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Starting a Daycare Center from Home – A Complete Guide

Are you interested in starting a daycare center? Do you want to learn what it takes to run a daycare center successfully from home? If YES, here is a complete guide to starting a daycare center at home with little money and no experience.

Okay, so we have provided an in-depth sample daycare business plan template and also drafted a sample daycare marketing plan template backed up by actionable guerrilla marketing ideas for daycare centers. So let’s now consider all the requirements for starting a daycare center.

Table of Content

  1. Daycare Industry Overview
  2. Market Research and Feasibility
  3. Daycare Business Plan
  4. Daycare Name ideas
  5. Daycare Licenses and Permits
  6. Cost of Starting a Daycare
  7. Daycare Marketing ideas

Before the daycare business came into existence, parents who could afford the luxury of hiring a home nanny whom they thought was vast and experienced in the care of children did so. However, as things changed and the crime rates of people kidnapping children heightened, the daycare trend took over and ever since we have come to see more and more people who have a penchant for kids, dive into the industry just to tap into the profits that the day care business offers.

Starting a day care business is a very interesting and profitable one. However, care must be taken in hiring people who have the same values for children as you do. This is very important so that you can find people who can help drive the vision and mission of your establishment. It is for this reason that it pays to be skilled or rather versed in the trade before launching out.

There are various things that is needed to be in place to be able to start and run a day care business fruitfully. That is totally what this read is all about. Here you will be able to work with workable steps that will be reeled out as you read along. There are actionable steps such has been taken by those who have grown really prosperous in the day care business.

Starting a Daycare Center from Home – A Complete Guide

  • Industry Overview

Day care business is one of the easy businesses that just about anyone who has a flare for kids could readily start. There is no doubt that as the zeal to make more money heightens with parents, then the need for newer and more seasoned day care centers to arise becomes highly important. That is why investors are beginning to leverage on the high demand for day care services, to establish even better ones.

  • Interesting Statistics About the Daycare Industry

Over the years, child care has gained more significance in the United States like never before. The global financial crisis that hit the world in the late 2,000s, has caused child care services less affordable for the common families in the United States.

Parents have had to have a rethink as it concerns their jobs, because of the high costs of child care per month. It is therefore a fact that child care costs for an infant in a day care center amounts to about 20 percent of the average income of parents in places like Oregon. Furthermore, parents are faced with great financial tussles as a result of this.

With this trend, there have been cases of some parents quitting their jobs so that they can watch their children because of the inability to pay up to 500 dollars per ward in a month. Even though this might be the case with some folks in some city in the United States of America, the number of children that are enrolled in public establishments have increased, compared to what the private centers enroll.

Even with these statistics, it can be said that the day care industry is a saturated one in America, as well as other parts of the world.

What Are the Factors or Incentives Encouraging You to Venture into Daycare Business?

The daycare industry has a lot of motivating factors. Chief amongst them all and the most important of all is the fact that parents would always look for where to keep the kids whilst they go eke out a living. It is for this reason that people will continually be motivated to venture into this trade always.

There is also the point that kids are really wonderful species to work with. They can be so very adorable, so that those who have the aspiration to venture into it do not hesitate to do so.

Starting a Daycare Center from Home – Market Feasibility Research

When the day care business comes to mind, of course as the name indicates, it talks about caring for babies and toddlers. Therefore, there are a lot of folks who can be categorized as the target market. Here is a list of some target market for the day care trade.

  • Corporate Executives
  • Business People
  • Sports Men and Women
  • Government Officials
  • Families
  • Low class, middle class and high class people

This means that you have to be able to cover all these group of people when you do launch out with your marketing plans. For instance; it is needful that you storm offices and other private places with your awareness plans.

  • Niche ideas Within the Daycare Industry You Can Specialize In

It is a good thing that you do want to start a day care business; however, one other thing of essence is that you have to consider the niche you want to specialize in. One of the reasons why this is important is that it helps you to channel your energy at one thing and be the best. Here are some niche ideas to consider as you start out;

  • Taking care of the infants, toddlers and preschoolers
  • Cleaning the infants and toddlers up whilst they are dirty
  • Have all kids well fed when hungry
  • Keep them active with some extracurricular activities

The Level of Competition in the Daycare Industry

One of the things that have made businesses grow stronger and tougher in the economies of the world is the level of competition that abounds in various industries. Competition is known as one of the back bones of businesses, so experts have said. Why is this so, you may ask? This is so because of the level of seriousness and the ability to sit up and tight in business, competition creates.

All over the globe there is stiff competition when it comes to the daycare business. This is because of the point that people – especially busy wards see the day care centers as great places to have their babies or toddlers occupied. However, one is able to overcome the competition in this field, when they offer the best of services.

This means that if you are able to serve your clients from a distinctive point of view, then you can be sure not to be bothered by the rate of competition in the industry.

Whilst in some parts of America, there might be little or no daycare centers, yet in others you can be sure to find as much as ten crowded in the same vicinity. As such; if one is able to locate an area where there are few day care centers, then chances are that the stiff level of competition wouldn’t be a deterrent. Also, the number of years which one has put in studying and garnering the day care business knowledge is also a great factor to consider.

  • List of Well-Known Brands in the Daycare Industry

All over the globe and in America, there are day care academies that have been in existence for as long as five, ten, or even thirty years. These types of day care businesses have got through the teething stages of business, and have surpassed the challenges. Here are some well-known day care academies in America

  • American Childcare Centre LLC
  • Child Development Centre, Massachusetts.
  • Children of America Warrington, Kansas
  • Alphabet Academy, Philadelphia
  • Angel Academy
  • Angel Keepers
  • Children’s Choice Crèche
  • Tatty Bitty Crèche

Economic Analysis

With the daycare business, you do not have to worry if there is a down period. This is because there is always a boom in this business all year round. The boom in sales is not dependent on the state of the economy. This is because all year round, there will be the need for guardians to work and as such some folks have to take care of the kids.

Furthermore, the day care business is one business that guarantees return on investment. It is for this reason that a lot of people are cashing in on the trade. That is why the services being rendered by the day care folks have to be top notch at all times. Trainings have to be given to the employees, so that the services being rendered would make for success. Because one thing is for sure, if your services are good, others will know about it.

  • Starting a Daycare from Scratch Vs Buying a Franchise

One of the reasons why people buy franchises is so that they may be able to leverage on the success of the name of the brand to build theirs. However, there are some type of businesses that might not readily have a franchise option. As such, with a day care business, starting a day care business form the start is one of the best things and options to adopt. Why is this so, you may wonder?

This is especially so because of the need to mold and run with the vision of the business the way it was conceived. On the flipside; if you are looking to buy a franchise, chances are that you might not find a day care business franchise. This is because most day care centers do not choose to have their businesses franchised, even when it has attained so great a level of success.

  • Possible Threats and Challenges You Will Face When Starting a Daycare

Every business faces one form of challenge or the other when starting out. There are some who face these threats and challenges and do not bounce back. However, there are those who learn the rope in the process and so are able to bounce back strong. This is also the case when you start a day care center.

On the other hand, it is pertinent to note that your ability to walk through these threats and challenges as it were, would go a long way in helping you grow in the industry. Some of the threat your business may likely face with might be a scenario where an epidemic is being spread by a sick kid. When such happens, parents might be pushed to have their kids withdrawn from the school.

Yet another threat that would be likely faced by you and your team is the inability or rendering substandard services. When this happens. Parents may also have the option of looking for other day care academies where that can be offered the best of services to their satisfaction.

Starting a Daycare Center at Home – Legal Aspect

These are some of the basic legal document that you are expected to have in place if you want to run your own day care business in the United States of America;

  1. Certificate of Incorporation
  2. Business License
  3. Business Plan
  4. Non – disclosure Agreement
  5. Employment Agreement (offer letters)
  6. Operating Agreement for LLCs
  7. Insurance Policy
  8. Day care contract documents
  9. State Health Permit
  10. Child care Permit

Starting a day care business sure entails that you are duly registered. This means that you have got to operate under one of the best legal entities. One of the best legal entities to use for your day care business is a sole proprietorship. If you want to be well advised and cock sure, then you may consider seeking the advice of a business consultant.

You may also want to consider some things like; limitation of personal liability, ease of transferability, admission of partners and investors when choosing a legal entity for your business.

Writing a Business Plan for your Daycare Center

It isn’t enough to have a business idea, without having a laid down business model to operate with. This is one of the reasons why writing a business plan comes in handy. Writing a business plan might be   that easy- this is because of the very technical areas that is needed.

However, it can all be easy if you hire a business consultant to help you write one. On the flipside, you may as well get a business plan template from the internet, and then write yours. Here is a sample daycare center business plan template to help you get started.

Some of the very important things that must be in your plan are; the sales forecast, your day care vision and mission, the business structure you plan to adopt, modes of raising startup funds, and a whole lot more areas that must be covered. All of these are the things that must be contained in your plan if you want it to be a detailed one that you can refer to for a long time.

Choosing a Location for your Daycare Center

The location of your day care business is a very vital hurdle you have to scale. It is not enough to just choose a location without first considering some very essential factors. Some of these factors include the following:

  • An Area dominated By Young Couples
  • An Area Dominated By Nursing Mothers
  • An Area Dominated By Working Class Parents
  • An Area with Less Noise
  • A Location that is in the Heart of Residential Estate
  • A Location that is Close to Business District
  • An Area with Good Security Record
  • A Facility with Good Ventilation
  • A Facility With Adequate Parking Lot
  • Serene Environment

If you study some day care centers that have bloomed over the years, you will find that they are located in a serene and cool environment. This is so that it adds to the ambience of the overall structure. One of the things that you have to consider when looking to get a location for your day care business is the locality where you want to plant your business. Children sleep and are calmer when they are in a less noisy environment.

  • Safe Environment

In recent times, there have been news about kids being kidnapped from their schools- and the daycare is no exception at all. You have got to get a day care location in safe area that is an area that is free from robber’s hideout, hard drugs market, a club, and generally an area that is not morally safe for toddlers.

  • An Accessible Area

If you take a look at the day care centers around, you may find that they are located in areas where there would be no difficulty in reaching the kids, whenever the need arises. As such, you need to locate your business in an area that is well accessible. This means that you do not have to locate your business in area where the parents who have their kids in your academy do not find easy to locate. If possible within an estate.

  • The Type of Building

There are some folks who may want to start with a leases structure, this is so that they can start small and grow big. However, there may be those who want to out rightly start big. In locating your day care business, you have to be certain about what you want. Do you want it to be a leased facility, or do you have the funds to out rightly buy a building? It is of essence that you figure these factors out so that you do not overstretch yourself financially.

Starting a Daycare Center at Home – Manpower and Technical Details

In setting up a day care business, there are various things needed. There is the organizational structure, as well as the physical structure that will be needed to ensure a smooth running of the business. First let us see some of the employees that are key that must be employed. They include;

  • Chief Executive Officer (Owner)
  • A Director
  • Assistant Director
  • Administrative Assistant
  • Accountants / Cashiers
  • Infant room Supervisor
  • Toddler Room Supervisor
  • Preschool room supervisor
  • A Cook
  • Cleaner

Other things that would be needed to set this business up are the beddings, the tables, the toys, cooking utensils, the mops, vacuum cleaners, etc. Here are some of the responsibilities of these employees;

Chief Executive Officer – CEO:

  • Responsible for providing direction for the business
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals.
  • Responsible for recruitment\
  • Responsible for payment of salaries
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Director:

  • Responsible for managing the daily activities in the day care center.
  • Ensures that all orders and guidelines given by the CEO are adequately carried out.
  • Interfaces with other employees
  • Reports to the Chief Executive Officer
  • Attends to Parent’s complaints and enquiries
  • Prepares budget and reports for the organization
  • Responsible for Training and Development in the day care center
  • Any other duty as assigned by the CEO

Assistant Director:

  • Responsible for assisting the director to carry out all that have been assigned by the CEO.
  • Ensures that all employees carry out the agenda of the day care center to the latter.
  • Responsible for quality control
  • Any other duty as assigned by the CEO and director

Accountant / Cashier

  • Receives payments on behalf of Tiny Thoughts®
  • Issues receipt to customers
  • Prepare financial report at the end of every working Month
  • Handles all financial transaction on behalf of Tiny Thoughts
  • Interfaces with our bankers
  • Responsible for payment of tax, levies and utility bills
  • Any other duty as assigned by the CEO / Director

Administrative Assistant

  • Assists the director in seeing to it that all the kids are thought are line
  • Ensures that all documents are safely kept.
  • Handles customers enquiries and keeps all records of kids and employees well
  • Any other duty as assigned by the director

Infant Room Supervisor

  • Responsible for supervising the nannies that take care of the infants.
  • Makes sure that everything is in place
  • Reports to the Director
  • Relates with the nannies and cleaners
  • Carries out any other task as assigned by the superiors

Toddler Room Supervisor

  • Responsible for supervising the nannies that take care of the toddlers.
  • Makes sure that everything is in place
  • Reports to the Director
  • Relates with the nannies and cleaners
  • Carries out any other task as assigned by the superiors

Preschool Room Supervisor

  • Responsible for supervising the nannies that take care of the toddlers.
  • Makes sure that everything is in place
  • Reports to the Director
  • Relates with the nannies and cleaners
  • Carries out any other task as assigned by the superiors

Cook

  • Responsible for all the kitchen activities at the center
  • Attends to the foods of all kids
  • Takes orders that will advance the establishment from the Director, CEO and others.

Cleaners:

  • Responsible for cleaning the day care facility at all times
  • Washes the mugs, spoons and other utensils
  • Ensures that toiletries and supplies don’t run out of stock
  • Cleans both the interior and exterior of the daycare
  • Any other duty as assigned by the day care director.

There will also be the need to have a nurse or doctor in the sick bay. As a matter of fact, this is essentially important so that there would be an expert on ground that will be able to man the children whenever they are ill. This is also part of what some wards look out for before they have their kids enrolled. This is so that adequate care and attention can be administered to a kid whenever the need arises.

  • The Service Delivery Process Involved in a Daycare

The day care business isn’t a manufacturing or production trade that involved the making of things, and so might not necessarily have a clear cut process involved. The day care business is basically about taking care of babies and toddlers whilst their parents are away. This means that once they are left in your care in the mornings, then you and your team have got to take over from where the guardians have stopped. Things like;

  • Feeding the children
  • Cleaning them up whenever they are messed up
  • Bathing them when they are dirty
  • Making meals for them

Starting a Daycare Center at Home – The Marketing Plan

In the United States of America, as well as all parts of the world, there will always be the need for parents to eke a living. Since this might entail that they work round the clock, they need people to help them man the children. This is one of the reasons why folks are beginning to throng the industry because they know that this is one indispensable trade that must not be toyed with.

If you resolved to delve into this business and then you really itch to make good success out of it all, then you have got to take your marketing plans really seriously. So what the marketing plans that you could possibly adopt to make your business known to all and sundry? Here they are:

  • Starting the operation of the day care center by first having a grand opening.
  • Make employees present and show them to parents.
  • Use attractive hand bills to create awareness and also to give direction to potential clients
  • Position your signage / flexi banners at strategic places around the vicinity.
  • Leverage on the tabloids and advertise our day care center on business directories, magazines and yellow pages.

Tips for Running a Daycare Center Successfully

There are several things that must be done in order to see that the day to day operation of your day care business goes smoothly. This is one of the reasons why some deliberate steps have got to be taken. Some of the steps include the following;

  • Make sure that every kid has a tag on them
  • Always have meetings with your employees – if possible every day to discuss how to push the business forward.
  • Learn of their weaknesses and challenges.
  • Take note of the processes through which the services rendered is done.
  • Learn to systems and processes for the day care business
  • Make sure that the environment is spic and span always.
  • All employees; both those who work as admin workers and those who are into the direct manning of the kids are at the beck and call of all pupils.

In conclusion, starting a daycare business is one of the best things that could possibly happen to you. This is because of the opportunity you have to take care of kids who are definitely the leaders of tomorrow, as well as the great level of profit which you will be able to make when you and your team runs the business really well and satisfactorily. In addition, one of the things that could cause a day care business to go down the drain could be attributed to lack of seriousness.

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