Education

Starting A Daycare Center Business – Private Child Care Facility

We Care For DayCare

In today’s world, many parents work outside the home. At some point, their young children will require childcare. In North America, at least 25% of children under the age of 5 attend an organized part-time daycare center or a 24-hour daycare; the remainder is cared for by other family members, live-in nannies, babysitters, and neighbors. However, having friends and family members look after your children is unreliable, so parents continually search for childcare solutions and people to look after their young ones. Hence, there is a tremendous opportunity for those who love children and do not mind looking after them to create a business doing just that. Setting up a daycare business is not only financially rewarding, but it can be quite personally gratifying.

Kids Daycare Demand?

To be successful in your daycare business, you first need to know if your community has a demand. If there are not so many children where you live, then the chances are that you will not have too many clients. And most parents are not willing to travel too far away for a daycare. To know if there is a demand, speak to your neighbors with children and how they manage them while at work. Also, do an online search for daycare centers in your area. If there are many facilities, you know that there must be children in the community.

This online search will also tell you how many daycare centers operate in your local community and help you identify your competition.

Daycare Center Startup

People enter the daycare business for a variety of reasons, including the following:

Some people who enter the daycare business do it because they want to help out families with children.
Others do it because the industry is lucrative.
Others enter the daycare business because they are tired of their 9-5 jobs with no independence.
Others have children, so opening a daycare will ensure that their children are well cared for.
It may open up more academic opportunities or a position in a government branch dedicated to child welfare and education.
Whatever the reason, opening a daycare requires long-term commitment and dedication. Many obstacles along the way include regularly dealing with difficult children and demanding parents.

Here are a few online resources for gaining childcare qualifications

Create A Policy And Procedure Manual

It is vital to create a handbook that details your daycare’s policies and procedures. It would help if you gave this handbook to all of your staff and parents. The guide should detail the following:

Emergency plan in case of a fire, injury, outbreak
Safety procedures in place
All privacy protocols
Rules for employees
Parental responsibilities
Reveal all licensing requirements
Compliance with various local, state, and federal laws

This handbook can protect you in case of litigation.

Create A Child Care Center Contract

As a daycare business owner, having a contract between you and your clients is highly recommended. Before enrolling any child in the daycare, go over the agreement with the parents so that no legal hassles arise. Have a lawyer read over the contract to make sure it is correct. The contract should clearly state the following:

How and when do you expect to be paid?
When are the drop-off and pick-up times?
What are the penalties, if any, for late payments
What are the consequences when parents are late picking up the child?
What services will you provide?
What will be your policy when a child is sick at the daycare?
Will you offer refunds, and under what conditions?
What will happen in the case of an accident at the daycare?
What are your fees?

Try out some of these “free” contract template websites

Create A Daycare Business Plan

Opening and running a daycare center or a private daycare in the US is governed by many regulations you’ll need to follow. For those who have decided to set up a daycare, read on for some great practical tips.

Having a Daycare business plan is essential because it will help you set the business goals, outline your services, and organize the business. The business plan will also help track your business finances. The plan should contain the following:

What should I name my Daycare business?
Will I run the daycare from home?
How many children will I accept?
What will I charge for my services?
What are the startup costs for a daycare business?
Do I need a license to run a daycare business?
How many employees will I hire?

Here are a few law firms specializing in daycare issues

Here are a few daycare business plan examples

Some business plan templates that you should consider include:

If you have not made a business plan before, here are some websites that can help.

BizPlanBuilder: The most user-friendly
Business Plan Quick Builder (has many accessories)
Business Sorter: Best for internal plans
Entrepreneur Business Ideas – Tools & Tutorials (comprehensive)
GoSmallBiz.com: Most extra features
LivePlan: Best overall
Wise Business Plans: Best professional service

Daycare Facility Insurance

When running a daycare, it is vital to obtain several insurance types to protect the business and children—typical insurance policies, including coverage for the property, liability, business insurance, and worker’s compensation.

Here is a list of some standard insurance companies

Best Places To Get Small Business Insurance

What Are The Startup Costs To Open A Daycare?

The startup costs depend on where you decide to open your daycare. If it is your home, the cost is minuscule, but if you need to lease a separate facility, you’ll have to consider rent, utilities, etc. For home startups, the costs are usually less than $10K.

If you need to rent a facility, your investment may vary from $30K- to $50K. However, the good thing is that because there is a severe shortage of daycare facilities, many loans and grants are available for people who want to set up a daycare. Many large businesses now offer to fund people who wish to start a daycare in their neighborhood.

Here are a few of your funding options

Small Business Administration

The Sma ll Business Administration, SBA has a program to fund new startups, and is worth a look.

Daycare Licensing Requirements

To operate a full daycare, you must have the required license. To know more about your state’s licensing requirements, you need to contact the Dept of Children and Family Services. The permit has several conditions, including:

A current CPR certificate
Clean driving record
A satisfactory background check
Some states will require prior education in childhood development
A degree or a diploma in childhood education may also be required
It is necessary to have your location inspected for fire and safety

You can take many online childhood education classes to meet local licensing requirements. These classes will provide you with essential knowledge of childhood development and care.

Safety First

The number one priority for most parents is the children’s safety. Thus, you should safety-proof the facility and minimize the risk of injuries. It would be best if you were prepared for any medical emergency. Regularly conduct fire and medical drills and ensure that the staff knows what protocols to follow.

Get Feedback From Your Clients

One way to succeed in the daycare business is to get feedback from parents and staff. Correct all negative features and always offer the best quality daycare services

My Daycare Location?

If the home is not a solution to run the daycare, other options include:

Chuch
Local business
Recreational centers
Schools

All the above facilities will allow a daycare to operate for a small monthly fee. Once you find the place you like, you need to check with the city’s zoning laws and licensing guidelines if you are legally able to run a daycare within these premises. Ensure the location is easily accessible and safe for children. Finally, consider what the parent may be looking for in a daycare.

Here are a few handy links for finding a location for your daycare

Where Should I Open Up My Daycare?

Your home is the best option when first starting out. Your residence is the most affordable option, and you will quickly comprehend if you have chosen the right business. There are small business grants for people who want to open a daycare in the home. Besides, you will also be eligible for tax deductions. Once you start to become recognized and get more referrals, you can think about other options.

Qualified Child Care Employees

When operating a daycare, the selection of the right employees is critical. You need to interview each candidate and determine their education, skills, and experience.

All candidates should undergo a background check.
The potential employee should provide you with references whom you must call.
The hiring decision should factor in the safety of the children and the daycare’s reputation.

Staffing agencies that you may want to use:

How Should I Market My Daycare Business?

Create a webpage
Distribute flyers in the community, businesses, schools, recreation centers, and cafes
Place ads in the local paper
Become part of the local community activities and make yourself known
Leave your business cards with social workers, nurses, and other healthcare professionals
Participate and promote your daycare on social media platforms

Here are a few daycare marketing ideas

Daycare Marketing Checklist
Full-Service Marketing
Digital Marketing Services
Local Child Care Marketing
Tilted Chair

Daycare Enrollment Fees

An integral part of your business plan is figuring out how much you want to charge. The location also has a role to play in the amount you charge. Another major factor to consider is how you’ll receive payment. There are various payment options; you have to pick one suitable for you and convenient for your parents. Examples are;

Cash.
Checks.
Online transfers.
Credit and debit card payments
Whichever you decide, remember to set deadlines for payment and penalties for the defaulters.

Communicate With The Parent

One of the best ways to maintain a harmonious relationship with the parent is communication. Make it a point to let the parent know how the child’s doing in the daycare. Have the staff complete a day sheet you can email to the parent. Also, develop a newsletter you can send to the parents regularly.

Many daycare apps allow you to interact with the parent, send reminder notes, or relay any emergency communication. Most parents appreciate it when they are regularly informed about their child’s progress in daycare.

Daycare Supplies

Here are some daycare supply companies

Here’s a list of items you might consider

Outdoor and indoor playing equipment
Art Supplies
Toys
Furniture- cots, chairs, tables, cribs, playpens
Cleaning supplies
Napkins
Diapers, wipes
Moisturizers
Computer
Security cameras
Smoke and fire detectors
Foods- meals, snacks. milk
Cups, plates, utensils, bottles
Pacifier
Blankets
Bibs
Fire extinguisher
First aid kit
Bathroom supplies
Sanitizers
High chairs
Nap mats
Daycare software and apps that allow parents to interact with their child
Billing system
Phone

Conclusion

Starting a daycare business is challenging, but it can be financially and mentally rewarding if you persist. The key is always to seek ways to improve the business and ensure that your children’s welfare is the highest priority.