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Leader Resources » Ministry Basics » Event Ideas

Looking to Start a Church Day Care? Start Here.

Published: January 24, 2020

Meet the needs of children and their families in your community by starting a daycare in your church.

Many churches searching for the “perfect” outreach ministry may find it in the children who are sitting on their knees or snuggled in the arms of the people they want to reach. That’s because the most important decision employed parents make is choosing who will care for their children while they work.

Why should a church consider sponsoring a day care center? In their book Early Childhood Ministry and Your Church , authors Kathleen Seaton and Linda Rothaar state, “A healthy congregation is one in which there is an awareness of the real needs in the community, respect and love for all people, and a gospel-driven drive to serve others.”

Michele Marr, communications director of St. Matthews Episcopal Church in Newport Beach, California, says 12 desperate parents call every week inquiring about day care. As a result, her church is praying about and researching the possibilities of opening a facility. “With so much publicity about child abuse,” says Marr, “parents tend to prefer a church day care because it feels safer.”

What better way to meet families’ needs in your community than inviting children and families into a church-sponsored day care?

Reaching Out

Churches with day care facilities have a sense of mission. Robin Reed directs Carpenter’s Kids, a preschool for nearly 400 children under the age of 6. Her church, South Haven Baptist of Springfield, Missouri, considers its facility a ministry of the entire congregation.

“Families need to have a place where they can feel unconditional love,” she says. “They want an environment where their children’s total needs are met—spiritual, physical, emotional, and academic.”

Smaller facilities find that size does not limit their outreach to the community. Gayle Beeler, of Grace Evangelical Free Church in Longmont, Colorado, purposely involves the 30 children in her preschool in community activities. Whenever the children are out in the community, others notice that these children attend a church-sponsored day care. It’s another way to let people know about your church.

Making the Decision

Consider these issues when deciding whether a day care center is an option for your church.

What are your community’s needs?

How many facilities already exist in the area? What needs do they meet in terms of hours, ages, and philosophy? Research the information to make a sound decision. Then present your research in a congregational meeting.

Does your congregation have a sense of mission for a day care?

Beeler worked at a public facility before approaching her pastor about the possibility of opening a day care in her church. She was delighted when the congregation latched onto the vision of such an outreach.

What is the day care capacity of your building?

Classroom space doesn’t necessarily constitute a day care center. What are the licensing requirements in your particular state and community? Each state has its regulations for employee qualifications, space needed per child, insurance requirements, and more. Consider that some insurance companies require training and safeguards for sexual abuse. Call your department of social services for licensing information, and check with your local council of churches to see if there have been any difficulties with other congregations obtaining licensing.

How will the day care affect your congregation?

Will you have a separate area for the day care, or will you use Sunday school classrooms? Renting to an outside party can cause problems in sharing space, time, and materials. This is why most directors feel it’s important for a facility to be operated by the church. Cooperation is important when rooms are used for Sunday school, church clubs, and day care activities.

What ages of children will you provide care for?

Will you provide primarily infant and preschool care, or will you also have an after-school or summer program for older children? What hours will you operate? Tailor your programs for the typical working schedules and commute times in your area.

Do you have the financial resources needed to start a child care center?

You’ll need to pay salaries, purchase supplies and equipment, and cover insurance and licensing fees. Will the center make payments to the church for use of the building? Or will the church subsidize the center by not charging rent or utilities? What about providing scholarships to needy families? It might take several years for the center to establish itself financially.

Who’ll work in your program?

This is a major factor in deciding whether to open a center. If you want your staff to have a vision for your ministry and a genuine love for kids, consider: Staff members should belong to your church, and they must able to affirm a personal faith in Christ. And day care providers should be more interested in caring for children than talking with each other.

Once you decide to set up a church day care center, develop the purpose of your ministry. Why are you going to do this as a church? If you want to minister to families, this should be the entire congregation’s goal.

Develop a mission statement.

Most mission statements include the goal of meeting the needs of children and families and sharing the gospel of Jesus Christ. Your mission statement should also make a commitment to high standards of excellence in providing for the physical, social, emotional, intellectual, and spiritual well-being of children-regardless of racial, religious, or economic backgrounds. Keep your written mission statement to two to four sentences. Give it to parents and congregation members. A written mission statement will ensure that your purpose is clear.

Start small.

Offer only one class. Then develop a sense of how to deal with the issues that’ll invariably arise. Later when the program has grown, there will be a strong foundation to fall back on.

Our society today is a working society. Children need day care, and opening a church day care meets families’ needs. Not only can you care for children’s everyday needs, but you can also introduce them to the gospel. When you open a church day care, you’ll be fulfilling the command of Jesus when he said, “Let the little children come to me.”

Carla Williams is a freelance writer in Colorado.

Want more articles for children’s ministry leaders? Check these out .

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15 thoughts on “ Looking to Start a Church Day Care? Start Here. ”

I have church retreat held on Jun. Can you provide child care?

Hi Katrina! Unfortunately, we’re not a childcare provider. You could look for volunteers in your church, though!

Hello, My name is Jenni and I’m a missionary in Thailand. I’ve been here for 11 years and have always felt the Lord leading me to start a Child Care Center. I’ve been working in a Thai church, in a village, for 6 years now and I feel like the Lord has been opening doors to start a center here. It is a need for the church people and I believe many villagers will be inclined to want their children to come here too, simply because I’m a native English speaker. I thank you for your short article on how to get started, it was helpful in getting the brain wheels turning. I’m really having an emotional struggle because, well, I’m afraid of failure. Will you please pray with me on this? Pray that 1. I will not get ahead of God and 2. God will show His clear Hand in this new adventure I’m taking with Him.

Thank you so much,

Your Missionary in Thailand, Jenni

Wow, what an exciting adventure, Jenni! We’re praying that you feel God’s peace and presence!

Hello We’re starting a daycare and my question is, should we anticipate growth numerically in the church. What are some ideas to bridge the daycare with some Sundays services.

Elder Kristie Ford

Hello there! A daycare can increase the numbers within your church. One great way to bridge the gap is to invite day care attendees to major outreach events such as VBS or a fall fest.

Hello I Am Noah from Hillcrest We don’t have a children daycare center but in my heart I have a desire to start it because I do believe it can helps our kids to grow with a God’s nature build in them and God had put in my spirit how we should groom them in this wicked world.so I need an advice from your side what we should do or where to start

Hi Noah! Feel free to review this article and other articles on our site for guidance.

i would like to know do you need a license to have daycare in your church

Hi there! Each state may have different requirements, I would try to research what the requirements are for your state.

Hi I live in the state of Georgia and we are looking start a Daycare in our Church. Would I need to apply for an EIN number separate from our Non-Profit Tax Exempt Ministry? I am the wife of the Pastor and I would be the director of the Daycare. We would use the church building and pay for utilities, etc. The employee at this time would not be a part of the church ministry because we are a small ministry. Just needed to be pointed in the right direction

Hi Debra! I would try to contact your local department of revenue or the IRS to get answers to your questions.

My church is looking to start a daycare program. can you give us a good starting point.

Hi there! This article helps give you a starting point of the areas you should focus on when tryng to start a church day care. We also have several articles on how to recruit volunteers and ensuring to get background checks done for child safety. Here’s a few links to some of those articles: https://childrensministry.com/safety-awareness/ and https://childrensministry.com/volunteer-recruitment-strategy/

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The Daycare Business Plan Blueprint (Examples + Template)

April 14, 2022

Adam Hoeksema

Starting a daycare business can be a daunting task. There are so many things to think about and plan for. You need to find the perfect location, get the right licenses and permits, hire qualified staff, and, most importantly, create a daycare business plan. 

Creating a daycare business plan is one of the most important steps in starting your business. A well-thought-out business plan will help you get funding, attract investors, and operate your business effectively. 

The bad news is that there is a lot of advice out there on writing a business plan. With so much information and tons of daycare business plan examples to choose from, it can be overwhelming to know where to start. 

The good news is, we've got you covered. In this article, we'll give you a comprehensive guide on how to write a daycare business plan. We will also provide some examples and a free daycare business plan template to get you started. 

But First...Is a Daycare a Good Business to Start? 

Before we talk about how to create a daycare business plan, let's first answer the question: is starting a daycare a good business to get into? 

The answer is a resounding yes! The daycare industry is growing rapidly. It is one of the few businesses that are not only recession-proof but also thrives in uncertain economic times. 

According to the National Association of Child Care Resource & Referral Agencies (NACCRRA), the demand for child care services has increased by 26% over the last decade. This demand is only expected to grow in the coming years. 

When it comes to profitability, the daycare industry is very attractive. According to IBISWorld , the average profit margin for a daycare business is around 15%. That's higher than the average for most other industries! 

If you're thinking about starting a daycare business, know that you are getting into a very profitable and in-demand industry. Now let's talk about how to write a daycare business plan that will help you start and grow your business successfully.

How to Create a Daycare Business Plan 

A daycare business plan is as simple as a word document with the following sections:

• Business Description
• Market Analysis

Business Model

• Location and Facility
• Marketing Plan
• Financial Plan

Executive Summary

This article will provide context of what to include in each section of your daycare business plan. As you work on writing your business plan, you will want to grab our daycare financial projection template as well in order to complete the financial plan section.

Your daycare business plan should be an elevator pitch in itself. It should be attractive to potential partners and investors. Basically, it should give them a clear idea of your business, where it is located, what services you offer, who your target market is, and how you plan to make money. 

Creating a daycare business plan doesn't have to be complicated. In fact, the cheapest and easiest approach is to simply start with a blank word document and work through each of the above sections, it can be pretty easy. Here is a step-by-step guide on how to create a daycare business plan: 

Create a Compelling Business Description

Your daycare business's unique selling point (USP) should be the first thing you include in your business plan. What is it that makes your daycare center different from all the others? 

This description should be the foundation of your marketing efforts as well.

There are a few questions you should answer in your company description. They include:

What's your Curriculum Based On?

Potential investors, partners, and even customers will be interested in knowing what your curriculum is based on. This will help them understand the environment children will be in a while under your care. 

When describing your curriculum, make sure to include:

• What age ranges do you cater for?
• The type of care you offer (full-time, part-time, drop-in) 
• Your educational philosophy 
• The activities and programs you offer 

For example, if your daycare is unique by offering a Montessori curriculum, you will want to highlight that.  In fact, you can learn more about how to start a Montessori program here . 

How Big is Your Facility? 

The size of your facility will say a lot about the type of operation you're running. Are you a small, home-based daycare or a large center with multiple classrooms? 

This section of your business plan may include: 

• A floor plan of your facility 
• The capacity of your facility 
• The number of employees you have 
• Type of equipment and furniture you have 

Who Is Your Target Market? 

You can't market to everyone, so you must identify your target market. This will help you focus your marketing efforts and ensure that you're reaching the right people. 

Below is a daycare business plan example that shows how your business description should be:

“ABC Daycare is a small, home-based daycare located in San Francisco, CA. We cater to children aged 0-12 years old and offer full-time, part-time, and drop-in care. 

Our curriculum is based on the Reggio Emilia approach, emphasizing hands-on learning and collaboration. Activities and programs include arts and crafts, music, and outdoor play. 

Our facility can accommodate up to 12 children at a time. We have a staff of four employees who are all CPR and First Aid certified. 

Our target market is working parents in the city who need quality child care but can't afford the rates of larger daycare centers.  We've created an affordable subscription-based pricing model for our target market to fulfill the demand. We generate revenue through monthly subscriptions and have low operating costs due to our small size. 

Our suppliers are local businesses that provide us with food, toys, and other supplies.” 

Do a Thorough Market Analysis

After writing a compelling description of your business, you need to do a thorough marketing analysis. This analysis will help you determine your target market, what type of advertising and promotion will work best, and how to price your services. 

You should also research the competition and see what they are doing right and wrong. This information will be invaluable as you create your daycare business plan.

Keep these things in mind when doing a market analysis:

The Size of Your Market

This is determined by the number of potential customers in your area who need or want your services. 

For example, if you live in a small town with only a few thousand people, there may not be enough demand to support a large daycare facility. 

On the other hand, if you live in a city with hundreds of thousands of people, there may be room for multiple daycare facilities. 

Your target market is the segment of the population that is most likely to use your services. This includes factors like age, income, education, and location. 

After you've identified your target market, you need to show how you plan on fulfilling the demand. This is where your business model comes in. 

Your business model is a detailed description of how your daycare will operate daily. It should include: 

• How do you plan on acquiring customers? 
• What are your pricing strategies? 
• How will you generate revenue? 
• What are your operating costs? 
• Who are your suppliers? 

Your business model should be detailed and easy to understand. It should also be realistic and achievable. 

Here is a daycare business plan example of a business model for a small daycare center: 

“The daycare will be open Monday through Friday from six in the morning to six at night. We will offer care for children ages six weeks to twelve years old. 

Our rates will be $50 per week for one child and $40 per week for each additional child from the same family. We will offer a discount of $20 per week for families who enroll their children for an entire year. 

We will generate revenue by charging weekly rates for our services. Our operating costs will include rent, utilities, supplies, and salaries for our employees. Also, we will acquire customers through online advertising and word-of-mouth.” 

As you can see, a business model is a detailed description of how your business will operate. It's essential to have one in place before promoting and selling your services. 

One thing you should not forget to include in your daycare business plan is the location of your business and your rental agreement. If you are renting a space, including the terms of your agreement and how long you have the space. If you are purchasing a property, include information on the property, such as square footage and any special features that will help your business stand out. 

This daycare business plan example shows you how to include this vital information: 

“The daycare will be located at 123 Main Street in a commercial space currently leased by the owner. The lease agreement is for three years with an option to renew for an additional three years. The monthly rent is $2000, and the security deposit is $3000. 

The daycare will have exclusive use of the main floor, including a large open play area, a small kitchen, two bathrooms, and four classrooms. The daycare will also have access to the outdoor playground.

80% of our space will be used for childcare, with the other 20% used for our administrative offices and staff lounge. 

We have chosen this location because it is close to several residential neighborhoods and has easy access to public transportation. The space is also large enough to accommodate our future growth.” 

There are many daycare business plan templates you can use to help you get started. This is a basic outline of what should be included.

Daycare Marketing Plan

Most daycare business plan templates will include a section for your marketing plan. Most people overlook the marketing aspect of their business, but it is one of the most important pieces of your puzzle. 

In your business plan, you need to outline your target market, your marketing strategies, and how you plan on executing those strategies. 

You also need to set aside a budget for your marketing efforts. Many people make the mistake of thinking that they don't need to spend money on marketing, but that couldn't be further from the truth. 

The following daycare business plan example shows you how you should describe your marketing efforts:

"Our target market is working for families with children between six weeks and five years old. We will reach our target market through online and offline marketing efforts. 

Some of the offline marketing strategies we will use include print advertising, flyers, and word-of-mouth referrals. We will use a mix of SEO, content marketing, and social media for online marketing. 

We have set aside a budget of $500 per month for our marketing efforts."

As you can see from the example above, your marketing plan should be clear, concise, and to the point. Don't forget to include a budget!

Daycare Financial Plan

Your business plan should include a financial plan section. This is where you'll lay out how much money you need to start or grow your business. Be specific and include dollar amounts. If you're seeking a loan, including information on how much you're requesting and how you'll use the funds.

You should also include a detailed budget in your business plan. Your budget should include all of your projected income and expenses for at least the first year of operation. Creating a budget will help you get a clear picture of what it will cost to start and operate your business.

This section should include projected costs for:

• Rent or mortgage payments
• Advertising and marketing
• Operating expenses such as utilities, supplies, and more. 

Startup costs are another vital item to include in your business plan. This is the money you need to purchase equipment, furniture, or any other items to get your business up and running.

If you plan to secure a loan, your lender will want to see a detailed business plan with information on how you plan to use the loan funds. Ensure you include this information in your business plan to increase your chances of securing funding.

If you're seeking funding from investors, you'll need to include information on how they will be compensated. This is typically done through equity, a percentage ownership stake in your business. 

For example, if you seek $100,000 in funding and offer a 20% equity stake, the investor will own 20% of your business. 

Make sure you use a daycare business plan template that includes a section on funding to ensure you include all the necessary information. If you’re planning to get a loan or seek investment, you’re going to need full financial projections. Our daycare financial model will provide up to 5 years of projected income statements, cash flow and balance sheet forecasts.

Next I want to answer some key financial questions for you as you consider how to forecast your daycare financials. I am going to hit on:

• Daycare Startup Costs
• Daycare Revenue 
• Daycare Facility Operating Expenses
• Daycare Profitability

Let’s dive into some key questions. 

How much does it cost to start a daycare? 

It costs between $10,000 and $50,000 to start an in-home daycare business according to Bizfluent . 

It costs between $59,000 and $3 million dollars to start a daycare facility according to Bizfluent . 

So obviously this is a huge range in startup costs.  The main thing that will determine your startup costs is your daycare facility.  Depending on how large your daycare is, whether you are buying, building, or leasing the space, and how much renovation needs to be done, your startup costs can vary drastically.  

Some tips to help you estimate a cost of a daycare facility:

• A daycare facility should have 35 square feet of open floor space indoors per child. 
• So if you wanted a facility that could care for 100 children you would need 3,500 square feet of indoor space for children, plus additional space for offices, kitchen, bathrooms, etc.  Let’s assume that you would need at least 5,000 square feet of space for a daycare facility that served 100 children.  
• A daycare center would cost at least $295 per square foot to construct in the U.S. based on data from Levelset . 
• Constructing a new 5,000 square foot daycare center would likely cost at least $1,475,000 based on $295 per square foot.  
• Now you might not be constructing new, rather you might rent an existing facility which could require renovations.  You will need to get a specific quote for the specific renovations that you need for your space. 

How much revenue can a daycare business make?

A daycare facility can generate $17,680 in revenue per year per child according to Zippia .  

A daycare business with 100 children can generate over $1.75 million per year in annual revenue based on our average revenue per child of $17,680. 

How much does daycare cost?

The average cost of daycare is $17,680 per year, per child in the U.S. according to Zippia . 

This means that the average monthly cost of daycare in the U.S. is roughly $1,475.

What is the typical child to staff ratio for a daycare? 

The typical child to staff ratios for a daycare are:

• 1 adult staff for every 4 infants (age 0 to 12 months)
• 1 adult staff for every 6 toddlers (age 1 to 3 years)
• 1 adult staff for every 10 pre schoolers (age 3 to 5 years)
• 1 adult staff for every 12 school aged children (5+ years old)

Source - Childcare.gov

These ratios will help you estimate how many staff members you will need.  Our financial projection template makes this easy.  Just enter in your ratios and the number of children you expect to have in each age group and the model will automatically calculate the number of staff required to maintain your ratios.  See the input daycare staffing table below:

What are the typical operating costs for a daycare? 

Your largest operating expense for a daycare facility is likely to be your rent. 

It should cost between $20 and $30 per square foot to rent a daycare center space based on available spaces on Loopnet . 

Other operating costs for a daycare center include:

You can see how you can enter in your operating costs into our financial model below:

How much profit can a daycare make? 

The average daycare profit margin is 6.5% according to Daycare Business Boss . 

Once you complete your projections you will want to take a look at our At a Glance tab to make sure that your projected profit margins aren’t way out of line with the industry norms.  You can find projected profit margins for your daycare below:

This is an important aspect that you may not find in most daycare business plan templates, but it's still essential. An appendix includes any additional information to help you understand your business plan. This might include things like your:

• Business licenses 
• Insurance policy 
• Lease agreement 
• Sample contracts 
• Staff bios 

This section adds credibility to your daycare business plan and shows that you've done your homework. Including all of the necessary details in your appendix will give investors peace of mind and show that you're serious about starting a daycare center.

An executive summary is a brief overview of your business plan and is often considered the most important section. It should be two pages long, with a clear description of your business, your goals, and why you will achieve them.

There are several key elements to include in your executive summary:

• Business Name: This is the name you have chosen for your business.
• Location: Include the city, state, and country where your business will be located.
• Business description: Describe what type of business you will be operating.
• Target market : This is the group of people you will be targeting as customers.
• Competition: Who are your competitors, and how will you compete with them?
• Product or service : What product or service will you be offering?
• Sales and marketing: How will you generate sales?
• Financials: Include a five-year income statement, balance sheet, and cash flow statement.
• Management team: Introduce your management team and their experience.
• Exit strategy : This is the plan for how you will eventually sell or otherwise exit the business in case you decide to retire or move on to other projects.

The executive summary is the most crucial section of your business plan because it gives investors and lenders a quick overview of your company and its prospects. Be sure to include all of the key elements listed above, and keep it under two pages in length.

What Are The Benefits of Creating a Daycare Business Plan?

Research shows that a business plan helps business owners make better decisions, turn abstract goals into tangible objectives, and track progress over time. But what does this mean for those who want to open a daycare? 

Creating a business plan forces you to think through every step of starting your company. It's a valuable exercise that can save you time and money in the long run. Even if you don't end up following your business plan to a tee, the process of writing it will help you better understand your business and what needs to be done to make it successful. 

There are many benefits to creating a daycare business plan, including: 

Gives You a Roadmap to Follow

As with any journey, it's always helpful to have a map. A business plan is that map for your daycare business. It will give you a clear idea of where you want to go and how you can get there. 

Helps You Secure Funding

A business plan is essential if you're looking for investors or loans. It will show potential lenders and investors that you've put thought into your business and have a solid strategy for making it successful. 

Ensures Your Daycare Business is Feasible

When you're starting a business, it's easy to get caught up in the excitement and overlook potential problems. A business plan forces you to take a step back and assess whether your business is truly viable. It also helps you identify any areas where additional research is needed. 

Final Thoughts

A daycare business plan is a valuable tool to help you make your business successful. 

It is worth noting that your business plan is not a one-time exercise but should be updated regularly as your business grows and changes. This document is meant to be a living document that evolves as your business does. 

If you're unsure where to start, there are plenty of resources available to help you, including daycare business plan examples online, books, and daycare business plan templates. 

You can also use our daycare projection template to get your financial plan ironed out and ready for your business plan.

The most important thing is just to get started. The sooner you create your business plan, the better prepared you will be for success.

You can get the Daycare Facility financial projection template here!

The template is simple to use and will save you loads of time while still producing professional looking daycare projections. ProjectionHub has helped more than 50,000 businesses create financial projections so you can be confident that you can do it too.

The daycare business projection template includes:

5 Year Daycare Facility Pro Forma Financial Statements

CPA Developed & Completely Customizable

Free Support & Projections Review

Compatible with Google Sheets

Free expert review of your completed projections

The template is easy to use and you do not need to be an excel wizard to fill it out. Editable cells are highlighted in blue, a video guide is included, and our team is available to answer any questions you have.

You can see the complete walkthrough and demonstration of the daycare business forecast template here:

Get the template today for just $79

If you have any questions before purchasing, please feel free to begin a live chat or email us at [email protected]

100% money back guarantee in accordance with our terms and conditions

‍ Photo by Pixabay

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 40,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Ultimate Guide To Church Business Plans: How To & A Free Template

When you hear someone refer to a church as a business, I don’t blame you if you shudder a little bit. The idea of any church running itself as a traditional business is alarming and, rightfully so. That said, the church is technically a business/organization under the government and we can learn from companies through […]

When you hear someone refer to a church as a business, I don’t blame you if you shudder a little bit. The idea of any church running itself as a traditional business is alarming and, rightfully so. That said, the church is technically a business /organization under the government and we can learn from companies through features like a church business plan. 

A church business plan takes the idea of laying out a document with everything someone needs to know at a glance about an organization. Instead of making it about maximizing profits and return on investments, though, it is about building the Kingdom of God. 

In my time serving in a large church, I find the most successful and growing churches nail down an efficient church business plan. 

I’ll cover:

What is a church business plan, why do you need a church business plan, what should be included in your business plan.

• How To Create A Business Plan For Your Church

Church Business Plan Template & Sample

At its core, a strategic plan isn’t too much different from one you might find in a standard brick-and-mortar store. The idea is to lay out who your business (religious organization, in this case) is, what its purpose is, and how you will go about accomplishing your goals. 

A church business plan doesn’t have to be as detailed or extensive in its raw data, specifics, and legal jargon like you might find in a regular business. It is possible to shrink it down to a single page where you succinctly and adequately describe the top level details of your church. 

A church business plan is a straightforward, technical document. It can include some of your more passionate ideas but this page should essentially be as dry as can be.

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There are a few reasons why you need a strategic plan, starting with the fact that you should take your church’s plans seriously. If you want to be taken seriously by others and experience church growth, building out a clear plan can help with that. 

The point of the church business plan is to show yourself and your staff members the steps moving forward for your church. Laying this out for your church staff will ensure that everyone is on the same page with a clear focus in front of them. 

This is especially crucial for any new church staff members you add to your team down the road. They weren’t with an original church leader when you first formed your vision and goals, so a business plan can be part of orienting them to your team. 

It goes beyond your church’s four walls, though. A church strategic plan is also essential for partnering with third-parties, be it investors, businesses, charity organizations, donors, and even other churches in your community. 

A business plan that you bring to the table immediately informs and shows the potential partner how serious you are about your business. Since few churches do this from my experience, I find that organizations are more willing to work with a church plant with an actual plan. 

The strategic planning process can be daunting, especially if you don’t have a professional on your team with experience with these. I find that a business plan for a church doesn’t need to be as lengthy or specific as one with an actual for-profit company or startup .

That said, there are some bare minimum sections and features you should absolutely include in your church business plan. Here’s what you need:

• Executive summary (can go by a different name as you will see in our template)
• Values and vision for your church
• Mission statement
• Current goals (both short-term and long-term)
• Plan of action for how to strategically execute those goals
• List of ministries and current staff members
• Financial (can be included in the prior section)

How To Create A Business Plan For Your Church?

When it comes to creating a church business plan, it can be a group effort between a few core staff members. I find this helps alleviate some of the stress and ensures that everyone’s ideas shine through. As mentioned, you can absolutely cover a business plan on a single page or even two without sacrificing the importance of it. 

1. Values and Vision (Executive Summary)

A business plan should begin with the overview of your church and what will be addressed below. Businesses call this the executive summary, but I like to call this area your values and vision. This is where you break down what your church stands for, what it believes in, and what it wants to do. 

This is a brief section, only meant to be a couple of paragraphs at best. I like to divide it between the now (what you believe in and currently do) with the future (what you are praying to see happen). Keep this section as brief and engaging as possible to hook in the reader who might just help you make this all happen. 

2. Mission Statement

Your mission statement should be its own section when it comes to a church business plan, not included in the previous area. This is because your mission is why you are doing what you’re doing. It is the central mantra of your church and should be given the spotlight it deserves. 

The mission is your ultimate goal for your church, which you can word however you like. Any variation of building out the Kingdom of God or seeing everyone become believers works in this case. A couple of sentences or a short paragraph will do here. 

3. Current Goals

This third section is where we get into the nitty gritty of the church business plans. In this area, you lay out your current goals. While your mission statement is to see the whole world believe, your goals are smaller, more focused ideas that you can actually tackle with your church alone. 

These should include both short-term and long-term goals that your church has. A short-term goal might be something like completing the renovations of your sanctuary and buying a new piece of land. A long-term goal, though, could be to take that new land and build a homeless shelter or food bank for the nearby community. 

4. Plan of Action

Your goals and ideas need action to make them happen. This is the section where you detail the strategies you have for tackling your various goals. This could be noting that you need X amount of budget for Y purpose and go over the exact steps needed to happen. 

Your Plan of Action section can take up several pages on its own, so I prefer bullet points here that you can elaborate on in separate documents or meetings . Other Plan of Action could include smaller steps that build up to the greater goals. 

For instance, if you want a new piece of land for creating a new children’s center for the congregation, this is where you note steps for that. It could include meeting with nearby landowners, garnering interest from investors, doing fundraisers to gather funds for it, and finding the right construction company.

5. Ministries and Staff Members

This final section is a bit of a catch-all area. You want the people you’re possibly partnering with or hiring onto your staff to know more about your church. Here, I like to list out all of the core ministries that you have at your church, a very brief description of them, and your staff members. 

That is rather straightforward enough, but it gives someone who might not regularly attend your weekly church service a better idea of it. In addition, I also like to include any financial areas in this section. 

If you want the person to know how much your church brought in last year, your current capital, and monthly costs, this is the place to do it, or create a separate section for it entirely, if you feel it is necessary. 

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You can find my church business plan template here (simply click the link and make a copy of the document to edit). This blank template offers you the sections that I believe are crucial to any church serious about organizing its ideas for possible partners.

In addition, I included a sample of a filled-out business plan that offers a look at what you should include in each section. This sample isn’t directly taken from any one church—I used a made-up church in this case—but it is taken from some of the elements of past churches I worked with. 

Plan For The Good And The Bad

The church business plan is a document used for information, growth, and investment in your church. For the most part, everything surrounding this plan is dealing with the hopefuls and positives. But you also need to plan ahead when it comes to the negatives, too. 

There are struggles, disagreements, and issues that will inevitably happen when we come together to make a real change in the world. For those situations, a business plan won’t help in the slightest. I recommend creating a church risk management plan , which is there to mitigate and solve issues that can and will pop up. 

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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.

How to Create Your Church’s Childcare Program

By: summer crepelle | july 6, 2021.

After years of planning and praying, it’s finally time to launch your church plant. The sermon series is prepared, the chairs are set up, and the coffee station is stocked. You’re expecting a few kids, and you’ve prepared a space and secured volunteers for them. But have you considered how to develop a biblically robust, safe, and nurturing childcare plan for your church? Excellent childcare is vital for even the smallest churches. It reflects God’s care for all his people.

In 2012, my husband and I left full-time staff positions at a large church and moved to Raleigh, North Carolina to attend seminary. We joined Imago Dei Church (IDC), a brand-new church plant meeting in a shopping center. When IDC transitioned to portable church in a gymnasium, my husband and I got up before dawn to pull the trailer full of supplies because we were the only ones with a big enough truck! 

Fast forward a few years. Our church has its own building, and I have the privilege of serving on staff, leading a ministry with 120 preschoolers. I’ve gone from large church to simple church to something in between, and I’m frequently asked to help church plants create a childcare plan to serve their families. Below are several areas both new and transitioning churches must think through to provide excellent childcare.

There are many different security options out there. If your church already has a database, begin by exploring the check-in options it offers. Planning Center Online , Elexio , and ACS all have check-in options but require different hardware requirements. Our church uses Elexio Community with iPads and Wireless Brother printers. Elexio is a great option for portable churches because everything in the system is wireless; you can set up wherever you’d like your check-in station to be. Whichever system you use, be sure it allows you to match parents with their child and contact parents quickly in case of an emergency.

Child Safety

Start your childcare program right with a detailed Policies and Procedures Handbook. The handbook should cover everything from emergency procedures to how your church volunteers will handle crying babies. Feel free to use our church’s Policies and Procedures Manual as a guide to help you develop a handbook specific to your environment and state regulations. To easily train volunteers in the above policies and procedures, we create and upload our training videos on MinistryGrid . As volunteers complete the training sessions, we can track their progress.

Decide how you will enlist volunteers. Will you recruit, require all capable church members to serve, or develop a rotation among parents? Whatever you choose, be sure the volunteers all have background checks and are thoroughly trained. Protect My Ministry offers complete background checks and volunteer screening services for churches. Choose a system for your volunteer database. We love Planning Center Online for its scheduling capabilities. 

Many visitors will determine their opinion of your church by the people they encounter, especially those caring for their children. Choose volunteers who enjoy children and lovingly and helpfully greet and interact with visitors. Place those individuals who are exceptionally gifted in this area at the visitor check-in station. 

The choices for curriculum are endless. I’ve provided a few popular options and a summary of each. Even though this guide is specific to children four-years-old and under, I’ve included curriculum options for both preschool and elementary-aged children. It’s never too early to begin thinking through elementary options to help provide continuity between the two ministries.

The Gospel Project for Kids

• Free trial: https://www.gospelproject.com/sign-up/ .
• Cost: Digital content is available through a monthly subscription. $25/month for preschool, $42/month for elementary, or $65/month if you bundle. 
• Free offer: For church plants two-years-old or younger, Lifeway offers curriculum for one year through Ministry Grid. To access these resources, visit https://newchurches.com/offer/ .
• Age group: Preschool and elementary
• Overview: The Gospel Project is a weekly Bible study that helps kids dive deep into the big story of the Bible—God’s plan to rescue his people through his Son, Jesus Christ. It’s designed to help kids see how the whole Bible points to Jesus and the gospel, uniting the big story and themes of Scripture.  
• Summary: The Gospel Project has been our church’s go-to curriculum for the past several years. While the curriculum can seem overwhelming at first glance, it’s very adaptable for small or large groups, whether you’re using videos or volunteers to teach. We chose The Gospel Project because of its chronological aspect. It covers more than just the well-known stories of Scripture, and it delivers what it promises—every lesson points to Jesus Christ and the gospel. 
• Free trial: https://free.thinkorange.com .
• Cost: $510 annually for the preschool starter, plus $412 for the add-on media package. Double that cost to add elementary. 
• Free offer: Through the Church Plant Initiative, churches two-years-old or younger receive six months of free access to any/all of their curriculum, plus access to the media packages that correspond with the curriculum. To get the deal, visit https://orangespecialists.org/amyg/ .
• Overview: Based on Jesus’s command in Matthew 22:37–39, the Orange curriculum teaches kids three main things: love God, love life, and love others. 
• Summary: One of the real benefits to the Orange curriculum is the philosophy of church and home. The content is engaging and easily adapted to any ministry type.

Grow Curriculum

• Free trial: https://growcurriculum.org/free-trial/ .
• Cost: $597/annually
• Overview: The Grow Curriculum goes beyond Sunday morning teaching times to help develop a strategy for your entire ministry. 
• Summary: The curriculum was designed for ministries that have few volunteers and low budgets. The curriculum also goes beyond just weekly lessons and provides help with everything from developing a ministry strategy to planning events. Note the creators originally worked for Orange. 

New City Catechism

• Free trial: http://newcitycatechism.com/books/curriculum/ .  
• Cost: $51.49
• Age group: Suggested for 8 to 11-year-olds
• Overview: Lessons come with three different outlines for 30, 45, or 75-minute sessions. The components are a “big idea,” leader’s notes, a memory verse, a supply list, instructions for two activities, an expository Bible lesson on a passage related to the catechism question, discussion questions, a virtue application that ties in with the passage, a memory activity, and a closing prayer.
• Summary: Despite the lack of bells and whistles,  this can be a great, low-cost, solid curriculum to consider, especially for elementary students.  

Classroom Design

There are many different ways to approach classroom setup, depending on what you’re trying to accomplish. I’ll cover some of the necessities to help spark your creativity. You can find many used baby items in fantastic condition. For older childcare classrooms, don’t be afraid to invest in some good quality things because, believe it or not, church kids can be rough! At the end of this list, I’ve also provided a few websites where you can find classroom items. 

Carpet squares or tiles are safe, easily cleaned, and easily replaced. A hard surface is also easy to clean, but you should be prepared to cover large surface areas with carpet rugs (especially in the younger classrooms). 

Colors have an emotional and psychological effect on us. While bright colors like red and yellow may seem exciting, painting the wall with them can have a negative impact on children. Instead, choose light shades of blue or green to create a calm environment. If you add pictures or murals, remember that children primarily see at their eye level. Everything above their eye level would be for the benefit of volunteers or parents. 

Items for infants

• Changing table
• Extra diapers (in a variety of sizes), wipes, and diaper cream
• Age-appropriate toys and books
• Pack-and-play (or a crib)
• Soft flooring, specifically a cushioned mat for babies to lay/sit on
• Bumbo (if you buy one with a tray, it can double as a high chair)
• Rocking chair for volunteers
• A place to store diaper bags (this may be as simple as wall-mounted hooks)

Items for toddlers

• A rug for circle time
• Age-appropriate books and toys: blocks, trains, Little People, dolls, push and riding toys, and toddler-height play kitchens or houses
• Adjustable-height table and chairs
• If you have the budget, soft play, indoor playhouses, and toddler-sized kitchens are wonderful additions to a toddler space.

Items for 2 to 4-year olds

• Preschoolers thrive on centers for learning. Even if you don’t have a formalized preschool program, you can still facilitate learning by adopting some of these centers for when you won’t be doing curriculum activities. Basic centers to consider: home living, blocks/building, trains and train tables, dolls and dollhouses, and reading/books. 
• Adjustable table with chairs
• A place to store curriculum supplies such as crayons, glue, scissors, markers, and so on. You don’t need to purchase every craft item available. If you’re using a curriculum, you’ll begin to see a pattern in the most used items. You can store those things in shoebox bins and begin to build a resource center for volunteers. 

Websites to Check

Discount School Supply

School Specialty

School Outfitters

While this guide is certainly not exhaustive, I hope it provides a starting place as you begin to develop childcare for your church plant. Serving the smallest people in your church is an honor and should be done with excellence. Put parents and guardians at ease by providing safe, smart, and nurturing care for their little ones that mirrors the loving care of our heavenly Father.

Summer Crepelle has been involved in ministry to children for over 15 years. She and her husband, Brandon, are members of Imago Dei Church in Raleigh, North Carolina where she is the director for childcare and kid’s discipleship. They have two children whom they also homeschool.

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The ultimate guide to starting a daycare business.

Why Start a Daycare?

Advantages to starting a daycare, can you start a daycare from home, how much does it cost to start a daycare, 15 steps to starting a daycare center, resources for daycare owners, bottom line.

Since most parents work outside the home, most preschool aged children receive some form of child care. While many are cared for by nannies, babysitters or other family members, nearly one-quarter (23.4%) of children under age five attend an organized daycare center. 

This presents a world of opportunity for those looking to take the next step and start a child care business of their own. Starting a daycare center can be both personally fulfilling and financially rewarding.

Do you want to open your own daycare center in the U.S.? Follow along with this guide as we reveal the step-by-step process for opening a successful child care business. 

Opening a daycare can be intimidating, but it can also be incredibly rewarding. While there is no blueprint for success, many child care business owners find joy in the journey. So whether it’s your passion for kids or desire to serve parents in your community, there are many valid reasons to open a daycare. 

What’s important is that you also need to consider your own unique reasons for wanting to open a daycare, as these reasons will then motivate you to follow through on your dream. Even though you will face obstacles along the way, the payoff of opening a daycare is certainly worth the struggles.

Starting your own daycare business can be advantageous on multiple levels. For one, you’ll have the personal satisfaction of starting your own care center from scratch. Then, there’s the joy of spending time with children and learning life-changing lessons along the way.

If you’re still on the fence about starting your own daycare, consider these likely advantages:

• Emotionally rewarding: Working with kids teaches you to be patient and enjoy the simple things in life. You’ll also have the flexibility of having your own business versus being confined to a traditional day job.
• Financial freedom: By opening a daycare, you’re in control of your income rather than reliant on a typical paycheck. You can maximize your earning potential and make investments back into your own business.
• Personal child care: If you have your own child, you can care for them while you’re running your daycare. This will save you money and give your offspring opportunities to make friends with other kids. 
• Continued education: Opening a daycare can open the door to new opportunities in the field of child care. You may be presented with another job position or choose to pursue additional education of your own accord. 
• Extra money: Rather than stay home and care for your own children for free (assuming the original plan was to be a stay-at-home parent), why not make some extra money by caring for other children at the same time? 
• Tax deductions: As a business owner, you can write of certain expenses as business expenses, saving you money on your taxes. These expenses can include a portion of your housing payment (if you have an in-home daycare), your cell phone bill, your vehicle, child care supplies and more. See Tax Deductions . 

These are just a few of the many advantages of starting your own daycare center. Now let’s address some common questions you may have about being a daycare business owner. 

Yes, starting a care center from your home is an option and may even be the more affordable option. This is because there are different options at the local, state and federal level that provide grants and funding to in-home daycare centers.

If you already have the space to run a child care business out of your home, it’s worth looking into Small Business Administration (SBA) loans to help you fund your endeavor. Remember, at the end of the day, you may be eligible for tax cuts and other benefits.

According to small business website bizfluent.com , the average startup cost for a daycare center is $10,000 to $50,000. This can vary widely depending on whether you’re opening a home-based daycare or leasing a separate facility for your care center. 

If you don’t have $10,000+ in your bank account, don’t worry. There are many grants and loans available to child care businesses. In fact, some local businesses will offer financial incentives to support budding child care centers. Consider reaching out to your community for support.

Now, let’s get to the good stuff: how to start your own daycare business from start to finish!

Starting a small business in general is always a journey. While we’ve outlined a few steps to getting your business up and running, know that there is no one “right” way to achieve success. You’ll learn many lessons along the way and are likely to pave your own path.

That said, here are 15 steps to starting your daycare center, even if you have zero experience.

1. Learn About Daycare Licensing Requirements

You might have started off as a babysitter or a nanny, but in order to start a full-on daycare business, you need to meet the proper licensing requirements in order to be legal . That way, your daycare will be legitimate and you won’t run into any legal trouble accepting children into your care. 

A good first step is to contact your state’s Department of Children and Family Services (DCFS) to learn about their specific regulations for child care providers. Another option is your local area’s child care licensing agency. You can usually find this information online. 

To obtain a license to start a daycare center, you’ll also need a current CPR certification, a clean driving record and additional documents that prove your commitment to providing quality child care. Don’t be afraid to ask your local agency questions to ensure you’re satisfying all requirements.

2. Consider Taking Early Childhood Education Classes

While you don’t need to have professional child care experience to start a daycare business, having some understanding of early childhood development is strongly encouraged. You’ll be caring for young lives, so you need to know how to provide the right kind of support and care.

Getting a degree is early childhood education is a good place to start. You can typically find classes in-person at your local community college or online. Through this degree, you’ll gain a greater understanding of how children think and behave, and what they need in order to be properly cared for. 

Beyond that, you’ll have the skills to set your business apart from your competition. You’ll be better prepared to offer the services parents are looking for and keep them coming back time and time again.

3. Create a Daycare Business Plan

In starting any type of small business, it helps to have a business plan. Having a business plan helps you set tangible goals for your business, organize your business structure, outline your services and so much more.

In your daycare business plan, you’ll define your daycare’s mission statement, operations and procedures, staffing and budget. This business plan works to keep you on track and striving toward success. 

Consider how you want your business to be organized for you plan. Will you be solo or hire staff? How will you secure funding? Will you offer services beyond child care (like tutoring)? For help in creating your business plan, check out this detailed guide from the U.S. Small Business Association .

4. Find a Location for Your Daycare

If you plan on running your daycare out of your home, this step should be pretty straightforward. If not, you’ll need to find a location for your child care facility.

Many recreational centers, churches, local businesses and even schools have space available to host a daycare, typically for a monthly fee. Search online, in your local newspaper and within your network to find options in your area. 

Once you’ve found a good fit, you need to check your city’s zoning laws and licensing guidelines to make sure your chosen location is compliant. That way you can avoid some legal headaches down the road. 

Ideally, you’ll need to find a location that’s centrally located, easily accessible and child-friendly. Consider what children and their parents will be looking for in a child care center. You might not find the perfect option, but you can make it work with a little TLC.

5. Get Insurance

Most daycare centers need several types of insurance in order to keep children (and their businesses) protected. These policies typically include liability coverage, property, workers’ compensation and business insurance.

Not sure what type of insurance you need? You can always check with your local child care provider licensing office for guidance.

6. Seek Out Grants and Funding

As we covered already, there are certainly costs associated with starting a daycare. If you don’t have the money you need to cover your initial startup costs, you’ll need to get creative when it comes to acquiring funding.

There are many grants available to help you cover your startup costs. You might also consider taking out an SBA loan or doing community fundraising. Know that the goal is to use these funds as an investment that will yield profitable returns in your business.

Costs Associated with Starting a Daycare

There are several things you’ll need to buy or lease in order to get your business up and running for day one. These expenses include but are not limited to:

• Renting a daycare space
• Indoor and outdoor play equipment
• Art supplies
• Cleaning supplies
• Child care supplies (like diapers and wipes)
• Business laptop
• Licensing fees
• Food (for snacks/meals)
• Bottles, cups, plates, utensils, etc.
• Car or reliable transportation (optional)

You might think of some additional items you’d like to have at your daycare. Over time, you can use the revenue coming in to help cover these expenses and invest in better equipment/supplies. It’s OK to keep things simple and then scale your way up. 

7. Prepare Your Daycare Center

Once you have a location secured and the proper materials and equipment in place, it’s time to prepare your daycare center.

First, clean your facility and sanitize with an effective disinfectant. Then, take the needed steps to childproof your daycare according to the ages of the children you will be caring for. Follow this childproofing checklist for help.

Finally, set up play equipment and lay out toys. You might decide to use storage boxes to keep everything organized. You can always rearrange your layout according to your needs.

Is your daycare ready for service? Give it another once-over and you’re ready to open your doors for day one of business!

8. Draft up a Contract

As a small business owner, having a contract is always a good idea. The parents that come to your facility are essentially your clients, and you want to have a solid contract in place to protect yourself from any legal issues.

We recommend seeking out a trusted contract lawyer to draft up a contract according to your needs and unique business requirements. Your contract will then be used to outline your expectations for your clients and their children.

Here are some important questions to consider when creating your contract:

• How do you expect to be paid?
• How will you handle late payments?
• What time should parents pick up their children?
• Are there consequences for late pick up?
• What services will you provide?
• What is your policy when it comes to sick children?
• Do you offer refunds? If so, under what conditions?
• What happens if a child is injured at your facility?

Whether you seek help from an attorney or write the contract yourself, you should have a contract in place before accepting business. Once signed, you can then send professional daycare invoices to get paid by your clients. 

9. Establish Policies and Procedures

Establish policies and procedures for the families that attend your daycare and your staff. These procedures may include an emergency plan, safety procedures, privacy protocols and rules for your facility.

Having these procedures in place will help you keep the children safe and protect yourself from liability (in some instances). In establishing your policies, be sure to review your local child care licensing requirements to ensure compliance. 

10. Research Possible Tax Credits

If you’re opening an in-home daycare, you may be eligible for certain tax reductions based on the fact that you’re using your residence for business purposes. This means you can essentially write off a portion of your housing cost. This can be the case even if your daycare space serves as a family room after hours. 

11. Hire Staff as Needed

When you’re first getting started, you may just be a company of one, as you might want to save the cost of hiring unnecessary help. But over time, you may need to hire help to take care of the kids during the day.

This is especially true if you find yourself running up against the required ratio of staff to children, as outlined in your local daycare licensing requirements. Be sure to review these to make sure you have enough staff for the number of children you plan on caring for.

Also, make sure all child care staff undergo criminal background checks and provide references to ensure the safety of the children. Make your hiring decisions carefully to keep your facility safe and maintain a stellar reputation.

12. Market Your Daycare

You have your daycare set up and open for business, now how do you get families in the door? As with any small business, you’ll need to market yourself to attract potential clients.

There are many ways to market your daycare. One method is to create flyers and post them around your local community—at businesses, schools and coffee shops. You can also run paid ads on Google or Facebook to draw in families from your local area.

To establish your daycare as a professional business, consider building a website that provides more information about your services. A basic website can cost anywhere from $10 for a WordPress template and set up, to $2,000 or more for a custom design.

With a website, you can then use search engine optimization (SEO) to attract organic traffic from Google. That way, when families search for a daycare near them, your business is likely to show up in the search results.

13. Promote Your Daycare on Social Media

Another effective marketing tool for daycare centers is social media. Platforms like Facebook, Instagram and LinkedIn can be used to promote your business and draw in potential clients.

Create a business Facebook page to post more information about your daycare, collect client testimonials and keep families up-to-date with events at your daycare. You can also post on Instagram and LinkedIn, with targeted hashtags, to attract families in your area.

As your business grows, you might decide to invest in paid marketing services. A digital marketing agency or consultant can help you increase your business’s presence online, outrank your local competitors and attract new clients. 

14. Provide Top-Quality Care

The success of your daycare depends on you providing top-quality care to your families. If the kids at your facility are properly cared for, and, even better, enjoy coming to your daycare, you’re likely to attract more referral business.

Positive reviews can work wonders to attract new clients. Ask families to review your business on Facebook, Google, Yelp and other review sites to improve your daycare’s reputation in your community.

Always look for ways to improve your daycare. Ask families for feedback, invest in additional education and hire fantastic staff to make your daycare the obvious choice for families in your area. 

15. Manage Your Business Finances

Many small businesses fail due to poor money management. If you want your business to succeed, you’ll need at least a basic understanding of business accounting and how to manage your expenses.

Staying on top of your business finances is more than just tracking revenue in and expenses out. You’ll need to plan for taxes—typically around 30% of your revenue, after expenses—and make informed decisions when it comes to how you’re going to allocate your funds.

Professional daycare accounting software can help you send invoices, track revenue, manage expenses and more. It can even send reminders to parents for late payment and accept credit card payments with ease.

The more you know, the easier it will be to make smart financial decisions. Stay on top of your business finances so your business is not only surviving but thriving . 

Congratulations on taking the first step to starting your own daycare business—reading this guide! By now you have a general blueprint for how to start your own business and get up and running. 

Need more help getting started? Check out these reliable resources for aspiring daycare business owners:

• Child Care Aware of America: licensing guidelines for child care and daycare providers
• United States Department of Health and Human Services: childproofing checklist
• Early Childhood Training and Technical Assistance System (ECTTAS): child care resource guide
• Office of Child Care: list of state licensing agencies
• Child Care Resources Inc.: early educator training

Starting a daycare business can be challenging but also incredibly rewarding. The process is made easier by having a general roadmap for how to get started. Hopefully, this guide has provided some guidance on how to get started, plus inspiration for you to finally launch a business of your own.

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How to Start a Day Care: A Step-by-Step Guide

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If you’re a teacher, former teacher, or simply have years of experience caring for children — and an entrepreneurial streak — you might have considered starting your own day care center, either from home or in a dedicated facility. And at an expected job growth of 7% over the next decade, working in child care is a stable career choice. So, if you’re seriously wondering how to start a day care center, you’ve come to the right place.

As is the case starting a business in any industry, however, your passion for your craft alone — or, in this case, your students — isn’t quite enough to ensure that your day care business is copacetic, either financially or legally. You’ll need to do a good amount of due diligence when looking into how to start a day care business, paying special attention to licensing requirements, and ensuring that your facility and program aligns with your state’s health and safety codes.

If you’re a pro at educating, training, supporting and generally corralling large groups of small children, you should be pretty unperturbed by the work it takes to start a day care business. Here’s what you need to know.

How to start a day care business

Although every path toward starting a business looks different for every business owner, there are a few steps that every aspiring day care owner needs to think about when it comes to how to best start a day care.

1. Decide what kind of day care business you want to start

Before you can even get to writing a business plan for your day care business, you need to decide what kind you want to open. Look into whether you want to start a day care business at home, or whether you want a more commercial facility — there might be different permits required in your municipality depending on which you choose. You also need to decide what age groups you want to focus on.

Next up, you'll have to decide on a business entity, which will have huge effects on the way you're taxed and how you operate your day care business. Will you have partners or open your business on your own? Additionally, you'll want to consider whether you want a business entity that offers you some protection. Making your day care center a limited liability company might be a good move, since the business will take on liability should anything go wrong.

You might also decide to buy into a day care franchise opportunity. This option will significantly streamline the steps you need to take in opening your day care.

Once you narrow down these details about your business, you can move on to the next step in starting a day care business: writing a business plan.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

2. Write a day care business plan

This is a step you have to take when starting any business and it can be quite a bit of work, especially for anyone looking to get moving quickly on their business. When you start writing a business plan, start with an outline of all the things you want to include.

Your plan should include a summary, an overview of the company, a market analysis that includes an assessment of the need for a business like yours, a marketing and sales plan, and a financial plan along with financial projections. Don't worry, though, you can always add to it as your business grows.

One thing you should include, though, is market research. The last thing you want to do is go through all of these "how to start a day care business" steps, only to find that there isn't a market for one or that there are already too many day cares in that area to make it a viable business.

Your business plan should also include a budget. The costs associated with opening and running your day care center can never be accurately totaled, but nailing down a budget will give you some parameters to work within (and some peace of mind).

In your budget plan, don’t forget to factor in:

Your startup costs, including day care equipment, food, toys and educational tools, wages, insurance and licensing.

How much tuition you’ll charge.

Your predicted revenue over the next two to three years.

When you’ll break even.

Also know that day care centers can claim certain tax deductions, which can ease your annual financial burden.

You'll also want to include a marketing plan. If you’re seriously researching how to start a day care business, it’s likely that you’ve already been caring for children in your area for some time and have built up a network of local parents. That’s one valuable method of attracting customers (aka word of mouth) covered. Still, implementing even a basic marketing plan can help define and legitimize your business — and if you need to implement a waitlist as a result, that’s great too!

Your marketing efforts can be relatively simple and low-cost. You can start by creating a Facebook page for your day care center and building a business website, making sure to include your contact information and a little bit about your business. If possible, plan to include pictures of your facilities and testimonials from happy customers.

If you’re a fan of social media, it also can’t hurt to create an Instagram, LinkedIn and/or Twitter account to keep both current and prospective customers updated on your business. Just be sure that once you do, you receive permission from parents or guardians before posting pictures of their children, of course.

Analog marketing techniques would work well here, too. If possible, consider distributing flyers or brochures to nearby libraries, schools, places of worship or any other local gathering spots.

3. Obtain the necessary certification and licenses

You may not need a master’s degree in education to become a day care teacher, but each state does require some combination of licensing and certification when it comes to how to start a day care. Visit your state’s Division of Child Care Services (or its equivalent) to find out the training, experience and credentials you need to legally operate a day care facility.

In New York State, for instance, the head of the day care facility must have one of the following:

An associate degree in early childhood education or an equivalent.

A CDA credential (child development associate) and at least two years of experience caring for children.

A high school diploma and at least three years’ experience caring for children.

You'll probably find that there are some other requirements that usually come up when you're looking up how to start a day care business at home or in another facility. Your state may require that you and any staff you hire are CPR-certified, for one. Another point of safety to remember is that you should be trained in at least basic first aid for children. You and your staff might also need to be fingerprinted and undergo background checks before being cleared for work.

Even if your state doesn’t require that you obtain a license, you should consider doing so, as your licensing course will go over all the boxes you need to check to operate your day care in your state — including health and safety regulations, proper food preparation and the required child-to-adult ratio.

4. Find a (safe) day care facility

In certain states, in order to obtain the proper licenses or registration to start your day care business, you’ll first need to show that your day care facility meets your state’s health and safety requirements.

So whether you choose to open your day care facility in your own home, or buy or lease a new property, you’ll need to make sure your facility meets zoning, fire, and health and safety laws. When it comes to how to start a day care at home, you may need to make alterations to your house to comply with day care requirements in your state, so be sure to factor them into your budget.

5. Get insured

Another requirement for obtaining your license? Getting insured. In certain states, you’ll need to be licensed by the Department of Health and Human Services to run your day care center, but to do so, you’ll first need liability insurance.

The exception is home-based day care centers, which don’t need insurance to be licensed by the DHHS. Still, those opening day care centers at home should seriously consider obtaining small business insurance. You always run the risk of a lawsuit when you’re running your own business, but that risk increases when caring for other people’s children — so protect yourself whenever possible.

There are several types of insurance that cover day care businesses — general liability insurance, workers’ compensation, property insurance, abuse and molestation insurance and others — so contact an insurance broker to help you decide which coverage is best for your business.

6. Get a business checking account and credit card

Get a business credit card and a business checking account early on to help you keep your business expenses separate from your personal expenses when first starting a day care.

It’s crucial to separate your personal and business expenses for many reasons, not the least of which is to reduce your (or your accountant’s) burden come tax season. It’s simply the most professional way to conduct your business, too. Set yourself up for success now by signing up for a business credit card and opening a business bank account, and be diligent about using both solely for your day care’s finances.

Having a business credit card can help you increase your business credit score, too. By paying the card off on time — or early if you can — you can boost your score, which will help you late on when you need a loan or other financing for your day care business.

7. Get financing

Most entrepreneurs bootstrap their businesses at the beginning, as it’s difficult for brand-new businesses with limited credit history to secure a business loan, either from a bank or from an alternative lender.

Your financing options aren’t limited to your own purse strings (or your friends’ and family’s). Here are a few other ways to get funding and loans for a child care business:

SBA microloan

Although most SBA loans are available only to businesses with a few years of experience under their belts, SBA microloans are actually designed to help startups get off the ground. They’re especially accessible to women, veterans, minorities and business owners in low-income areas. And unlike most other SBA loan programs, SBA microloans are disbursed by nonprofit lenders, rather than banks.

As the name suggests, SBA microloans tend to be on the smaller side, with amounts capped at $50,000, but they may be as low as $500. (For more context, the average microloan amount was $14,000 in 2017.) And because microloans are designed for new businesses, business owners with average or even challenged credit may still be accepted, as long as other aspects of their SBA loan applications are in good shape.

SBA community advantage

These loans from the SBA have all of the advantages that come with SBA microloans but the community advantage loans are specifically for businesses that are serving traditionally underserved communities. These loans are generally for a higher dollar amount than the microloans and can go a bit further for your business.

Government grants

You might be able to obtain financial assistance to start and run your day care through state or federal funding programs for early childhood education providers. For instance, you can contact your state’s Child Care and Development Fund Plan to look into startup funds, or your state’s school meal contacts to seek funding for your day care center’s meals.

Take a look at the Administration for Children and Families Office of Child Care’s list for a more comprehensive overview of federal and state financing programs for child care centers .

Business credit card

It’s important to use a business credit card to keep your day care’s expenses separate from your own. Of course, using a credit card is also the most convenient way to pay for your daily expenses. And since credit limits for business credit cards tend to exceed those of consumer cards, you can spend more liberally without worrying about maxing out your card.

Another bonus? Using your business card responsibly (by which we mostly mean paying off your balance in full and on time, every month) can help you build business credit. And with a healthy business credit score, you’re in a better position to secure business loans with great terms down the line.

If you opt for a card with a long 0% intro APR period, you can essentially use that introductory grace period as an interest-free loan. Look into the American Express Blue Business Plus card, which, at 12 months, carries one of the longest interest-free introductory periods in a business credit card right now.

After your 12 interest-free months are up, though, a variable APR kicks in at a rate depending on your creditworthiness and the market. Check the issuer's terms and conditions for the latest APR information.

8. Hire staff

You may be planning on running your day care facility solo, but depending on your state and the number of children you’re looking after, that might not be an option — every state sets a required ratio of staff to children to ensure that every child receives adequate care. They also dictate the maximum number of children permitted in a group.

Adult-to-child ratios and class sizes depend on the age of the children, but they might also depend on the size of the day care facility, or face further restrictions based on municipality. For a day care center in New York state, for example, the state requires one adult for six children under school age. However, in New York City, there must be two teachers or one teacher and one assistant to every six children aged 2 to 3, with a maximum of 12 students allowed in a single group. Your own children may or may not be included in that count, too.

So, while hiring really depends upon your state’s requirements, it makes sense to leave room for hiring staff in your business budget. That way, you’ll be prepared for growth, without worrying about your operation shutting down because you’re not properly prepared for it. (Just keep in mind that any staff you hire needs to be appropriately licensed or trained for it, and potentially undergo a background check.)

Start Your Dream Business

9. Write your day care contract and policies

To further legally protect your business, it’s crucial that you draw up a contract, write out your day care policies, and require that potential clients (or, more likely, the parents of potential clients) review and sign both documents before accepting their patronage.

If you're just starting to read up on how to start a day care business, you might not be clear on the distinction between these two documents. To clarify, your contract is the document stating that you’ll provide child care, be compensated for providing care according to the payment terms you specify, and have the right to terminate providing care.

Your policies, on the other hand, provide parents with important logistical information regarding how you’ll run your day care center. There, you can outline protocol regarding vacation, illness, inclement weather, drop-off and pickup times, curriculum, field trips, and anything else you believe is important for your clients to understand and agree to about your day care center.

On a similar note...

How to Start a Daycare Business Plan 

A Step-by-Step Guide for Childcare Planning with Tips to Help Entrepreneurs Start Their Daycare Business

Table of contents

What is daycare and why should i start one.

• Types of Daycare Providers
• Before Starting Your Daycare Business Essential Planning Steps
• Decision Journey Map Definitions

Assess the Competition

How to start your daycare business.

• The Importance of an Execution Plan
• Execution Plan: Marketing and Sales
• Form Your Daycare Business

Get Familiar with Daycare Licensing Requirements

• Choose Your Insurance and Liability 
• How to Gain Enrollment at Your Daycare  
• Invest In Childcare Experience Software to Build Your Daycare with Less Work

Build an Expert-Level Business Plan for Daycare

The childcare industry is full of passionate, hard-working individuals. Entrepreneurs just like you are starting a daycare from the ground up. In this guide, we'll give you guidance and provide templates to build a solid daycare business plan.

According to Forbes , daycare businesses were projected to have some of the fastest employment growth of all industries through 2020. Starting a daycare is a great opportunity for aspiring business owners who have a passion for early childhood education and child development.   

‘Daycare’ is an umbrella term for various childcare options (such as Montessori, head start programs, preschool, and many more) where parents and guardians drop their children off and leave them in your care to...  

• Socialize with other children in their age group  
• Learn basic fundamentals for future academic success  
• Reach important developmental milestones

Is Starting a Daycare Business Worth It?

Starting a childcare business or franchise is profitable, emotionally rewarding, and sustainable – the need for committed childcare entrepreneurs has never been greater.   

As of 2021, there were 856,238 childcare centers in the United States. The growing popularity of childcare centers comes from the demand. Parents will always need a form of care for their kids. Plus, there’s a necessity, especially beyond COVID-19, to socialize children in an environment that fosters development.  

Types of Daycare Providers 

• In-home daycare  
• Relative care  
• Preschool  
• Independently-owned daycare
• Daycare franchises  

The Difference Between Individual Centers and Franchises  

An independently-owned daycare often has an individual owner, a center director, and possibly a few other administrative staff members – along with teachers, cooks, bus drivers, etc. The owner is typically an individual who puts their own money and savings into opening the daycare, so all business rights (name, branding, etc.) belong to them.  

Alternatively, a daycare franchise falls under a corporate brand that has made an agreement with an individual to legally establish a business – using the company’s brand or trademark. In this scenario, the franchisee usually pays an initial fee, as well as ongoing royalties to the corporate franchisor. In return, the franchisee gains the use of a trademark, support from the franchisor, and the right to use the franchisor's system of doing business (including unique business policies and procedures, such as their method for advertising or enrollment). This model can be particularly beneficial for individuals who are passionate about early childhood education but don’t know how to get started on their own.  

For example, Kids R Kids and Kiddie Academy are both successful daycare business plans in the United States. Each center operates similarly, has the same name (aside from a unique location number or city/county name), and the same branding as all locations fall under the franchisee umbrella.  

Daycare Franchise Terms

• A franchisor is a daycare company that provides its services, brand, and business operations to the individual. This may also be known as a ‘ franchise system ’.  
• A franchisee is an individual owner that is being supported by the company (franchisor). Buying into a daycare franchise makes you the franchisee.  
• The franchise refers to the legal agreement between the company and the franchisee.  
• The franchise disclosure document is the legally binding contract between the company and the individual.  

Essential Planning Steps Before Starting Your Daycare Business

1) conduct market research.

When it comes to starting your childcare center, relying on assumptions about your customers and competitors leads to wasted time, money, and effort. In contrast, businesses that conduct regular market research improve customer retention and are 76% more likely to see an increase in revenue.  

Market research is a data collection process that evaluates both consumer behavior, competitor habits, and industry trends to determine the viability of your center and build a foundation for future business operations.  

Prepare for success upfront by conducting thorough market research to understand your competition, improve communication with your target audience, and identify new market opportunities. This research should result in actual data that you can use to drive your business and marketing strategies as you launch your center.  

There are a variety of tools available to help you conduct market research - all from the comfort of your own office. Gone are the days of hiring team members with clipboards to approach consumers face-to-face. Survey Monkey, Attest, and Sprinklr all offer digital market research tools to help guide you through the process of understanding your audience, your competitors, and your industry.  

2) Determine Your Target Market

A market segment is a group of consumers that could potentially enroll at your childcare center. First, identify your daycare target market segments and determine how big each segment is.  

Be careful not to fall into the trap of defining your market as “everyone in your community.” This often leads to a ‘spray and pray’ approach to your marketing and as we know, a message for everyone really speaks to no one. When you generalize your advertising in favor of not isolating a potential consumer, you aren’t able to effectively communicate with your ideal customers – forgetting to recognize how your childcare center can appeal to them and their needs.  

A classic example is a shoe manufacturer. While it would be tempting for a shoe company to say that their target market is anyone who has feet, realistically they need to target a specific segment of the market in order to be successful. If they sell adult athletic shoes, they should be building their message to target athletes or individuals who enjoy staying active and exercising. Likewise, if you offer programs for children aged 6 months to 4 years old, you should prioritize advertising toward young adults in their 20s and 30s.  

A common strategy when identifying target markets is to use the TAM, SAM, and SOM approaches to look at market sizes from a top-down approach as well as a bottom-up approach.

Target Market Terms

This should include everyone you wish to reach.  

Example: Your entire local community.  

SAM: Your Segmented Addressable Market or Served Available Market 

This is a portion of the TAM you will specifically target because they align with your offerings.  

Example: Families with young children.  

SOM: Your Share of the Market 

This is the group of your SAM that you will realistically reach—particularly in the first few years of your center’s opening, as you may expand and grow your service over time.  

Example: Families with young children who make at least $65,000 each year in household income.  

For childcare organizations with multiple brands, schools, or programs - increasing revenue and keeping families happy is vital for growth. Your Millennial parents need a uniform, high-quality experience, regardless of location.

Standardizing business processes has a significant impact on time savings, costs, and most notably quality. In fact, standardization improves quality by   61.9% ,  on average. Create consistent  enrollment processes across all your franchise locations to ensure every family has a great experience and a positive association with your brand – leading to higher conversion success and profitability.   

To achieve consistency, your franchisees’ marketing approach and advertising material must follow all your corporate brand guidelines. Your organization should have a lead management system that supports your childcare franchise staff as they  guide families through   the decision-making journey  while also ensuring each location is delivering a consistent parent experience.  

3) Develop Your Buyer Personas

Before you begin writing your daycare marketing plan, make sure you’ve defined your market and buyer personas. Without a deep understanding of whom you’re speaking to, a daycare marketing plan will have little value.    

Audience personas allow you to dive even deeper into your target market and help you understand more than just who your customer is. These identities inform you how to communicate with your customers in a way that relates to their pain points and needs.  

Building a daycare business plan is no joke! Check out childcare business tips at a glance . 

When you understand your customer’s motivations, you can uniquely address their concerns and questions in your marketing materials - leading to increased tours, enrollments, and revenue.   

Start by listing out the various kinds of programs and classes you’d like to offer at your center.  

Then, determine who the primary decision-maker is and who the primary influencers might be in each scenario.   

Primary decision-maker : typically the individual(s) taking financial responsibility and remitting payment at your center.   

Primary influencers : are  also crucial in the purchasing process as they often have the ability to sway decision-makers.  

For example, imagine you’re promoting availability for Summer camp programs at your center. In this instance, the primary decision-maker might be the parent(s) or guardian(s) whereas the primary influencer would likely be the child who’s deciding what kind of activities they want to do this Summer.  

Audience Overview

List the audiences, personas, or segments that you want your center’s marketing and messaging efforts to reach.  

Select one audience from above and describe it to the best of your knowledge. Go beyond the traditional persona to consider motivations & behavior.  

Identify the key stages in your audience’s enrollment journey from beginning to end, knowing there may be multi-dimensional steps within a stage. Complete the table for each journey at the individual stages from the specific audience’s point of view.  

Decision Journey Map Terms & Definitions 

Stage : This refers to each stage of the enrollment journey - awareness, consideration, action, and advocacy.  

Awareness : This is when a family is first learning of your center and your brand. They are researching multiple daycare centers and eventually send an inquiry to tour your facility or learn more.   

Consideration : During this stage, a family is touring your center and may be deciding between you and 1-2 other providers. Tip: Proactively equip your staff with key talking points so they can highlight your unique center features.  

Action : This is when a parent decides to register their child for care, pay fees, and is either placed on your waitlist or enrolls.  

Advocacy : After a successful, happy experience, this parent or guardian has become an advocate for your business. They’re telling friends and family about your center. This is vital for your word-of-mouth marketing strategy.  

Emotion : Identify what the persona is feeling at each stage of the customer’s journey. They may be anxious, curious, excited, or satisfied at various points. Put yourself in their shoes.  

Key Actions : What actions would a consumer take at each stage? For example, during the awareness stage, they may see your ad on Facebook, look you up on Google, or visit your website. In the consideration stage, they may call your center to get more information, look at your services online, or read reviews.  

Questions : What questions is the consumer asking in each stage? These are the questions you need to be answering for them in your advertising and marketing efforts.  

Competitive research helps you understand why customers choose your center over other alternative care options. This information provides you with insight into how your competition is marketing their services and over time, this can help you improve your own marketing campaigns and business offerings.  

Look up similar daycare centers in your area, and see what programs they offer, the type of facilities, their capacity, and their curriculum. Then, highlight the features that make your center stand out. Showcase your selling points in all marketing and advertising efforts.  Get started with these key questions...

• Who are my direct competitors and what do they offer?
• Who are my indirect competitors
• What does my competition's pricing look like?
• Do they offer promotional pricing or payment plans?
• What do they do best?
• What do they do poorly?

Download the guide to stay up to date on the latest industry news, trends and best practices for growing and managing your childcare business.

Download the Guide

Build a Daycare Business Plan

A good business plan will guide you through each stage of starting and managing your childcare organization- including how to structure, run, and grow your new business.  

There’s no correct or incorrect way to write your business plan. What’s most important is that you identify your business objectives and use this document as a roadmap for how to achieve these goals.  

A strong business plan can help you recruit business investors, gain funding, or find new partners. Prospective investors want to feel confident they’ll see a return on their investment and your center’s business plan is the perfect tool to assure potentials that working with you — or investing in your business— is a smart and profitable decision.  

Write a Day Care Executive Summary (Daycare Business Plan Outline)

Although this section is the first thing people will read, it’s advised that you write it last, once you know the details of your business inside and out. At this stage, you will be able to articulate your business more clearly and summarize all the information in a succinct, concise manner.  

Ideally, your executive summary will be able to act as a stand-alone document that covers the key highlights of your detailed business plan. In fact, it’s common for investors or loan providers to ask for just the executive summary when they start evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation, and more in-depth daycare business plan financials.  

As your executive summary is such a critical component of your business plan, you’ll want to make sure that it’s as clear and concise as possible. Cover only the essential components of your daycare, ensuring your executive summary is one to two pages maximum. This section is intended to be a quick read that hooks your potential investors’ interest and excites them to learn more.  

The executive summary is a tell-all first paragraph that details...  

• The city and state of your center (you can decide on the exact location later)  
• A potential open date  
• A projected enrollment count (number of full-time enrollments)  
• Programs you plan to offer  
• Ages you hope to serve  
• A quick financial summary (based on grants, funding, and potential revenue from projected enrollments)

This may seem like a lot of information upfront, but it’s simply a high-level overview of your plan.   

Conduct an Opportunity Analysis 

The opportunity section of your business plan includes information about:  

• The problem that you’re solving within your community
• P rograms and classrooms   do you plan to market your center(s) to
• How your daycare facility fits into the existing competitive landscape  

Opportunity Analysis: An Example 

The opportunity analysis portion of your business plan is important for outlining what distinguishes your daycare from your direct and indirect competitors. It details how you can continue to expand and grow your center in the future.  

Use your previous competitive research to determine your daycare business’s competitive advantage and position. Analyze potential strengths, weaknesses, opportunities, and threats. 

Problem and Solution

Describe the problem that you are solving for your customers. Childcare centers are need-oriented, meaning your consumers have tangible pain points that you must resolve to be successful.   

So, what is the primary pain point for them? Maybe it’s that busy, working parents need a caring, safe place for their child during the day, or perhaps families are seeking after-school care options for their elementary-aged children, or maybe parents need 24-hour childcare options when they’re traveling or working odd hours.   

Now, assess how they are solving their problems currently and where there’s room for improvement. If there's only one childcare center in your community and it has no open seats, you could be the solution. Or maybe there are lots of existing care providers in your city but they’re expensive or have rigid pickup and drop-off times that working parents have trouble meeting. Or perhaps there aren’t any existing childcare businesses within a reasonable driving distance of where you’d like to place yours.  

Defining the problem you are solving for your customers is by far the most critical element of your business plan and is crucial for your daycare business’ success. If you can’t pinpoint a problem that your potential customers have, then you might not have a viable business concept.  

To ensure that you are solving a real problem, try conducting your own survey with potential customers to get a better understanding of their needs and validate that they have the problem you assume they have. Then, take the next step and pitch your potential solution to their problem.

Do they agree that it’s a good fit or does it seem to fall flat?  See how to come up with a strategic plan for your business.

The Importance of Creating an Execution Plan

The execution chapter outlines how you’re actually going to make your childcare center work . You’l l address your marketing and enrollment plans, operations, success metrics, and any key milestones that you expect to achieve.  

Execution Plan: Marketing and Sales  

The marketing and sales plan section of your business plan details how you propose to reach your target market segments, how you plan on converting those target markets, what your pricing model looks like, and what partnerships you may need to make your center a success.   

Your Positioning Statement

Once you understand your audience, the first part of your marketing and sales plan is your positioning statement. Refer back to your value proposition to create a simple, straightforward sentiment, explaining where your company sits within the competitive landscape and what differentiates your venue from the alternatives that a customer might consider. This statement should be written for an investor or loan provider, rather than for your customer.  

One daycare business plan example - a positioning statement for a 24-hour childcare center in Austin, Texas may look like this:

“For the Austin-based family who is seeking childcare around the clock, Jenny’s 24-Hour Daycare is a safe option for young children with nutritional meals, best-in-industry sleeping arrangements, a clean outdoor play area, and highly trained care professionals. Jenny’s 24-Hour Daycare is the first center of its kind within 30 miles of the Austin metroplex and offers competitive pricing and tuition payment plans.”  

Use this formula to develop a positioning statement for your center: 

Your Mission Statement

Your mission statement is a scaled-down version of your positioning statement. This should be just one or two sentences that are geared toward your target consumer and describe what your business plans to accomplish. This statement usually includes company core values that explain your daycare’s purpose and how you serve your audience.  

For example, Cadence Education is a leading early childhood education provider with the mission of “providing parents with peace of mind by giving children an exceptional education every fun-filled day in a place as nurturing as a home .”  

Pricing 

Your positioning strategy will typically determine how you price your memberships and packages. There are some basic rules that you should follow when deciding on your price point:  

• Cost-plus pricing : For the most part, you should be charging your customers more than it costs you to host them at your center to ensure your venue is profitable and appealing to investors.  
• Market-based pricing : Look at what your competitors are charging and then price based on what your audience is expecting.  

Strategic Alliances

As part of your marketing plan, you may wish to collaborate with other organizations such as local camps, after-school programs, pediatricians, or even other childcare centers that don’t offer the same activities that you do.   

This partnership should benefit both of you – it may help provide access to a target market segment for your venue while allowing your partner to offer a helpful recommendation to their customers. If you’ve already established an alliance, it’s important to detail that in your business plan.  

The operations section is all about how your business works. This portion details the essential logistics such as staffing and sourcing and fulfillment. But remember, your goal is to keep your business plan as short as possible, so too much detail here could easily make your plan much too long.  

Milestones and Metrics

It’s critical that you take the time to look forward and schedule the next critical steps for your business. Investors will want to see that you understand what needs to happen to make your plans a reality and that you are working on a realistic schedule.

Then, determine how you will measure the success of each milestone by listing out the key performance indicators and metrics needed to see progress. These will be the numbers you monitor on a regular basis to evaluate the trajectory of your business. For example, you may look at how many families tour your center each week, how many children you enroll each month, or the amount of revenue you bring in per quarter.  

Company and Management Summary

The structure of your staff and teams sets your daycare up for success. In a new daycare center, there’s typically an owner (or franchisee), a center director, staff members, an enrollment or marketing team, accounting/administration, teachers, assistants, cooks, bus drivers, and janitorial staff. For example, the average small daycare business plan includes 8-10 fully licensed and/or certified early education teachers.

Financial Forecasts  

A typical financial plan will have monthly sales and revenue forecasts for the first 12 months, and then annual projections for the remaining three to five years. Break your sales forecast down into several rows, focusing on just high-level buckets at this point.   

Knowing how much your daycare will cost to open ahead of time can save you money, stress, and time. Daycare business plan start-up expenses vary by size, enrollment capacity, and miscellaneous needs.

Keep in mind that you can save on staffing costs and cut down on overhead with technology that helps to streamline your center’s operations. After all, 40% of Millennials prefer self-service over human contact when interacting with businesses.   

It’s essential that you find ways to enable families to book tours and enroll online without ever having to make a phone call to the center- reducing time spent on necessary-but-manual tasks for both your staff and inquiring families.  

Finally, articulate your profits and losses based on the data from your sales forecast and your personnel plan plus a list of all your other ongoing expenses associated with running your childcare center.  

See this Formula for Financial Forecasts

Step 1 : Average cost of tuition per child x your expected enrollments x 12 (annual revenue – assuming each family enrolls their child in one of your summer programs).  

Step 2 : Daycare businesses make around 16% profit from their overall revenue, after daycare expenses. Multiply your number from step 1 by .16 to get your predicted profit.   

Example : Let’s say you plan to charge families an average of $315 per week for childcare. With that, your goal is to enroll 60 students by the time your daycare center opens. Multiply $315 x 60 x 12 (annual revenue). This should come out to $226,800. Lastly, multiply your revenue of $226,800 by .16, which equals a net profit of $36,288 per year.  

Consider Various Funding Sources

Depending on your situation, there’s both loan and grant funding in childcare. Between state tax credits, loans, and grants – there are financing options for a variety of situations.  

Review Your Tax Deduction Options

Collecting tax credits is one way to receive an annual deduction on daycare costs. Based on your state, you can claim tax credits for...  

Collect Daycare Grants for Your Business

Often, startup costs for opening a daycare are high. Certain states and counties offer grants for new daycare businesses. There are several grant options, depending on your child and family details.   

For example, there’s a Preschool Development Grant Program and a Head Start/Early Head Start grant to provide funding that expands early childhood centers and developmental programs.   

Know Which Loans Are Available to Daycare Business Owners

While grants are a wonderful option for freshly opened daycare businesses, loans are occasionally easier to come by. They’re offered widely and often have fewer requirements to qualify. Check out a few loan examples for your daycare center.   

• SBA Loans , otherwise known as Small Business Administration loans, have exceptional rates, low interest, and flexible repayment options.  
• SBA 7(a) Loans are beneficial for covering pricier equipment funds and real estate. Loans of up to $5 million are available to daycares.  
• SBA 504 Loans – these are wonderful for business expansions and involve a loan for 50% of the project cost.  

Take Actionable Steps to Bring Your Daycare Business to Life

Both Limited Liability Companies and Incorporations offer the significant legal advantage of helping to protect assets from creditors and provide an extra layer of protection against legal liability.  

The main difference between an LLC and a corporation is that an LLC is owned by one or more individuals, and a corporation is owned by its shareholders. In general, the creation and management of an LLC are considered simpler and more flexible than that of a corporation.  

Find the Right Vendors

Choosing the right suppliers for your business is essential. If your vendors aren’t reliable or don’t deliver quality products, your new center will struggle to attract families. As a childcare provider, you will likely need the following vendors at one point or another:  

• Electrician 
• Plumber  
• Food and Beverage Supplier 
• Educational Materials Supplier  
• Substitute Staffing Provider 
• Accountant  
• Childcare Licensing Consultant 
• Cleaning & Maintenance  
• Childcare Management System (CMS) 
• Customer Relationship Management (CRM) Software  
• Digital Payments Provider 
• Online Forms Software  
• Childcare Experience Software  

All states have different daycare licensing requirements. Generally, you'll follow the steps below.

1) Take a Course

Attend and complete a pre-application course (you’ll receive a certificate at the end – remember to save it).  

2) Submit Your Application

Submit your online licensing application. It'll ask for details about your business that were outlined in the executive summary.

3) Pay Fees

Pay your application fees. The fee depends on your center's capacity or the number of children you plan to enroll.

4) Complete Inspections

An inspection of your business property must be conducted.

5) Submit Your Service Payment

Register and pay for the inspection.

6) Conduct Background Checks

Submit background checks (this may also be an additional charge).

For More Information on How to Operate In Licensing Excellence, Listen to the Podcast Below

Choose Your Insurance and Liability

• Provide general liability – stay covered if your center has any property damage or injuries to third parties (children).  
• Abuse coverage protects your childcare business or franchise. If employees turn out to be abusive towards children, this policy covers defense costs and defends you against financial losses.  
• Professional liability insurance provides coverage for your business and workers if there is a neglect claim.  
• Hired and non-owned auto liability ensures everyone is covered if there is a pick-up/drop-off vehicle accident.  

*Liability requirements may vary by state.

How to Gain Enrollment at Your Daycare

From a business owner's perspective, the next step after successfully starting your daycare is to grow your center and gain enrollments.   

Begin by building a strong company culture, actively marketing your daycare center, and finding the right childcare technology to optimize your enrollment process and save time.  

See how to elevate your business plan for daycare with better waitlist management.

Create a Culture Where Staff Want to Work

A daycare center that stands out from the rest has happy staff members that want to work hard. Create a diverse employee culture that feels comfortable openly talking about situations. Provide support, patience, and room for growth. See more tips for creating a healthy and positive culture for your daycare staff .  

Market Your Center

A daycare marketing strategy starts with an achievable goal. Do you want to fill your enrollment spots? Do you want to build a waitlist? Should you focus on scheduling more tours or gaining new leads ?   

Choose a goal with measurable results. That way, you can track and analyze your marketing performance. When it comes to how to promote daycare business, marketing helps families realize you're the best childcare center on the block. Promote your centers through...

• Social media (especially Facebook – 83% of Millennials have a Facebook account).  
• Landing pages and contact forms on your website  
• Listing directories  
• Email and text marketing campaigns  
• Referrals  
• Digital advertisements  
• Flyers  
• Word-of-mouth marketing  

Tip: childcare experience software that automates the reports you need helps you to save time and improve your return on investment (ROI).  For example, a  Source of Families report shows you where your leads are coming from to optimize your efforts.

Invest In Childcare Experience Software to Build Your Daycare with Less Work  

LineLeader is revolutionary childcare software that automates lead capture, follow-up, scheduling tours, and reports. Craft  beautiful, personalized marketing campaigns to continually grow your business.  Plus, easily manage your curriculum, attendance, and billing with automated center management

Get more from your marketing while saving franchisees 10 hours every week with LineLeader. Automate everything from lead capture and reporting to center management—all from one place.

Download Your Guide

Resources to help you run your childcare business.

5 Activities to Celebrate Juneteenth with the Children in Your Center

4 Fun-Filled Ways to Celebrate the Fourth of July with Children

Crush the Competition With Effective Competitor Analysis

Additional resources.

For more information on specific childcare resources regarding marketing tools, campaigns, tips, and best practices - see below.

1. Learn hidden secrets no one tells you about starting a childcare business .

2. See how to operate in childcare licensing excellence to boost enrollment.

3. Beth Fiori of Tiny Treasures provides expert tips. check out ways to improve your business plan for daycare with enhanced waitlist management.

4. Discover tips to maintain the best childcare center on the block.

5. Gain advice for strengthening your daycare staff culture. 

6. Learn the benefits of building a daycare business plan , at a glance. 

LineLeader Video Resources

Capabilities

How to prepare a daycare business plan.

So you have this idea to start a daycare business . You love working with kids and are good at it. Plus, what could be more fulfilling than raising up the next generation of world changers? It sounds like a dream job!

But building a successful daycare business takes more than passion. You’ll also need a business plan. 

Let’s take a look at five steps you can take to create a daycare business plan. 

Why You Need a Daycare Business Plan

Nobody is going to force you to create a daycare business plan. Yet we highly recommend creating one. 

There are two main reasons::

• It helps you stay organized: There are a lot of things you could do to start a child care business. Your business plan will help you concentrate on what you should do to launch it effectively. It’s an organizational tool that will keep you focused on what’s most important.
• It aids in getting funding: A child care business plan also can help secure financial backing . Potential lenders will want to know about your business and, more importantly, how you’ll pay them back. A business plan will give them this information.

Write Your Daycare Business Plan in 5 Steps

The phrase “business plan” can be kind of intimidating. But crafting one for your child care center doesn’t have to be scary. Just follow the five steps below:

1. Executive Summary

Daycare business plans contain a lot of information. To make things easier on your business partners, future employees and potential lenders, start your plan with an executive summary.

The executive summary section of your business plan is exactly what it sounds like: a quick summation of all the information to follow. For example, your summary should include basic things such as your business name and contact details. It should also include a glimpse into your vision, such as how you’ll run your business and who your target customers are.

Basically, if it’s important, you should quickly mention it in your executive summary.

Write your executive summary after you’ve written the rest of your daycare business plan. This will make the process much easier. Just remember to put your summary at the beginning once it’s done.

2. Business Information

The next section of your daycare business plan should cover business information.

Why are you starting a daycare business and what’s your mission statement? Do you have specific goals you hope to achieve? Will your company be structured as a corporation, LLC, partnership or sole proprietorship? And what child care services will you provide? 

You also should share your child care center’s physical location. Are you planning to start an in-home business or will you rent a commercial space? In-home operations often are cheaper to establish and maintain, but don’t have the same income potential as full centers.

Additionally, list information regarding your competitors. How many other daycares are there in your area? Do any of them provide similar services? If so, are there enough families to support all of you? Include any information you can glean about their operations.

3. Operational Plan

How do you plan to run your child care business? Will you hire employees ? If so, what will their responsibilities be? This is all important information to include in your daycare business plan.

Don’t get overwhelmed, though. If you’re still in the early planning stages, you don’t have to have every detail ironed out yet. You can always update your business plan in the future. In fact, your plan should be a living document that grows with your business.

For now, just include as many operational details as you can. For example, if you’ve created policies and procedures for specific scenarios, or a handbook detailing your daycare’s approach to child care, add them to this section of your business plan.

4. Financial Details

Your daycare business plan definitely should include financial details, especially if you plan to approach lenders for a loan. They will absolutely require these details.

You’ll need to include information regarding start-up expenses , such as the cost to renovate your building and purchase equipment/necessities like toys, cribs and curriculum. You’ll also need to estimate ongoing expenses like the cost of utilities, food and your marketing efforts.

Next, estimate the money your business will bring in. What will you charge for your child care services? How many kids can you watch at one time? How much will you pay your employees? Use this information to develop an approximate monthly income.

Finally, include information regarding your current financial situation and any grants and donations you’ve received. 

If it has to do with money, put it in this section.

5. Marketing Strategies

Lastly, your daycare business plan should include your marketing strategy. How will you attract parents to your company and entice them to pay for your services? 

Start this section by outlining your target audience. Include demographic information like their approximate age, where they live and their household income level. If you plan to target a specific niche — kids with special needs, for example — add this information as well.

Once your ideal customer is defined, explain how you plan to reach them. We suggest a mix of online and offline marketing strategies. For instance, you could pass out flyers at local events and set up sandwich boards around your location. You could also invest in social media marketing and SEO campaigns to drive online traffic to your website .

There are plenty of ways to market your new business. Over time you’ll discover which are most effective. But for now, include every strategy you want to try.

Your Turn: Prep Your Daycare Business Plan

As long as your business plan has the information outlined in this article and is structured in an easy-to-understand way, your plan will do what it’s supposed to: keep you organized and help you secure funding.

So don’t be intimidated. Dive in and create a business plan that you can be proud of. Your child care business will be stronger because of it.

Once your daycare is up and running, Procare Solutions can help you fulfill the goals laid out in your plan.

Procare’s software helps you manage every part of your child care business, from tracking attendance to accepting payments to engaging with parents. All of our tools are designed to streamline tedious tasks so you can focus on what you do best: caring for kids.

Request a Demo

Request a demo and talk with one of our friendly Procare experts to get a tailored child care solution for the unique needs of your business.

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2024 Child Care Management Software Industry Trends

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• Business Type Business Type In-Home Child Care A Child Care Center Multi-Center or Franchise Centers School District Before and After School Program
• Role Role Owner Director Assistant Director Administrator CPA/Bookkeeper Teacher Parent Educator Consultant Other
• Center Status Center Status An Established Center A New Center - Opening Soon Current Procare User Other
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ABOUT THE AUTHOR

Procare provides comprehensive child care management software with the power to help you take control at every point of your business.

Related Resources

Full guide to starting your own in-home daycare.

If you’re interested in starting your own in-home daycare business, this is the guide for you. We’ve created a step-by-step roadmap to help you.

Child Care Marketing: Our Approach

One of the best ways to help more children and grow your center is through a strong marketing effort. Come learn about our approach and use it to grow your business.

How to Start a Daycare in 2021

Times are changing, but child care remains a priority need in 2021. Come learn how to fill this need and answer the question, “How do I start a daycare center?”

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!

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How to Start a Nonprofit Daycare

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Nonprofit daycare centers are run similarly to daycare centers that operate for profit. The major difference is that nonprofit daycares are eligible for grants and other funding, and they are exempt from state and federal taxes. Nonprofit daycares are also required to be governed by a board of directors made up mostly of parents. All of the money collected from parents and other sources must be invested in the organization and the service it provides to children and families. Start a nonprofit daycare by obtaining funding and making sure you comply with all of the guidelines set forth by the Internal Revenue Service (IRS).

• File nonprofit articles of incorporation with the state in which you are establishing the daycare. You can get the appropriate forms and guidelines from the Secretary of State.
• Include the name and address of your nonprofit daycare in the articles of incorporation, as well as the purpose of starting it. Describe who you will serve and how the daycare will be run and governed.

• Show the IRS or other relevant Tax office that your services are available to the general public so that parents can look for or keep employment.
• Include your articles of incorporation, information on how much you charge for daycare services, the number of students you serve and your curriculum.

• Obtain a list of grant opportunities from your local Childcare Resource and Referral Agency. Visit www.childcareaware.org and enter your zip code. You will get the contact information for your agency, and they can give you a list of grants available in your area.
• Inquire about grants and funding opportunities from your local United Way, Community Foundation and other organizations which give grants.

• Promote your daycare center as a nonprofit organization. This might help you recruit parents who cannot afford private daycare.

Community Q&A

• Work closely with an attorney and an accountant. These may be Board members or people you hire professionally. You will need to be transparent about all of the money your daycare earns, and how you spend it. There are reporting requirements and legal issues that will need your attention. Thanks Helpful 0 Not Helpful 0
• Consider writing and posting a mission statement. Most nonprofit organizations use a mission statement to explain why they exist. Yours might focus on providing affordable childcare to all members of your community. Thanks Helpful 0 Not Helpful 0

Things You'll Need

• Articles of Incorporation

You Might Also Like

• ↑ https://bizfluent.com/how-4812417-start-nonprofit-child-care-center.html
• ↑ https://www.irs.gov/forms-pubs/about-form-1023
• ↑ https://www.councilofnonprofits.org/tools-resources/compensation-nonprofit-employees
• ↑ https://bizfluent.com/grants-nonprofit-daycares-5783.html
• https://www.childcareaware.org/

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Day Care Business Plan

Start your own day care business plan

Safe Kids Child Care

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

There are an increasing amount of families who have become dependent on two incomes, which has created the necessity of the child care industry. Increasing need means that there are more children that are in need of a safe enriching place to go. 

Safe Kids Child Care will succeed by offering its clients’ children a safe and secure care environment, and close personal attention. The goals of the center are dual-sided: to help parents feel good about the care of their children, and to make it a safe, educational, and fun experience for the child. 

Safe Kids Child Care has a focus on meeting the local need for child care services within the 10-mile radius of Lynn. Children are taken in flexibly on either a full-time or part-time basis.

Competition

There are over 300 child care providers in the local area. The larger commercial chain child care centers, such as KinderCare, have a majority of the market share. These larger chains compete well because of a good reputation among the consumer market. Safe Kids Child Care offers a lower staff to child ratio, which is appealing to most parents. Additionally, the company maintains child care fee levels that are 5-10% below the average of that of the large commercial chain child care fees.

 Safe Kids Child Care offers a lower staff to child ratio, which is appealing to most parents. Additionally, the company maintains child care fee levels that are 5-10% below the average of that of the large commercial chain child care fees.

Expectations

Safe Kids is an exciting opportunity that provides safe and secure child care to the Lynn, MA neighborhood. Safe Kids will reach sustainable profitability over the next three years. Through a combination of well-priced services, outstanding customer service, and a well seasoned management team, Safe Kids will quickly gain market share and a reputation as a premier child care provider.

Financial Highlights by Year

Financing needed.

We plan on having $40,000 to start our business. Each owner will contribute $20,000 to our opening costs. 

Problem & Solution

Problem worth solving.

The child care market is quite competitive in the Boston area. There are over 300 different facilities. There are two general types of facilities. The larger style is commercially run, typically a corporate franchise center. These facilities are both regional and national. Currently, the four largest child care facilities in the USA account for 29% of the market. There are also many different smaller locally run and owned faculties. While the largest facilities can host between 20-100 children, the locally run centers typically have a maximum capacity of 20 children.

Target Market

Market size & segments.

Full-Time Working Couples

The company wants to establish a significantly large full-time regular client base in order to establish a healthy, consistent revenue base to ensure stability of the business. Customer relations are extremely important, as it is imperative to keep the parents pleased in order to keep their children in the daycare center.

Part-Time Workers / Drop-Ins

Part-time workers and drop-ins comprise approximately 20% of revenues. While this market is not the primary focus, sufficient flexibility to handle this secondary market is important to producing supplemental revenues.

Current Alternatives

Our advantages.

Child care competitive edge is the facility’s efforts in obtaining all appropriate licensing and certifications. Additionally, thorough pre-hire background screenings are performed on all individuals before hired for employment.

Keys to Success

Keys to success for the company will include:

• Maintaining a reputable and untarnished reputation in the community. 
• Quality care. 
• Competitive pricing. 
• Flexible hours.

Marketing & Sales

Marketing plan.

The differentiating effort will be benchmarked customer service. A customer-centric philosophy will be infused within the entire organization. Safe Kids will spend extra money to attract and train the best employees. This is especially important because it is the employees that interact with both the children and parents and will have the best chance to impress them enough to turn them into a loyal customer as well as to be vocal in telling their friends about their positive child care experience. 

We will have a Social Media Campaign which uses Facebook and Linked in. We will have experts answer child care questions if the public wants. This gives the public confidence that we know what we doing. We will have customer reviews and allow our customers to talk to us. 

Safe Kids Child Care will make a significant profit through the excellent care of children. Even though Safe Kids charges less, the company will see profit within the first year due to beneficial word-of-mouth advertising. The company expects to double its’ clientele every six months, for the first 18 months.

Locations & Facilities

The facility will originally consist of a 1,300 sq. ft. house in a quiet, residential neighborhood. The yard will be fully fenced in, to ensure no one can either come in or wander away. The yard will be furnished with safe, entertaining toys, as well as a sandbox.

Milestones & Metrics

Key metrics.

Our Key Metrics are: 

• Facebook page views, Twitter re-tweets, and new potential clients calling saying that a current client referred them. 
• The number of children we take care of daily 
• The number of children that are signed up for the monthly care 
• The amount of training our staff has to take care of children and keep incidents down to zero. 

Ownership & Structure

This business will start out as a simple proprietorship, owned by its founders. As the operation grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will better suit the future business needs.

Management Team

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

Our key assumptions are: 

• There are children from families where both parents work or need to work. The children need somewhere safe and enriching where they can grow and make friends while their parents get a chance to get back to him.
• Adults sometimes have emergencies and they need to have a place to leave their children when they can’t be with them 
• The community appreciates the it takes a village mentality. They appreciate we have resources and experts that will answer their questions. We assume they will come to us if they need help, we won’t go out of our way to advise. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Our Start-up Expenses are $3000 including: 

Legal $1,000

Brochures $350

Stationery etc. $100

Activity Supplies $250

Food Preparation Supplies $300

First Aid Supplies $200

Cleaning Supplies $150

Nap Time Bedding $250

Sources of Funds

Our two owners will put up 20,000 dollars each, totaling 40,000. 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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How to start a daycare business in California in 11 steps

According to the Center for American Progress, before the COVID-19 pandemic, nearly 25% of children under five attended daycare. And, the changing nature of work will create gaps in the marketplace that childcare businesses can fill. Read on to avoid the pitfalls that cause 50% of small businesses to fail and learn how to make your daycare successful .

1) Choose home daycare or daycare center

Home daycares have fewer regulations, lower startup costs, and more individual attention. On the other hand, daycare centers serve more children with a larger staff and potentially make more revenue.

2) Create a daycare business plan

Ask yourself these questions before you start a business :

• Executive Summary: How would you describe the business and your potential success?
• Overview: What are the business's key attributes?
• Industry Analysis: What does market research reveal about the daycare industry?
• Competitive Analysis: What are your competitors' strengths and weaknesses?
• Marketing: What is your marketing strategy?
• Management: What skills do you bring to the business?
• Operations Plan: How will you manage the day-to-day tasks?

3) Find your daycare niche

Your niche is your daycare's area of focus that sets it apart from competitors. A niche helps your ideal clients find you. For example, you might start a Montessori, school-age, or Waldorf daycare.

4) Uncover your unique selling proposition (USP)

After you pick a niche, your USP communicates your specific distinction from your competition. For example, your childcare program may have the USP, "Montessori Preschool for Children 3 to 5." USPs make daycares referable, memorable, and targeted.

5) Pick your daycare business name

A good name marries your niche and USP in a creative way that draws clients. It can be as simple as "Sacramento Montessori Daycare" or colorful as "Magic Montessori Minds Preschool." To find the name, check your competition, use a business name generator , or brainstorm with friends and family.

6) Choose your daycare location and supplies

For entrepreneurs starting daycares in their own homes, this step is done. If your business is outside the home, you'll need to hunt for a child care facility. Suitable candidates for your center include local businesses, churches, schools, and recreational centers. Before you lease a building, check zoning laws. After you pick a place, add these items to your shopping list:

• Education technology
• Miscellaneous supplies

7) Figure out your financial plan

Take a look at these ways to fund your venture:

• Credit lines
• Crowdfunding
• Friends or family

8) Licensing

If you only plan to provide care for your own children (or relative's children) and one other family, you don't need a license. Otherwise, your child care business will be licensed by the Childcare Licensing Division (CCLD) of the California Department of Social Services. The licensing requirements and classification differ based on the number of children that you have:

• Home daycare with 1 to 8 children : Small family child care home
• Home daycare with 9 to 14 children : Large family child care home
• Daycare center with 1 or more children : Child care center

For all three types of daycares, the same four-step application process applies for child care licensing, and you'll find that below.

a) Step 1: Attend an orientation

The licensing agency requires you to attend an online orientation or in-person one before applying in the state of California. Orientation costs a non-refundable $25 for home daycares and $50 for daycare centers. To register for an online orientation, go here . For in-person orientation, the regional Community Care Licensing Offices are temporarily closed because of the pandemic (check the status of Community Care Licensing Division regional offices here ).

b) Step 2: Submit your application

Applications for potential licensees may include:

• Applicant: Name, address, phone number, and other basic info
• Children: Number of children and ages whom you'll care for
• Criminal records: Owners, residents, and employees 18 or older must complete criminal background checks, child abuse checks, and Live Scan fingerprinting
• Education/Training: Owners and employees may have to prove child development education and pediatric CPR, first aid, and other training.
• Experience: Owners and employees may have to prove prior experience, such as the one-year requirement to move from a small family child care home to a larger one.
• Home/Facility: Fire marshal approval and a sketch of the daycare may be required
• Health: Proof of tuberculosis clearance and vaccinations

You can find a detailed application fee schedule here , and the non-refundable fees for the first three levels are:

• Home daycare with 1 to 8 children: $73
• Home daycare with 9 to 14 children: $140
• Daycare center with 1 to 30 children: $484

c) Step 3: Prepare for Inspection

Before licensing, you must schedule a time with the state. To get ready, check out the home daycare readiness guide or the daycare center readiness guides .

d) Step 4: Await approval

The process from start to finish can take 60 to 90 days, so there's a bit of hurry up and wait. However, the licensing agency will inform you of approval or denial within 30 days of a completed application. If denied, they'll tell you how to fix the situation.

9) Get your paperwork in order

While you're getting your licensing, you'll be performing these errands too.

a) Register your daycare with the state

Pick a type of business structure for your child care services business, such as sole proprietorship or corporation, and then register with the state .

b) Apply for your free EIN

Your Employer Identification Number (EIN) identifies your business for taxes.

c) Get daycare business insurance

Below are key coverages to insure your daycare:

• Workers' compensation : Protects your employees if they get sick or injured while working in your daycare business.
• General liability insurance : Protects your daycare business if you're sued for an injury or property damage claim.
• Accidental medical: Protects a child (activity participant) who gets injured at your daycare by paying medical costs.
• Property insurance : Protects your daycare equipment.
• Commercial auto insurance : Protects vehicles that are used for business purposes.

d) Draft a contract

Your contract should outline concerns like payment, pick-up times, and sick children. Hire a contract lawyer or buy a template from a legal website.

10) Hire your first employees

As soon as you add your first team member, you'll need workers' compensation insurance to operate legally.

11) Spread the word about your new daycare business

Take a glance at these winning ways to market your daycare:

• Google and Yelp
• Social media
• Word-of-mouth
• Loyalty program

Bonus: Check out these resources for running a successful daycare business

• Department of Social Services (DSS): This provider page is the best place to start, and it lists services for every step of the process, including state licensing, legal help, and financial assistance (homepage at cdss.ca.gov).
• California Child Care Resource and Referral Network: It's a one-stop-shop for everything related to the quality of the California childcare system.
• Californians for Quality Early Learning: The organization trains and supports childcare providers so early learners can have top-tier education.

Want to move your daycare from a dream to reality? You can move one step closer with business insurance from Huckleberry in just a handful of minutes. (Getting a quote is free, easy, and 100% online.)

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How to Start a Daycare in Louisiana

Learn what licensing requirements you need to start a daycare in Louisiana.

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• Running a business

If you’re passionate about educating young children or have several years of experience caring for children, you’ve probably considered starting a daycare. However, your passion and entrepreneurial streak may not suffice to successfully get your business off the ground. Before operating, your childcare center must meet certain licensing requirements and state health and safety codes.

This article covers the childcare licensing requirements in Louisiana, the application process, and what you’ll need to stay compliant.

Do I need a childcare license in Louisiana?

One of the first steps to starting a daycare business is to create a comprehensive business plan and obtain the proper childcare license or register with the Louisiana Department of Education .

The Louisiana Department of Education defines a child daycare center as “any facility that provides care to seven or more children on a regular basis for at least 12.5 hours a week”. All center-based childcare providers in Louisiana must be licensed before starting operations. Operating without a valid license “may result in fines imposed by the department to a maximum of $1,000 per day for each day of such offense”. License-exempt care providers include public or private day schools serving children in kindergarten, grade one and above, and camps and all care provided without charge.

The types of child care center licenses you can apply for include the following:

Type I license 

This license is issued to a daycare center owned or operated by a church or religious organization qualified as tax-exempt under Section 501(c) of the Internal Revenue Code and receives no state or federal funds directly or indirectly from any source.

Type II license

This license is issued to early learning centers that either receive no state or federal funds directly or indirectly from any source or whose only source of state or federal funds is from the U.S. Department of Agriculture’s food and nutrition programs.

Type III license

This license is issued to an early learning center that directly or indirectly receives state or federal funds from any source other than the federal food and nutrition programs.

You can also offer home-based/ in-home child care or family child care (FCC) in Louisiana. While you may not require a license, you must register and apply for a certificate from the Louisiana Department of Education. A home-based provider cares for a child in the child’s home, while a family child care provider cares for up to six children in the provider’s home. After registration is complete, you’ll need to become certified with the Child Care Assistance Program (CCAP) . The CCAP provides financial assistance to low-income families, helping them access high-quality child care while working or attending school.

Childcare licensing requirements in Louisiana

Below are the state licensing requirements in Louisiana:

Director qualifications 

• Must be at least 21 years of age
• A bachelor’s degree from a regionally accredited college/university with at least six credit hours of child development or early childhood education and one year of supervised childcare experience in a licensed center or comparable setting 
• A Child Development Associate (CDA) credential, which includes practicum and one year experience in a licensed center
• An associate’s degree in child development or a closely related area and one year of supervised childcare experience in a licensed center or a comparable setting
• One year of experience as a director or staff in a licensed child care center plus 12 credit hours in child care, child development, or early childhood education. Fifteen “clock hours” may be substituted for each three credit hours
• A diploma from a vocational childcare training program approved by the Board of Regents or equivalent plus one year of supervised childcare experience in a licensed childcare center or comparable setting
• The National Administrator Credential as awarded by the National Child Care Association, and one year experience in a licensed childcare center or comparable setting
• A certificate of completion from the International Correspondence School and one year of experience in a licensed childcare center or comparable setting
• A certificate of completion from the Professional Career Development Institute and one year of experience in a licensed childcare center or comparable setting

Childcare center ratio requirements

Below are the staff-to-child ratio requirements regarding infants, toddlers, preschoolers, and school-aged children: 

• One teacher for 10 children (if no more than two children under age two) (1:10)
• Two teachers for 10 children (if three or more children under age two) (2:10)
• One teacher for six non-walkers and toddlers below 12 months (1:6)
• One teacher for eight toddlers between 12 and 23 months (1:8)
• One teacher for 12 children from two years old to three years old (1:12)
• One teacher for 14 children between three and four years old (1:14)
• One teacher for 16 children between four and five years old (1:16)
• One teacher for 20 children between five and six years old (1:20)
• One teacher for 25 school-age children six years and older (1:25)

Fees requirement

You’re required to pay all fees to the Louisiana Department of Education via its electronic payment system. All fees are non-refundable. 

Administrative fees 

You’ll pay an administrative fee of $25 for initial licensure. This fee will be applied to the total licensure fee, due before issuing an initial license. Also, you’ll pay an administrative fee of $25 for any change requiring the issuance of a new license or the reissuance of a current license—for example, changes in the facility’s name, capacity, age ranges, and transportation.

Annual licensure fees 

You’re required to pay the full licensure fee based on licensed capacity. The annual license fees are below:

• 15 or fewer children: $25
• 16 to 50 children: $100
• 51 to 100 children: $175
• 101 or more children: $250

You must pay all fees by certified check or money order to the Department of Social Services. Childcare facilities owned or operated by a religious organization or church are exempt from annual license fees.

Approval requirements

Before issuing a license, the bureau will require these daycare center approvals:

• Office of State Fire Marshal approval
• Office of Public Health approval
• City fire approval, if applicable
• Zoning approval/certificate of occupancy, if applicable
• Academic approval by the department, if applicable
• Licensure inspection verifying compliance with all minimum standards
• Child Care Criminal Background Check (CCCBC)-based determination of eligibility for child care purposes from the department for all owners, operators, and staff
• Written documentation establishing ownership of the center

Childcare license application in Louisiana

Follow the below steps to complete your license application:

Step 1: Check zoning and building ordinances

Before purchasing or leasing a building for your daycare center, check the local zoning and building ordinances where you plan to set up the business. Ensure you obtain the required authorization from the Office of Public Health , Office of the State Fire Marshal , Sanitation Services, and Code Enforcement and Building Safety .

Step 2: Complete and submit the application form

The next step is to complete the license application form . The completed application should indicate “type I license” unless you’re applying for state or federal funding. The application form includes the following:

• Important notes about the initial application fee, change of daycare ownership licensure, license renewals, and mode of payment for all fees
• Type of license: Initial application or renewal, change in ownership, change of director, or change of location
• Center information: Center name, location address, mailing address, phone numbers, and email address
• Organizational structure and owner’s details
• Appointed director’s details
• Director designee details
• Three personal references for the director and director designee
• Funding source
• Services: All day, half-day, night time care (after 9 pm), and transportation
• Center operations: Licensed capacity, number of buildings used by children, age range, months open during the year, days available during the week, and hours open
• Declaration statements
• Disclosure form for background information

After completing the application, return the form to the Bureau of Licensing.

Step 3: Await inspection and approval

After receiving your application, the Bureau of Licensing will request required local agencies, including the Office of Public Health, Office of the State Fire Marshal, and Office of the City Fire Department (if applicable), to inspect the daycare location. Remember, it’s your duty to ensure you obtain these inspections and approvals. 

Next, a licensing specialist will visit your facility to conduct a licensing survey. Finally, after receiving all relevant approvals, the bureau will issue a license on an initial application. After receiving your license and choosing a name for your business, you can start marketing your daycare in the community.

How to stay compliant with a daycare license in Louisiana

Securing your license will get your business off the ground, but staying compliant will keep your daycare operating smoothly without interference from the authorities. Below are ways to remain compliant.

Renew your license in time

The department determines how long your license is valid. Ensure you renew your license before the last day of the month the running license expires; otherwise, it won’t be renewed, and your daycare will cease operations. You’ll need current approvals by the Office of State Fire Marshal, Office of Public Health, and annual licensing inspections by the department for a renewed license.

Do not transfer a license

Complete a new application form before changes in location or ownership. Your license only applies to the area for which it was issued. It’s not transferable from one owner or location to another. Your license will be automatically revoked if location or ownership changes.

Communicate relevant changes

You must notify the Bureau of Licensing in case of any changes that may affect your license. For example, a change in the space occupied by children and the age range or the number of children you serve.

In specific cases, the Secretary of the Department of Social Services may waive compliance for certain changes after determining that the economic impact is significant enough to make compliance impossible. Also, compliance may be waived if it doesn’t put the health and well-being of the staff and children at risk and if the facility meets or exceeds the intended expectations and standards.  

Opening a center-based childcare business or starting a preschool at home can be overwhelming. However, handling the various administrative aspects like enrollment, reporting, and record keeping doesn’t have to be complicated. A tool like brightwheel’s center management feature will help you simplify your administrative tasks and save you time.

Funding resources for your childcare business

As you go through the licensing process, you may come across grants or other funding resources that can help fund your childcare business. A grant is an often overlooked financial resource given by a government agency or private foundation that does not need to be repaid. This makes them an attractive funding option if you are looking to expand or enhance the quality and accessibility of your program. Grants provide funding that can be used towards a variety of purposes, such as improving facilities, purchasing new equipment or materials, or offering professional development opportunities for staff. The available resources vary by state so it is crucial to research and understand the grants for childcare providers in Louisiana to make informed decisions about which ones to apply for.

Start a daycare in Louisiana

Starting and operating a daycare in Louisiana requires obtaining the right license for your program and staying compliant with all licensing regulations. With proper planning, preparation, and due diligence, navigating the requirements can be a smooth process. 

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