Falling leaves. Falling prices 🍂 70% Off for 3 Months. Buy Now & Save
70% Off for 3 Months Buy Now & Save
Wow clients with professional invoices that take seconds to create
Quick and easy online, recurring, and invoice-free payment options
Automated, to accurately track time and easily log billable hours
Reports and tools to track money in and out, so you know where you stand
Easily log expenses and receipts to ensure your books are always tax-time ready
Tax time and business health reports keep you informed and tax-time ready
Automatically track your mileage and never miss a mileage deduction again
Time-saving all-in-one bookkeeping that your business can count on
Track project status and collaborate with clients and team members
Organized and professional, helping you stand out and win new clients
Set clear expectations with clients and organize your plans for each project
Client management made easy, with client info all in one place
Pay your employees and keep accurate books with Payroll software integrations
FreshBooks integrates with over 100 partners to help you simplify your workflows
Send invoices, track time, manage payments, and more…from anywhere.
The ultimate guide to starting a daycare business.
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:
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.
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.
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.
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 .
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.
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.
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.
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:
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.
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!
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:
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.
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.
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.
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.
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.
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.
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.
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:
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.
RELATED ARTICLES
Save Time Billing and Get Paid 2x Faster With FreshBooks
Get more great content in your Inbox.
By subscribing, you agree to receive communications from FreshBooks and acknowledge and agree to FreshBook’s Privacy Policy . You can unsubscribe at any time by contacting us at [email protected].
From: Department of Finance Canada
The Government of Canada is focused on making life more affordable for Canadians. Since the spring budget, the federal government has signed Canada-wide early learning and child care agreements with 9 provinces and 1 territory — to help a majority of young Canadian families save thousands of dollars per year, starting next month.
The Government of Canada is focused on making life more affordable for Canadians. Since the spring budget, the federal government has signed Canada-wide early learning and child care agreements with 9 provinces and 1 territory — to help a majority of young Canadian families save thousands of dollars per year, starting next month.
In Budget 2021, the government laid out a plan to provide Canadian parents with, on average, $10-a-day regulated child care spaces for children under six years old, within the next five years, including a 50 per cent reduction in average fees by the end of 2022.
The government’s significant $30 billion investment, over five years, in early learning and child care will help Canadian families afford the cost of living, and ensure every child has the best start in life. This includes $2.5 billion for Indigenous early learning and child care.
This is an economic issue as much as it is a social issue. The government’s plan to build a Canada-wide, community-based early learning and child care system will create new jobs and growth, and get parents — especially mothers — into the workforce. Affordable child care is estimated to raise real GDP by as much as 1.2 per cent over the next two decades.
As of the Economic and Fiscal Update 2021, the government has entered into agreements with 9 provinces and 1 territory.
As part of these agreements, the Canada-wide early learning and child care transfer payments from the federal government to the provinces and territories will increase from $3.0 billion in 2021-22 to $7.7 billion in 2025-26.
Province/Territory and Date Agreement Announced | Amount of Federal Investment (5 Year Allocation, $ millions) | Estimated Average Savings per Child with 50% Average Fee Reduction (gross, annual) | Estimated Average Savings per Child at $10/day (gross, annual) | Child Care Spaces to be Created | Estimated Early Childhood Educator Jobs to be Created | ||||
---|---|---|---|---|---|---|---|---|---|
July 8, 2021 | $3,212 | $6,000 (by end of 2022) | $9,390 (by end of FY 2025-26) | 40,000 | 8,000 to 10,000 | ||||
July 13, 2021 | $605 | $4,690 (by end of 2022) | $6,780 (by end of FY 2025-26) | 9,500 | 1,900 to 2,375 | ||||
July 23, 2021 | $42 | Yukon committed to a $10/day average fee prior to Budget 2021 | $7,300 (achieved) | 110 | 22 to 28 | ||||
July 27, 2021 | $118 | $3,390 (by end of 2022) | $4,170 (by end of 2024) | 452 | 90 to 113 | ||||
July 28, 2021 | $306 | $5,090 (by end of 2022) | $7,560 (as early as January 2023) | 5,895 | 1,179 to 1,474 | ||||
August 5, 2021 | $5,964 | Not applicable | Not applicable | 37,000 | 7,400 to 9,250 | ||||
August 9, 2021 | $1,201 | $2,610 (by end of 2022) | $2,610 (by end of FY 2022-23) | 23,000 | 4,600 to 5,750 | ||||
August 13, 2021 | $1,099 | $3,910 (retroactive to July 2021) | $5,220 (by end of FY 2025-26) | 28,000 | 5,600 to 7,000 | ||||
November 15, 2021 | $3,797 | $5,610 (January 2022) | $8,610 (by end of FY 2025-26) | 42,500 | 8,500 to 10,625 | ||||
December 13, 2021 | $492 | $3,910 (by end of 2022) | $5,220 (by end of FY 2025-26) | 3,400 | 680 to 850 | ||||
Outstanding Agreements as of December 14, 2021 | |||||||||
Update December 15, 2021 | $51 | $4,950 (by end of 2022) | $7,300 (by end of FY 2025-26) | 300 | 60 to 75 | ||||
NU | $66 | $4,950 | $7,300 | ||||||
ON | $10,235 | $5,960 | $9,320 | ||||||
National Canada-wide early learning and childhood allocations are calculated based on projected 0-12 child population and include base funding of $2 million per province/territory per year. |
Update The Governments of Canada and the Northwest Territories also announced an agreement shortly after the Economic and Fiscal Update 2021.
COMMENTS
Owning a daycare in Canada can be profitable, but it is dependent on a number of factors, including the location, the size of the daycare, and the demand for childcare services in the area. Before starting a daycare business, conduct market research and develop a solid business plan to ensure that it will be financially viable.
Yukon. To legally operate a family daycare home in Yukon, you can apply for a 1-year license by submitting a licensing package to the Yukon Government. To obtain this package, email [email protected], or telephone 867-667-3492.
If you are planning to provide daycare or child care services, you can email the Ministry of Education to confirm whether you need to be licensed. In your email, include the following information about your program: description of the program, equipment and facilities. hours of operation.
Nunavut - for at-home daycare centres, submit the Application for a Child Care Facility License. Ontario - get a licence from the Ministry of Education if you plan on taking care of more than five children (13 or fewer). Prince Edward Island - get a licence from the PEI Early Learning and Child Care Board.
Writing a business plan will help you to identify your ideal customers and make clear your specialized services. To help you get started we've created an example business plan for a childcare business. Our example focuses on a company that offers a daycare enrichment program, but it will work as a framework no matter what childcare services ...
1. Understanding the Daycare Industry in Ontario. Before you can start a daycare center, it's important to understand the industry and the regulations that govern it. In Ontario, a license is required for any child care program that provides care to more than five children younger than 13 years old.
Some of the information to include in the business overview is: Business legal name and trade name. Nature of the business to be done. Vision and Mission. Core values of the business. Business goals and objectives. Additionally, include details on your daycare concept and brand that you want to bring to market.
The Canada-wide Early Learning and Child Care Plan aims to build a community-based early learning and childcare system to improve access to high-quality, affordable, flexible and inclusive early learning and childcare. It has a community effect, as reasonably priced childcare is estimated to raise real GDP by as much as 1.2% over the next two ...
4. It is desirable that daycare owners have at least a high school diploma Child Development Assitant (CDA) To be certified as a Child Development Assistant (formerly Level One ), you need to have completed one of the following: •Child Care Orientation Course •CCS 3110, 3120, 3130, 3140 and 3150 through Alberta high schools CTS program or
The three primary elements that create a successful daycare are: Full enrollment. All fees are collected on time and in full. Revenue exceeds overall costs-per-child. Daycares that manage to achieve all three elements are essentially guaranteed to operate successfully. Keep these three focuses in mind as we proceed to discuss the specific ...
Starting a daycare business in Canada is an exciting venture for those passionate about child care and education. This blog will guide you through the essential steps to establish your daycare business in Canada and explain how it can qualify under the C11 work permit. If you're considering this path and need legal advice or assistance, scheduling a consultation with Lawtiq.com at the end of ...
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.
A compelling & detailed pre-written Daycare business plan template in WORD. A full & automatic Daycare financial plan model in EXCEL you can easily customize. Customized text tailored to the daycare business. The ability to paste advanced charts and tables within a click. No accounting or specialized financial knowledge needed.
We are Canada-based business plan professionals and have helped hundreds of daycare business to secure funding for over 13 years. We bring decades of combined experience in helping start-up childcare centres plan their business and secure business loan financing from Canada's leading banks and financing organizations.
The executive summary is the first impression potential investors will have of your daycare business plan, so it's crucial to make it count. This section provides a concise overview of your entire plan and should highlight the key points that make your daycare stand out. Begin with a powerful mission statement that captures the essence of ...
This seems simple, but it does take a lot of work and persistence to get results. To distill this process into 5 broad business categories for your daycare business plan: Understand your target customers. Identify the need of your target customers. Research your competitors.
In Quebec, the cost of subsidized daycare is $8.35 a day. At a non-subsidized daycare, the daily fees can range from $35 to $60. The Quebec Ministry of Finance has a tool that will calculate the daily cost of daycare after applying provincial and federal tax benefits and deductions. b.
1. Business Licence: ensures a business follows the City's rules and regulations. 2. Development Permit (zoning approval): tells you what you can build and how you can use a property. 3. Building Permit: audits plans and construction work so the business space is safe, accessible to all, and meets standards of the Alberta Safety Codes.
If you plan on opening a part-time, afterschool or summer camp program and would like clarification about the legal requirements related to child care licensing, you may contact the Ministry of Education at: [email protected] or 1-877-510-5333. In partnership with the Aga Khan Economic Planning Board for Canada and the Aga Khan ...
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.
The government's plan to build a Canada-wide, community-based early learning and child care system will create new jobs and growth, and get parents — especially mothers — into the workforce. Affordable child care is estimated to raise real GDP by as much as 1.2 per cent over the next two decades. As of the Economic and Fiscal Update 2021 ...