Starting Your Own Daycare

Many mothers today are forced to find a job and they needed someone to leave their kids while they are at work. That is why they are seeking for daycare centers and demand for this business today is very high. If you plan to open a business, this is one opportunity you might want to consider.

The first step towards a profitable daycare center is the understanding of what makes them profitable.

Check out the regulations with local government. Most states require daycares to have a space for nap and play time. Some also requires a licensed teacher for every 15-20 children. Make sure to know the rules in your area, and your plan to meet these rules.

To start, you can operate first a small baby-sitting service with 2 to 5 kids. Even if you do have a large amount of capital to start with, it is recommended that you do start small and calculated operations on your day care center first, and then build upon your progressive successes.

Your daycare should be located on a main thoroughfare. Location is very important in a business since you want to attract potential clients without so much advertising.

Make sure to make rules for your daycare. List down all the transactions and keep the receipt. This could make your business organize and you will be able to see your progress.

Remember, a daycare’s priority is to make sure that all the children are safe and learning. In this way, you could guarantee your success in this business.

Like any other business, running a daycare facility entails costs, depending on the type of services provided. It can be as little as $500 for a home-based operation or more than $100,000 for a full-scale facility. Coming up with a budget is a must in order to assess what resources are available and determine the direction that the business is going to take. For those in the initial stages of putting up a daycare, a startup budget has to be drawn up.

Start-up costs are the expenses incurred before operations start or prior to opening. What constitutes a start-up budget? Foremost are fees for permits, insurance and equipment. Getting a permit costs just a few dollars a year while insurance premiums will depend on the size of the daycare. Equipment, which also includes furniture, certainly costs more but these are one-time purchases and can serve its purpose for a number of years. In addition, there are renovation and construction costs to meet licensing requirements and state fire and safety codes, major appliances, supplies and utility deposits for telephone, gas, water and electricity. Marketing expenses via newspaper ads and flyers should also be considered to reach out to more customers. Another essential budget item is personnel cost, including taxes, employee benefits. Auxiliary to this are the professional legal and accounting fees.

Start-up expenses for a daycare facility are proportional to its size and the range of services that it offers. Because of the numerous items to be factored into the budget, the costs can be overwhelming at the outset but could not compare to the potential earning possibilities and the reward of being able to work with children.

See: Starting Your Own Daycare