Daycare business

A daycare is a service that looks after children either in a private home or separate facility.  Some daycare services also provide educational instruction.

Note that daycare owners will first want to start the daycare in their own homes, taking perhaps 1-3 children at a time. This way, they won’t need that much capital. They can get some daycare experience and decide later if they want to keep it small or expand into a separate facility to accommodate more children.

Medium to High.

Medium:  you will need space to accommodate children. If you have the required space in your home, your expenses for space and location can be minimized. 

 

High:  some daycare owners have a separate facility.  In this case, you will have to factor in rental charges if you rent space or mortgage payments if you buy the property.

In addition to the building, you will have to set aside money for the following:

a) Staff (if you have more children)

b) Kitchen equipment and help 

c) Educational materials and toys

d) Sleeping kits (pillows, sheets, etc)

e) Outings for children

f) Licences, permits and insurance

g) Vehicle (for outings or if you have to transport a child to the hospital)

h) First aid kits

i) Audio-visual equipment 

You will need a degree or training in childhood education, teaching skills and event planning skills.  Check with your city government about the requirements for opening daycare centers.  Because of controversies in the past surrounding daycare centers across the country, you are strongly encouraged to cover all of the legal aspects of starting and running a daycare business.  Obtain all necessary licences and accreditations first before advertising your business.

The ideal person to run a daycare business is someone who:  loves children, loves teaching, is creative (for introducing kids to various projects), knows how to deal with difficult kids, and likes event planning to stimulate children’s minds and motor reflexes.  The ideal person has strong diplomacy skills (especially for dealing with parents).

Daycare fees vary from state to state.  Usually, fees range from $150.00 to $200.00 a week but can be lower or higher than this range depending on:

a) Age of the children (some daycare owners charge fees based on age)

b) The daycare fee package (meals, snacks, education, outings, etc)

Daycare centers charge a registration fee (from $15.00 to $50.00 average), charge on a monthly or weekly basis (paid in advance) or charge on a pay-as-you-come basis (if there is space).  Most charge weekly and monthly.

You will also have to factor in the government’s child-care subsidies if applicable in your area (you will need to check this, because if your daycare qualifies, you may apply for funding).

To give you an idea of how daycare owners establish their fee structure, check out these three web sites:

For as long as babies are born every minute, daycare opportunities will remain a stable business.  The US government reports:

“Opportunities for self-employment in this industry are among the best in the economy. About 37 percent of all workers in the industry are self-employed or unpaid family workers, compared with only 8 percent in all industries. This disparity reflects the ease of entering the child day care business.”

Elementary schools in your area, local chamber of commerce, your city’s recreational and family services departments, churches and volunteer organizations.  You can also visit daycare centers in your area to see if they have an enrolment overflow and therefore might be willing to refer your daycare to parents who are waitlisted.

First, decide if you want to operate from your home with a few children or open a separate facility.

Second, check all legal and other requirements of the government with respect to opening and running daycare centers.

Third, prepare and equip your daycare space.  Have a daycare expert inspect your classroom to see if you have included everything that needs to be included and that you are complying with all requirements of your state.

Fourth, apply for accreditation.  When your daycare is accredited, you gain more credibility.  It also assures parents that you are trained and qualified to run a daycare center.

The US government adds:  “State governments also have established requirements for workers who provide services associated with child care—those involved in food preparation, the transportation of children, the provision of medical services, and other services. Most States have defined minimum ratios of the number of staff-to-children, which vary both by State and the age of the children involved.”

On operating a daycare center:  http://www.smallbusinessnotes.com/businesses/eh/daycare.html

On how to achieve success, requirements and other related subjects, you can read this blog: http://www.easydaycareguide.com/