How to Start a Daycare Business: A Basic Guide

Are you interested in starting your own daycare business? There are 3.89 million daycare centers in the United States, but that doesn’t mean you can’t create one that stands out from the competition.

You can combine your passion for children with your entrepreneurial spirit to create a successful business. Before you can make your daycare a reality, you need a plan for how to do it.

Read on to learn how to start a daycare business that thrives!

Daycare License Requirements

Like starting a business in other industries, opening a daycare requires certain licensing requirements. These will vary based on the city and state where your daycare business is located.

Research the law in your jurisdiction to learn what you need to abide by local rules and regulations. This will help you avoid fines or bad publicity when you start serving customers.

Prepare a Business Plan

A business plan is like a roadmap for how your daycare will function as a sustainable company. Before you prepare a business plan, you must focus on what your daycare will do better and different from your competition.

Besides the day-to-day operations, you must also consider the fixed and variable costs you will incur to run the business. Your daycare cash flow will have a big impact on how you can expand as your business grows.

You can learn a lot about daycares using web resources like

Pick a Location

Some of the best business advice to follow is that the location of your daycare center matters. Much like real estate, don’t build your center or rent space in a bad location.

You’ll want to think about your target market and where they live. If you were a prospective customer for your business, would it be convenient to visit your location? How will the daily lives of parents work with visiting your location?

The answers to questions like these will help you pick a location that works best for your customers and their children.

Hire Great People

The people you hire to work at your daycare business are a reflection of you and your company. Find great people who share your passion for kids and taking care of their needs.

Your daycare company can set itself apart from others in the area by having a truly caring staff that puts parents and their children first. Take all the time you need during the interview process to find the best people to fill roles in your center.

How to Start a Daycare Business

Learning how to start a daycare business will help you avoid making mistakes that can cost you time and money. Like any other business, if you don’t spend time learning about the dos and don’ts in your industry, you are bound to repeat the mistakes of others.

Check out our blog section for other great posts with tips and tricks to help you promote your new business!