschool market.

Parents and especially mothers are going back to work, thereby causing the demand for preschools and preschool services to grow. This means that disposable income will increase which will let parents especially women put more resources towards child care like the high value early educational programs.

Even though this might seem like a saturated field, it isn’t, as there is always a constant demand for parents to prepare their children for proper schooling. The incentives in venturing into or starting a pre – school are having an impact on toddlers who are struggling academically and getting them engaged so that their parents will carry out their businesses or other activities.

2. Executive Summary

Future Stars® Pre – School is a standard and well – equipped pre – school that will be located in a well – populated residential estate in Ashville – North Carolina, united states of America. We are a preschool that provide day care services for children under the ages of three and four to prepare them for kindergarten.

Aside from the fact that we will operate a preschool center, we will also engage in home tutoring – we will go to the homes of our students as demanded by their parents.

Future Stars® Preschool is a client-focused and result driven preschool that provides day care services and broad-based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients (parents).

We will offer a standard and professional pre – school daycare and teaching services designed for toddlers in a highly secured, neat and conducive learning environment. We will ensure that we work hard to meet and surpass all our parents’ expectations and educational goals whenever they enroll their kids in our pre – school.

At Future Stars® Preschool, our kids’ and their parents’ overall best interest would always come first, and everything we do is guided by our values and professional ethics.

We will ensure that we hire professional educationist and care – giver who are well trained to handle kids that are of pre – school age in various kids development learning areas who are well experienced and passionate in imparting knowledge to toddlers at various learning ladder (potty training, rhymes, walking, dancing and talking et al).

Future Stars® Preschool will at all times demonstrate her commitment to sustainability, both individually and as an educational organization, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our clients’ (parents) needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our students.

Our overall business goal is to position Future Stars® Pre – School to become the leading Pre – School brand in the educational industry in the whole of Ashville – North Carolina, and also to be amongst the top 50 pre – schools in the united states of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Ashville – North Carolina is the right place to launch our pre – school; they have the right demographic composition that can support and sustain our business model.

Future Stars® Preschool is founded by Mrs. Clara Jake – MacPherson. She has a Degree in Education with bias in children education and she has well over 16 years of experience in the educational industry in the United States of America. She will be bringing in her wealth of experience to help build Future Stars® Pre – School to enviable heights.

3. Our Products and Services

The Future Stars® Preschool is going to offer daycare services within the scope of the education board in the United States of America. Our intention of starting our pre – school is to soundly prepare toddlers who are under the ages of three and four for kindergarten and of course to make profits from the education industry and we will do all that is permitted by the law in the US to achieve our aim and business goal.

Our service offerings are listed below;

• Provide daycare services for children under the ages of three and four to prepare them for kindergarten.
• Running a Standard and licensed Daycare Center
• Offering Home Tutor Services for toddlers as requested by their parents
• Retailing of Kids Educational Books and Materials

4. Our Mission and Vision Statement

• Our vision is to build a highly competitive pre – school / daycare center that will become the number one choice for parents in the whole of Ashville – North Carolina.
• Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission is to provide professional, safe and conducive daycare and learning environment to toddlers.
• Our overall business goal is to position our tutorial college to become the leading pre -school brand in the educational industry in the whole of Ashville – North Carolina, and also to be amongst the top 50 preschools / daycare center in the United States of America within the first 10 years of operations.

Our Business Structure

Future Stars® Pre – School will build a solid business structure that can support the growth of our pre – school. We will ensure that we hire competent hands to help us build the business of our dream. The fact that we want to become the leading pre – school / daycare brand in the educational industry in the whole of Ashville – North Carolina makes it highly necessary to deliberately build a well – structured business from the onset.

At Future Stars® Preschool we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our long serving senior staff members and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Head of The Pre – School (Daycare) / School Coordinator

School Administrator

• Tutors for Various Learning Areas
• Nannies / Caregivers / Aux Nurse

Marketing and Sales Executive

Accountant / Bursar

• Client Service Executive / Front Desk Officer
• Security Officer

5. Job Roles and Responsibilities

Head of the Pre – School / School Coordinator:

• Responsible for providing direction for the pre – school / daycare center
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for handling high profile clients and deals
• Responsible for fixing fees and signing business deals (partnership)
• Responsible for signing checks and documents on behalf of the tutorial college
• Coordinates all arms of the pre – school
• Evaluates the success of the pre – school / daycare center
• Reports to the board of the pre – school / daycare center
• Responsible for overseeing the smooth running of HR and administrative tasks for the pre – school
• Design job descriptions with KPI to drive performance management for all staff members
• Regularly hold meetings with key stakeholders (parents and member of the school board) to review the effectiveness of the schools’ Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversee the smooth running of the daily activities of the tutorial college.

Tutors for Various Learning Areas for Toddlers

• Effectively teach subject / subjects as assigned by the school coordinator
• Access the progress of kids under their care
• Ensure that kids participate in learning activities such as potty trainings, rhymes and dancing et al
• Contributes his / her quota towards growing the pre – school
• Receives complaints from parents and channel it to the appropriate quarters
• Handle any other duty as assigned by the school coordinator.

Nannies / Caregivers / Aux Nurses

• Responsible for changing diapers for kids and cleaning them up when they messed up themselves
• Responsible for feeding toddlers
• Ensures that toddlers sleep as at when due and help calm them when they are crying
• Goes the extra mile to ensure that toddles are comfortable and well taken care of.
• Contributes his / her quota towards growing the pre – school / daycare center
• Handles any other duty as assigned by the school coordinator.
• Identifies, prioritizes, and reaches out to new parents, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represents the company in strategic meetings
• Help increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the tutorial college
• Serves as internal auditor for the tutorial college

Client Service Executive

• Welcomes toddlers and their parents by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with parents (e-mail, walk-In center, SMS or phone) provides them with a personalized customer service experience of the highest level
• Through interaction with parents on the phone, uses every opportunity to build their interest in the school’s products and services
• Manages administrative duties assigned by the school coordinator in an effective and timely manner
• Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries
• Receives parcels / documents for the Pre – school
• Handles any other duties as assigned by the school authority
• Maintain a clean daycare facility by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
• Ensures that toiletries and supplies don’t run out of stock
• Responsible for handling laundry

Security Officers

• Ensure that the daycare facility is secured at all time
• Control traffic and organize parking
• Give security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submit security reports weekly
• Any other duty as assigned by the school coordinator.

6. SWOT Analysis

Future Stars® Pre – School engaged the services of a core professional in the area of business consulting and structuring to assist our pre – school in building a well – structured educational business that can favorably compete in the highly competitive education industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Future Stars® Pre – School. Here is a summary from the result of the SWOT analysis that was conducted on behalf of The Future Stars® Pre – School;

Our core strength lies in the power of our team; our workforce. We have a team that has the right passion and drive for taking care of toddlers, a team with excellent qualifications and experience in daycare / pre – school education. We are well positioned in a community with the right demographic composition and we know we will attract loads of parents who would want to enroll their kids from the first day we open our doors for daycare services.

As a new pre – school / daycare center in Ashville – North Carolina, it might take some time for our organization to break into the market and gain acceptance in the already saturated pre – school / education industry; that is perhaps our major weakness. Also we might not have the required money to pump into advertising and promoting our brand the way we would want to.

• Opportunities:

The opportunities in the pre – school / education industry is massive considering the number of parents who would want their kids under school age to be in safe place and to get them prepared for kindergarten. As a standard, safe and highly comfortable daycare center, we are ready to take advantage of any opportunity that comes our way.

Every business faces a threats or challenges at any part of the life cycle of the business. These threats can be external or internal. This shows the importance of a business plan, because most threats or challenges are to be anticipated and plans put in place to cushion what effect they might bring to the pre – school.

Some of the threats that we are likely going to face as a pre – school operating in the United States of America are unfavorable government policies that might affect daycare centers, the arrival of a competitor within our location of operations and global economic downturn which usually affects spending / purchasing power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The trend in the pre – school / daycare center line of business is that the keys to attracting parents to enroll their wards is the safety, cleanliness, location and of course the overall comfort of their toddlers.

The trend in the daycare center industry is such that players in this industry can now comfortably start their daycare business in an business district; a place where it is easier for working class parents to take advantage of their launch breaks and even tea breaks to dash down to breast – feed and cuddle their children before dashing back to work.

The demand for pre – schools is driven by the fact that most parents work or are engaged in businesses that takes them away from their kids that are under school age and one of the options left is to enroll such kid in a daycare center.

The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of early education. The areas you would need to spend heavily on is in ensuring that your school is up to standard, is the facility, your advertisements, and insurance.

8. Our Target Market

As a standard preschool / daycare center, Future Stars® Pre – School offers a wide range of pre – school services hence we are well trained and equipped to services a wide range of kids are different growth level irrespective of any challenges et al.

Our target market as a preschool / daycare center cuts across parents with kids under school age of different class and people from all walks of life.

We are coming into the pre – school / education industry with a business concept that will enable us work with the toddlers at different learning stages. Below is a list of the parents / toddlers that we have specifically design our pre – school services for;

• Working class parents with toddlers under school age
• Parents with toddlers under school age who run their own business and are too busy to take care of their wards during business hours

Our Competitive Advantage

This field is a highly intense one because of the level of quality service offerings by the pre – schools, who are more pressured to deliver better services. Due to this pressure, there is a jostling amongst the different pre – schools to get more parents to enroll their toddlers in their daycare center, thereby increasing their earnings as well.

We are quite aware that to be highly competitive in the preschool / education industry means that you should be able to deliver consistent quality service, parents should be able to experience remarkable difference and improvement in their toddlers and you should be able to meet the expectations of the educational governing board in the United States of America.

Our competitive advantage lies in the power of our team; our workforce. We have a team that has the right passion and drive for taking care of toddlers, a team with excellent qualifications and experience in daycare / preschool education. We are well positioned in a community with the right demographic composition and we know we will attract loads of parents who would want to enroll their kids from the first day we open our doors for daycare services.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups pre – school / daycare center in the United States) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Future Stars® Preschool is established with the aim of maximizing profits in the preschool / education industry and we are going to go all the way to ensure that we do all it takes to attract parents on a regular basis.  Future Stars® Preschool will generate income by offering the following services;

10. Sales Forecast

One thing is certain; there would always be parents who may want their kids under school age to be in safe place and to get them prepared for kindergarten. As a standard, safe and highly comfortable daycare center, we are ready to take advantage of any opportunity that comes our way.

We are well positioned to take on the available market in Ashville – North Carolina and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the pre – school and our student base.

We have been able to critically examine the preschool / daycare center market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Ashville – North Carolina.

Below is the sales projection for Future Stars® Pre – School, it is based on the location of our daycare center and of course the wide range of pre – school services that we will be offering;

• First Year-: $75,000
• Second Year-: $150,000
• Third Year-: $350,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. So, there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition amongst pre – schools / daycare centers in the United States of America hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Future Stars® Pre – School. We want to build a standard and first – class pre – school / daycare center that will leverage on word of mouth advertisement from satisfied parents

Our goal is to grow our preschool to become one of the top 50 pre – schools / daycare center in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Ashville – North Carolina but also in other cities in the United States of America.

Future Stars® Pre – School is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our pre – school / daycare center by sending introductory letters alongside our brochure to parents / household and key stake holders in Ashville – North Carolina.
• Print out fliers and business cards and strategically drop them in religious centers, libraries and public facilities.
• Use friends and family to spread word about your pre – school / daycare center
• Post information about our pre – school / daycare center on bulletin boards in places like churches, maternity clinics, parks, libraries, and local coffee shops et al
• Place a small or classified advertisement in the newspaper, or local publication about our pre – school / daycare center
• Leverage on referral networks such as agencies that will help match parents with toddlers under school age with our pre – school/ daycare center.
• Join relevant association or body that will enable you network and meet others in same industry.
• Advertising online by using an advertising platform such as Google Adwords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
• Advertise our pre – school in relevant educational magazines, newspapers, TV stations, and radio station.
• Attend relevant educational expos, seminars, and business fairs et al
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied parents

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both parents and students in the whole of Ashville – North Carolina which is why we have made provisions for effective publicity and advertisement of our pre – school / daycare center.

Below are the platforms we intend to leverage on to promote and advertise Future Stars® Pre – School;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around Ashville – North Carolina.
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of our pre – school / daycare center, and the advantage we over the others.
• Passing general information via our social media handles like twitter, Facebook, Google hangouts etc.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.

12. Our Pricing Strategy

Generally for pre – school and daycare services flat fees on a weekly or monthly basis is what is obtainable. As a result of this, Future Stars® Pre – School will charge our parents who enrolled their toddlers in our daycare center flat fees except for few occasions where there will be need for us to charge special students on hourly basis.

At Future Stars® Pre – School we will keep our fees below the average market rate for all of our students by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals.

We are aware that there are some kids that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such kids’ needs.

• Payment Options

At Future Stars® Pre – School, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up a pre – school business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a higher amount of capital as you would need to ensure that your employees are well taken care of, and that your pre – school’s environment is conducive enough to keep kids.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a pre – school business; it might differ in other countries due to the value of their money. However, this is what it would cost us in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring a facility / property that will accommodate the number of kids that we want to take care of for at least 6 months (Re – Construction of the facility inclusive) will cost – $35,000.
• Equipping the office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
• The budget for paying staff members and utility bills for at least 3 months – $70,000
• The budget for start – up inventories (toiletries, toys, cots, and mats et al) – $2,500
• Launching an official Website will cost – $500
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard and well equipped pre – school / daycare center in the United States of America.

Generating Funding / Startup Capital for Future Stars® Pre – School

Future Stars® Pre – School is a private business that will be owned by Mrs. Clara Jake – McPherson and family. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to offer a wide range of tutorial services and other related services to high school students, students with disabilities and elderly students (adult education).

We know that if we continue to deliver excellent daycare services, there will be steady flow of income for the organization. Our key sustainability and expansion strategy is to ensure that we only hire competent and selfless staff members, create a conducive working environment and employee benefits for our staff members.

In the nearest future, we will explore the options of either selling out franchise or expanding our scope beyond Ashville – North Carolina to other major cities in the United States of America. We know that if we implement our business strategies, we will achieve our business goals and objectives in record time.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Pre – Schools’ Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Pre – School: In Progress
• Creating Awareness for the pre – school in Ashville – North Carolina: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the education industry: In Progress

More on School

Envision, Execute, Educate: Creating a Business Plan for Your Daycare and Preschool

The importance of a well-structured business plan in the field of early childhood education and childcare cannot be emphasized. Aspiring entrepreneurs and educators who want to open a daycare or preschool face a dynamic and complex landscape that necessitates careful preparation and foresight. A business strategy acts as a compass, illuminating the road toward a sustainable childcare endeavor.

This article goes into the essential components of a thorough business plan for a daycare or preschool. We illuminate the route to developing a safe, supportive, and exciting environment where children can learn, play, and thrive by embarking on this exploration of the aspects that form an effective business strategy.

Table of Contents

Setting Clear Objectives

Setting firm financial goals is critical for the childcare and preschool’s long-term growth. These financial goals range from revenue targets that give a quantitative benchmark for growth to profit margins that define the venture’s financial health and return on investment that justifies the resource allocation to the business. These goals serve as the foundation for financial planning, allowing the organization to allocate resources more efficiently and develop strategies for revenue creation and expense management. They lay the framework for educated decision-making, fueling long-term strategic choices.

The genuine beauty of a daycare or preschool business plan emerges from the convergence of financial and educational goals. By aligning these objectives, decision-makers are better equipped to make decisions that are not only fiscally responsible but also in line with the instructional mission of the institution. Striking this equilibrium creates a virtuous cycle in which financial growth allows for the allocation of resources to optimize educational quality, while achievement of educational goals improves the center’s reputation and financial viability.

Identifying the Target Market

One thread stands out as particularly important in the intricate fabric of business planning: understanding the target market. This careful awareness of the audience serves as the foundation for services that are personalized to meet the unique needs of both parents and children. A complete examination of the local demographic landscape is crucial to this endeavor, revealing useful information to shape a childcare center’s products into a great match for its potential customer.

Through the prism of demographic study, a rich mine of information is revealed that directs the route to a daycare endeavor. Age, income level, and cultural diversity all act as compass points, expressing the community’s preferences and needs. This analytical investigation reveals the core heart of the possible client base. It tells whether there is a sizable population of working parents looking for stable childcare options, or whether there is a desire for flexible timings that meet a variety of work schedules. Understanding the demographic fabric reveals the intricate intricacies that inspire service design, assisting entrepreneurs in crafting a menu of offers that not only serve a need but also resonate with the local community.

Conducting a Comprehensive Competitive Analysis

Few maneuvers in the complicated dance of corporate strategy are as important as rigorous competition analysis. This thorough assessment provides a bird’s-eye view of the existing childcare terrain in the chosen region, providing a guide for entrepreneurs negotiating the numerous routes of market distinction. Business owners, like professional cartographers, examine the environment, mapping out their competitors, their strengths and weaknesses, and the range of services they offer.

However, the analysis does not end with dissecting competitors; it extends its tentacles to investigate the tapestry of services they weave. This in-depth investigation reveals the whole range of offerings, from curriculum options to operational approaches. Examining the menu of services available provides business owners with not just inspiration but also opportunities. Hidden holes often exist in the seemingly packed landscape—unmet needs and ambitions that entrepreneurial vision might solve.

The competitive analysis goes beyond emulation and serves as a springboard for innovation. Entrepreneurs extract the ingredients for a distinct value proposition by studying the competitors. This special offering becomes the rallying cry that sets their daycare center apart from the competition. It appeals to parents looking for high-quality, innovative care for their children, working as a magnet attracting them to the establishment.

Projecting Financial Viability

As entrepreneurs embark on this financial journey, their compass points to a broad perspective that includes a variety of factors. The projected revenue streams that would bring the enterprise to life are foremost among these concerns. Consideration is given to the many sources of income, ranging from tuition fees provided by parents to potential collaborations or supplemental offers. Entrepreneurs develop revenue predictions that blend ambition and realism by meticulously analyzing market dynamics and rival pricing, laying the groundwork for long-term productivity.

However, the financial journey does not end with these preliminary figures. A thorough cash flow analysis acts as a guide for navigating the ebbs and flows of financial tides. This analysis provides a lifeline during difficult times, showing the center’s financial health. It provides insights into situations in which expenses may temporarily outnumber profits and helps entrepreneurs to face these obstacles with resilience. Entrepreneurs may ensure that the childcare center not only grows but also endures by bolstering the center’s financial framework through this study.

These estimates have two functions: they entice new investors and serve as the foundation for prudent financial stewardship. Credible financial projections are like a welcoming hug in the world of investing, offering potential investors a clear image of the venture’s future. Investors are drawn to these estimates because they demonstrate the entrepreneur’s strategic knowledge and dedication to achievement.

Crafting Effective Marketing Strategies

The canvas for achievement is painted with the brushstrokes of smart marketing techniques in the dynamic landscape of daycare and preschool businesses. These techniques, similar to the nurturing atmosphere supplied to young minds, tend to the growth of the center by drawing parents and developing a sense of community. This sophisticated dance, tailored to the contours of the target market, covers both traditional and digital channels, orchestrating a symphony of exposure and interaction.

However, the marketing artwork goes beyond the digital canvas. Entrepreneurs understand the importance of personal connections and community involvement. Partnerships with local businesses create synergistic potential for mutual visibility by tapping into existing networks. Participation in community events serves as a showcase for the center’s personality and commitment to the advancement of the community. The nurturing touch extends to enlightening workshops that not only distribute knowledge but also develop friendships and cement the center’s reputation as a beacon of educational excellence.

An effective marketing plan’s artistry goes beyond aesthetics; it’s about the strategic interaction between visibility and engagement. An effective strategy, like a well-tuned instrument, connects with the ambitions of parents, generating an affinity that transcends transactional connections. The symphony orchestrates a regular stream of enrollments, ensuring the childcare center’s financial stability. This influx is more than a numbers game; it demonstrates parents’ faith and belief in the center’s promise of complete development.

Frequently Asked Questions

Why is a detailed business strategy required for a daycare or preschool, how do i select my daycare and preschool’s target market.

Identifying the target market necessitates a detailed examination of the local demographic. Consider aspects such as the age of the children, the demands of working parents, income levels, and cultural variety in the neighborhood. Understanding potential clients’ specific wants and preferences allows you to personalize your services, courses, and offerings to meet their expectations. This understanding aids in the development of a daycare facility that appeals to parents looking for dependable and high-quality care for their children.

What should I include in my daycare and preschool business plan’s financial projections?

The information provided by DaycareBusinessBoss.com (“The Site”) is for general informational purposes only. All information on the Site is provided in good faith, however, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site. Under no circumstance shall we have any liability to you for any loss or damage of any kind incurred as a result of the use of the Site or Reliance on any information provided on the Site. Your use of the Site and your reliance on any information on the Site is solely at your own risk.

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Preschool Business Plan Sample

Published Oct.11, 2013

Updated Apr.23, 2024

By: Jakub Babkins

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Table of Content

Do you want to start a Preschool business plan?

Are you thinking of drafting a business plan for a preschool? If you want to know how to write a business plan for a preschool, you can refer to business plans like the one presented here.

Starting a new business can be hard, especially in the education sector but it can also be very rewarding. So, if you want to know how to develop a business plan for angel investors that will get them excited and interested in your business, then start by following this document. 

Here, we will be presenting a preschool business plan with a focus on tutoring business ideas .

Executive Summary

2.1 what is the business.

This document contains the sample business plan for preschool that will be called LearnALot. LearnALot will be a preschool/ daycare center operated and managed by Theodore Krasinski. It will offer parents a chance to make their kids have fun in a safe environment. Besides, the kids will also be taught the basics.

2.2 Management of Preschool

Starting a preschool business plan can be hard. But the process to plan and manage the business becomes easier if you split it into smaller and more manageable parts. If you want to make a business plan for a preschool center , the first thing you need to do is to draft everything. 

In this business plan for a preschool pdf, we will plan out all the necessary details of LearnALot one by one. If you want to write a business plan for preschool, you can follow the guide. You can also hire business planning services to get a professional business plan written for your startup.

2.3 Customers of Preschool

The customers of LearnALot will belong to all kinds of family backgrounds. Due to our daycare services, parents or families with small or special needs children will make a major customer group.

• Working Parents
• Single Parents
• Concerned Parents
• Families with special needs kids

2.4 Business Target

The target of LearnALot is to become a reliable daycare and educational center for the residents in Florida. We aim to cater to healthy and normal children as well as those with special needs. 

The financial targets that LearnALot wants to achieve within the first three years of operation are demonstrated below:

Company Summary

3.1 company owner.

Theodore Krasinski will be the owner and manager of LearnALot. Theo got his master’s in education three years ago after which he served as a teacher for two years and as a principal in the third year. However, he always felt a need to do more so he decided to open a special preschool himself. 

3.2 Company History

Theo noticed that though public schools were trying their best, they didn’t focus on acquiring the tools to cater to children of different needs. There was also a lack of preschools and daycares in the surrounding. To eradicate this issue, Theo decided to open a preschool that would prepare students of all kinds to keep up when they got into school. 

3.3 How the Preschool will be started

Step1: Evaluate Goals

Starting up a preschool business or any business in that domain requires a lot more than money. Before you start a business, you need to be sure about the goal you want to achieve via it. The goal can be scaling up the business, earning profits or increasing the well-being of the community, or anything else. But there needs to be a solid goal to direct your operations.

In this open driving school business plan , we will list the SMART business goals adopted by LearnALot.

Step2: Plan the Business

Once you are sure about the goals of your business, you can start developing a business plan template for preschool. If you are not sure how to develop a business plan, you can take help from preschool business plan examples like this one to learn how to write a business plan for a preschool. 

Step3: Plan Structure and Logistics

Now that you know the base details of the business, you will be able to sort out the finances. This will include estimating the costs that will be involved in starting the business. 

Step4: Get Funding

Any business needs money to start and function before it can become self-sustaining. To get the initial funding for LearnALot, Theo decided to write up a strong business plan that would wow the investors. 

Step5: Find a Physical Space

Every business, big or small, needs space to function. Therefore, to start a preschool, you will need a building to set up everything. Theo decided to rent out a building with some space in the front so that he could develop an outdoor play area as well. 

Step6: Promote and Market

The final step of the business is to develop a marketing plan to promote the business both in the online and physical realm. Theo will hire a marketing plan specialist to develop a marketing plan that can be easily followed to bring more customers to the business.

All business plans including business plans for preschools include details of what services or products the business will provide. Deciding these things ahead of time allows you to develop a preschool business proposal more efficiently. 

A preschool business plan like an e-learning business plan will help you map your business in detail. That will, in turn, allow you to manage it in a better way and gain more funding. 

In the case of this preschool business plan template, Theo decided to include all the major services that he will offer to the customers through his business. 

• Day Care Services

The primary service provided by LearnALot will be daycare. The business will offer daycare services for all types of parents. This will include parents who just want to drop their kids temporarily for a few hours while they get done with their day-to-day tasks. The other option will be for parents who want to entrust their kids regularly as they are off to work. 

• Special Education Services

LearnALot will also cater to families and parents who have special needs children. This can include children who need help with physical activities or children, who, perhaps have a different way and speed of learning. 

As Theo wants to offer a one-place-for-everything business, there will also be some learning activities for the kids to learn as they play. Parents will have the choice of opting their kids out of these activities. However, Theo will try to encourage parents to allow their children, a free environment so they can adjust better when they get into school later. 

• Transportation

LearnALot is primarily a business for children with parents who are busy working for a living. So keeping their busy routines in mind, the business will also offer ‘pick and drop’ services to facilitate such parents. 

Marketing Analysis of Preschool

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

Even though opening a preschool business may look like an easy task, it can be very taxing if not planned properly. To start any business, even a preschool business, you need to thoroughly research the market and understand it. 

The best way you can learn about your target market is to do market analysis as a part of your business plan for preschool center. The marketing will help you understand the past, present, and future conditions of the market, what the gaps are, and where you can fit in. 

If you are thinking of running a preschool business, you will need to learn all about your target market. This will include both your customers and competitors. Learning these things will help you develop a preschool marketing plan targeting your customers. You will not only be able to attract customers in a better way but will also be able to find ways to stand out among others. 

If you want to develop a preschool business plan sample and you don’t possess enough knowledge, you can follow this sample preschool business plan for LearnALot. 

5.1 Market Trends

Daycare and Preschool services are booming services in the US. According to IBISWorld, daycare centers have a market share of around $54 Billion. And according to Bplans, 84% of startups in daycare services succeed enough to make a good profit within the first year. Therefore, opening a business in this domain is very rewarding. 

5.2 Marketing Segmentation

The customers of LearnALot will belong to the following groups:

Business plan for investors

5.2.1 working parents.

Our main customers will be working parents living in and around Florida. These parents usually have eight-hour jobs that keep them busy. Therefore, they are expected to utilize our services most often. We will offer them a place where they can leave their children without any worry. At us, they will have a space where their kids can play and learn new things and skills. 

5.2.2 Single Parents

Our second target customer will be the single parents who need as much help as they can get. Single parents usually have to manage everything on their own. Therefore, a service of this sort will be of great help to them. By entrusting their kids to us, they will be able to do daily chores and relax for a while. 

5.2.3 Concerned Parents

A lot of parents usually get concerned that their children are not learning as fast as they could. For these parents, our educational services will be the most attractive. We will offer learning sessions in several niches so that parents can choose what they want their kids to learn. 

5.2.4 Families with Special Care Kids

Lastly, LearnALot will cater to those children as well who don’t learn at the same pace as other students. Parents can bring their children to get assessed and our preschool will try its best to cater to the children in the most helpful way.

5.3 Business Target

The target of LearnALot is:

• To become a safe and reliable place where parents can drop off their children regularly. 
• To become the best preschool/ daycare center in Florida.
• To expand the range of services we offer.
• To earn a profit margin of $10k/month after the first two years to sustain the business.

5.4 Product Pricing

Our prices for specialized cleaning are a little higher than those of our competitors. However, our other offerings are available to our customers in a similar price range as that of our competitors.

Marketing Strategy

To develop a preschool marketing plan template that will help you succeed, you will need to develop strategies that will work for your market. A good marketing plan is a part of every business plan. Therefore, you will need it for your daycare and preschool business plan as well. In this business plan for preschool pdf, we are providing the preschool business plan sample for LearnALot. 

If you are also offering physical training and game sessions, you can also see the marketing strategy for karate center business plan .

6.1 Competitive Analysis

• We have versatile offers and services to cater to parents who want to drop off their kids for different periods. 
• Our customers can directly contact us in case they need any special services.
• We are offering pick and drop service to facilitate the parents even more.

6.2 Sales Strategy

• We will advertise through local news channels, posters, and social media posts.
• We will offer discounted rates to the first 15 customers.
• We will offer different types of affordable packages to parents so that using a preschool doesn’t break their bank.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

A business plan preschool like any other business includes the strategy to hire the employees for your business. To get an idea of how many employees you may need, you may consult a business plan for language school sample . In this preschool business plan pdf we are providing the employee list made by Theo to run the preschool.

7.1 Company Staff

• 5 Trained Teachers
• 1 Sales Executive 

7.2 Average Salary of Employees

Financial Plan

When you look at preschool business plan examples, you will notice that all of them outline their finances in one way or another. Financial information is always a part of every preschool business plan sample pdf. Accurate financial planning enables you to fund your business, and earn revenue.

Due to the immense importance of financial planning in a business, it is advisable to not experiment with developing a financial plan. Financial planning is of utmost importance and it impacts the sustainability of a business in the long term. Keeping it in mind, you should hire a professional financial planning expert for the task. Various business frims would do the task for you even online.

Below, we are providing the financial analysis for LearnALot. You can follow this template to do financial analysis for your martial arts business plan as well. 

8.1 Important Assumptions

8.2 Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

• Are preschoolers profitable?

Opening a preschool business can prove profitable if you do a financial analysis to make sure that the cash flows are managed well.

• How can I grow my preschool business?

You can grow your preschool business by reading preschool business plans for preschools that are running successfully.

• What are the steps to start a preschool?

The first step is to make starting up a preschool business plan and then deal with every aspect of your business including the finances, marketing, and services you will offer. 

• How do you write a preschool proposal?

You can write a business plan for the preschool center by following the template provided above.

Download Preschool Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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The Ultimate Guide to Launching Your Preschool Business

• December 18, 2023

Table Of Contents

Introduction

About a preschool business.

• 9 Steps to Start Your Preschool Business

Conclusion 

How to start a preschool is the most common question for former educators wanting to impact children’s lives. To some, the task can be imaginably tough. But, we have an ultimate guide to help you make it a well-planned experience you will enjoy.   

Daycare and preschool are children’s first and perhaps most important years of early education. Preschool owners specially design the curriculum to suit the needs of children between the ages of 3 and 5.  

This daycare curriculum ensures the all-round development of young children. Preschool helps children develop:

• Numeracy & literacy skills
• Confidence and initiative
• Logical thinking 
• Love for learning
• Ability to handle new experiences and situations      
• Emotional stability
• Socializing skills
• Vocal development 

Benefits of Starting a Preschool Business

A daycare preschool acts as the first introduction to learning environments and experiments. 

• Affect a change in early childhood learning and development
• Prepares children for their education future
• Exposure to learning environments
• Helps in developing character  
• Aids in improving teachers’ skills and implementing training 

9 Steps to Start Your Preschool Business 

When deciding to open a preschool, the hardest part is how to start. A preschool business differs from other businesses. They require extra planning.

Aspiring owners can use these 9 steps as the answer to how to start a preschool business with ease. 

1) Planning is the Essential First Step… If You Want Success

2) Competitor Research: Know the Market

3) Research & Identify Licensing & Legal Requirements to Start a Preschool Business

4) Find Your Dream Preschool Location

5) building, renovating & decorating preschools, 6) hiring & training teachers, 7) choosing the best preschool curriculum, 8) creating a profitable marketing plan, 9) advertising your preschool to parents, 1) planning is the essential first step… if you want success .

No one opens a business without planning. It is essentially the first step to wanting to accomplish anything. 

The planning process will provide a blueprint or roadmap you can use to arrive at your goal. Important questions to ask during planning are:

• Where will I open the daycare/preschool (at home or a larger location)?
• What is my budget?
• How many students will I be accepting? 
• What are the legal requirements to open a preschool? 
• What are the necessary first steps after the setup is ready?

Answering these questions will provide great insight into which steps to take and when.       

2) Competitor Research: understanding the Market   

Conducting competitor research is another advisable move. It provides details on how to start a preschool business. 

Take a look at the business model and infrastructure for successful preschools. 

This research can work both ways. You can pick up things that you want to add to your preschool. Or things that require improvement when adding your preschool.         

3) Research & Identify Licensing & Legal Requirements to Start a Preschool Business 

One of the key preschool opening requirements is licensing and permit. Without these, your preschool could be at legal risk.

In India, the legalities and licensing before starting a preschool differ from state to state. That said, prospective preschool owners must research this based on their state, before they start a preschool. 

A preschool doesn’t just require licences. It also requires permits and certifications to ensure proper health, sanitation and safety measures. 

You may have a certain location where you have always dreamt of opening a preschool. But, this won’t be a feasible idea.

Preschools need to be strategically placed to suit the following requirements:

• Accessibility
• Convenience to parents
• Health and hygiene 
• Features large enough premises 

If you are opening a preschool at home you won’t have to worry about building and exterior design.  

But if building or renovating a building for a preschool you must ensure the preschool location should be child-centric and feature a good layout.           

When it comes to interior designing, the furniture must be suitable and comfortable for children. Hygiene facilities are also a must and adapted to suit children. Outdoor play areas should be safe and not cause injuries. 

Overall, interiors should feature colourful and playful paintings and decorations. This age-appropriate decor will prove to be an atmosphere that invites learning. 

Preschool teachers will form the base of every preschool. Hiring the right teachers is important. A good preschool teacher requires patience, empathy, creativity, and skilful teaching methods.

Good characteristics and teacher training programs will ensure effective curriculum implementation. Preschool owners should provide ongoing teacher development efforts to ensure effective teaching.     

After all, teachers’ skills dictate the effectiveness of teaching and the quality of education.  

The preschool curriculum should be such that it adds value to the children and helps them grow. As a preschool owner, you have the opportunity to help children learn and them as a person. 

Choosing the best curriculum requires owners to match the needs of the children with the teaching skills of teachers. This makes the curriculum the most effective and successful. 

After assessing the budget, prospective preschool owners have the task of calculating how to break even. To open a preschool business that thrives, fees have to be attractive and offer great value to the child. 

Carefully assess and create a cost structure that will be worthwhile, helping you break even and eventually become profitable..   

You won’t have a full preschool unless you invest your time in marketing.. Advertising will work to spread awareness about your preschool. 

You can support advertising efforts by introducing new opening discounts and specials to boost admissions. Apart from this newspaper advertising and fliers are other options to get the word out. 

Note that you would want to start advertising before the preschool is officially ready. This is to ensure a full class is ready before opening.                                

You can easily start a preschool business with the above 9 steps. Education enthusiasts no longer have to worry about how to start a preschool business . Planning and research form the foundation of starting a preschool. When you cover this, everything else falls into place.       

Q 1)How can I grow my preschool business? 

Ans) A few ways to grow a preschool business are by marketing aggressively, circulating fliers, using social media, organizing an open house, and collaborating. 

Q 2)Does the future look bright for preschool businesses?

Ans) With parents becoming increasingly aware of the benefits of early childhood education, preschools are gaining relevance. So, yes a daycare preschool business does have a bright future.                  

• May 21, 2024

10 Proven Methods of Increasing Preschool Admissions in 2024

• May 13, 2024

Improve Your Teaching With Innovative Preschool Curriculum Strategies for 2024

• May 7, 2024

Theory to Practical: Implementing STEM in Preschool Classrooms

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How to Start a Daycare: A 10-Step Guide

The hardest part of starting a daycare center is knowing where to start. LegalZoom tells you how to turn your wish into a reality.

Ready to start your business? Plans start at $0 + filing fees.

by   Swara Ahluwalia

Swara has over six years of writing experience in the software, manufacturing, and small business segments. When she ...

Read more...

Updated on: August 29, 2024 · 12 min read

Is now the time to start a daycare?

How to open a daycare in 10 steps, how to get started with your new business.

Despite the rise of remote work, the demand for daycare services is at an all-time high. According to Grand View Research, a leading research publication, the U.S. child care industry stood at $63 billion as of 2023, and the market is expected to grow by another 5.86% through 2030. 

For an entrepreneur looking to start a small business in child care, these numbers certainly exhibit opportunities for success and profit. But where does one begin? 

Let LegalZoom help. Learn how to start the daycare center of your dreams.

We’d say yes! This year and the coming years are poised to be lucrative times to step into the child care market. Trends driving this surge in demand include:

• Parents returning to the office
• High demand for women-led industries , like health care and educational services
• Increasing number of parents pursuing higher education and specialized training 
• More women pursuing entrepreneurship
• Increased awareness about early childhood education 
• More homes where both parents are working

From a business standpoint, a child care business presents ongoing demand and exciting prospects. Here are some numbers to back that up.

• Approximately 62% of U.S. children population are in some form of child care
• Profit margins are a respectable 10%-15% 
• Start-up costs range from $10,000-$50,000
• Recovering economy is poised to give parents more disposable income
• More grant options for child care businesses from organizations like First Children’s and WomensNet

Excited about working with children and running your own business? The pathway to success begins with market research. 

Step 1: Research your market

The child care business has stiff competition, and to be successful, you need to know what you’re up against and what you need to do.

Here are a few steps that help you dig deep and assess whether a child care center is a viable business idea.

• Analyze demand. Study your area's demographics, like parental income, families with kids, and population trends, to identify if there’s a demand for your business. The U.S. Census is a good starting point for this information. 
• Finalize age group. Daycare centers cover a spectrum of age groups, each with its benefits and challenges. It’s important to understand which group you wish to serve. In addition, assess your skill set—are you better with babies or more comfortable dealing with toddlers or older?
• Study the competition. Look at local child care centers and learn their set up, target market, pricing strategy, and what they bring to the table. You can even examine their cost structure—what the salaries and rent expenditures are, and how much the supplies and materials cost?   
• Identify market gaps. Ask yourself, “What can you do to differentiate yourself?” and “What are the pain points of the parents?” 
• Understand state guidelines. While a bachelor's degree in education is not mandatory for running a daycare, the job involves working with a vulnerable age group and some teaching and training. Many states require daycare business owners to have some minimum qualification, like a GED, an associate degree in childhood education, or a child development associate certification. If you're missing this, get started as you build your center. Your state’s office of  Child Care Services or Health and Human Services can give you all the details about the training, experience, and credentials you need to legally operate a child care center.

Step 2: Find a location

Many people have successful child care centers operating from their homes or basements when state law permits. If you plan to go that route, ensure you have a safe and sufficient place in your house that doesn’t disturb your own children or family members' daily routines. 

If you need to look externally, run an online search and contact local recreational clubs, gyms, churches, and other small businesses. Often, they will have an underutilized space they can rent out at an affordable price. 

Location parameters to keep in mind while you go space hunting include: 

• Accessibility
• Scalability

After you have narrowed down location options, check with your local zoning, fire, homeowner association, and health department for compliance requirements.

Step 3: Make a daycare business plan

Having an idea isn’t enough; to operate a successful daycare center you need a well-thought-out business plan that includes everything from competitor analysis to financial statements, marketing strategy, and details about managing conflicts.

Your business plan should detail the following: 

• Your business entity structure. A small business owner can opt between a sole proprietorship, limited liability company, or S corporation. Your chosen structure will influence your tax filings, bookkeeping, administrative duties, and daily operations. LegalZoom can help you  select and form a registered business entity that aligns with your business goals.
• Business proposition. What service does your daycare provide—full-day, half-day, or an after-school program? Will the daycare follow a certain learning philosophy like Waldorf or Montessori? Will extra services like reading classes or tutoring be offered? Write out your mission statement and short and long-term goals . 
• Pricing strategy. How will you charge parents? Will discounts be offered for those who sign up long-term? Your market research will help you set a pricing plan. 
• Operating plan. How will the day-to-day run? What processes will help you manage the place? Will you be hiring staff, or will your daycare be a one-person show? 
• Business expenses and financial projections. Include accurate start-up costs and expense estimates alongside income projections. Do you have enough savings to cover the startup costs ? If not, how will you secure funds? Be realistic about when you expect to start making money and leave some buffer for future and unexpected expenses. Getting into the financial nitty-gritty will give you a framework to operate.
• Marketing strategy. How will you reach your target audience? Will you rely on social media or a door-to-door campaign? Also, consider local partnerships (schools and businesses) you can establish to bring in clients.

The more planning and prep work done upfront, the higher the chances of success. SCORE offers a  business plan template that can ensure a strong start off the blocks.

Step 4: Get your licenses and permits 

Securing the right licenses, permits, and certifications is one of the most important aspects of starting any business. These licenses and certifications protect your business from unfavorable conditions and often inform your customers about your commitment to safety.

Licenses and permits that you may require are: 

• Family child care home license
• Commercial group child care license
• General business license
• Building permit 
• Fire permit
• Health-related permit 

Most permits and licensing requirements are regulated by the state government. Also, the licenses and permits required depend on the size of the daycare and whether you are operating from your home or a commercial place. LegalZoom’s Business Licenses service can help identify and meet your licensing requirements.

Step 5: Secure funding

The financial aspect of your child care center business might not be as fun as selecting a name or designing the space. Still, it’s a catalyst that gets you one step closer to becoming a successful entrepreneur. 

Can’t bootstrap your way into business and require external financial assistance? Don't panic, here are a few  alternative sources of money that you can look at: 

• Small Business Administration (SBA) microloans. These loans, typically between $500 to $10,000, are mainly geared towards startups. They are given to women, minorities, and those operating in low-income areas.
• Online business loans. Online loans are an alternate means of getting capital that doesn’t have the same barriers as traditional business loans, like stronger credit scores or years of establishment. They also tend to provide quicker access to capital but with higher interest rates.
• Private and government grants. An attractive source of funding because you don’t have to pay back the amount. Grants are generally offered by the government, private foundations, or corporations. Check out your state’s Child Care and Development Fund Administrators and grant marketplaces like OpenGrant and GrantWatch to see if you qualify for any. 
• Business credit cards. A cost-effective, fast, and short-term way to cover your startup costs even if you don’t have the best credit rating. The advantage of a business credit card is it can actually help you build credit while keeping your personal and business expenses separate. These cards can also link directly to a business bank account.
• Crowdfunding. A popular and inexpensive way to raise funds without any obligation to pay back the debt. Crowdfunding allows small business owners to reach a wider pool of investors through an online portal. Popular crowdfunding sites include Fundable, Kickstarter, and Indiegogo. 

Step 6: Design your daycare center

This is the best part! Proper design and layout of your daycare can be instrumental in fostering a nurturing environment where kids can thrive and grow. The challenge you might face is designing an aesthetically pleasing and functional that abides by the required safety regulations. You can hire an interior designer or get ideas from Pinterest to overcome this hurdle.

While designing, factor in the following: 

• Designated areas for learning, napping, and eating
• Child safety locks and gates for stairs, storage, and equipment
• Open floor space that allows for movement
• Cleaning and sanitizing of all equipment and surfaces
• Security measures like CCTV cameras, smoke detectors, and fire extinguishers

Running a daycare center requires massive investment in supplies and equipment—from tables and chairs, disinfectants, wipes, and books to toys and bibs and various art materials. You can search online marketplaces to find preloved materials at a bargain or explore suppliers like Discount School Supply and Lakeshore Learning. 

Step 7: Hire qualified staff (if required)

The need to hire staff depends on your state of residence as well as the age and number of children in your daycare. For example, in New York State, a child care center must have one adult for every six children under the age of six. 

Your state’s Office of Child and Family Services or licensing agency can inform you of the required staff-to-children ratio and the necessary qualifications and experience for hired staff.

There are still more things you have to complete after you have identified the number of people you need: 

• Run necessary background checks , including criminal background checks and references.
• Sign contractor or full-time employment agreements to protect your business from fraudulent claims and ensure there are no discrepancies about roles, responsibilities, and pay. 
• Create detailed job descriptions so everyone knows what they have to do. 
• Train staff on child development, early learning frameworks, emergency preparedness, and basic health and safety measures like CPR and first aid. 

An employment attorney can steer you away from legal issues and ensure you’re following your state’s employment laws and mandates while hiring and managing your staff. 

Step 8: Create a business handbook

This business handbook is the master blueprint your daycare runs on. If you have any doubts or confusion about how to deal with the families or your staff, the handbook should have the answers. 

For families, the handbook should cover crucial logistical information, such as:

• Enrollment procedures
• Tuition fees and payment procedures
• Description of curriculum and activities
• Field trip process
• Health and safety measures
• Sick kid protocol
• Communication policy
• Discipline code 
• Pick-up and drop process
• Food and nutrition (if you are providing meals)

For your staff, the employment handbook should include:

• Pay and benefits
• Personal leave policy
• Child care guidelines
• Hiring and termination procedures
• Disaster and emergency plans
• Performance evaluation process
• Hygiene and cleanliness protocols 

Step 9: Market your daycare

You can have the best daycare in the area, but nobody will know about it if you don’t market it. And by marketing, we don’t just mean a few flyers or social media posts; an entire strategy has to be set that addresses the question, “Why should families choose you?” 

To start, pick a creative name for your daycare and design a logo. You can collaborate with a graphic designer or utilize online design tools like Canva and Snappa. Getting a trademark can protect your business from potential copycats.

In today’s world, an online presence is a must. Develop a business website and social media presence. You don’t need to be active on all channels—just the ones that resonate with your target audience. 

Pro tip: Get a website domain name and social media handle that matches your business name. It will create brand consistency and make it easier for parents to find you. 

A free and powerful marketing tool is to set up a Google Business Profile. Collaborate with local businesses, like libraries, gyms, restaurants, and grocery stores, to advertise your business. Also, getting featured in a local newspaper or hosting an open house or free parenting class can also go a long way. 

Step 10: Stage your grand opening

This is premiere night, and you should put on a show to get people through the door. You’ve one shot to make a positive impression, so give this your all. 

A popular and effective way of getting people through the door is to host an opening with engaging activities that speak to your target group. Consider offering:

• Scavenger hunts
• Art and craft sessions
• Reading time

This allows you to showcase your skills while potential clients get first-hand experience of what it would be like for their child. To boost brand recall, make sure every person who attends leaves with a memorable freebie with your daycare’s name and logo, such as tote bags, stationery items, or even a T-shirt. 

Pro tip: You can further encourage attendees to submit enrollment forms by offering a special discount, such as waived registration fees or a significant discount. 

Starting a business is challenging, but it’s also the most rewarding and fulfilling experience. We understand that the start-up to-do list may seem endless, but remember, you don’t have to do it all on your own. 

We can turn your passion for transforming future generations into a thriving business with our Business Formation services. With the right information and resources for every big or small question, our start-up experts will smoothen your entrepreneurship journey.

Can I run a child care center from my home?

You might be able to, but it’s best to check with your local licensing authority about the number of kids you can care for and the space requirements for a home-based daycare. 

How much does a daycare owner make? 

It’s difficult to pinpoint an exact figure because it depends on the number of kids enrolled, operational costs, location, and competition. If you are in an area with multiple other family child care providers, you will have to keep your rates competitive. 

What insurance do I need for my daycare? 

Daycare centers typically require property, workers' compensation, professional, and general liability insurance coverage. An insurance broker can help you pick the right policies for your business.

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Mayor Adams unveils $100M plan to make child care more affordable across NYC

NEW YORK - With school just around the corner, NYC Mayor Eric Adams and the city council announced a high-quality plan to make child care more affordable across all five boroughs.

"All families deserve to live in a city with a safe, nurturing, and affordable place to leave their children, while being given the opportunity to pursue their dreams," Mayor Adams said.

A $100 million has been invested for early childhood education, early childhood education programming for children ages zero to five, and preschool special education.

Since the budget was announced and approved two months ago, New York City Public Schools added over 1,500 new 3-K seats in high-demand areas for the 2024-2025 school year.

Mayor Adams said that the number of 3-K seats has tripled in recent years. However, some parents are saying this plan isn't as good as it sounds.

"We started off with 94%. 94% never done before. We're now at 100%," Adams said.

Since May 2024, they have reduced waitlists and provided first-round offers to 100% of families who applied before the deadline for mid-August.

How are parents reacting?

"My reaction is it's not true," Rebecca Bailin of New Yorkers United for Child Care said.

New Yorkers United for Child Care is an organization that includes thousands of parents.

"The city keeps saying parents who applied on time got a seat. A: No they didn't. Every parent applied on time. It's the city that didn't get back to them on time," Bailin said.

Bailin said that some people received free 3-K seats that are far from home.

"We have people in Manhattan who got seats in the Bronx," Bailin said. "We heard from one family in Queens who got a seat in the Bronx."

About the education plan

The Adams administration and the city council are aiming to strengthen the city's early childhood education system, improve resource allocation, and better connect families with available seats.

"Our plan focuses on better allocating resources to meet needs, conducting robust family outreach, supporting providers, and expanding access for students with disabilities, as well as undocumented families," Mayor Adams said. "Every day, we will continue to build a city focused on supporting working-class people, that is safer, more prosperous, more affordable, and, most importantly, that invests in our children."

The plan focuses on:

Increasing 3-K access for families this school year

Expanding family outreach strategy

Increasing preschool special education classrooms

Free extended hours of early childhood education for children and their families

Expanding support for undocumented children through Promise NYC

Funding the mayor's office of child care and early education

Providing more support for child care and early childhood education providers and programs

Establishing the "Child Care Advisory Group"

Convening bi-weekly meetings between the Adams administration and the City Council

Ensuring that city agencies have the staff and resources to support the infrastructure of the city's early childhood education system

The first day of school for NYC students is Sept. 5. To access the 2024-2025 school calendar, click here .

National child-care plan has cut costs, created tens of thousands of new spaces, repot says

The federal government’s national child-care plan has significantly cut costs across the country and created tens of thousands of new spaces, but there are still only enough spots for fewer than a third of children and much of that added capacity is from for-profit operators, according to a new report from a non-profit research group.

The Childcare Resource and Research Unit released a report this week that assesses the federal Early Learning and Child Care program as of 2023. Ottawa launched the $27-billion program in 2021 with a goal of bringing day care costs to $10 per day.

However, the program has seen mixed success across the country and has faced criticism for a slow and uneven rollout that has been hampered by a shortage of available spaces. The federal government has also clashed with provincial governments, notably Alberta and Ontario, over the role of private, for-profit operators.

Ottawa set a target of reducing fees by 50 per cent by the end of 2022 and an average cost of $10 per day by 2026. Last year, the government established a $625-million fund to help provinces and territories create child-care spaces in communities that currently do not have enough.

Martha Friendly, executive director of the research unit, said the full impact of this funding has not yet been felt. She said while the federal daycare program has cut fees dramatically in most provinces and created additional spaces, she was critical of the expansion of for-profit child care.

“There has been expansion and we need more expansion that is equitably distributed,” Ms. Friendly said.

The group’s report says there were about 635,000 regulated full-day child-care spaces for children 0 to 5 years old across Canada as of 2023, an increase of about 45,000 since 2021. Those figures do not include part-time spaces, before- and after-school spaces and other types of services such as in-home care.

The largest percentage change among the provinces was in Alberta, where there were 10,593, an increase of 16 per cent in two years, followed by Nova Scotia, which had 1,689 new spaces, a change of about 15 per cent. The lowest was in PEI, which had just 132 new spaces, or 0.3 per cent, followed by Newfoundland at 694 new spaces, an increase of 1.5 per cent.

The report says there are enough spaces for 31 per cent of children across the country, up from 28 per cent in 2021.

Genevieve Lemaire, press secretary to the federal Minister of Families, Children and Social Development, Jenna Sudds, said while building this kind of system “does not happen overnight,” the report shows that the country’s investments and vision is working.

Ms. Lemaire said the Minister is committed to working with the provinces and territories to reach the target of an average of $10 per day by 2026. “We welcome the report and look forward to exploring its findings,” she said.

The Childcare Resource and Research Unit points to an increase in for-profit centres, which account for 40 per cent of the growth across the country.

Alberta has the highest proportion of for-profit centres. The report says for-profit providers account for 75 per cent of the province’s full-day centre spaces for children up to the age of five. Two-thirds of new spaces were for-profit, the report says.

Alberta has previously clashed with the federal government over the role of for-profit providers and how much profit they can earn while still qualifying for public funding. The province and Ottawa signed an agreement last year allowing providers to generate a “reasonable profit” but also requiring that surplus earnings be directed toward improving child-care services.

Matt Jones, Alberta’s Minister of Jobs, Economy and Trade in Alberta, said in an e-mailed statement that the province has reduced fees for parents to an average of $15 per day in the past 12 months. He added that since November, 2021, Alberta has increased the number of regulated spaces for children from the age of zero to kindergarten by 25,000.

“Our government remains committed to safe, high quality, affordable and inclusive child care that empowers parents to pursue their careers, training and post-secondary opportunities that help drive Alberta’s economy forward,” Mr. Jones said.

In an e-mail to The Globe, Esme Mills, spokeswoman for British Columbia’s Ministry of Education and Child Care, said the province has funded the creation of more than 39,000 new child care spaces with more to come, including spaces on school grounds, and has eliminated waiting-list fees and increased wages for early childhood educators.

“While we know cutting the cost of child care in half is helping families, we know families still need more support with the cost of child care,” Ms. Mills said.

Ontario has also pushed back at the federal government’s preference for non-profit providers. The two governments announced a deal last month to cap fees at $22 per day and allow for-profit providers to earn a profit of eight per cent.

Edyta McKay, spokesperson for the Minister of Education in Ontario, said in a statement that the federal government must provide more funding and lift the cap on for-profit providers.

Krystal Churcher, chair for the Association of Alberta Childcare Entrepreneurs, said she believes there needs to be less government involvement in child care. Ms. Churcher, who has owned and operated her own child-care centres for over a decade, said the $10-a-day program doesn’t represent the needs of families across the provinces and fails to respect the work of private child-care spaces like hers across the country that have been depended on by families and governments for decades.

“It cuts them right out and just disregards that investment, and it’s really forcing a one-size-fits-all,” Ms. Churcher said.

She said while she appreciates the data in the Childcare Resource and Research Unit’s report and has relied on the group’s statistics in the past, she doesn’t think it accurately presents all experiences in child care.

“There’s very little representation of our perspective of working in child care,” she said, adding there is a lot of debate about non-profit versus for-profit child care and which is better. Regardless of business model, she said all child care follows the same standards and regulations for quality, safety and health.

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Over 5,000 Child Care Spaces to be Allocated Across Saskatchewan

Released on August 29, 2024

Today, the Government of Canada and Saskatchewan announced an investment of $71.3 million to allocate more than 5,000 child care centre spaces across the province throughout 2024-25.

To date, 1,537 of these child care centre spaces have been allocated to new child care facilities or added into existing facilities in 27 Saskatchewan communities and 36 organizations. The other 3,463 spaces will be allocated throughout the remainder of the fiscal year.

"This investment will create more opportunities for families to find accessible and high-quality child care in their local communities," Education Minister Jeremy Cockrill said. "Expanding child care facilities throughout the province will be an addition to supporting the wellbeing for Saskatchewan families."

"More than 5,000 child care spots will make a real difference for families across Saskatchewan," Canada's Minister of Families, Children and Social Development, Jenna Sudds said. "This is an important step that will ensure more kids can get off waitlists and into high-quality centres, and provide more families with access to affordable early learning and child care in their communities."

Funding for the creation of regulated child care spaces will be allocated by the province on an on-going basis throughout the year to not-for-profit organizations including cooperatives, municipalities, non-profit corporations and parent groups. The spaces will be approved based on community need and each organization's readiness to move into the development stage. 

To respond to the needs of the sector and to help address the costs of establishing child care spaces, space development capital funding for centre development is further increasing from $10,000 per space to $13,360 in 2024-25. The funding has increased by $10,000 since 2017. Funding for start-up grants for regulated centres is also increasing from $861 per space to $1,360 in 2024-25. Additionally, the start-up grant for regulated family child care homes will also increase by $200.

Communities, organizations, and individuals who are interested in learning more about how to support children and families by establishing child care spaces are encouraged to visit: https://www.saskatchewan.ca/business/entrepreneurs-start-or-exit-a-business/start-a-business/managing-a-child-care-business . 

This investment was made possible by the Canada-Saskatchewan Canada-Wide Early Learning and Child Care Agreement and the Canada-Saskatchewan ELCC Infrastructure Fund Amendment. The Canada-Saskatchewan Canada-Wide Early Learning and Child Care Agreement was signed in August 2021. Since signing the agreement, over 11,000 new child care spaces have been opened or are in the process of being created, an increase of 63 per cent. 

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