How to Open a Childcare Centre

Are you considering opening a new childcare centre or adding another location to your existing business? 

Whether you’re a parent who sees a need or a career professional moving to their next career phase, opening a centre isn’t easy.  The good news is that since most parents work outside the home, childcare is always in demand.

In the last 11 years, I have opened 8 childcare centres. That’s why I’ve created this guide to provide you with the steps you need to take to open your own centre.

The Advantages of Starting Your Own Childcare Business

• Emotionally rewarding: There is nothing more rewarding than being part of the journey of a child’s success. Seeing children reach milestones and learn skills and knowing you are part of that success. Having your own business also offers flexibility with your own family and life vs. working for someone else. As my own boss—I am very understanding when I need time off. ;)
• Financial freedom: You are in control of how much you work in the business and the value of your time.  You determine your own income.
• Child care: One of the best parts of opening my centres was having FREE child care for my own children.  Saving me $110 000 in childcare fees.
• Quality child care: There are owners of programs that focus on quality and those that don’t.  In my career, I worked for many that didn’t invest in the program.  Opening my own centres allowed me to determine Educator wages and raises, how much to invest in toys and equipment to create my vision of a high-quality childcare program and a workplace culture I could be proud of.  What you dream can be the reality when you own your own centre.

Home-Based vs Commercial Facility

You must first decide which type of childcare centre you wish to start before you take any concrete steps. There are two options, each with benefits and drawbacks:

1. Home-based facility: You won’t have to worry about finding a location, paying additional rent and other bills, or completely furnishing a new facility. Simply put, with a home-based operation you will have significantly decreased startup and operating expenses with a home centre. However, regulations dictate how many adults must be present per child. Combined with obvious size limitations, a home-based centre will have a firm growth cap. The good news is that once you reach that cap, you can then explore a commercial location. 
2. Commercial facility: Opening a commercial childcare centre has significantly higher startup costs than a home-based centre, but you will have a much higher limit on how many children you can care for. Additionally, commercial settings tend to help generate additional trust with parents. 

Many businesses start as a home-based centre and then move into a commercial facility as enrollments increase.

9 Steps to Starting your Childcare Business

Now, let’s dive into the actionable steps you need to take to answer this common question:, “how to open a childcare centre?” The below steps will help you understand the entire process:

1. Learn about childcare licensing: You’ll need to research all applicable licensing requirements and regulations for a child care business within your area. Keep in mind that cities and states/provinces can both have requirements that you must follow, and the licensing process could take longer depending on your jurisdiction.
2. Create a comprehensive childcare business plan: All new businesses will greatly benefit from a business plan. Visit local government websites to learn about any legal, health and safety and staffing requirements. Having a child care centre business plan will ensure that you’ve covered all of your bases. You can find dozens of business plan templates online to help get you started.
3. Find the best location: If you’re starting a commercial business, find a location near a suburb that’s popular with new families. Make sure that you’re on a major road and that it’s easy to reach the parking lot.
4. Get insurance: You will likely be required to carry childcare insurance and it’s worth doing anyway. This type of insurance helps cover you in case of an accident at your program. Read the fine print carefully and select the plan that provides affordable comprehensive coverage.
5. Prepare the facility: You’ll need toys, equipment, and furniture throughout the childcare facility. You also need to establish all of your utilities and Internet accounts before opening. 
6. Write policies, standards and procedures: Written policies, standards and procedures help onboard new employees and provide clarity for parents. Remember, policies are the rules you need to follow, while standards and procedures provide the how. Our Policies & Standards product includes 100 pre-made policies and standards, giving you everything you need to get up and running fast.  And if you decide to work with a childcare coach, they can help you build the systems that provide the clarity needed to successfully onboard staff.
7. Hire Childcare Staff: Look into the childcare background check requirements, and recruit employees with a clean background check and a clear interest in childcare. Experience in childcare is always preferred.
8. Pick the best daycare software: You will need some management software to streamline onboarding new children, communicating with parents, and managing finances. There are several solutions out there to choose from. 

Market your business: You’re now ready to open your business! It’s time to start marketing. Create a brochure, website, and social media presence. List your business on the local directory websites. Running paid ads on social networks that target your area is typically an effective way to reach parents and potential customers

It’s Time to Start Your Daycare Business

Are you ready to get started? You will gain a competitive advantage by receiving childcare training to ensure that you are providing the best care possible and prepare you for operating the new business. 

After you’ve been trained, it’s time to get started opening and marketing your new business.

Need help getting started? Get in touch with a qualified childcare coach today to learn more about the steps you need to take to open your own daycare business.