Are you ready to start your dream daycare business? Congratulations! In the following article, we cover the most important steps you will need to take in order to launch your childcare business. There may be challenges ahead, but careful planning and preparation will set you up for success. This guide is a great place to begin.
How Do I Know I Am Ready to Start My Childcare Business?
Great question! As with all new endeavors in life, you can never be one hundred percent ready for a new business venture, but we encourage you to use the following questions to help you assess whether starting your childcare business at this time is right for you:
• Do you have significant childcare work experience?
• What is your educational background? Do you have formal training or a degree in Early Childhood Education or a similar child development program?
• What is your motivation for starting a childcare business? Do you love children enough to work with other people’s children day in and day out, riding out challenges and meeting the demands of childcare work and business ownership?
• Are you in a financially, mentally/emotionally, logistically stable place in life? Are you reasonably healthy? A new business venture is an exciting, but taxing, opportunity.
• Is there a need in your community for your daycare business? The need for childcare services is on the rise, but is this need already being met by existing daycare businesses in your area? You will want to find out.
Once you are certain you want to move forward with launching your own childcare business, here are some essential first steps you will need to take.
Research State and Local License Requirements
Construct a Business Plan
If you decide to apply for a small business loan to open your childcare business, you will need to put together a comprehensive business plan for your new daycare. Even if you don’t pursue funding from a lender, a business plan is a must. Your business plan will help you create a comprehensive picture of your daycare business. It will help you answer essential questions about your business:
• Will you run your daycare business out of your home?
• Will you lease or buy space?
• Will you purchase an existing daycare?
• Will you work by yourself or will you hire employees?
• What will your budget look like?
• How many children do you plan to enroll?
• How will you market your business?
• How will your business meet the needs of families in your community?
• Who is your target market?
• Who are your competitors?
• How will you use loan funds?
• What start-up costs do you anticipate?
If creating a business plan sounds intimidating, be encouraged. The more thought you invest in developing a sound business plan, the better prepared you will be to face the realities of starting your daycare business. If you have a well-developed plan to follow, you will be more likely to succeed in your childcare business venture. This step is crucial.
Obtain Insurance
Develop Policies and Procedures
Work out all the fine details concerning the policies and procedures you want in place before you open your daycare doors to clients. There are a variety of daycare policy templates online to help you with this step. You will want to carefully write out everything from your safety, medical, and emergency procedures, to your health, nutrition, and daily care policies, to your payment and attendance policies, plus all other protocols you, your staff, and your clients will adhere to when your business launches. Your state and local daycare licensing requirements will be a helpful guide as you develop your policies and procedures.
Get Your Daycare Facility Ready
Hire Staff and Choose Curriculum
Market Your Daycare Business