daycare business plan template canada

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.

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Home > Business Plan Templates > Daycare Center Business Plan Template With Examples

Daycare Center Business Plan Template With Examples

Apr 14, 2024 | Business Plan Templates

This template is designed to be flexible. Feel free to modify it to suit your daycare centre’s unique characteristics and needs. Remember, a compelling and well-structured business plan is critical to attracting potential customers and investors, securing funding, guiding your business’s operations, and tracking its progress.

Starting and running a daycare centre requires a perfect blend of a passion for child care, business acumen, and robust teamwork. This business plan serves as a roadmap in this journey, helping you make informed decisions and drive success.

Table of Contents

1. Executive Summary

This section provides an all-encompassing overview of your daycare centre. Although listed first, writing this part last may be most helpful to ensure every vital detail from your daycare business plan is included.

Introduction

Begin by introducing your daycare centre, including its name and core mission. This information should be presented compellingly and engagingly.

Example: Little Starts Daycare is a childcare centre dedicated to providing a safe, fun, and nurturing environment where children can learn, grow, and explore.

Center Overview

Provide an overview of your daycare centre, including the type of services offered and any major initiatives you’ve undertaken or plan to take.

Example: Little Stars Daycare is a licensed childcare provider offering full-time and part-time care for children ages 2 to 5 and after-school services for children up to 12.

Mission and Vision Statement

Define your daycare’s mission and vision statement. This income statement will communicate your daycare’s purpose and strategic objectives and share the commitment to child care and their holistic development.

Example: Our Mission is to provide children with a safe, stimulating, and caring environment. Our Vision is to nurture young minds in their early years by providing a firm foundation for lifelong learning.

Geographic Reach and Accessibility

Explain where your daycare is located, noting the communities you serve and your location’s convenience.

Example: Located in the heart of Springfield, our daycare is conveniently accessible for families in the central city and nearby neighbourhoods.

Program Type

Describe the programs your daycare offers, whether you cater to toddlers, preschool students, or after-school care, providing details.

Example: Our centre provides preschool education with a structured curriculum, toddler programs with an emphasis on social interaction and primary learning, and after-school programs to assist with homework and provide extracurricular activities.

Key Goals and Objectives

Clearly specify what you intend to achieve in the short and long term. Ensure these goals are SMART—Specific, Measurable, Achievable, Realistic, and Time-bound.

Example: Our short-term goal is to increase our enrolment by 30% in the upcoming year without compromising the quality of our service. In the long term, we aim to establish an exemplary reputation in the area that may allow us to expand to multiple locations.

2. Daycare Services Offered

This section details your daycare centre’s specific services, objectives, and impact on the children and families served.

Service Definition and Themes

Describe the services your daycare provides in detail. Discuss underlying principles or themes guiding your programs and the kind of expertise involved in delivering them.

Example: At Little Stars Daycare, we provide three main services: Toddler Care, Preschool Program, and After-School Service. Each service is designed with a specific age group in mind and tailored to meet their intellectual, physical, and emotional developmental milestones.

Range of Services

Detail the various services you offer under each program in your daycare centre. Highlight significant elements of these services that set your childcare centre apart.

Example: Our Toddler Care program includes interactive playtime, basic etiquette training, and early learning activities. The Preschool program preps children for school with a curriculum focused on cognitive and emotional development. Our After School services provide a safe environment with homework assistance and extracurricular activities.

Beneficiary Profile

Explain who benefits from your daycare services, how they are selected, and why they are the focus of your efforts. This should be detailed, and your target audience and market should be clearly understood.

Example: Our beneficiaries are primarily families with working parents who need reliable, quality care for their children during workdays. We cater to children ranging from toddlers and preschoolers to school-aged kids needing after-school care. Our services are crucial for working families seeking a safe, nurturing environment that fosters their children’s development.

3. Background and Ownership

This portion presents an insight into the establishment background of your daycare centre and its administrative structure.

Legal Status and Organisational Structure

Specify your daycare centre’s legal status. Is it a Sole Proprietorship , a Partnership , a Limited Liability Company (LLC), or a Corporation? Why was this structure chosen?

Example: Little Stars Daycare operates as an LLC due to the liability protection it provides. In this setup, the owner’s personal assets are protected in case of any legal claims.

Board of Directors or Management Team

Briefly introduce your management team, highlighting their backgrounds and roles in the daycare centre. Mention their key contributions to the daycare.

Example: Our management team consists of the owner-director, Mrs Johnson, a former elementary school teacher; our operations manager, Mr Green, who has a background in child psychology; and Mrs Smith, our curriculum coordinator, who holds a degree in early childhood education.

Established Milestones

Exhibit significant milestones in your daycare centre’s history to demonstrate its progress and growth over time.

Example: Little Stars Daycare, established in 2015, started as a small in-home service. Due to growth, we moved to a larger, dedicated facility in 2017. In 2019, we expanded our services to offer after-school programs and currently serve 50 families in the Springfield area.

4. Business Model

This portion management team section outlines how your daycare centre operates and generates income to maintain its functions and services.

Primary Revenue Channels

Discuss your daycare’s central sources of income. This could entail the fees charged for different programs, early drop-off/late pickup surcharges, or any additional services offered.

Example: Our main revenue sources are the weekly fees charged for toddler care, preschool, and after-school sessions. Supplemental income is also generated from optional services like early drop-off, late pickup, and special weekend care services.

Potential Collaborations/ Partnerships

Detail any potential collaborations or partnerships. These could involve other businesses, schools, government institutions, etc.

Example: We are considering partnerships with local schools to offer seamless after-school services. Additionally, we are exploring opportunities to collaborate with nearby businesses to provide daycare discounts for their employees.

Special Programs or Services

If any special programs or initiatives are planned for the future that may bring substantial funds or support to the daycare, mention them.

Example: We are planning to introduce a “Summer Camp” service during school holidays that promotes learning through fun activities. This provides a solution for parents during the break and generates additional revenue for our centre.

5. Market Analysis

This section offers insights into your daycare’s market environment, customer demographics, and your centre’s competitive positioning.

Current Demand

Explain the current demand for daycare services in your area. Use any relevant data, statistics, or examples to support your point.

Example: According to recent data, there are approximately 4,000 children under the age of six in our target area, with 70% of both parents working full-time. This strong demand for daycare services indicates a promising market for Little Stars Daycare.

Customer Demographic Analysis

Detail the demographic information of the families you intend to serve, including their geographical location, socioeconomic status, or other relevant characteristics.

Example: Our primary customers are dual-income families within a 5-mile radius of our facility. Most of these families fall into the middle to upper-income brackets and value high-quality childcare and educational opportunities for their children.

Competitive Landscape and Unique Selling Proposition

Identify other daycare centres or similar service providers in the area and analyse their pricing strategies and features. Highlight what differentiates your daycare centre.

Example: Although there are two other daycare centres in our vicinity, Little Stars is the only one to offer extended hours, catering specifically to working parents with schedules outside the typical 9 to 5. Additionally, our preschool program emphasises developmental learning, unlike the play-based focus of our competitors.

Market Strategic Positioning

Describe how your own daycare industry is positioned concerning the current market demand, customer demographics, and competition. Discuss your plans to deliver your services in a way that meets your customers’ needs and stands out from competitors.

Example: Little Stars is positioned as a high-quality, convenient solution for working families in need of childcare services. Our strategy involves providing academically focused, individualised programs coupled with flexible hours to meet the unique needs of working parents.

6. Public Relations and Marketing Strategy

This section outlines how you plan to increase awareness about your daycare centre and attract families to your service.

Public Relations Approach

Describe your business concept and strategy to achieve visibility and positive recognition in the community.

Example: Our PR strategy involves regular community events like fun fairs, open days, and reading clubs. We also plan to issue press releases announcing milestones or new services in our centre and seek coverage in local news outlets or parent groups.

Marketing Plan

Outline your marketing strategy, including traditional and online channels — and any unique campaigns or promotions you plan to run.

Example: Our marketing strategy consists of the distribution of brochures in local businesses and schools, online advertising on parenting blogs and forums, social media campaigns around enrolment periods, and maintaining a well-optimised website detailing our services.

Community Engagement & Volunteer Programs

Discuss how you plan to engage the community in your daycare’s activities. This could involve organising community events, parent evenings, or volunteer opportunities.

Example: We plan to actively involve the community with events like an annual Family Day Picnic, parenting workshops, and volunteer opportunities within the centre. This strategy serves to strengthen our relationship with the community and increases visibility for our daycare.

7. Operations

This section provides an overview of your daycare’s business plan, outlining daily operational practices, staff recruitment, technology needs, and facility requirements.

Staff Recruitment and Roles

Discuss your approach to staffing your daycare. This includes the necessary roles, the experience or qualifications required, and your future hiring plans.

Example: We plan to staff our daycare with certified childcare professionals for roles like Lead Daycare Teacher, Assistant Teacher, and Cook. We intend to hire additional staff as our enrolment increases. All teaching staff are required to have an associate degree in early childhood education or a related field.

Management Roles

Detail the management roles in your daycare centre, the responsibilities, and the skills required for these roles.

Example: Our management team comprises the daycare centre director, who oversees the overall operations; an office manager, who oversees administrative duties; and a program coordinator, who plans and reviews all daycare activities.

Technology Requirements

Discuss the type of technology your daycare centre uses or needs. This could include scheduling software, communication tools, or child progress-tracking applications.

Example: We use childcare management software for seamless scheduling, billing, and parent communications. We also use a separate application for tracking child progress and activities, accessible to both staff and parents.

Facility Requirements

Specify any facility needs you have. This might include a dedicated daycare building, a playground, classrooms, a kitchen, etc.

Example: Our daycare currently operates from a dedicated centre equipped with well-furnished classrooms, a play area, a dining area, and a kitchen. With our projected growth, we anticipate needing additional classroom space and possibly expanding our outdoor play area within the coming years.

8. Marketing and Communications Strategy

This section discusses how your daycare centre plans to market its services to prospective parents and maintain open and consistent communication with current clients.

Marketing and Community Outreach

Describe your plans to increase your daycare centre’s visibility within your community and potential clients.

Example: We plan to increase our daycare’s exposure by participating in local community events and establishing partnerships with local schools and businesses. We also intend to launch promotional campaigns during key enrollment periods to attract new families.

Online Presence

Discuss your daycare’s online presence. This can include your website, any social media platforms you use, and how you utilise these channels.

Example: We maintain an interactive and informative website detailing our services, staff, and enrolment processes. In addition to our website, we regularly update our social media platforms, uploading images of daily activities and upcoming events at our centre.

Customer Engagement

Explain how you plan to engage with the families of children in your care. This can include parent-teacher meetings, newsletters, social events, and more.

Example: We engage with parents through regular parent-teacher meetings, a monthly email newsletter, and inviting families to participate in our community events like the annual Family Day Picnic. Establishing strong relationships with our parents is integral to our daycare’s strategy.

9. Financial Plan

This section offers a detailed look at your daycare’s financial circumstances and plans, showcasing how funds will be sourced and used.

Startup Budget or Current Annual Budget

Provide an overview of your expected budget, detailing both income and expenses.

Example: Our annual budget for this year is $300,000, with the majority of funds allocated towards staff salaries, facility maintenance, activities, and supplies. The remnant is allocated for marketing, administration, and unexpected expenses.

Proposed Financial Projections

Discuss your predicted financial situation. These should include expected income from fees, any grants or loans, and how you plan to allocate these resources.

Example: We expect our primary income to come from our own childcare business plan, with fees accounting for 90% of our revenues. We also aim to secure a grant for educational toys and supplies, making up the remaining 10%. Our largest expenditure is staff salaries, followed by facilities costs and supplies.

Key Financial Assumptions and Explanations

Clarify any assumptions made about financial statements in your financial plan and explain why these assumptions have been made.

Example: We assume a 10% increase in enrollment for the upcoming year, which we believe is a conservative estimate based on current trends and inquiries. We also expect a steady increase in operation costs due to inflation and potential expansion plans.

10. Appendices

This section includes supplementary documents or materials that support the details of your business plan.

Organisational Chart

Include a visual layout of your daycare’s structure, representing the roles and departments within your organisation.

Example: Our daycare’s organisational chart clearly differentiates among management, full-time staff, part-time staff, and volunteer roles to give a comprehensive understanding of our organisational structure.

Resumes of Key Staff Members

Attach resumes or create a brief biodata of central team members to offer insights into their skills, expertise, and experience relevant to the daycare environment.

Example: We’ve included the resume of our Daycare Center Director, who has a Master’s Degree in Early Childhood Education and over ten years of experience in daycare management. This demonstrates her ability to administer our programs effectively.

Detailed Budget

Include a copy here if your financial plan refers to an intricate budget.

Example: We’ve attached a detailed breakdown of our annual budget, reflecting our conscious and effective allocation of resources that ensure the smooth running of our daycare centre and prioritise the quality of child care and education.

Related Market Research

Incorporate any market analysis or research that testifies to the need for your daycare centre’s services.

Example: We’ve incorporated a recent demographic study on our target area, indicating the high number of families requiring reliable daycare services, reinforcing the demand for our centre.

What are the Factors to Consider When Starting a Daycare?

When starting a daycare, there are several critical factors you need to consider:

1. Location: Your daycare should be located in a safe, clean and accessible area that is convenient for parents to drop off and pick up their children.

2. Safety: It’s crucial to ensure your daycare facility complies with all safety guidelines and health regulations and has appropriate safety measures in place to prevent accidents.

3. Licence and Certification: Procure all necessary licences and certifications to operate a daycare centre legally in your region.

4. Qualified Staff: The quality of your staff significantly impacts the quality of your daycare. Recruit staff with appropriate qualifications, experience, and a genuine passion for the childcare industry.

5. Affordable Rates: Your service rates should be competitive, offering good value for your clients while ensuring your business is financially viable.

6. Age-appropriate Programs : It is critical to offer programs that are tailored to different age groups and address their specific developmental needs.

7. Capacity: Check the restrictions on the number of children you can have in your care at any given time in accordance with local regulations.

8. Insurance: Having sufficient insurance is paramount to protect your business from liability claims.

What Elements Make Up a Quality Daycare?

Creating a quality daycare goes beyond meeting minimum state licensing requirements. Here are some elements that contribute to a top-tier daycare:

1. Positive Environment: Your daycare should have a welcoming, warm, and stimulating setting that promotes children’s creativity, learning, and comfort.

2. Well-trained Staff: In addition to having the required qualifications and training, staff should exhibit patience, caring, and passion when dealing with children.

3. Child-Friendly Facilities and Equipment: Adequate, safe, and age-appropriate facilities and equipment aid children’s learning and development.

4. Low Child-Staff Ratio: This ensures each child gets the necessary attention and supervision, thus contributing to more personalised care.

5. Structured Activities: A well-planned curriculum that balances educational, creative, and recreational elements supports child development.

6. Healthy Food and Snacks: Offering nutritious meals fosters the physical health and well-being of the children.

7. Parental Involvement: Maintain active communication with parents and caregivers, keeping them updated on their child’s progress and involving them in the centre’s activities.

8. Security Measures: Implementing rigorous measures such as secure entrances, visitor policies, and child pickup procedures ensures children’s safety.

By following this daycare business plan template above, you’ll be well on your way to setting up a profitable daycare that provides top-quality care for children. Thorough research, careful planning, and attention to detail are the keys to a successful child care business.

Wrapping Up Our Daycare Centre Business Plan Template

In conclusion, this business plan template provides a comprehensive framework to guide you in crafting a business plan for a daycare centre. It covers essential areas like executive summary, services offered, business model, market and industry analysis, financial plans, and more.

By following the structure and accompanying examples, you will understand your own daycare business’s unique selling proposition, target market, and competition and define its goals, strategic positioning, and plans for growth and sustainability.

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Daycare Business Plan Template [Updated 2024]

Daycare Business Plan Template

If you want to start your own daycare business or expand your current daycare center, you need a business plan.

The following daycare business plan template gives you the key elements to include in a winning childcare business plan. In addition to this template, conducting research will not only support your business concept, but help you better understand the daycare industry, pricing strategies and your target market. It will also help you craft a smart marketing plan and strong financial projections.

You can download our Daycare business plan template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of a sample daycare business plan:

I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

Click below to see each section of our free child care business plan template. You can also click here to get our sample daycare business plan pdf .

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Daycare Business Plan Outline

Daycare Business Plan Template (How-To Guide and Examples)

Launching a successful daycare center requires thorough planning and preparation. This comprehensive guide provides a daycare business plan template alongside real examples, financial forecasts, marketing tips, and expert advice to get your startup on the path to prosperity.

Why a Detailed Business Plan Matters

Creating a comprehensive business plan is important because it forces you to:

• Validate demand for a new daycare in your area
• Calculate startup and operating costs accurately
• Research nearby competitors and define your differentiation
• Create financial statements projecting profitability
• Outline your curriculum, safety protocols, and care philosophy
• Define your target customer demographics and enrollment process
• Identify potential issues early so you can address them
• Align on direction with your partners or investors

Proper planning prevents major issues down the road. Our template simplifies the process.

Daycare Business Plan Template

Use this daycare business plan outline as a guide when writing your plan:

Executive Summary

• Explain your daycare’s purpose, curriculum, and competitive advantage

Company Overview

• Founders’ bios, credentials, and experience
• Daycare’s legal structure
• Ages accepted and student-to-teacher ratios per group
• Sample daily schedules and curriculum by age
• Extracurriculars, field trips, and special programs

Market Analysis

• Local area demographics, family households with kids
• Competitor daycares—pricing, offerings, examples

Marketing Plan

• Branding, logo, slogan, website, advertising channels
• Partnerships, networking, community event outreach
• Licensing requirements in your state
• Staffing needs and hiring plan
• Location options and facility layout
• Startup equipment, supplies, safety compliance

Financial Plan

• Startup costs (licensing, renovations, supplies)
• 3 year profit/loss forecast
• Break-even analysis
• Funding sources and allocation

Now let’s explore real examples for each section using successful daycares’ plans as illustrations.

Executive Summary Example

Happy Feet Daycare provides full-time care and education for children 6 months to 6 years in Powell, Ohio. Operating out of a newly renovated 6,000 square foot facility, Happy Feet offers immersive programs facilitating social, cognitive, and motor development through play-based learning. Our lower teacher-to-student ratios ensure safety and attentiveness.

Company Overview Example

Sunshine Daycare LLC is a new daycare founded by Amanda Bell, an educator with seven years experience teaching elementary grades. Amanda holds a BS in Childhood Education and an MS in Early Childhood Development. The daycare is structured as an LLC with Amanda as the sole member. She oversees all curriculum design, teacher hiring and training, and daily operations.

Services Offered Example

The Little Sprouts Daycare Center provides full-day programs for children ages 3 months to 5 years including:

• Infant Care (3-18 months): Sensory activities, tummy time, manipulatives. 5:1 student-teacher ratio.
• Toddler Care (18-36 months): Arts & crafts, music, dramatic play. 4:1 student-teacher ratio.
• Preschool (3-5 years): Hands-on STEM projects, nature walks, imaginary play. 8:1 student-teacher ratio.

All groups enjoy music, Spanish exposure, outdoor play. Field trips, holiday events, and summer programs provide enrichment.

Target Market Example

ABC Daycare targets children of parents aged 28-45 in the River North neighborhood. Specifically we will cater to:

• Young professionals who recently moved into the area and had children. River North has added 500+ new family housing units in the past 2 years.
• Dual income middle-upper class couples needing high-quality infant and toddler care while working demanding jobs.
• Technology company employees wanting an educational curriculum incorporating STEM and smart devices. Several large tech firms have offices within one mile.

We intimately understand the needs of local families based on the area’s demographics and household profiles.

Marketing Plan Example

To promote ABC Daycare, we will leverage several tactics:

• distributing printed brochures to local OBGYN clinics, pediatricians, and preschools
• hosting community open house events prior to launch
• purchasing targeted Facebook ads focused on area parents
• participating in family festivals, farmers markets, and local events
• designing an engaging website outlining curriculum and programs
• partnering with select companies to offer subsidized care for employees
• pursuing earned media coverage like press releases announcing our opening

This omni-channel strategy will build local family awareness of our offerings, experience, and value differentiation.

Financial Projections Example

• Enrollment - 55 students
• Avg Monthly Tuition per Student - $650
• Annual Revenue - $429,000
• Rent - $24,000
• Payroll - $125,000
• Supplies - $8,500
• Marketing - $3,000
• Insurance - $12,000
• Other expenses - $14,500
• Net Profit - $242,000
• Enrollment - 70 students
• Net Profit - $312,500
• Enrollment - 90 students
• Net Profit - $402,000

These forecasts are based on capturing 4% of our target demographic's families based on current area birth rates.

Use this template to create income statements projecting the financial performance of your own daycare based on local market data.

Bring Your Daycare Vision to Life

Opening a thriving daycare takes research, planning, and dedication. Our template guides you through key steps.

Take time to thoroughly plan your programs, research competitors, create marketing plans, set enrollment goals, and model cash flows.

Your business plan gives investors confidence and keeps your daycare on track for the long-haul. Now build your dream of enriching your community’s youth with this strategic blueprint for lasting success!

• Center Owner
• Center Director
• Other Childcare Professional

Emily Adams

March 24, 2023

8 minute read

6 Steps to Start Your Own Childcare Business in Canada

Starting a childcare business in Canada can be a rewarding and fulfilling experience, but it requires careful planning and preparation. As a childcare business owner, you will play a critical role in the early childhood education and development of children in your community.  In this article, we will guide you through the process of starting your own childcare business in Canada, from developing your business plan to obtaining the necessary licenses and certifications.

Table of Contents

Introduction, conduct market research, define your services and target market, determine your business structure and funding, register your business name and obtain a business number, obtain childcare licensing and accreditation, register for gst/hst and payroll taxes, choose a location and ensure it meets licensing requirements, purchase or lease equipment and supplies, design a child-friendly environment, determine staffing needs and job descriptions, develop employee policies and procedures, ensure compliance with employment standards and health and safety regulations, step 5: use childcare management software/app to run your center effetely, 1. streamlined communication, 2. easy attendance tracking, 3. simplified billing and payments, 4. enhanced security, 5. improved record-keeping, step 6: market your business and develop client relationships, create a marketing plan, network with other childcare providers and community organizations.

• Establish Strong Relationships with Families and Children

Before we through the process of starting your own daycare, preschool, kindergarten, nursery, or childcare business whatever you call it, you need to know that starting a childcare business in Canada can be a rewarding and profitable venture for those who are passionate about early childhood education and want to make a positive difference in the lives of children and families in their communities.

A successful daycare, on the other hand, necessitates careful planning, research, and preparation. We will provide a comprehensive guide to starting your own childcare business in Canada, including the legal and regulatory requirements, the process of developing a business plan, and marketing and growth tips.

This guide will provide you with the information and resources you need to launch and grow a successful daycare in Canada, whether you're a seasoned educator looking to start your own business or an entrepreneur with a passion for childcare.

Step 1: Develop Your Business Plan

Developing a solid business plan is the first step to starting any successful business, including a childcare business. Here are the key steps to developing a childcare business plan:

Researching the local market and understanding the demand for childcare services in your area is crucial to determining the viability of your business. Identify your competitors and their strengths and weaknesses, and assess their pricing and services to help determine your own business strategy.

Determine the services you will offer, such as full-time care, part-time care, drop-in care, or after-school care. Consider your target markets, such as infants, toddlers, preschoolers, or school-aged children.

Decide on the legal structure of your business, such as a sole proprietorship, partnership, or corporation. Consider the funding required to start and maintain your business, including start-up costs, ongoing expenses, and potential sources of funding, such as loans or grants.

Step 2: Register Your Business and Obtain Licenses

Once you have developed your business plan, it is time to register your business and obtain the necessary licenses and certifications to operate legally.

Register your business name with the appropriate provincial or territorial authority and obtain a Business Number from the Canada Revenue Agency.

In Canada, childcare providers are regulated by provincial or territorial governments. To operate a daycare business, you will need to obtain a license or accreditation from your provincial or territorial government. Licensing requirements may include criminal background checks, health and safety inspections, and training in early childhood education.

You will need to register for the Goods and Services Tax/Harmonized Sales Tax (GST/HST) and payroll taxes, and ensure compliance with federal and provincial tax regulations.

Step 3: Set Up Your Physical Space

The physical environment of your childcare business is critical to the safety, health, and development of the children in your care. Here are the key steps to setting up your physical space:

Choose a location that meets your business needs and is safe and accessible for children and families. Ensure that your location meets all licensing requirements, including zoning, building codes, and fire safety regulations.

Purchase or lease age-appropriate equipment and supplies, such as toys, books, art supplies, and furniture, to create a child-friendly environment.

Design a welcoming and stimulating environment that supports the development of children. Consider the use of natural materials, soft lighting, and comfortable seating areas to create a warm and inviting space.

Step 4: Hire Staff and Develop Policies

Hiring and training the right staff is critical to the success of your childcare business. Here are the key steps to hiring staff and developing policies:

Determine the staffing needs of your business and develop job descriptions that reflect your business objectives and values.

Develop policies and procedures that reflect best practices in early childhood education and comply with employment standards and health and safety regulations.

Ensure compliance with federal and provincial employment standards, health and safety regulations, and child care licensing requirements.

Keep in mind that opening a childcare business is a thing, but  running and managing a childcare center in Canada is another. Using childcare management software/apps can be beneficial for running an early childhood education and development center. Here are some reasons why:

With childcare management software or app, you can communicate with parents, staff, and other stakeholders in a streamlined and efficient manner. This can help you save time and ensure everyone is on the same page.

Keeping track of attendance manually can be time-consuming and error-prone. A childcare management software or app can automate this process, making it easier to track attendance and generate reports.

Childcare management software or apps can also simplify billing and payment processes. Parents can make payments online, and the software automatically generates invoices and receipts.

A childcare management software or app can provide enhanced security features to protect sensitive information about children and their families. This can include secure login processes, encryption, and regular backups of data.

Childcare management software or apps can also help you keep better records of children's progress, milestones, and other important information. This can be useful for planning curriculum, tracking development, and communicating with parents.

Read more about the benefits of using Parent childcare management app

Using childcare management software or apps can help you run your early childhood education and development center more efficiently and effectively. While it may not be necessary for every center, it is certainly worth considering as a way to improve operations and enhance the quality of care provided to children.

Parent childcare app  is one of the best early childhood centers' management software in Canada. It's an all-in-one platform that streamlines and improves childcare communication and administration in a single, secure platform.  Start your 14-day trial now  and witness the power of one software solution that can manage your entire facility, or participate in our referral program and win two months complimentary subscription when they sign up!

Marketing your business and developing strong relationships with families and children is essential to building a successful childcare business. Here are the key steps to marketing your business and developing client relationships:

Develop a marketing plan that reflects your business values and objectives, and promotes your services to potential clients.

Networking with other childcare providers and community organizations can help you build relationships and referrals.

Build a Strong Online Presence

In today's digital age, having a strong online presence is essential to reaching potential clients. Create a website and social media accounts to showcase your services and connect with families.

Develop Strong Relationships with Families

Developing strong relationships with families is critical to building a successful childcare business. Foster open communication, show genuine care and concern for children and families, and be responsive to their needs and concerns.

Starting a childcare business in Canada requires careful planning and a commitment to providing quality care and education to young children. Conducting market research, obtaining necessary licenses and certifications, setting up a safe and child-friendly environment, hiring and training staff, and marketing your business are all essential steps to building a successful childcare business.

By following these steps and continuously assessing and improving your services, you can create a business that not only meets the needs of families but also contributes to the healthy development of young children.

Starting a Childcare Business in Canada FAQs

Is owning childcare profitable in canada.

Owning a daycare in Canada can be profitable, but it is dependent on a number of factors, including the location, the size of the daycare, and the demand for childcare services in the area. Before starting a daycare business, conduct market research and develop a solid business plan to ensure that it will be financially viable.

How much do childcare owners make in Canada?

Childcare owners' earnings in Canada vary greatly depending on the size and location of the daycare, the number of children enrolled, and the owner's experience and qualifications. The median hourly wage for early childhood educators in Canada is $20.00, according to the Government of Canada's Job Bank, but daycare owners can earn significantly more depending on the success of their business.

How profitable is owning a daycare?

Owning a daycare center can be lucrative, but it takes careful planning, hard work, and dedication. According to IBISWorld, the Canadian daycare industry generates approximately $9 billion in annual revenue, indicating that there is profit potential. However, success is determined by factors such as location, competition, marketing, and the ability to provide children with high-quality care and education.

How do I get a childcare license in Canada?

The process of obtaining a childcare license in Canada varies by province and territory, but it generally entails meeting certain staffing, facility, programming, and safety requirements. Because the government agency in charge of licensing daycare facilities varies by province or territory, it's critical to research the specific requirements and procedures in the area where you intend to operate your daycare. In most cases, the application process consists of submitting an application, inspecting the facility, and providing documentation such as criminal background checks and proof of training and qualifications.

Do I need a degree in early childhood education to start a childcare business in Canada?

No, a degree in early childhood education is not required to start a childcare business in Canada. However, you may need to complete training in early childhood education and obtain the necessary licenses and certifications to operate legally.

What are the typical start-up costs for a childcare business in Canada?

Start-up costs for a childcare business in Canada can vary depending on the location, size, and services offered. It is recommended to conduct market research and develop a detailed business plan to determine the specific costs associated with starting and maintaining your business.

How do I obtain a license to operate a childcare business in Canada?

Licensing requirements for childcare businesses in Canada vary by province or territory. Contact your provincial or territorial government to learn more about the licensing requirements in your area.

What is the ratio of staff to children in a licensed childcare program in Canada?

The ratio of staff to children in a licensed childcare program in Canada varies depending on the age of the children and the type of program. For example, the ratio for infants is typically one staff member for every three to four infants, while the ratio for preschool-aged children is typically one staff member for every eight to ten children.

How can I ensure the safety and well-being of the children in my care?

Ensuring the safety and well-being of the children in your care requires a commitment to following best practices in early childhood education, complying with licensing and health and safety regulations, and fostering open communication and trust with families. Continuously assessing and improving your services can help ensure that children receive the best possible care and education.

The Canada Business Network offers a guide on how to start a daycare business, which includes information on licensing requirements, developing a business plan, and finding funding. This resource can provide additional information and guidance for entrepreneurs looking to start a successful childcare business: https://www.canada.ca/en/services/business/start/daycare.html

The Childcare Resource and Research Unit is a national organization that provides research, resources, and tools for early childhood educators and childcare providers. They offer a wide range of resources, including reports, webinars, and fact sheets on topics such as program quality, curriculum development, and workforce issues. Their website is a great place to start for anyone looking to stay up-to-date on the latest trends and best practices in early childhood education: https://childcarecanada.org/

The Canadian Child Care Federation is a national organization that advocates for the rights of children and families and provides resources and support for early childhood educators and childcare providers. They offer a range of professional development opportunities, including conferences, webinars, and workshops, as well as publications and resources on topics such as curriculum planning, child development, and play-based learning. Their website is a great resource for anyone looking to connect with other professionals in the field and access high-quality training and resources: https://www.cccf-fcsge.ca/

The Government of Canada's website offers a comprehensive guide to starting a small business in Canada, which includes information on licensing and regulations, business planning, financing, and more. This resource can be helpful for entrepreneurs looking to start any type of small business, including a childcare business: https://www.canada.ca/en/services/business/start.html

• How to Start a Daycare in Ontario, Canada: https://sbs-spe.feddevontario.canada.ca/en/how-start-daycare-ontario

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Daycare Business Plan

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

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

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

Industry Overview

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

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

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

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

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What is a Daycare Business Plan?

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

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

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

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

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

Why is a Daycare Business Plan Important?

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

It gives you a sense of direction

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

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

It helps you understand your target audience better

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

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

It helps you understand your competition better

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

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

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

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

It helps you convince your investors

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

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

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

It keeps you updated with the latest business trends

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

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

What does a Daycare Business Plan Look Like?

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

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

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

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

Daycare Business Plan Outline

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

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

What to Include in Your Daycare Business Plan?

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

1. Executive Summary

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

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

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

2. Services

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

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

3. Market Analysis

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

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

4. Web Plan

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

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

5. Management and Organizational Structure

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

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

6. Financial Plan

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

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

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

Download a sample daycare business plan

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

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

The Quickest Way to turn a Business Idea into a Business Plan

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Daycare Business Plan Summary

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

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

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

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How to Make a Child Care Business Plan: A Simple Guide

Anyone with a passion for child care has the potential to start a successful daycare center . Not only will you help enrich children’s lives by providing a safe and welcoming learning environment, but you can even turn that passion into a profitable business.

Now, the idea of running your own business focused on caring for children might seem appealing, and in many ways it is, but it’s also important to understand how to do it right. From creating your business, developing a business plan, to ongoing care—there’s a lot to consider. 

The business plan you create is designed to turn unorganized and vague ideas into tangible processes and strategies that serve as the guideline needed to establish and expand your child care business.

Simply put, if you want to operate a successful daycare business, you need to start with a daycare business plan. 

So, what should you include in yours? And what does it take to create a child care center business plan? Let’s find out.

What Does a Successful Daycare Business Require?

You’re about to make dozens of decisions as you create your business plan. It’s important to understand what makes a daycare business successful to help guide these decisions. 

The three primary elements that create a successful daycare are:

• Full enrollment
• All fees are collected on time and in full
• Revenue exceeds overall costs-per-child

Daycares that manage to achieve all three elements are essentially guaranteed to operate successfully. Keep these three focuses in mind as we proceed to discuss the specific decisions that you’ll need to make.

Must-Have Elements for Your Child Care Business Plan

Successful businesses throughout all industries have taken plenty of time to create plans and strategies that help them continually reach the next level of growth. Now, it’s your turn to make the ideal business plan for daycare in your area.

Your business plan must include the following sections:

• Mission statement: Craft a compelling mission statement that encapsulates the childcare philosophy embodied by your policies and procedures. This mission statement doesn't necessarily need to be public, but it can be a great addition to sales brochures and websites.
• Licensing information and other regulations: You will likely require some form of licensing depending on where you live. There may be additional regulations, legal requirements or restrictions that you should also be aware of. Thoroughly research licensing requirements and all applicable regulations and include them in your business plan so that it’s readily available. Describe any steps that you’ll have to take to obtain licensing and meet other requirements.
• Comprehensive business description: Get specific. We know you’re starting a daycare, but have you thought about which type of daycare layout you’ll be using, which child care program type you'll be offering, or which child care software will work to manage your daily activities? Describe the specific area and demographic that you’ll be targeting, including hours of operation and other vital details. 
• Specific policies and procedures: Many businesses can delay crafting specific documents until later, but childcare needs to start by thinking about how they will be caring for children. Craft policies that dictate how children are educated, enriched, disciplined. Additionally, create billing policies that can be made abundantly clear to new parents, and definitely consider purchasing liability insurance
• Market analysis and advertising strategy: Does the area you have in mind actually need a new daycare center? Parents typically want a daycare center that’s close to their homes, so consider how many residences are nearby as compared to other existing daycare centers. Next, craft a detailed childcare marketing plan that discusses specific campaigns and mediums, including brochure design, website development, pay-per-click advertising, and social media advertising. See our blog post on tips to market your childcare business

Does all of this sound too intimidating? Don’t worry, you can handle it. Take it one step at a time, there’s no due date. We also offer childcare training courses and coaching sessions for anyone looking for added guidance with business plan creation.

Plan Ahead to Ensure Ongoing Success

A business plan allows you to think about starting a daycare in a practical and tangible way that goes beyond the excitement of running your own business centered on your passion for childcare. 

Consider creating a business plan an essential step before you proceed, since the document itself will help guide future decisions.

Are you interested in learning how to create a business plan for a childcare business? We offer childcare training through private coaching sessions and on-demand training courses for anyone looking to craft an ideal business plan.

Book a discovery call today to see how we can help you turn your passion for childcare into a profitable and sustainable business.

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How to Open a Childcare Centre

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Daycare Business Plan Template

Design a daycare business plan with venngage daycare business plan template..

• Design style modern, fun
• Colors light
• Size Letter (8.5 x 11 in)
• File type PNG, PDF, PowerPoint
• Plan premium

A daycare business plan template outlines the goals and objectives of a daycare center. It also includes information on the daycare center's management, marketing, and financial plans. A daycare business plan template often includes management, marketing, and financial plans. A daycare business plan template is aimed at new daycares, or daycares that are looking to expand their program. It's used in preparing daycare business plans for daycare funding. A daycare business plan template should also be customized depending on the requirements of the daycare center in question, along with how long they have been in business. Create a Daycare business plan infographic using Venngage’s Daycare business plan infographic template. To modify this Daycare company plan infographic, you don't need to be a designer, have design expertise, or use any design tools. To utilize this daycare business plan infographic template, click Create. You may modify anything you see in the editor, from font types, icon designs, color palettes, and content itself. First, add your content. You can stick with the template’s default font or change it in the editor's top panel. Choose fonts

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Welcome to Vaisus Business Plans

Daycare Business Plan: 10 Important Elements of a Complete Daycare Business Plan

posted on 3:18 pm

What should you include in the daycare business plan? We will look at the critical elements in the daycare plan and the importance of having one.

Why Is A Business Plan Important?

A daycare business plan is an important tool for any person starting a child care business. It enables you to manage your business in an efficient and effective manner. Additionally, it ensures sound business decision-making by the owner through encouraging strategic thinking.

Your daycare business plan is also an important communication tool for acquiring external funding from investors and banks. It helps communicate your business mission and goals to investors. It provides lenders with in-depth information about your organization gives a credible explanation of how the funds will be utilized. Business plans are usually required when applying for business loan financing from commercial banks. Having a formal plan for your daycare business takes you a step closer to successfully acquiring funding for your business.

Elements of a Complete Daycare Business Plan

Executive summary.

An executive summary provides an overview of the whole daycare business plan. It outlines the contents of the plan. It should be written last after the rest of the other sections are completed. It should not be more than one page. The aim of the summary is to save time for lenders and investors to get an idea of your business. Therefore, you should make it interesting enough for readers to motivate them to go through the rest of the plan.

The executive summary should include the following information:

• Objectives of the plan and description of the project
• Business history and nature of the operation
• Description of products and services
• Project financing
• Management and Advisors
• Risk assessment and contingency plan

Business Overview

The overview of the business involves giving a detailed description of your daycare business. Some of the information to include in the business overview is:

• Business legal name and trade name
• Nature of the business to be done
• Vision and Mission
• Core values of the business
• Business goals and objectives

Additionally, include details on your daycare concept and brand that you want to bring to market. The mission statement is a summary of what your business intends to achieve. Business goals and objectives will help you realize your mission. They can be short-term, mid-term and long term business goals that you have set for your business to accomplish.

Industry Overview

Having an in-depth understanding of the child care industry enables the business owner to know where to focus his/her efforts. Your industry overview should include a description of nature and trends in the daycare industry. Moreover, describe the main players within the industry and highlight the applicable government regulations that govern the industry. Show how the government regulations will affect your child care business.

In describing the above elements, incorporate the latest statistics that support demographic, economic, social, and cultural factors. These factors play a major role in making your daycare a success.

Market Analysis

You need to provide proof of demand for your daycare to show the viability of your business. You will want to prove that there is demand for child care services among your target market. Two major components of the market analysis are the description of the target market and competitor analysis.

In competitor analysis, identify potential competitors in the daycare industry and list down their strengths and weaknesses. From the information obtained about your competitors, explain how you will distinguish your daycare from the competition. Additionally, use the information to determine the competitive advantages that your daycare will leverage to stay in business.

When describing your target market, use demographic characteristics e.g. age, gender, and income levels to develop a buyer persona. This information can be obtained from reliable external sources such as Statistics Canada . Customer segments have unique characteristics. Make sure to go for customer segments with a higher preference for your daycare services.

Marketing Plan

A marketing plan is essential in showing your readers how you will attract and retain customers in growing the business. Detail the marketing strategies you intend to use to advertise and promote your business. Various media and non-media channels can be used to market the business. The popular media channels used in daycare advertising are traditional mass media and online/digital media. Non-media channels that can be used to advertise the business include community outreach programs. A combination of both media and non-media channels is more effective in reaching a larger audience.

Within the marketing plan, including a pricing policy and selling methods. Develop a customer relations strategy describing the actions you will undertake to give the ultimate customer experience to your customers. All these components make your marketing plan complete.

Location and Assets

A daycare business plan places emphasis on the location of your childcare business. Where possible, provide details of the exact location of your daycare. Explain why the chosen location will contribute to the success of the business. Ensure you have chosen a strategic location for your daycare since it provides easy accessibility to your premises by customers.

List down the various assets that will be needed to effectively carry out daycare business operations. Explain the plans you have in place to procure the various furniture, fixtures, and other physical assets required for a daycare business.

Operations Plan

There should be a plan in place that details the daily operations of your child care business. Operations plan documents business controls and systems of your daycare. This ensures your operations are streamlined by the start of operations.

The operations plan for your daycare should cover the following 3 main areas:

• Operations Workflow
• Business support functions

List suppliers of business assets that you intend to source furniture and fixtures for your daycare. Operations workflow describes the day-to-day activities to be performed. Business support functions such as accounting are necessary for facilitating the daily daycare operations.

Management and Human Resources

Information relating to the person in charge of carrying out childcare activities needs to be included in your daycare business plan. List the qualifications, duties, and responsibilities of the child attendants at your daycare.

Develop a Human Resource policy and procedures that include weekly operational hours, vacation programs, training and development programs, remuneration and benefits for employees, and health & safety guidelines that are to be followed at the daycare.

Financial Plan

Any business plan is not complete without a financial plan. You need to provide financial numbers that will influence lenders’ decisions to grant you funds for your business operations. These financial numbers include financial projections for a period of 3 to 5 years. Financial projections comprise estimated revenues, expenses, and profits on a monthly and yearly basis within your preferred timeframe. Moreover, include information on the daycare’s revenue model, sources, and amount of funds required to cover start-up costs.

There are 3 main financial documents that should be included in the financial plan; profit/loss statement, balance sheet, and cash flow statement. Include tables, graphs, and charts to provide a pictorial representation of your financial projections and financial documents.

This section is where you include supporting documents to your plan. These supporting documents can include the tables, graphs, and charts of your financial projections. Other supporting documents include legal documents and letters of support etc.

5 Tips for Preparing a Daycare Business Plan

Always go for a professional-looking document..

Presentation of your daycare plan is very important. Lenders go through many business plans looking for those that are well designed and easy to read. Having a professional-looking business plan document shows lenders and investors that the company’s management takes business seriously.

Go straight to the point

Your business plan should be precise. A short, well-written plan will be preferred by readers over a long one. Use easily understandable terminology that all readers will be able to comprehend.

Make your daycare business plan realistic 

When highlighting strengths and opportunities that your daycare has, also mention the weaknesses and threats it faces. Never hide the weaknesses and threats associated with the business. A good business plan should demonstrate to readers that you have an understanding of the challenges facing the business. In doing so, you should show how you intend to deal with the business challenges faced. A SWOT analysis section can be used to identify the factors affecting your daycare.

Ensure your daycare plan is funding ready

Your daycare business plan should enable investors and banks to have an understanding of the business. It should also show how you intend to utilize funds given in covering your start-up expenses and operational costs.

Seek professional help

Having professional business plan writers help you write up your daycare business plan adds value to your business. It increases your chances of securing funding from lenders. Most importantly, they ensure that all aspects of your business are covered in your business plan. This enables you to focus on other areas of the business.

At Vaisus , we are a team of professional business plan writers who prepare funding-ready daycare business plans. We have helped a number of businesses come up with custom, detailed business plans. Call us today to speak to one of our consultants.

Photo by Gautam Arora on Unsplash

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Daycare Free Business Plan Template

Our free daycare business plan template is the perfect tool to help you get started. This comprehensive guide will walk you through the process of creating a solid business plan that will set you up for success. With our customizable template, you'll be able to tailor your plan to your unique vision and goals, so you can confidently launch your daycare with the right foundation in place.

Get the free business plan template here!

Are you looking to start a daycare business but don't know where to begin? The first step is to create a comprehensive business plan that will serve as your roadmap to success. And lucky for you, we've created a free daycare business plan template that can help you do just that.

Our customizable template is easy to use and will walk you through the essential components of a daycare business plan. From outlining your company's mission and vision to identifying your target market and competitors, this template has the structure you need to create a solid foundation for your business.

One of the most important aspects of any business plan is the financial section, and this template shows what daycare financial projections should be included in your business plan.

By using our free daycare business plan template, you'll be able to present a polished and professional plan to potential investors and lenders, giving you a better chance of securing the funding you need to make your daycare dream a reality.

Whether you're an experienced entrepreneur or a first-time business owner, our template is the perfect resource to help you launch and run a successful daycare business. So why wait? Download our free template today and take the first step towards building a bright future for yourself and the children you serve.

Daycare Business Plan Outline

I. Executive Summary

• Brief overview of the daycare center and its purpose
• Description of services and target market
• Financial projections and funding requirements

II. Company Description

• Legal structure, ownership and management details
• Description of the daycare center’s history and experience
• Mission and vision statement

III. Market Analysis

• Description of the industry and market trends
• Analysis of competitors and their services
• Identification of target market and customer segments

IV. Service and Product Line

• Detailed description of daycare services offered
• Explanation of unique features and benefits
• Information on the center’s staffing and qualifications

V. Marketing and Sales Strategy

• Description of marketing and advertising plans
• Explanation of sales strategies and revenue generation methods
• Discussion of pricing strategy

VI. Operations Plan

• Description of daycare center’s location, facilities, and equipment
• Explanation of operational processes and procedures
• Discussion of safety and security measures

VII. Financial Plan

• Projections for revenue, expenses, and profits
• Breakdown of start-up costs and funding requirements
• Cash flow and income statements
• Break-even analysis

VIII. Conclusion

• Summary of key points and future plans for the daycare center
• Explanation of how the business plan will help achieve success.

Daycare Business Plan Frequently Asked Questions

Q: what is a daycare business plan.

A: A daycare business plan is a document that outlines the various aspects of a daycare business, including its mission, target market, services, operations, and finances. It serves as a roadmap for the business and helps the owner make informed decisions about the company's future.

Q: Why is a daycare business plan important?

A: A daycare business plan is important because it helps the owner identify and address potential challenges before they become major issues. It also provides a clear vision for the business and can help attract investors or secure funding.

Q: What should be included in a daycare business plan?

A: A daycare business plan should include an executive summary, company description, market analysis, service and operations plan, marketing and sales strategy, financial projections, and an appendix. It should also be customized to the specific needs and goals of the business.

Q: How do I create a daycare business plan?

A: The best way to create a daycare business plan is to use a template or guide that outlines the key components of the plan. This will help ensure that all of the necessary information is included and that the plan is professional and polished.

Q: Do I need a daycare business plan if I'm not seeking funding?

A: Yes, a daycare business plan is still important even if you're not seeking funding. It provides a clear roadmap for the business and helps the owner identify potential challenges and opportunities. It can also be used to track the business's progress over time and make informed decisions about its future.

We Know a Good Business Plan When we See One

Collectively, our team has reviewed thousands of business plans and has nearly 20 years of experience making SBA loans. We've also helped more than 50,000 businesses create financial projections across many industries and geographies.

Adam served as Executive Director for a SBA microlender in Indiana for over 10 years helping businesses and reviewing thousands of business plans.

Grace has built hundreds of custom financial models for businesses as well as our projection templates which are used by thousands of businesses every year.

Kyle served as an SBA loan officer for 7 years working directly with startups and business owners to review their business plans, projections, and prepare their loan package.

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Home Business Business Plan Daycare

Daycare Business Plan Template

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

Updated September 22, 2023 Reviewed by Brooke Davis

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

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

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

Why You Need a Business Plan for Your Daycare Business

How to write a business plan for a daycare.

• Management Team

Daycare Business Plan Sample

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

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

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

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

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

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

1. Executive Summary

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

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

This section may provide information such as:

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

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

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

2. Management Team

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

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

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

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

Your business plan should list the management teams’:

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

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

3. Products and Services

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

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

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

4. Customers and Marketing

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

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

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

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

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

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

5. SWOT Analysis

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

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

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

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

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

6. Financials

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

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

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

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

7. Operations

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

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

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

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

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

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

8. Appendix

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

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

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

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

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

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

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The document above is a sample. Please note that the language you see here may change depending on your answers to the document questionnaire.

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How to Write a Business Plan for Daycare and Preschool

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• Running a business

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

What do daycare investors want?

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

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

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

Most investors look for:

Industry background and experience

Financial performance and promise.

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

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

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

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

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

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

Writing a daycare business plan

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

Business description

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

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

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

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

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

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

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

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

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

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

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

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

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

Your business is ready!

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

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

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How to Start a Daycare in Quebec, Canada [Business Plan]

A daycare center which is also called day nursery, nursery school, or crèche (French: “crib”), is an institution that provides supervision and care for infants and young children during the daytime, particularly so that their parents can hold jobs.

Available data shows that currently, there are approximately 950 daycares called centres de la petite enfance (CPEs) in Quebec. The cities with the lowest fees for infant care in Quebec are Gatineau, Laval, Montreal, Longueuil, and Quebec City, and the median fee is the provincially-set fee of $179 CAD a month. Winnipeg is the next most affordable city with a provincially-set fee of $651 CAD a month.

Steps on How to Start a Daycare Business in Quebec, Canada

Conduct market research.

If you intend to start a daycare business in Quebec, Canada, then you must make sure you conduct thorough market research.

Your aim of conducting market research for your daycare is to get an in-depth analysis of information, generate new questions, concepts, and understanding of the market space and what you are going to be up against. With successful market research, you will be able to explore the unknown and unlock new possibilities in the industry you want to start your business.

a. Who is the Target Market for Daycare Business?

The target market of a day care is parents with children who are under 4 years.

b. Is Daycare a Profitable Business, in Quebec, Canada?

Absolutely, owning a daycare in Quebec is very profitable. As a matter of fact, owners of daycare centers profit an average of $37,000 per year. While some owners of daycare centers report earning well over $37,000 per year.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to day care services and they are;

• Daycare for children under 4 years old
• Adult day care
• Daycare for children with special needs.

d. Who are the Major Competitors?

• Centre De La Petite Enfance La Frimousse
• Garderie en Folie
• La Villa Montessori – Québec
• Centre de la Petite Enfance de la Colline
• Centre De La Petite Enfance Le Clin D’Oeil
• Petite École Abc Preschool Campus Sainte-Foy
• Quebec City English Daycare
• Garderie Diane Lacasse
• Les Explorateurs Montessori inc 1-2
• Petite École ABC Preschool Campus Lebourgneuf
• Cpe La Petite City – Installation Small Campus
• CPE Montessori De Quebec
• CPE Jardin Bleu Quebec
• Nursery Minibraves
• Nursery La Maison Des Enfants
• Centre de la petite enfance du Village Inc.
• School Montessori De La Colline
• Centre L’Univers des Amis des Saules
• Nursery Les Primevères
• Le Monde Des Frimousses.

e. Are There County or Province Regulations or Zoning Laws for Daycare Business in Quebec, Canada?

Yes. Zoning laws require day care operators in Quebec to follow specific rules and regulations, including some that apply only to home day cares. These laws are designed to address the unique circumstances of a business operating in a residential area.

Many laws seek to minimize the negative impact on the community, which can be affected by increased vehicle traffic and neighborhood noise. Other laws regulate how properties are altered, including the addition of business signage and the construction of fencing and playground equipment.

Zoning laws also provide special requirements designed to address special circumstances related to these businesses. Please note that in many communities, zoning laws require daycare providers in Quebec to apply for a permit from the city.

This application process allows the city’s zoning department to determine whether the home day care meets the zoning rules for the community. Permits also ensure that all day cares are properly licensed with the province agencies. Interestingly, you can run a home daycare out of your home in Quebec as long as your home meets the requirements for such business.

f. Is There a Franchise for Daycare Business in Quebec, Canada?

Yes, there are franchise opportunities for day care. Here are some of them;

• Little Kids Daycare Center
• Preschool Canada.

g. What Do You Need to Start a Daycare Business in Quebec, Canada?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Well-Equipped Day-Care Facility
• A Corporate Bank Account
• Supplies (Detergents, Toiletries, Disinfectant, Hand Gloves and more)
• Startup and Working Capital

Memorable Daycare Business Names for Quebec

• Saint-Hyacinthe® Day Care Center
• Granby® Day Care Center
• Sainte-Jerome® Day Care Center
• Drummondville™ Day Care Center
• Chicoutimi® Day Care Center
• Saint-Jean-sur-Richelieu® Day Care Center
• Lady Annie® Day Care Center
• Trois-Rivieres® Day Care Center
• Sherbrooke® Day Care Center
• Ronald Magdalene® Day Care Center
• Maria De La Rosa® Day Care Center
• Levis™ Day Care Center
• Saguenay™ Day Care Center
• Longueuil® Day Care Center
• Gatineau® Day Care Center
• Laval Community® Day Care Center
• Quebec City© Day Care Center
• Montreal City™ Day Care Center
• C’est Moi™ Day Care Center
• Petite École ® Day Care Center

Register Your Business

A. what type of business structure is best for day care center.

Even though there are four options when it comes to the business structure of a daycare center in Canada, the one that most players in this line of business consider is a sole proprietorship. This is because registering a sole proprietorship is easier and cheaper than registering a corporation.

Please note that all businesses in Canada must register their business names in their respective provinces or territories except for sole proprietorships that use only the owner’s legal name with no additions (except in Newfoundland and Labrador where no sole proprietorships or partnerships need to register their names).

b. Steps to Form a Business in Canada

• Choose a Name for Your Business
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Day Care?

• Child Development Associate Credential (CDA) license.
• Child Care License
• Child Care Permit.

You can contact the Canadian Child Care Federation (CCCF) to get the detailed license and permits you would require to operate your private daycare facility in Quebec. The Canadian Child Care Federation (CCCF) is a national non-profit organization whose mission is to improve the quality of child care services for Canadian children and families.

CCCF includes 16 regional affiliate organizations, independent members, and other partner organizations. The CCCF website provides a wide range of information on child care.

d. What Type of Certification is Needed to Open a Daycare?

You will need one-year ECE certificate programs of between 750 and 1,800 hours or an attestation of college studies (ACS) or a university certificate in Québec. No equivalency is granted for graduates of other early childhood programs comprising less than 750 hours of training.

e. What Documents are Needed to Open a Daycare?

These are some of the basic legal documents you are expected to have to legally run a day care in the United States of America;

• Goods and Services Tax/Harmonized Sales Tax (GST/HST)
• Council Permit
• Early Education License or Child Care License
• Business and Liability Insurance
• State Permit and Building Approval
• Business License
• Business Plan
• Insurance Policy

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a day care, usually you may not have any need to file for intellectual property protection or trademark. This is so because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start a daycare.

When it comes to starting a daycare business in Quebec, the startup costs vary. It could range from $80,000 (if you are opting for a franchise) to over $250,000. This is because the startup inventory is on the high side.

b. What are the Costs Involved in Starting a Daycare?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $3,300.
• Marketing, Branding and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $150,000.
• Other start-up expenses include, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $60,000
• start-up inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing and Equipping – $80,000
• Website: $600
• Miscellaneous: $5,000

c. What Factors Determine the Cost of Opening a Daycare?

• The choice of location
• The required licenses and permits
• The type of facility
• Additional services offerings
• The number of children they want to admit
• The cost of hiring and paying a business consultant and attorney
• The cost for branding, promotion, and marketing of the daycare business
• The cost for furnishing and equipping the daycare business
• The cost for insurance policy covers
• The cost for registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Actually, it is not compulsory to build a new facility for your day care business in Quebec, Canada, but if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a facility for your day care will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Daycare?

• Rent and lease
• Cost of stocking up supplies such as first aid medications, toiletries, disinfectants, sanitizer, hand gloves and beddings, et al
• Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees

f. What is the Average Salary of your Staff?

• Head of Day Care (President) – $45,000 Per Annum
• Day Care Administrator – $36,034 Per Annum
• Account Officer – $35,000 Per Annum
• Early Childhood Educators – $33,300 Per Annum
• Front Desk Officer – $28,000 Per Annum
• Cleaners and Nannies – $22,000 Per Annum
• Security Guard – $22,000 Per Annum

g. How Do You Get Funding to Start a Day Care?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and your friends.

Write a Business Plan

A. executive summary.

St. Granby® Day Care Center is a registered and standard for-profit day care that will be based in Granby – Quebec, Canada. Our day care center is designed to provide care and early childhood education for children between the ages of 0 to 4 years during the day. Our programs are designed to offer relief to family members and caregivers, allowing them to go to work, handle personal business, or just relax while knowing their children are well cared for and safe.

b. Products and Service

• Day care services
• Early education services
• Meal services
• Transportation services
• Play activities.

c. Mission Statement

Our mission is to build a highly successful day care center that provides community-based day care services and early childhood education for children under 4 years old.

Vision Statement

Our vision is to create an international model for the day care center industry in Quebec, Canada.

d. Goals and Objectives

The goals and objectives of a daycare center are to provide quality care and early children hood education for children under the age of 4.

e. Organizational Structure

• Head of Daycare (President)
• Daycare Administrator
• Account Officer
• Early Childhood Educators
• Front Desk Officer
• Cleaners and Nannies
• Security Guards

Marketing Plan

A. swot analysis.

The strength of the daycare facility lies in the fact that they have a team of qualified professionals including early childhood educators manning various job positions in the organization. So also, the location, the business model they will be operating on, well-equipped facility, and their excellent customer service culture will definitely count as a strong strength for the daycare facility.

The day care is a new business which is owned by an individual (family), and they may not have the financial muscle to sustain the kind of publicity that will give the business robust visibility and also to attract some of the highly experienced hands in the day care services industry in and around Quebec.

Opportunities:

The opportunities that are available to day care facilities are unlimited considering the fact that the province has loads of children under 4 years old and of course busy, working-class parents.

Just like any other business, one of the major threats that you are likely going to face is economic downturn and unfavorable government policies. It is a fact that an economic downturn affects purchasing or spending power. Another threat that may likely confront a daycare business is the arrival of a newer and bigger day-care facility in the same location where your facility is.

b. How Do Day Cares Make Money?

• Charge for enrichment programs.
• Expand “other fees” you charge.
• Limit “discounts” and “credits”.
• Consider new ways to offer specials.
• Ensure regular tuition increases.
• Take advantage of Food Program money.
• Government grants.

Please note that in general, all types of child care in Canada (except Quebec) are primarily paid for by parents, with some provinces/territories paying some direct operating costs of regulated child care (which reduces parent fees).

c. Payment Options

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

d. Sales & Advertising Strategies

• Place adverts on both print (newspapers and educational related magazines) and electronic media platforms
• Sponsor relevant community-based events/programs for kids and parents alike
• Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your facility
• Install your Bill Boards in strategic locations all around your city or state
• Distribute your fliers and handbills in target areas
• Contact households, businesses, and every parent in the neighborhood where your day care will be located informing them about your business.
• List your day care in local directories / yellow pages
• Advertise your day care on your official website and employ strategies that will help you pull traffic to the site.
• Position your Flexi Banners at strategic positions where your day care is located.
• Ensure that all your staff members wear your branded shirts and all your school buses are well branded with your company logo.

Financial Projection

A. how much should you charge for your service.

In Quebec, the cost of subsidized daycare is $8.35 a day. At a non-subsidized daycare, the daily fees can range from $35 to $60. The Quebec Ministry of Finance has a tool that will calculate the daily cost of daycare after applying provincial and federal tax benefits and deductions.

b. How Much Profit Do Day Care Business Owners Make a Year?

It depends, but the available report shows that owners of daycare centers in Quebec, Canada profit an average of $37,000 per year. While some owners of daycare centers report earning well over $37,000 per year.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the day care
• The location of the day care is covering
• The management style of the day care
• The business approach and model of the day care
• The advertising and marketing strategies adopted by the day care.
• The number of years the day care is in business

d. What is the Profit Margin of a Day Care?

Child day care businesses tend to have really high gross margins, on average around 96%. This might mean that it’s easy for business owners to scale their day care operations. Please note that some day cares operate as nonprofits hence they are not expected to make profits.

e. What is the Sales Forecast?

Below is the sales forecast for a day care. It is based on the location of the business and other factors as it relates to such startups in Quebec, Canada;

• First Fiscal Year: $240,000
• Second Fiscal Year:  $350,000
• Third Fiscal Year: $480,000

Set Up your Office

A. how do you choose a perfect location for day care.

• The demography of the location especially as it relates to young parents and children between the age of 0 to 4 years old
• The demand for day care services in the location
• The purchasing power of residents of the location
• Accessibility of the location
• The number of day cares in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What City is Best to Open a Day Care Business in Quebec, Canada?

• Montreal, Canada.
• Quebec City, Canada.
• Laval, Canada.
• Gatineau, Canada.
• Longueuil, Canada.
• Saguenay, Canada.
• Levis, Canada.
• Sherbrooke, Canada.
• Trois-Rivieres, Canada
• Saint-Jean-sur-Richelieu, Canada
• Chicoutimi, Canada
• Drummondville, Canada
• Saint-Jerome, Canada
• Granby, Canada
• Saint-Hyacinthe, Canada.

c. What Equipment is Needed to Operate a Day Care?

When starting opening a daycare, you will need early childhood educational materials, first aid kits, smoke detectors, carbon monoxide detectors, fire extinguishers, an emergency preparedness kit, and an emergency plan, among other things. In setting up a small office, you will need a computer, printer, software apps, telephones, pager, photocopier, scanner, and fax machine.

Hire Employees

As regards the number of employees that you are expected to kick start the business with, you would need to consider your finance before making the decision. When it comes to starting a standard daycare facility on a large scale, you would need the services of the following professionals; the head of daycare (you can occupy this position), day care administrator, early childhood educator, front desk officer, security guards, and cleaners and nannies.

Launch the Business Proper

In recent times, no day care opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the day care, you will be able to officially inform people in your city that your day care is open for business.

a. What Makes a Daycare Business in Quebec, Canada Successful?

• Stellar Reviews.
• A Caring, Stimulating Environment with Happy Kids.
• An Interesting and Varied Schedule or Curriculum.
• Qualified Caregivers Who Really Care.
• Safety, Safety, Safety.
• Low Child-to-Caregivers Ratio and Low Employee Turnover.
• Established Policies and Consistent Rules.
• Licensed (and Maybe Accredited)
• Disciplined and dedicated workforce
• The heart to serve
• Good facility and ambiance
• A good relationship with stakeholders
• Good care and early childhood teaching techniques and programs.

b. What Happens During a Typical Day at a Daycare Business in Quebec, Canada?

• The day care is open for the day
• The facility is cleaned and prepared to welcome the children
• Students are welcomed
• Students are provided with special care, nursing and other supervision, assistance in daily living and feeding et al
• The school is closed for the day and family members come to pick their wards

c. What Skills and Experience Do You Need to Build a Daycare Business in Quebec, Canada?

• Flexibility
• Good managerial and human development skills
• Excellent communication and negotiation skills.
• Organizational skills.
• Problem solving ability.
• Experience working as an Early Childhood Educator
• Experience in the day care industry
• Experience in day care administration.

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