home daycare business plans

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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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.

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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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Daycare Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 5,000 entrepreneurs create business plans to start and grow their businesses. On this page, we will first give you some background information with regards to the importance of business planning for your daycare. We will then go through a good daycare business plan template step-by-step to help you outline and create your plan today.

Download our Ultimate Daycare Business Plan Template here >

What Is a Daycare Business Plan?

A daycare business plan provides a snapshot of your daycare business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a daycare business or grow your existing one, you need a solid business plan. This plan will help you raise funding, if needed, and plan out the growth of your daycare in order to improve your chances of success. It is a living document that should be updated annually as your company grows and changes.

Source of Funding for a Daycare Business

With regards to funding, the main sources of funding for a daycare business are bank loans and angel investors. With regards to bank loans, a lender will want to review your daycare business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a daycare is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Venture capitalists will not fund a daycare business.

Finish Your Business Plan Today!

A good daycare business plan should include the following 10 key elements:

Executive Summary

Your executive summary provides an introduction to your daycare business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of child care business you are operating and the status; for example, are you a startup, do you have a daycare that you would like to grow, or are you operating a chain of child care centers.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the daycare industry. Discuss the type of daycare you are operating. Include detailed information about your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will describe the type of daycare company you are operating, including a business description.

For example, you need to decide which type of child care business you plan to operate:

• Home-Based Daycare: this type of daycare business operates out of your home and typically has one or two caregivers on staff.
• Daycare Center: this kind of child care center operates out of a commercial building. It typically has multiple teachers and personnel and can provide care to many kids.
• Preschool Daycare: a daycare business that primarily serves preschoolers
• School-Age Daycare: a daycare business that primarily serves school-age kids.

In addition to explaining the type of child care you operate, the Company Analysis section needs to provide background on the business.

Include answers to questions such as:

• When and why did you start your daycare business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new program offerings, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the child care industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the daycare industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards daycare that includes transportation, it would be helpful to ensure your plan calls for such a service.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your daycare business plan:

• How big is the daycare business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the local or national market?
• What trends are affecting the daycare industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your daycare. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the community you serve and/or expect to serve.

The following are examples of customer segments: soccer moms, young families, baby boomers caring for grandchildren, etc.

Try to break out your target audience in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the families you seek to serve. Because most daycares primarily serve customers in the same local area, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target families. The more you can understand and define these needs, the better you will do in attracting and retaining your families.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your daycare business faces and then focus on the latter.

Direct competitors are other daycare providers in your local area.

Indirect competitors are other options that parents have that aren’t direct competitors. This includes keeping children at home and/or after-school programs among others.

With regards to direct competitors, you want to detail the other daycare or child care centers with which you compete. Most likely, your direct competitors will be daycare businesses located very close to your location.

For each such competitor, provide an overview of their services and document their strengths and weaknesses. Unless you once worked at your competitors’ daycare businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of parents do they offer services to?
• What daycare services do they offer?
• What times are they open?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the parents’ perspective.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior daycare services?
• Will you provide daycare services that your competitors don’t offer?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a child care business plan, you should include the following:

Product : in the product section, you should reiterate the type of daycare that you documented in your Company Analysis. Then, describe the specific services you will be offering. For example, will you over technology or exercise classes to the children?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the child care services you offer and their prices.

Place : Place refers to the location of your daycare. Document your location and mention how the location will impact your success. For example, is your daycare located next to a heavily populated office building, or gym, etc.? Discuss how your location might provide a steady stream of potential customers.

Promotions : the final part of your daycare marketing plan is the promotions section. Here you will document how you will drive families to your location(s). The following are some promotional methods you might consider:

• Social media marketing
• Reaching out to local bloggers (particularly “mommy” bloggers) and websites
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your daycare business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term procedures include all of the tasks involved in running your daycare such as discussions with prospective new customers, procuring supplies, keeping the center clean, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th child, or when you hope to reach $X in sales. It could also be when you expect to hire your 4th employee or launch a new location.  

Management Team

To demonstrate your daycare’s ability to succeed, a strong management team is essential. Highlight your key players’ and teachers’ backgrounds, emphasizing those skills, and experiences that prove their ability to grow your child care business.

Ideally, you and/or your team members have direct experience in the daycare or child care business. If so, highlight this experience and expertise. But also highlight any experience or certification that you think will help your daycare business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your daycare business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in daycare centers and/or successfully running a retail or small company.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In creating your income statement, you need to devise assumptions. For example, will you serve 10 children per day or 50? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your company. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While these financial statements include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your daycare center, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your company, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 daycare contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your financial projections be sure to include several of the key costs needed in starting or growing a daycare center:

• Daycare center build-out including design fees, construction, etc.
• Cost of fixtures like tables, chairs, couches, etc.
• Cost of equipment used like computers and televisions
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your daycare center design blueprint or location lease.  

Putting together a good business plan for your daycare is an exciting process to help you develop and grow your child care business into the future. If you follow the template above including all the key sections, by the time you are done, you will truly be an expert. You will really understand the daycare industry, your competition, and your target parents. You will have developed a comprehensive business plan and will really understand what it takes to launch your daycare business, obtain the financing you need, and expand your business.

Daycare Business Plan FAQs

What is the easiest way to complete my daycare business plan.

Growthink's Ultimate Daycare Business Plan Template allows you to quickly and easily complete your Daycare Business Plan.

Where Can I Download an Example Daycare Business Plan PDF?

You can download our daycare business plan sample PDF  here . This is a business plan example you can use in PDF format.

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Other Helpful Business Plan Articles & Templates

Home Daycare Business Plan [Template + Example in 2024]

Home daycare businesses need a business plan whether they are just starting out or already in operation. Home daycare business plans are essential, especially if you need funding or business partners to grow your business. Ultimately, starting and running a home daycare business takes a lot of resources. Business plans can help you attract partners and secure funding by giving you a credible image.

Therefore, a solid business plan is equivalent to a good start. The plan will assist you in setting goals, knowing how to start, and knowing what measures to take. Creating a business plan with so many sections and terms seems daunting. Our template and example will make it easy for you.

Throughout this article, you'll learn what to include in your business plan for a home daycare. Here are some examples we made to help you understand. With this guide, you'll understand what to write and how to create a business plan for your home daycare business to help it start, run, and maintain.

Without further ado, let's get into it!

How to Write a Home Daycare Business Plan?

Every Home Daycare business plan must have the following sections:

• Executive Summary
• Business Overview
• Products and Services
• Market Analysis
• Marketing Strategy
• Financial Planning
• Operations Plan
• Management Team

Now, let's discuss each section in detail together with examples.

1. Executive Summary

It's always an excellent idea to start with an executive summary when preparing a business plan. This section explains what your business offers in general terms.

The executive summary should include a description of the problem you are trying to solve and your plan for resolving it.

Writing your summary last is advisable once the other sections are finished and settled since it's an overview of the entire plan.

More and more families are now dependent on two incomes, increasing the need for childcare. In addition, the growing demand for safe, educational environments indicates that more kids need them.

The success of Safe Haven Home Daycare depends on providing childcare services to any home within the scope of the business. Our goal is to provide a safe, informative, and enjoyable experience for kids while assisting parents in feeling confident about the care their children receive.

Safe Haven Home Daycare provides the most needed childcare services to any home within a 30-mile radius around Central Islip. The service is available to clients full- and part-time, depending on the necessary working hours.

2. Business Overview

Your business plan contains a Business Overview, which provides general information about your company. Thus, it should include essential information such as your business structure, mission, and values.

You must demonstrate your competitive edge in a Business Overview to attract business investors, funding, and grants. A business plan answers why yours will be better than other businesses and how it will stand out.

In the beginning, the company will be solely owned by its founders, who have the fundamental proprietorship rights for the business.

Depending on the interests of the company and the best way to serve them, the owner may decide that reregistering as a corporation or a limited liability company is best.

3. Products and Services

As its name suggests, your business plan's Products and Services section describes what you offer. If a business's Products and Services Section is detailed, it will be an excellent addition to any business proposal or investment invite.

The process by which your product will be manufactured, sold, or delivered must be explained in detail. Additionally, you can show clients how your services will be delivered. Therefore, you must evaluate your product's position on the market, cost, and suppliers.

The childcare market on Long Island, New York, is one of the most competitive in the country. As a result, the city has more than 300 unique facilities. In general, facilities can be divided into two categories.

Corporate franchise centers often manage the larger franchise centers. This facility offers both regional and national services.

According to current data, 28% of the childcare market is controlled by the top four centers in the United States.

Many colleges and universities operate on a smaller scale and are locally owned and operated. For this reason, Safe Haven Home Daycare services cater to childcare services at home rather than in an institution.

4. Market Analysis

An analysis of the market is another essential component of a business plan. In this section, you will explain how your marketing strategy will be implemented. Using this section to describe your competitors, target market, and marketing strategy is a good idea.

For this reason, this section should contain the following information:

• Competitive Analysis: To determine who your competitors will be
• Customer Analysis: To determine your target audience
• Industry Analysis: To show how the industry is currently doing

There are more than 300 childcare centers in the neighborhood. According to market share, KinderCare has the most. However, they can't cater to families whose kids need home daycare.

They can compete well because of their excellent reputations in the consumer sector. With Safe Haven Home Daycare, clients can enjoy a one-to-one interaction, focusing on their child rather than in school.

In addition, the business keeps childcare rates between five and ten percent lower than the average for major commercial chains.

Children from needy families can get childcare at Safe Haven Home Daycare within a 30-mile radius of Central Islip. Our program accepts part-time and full-time kids.

The facility's efforts to get licenses and certifications give it an edge in the childcare industry. People are subjected to a thorough background check before they're hired.

5. Marketing Strategy

Using the marketing strategy, you can explain to your readers how you plan to market your products. This way, you can explain how to gain and retain customers. You will find information in this section about reaching your target market, motivating them, and making them want to buy your products.

The key differentiator will be customer service benchmarking. Customer-centricity will be infused into the entire organization. Additional funds will be invested in training and attracting the best employees at Safe Haven Home Daycare.

The staff is the one who interacts with the children and their parents. Therefore, their chances of becoming devoted clients and enthusiastic advocates of the facility are excellent in this situation.

Several social media platforms will be used in the campaign, including LinkedIn and Facebook. Professionals will respond to public inquiries about child care. As a result, we demonstrate our competence to the public. Additionally, we will allow customers to leave reviews and communicate with us.

6. Financial Planning

Another part of your business plan you should include is the Financial Planning section. In this part, you will describe your business goals and the process.

Therefore, all possible expenses should be included in a defined timeline. This section aims to demonstrate how you would handle your finances to ensure growth and avoid problems.

Families where both parents work or are required to work are ordinary for children. Therefore, as parents work, they can leave their child at home with someone who can cater to childcare services, teach, and interact for fast learning.

If they cannot be with their children in an emergency, parents must have someone trustworthy they can leave them with.

Our service values the "safe mentality." Our clients appreciate that we have subject matter experts on hand to address their questions. We will not make a special effort to provide advice since we expect people to seek our advice if they need it.

We intend to invest $30,000 in the launch of our business. Our startup costs will also be covered by each owner's contribution of $15,000.

7. Operations Plan

Your business plan's Operations Plan details the entire operation of your business. As such, it should outline the steps your entire staff will follow to ensure you achieve your goals. It is essential to put information about each department employee's daily, weekly, and monthly responsibilities.

Providing quality care to children will generate enormous financial benefits for Safe Haven Home Daycare.

Since Safe Haven Home Daycare will be based on clients' homes, word-of-mouth marketing will make it profitable within the first year. Every six months, the company expects its client base to double in the first 16 months.

Most of the funds will be dedicated to the childcare service providers of the business. This way, they can undergo special training and gain licenses to conduct home daycare services.

Since the client's home will be the place of operations, they can add travel expenses to the bill. It's a safe space for kids, and parents will rest assured of the kids' safety with the licensed providers.

8. Management Team

You should also include a section devoted to your management team in your business plan. The purpose of this section is to summarize the entire staff you currently have and any future staff you plan to hire.

Workers are one of the most vital parts of a business, so anyone reading your plan should know who works there and how they contribute to the company's success.

You should highlight your team's skills, abilities, and experiences to boost your company's credibility.

In addition, you need to demonstrate how you will distribute responsibilities and tasks to ensure each person has an opportunity to grow while maintaining the business's steady development.

Safe Haven Home Daycare will be supervised by seasoned childcare professionals Myrcella Smith and Stephanie Rivers.

Myrcella has eight years of experience in sales, marketing, and management from The Children's House Daycare. During Myrcella's tenure at the company, the company's annual revenue increased from $75,000 to nearly $3.9 million.

Myrcella's partner Stephanie Rivers has a finance and administration degree. Before joining Safe Haven Home Daycare, Natasha worked for The Joyous Place, one of the country's largest childcare providers.

She increased operational profits at The Joyous Place by 112% during her tenure as Chief Financial Officer, which is uncommon for a company in this field.

Home Daycare Business Plan PDF

Do you want to download a Home Daycare business plan example in PDF?

Here is the download link.

Let us know if you have any questions!

Home Daycare Business Plan FAQs

Below are some of the frequently asked questions you may have about Home Daycare Business Plans:

What Is a Home Daycare Business Plan?

Home Daycare business plans showcase the entire structure, function, goals, and any other information relating to a particular business.

Home Daycare business plans present the business's problems, solutions, and functions. In addition, your business plan can provide detailed information about your company, attract investors, and secure funding.

The business plan shows the company's structure and operations. The report also describes the operation's finances, marketing, and management.

The cost of operating a business, market research, mission statements, and succession plans can all affect the launch of a business. Therefore, these things should be clearly stated in a business plan.

Why Is a Home Daycare Business Plan Important?

Home daycare businesses must have a business plan. It outlines a company's goals and structure as a business plan. Moreover, once you have an outline for your project, you can adjust it as needed.

A home daycare business plan would be helpful if you want to hire and train staff, seek investors, or adjust your pricing strategy. Even if your business has yet to launch, you should create one.

Is Owning a Home Daycare Profitable?

The need for home daycare businesses is always present. In this regard, owning a home daycare business is a business that has a vast potential for success and growth.

The key to being profitable is to plan, execute, and maintain your business efficiently. As a result, it's crucial to have an effective business plan to set you up for success.

Our business plan template can help you create a plan that suits your home daycare business. You'll enjoy a profitable home daycare business if you create an effective plan and execute it well.

Home daycare business plans are essential for anyone planning to open one. With such a plan, you can identify your strengths, analyze your competitors, identify your target audience, attract potential customers, and set a goal for success. Moreover, if you need funding, a solid business plan can help you secure grants or investors.

The Home Daycare Business Plan template includes all the necessary information and elements. Using the examples we provided, you can develop your business plan.

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Daycare Business Plan

With the majority of parents staying out of the home throughout the day, the daycare (childcare) business has turned into an extremely bankable one in recent years.

If you have the right resources and more importantly, are good with children. If you have ever dreamt of starting a daycare business , then you are at the right place!

Though certain sections are common to all business plans, you’ll need to customize the outline as per the needs and requirements of your business.

Industry Overview

The U.S. childcare market size was valued at USD 54.3 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 3.9% from 2020 to 2027.

This rise in demand has come from the increasing number of working parents. Earlier parents had to quit their careers to take care of their children, but that has changed due to better daycare facilities.

Now, if you plan on entering this competitive childcare market, you must know that the daycare business is based on the foundation of trust more than anything. Hence, providing quality services and having a clean image in the market is of utmost importance.

Studies show that a lot of daycare businesses fail in their first three years due to reasons ranging from poor management to lagging finances. You can combat all of these and many more troubles if you enter the industry with a well-rounded daycare business plan.

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What is a Daycare Business Plan?

A daycare business plan is an equivalent of a roadmap in your business journey. A plan helps you understand what you’re getting yourself into.

It helps you understand the market, figure out where you stand in it, know your target audience better, and formulate better marketing and financial strategies.

Overall, it makes your decision-making process faster and more effective and prevents you from feeling clueless at any point in your business journey.

Moreover, it also helps you get investors and helps your employees and partners understand what your business stands for. It gives the people in your business a feeling that you have a vision and know what you are doing with your business.

Also, you get to set clear goals that give you a direction to work and put your efforts in.

Why is a Daycare Business Plan Important?

Everything you do for your business should add value to it. And here’s how a daycare business plan can add value to your business:

It gives you a sense of direction

There are several ways you can go with each business decision. A business plan helps you understand what would work best for your business then.

Also, it gives a set of tangible goals to look forward to when you work on your business.

It helps you understand your target audience better

Planning your business gives a better form and structure to your research. Which at the end of the day helps you understand your customers better. It also helps you analyze what it means for your business.

Making and upgrading your product or service for your customers serves the biggest purpose at the end of the day.

It helps you understand your competition better

Imagine there’s a popular daycare center in your city and several parents swear by it. Now, this could mean several things for your business.

You’ll have to pick a different location, know the daycare service’s weaknesses and offer better services by working on that area for your business.

You can also pick the things they are doing right, and inculcate the same in your strategies.

A business plan can help you do all of the above and more through a competitive analysis.

It helps you convince your investors

Though making the right prediction is difficult, having a rough idea of your business’s sales and financial potential is important to get investors on board.

Investors want to know the scalability of your business before they invest in it. A good and realistic prediction of returns makes it easier to convince investors.

And a business plan can help you make realistic financial predictions.

It keeps you updated with the latest business trends

A business plan is a living document that grows alongside your business. It also helps you have a foresight of changing trends and act on time for getting the best results for your business.

This also makes it important for you to keep updating your plan as your business grows.

What does a Daycare Business Plan Look Like?

If you are planning to start a new auto or car repair shop, the first thing you will need is a business plan. Use our sample Daycare Business Plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new auto repairing shop, spend as much time as you can reading through some examples of Children’s & Pet business plans .

Moreover, business plans come in different forms to fit the current state of your business.

Apart from that, there are a few major sections that should be included in every business plan.

Daycare Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

• Executive Summary
• Keys to Success
• Company Summary
• Timothy Bernard Kilpatrick
• Start-up Summary
• Locations and Facilities
• Service Description
• Competitive Comparison
• Sales Literature
• Fulfillment
• Future Services
• Industry Analysis
• Market Segmentation
• Market Analysis
• Market Needs
• Market Trends
• Market Growth
• Business Participants
• Competition and Buying Patterns
• Main Competitors
• Strategy and Implementation Summary
• Value Proposition
• Competitive Edge
• Positioning Statement
• Pricing Strategy
• Promotion Strategy
• Marketing Programs
• Sales Forecast
• Sales Programs
• Strategic Alliances
• Web Plan Summary
• Website Marketing Strategy
• Development Requirements
• Management Summary
• Organizational Structure
• Timothy B. Kilpatrick
• Carolyn Steverson
• Candice Harris
• Management Team Gaps
• Personnel Plan
• Projected Profit and Loss
• Projected Cash Flow
• Projected Balance Sheet

What to Include in Your Daycare Business Plan?

A good daycare business plan consists of a certain number of well-defined sections, the following sections can help you in writing an excellent business plan.

1. Executive Summary

The executive summary section is one of the most important sections of your business plan because it not only forms the first section of your business plan but also acts as a pitch for potential investors who can provide you with funds for your daycare business.

It consists of your company’s vision and mission, its USP, objectives, and also expected revenues.

Writing the executive summary section of your plan at the very end, so you can sum up your plan properly is a good tip to remember.

2. Services

In this section, you should give out a clear idea of what your services are and whom it caters to. You should define your target market, your niche, the area your services will be extended to, etc.

As a daycare center, you should have a clear idea of the age group you will cater to, what is the preferred location of your target audience, how you come off as a service to your customers, and so on.

3. Market Analysis

Market analysis can be of great help to any business, it can help you understand what you are getting yourself into, who your competitors are, what your client base expects out of you, and where you stand in the current market situation.

Hence, market analysis immensely improves your understanding of the industry you are getting into. In the case of a daycare center knowing the best practices of childcare that exist in the market can be of great help.

4. Web Plan

In today’s internet-based world, most busy parents looking for a daycare center online. Hence, having a strong and reliable web presence is crucial to the success of your daycare business. Thus, including a web strategy in your business plan is necessary.

Always remember, as a daycare service coming off as a trustworthy and reliable institution is crucial for your business to work.

5. Management and Organizational Structure

Having a well-structured management system is especially crucial for a daycare service. It not only helps your business run smoother, but it also makes you look more responsible and reliable in front of the parents or the primary caregivers.

In this section, you should include the structure of your organization, details about people on various levels in your company, a solid system for tracking everyone’s work and progress, the areas your team is excelling at, and the areas your team is lagging in.

6. Financial Plan

One of the chief reasons for several daycare services running out of business is poorly managed finances or running out of funds to keep going.

Planning your finances in the early stages of your business saves you from encountering such a problem later on.

Hence, planning your finances is mandatory while writing a business plan.

Download a sample daycare business plan

Need help writing your business plan from scratch? Here you go;  download our free daycare business plan pdf  to start.

It’s a modern business plan template specifically designed for your daycare business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

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Daycare Business Plan Summary

In conclusion, apart from having a good image as an organization, a well-managed team, a clearly defined niche, thorough research of the market and an excellent financial plan is crucial to the success of a daycare business.

After getting started with Upmetrics , you can copy this sample daycare business plan into your business plan and modify the required information and download your daycare business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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BUSINESS STRATEGIES

How to create a daycare business plan

• Nirit Braun
• Sep 11, 2023

When you're getting ready to launch your daycare business, one of the first things you'll want to do is create a solid business plan. Think of it as your roadmap for success. This document spells out your goals, strategies and financial projections within the childcare industry.

It serves as your trusty guidebook, helping you navigate the path to success and providing solutions for any challenges that come your way. Keep reading to learn more about the specific elements of a strong daycare business plan, and use the template at the end to get started.

Ready to launch your daycare business? Create a business website today with Wix.

Top benefits of creating a daycare business plan

Starting a daycare business demands careful planning, and a well-structured business plan offers numerous benefits that can significantly contribute to its success:

Helps raise money for your business : Experts estimate that for a home-based daycare serving four to six children, startup costs can exceed $36,000 . A comprehensive business plan is essential when seeking investors or financial support. It showcases your clear vision, market research and growth strategies, demonstrating your commitment and knowledge about the daycare industry. Potential investors are more likely to provide funding when they see a thoughtfully crafted plan that outlines potential returns on their investment.

Helps allocate resources : Writing a business plan forces you to conduct thorough research on what resources, supplies and staff are needed to launch and run your daycare center successfully. From facilities and equipment to educational materials and safety protocols, this detailed analysis ensures that you're fully aware of the startup and operational costs, preventing any unexpected surprises down the road.

Provides operational clarity : A well-constructed business plan outlines your daycare center's daily operations, including schedules, curriculum and staffing requirements. This clarity not only helps you understand the practical aspects of starting a business but also provides a structured approach to managing day-to-day activities effectively.

Highlights market insights : Through the process of writing your business plan, you delve into market research, identifying your target demographic, understanding their needs and analyzing your competitors. According to Zippia, 58% of working parents depend on childcare centers, which means you have a very large market to work with. This information is invaluable in tailoring your services to stand out in a crowded niche, creating a unique selling proposition that attracts parents and caregivers.

Helps with risk management : Starting a daycare business involves addressing potential challenges and risks. A business plan encourages you to identify these risks upfront and develop contingency plans to mitigate them. This proactive approach increases your preparedness and helps you navigate unexpected obstacles with more confidence.

Creates a profitability timeline : Financial projections included in your business plan offer insights into the revenue and expenses expected in the early stages of your daycare business. This information is crucial for determining when your business will become profitable and ensuring that you have a sustainable financial strategy.

Learn more: How to start a service business

How to create a successful daycare business plan in 6 steps

Now we’ll walk through the six essential steps for crafting a daycare business plan tailored to your company's unique needs.

Executive summary

Business and domain names

Market analysis and research

Operations plan, marketing and advertising plan, financial plan.

Thinking of developing another type of business? Check out more service business examples .

01. Executive summary

The executive summary is a concise overview of your entire daycare business plan. It provides a snapshot of your business concept, key strategies, goals and financial projections. While it appears at the beginning of your plan, it's often written last, after you've fully developed the other sections. A well-written executive summary should capture the reader's attention and convey the essence of your daycare business in a compelling and clear manner.

To write a clear executive summary for a daycare business, incorporate the following details:

Overview : Introduce your daycare business and highlight its unique features. Mention the age groups you'll serve, the educational approach you'll adopt and any specific services or benefits that set your daycare apart.

Demand : Describe the demand for daycare services in your target area. Mention any growth trends in working parents, shifting demographics or changes in government policies that could impact your business.

Operations : Briefly outline your strategies for attracting and retaining customers, managing operations efficiently and achieving growth. Touch on your marketing, staffing, curriculum and safety plans.

Staff : Highlight key members of your management team and their relevant experience in the daycare or education sector.

Financials : Provide a high-level overview of your projected revenue, expenses and profitability. Mention the timeframe you expect to break even and showcase your potential for generating returns for investors. You can also mention the amount of initial investment you're seeking and how you plan to use the funds.

Example executive summary for a daycare business

“ABC Sunshine Daycare is a premium childcare center dedicated to providing a nurturing and educational environment for children aged six months to five years. Our play-based curriculum, experienced educators and commitment to child safety make us the ideal partner for parents seeking top-tier care. With a projected 15% annual growth in working parents in our area, we are poised to tap into a significant market opportunity.

Our key strategies include partnering with local businesses to offer exclusive discounts to their employees, implementing a comprehensive child development curriculum and maintaining a low student-to-teacher ratio for personalized attention. We anticipate achieving profitability within the first 18 months, with a projected revenue of $350,000 by the end of Year 2.

We seek $150,000 in funding to secure a prime location, equip our state-of-the-art facility and launch targeted marketing campaigns. Our leadership team comprises experienced educators and childcare professionals, ensuring the highest quality of care for our young learners.”

02. Business and domain names

Knowing how to name a business is crucial for a daycare center and a key step before you register your business . It will be the foundation of your brand identity, influencing how parents perceive your services and creating trust. When choosing a name, consider its relevance to child care, its uniqueness and its ease of pronunciation and memorability.

Using a business name generator like one from Wix can spark creativity and offer unique suggestions that align with your daycare's values and mission. Once you've settled on a name, securing a matching domain name is essential for establishing an online presence. A domain name that reflects your business name makes it easier for potential clients to find you online.

You’ll want to first conduct a domain name search to ensure that the name you want isn't already in use.

Some best practices for choosing a domain name are to keep it short and memorable, which means avoiding complex spellings or special characters. Be sure to make it relevant to your specific services and values. The recommendation is to choose a domain extension (.com, .net, .org) that's familiar and commonly used.

03. Market analysis and research

Strong market analysis is vital for understanding the competitive landscape for this type of business and identifying opportunities where you can thrive. Research the demographics and psychographics of your target audience, their needs, preferences and pain points. Analyze your competitors—both other daycare centers and alternative childcare options—to identify gaps in the market that your business can address.

Incorporate this analysis into your business plan to develop a more robust marketing strategy . Highlight how your daycare's unique value proposition will resonate with parents and differentiate you from the competition. Include plans for pricing, branding, promotions and customer retention strategies to attract and retain families.

04. Operations plan

Your operations plan outlines the practical aspects of running your daycare business. This includes details such as:

Location: Explain the rationale behind your chosen location, considering factors like accessibility, safety and proximity to potential clients.

Premises: Describe the layout and design of your facility, including play areas, classrooms, restrooms and any outdoor spaces.

Equipment: List the equipment and supplies required for daily operations, from educational materials to furniture and safety equipment.

Staffing: Outline your staffing needs, including teachers, assistants and administrative personnel. Detail their qualifications, roles and responsibilities.

Healthy and safety: Highlight your health and safety protocols, emergency procedures and compliance with relevant regulations.

By including these details in your operations plan, you demonstrate a clear understanding of how your daycare business will function and meet the needs of both children and parents.

05. Marketing and advertising plan

To get started with marketing, you’ll need to develop a suite of brand assets, starting with a company logo. You can use a free logo maker to get a professional design in minutes.

Learn more: How to make a website

Your marketing and advertising plan outlines the strategies and campaigns you'll employ to promote your daycare business. Consider a mix of both traditional and digital marketing methods, such as social media. Utilize online platforms like Facebook, Instagram and Pinterest to share engaging content, showcase your facility and connect with parents. You can also use your social media accounts to collaborate with local businesses, pediatricians and schools to build a referral network and increase visibility.

Use your business website for targeted online ads to reach parents in your area who are actively searching for childcare options. Additionally, you could publish a blog on your website that offers parenting tips, educational insights and other valuable content that positions your daycare as an authority in child development.

You can also organize open houses, workshops, or parent-child events to give families a firsthand experience of your daycare's offerings.

06. Financial plan

The financial plan is a critical component of your daycare business plan, outlining your initial funding requirements, revenue projections and profitability timeline. Specify the sources of funding you're seeking—whether through personal investment, loans or investors—and detail how the funds will be allocated.

Provide a breakdown of your startup costs, including cost to start an LLC if relevant, expenses for facility setup, equipment purchase, staffing, marketing and any administrative costs. Present projected revenue based on enrollment estimates, pricing strategies and the competitive landscape.

Create a cash flow forecast that outlines your expected inflows and outflows over a specific timeframe. This projection will help you identify potential financial challenges and plan for adequate cash reserves.

Include a profitability analysis that showcases when you anticipate reaching break-even and becoming profitable. This information is crucial for both potential investors and your own financial planning.

By including a well-structured financial plan, you demonstrate your business' financial viability and your understanding of the financial aspects of running a daycare center.

Template for a daycare business plan

Note that this template is meant to serve as a starting point for your daycare business and you should customize it to reflect your specific business concept and goals.

A brief introduction to the daycare business concept

Market opportunity and growth potential

Key strategies for curriculum, staffing and marketing

Financial projections: revenue, profitability, funding needs

Company and domain name

Name: [Your Daycare Name]

Domain: www.[YourDaycareName].com

Demographics and psychographics of target audience

Competitive landscape analysis

How your daycare addresses market needs

Location details

Facility layout, safety features, outdoor spaces, etc.

Equipment, inventory and setup

Staff roles, qualifications and responsibilities

Health and safety protocols and compliance

Social media strategy

Local partnerships, collaborations with local businesses

Open houses and events

Online advertising plan and ad types

SEO and content marketing strategy

Initial investment requirement

Startup costs including facility setup, equipment, staffing and marketing

Projected revenue based on enrollment estimates and pricing

Cash flow forecast over the first year

Profitability and break-even point analysis

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Legal Templates

Home Business Business Plan Daycare

Daycare Business Plan Template

Download our template and create a business plan for your daycare!

Updated September 22, 2023 Reviewed by Brooke Davis

When you are ready to start a daycare business, you need an effective plan outlining how to get there. High-quality child care is in high demand, but you must be prepared for the challenges of starting a new business.

A solid business plan will get you off on the right foot before you even open the doors of your new facility.

With these helpful tips, you can learn how to make a business plan for a daycare center. Whether you are looking to watch over young children or even need a dog daycare business plan, Legal Templates is here to help you get started.

Why You Need a Business Plan for Your Daycare Business

How to write a business plan for a daycare.

• Management Team

Daycare Business Plan Sample

A business plan sets the stage for how you will operate your business and how you will get it running. A daycare is no different. Opening a daycare requires intensive planning, legal compliance, and understanding of your market.

A daycare business plan template walks you through the steps to build a proper path forward. Every successful business is planned correctly, not as you go along.

A sample daycare business plan pdf or Word document lays it out for you. You can learn how to put it together and what you must include. Many business plans help you understand what you must do to prepare.

Some are designed to recruit potential investors to your cause. Either way, you need a business plan to prepare you for the challenges and successes ahead.

Knowing how to write your daycare business plan can be tricky without some help. You may not have done this before, but a daycare business plan example can help.

Follow these writing tips in each section to create a strong business plan for your future daycare.

1. Executive Summary

The initial section of your business plan is the executive summary. This part of your plan is an introduction for whoever reads it. It is designed to offer an overview of the remaining sections. It should be concise and add only summary details—this is not the section for intensive information or data.

The executive summary will highlight what your daycare business will look like and the most crucial section of your entire plan.

This section may provide information such as:

• A business address
• Phone number, email address, and other contact information
• List of owners
• Banking information
• Start date for the daycare
• Client base
• Market niche
• Factors for success

The executive summary lets you make a case for why your particular daycare will be successful and competitive. It is also the section that helps you sell yourself and your business to potential investors who may play a critical role in starting your daycare.

Provide a mission statement that reflects your goals for the daycare and your motivation for starting your business.

2. Management Team

Your daycare business plan should include important information about your management team. The first part of this section may address ownership of the business itself. It should outline all essential ownership details, such as:

• Legal names of every owner
• Each owner’s proportionate share
• The format of ownership percentage (i.e., stocks, capital investments, etc.)
• The format of the business (Corporation, LLC, etc.)
• Contact information for each owner

You want everyone who reads this business plan to know who has a stake and how their interests are represented. These details are a crucial part of business formation and preventing costly legal disputes in the future.

The management team section should also include the profiles of your management staff. These people will run the business daily, and they should be properly vetted before being put in charge.

Your business plan should list the management teams’:

• Names and positions
• Summary of responsibilities
• Credentials and education background
• Prior employment or experience
• Early childhood education licensing or other credentialing
• Management experience
• Salary and benefits
• Past success in a similar role

This information should demonstrate why these are the right people for the job. Not only does it help you know how your business will run, but it also shows others you have a proper plan in place for your daycare.

3. Products and Services

This section lets you talk about why you are starting this business in the first place. You will outline the services or products you intend to sell to consumers. For a daycare, it should outline the following:

• Who is being cared for: Children, elderly adults, or pets?
• Business hours
• Staff costs and required credentials
• Will you offer food, diapers, and other child-care products?
• How will you measure sales metrics

Daycare is typically considered a service, but product sales are also often a part of this model. Your plan should adequately account for how you will handle this dual purpose and how it fits into your business model.

4. Customers and Marketing

You must identify your market and how you will get customers into your daycare. This section will focus on your area’s need for daycare services and the types of customers you expect to get.

Identification of customers is a vital part of a business plan and should include details like:

• How many parents need childcare services?
• What costs can families be expected to pay for your services
• The community you will target
• Demographic data for potential customers

With your customers in mind, you can focus on your marketing strategies. You want to differentiate yourself from competitors and ensure the community knows your new business. The daycare business plan must outline how you will achieve these goals.

A marketing strategy should combine both traditional and digital marketing methods, including:

• Open houses
• Word-of-mouth advertising
• Advertisements in the paper or yellow pages
• Billboards or other ads
• Television, radio, or internet advertisements
• Social media pages

5. SWOT Analysis

A SWOT analysis will address your daycare’s strengths, weaknesses, opportunities, and potential threats. This analytical method examines your company and how it will operate.

It puts each of the four metrics into a visual matrix to help prospective business owners quickly identify favorable and unfavorable factors that may affect their business venture.

A SWOT analysis should focus on how your daycare services can perform against competitors. It may address factors like:

• Any threats the daycare may face
• Competitive advantages and why they would be successful
• Areas that may be improved over time
• Technology or resources the company may use to increase efficiency
• Internal factors that may affect economic success

Detailed SWOT sections show investors you have done your homework and give you valuable data to make informed business choices.

6. Financials

A business plan should address the unique financial situation you face. Your daycare business plan should demonstrate your break-even amounts and expected profit margins.

It will also address the costs and the areas of revenue you expect. You will want to address the following:

• Enrollment fees
• Payment plans
• Cost of supplies and materials
• Employee costs
• Regulatory costs
• Additional program offerings and revenue
• Necessary loans or capital improvements

A well-developed budget can demonstrate expected cash flows versus expected expenditures. Knowing how to handle these costs will be incredibly helpful in starting your daycare.

7. Operations

Your operational plan should outline specific procedures your business and staff will follow. It will list employees and those in management positions and their responsibilities.

As in your management section, a detailed “chain of command” is essential. Staff are an important part of your operations and should be detailed here.

One of the most important aspects of a daycare operation is its location. It would be best if you addressed the following:

• The facility’s address
• The type of area it is in (residential, commercial)
• The space available and amenities
• Why is it a prime location
• Accessibility to the community for drop-off

You should also list your business hours and the services you will have available at different times. Child daycare centers differ in when they offer care—whether during the day, evenings, or even on weekends.

If you are doing other forms of daycare, you may even utilize late or overnight hours. You can decide how you run your business, but operations should be clearly outlined in your business plan.

8. Appendix

The appendix section allows you to include other documents that add to your business plan. They may include legal documents like licensing credentials, insurance information, and business formation documents.

Additional documents in this area are meant to support your business plan. The appendix might also include the following:

• Reference letters
• Photographs of the facility, locations, or general area
• Market research data
• Compliance Requirements

The appendix is a flexible section that lets you add supporting documents and other relevant information. Only add details that are helpful to your business plan. The appendix does not need to be lengthy or filled with fluff.

Legal Templates has the daycare business plan sample you need to construct your plan. With this sample at your disposal, you can formulate a business plan for your daycare to show to investors or for your purposes.

You may also use a business plan builder template to help you construct your daycare business plan step by step. See the sample below to help you get started.

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How to Write a Business Plan for Daycare and Preschool

• brightwheel
• Running a business

Writing a daycare or preschool business plan is a big task, but due diligence and hard work will help you understand what you’ll need to launch and run a daycare or preschool successfully.

What do daycare investors want?

Your local government will have rules and regulations you’ll need to follow as a small business owner and childcare provider. Start by reviewing the childcare licensing guidelines for your state and city. Once you’re clear on licensing guidelines, you’re ready to start writing your childcare business plan.

The purpose of a business plan is to help secure funding. You’ll likely need financing to launch your preschool or daycare, especially if you want to avoid the monthly repayment of a loan. 

Investors provide businesses with money in exchange for partial ownership. As a result, they expect a larger return on their initial investment. Because many investors work in business, they prefer to invest in an established company.

Most investors look for:

Industry background and experience

Financial performance and promise.

Investors want to make money. Therefore, they are more inclined to work with experienced entrepreneurs and business owners to guarantee a return on their investment. 

This might sound discouraging for those with little experience or without a business management background, but the opportunity doesn’t end there. You could consider bringing on a partner with a business background. Additionally, many investors act as a source of business advice. 

You need to demonstrate that your business will make money. Investors will likely want to see signs of business growth before they give you money. 

Additionally, investors will want to know about your financial stability. Questions an investor might ask are:

• What do you plan to do with the money?
• Has your business been up or down in recent years?
• Is your company losing money? Are there signs of growth for the future?
• How do you plan to repay your investment?

Of course, every investor is different, so they’ll consider various factors. While experience and financial promise are at the top of the list for most investors, they might also look for uniqueness, business readiness, an effective business model, and more.

Writing a daycare business plan

We’ve discussed licensing and investors. Now, you’re ready to begin the framework of your business plan for daycares and preschools. Here’s what you’ll need to get started:

Business description

Needs assessment, insurance policies, operating policies and procedures, marketing strategy.

Start with the basics: what does your daycare do? Detailing the service you’re offering will help you create a clear business plan. Next, you might want to write some goals or even a mission statement outlining your purpose and motivation.

Start by looking at general daycare or preschool industry trends, then narrow your scope to the preschools or daycares in your local area. Next, you’ll need to figure out who your target customers are and confirm that there is a need for a business like yours in your community. 

Are there a lot of young families in your neighborhood? Are you located somewhere convenient for commuting parents? Does your business offer a specific service that your competitors don’t, like early check-in or extended hours? 

Also, check out the competition. Research the existing daycare or preschool options in your community. Look at current preschool or daycare business plan samples. What makes your daycare or preschool unique? 

Developing detailed budgets will help you run your small business. You’ll need to compare your current cash flow and expenditures to determine whether you’ll make a profit.

Build a budget for unexpected costs. For example, how many children do you need to serve to be able to pay your bills and stay afloat? Child Care Aware of America offers some terrific budgeting resources for this process.

Depending on the type and size of your preschool, you’ll need insurance policies of several different types, including liability, property, workers’ compensation, and business insurance. Check the licensing requirements for guidance in building this part of your preschool business plan.

Create a comprehensive handbook for families and staff that includes you center's policies and procedures. For instance, you'll need to develop an emergency plan , daycare sick policy , and other safety protocols according to your local childcare licensing requirements. 

Your staff handbook will be a helpful resource your employees can reference and include all your employment policies including work and pay schedules, benefits, and information about professional growth and development. You can also include information on your center's philosophy and curriculum, classroom procedures, and expectations for working with children and families.

Your marketing strategy is the key to attracting customers. Decide what type of advertising you will use in front of potential customers. For example, list your school in local directories and participate in parenting and kid-friendly community events. Run a social media campaign focusing on your target population.

Another big part of childcare business marketing is differentiating yourself from other preschools. These days adopting daycare software is a surefire way to attract families with young children. A tool like brightwheel's center management feature will streamline your center's admission process, record keeping, and reporting, saving you up to 20 hours per month. 

You can also use brightwheel for recording and tracking daily events and activities, and sending real-time updates to families throughout the day. It also offers secure, digital check-in/check-out and a paperless billing system. This is a great way to keep your families looped in on daily activities and handle all of your administrative tasks in one place.

Your business is ready!

Writing a business plan can be stressful, but it doesn’t have to be. Once you secure the proper licensing, use the information in this article to guide you through creating a solid daycare business plan that drives investors and financing to your business.

These are just the basics to get you started. For further information, the U.S. Small Business Administration’s website has detailed instructions on creating each necessary part of a successful business plan. 

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A list of everything you need to start an early education program.

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Table of contents, a comprehensive home daycare business plan guide.

• 16 May, 2024

Planning Your Home Daycare Business

Before embarking on the journey of starting a home daycare business, it is essential to have a well-developed business plan and consider the financial aspects.

Developing a Business Plan

A comprehensive daycare business plan is a crucial foundation for success. It should outline the key components of your business, including an executive summary, company description, market analysis, organization and management structure, details of products and services offered, marketing strategies, funding requirements, financial projections, and supporting documents like tax returns, credit histories, permits, and leases ( National Funding ).

By creating a solid business plan, you can define your goals, identify your target market, and establish a roadmap for success. It serves as a reference point for decision-making and helps you stay focused on your objectives. Additionally, lenders and investors often require a business plan when assessing the viability of providing funding for your home daycare venture.

Financial Considerations

Financial planning is a critical aspect of your home daycare business plan. It involves estimating costs, determining funding needs, projecting growth over a span of three or more years, developing tax plans, assessing insurance requirements, and budgeting for personnel, equipment, supplies, and other expenses.

Financial Forecasting

Forecasting plays a significant role in your child care center budget plan. It allows you to predict the financial future of your business by estimating revenue and anticipating expenses based on past financial performance and current revenue trends. A well-executed financial forecast helps you make informed decisions, set realistic goals, and identify areas for improvement ( Procare ).

Managing Cash Flow

Effective cash flow management is vital for the success of your home daycare business. It involves monitoring the inflow and outflow of money, ensuring that you have enough funds on hand to cover expenses, and planning for fluctuations in income and expenses. By maintaining a healthy cash flow, you can avoid financial stress, meet your financial obligations, and plan for future growth.

When applying for funding or seeking financial support, having an accurate financial forecast is crucial. Lenders and investors require this information to understand how your business plans to generate revenue, grow, and repay borrowed funds ( Procare ).

To ensure proper financial management, consider consulting with a financial advisor or accountant who specializes in small businesses. They can provide valuable insights and guidance tailored to your specific needs and help you navigate the financial aspects of your home daycare business.

By developing a comprehensive business plan and considering the financial aspects of your home daycare business, you are setting yourself up for success. These foundational steps will help you make informed decisions, manage your finances effectively, and achieve your goals as a home daycare provider.

Market Research and Analysis

In order to create a successful home daycare business, it’s important to conduct thorough market research and analysis. This will help you understand the local landscape and identify your target clientele.

Understanding the Local Landscape

Before starting your home daycare business, it’s crucial to research and understand the local market. This involves assessing the demand for childcare services in your area and identifying potential competitors. By conducting market research, you can gain valuable insights into the needs and preferences of parents in your community.

Begin by evaluating the demographics of your area, such as the number of families with young children, population growth rates, and household income levels. This information can help you gauge the potential market size and identify any specific trends or characteristics that may influence your business strategy. For a comprehensive understanding of the local landscape, consider factors such as the number of existing daycare facilities, their services, pricing, and reputation.

Identifying Target Clientele

Once you have a clear understanding of the local landscape, it’s essential to identify your target clientele. This involves defining the specific market segments that you aim to serve with your home daycare business. By focusing on a well-defined target audience, you can tailor your services, marketing efforts, and overall approach to meet their specific needs.

Consider factors such as the age range of children you plan to care for, the working hours of parents in your area, and any special requirements or preferences that parents may have. For example, some parents may prioritize a focus on early childhood education, while others may prioritize a nurturing and inclusive environment. By understanding your target clientele, you can develop a business model that aligns with their expectations.

To effectively identify your target clientele, utilize the demographic information gathered during your market research. Look for patterns and trends that can help you determine the most viable segments to focus on. Remember, it’s important to avoid a broad and ineffective approach that targets everyone in the community. Instead, strive to attract and serve a specific segment of parents who will benefit most from your services.

By understanding the local landscape and identifying your target clientele, you can lay a strong foundation for your home daycare business. This knowledge will inform your business decisions, marketing strategies, and service offerings, helping you create a daycare that meets the needs of your community.

Setting Up Your Home Daycare

When starting a home daycare, proper planning and organization are essential to ensure a safe and nurturing environment for the children under your care. This section will cover two key aspects of setting up your home daycare: location and safety regulations, as well as equipment and supplies.

Location and Safety Regulations

Choosing the right location for your home daycare is crucial for both the safety and comfort of the children. When developing your home daycare business plan , you should consider whether your daycare will operate inside or outside your home. Be sure to check and comply with local and state safety regulations, including childproofing the space, having a first aid kit, and ensuring proper supervision and emergency preparedness ( Procare ).

To provide a safe environment for the children, you may need to childproof the premises by installing safety gates, outlet covers, and cabinet locks. It’s important to have fire safety measures in place, such as smoke detectors, fire extinguishers, and a well-defined fire escape plan. Familiarize yourself with the regulations and requirements for home daycares in your area, including licensing and zoning laws. If you need assistance with understanding these regulations, it’s advisable to consult with local authorities or seek professional advice.

Equipment and Supplies

Equipping your home daycare with the right furniture, toys, and supplies is essential for providing a stimulating and comfortable environment for the children. Consider age-appropriate equipment such as cribs, high chairs, tables, chairs, and age-appropriate toys. Having a variety of educational toys, books, art materials, and outdoor play equipment can enhance the learning and play experiences of the children in your care ( Procare ).

It’s important to ensure that all equipment and supplies meet safety standards and are regularly inspected for any potential hazards. Regularly sanitize and clean toys and play areas to maintain a hygienic environment. Additionally, having a reliable communication system, such as a phone or intercom, can help you stay connected with parents or guardians in case of emergencies or any other important updates.

By adhering to location and safety regulations and providing the necessary equipment and supplies, you can create a safe and enriching environment for the children in your home daycare. Remember to keep up-to-date with any changes in regulations and regularly assess and update your equipment and supplies to ensure the highest quality of care for the children.

Staffing and Operations

Running a successful home daycare business requires careful attention to staffing and operations. This section focuses on two essential aspects: hiring and training staff, and establishing daily operations and policies.

Hiring and Training Staff

When it comes to hiring staff for your home daycare, it is crucial to find individuals who are experienced, reliable, and passionate about working with children. Start by clearly defining the job roles and responsibilities to attract the right candidates. Consider the number of children in your care and the age range you cater to when determining staffing needs.

During the hiring process, conduct thorough interviews, check references, and perform background checks to ensure the safety and well-being of the children in your care. It is essential to comply with employment standards, health and safety regulations, and licensing requirements ( Source ).

Once you have hired your staff, invest time in providing comprehensive training. This training should cover topics such as child development, emergency procedures, health and safety protocols, and your daycare’s policies and procedures. Regularly assess and update your staff’s skills to ensure they are equipped to provide quality care and maintain a safe environment.

Daily Operations and Policies

Establishing clear and well-defined daily operations and policies is crucial for the smooth functioning of your home daycare. This section of your business plan should outline pertinent details such as personnel, schedules, services provided, parent policies, and emergency plans.

In terms of personnel, specify the roles and responsibilities of each staff member. This includes their duties during different times of the day, as well as their responsibilities in relation to child supervision, meal preparation, and activity planning.

Create a schedule that outlines the daily routine of the daycare, including meal times, nap times, playtime, and educational activities. This schedule will provide structure for both the children and staff, ensuring a productive and engaging environment.

Your daycare’s services should be clearly defined. This includes information about meals provided, any specialized activities or programs offered, and the approach to early childhood education.

Parent policies should cover guidelines for drop-off and pick-up procedures, behavioral expectations for children, communication methods with parents, and any additional rules or guidelines that parents need to follow.

Lastly, your business plan should include emergency plans, such as fire escape routes, evacuation procedures, and medical protocols. Clearly outline the steps to be taken in case of emergencies, ensuring the safety and well-being of the children in your care.

By hiring and training competent staff and establishing comprehensive daily operations and policies, you can create a nurturing and structured environment for the children in your home daycare. This will not only provide peace of mind to parents but also contribute to the success and reputation of your business.

Marketing Strategies

To ensure the success of your home daycare business, it’s essential to implement effective marketing strategies. This section will focus on two key aspects: conducting a market analysis and competition assessment, and defining your unique business niche.

Market Analysis and Competition

Before launching your home daycare business, conducting a thorough market analysis is crucial. This analysis helps you understand the local landscape and identify potential opportunities and challenges. Consider factors such as demographics, consumer trends, and market size to better target your marketing efforts.

Researching your competition is equally important. Take note of other childcare centers in your area and analyze their offerings, pricing, and reputation. This analysis allows you to understand the competitive landscape and identify ways to differentiate your business ( Mailchimp ).

To stand out from the competition, consider the following strategies:

• Unique Selling Proposition (USP): Identify what sets your home daycare apart from others. Whether it’s a specialized curriculum, flexible hours, or a nurturing environment, highlight these unique qualities in your marketing materials and communication with potential clients.
• Quality of Care: Emphasize the quality of care and attention that children will receive at your home daycare. Highlight your qualifications, experience, and any specialized training you have undergone to build trust with parents.
• Testimonials and Reviews: Encourage satisfied parents to provide testimonials or reviews of your services. Positive feedback from happy clients can have a significant impact on attracting new customers.
• Online Presence: Establishing a professional website for your home daycare is essential. It serves as a platform to provide information about your services, staff, and programs. Optimize your website for search engines ( SEO ) and ensure it is user-friendly and mobile-responsive.
• Online Visibility: Increase your online visibility through social media marketing and local directory listings. Engage with parents through platforms like Facebook, Instagram, and local parenting groups. Share valuable content, parenting tips, and updates about your daycare to build a community of interested parents.

Defining Your Business Niche

Defining your business niche helps you target a specific segment of the market and differentiate yourself from other daycare providers. Consider the following factors when defining your niche:

• Age Group: Determine the age group you will cater to, such as infants, toddlers, or preschoolers. Focusing on a specific age range allows you to tailor your curriculum and activities to meet their developmental needs.
• Specialized Programs: Consider offering specialized programs or services that address specific needs of children, such as early literacy, music, or language development. This can attract parents looking for unique offerings for their children.
• Flexible Hours: If there is a demand for flexible childcare options in your area, consider offering extended hours or weekend care to cater to the needs of working parents.
• Cultural or Language Focus: If you have expertise in a particular culture or language, offering a bilingual or culturally immersive program can be a unique selling point.
• Inclusion and Special Needs: If you have experience or training in working with children with special needs, consider offering inclusive care to cater to families seeking inclusive environments for their children.

By defining your business niche, you can position yourself as a specialized and sought-after home daycare provider. This allows you to attract parents who align with your unique offerings and are more likely to choose your services over competitors.

Remember, effective marketing is an ongoing process. Continuously evaluate your strategies, adapt to changing market dynamics, and seek feedback from parents to ensure your home daycare business remains competitive and successful.

Budgeting and Forecasting

When starting a home daycare business, budgeting and forecasting are vital components of your overall business plan. These financial practices help you estimate revenue, anticipate expenses, and make informed decisions about the financial future of your business. In this section, we will explore two key aspects of budgeting and forecasting for a home daycare business: financial forecasting and managing cash flow.

Financial forecasting is the process of predicting the financial future of your home daycare business. It involves estimating revenue and anticipating expenses based on past financial performance and current revenue trends. By incorporating forecasting into your budget plan, you can effectively manage cash flow, avoid overspending, and stay within your budget ( Procare ).

An accurate financial forecast is essential for planning and making informed decisions. It helps you anticipate revenue fluctuations throughout the year, allowing you to set aside funds during lean months and strategize marketing efforts to attract new customers during slow seasons. This proactive approach ensures that your business remains financially stable and resilient ( Procare ).

When applying for funding to start or expand your home daycare business, providing a financial forecast is necessary. Lenders require this information to understand how your business plans to grow, generate revenue, and repay the borrowed funds. A well-prepared financial forecast demonstrates your understanding of the financial aspects of your business and increases your chances of securing funding ( Procare ).

To create a financial forecast for your home daycare business, follow these steps:

• Gather financial records: Collect and review your past financial records, including revenue, expenses, and cash flow statements.
• Choose a forecasting approach: Decide whether to use historical data, research-based forecasting, or a combination of both, depending on your business’s unique circumstances.
• Analyze past performance and industry trends: Evaluate your historical financial data and analyze industry trends to make informed projections.
• Create a financial forecast: Use the gathered information to estimate your future revenue and expenses. Consider factors such as enrollment numbers, pricing structure, operating costs, and potential growth opportunities.
• Regularly review and update your forecast: Continuously monitor and analyze your financial forecast to ensure it aligns with your business goals. Make adjustments as needed to stay on track.

Effective cash flow management is crucial for the success of your home daycare business. It involves monitoring the inflow and outflow of cash to ensure you have sufficient funds to cover expenses and maintain financial stability.

To manage cash flow effectively, consider the following strategies:

• Track income and expenses: Keep detailed records of all income sources and expenses related to your home daycare business. This includes tuition fees, supply costs, utility bills, and other operational expenses.
• Establish a budget: Create a comprehensive budget that outlines your projected income and anticipated expenses. This will help you identify potential cash flow gaps and make necessary adjustments.
• Plan for contingencies: Set aside funds for unexpected expenses or emergencies. Having a contingency fund will provide a safety net and mitigate financial risks.
• Invoice promptly and follow up on payments: Send out invoices promptly and follow up on any late payments to ensure a steady cash flow.
• Monitor and control expenses: Regularly review your expenses and identify areas where you can reduce costs without compromising the quality of care.
• Consider home daycare insurance: Protect your business from unforeseen events by obtaining the appropriate insurance coverage, such as home daycare insurance .
• Seek professional advice: If you’re unsure about managing your cash flow effectively, consider consulting with a financial advisor or accountant who specializes in small businesses.

By incorporating financial forecasting and implementing effective cash flow management strategies, you can ensure the financial stability and success of your home daycare business. Regularly review and update your financial forecasts to stay on track and make informed decisions that contribute to the growth and profitability of your business.

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Crafting a Strategic Blueprint: The Key Elements of a Home Daycare Business Plan

The key to achievement in the field of childcare, where nourishing young minds and fostering a safe environment are vital, rests in rigorous preparation and effective implementation. Every endeavor necessitates a firm foundation and home childcare is no exception. A well-crafted home daycare business plan is the blueprint that charts the road for a thriving home childcare organization.

In this article, we will explore the core, meaning, and major aspects of a home daycare business plan—a superb tool that enables ambitious childcare entrepreneurs to turn their concept into a thriving reality.

Table of Contents

Encompassing Your Venture’s Goals

The foundation of any enterprise is a clear and persistent sense of purpose combined with a well-defined path. This principle is very important when starting a daycare business. An effective daycare endeavor begins with a well-designed business strategy that clearly defines its goals and aspirations. This plan serves as a compass, directing the company to its desired outcomes.

A comprehensive articulation of objectives is required while creating a daycare business plan. Do you want your business to be known for offering exceptional early childhood education and creating a supportive atmosphere for young brains to thrive? Alternatively, are you focusing your efforts on a single age group, or are you seeking to cater to a wide range of ages? These critical questions guide the development of your daycare’s mission, ethos, and offers.

Read more about: Play, Learn, Prosper: A Guide to Starting Your Daycare

Identifying Your Target Market

insight into your target market precisely is a cornerstone of strategic company planning, since this insight provides the foundations of adapting services to maximum efficacy. The procedure demands a thorough examination of the demographics of the families you wish to help. This includes age groupings, financial ranges, geographic regions, and identifiable preferences.

By methodically studying demographics, you gain the capacity to create services that are suited to the smallest details of their circumstances. Understanding the exact income levels prevalent in your area, for example, allows you to calibrate price structures, assuring accessibility while maintaining your business. Similarly, identifying site preferences aids in the selection of suitable premises that promote ease and accessibility.

Mapping Out Services Offered and Pricing

Starting a childcare business demands a meticulously planned assortment of services that cater to the different needs of parents and their cherished children. This mosaic of services ranges from comprehensive full-time care to flexible part-time arrangements, and its branches include engaging after-school programs and customized specialized educational activities.

Diversifying your offerings to include after-school activities demonstrates your knowledge of the increased demands on parents’ time and demonstrates your dedication to promoting children’s development outside of typical hours. Customized educational activities allow youngsters to explore their interests, promoting a well-rounded growth trajectory.

Strategizing Your Marketing Approach

A comprehensive marketing strategy guarantees that your daycare’s distinctiveness is not lost in the shuffle. By skillfully implementing an online presence, you may leverage the global reach of digital platforms, employing websites, social media, and online advertising to throw a wide net over a large number of prospective parents. This virtual display invites parents into a virtual world that recounts your daycare’s culture, mission, and special offers.

Word-of-mouth referrals, a tribute to the trust placed in your services, produce a credibility ripple effect. Satisfied parents become ambassadors, sharing their positive experiences and confirming your daycare’s dedication to excellence.

Read more about: Smart Start for Daycare Centers: Utilizing Free Templates for Daycare Center Business Plans

Focusing on Operational Details

Curriculum planning is a shining example of educational excellence. The discriminating strokes of your strategy establish the topics, concepts, and approaches that lead the exploration and progress of young minds. Health and safety protocols act as a shield, outlining the actions to protect children’s well-being, from health checks to emergency response processes.

Prioritizing Safety Measures

Staff training serves as the first line of defense, providing your team with the information and skills needed to manage any situation effectively. These training initiatives develop a knowledgeable and confident staff that values safety above all else, from first aid and CPR certifications to child behavior management.

Childproofing strategies make your daycare’s physical spaces a safe sanctuary. You may create an environment that encourages exploration while limiting risks by thoroughly identifying potential hazards and applying protective measures.

Forecasting Financial Projections

The estimated launch costs serve as the foundation, including everything from licenses and permissions to facility setup and first staffing. This comprehensive forecast provides you with a road map, helping you to negotiate the treacherous terrain of initial investment with foresight and caution.

Financial analysis is more than just a number-crunching activity; it is a strategic tool that illuminates both opportunities and difficulties. You’ll be able to design a pricing strategy that strikes a delicate balance between sustainability and profitability, connecting the value you deliver with the income you produce, once you’ve navigated these waters.

Ensuring a Sustainable Childcare Operation

A thoroughly structured business plan serves as the core framework for your childcare. It crystallizes your vision, defines your methods, and weaves a purpose and direction narrative. However, its importance extends beyond the first launch—it serves as a guidepost as you navigate the complicated dance of change.

Adapting to changing conditions is inherent in company dynamics, and a well-crafted plan is your guiding light amid change. Your company strategy provides the structure for seamless adaptability, from responding to market trends and technological improvements to accommodating new instructional techniques.

Frequently Asked Questions

Why is a daycare business plan necessary for starting a childcare business.

A daycare business plan is necessary since it gives a detailed roadmap for your company. It describes your objectives, target market, services, pricing, marketing plan, operational specifics, safety precautions, and financial projections. This strategy will assist you in staying focused, making educated decisions, attracting potential investors or lenders, and laying the groundwork for a sustainable daycare service.

How do I figure out who my target market is for my childcare business?

What financial parts of my childcare business plan should i include.

The financial component of your daycare business plan should include several crucial elements. Begin by breaking down your launch expenditures, which should include facility setup, equipment, licensing fees, and first marketing charges. Estimate your monthly and annual running expenses, which should include employee pay, utilities, supplies, and rent. Forecast your revenue as well by calculating the number of children you’ll enroll, the pricing structure, and the occupancy rate. This financial study gives information about your daycare’s feasibility and profitability.

To learn more on how to start your own daycare checkout my startup documents here.

I’m a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online daycare business resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a childcare business owner, I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.

Everything You Need To Know

Home Daycare Business Plan

Sure, starting a home daycare seems simple enough – it’s just babysitting, right wrong.

Running an in-home daycare is running a business and you need to treat it as such. As a sole proprietorship business, you are liable for the well-being of every single person that sets foot on your property.

As with any new business, you need to have a detailed outline on how it’s going to run. This is known as a business plan. You’ll use it to figure out how you’re going to run your business and more importantly, make money. 

If you haven’t had a chance to check out the  Getting Started Page , go do that now.  You will need to start gathering information about specific licensing requirements for opening a family child care business in your area. Plus, you will want to get started on some of the paperwork for your business license, police records, and first aid. 

GRAB A COFFEE

Because we are going to cover a ton of information, jump to a section, business summary.

Who Are You? | What do you plan on doing? | What is going to make you stand out?

FINANCIAL PLAN

Rates | Start-Up Costs | Record Keeping | Payment Policies | Taxes

OPERATIONS PLAN

Designate Your Home Daycare Area | Develop a Parent Handbook | Schedules | Quality Control Checks | Interviewing Parents

MARKETING PLAN

Your own website | Flyers with tear off tabs | Word of mouth | Social Media | Newspaper Ads | Online Daycare Advertising Sites | Craigslist, Kijiji | Put a sign on your yard 

Let’s get started!

Home daycare business summary.

Start by briefly summarizing the following: who you are, what are you planning to do? What will set you apart from other child care businesses? You will use this summary over and over again during the planning process.

So NO CHEATING! Don’t skip this step.   

Who are you?

Simply state who you are and why you are qualified to open a home daycare. Don’t worry if you think you aren’t qualified. You don’t need a background in early childhood education to run an in home child care business. Chances are you are more qualified than you think, so take a deep breath and just go for it. The following are a few examples:

I am Liz, a stay at home mom of 2.

I am Sally, a preschool teacher taking a break from teaching to stay at home with my kids.

What do you plan on doing?

List the types of services you plan on providing. Think about who your ideal client would be and what services they would need. 

Ask yourself the following questions to identify your ideal client :

What ages of children do you most want to have in your home daycare?

Would you rather have sets of siblings?

Do you only want to take on full time children or do you prefer only part time children?

Take some time to really brainstorm your perfect home daycare situation and then write a summary.

For example:

My ideal clients would be a non-shift worker whose contracted hours are 8-5.  The children would be between ages 1-4.  

My ideal clients are teachers, who do not need care in the summer. The children would be between the ages of 1-4. 

Also think about the services you don’t want to offer. If drop- in care doesn’t work for your family, don’t offer it. You will have moments when you are tempted to change your services for parents, but adjusting services based on individual cases will only hurt your business. Make sure you are very clear on what you want to offer and what you don’t.  

Here are some examples:   

• Provide child care services for children between the ages of 1-5
• Provide Fulltime, part-time, drop in services
• Provide Before and after school child care 
• Provide 24 hour care for shift workers

What is going to make you stand out?

Try to find something that will set your home daycare apart from other comparable businesses in your area. Now don’t go all politician here and make some wild and crazy promises that you won’t be able to keep. It can be as simple as a weekly craft or newsletter. Specializations could include: 

• Do you speak another language?
• Do you have a special talent?  (Music, Art)
• Will you provide transportation?
• Will you cater to shift-workers who work odd hours?
• Will provide tons of outdoor time?
• Will you be an allergy friendly house?
• Will you serve only organic food?

We will go over more market research in the following section, but start asking around in local Facebook groups and social media groups for ideas. What are local parents looking for in home daycares?  You might be surprised by their answers. It can be as simple as wanting a home daycare to be open until 6 pm. Or something different like a home daycare that provides pet sitting. 

Now, put it all together in a brief summary. It doesn’t have to be perfect. At this point you can cut out what you don’t want to include or add anything extra you think will make your business stand out.  

Here are a few examples 

I am Liz, a stay at home mom of 2.  Liz’s home daycare is located in the Willowbrook area and provides care for children 1-6 years old.  We spend our days, exploring local parks and making crafts.   

I plan on opening a home daycare in the Berryhill area, with transportation services to Berryhill elementary and Markhill elementary.

Home Daycare Financial Plan 

In this section, we’re going to work out how much money you need to charge your clients in order to turn a profit. Let’s face it, having positive cash flow is kind of the point and if this venture isn’t going to provide you with the extra cash flow you want, what’s the point? And although there aren’t a ton of start-up costs for opening a home daycare, there are operating costs that can cut into your profits. Here we will create a budget for expenses, and touch on tax planning.    

Sure, we would all love to charge the highest rate possible. Who doesn’t want to make a fortune at their home business? but that’s not always feasible. In order to attract clients, you will have to charge rates that are competitive with other child care services in your area. Remember, that being a child care provider is a lot of work. You will be working long hours, with few breaks So, don’t undercharge yourself, either.

So how do you determine what to charge?

Start by conducting some market research about your competitors. 

You don’t need to break out the excel sheet but you should gather details about your other child care providers in your area. Start by calling different home daycares and child care centers to find out their rates and what they offer. After a few, you will start to see a general average rate for your area. 

Then ask yourself, does any daycare stand out more than the others? If so, what makes them unique? Are they charging a premium?  

Now, go back and revisit your business summary. Did you identify something that will make your home daycare stand out?  Did any of the home daycares you called offer something comparable? What were they charging? You may need to expand your research beyond your local area to find a comparable home daycare.  

Types of rates

Your rates should reflect how you plan on running your home daycare. If you haven’t thought about this yet, it’s a good time to start. Ask yourself if you would prefer to have your number of kids on a monthly basis or have a few full-time and a few part-time kids.  

Monthly Rate

Charging a monthly rate is fairly straightforward. This is a set rate for the whole month regardless of how many days are in the month. This rate should be a set amount and not fluctuate.  

Part-time rate 

You can do a few things with part-time rates. Charging a set rate for a certain number of days per week is one option. Another option is charging for a certain number of days per month.

2 days a week is x amount

3 days a week is x amount

Or 10 days per month is x amount

You’re only allowed to have so many kids in your care, so if you plan on taking on part-time kids make sure that it works in a way for you to be able to fill the other days. 

Sally comes three times a week only on Monday/Wednesday/Friday. You can then offer care to another child on only Tuesday/Thursdays. Although this system is more difficult to make work it is possible.   

Margo comes 10 days out of the month. Her parents let you know a month in advance what those 10 days are. With plenty of notice, you can fill those extra spots.   

Frankly if you want to have a steady income, only take on full-time kids. Or only take on 1-2 part-time kids in addition to 1-2 full-time kids.  

If you plan on having a drop-in service, make this your highest per-day rate. Drop-in’s can be a lot of work.  Often these kids are not used to daycares. 

Don’t expect to be at full capacity right away. Budget for 75% to 85%. 

Figure out your break-even point. Is there a minimum amount that you “need” to make it worthwhile for you to run a home daycare. For some, this will be $2,000 or other it will be $500.  

Say you need to make $2000 per month and through your research, the average price for childcare in your area is $750.  

You would need to take on at least 3 full-time kids to make your $2000. 

Desired income + monthly expenses / Your rate = How many kids you need to take on.   

***Important this calculation does not take in consideration that you still need to pay taxes on this and in Canada, you need to pay into the Canadian Pension Plan twice.  (See more on  Using Your Home for Daycare ) If this is a concern for you, adjust these amounts accordingly.  

Now if you are just running a home daycare to make some extra cash, this might not be such a concern to you, but remember your time is still valuable.     

Remember, if you are able to add more value to your services you should be charging more. Also, keep in mind, you should increase your rates every year to keep up with increases in the cost of living.    

Start-Up Costs

Although there are not a ton of start-up costs to running a home daycare, there are a few that will have to come out of your pocket before you can take on your first client. Here is a list of possible startup costs for opening your home daycare:  

• Business license
• Licencing fees (If required)
• First Aid Courses
• Police Checks
• Additional Home Insurance
• Additional Auto Insurance
• Operational Supplies  (Check out The Ultimate List of Home Daycare Supplies)
• Marketing/Advertising costs

Record Keeping  

Record keeping is so important when running a small business. Don’t fall behind on this.  Set aside time each day to record your attendance and some time at the end of the month to update your expenses and income reports. Get a binder or file folder to hold all your important documents.

You should record your attendance daily.  Keep a record of who attended each day, when they were dropped off and picked up. Depending on the type of services you offer the number of hours you work could vary daily or stay the same. Regardless you will need to know this for tax purposes.  

Record every time someone pays you. Use an Excel sheet, an online accounting program or a notebook.  

Let’s face it no one becomes a millionaire running a home daycare. You want to save as much as possible of what you do make.  And one way of doing that is paying less in taxes. Make sure you save your receipts and record all your expenses. The more you can deduct the less tax you will have to pay at the end of the year.    

Here is a list of typical operational expenses for home daycares:

• Supplies for activities
• Curriculum materials 
• Fees (e.g. licensing)
• Maintenance
• Office supplies
• Professional services (e.g.lawyer or accounting)
• Accounting Software
• Supplies (cleaning, kitchen and teaching)
• Telephone and Internet
• Utilities        

Payment Policies

How are you going to make sure you get paid .

You can require payment either monthly, bimonthly or weekly .  Also include how far in advance you want to receive payment. The first of each month is commonly used. However, you can choose to require payment two weeks in advance of services. You can match your payment schedule with the parents’ salary payment and get paid the same day they do.  

Decide how you are going to handle drop-in payments?  Will you require payment in advance? 

Are you planning on charging late fees?  If so, when do you plan on requiring payment.

For example:  

Payment for late fees are required within 24 hours from the occurrence or subject to termination of care

Payment for late fees will be added to next months payment.  

Inform parents what forms of payment you accept, most common are cash and Email Money Transfer (EMT).

You should state that fees are nonrefundable and services are subject to termination if not paid on time.

Develop a system for yourself to ensure you’re on top of getting paid and nothing gets missed. You don’t want to be working for free.  

For example you can make a policy that part-time parents need to have their required hours submitted by the 1st of every month. You can send a reminder email the week before to ensure you have enough time to fill any empty spaces.

You can you also use an application like Waveapp to create recurring invoices, send payment reminders and generate payment statements.  This program is free. 

What if a parent doesn’t pay?  

You need to decide before opening what your policies will be on non-payment. Unexpected bills and extenuating circumstances do come up for parents. However you have to remember you’re running a business here and you deserve to be paid. Simply put: don’t provide services without for free.   

The last thing you want is a big tax bill at the end of the year. Decide on how you plan on address paying your taxes. The easiest way is to put a little away each month in a savings account. You can always set up an automatic transfer, so you don’t forget.

Get a file folder to keep all your receipts in one place.   

Decide whether you are going to do your own taxes or have an accountant file your taxes for you.  If you go the accountant route, look for an accountant who is knowledgeable about home daycares. 

*Keep in mind the legal structure of most home daycares is that of the sole proprietorship. On the tax front, the business’s income and expenses are included in the tax return of the owner. Since the business is not legally separate from its owner, it is not required to file separate tax returns.

  Home Daycare Operations Plan

Your operation plan defines the nitty gritty details how exactly you are going to run your business.  While there are regulations that home daycare have to follow, you have a lot of freedom in how you run your home daycare. You get to choose your hours, days off, policies and even which children you take in.  

Designate your home daycare area

If you have not by now, figure out all the areas of your house you will be using for your home daycare. You should include a dedicated area play area, sleeping area, eating area and bathroom. Calculate the square footage and keep it handy for your taxes.  

Now start addressing your supplies needs for each area.  

You might already have everything you need but check out  The Ultimate List of Home Daycare Supplies . This post goes into detail on everything you possibly can think of to run a home daycare.

Develop a Parent Handbook – Policies and Procedures

If you want your home daycare to run smoothly from day one, you need to figure out your policies and procedures. While this sounds like a daunting task, it will be incredibly helpful when it comes to communicating your expectations with parents.       

A Parent Handbook is an easy way to share your policies and procedures. It’s an informational guide for parents outlining everything you expect from them. What they should expect from you, payment information, behavior policies and emergency information. A handbook sets you up for success by getting everyone on the same page, but it’s up to the parents to read it.

Hours of Operation

What hours do you want to work? 

What days do you want to be open?

Keep in mind the average person works 9-5 Monday through Friday and must commute to and from work. Yet there still is a market for part-time, overnight or even care on weekends.

It’s tempting to change your hours in order to sign a new client. But over time your work- life balance will suffer and you will end up burning yourself out.

Contracted Hours / Days

  You should insist on each child having contracted hours. Contracted hours are the time/days the parents will be dropping off and picking up their child. For example: If you have a part time child that comes on 3 days a week on Monday, Wednesday and Friday 9am to 5pm, you can schedule other part time children around those days to fill your Tuesday and Thursday time slots. If the clients need to change their contracted three days to a different three days, in your contract, specify that you can refuse such changes due to a conflict and have the right to end the contract.  

Contracted hours allow you to schedule activities. You will know approximately when each child will be coming, and you can plan around drop offs and pickups.

While late drop off and picks happen, you want to make sure that the parents know you are serious about open communication. Be sure to ask them, if they are going to late that they call or text you to let you know. You will soon find out that maintaining a schedule and following a routine is important.

Holidays   

What holidays do you want to observe?

It’s widespread practice for clients to pay regular fee for civic holidays. For example, your monthly rate is $800, so you would not give a discount because you’re closed for a holiday.

You can choose to either charge parents for your vacation days or not. But, you must make this completely clear to clients before they sign your contract.  

Be sure to state that if the parent decides to take a holiday or day off and pull their child out of your care for that day, they still pay your full monthly fee. They will not receive a refund or credit.  This is important because often you put out your own money for food beforehand. You don’t want to be losing money because a parent took a Friday off. Your time is valuable and there is a cost to holding a spot for them.        

Some providers also include a few paid personal days in their contract. This is 2-3 days that they would elect to take of during the year the parents would pay for. For example, you want to take next Friday off for a funeral. You would inform your parents that you will be taking a personal day. This would be one of your paid days off. This saves you the hassle of issuing refunds or credits for having to take a day off.

Pickup and Drop off Policies

Nothing is worse that a parent drop off a child early and you’re still in your bathrobe. Or you need to drop your kid off dance class and a parent hasn’t pick up their kid yet.

Most parents are good about picking up their children on time. Unless an emergency arises, you shouldn’t have a problem. But it’s always a good idea to have something written in your handbook about early/late drop offs. This is primarily so that you are not being taken advantage of. The chances that you are going to have to charge a late fee is slim, but it is a good idea to put a monetary value on being late such a $5 fee for every ½ hour the child is in your care past their contracted hours. Most large daycare centers have similar policies and strictly enforce them.  

Once a child is in your care, you are responsible for who you release that child to. You need to have it written in your handbook and contract, who is allowed/ not allowed to pick up a child. It is best to get this in writing, so in the case of a mix up you can prove you have done your due diligence. Specify that you will be asking for photo ID before releasing a child to anyone you have not met in person. 

Restraining Orders   

In the event of a court ordered restraining one parent from a child, you need to have a legal copy of the restraining order and a written note from the custodial parent. Without these items on file you can’t prevent the non-custodial parent from picking up the child. You don’t want to be in the middle of a messy divorce. 

Provider’s Sick Day Policy 

If you need to close on a given day because of illness, you need to decide if you will provide a refund for the day.  Most home daycares do not charge customers for their own sick days. Or have a number of sick days outlined in their contract.  

Illness Policy

You wouldn’t invite someone over to your house that had been up vomiting all night, so don’t do it with your home daycare. Parents will test you on your illness policy, but you need to stand firm. You may have to remind parents that bringing a sick child into a dayhome spreads the illness to not only the other children in your care, but also yourself, potentially rendering you unable to care for their child.  

Specify the symptoms you consider a child to be too sick to attend. Make a list of symptoms, then specify when a child is safe to return. Generally, a child should be well enough to take part in normal everyday activities.

What are you going to do when sickness develops during the day?

Outline what you expect parents to do. For example, will you call them and expect them to come pick up their child immediately? 

Ask parents to let you know as soon as possible if their child won’t be attending due to illness or for any other reason. This will allow activities to carry on as scheduled and help you know how many children you need to prepare meals for.

Medicine Policy and Procedure

Get parents to provide written consent before you administer any type of medicine. Parents should label all medicine with the child’s name, dose and dosage times before you administer anything. You should specify that you won’t administer any medicine not complying with the policy. 

Example of medicine policy:

Prior to administering any type of medicine to your child(ren), I require written consent by a parent. All medicine must be properly stored in a container labeled with the child’s name, dosage and times to be administered.  Medicine supplied in unmarked, unlabeled containers and/or without written consent will not be administered.   

Medical Emergencies

Minor bumps and scratches are inevitable. You should specify how will you handle minor injuries. Will you administer first aid, then let the parent know at the end of the day what happened? Or will you call the parents right away?

What are you going to do in case of an emergency injury or illness? Specify who is responsible for the cost of any emergency medical treatment/ transportation. 

Emergency Plan and Evacuation Plan

Provide parents with your emergency plan.  Where you are going to be and how to contact you.  What evacuation sites you are going to be at incase of fire, earthquake, flooding etc.

Behavior policy

  Give a brief summary of how you are going to handle children’s behavior. For example, do you plan on using the “time-out” method?  If a behavioral issue continues without resolve, how do you plan on handling such situations? Think about at what point would you want to end a contract over a behavioral issue.  It’s unfair to the other children in your home daycare if you spend your whole time dealing with one child.

Clothing Policy

Clothing can become a big issue if you don’t specify what you expect. Make sure parents know that you want children to be dress in comfy clothing that can get dirty. You don’t want to be responsible for any stained or ruined clothing. Older children should be able to operate their clothing themselves, without your help. Insist on at least one spare change of clothes regardless of the child’s age. You want to keep children happy and comfortable. Younger children should have at least two changes of clothing (including socks).  

Kindly remind parents that if outdoor apparel is not supplied, then everyone has to stay inside.   Often this can happen in winter time because of a lack of snow pants, hats or mitts. You can suggest that parents leave an extra set at your house to prevent this from happening.  

Meals and Snacks

Provide parents with a schedule of meals and snacks. Inform them if they drop off after a scheduled meal time, you expect the child to have eaten. You don’t have time to supply meals on demand.

Are you going to allow a child to bring food from home? Often parents will sneak snacks into a kid’s backpack,  in case their kid gets hungry. But this can cause conflict between kids and issues for you if another child that has allergies.  For special occasions like birthdays, you can decide on a case to case basis if you are going to allow special treats from home.   

What are your procedures for storing breast milk? Put in place a procedure for yourself, so that you never run out of breast milk or formula.  An example of this would be that you require to have at least half a can of formula on hand at all times. Are you going to be responsible for sanitizing the bottles? or do you expect parents to supply sanitized bottles every day. 

Food Allergies

You need to decide if you will allow children with food allergies to attend your home daycare.  

Can you guarantee your home daycare is safe from allergies? 

Are you comfortable administering an EpiPen? 

Decide which food allergies you will allow.  An allergy to mangos is a lot easier to deal with than a peanut allergy.  Also specify any allergies where parents need to supply the food. Such as in the case of a gluten allergy, you can ask the parents to supply bread, dry pasta or crackers.  Specially foods can be expensive, and you don’t want to blow your whole food budget on one child. 

Potty Training Policies

At one point in your home daycare career, you are going to have to assist with potty training. The key word here is “assist” with potty training.  Communicate with parents that it’s not your job to potty train their child. If they have a method that has been working for them, then you’ll try to continue with that method.  However, their child must wear clothing at all times and you’re unable to follow a strict timed potty schedule. (ex. taking a child to the potty every ½ hour). Children need to be able to pull down and up their pants themselves. Suggest “User friendly” clothing, such as shorts and pants with elastic waist.  Kindly mention if you run out of dry clothing, that you will be calling and expecting them to drop off more. 

Termination Policy

Decide on how much notice you need from a parent before they can terminate their contract. Two weeks’ notice is common, but some home daycares require a month notice.

Outline reasons to parents why you would to end a contract.

Here are some suggestions,

• Failure to provide payment for services
• Routinely late picking up their child
• Failure to complete the required forms
• Lack of parental cooperation
• Failure of child to adjust to the home daycare after a reasonable amount of time
• Physical or verbal abuse of any person or property
• Lack of compliance with handbook policies and procedures
• Serious illness of a child

Other policies and procedures you may want to consider including:

Indoor activities  

What activities are you planning to engage in, circle time, reading, singing.  Give parents a brief summary of daily activities you plan on doing.  

Outdoor activities

How much outdoor time are you planning on having?  Include what your weather limits are. How hot or cold do you consider to be unsafe to play outside?

Napping / Quiet time procedures

Give parents a brief outline of how you are going to handle napping/quiet time.  Do you require all kids to nap? If not, what do you expect from children during quiet time.  Remember this is probably the only time you will get a break during the day. 

Are parents responsible for bringing their own Pack and Play or are you providing beds?

Immunizations Policy

Consider if you need all children to be immunized/or not to attend your home daycare. This is a personal preference. 

Transportation  

Many home daycares provide before and after care for school aged children.  This sometimes includes transportation to and from school in their own vehicles.  Also, some home daycares offer field trips to local attractions such as a library, park or zoo. If this is something you want to provide consider the following:

Do you have a vehicle that could adequately fit all the children?

Do parents need to provide car seats?

What schools are you willing to provide transportation to?

Who is going to pay for admission to attractions?

House rules

Providing a set of house rules is a wonderful way to express your expectations of a child’s behavior.  For example: you expect no jumping/climbing on couches.  

Toys from home

Are you going to allow toys from home? Often these items cause fights among the other children.  An exception to this should be a comfort toy/blanket for napping. 

Two-week trial period

You can choose to implement a two-week trial period for both parties. This allows adequate time for a child to adjust to your home daycare.  At the end of the two weeks, either party can terminate the contract for whatever reason they see fit. Trial periods allows you to see how a child fits into your home daycare dynamic. 

While you can run a home daycare without a schedule, you will save yourself a ton of grief if you have at least a guideline of activities.  You can also include this in your parent handbook to give parents an idea of your daily activities.   

Kids thrive on routines and while you don’t have to have a strict routine, a schedule can help children navigate their day and ease the transition from one activity to the next.  For example, they will get to know that after lunch they go for nap.

Start by setting a time for breakfast, lunch, and snack time s.  Then think about naptime and activities. 

Quality control checks (Cleaning)

Kids are sticky, messy and germy but in a good way. Don’t forget, this is not only your place of work, but also your home and the last thing you want is to be sick all the time. If you take a sick day, you most likely are not getting paid so you should be motivated not to take too many. While you don’t have too much control over what kind of germs enter your home, you can control the spread of it.  

Put in place a cleaning routine. Just like any public washroom, keep a cleaning checklist.  There will be things that you have to do everyday. And other things you will only have to do once a week. Make your checklist as detailed or not as you feel like. 

Items to include:

Bathroom,  Floors,  Bedding &  Toys

Interviewing Parents

The interview process can be a bit scary when you first start out.  But remember you’re also interviewing them too.  

Never commit to taking on a child full time until you have met them.      

For any new prospective client, suggest a “meet and greet.” What is a meet and greet?

A meet and greet is an opportunity for prospective parents to come into your home and check out the space.  It gives parents time to ask you any questions and voice any concerns they may have. A meet and greet also gives you a chance to observe a child’s behaviour and ask them any questions you may have. Such as is your child a bitter? Has the child ever been in a home daycare before.  If so, why did you leave the last home daycare.   

Don’t be afraid to say “no” to a parent if you don’t think their child would be a good fit. You’re better off to be honest and up front. One child can completely change the dynamic of your home daycare and cause you and the other children in your care undue stress.  If you are unsure, then suggest a two week trial period before committing to a contract. Revisit the section of your business summary where you outlined who your ideal client would be. Be picky.  

Now, it’s time to get your first client.  

Home Daycare Marketing Plan

When starting a home daycare business, you don’t just sit there waiting for families to knock on your door. You need to get your name out there.   

If you’re just getting started, marketing your services may not be your strongest skill. Thankfully, there are many ways you can easily advertise your home daycare business.

Here are some ideas for home daycare advertising to give potential customers a better sense of your services.

Your own website

This is perhaps the most inexpensive way of reaching out to parents. A website should introduce your daycare by highlighting the basic information like name, size, location, and the age range you accept. Secondly, you should come up with a business name and logo that stands out from other family daycare services. Obviously, the website should sum up the services you offer.  And you can even outline your policies and procedures. Also list some features like meal/snack options, size of your space, outdoor play setup, fencing, and more. Besides that, you should include short endorsements from past customers so that parents can know their children will be under constant supervision.   

Flyers with tear-off tabs

This is the easiest home daycare marketing strategy. You should make colorful flyers (red, yellow or blue) that show the contact number, email, and services offered. Needless to say, they should be child-friendly – include some pictures of smiling happy children or clip art. It’s worth mentioning that you should not list the price on the flyers. This is because you want the parents to choose a family daycare based on the services, not price.  Flyers work best when they are posted in locations most likely to reach your target market. Where do parents frequent that they may see your ad? The best place to distribute them is in community centers, coffee shops, and libraries.

Word of mouth

Tell everyone about your new venture. You can notify your neighbors, family, co-workers, and friends. And if you already have clients, ask them to recommend a friend.

Social media

The strategy you use on your social media marketing should reach families looking for daycare centers. You should make Facebook page for special announcements, reminders and examples of fun activities. Most parents will appreciate a platform where they can see and share photos of their kids activities. But keep in mind not all parents what to have their kids faces on social media.  Make sure you have a photo release form signed before posting any child’s face.

Other social media platforms you can use include Instagram, YouTube, and Pinterest.

Newspaper Ads

You should include information like your approximate location, opening and closing hours, and anything else that makes your business special. For best results, you may want to place your ads on smaller local papers rather than a big display ad. Of course, it pays huge dividends if you place an ad in the childcare section. It’s important that you inquire on the details allowed, but don’t forget to include the brand name and contact information.

Online daycare advertising sites

Online advertising sites make it easy for parents to search for services in a specific area. They give information on who you are and the services you offer.  Most advertising sites charge a fee to post. If you choose to use one of these sites, always emphasize on any information that makes your business stand out from the competition. And include photographs to showcase your home daycare to prospective clients.

Craigslist, Kijiji

This type of site is commonly referred to as the “hunter’s dream” – you’ll find everything you want here. Even better, you can list your childcare websites. There is a separate section for baby-sitters and daycare providers.

Put a sign on your yard

This will help potential clients know who you are and what you have to offer. All the parents living close to you will be aware of your daycare and will probably mention the same to other parents. These signs can be customized to suit your needs. Be sure to include your business name and contact information.

The above advertising methods will give you an opportunity to toot your own horn. As you embark on the journey, highlight everything that makes your business different from the competition. For best results, do some research to understand the services your competitors are offering. Be creative with your marketing strategies, and you’ll have a full house in no time.

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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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Home Daycare Budget

This page may contain affiliate links. Learn More.

You may be feeling overwhelmed about how to do a home daycare budget , but if you break it down into easy steps, it’s not as hard as you think. It’s part of running a home daycare and being successful.

Home daycare comes with a ton of expenses . So keeping them in check in your home daycare budget is the most efficient way to make a profit in this business. If you want a printable business plan to see if you can even make money doing this, or need more advice on how to start a home daycare , check out these links. And most important, 5 things to include in your daycare payment policies.

You’re going to have food, household supplies, arts and craft materials, toys, equipment, licensing requirements, and many more things to pay for with the money you make. 

If you’ve been doing daycare for a while, you may need help in reining in some of your expenses for home daycare so you can turn more profit each year. Keeping track of them regularly will help you see where you are bleeding money and where you could tighten the belt.

Home daycare expense spreadsheet

A bullet journal budget is a great place to track expenses. There are tons of great choices for ones you can use, but this bullet journal budget form is the one I’ve been using and it’s working great for me.

Bullet Journal Budget Sheet

There are easy to use columns to record all of my expenses and income and compare where I’m spending too much from week to week. It’s customizable so you print it once and use it as many months as you’d like. It also organizes those expenses so you can look back at tax time and find the total for each expense category on your Schedule C. For more ideas to prepare for tax time , check out this post.

There are many other expense report templates you can print out to use. You can find some good ones here: Daycare worksheets , and free expense report templates .   

Whether you do your home daycare budget expense tracking on paper or computer, setting up a spreadsheet is the best plan. You can use graph paper or lined notebook paper to set up columns if you like to make your expense spreadsheet with paper and pencil. Or using google docs or excel is a great way to make one on the computer. And daycare accounting software can be a huge help with record keeping!

I have always used excel and love that it adds up all the numbers for you so you don’t have to worry about the time it takes to add up a column or math errors that can happen. I don’t know much about google docs. I’m not really computer savvy and learned how to use excel in high school. I also used it a lot at work before I had a home daycare, so it was a natural fit for my daycare business records.

Printable expense tracker

Click on the pdf highlighted above to use the free printable expense tracker that I use. You are welcome to make it your own. It’s a great place to start when thinking about getting things in order for taxes. But even more important than being ready for tax time is budgeting. You need to think about whether you are spending more on your home daycare business than you are making.

Or are you spending all the profits? It’s really easy to do because everything involved in caring for children is so expensive. I bring in a good amount of money in a year, but just food for the kids is around $7,000 on average. This year, with the virus going around, it will be a lot more because food has been incredibly marked up. Not to mention the expenses for all the extra supplies I need right now. 

Tracking business expenses in childcare

If you track expenses carefully each month, you can see where you are overspending and places you could cut back so you can keep some profits to help your family. I mean, we work for a living, not for just loving right?

My hope is that these tools can help you make a better living in your business by tracking the expenses and making good decisions with what you make.

Can you use paper towel tubes and donated crayons for art time instead of buying premade kits? Can you make playdough out of something inexpensive you have around the house instead of buying name brand? There are lots of ways to cut expenses once you see where must of your loss is going.

Providing care in your home for children is a wonderful job. I love what I do and can’t imagine doing anything else. But I do need to make a living while I do and so do you. Remember, enjoying hugs and singing with kids is totally free too! And those are some of the best activities of all.

Here are more resources for free daycare forms that can help you run your home daycare business too. 

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• National Politics

Juneteenth 2024: Here's what will be open and closed on the holiday

The nation's newest federal holiday - Juneteenth - lands in the middle of the workweek next week. Here's everything you need to know about the holiday, including what day it takes place, what will be closed and why we celebrate.

When is Juneteenth 2024?

Juneteenth always falls on June 19. In 2024, the holiday is on a Wednesday.

Are banks open on Juneteenth?

Like most federal holidays, expect your local banks and credit unions to be closed in observance of Juneteenth. Plan ahead if you think you will need anything from your bank on June 19.

Are government offices open on Juneteenth?

No. All non-essential federal, state and city government offices are closed Wednesday, June 19, for the holiday.

Government closures would include high-traffic spots including the Monroe County Department of Motor Vehicles . and the Monroe County Clerk's Office.

Will you get mail on Juneteenth?

Your regular mail will not be delivered on June 19 because the  United States Postal Service  also recognizes the Juneteenth holiday.

However, you may still receive deliveries:  FedEx  and  UPS  will be open and offering their usual services.

Are schools closed for Juneteenth?

Yes, public schools will be closed for the federal holiday, even with the holiday landing during the last week of school in the Rochester region.

Regarding private schools and universities, check the academic calendar to see if it is closed.

Will stores, restaurants close for Juneteenth?

Even though it is a federally recognized holiday, individual businesses decide whether or not they would like to be open on Juneteenth. You may want to call any local stores or restaurants you're planning on going to and ask if they'll be open.

Why do we celebrate Juneteenth?

Juneteenth is a holiday marking slaves in Texas learning in 1865 that they had been freed by President Abraham Lincoln's  Emancipation Proclamation . The executive order outlawed slavery in Confederate states beginning Jan. 1, 1863, the midpoint of the Civil War. The holiday rose to prominence in 2020 amid the nationwide protests about racial inequality after the deaths of Ahmaud Arbery in Georgia, Breonna Taylor in Kentucky and George Floyd in Minnesota. President Joe Biden made Juneteenth a federal holiday in 2021.

How many federal holidays remain in 2024?

Each year, there are 11 federal holidays. Juneteenth is fifth in the annual lineup.

After Juneteenth, six federal holidays remain in 2024:

• Independence Day  (July 4, 2024)
• Labor Day  (First Monday in September - Sept. 2, 2024)
• Columbus Day  (Second Monday in October - Oct. 14, 2024)
• Veterans Day  (Nov. 11, 2024)
• Thanksgiving Day  (Fourth Thursday of November - Nov. 28, 2024)
• Christmas Day  (Dec. 25, 2024)

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Russia claims more than 100 drones used in attack on Crimea, Krasnodar Krai

More than 100 drones were reportedly used in a mass strike on occupied Crimea, Krasnodar Krai, and Volgograd Oblast, killing at least one person and injuring another six, Russian authorities claimed on June 21.

Earlier, Russian Telegram channels reported that fires had broken out at Krasnodar Krai's Yeysk military airfield and Ilya oil refinery following a drone attack.

Russia's Defense Ministry said that 70 drones had been shot down over occupied Crimea, 43 over Krasnodar Krai, and one over Volgograd Oblast. Another six naval drones were reportedly destroyed in the northwestern area of the Black Sea, the ministry said.

Read also: Ukraine attacks 4 refineries, Shahed drone storage sites in Russia, military says

Krasnodar Krai Governor Veniamin Kondratyev wrote on Telegram that a bus station employee was killed by falling debris, and another four people were injured.

According to preliminary reports by local police, the strike on the Ilya refinery reportedly caused a 50-square-meter fire at the attack site and injured two people.

The reports could not be independently verified, and Ukraine has not commented on the news at the time of this publication.

In recent months, Ukrainian forces have launched a series of drone strikes aimed at damaging Russia's oil industry , which is crucial to sustain Moscow's war efforts, as well as its military hardware.

Attacks on oil depots in Krasnodar Krai in May reportedly disrupted operations at two facilities—the Slavyansk-on-Kuban and Tuapse refineries.

We’ve been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent .

Election latest: Another Tory under investigation over election bets - as Labour to return £100,000 in donations

A former Tory candidate who was dropped for betting on the date of the election has vowed to clear his name, as the Labour Party and more police officers also become embroiled in the escalating scandal.

Tuesday 25 June 2024 20:55, UK

• General Election 2024

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Election betting scandal

• Labour candidate suspended | Party to return donations
• Welsh Conservative under investigation
• Dropped Tory candidate vows to 'clear name'
• More police officers accused of betting on election date
• Jon Craig: This has exposed quite a sleazy side of politics
• Live reporting by Faith Ridler and (earlier)  Tim Baker
• Car crash outside PM's country house
• Four arrested in grounds of Sunak's constituency home
• Reform drops in new poll after Farage's Putin comments
• Starmer says children 'worried' about possible move into No 10

Election essentials

• Manifesto pledges: Alliance | Conservatives | DUP | Greens | Labour | Lib Dems | Plaid | Reform | SNP | Sinn Fein | Workers
• Trackers:  Who's leading polls? | Is PM keeping promises?
• Campaign Heritage: Memorable moments from elections gone by
• Follow Sky's politics podcasts: Electoral Dysfunction | Politics At Jack And Sam's
• Read more:  Who is standing down? | Key seats to watch | What counts as voter ID? | Check if your constituency is changing | Guide to election lingo | How to watch election on Sky News

Our live poll tracker collates the results of opinion surveys carried out by all the main polling organisations - and allows you to see how the political parties are performing in the run-up to the general election.

It shows a drop in support in recent days for Labour and the Tories - with a jump for Reform and the Liberal Democrats.

Read more about the tracker here .

There are seemingly three things on the minds of British people at the moment - the Euros, the election, and Taylor Swift.

But while the Royal Family have been quick to send their backing to England's footballers and catch the pop star's Eras shows at Wembley, they'll be keeping their distance from the politics.

That's despite the fact that, apart from the monarch, the royals are technically allowed to vote in UK general elections.

Sky News explains why they don't.

Rhun ap Iorwerth, the leader of Plaid Cymru, was also asked about a manifesto commitment to make it a criminal offence for elected politicians to knowingly mislead the public.

Former prime minister Boris Johnson was suspended from parliament for misleading the Commons - does Mr Iorwerth think he should go to prison?

He says legislation to "make it clear there are consequences if you are found to be purposefully deceptive" could be "part of the world of building trust in politicians and politics".

It's noted how difficult it would be to prove someone had purposefully deceived parliament.

Building that trust is a key focus for his party, he says.

"We believe this is important because one of the questions that I've been asked a lot during the course of this election campaign and MPs over the past year, is how do we build trust in politicians?"

That brings our coverage of tonight's Politics Hub With Sophy Ridge to an end, but the show returns tomorrow at 7pm. Stick with us for more news and analysis throughout the evening.

Sophy Ridge  asks about a report into Plaid Cymru, published before Rhun ap Iorwerth became leader, which found "a culture of harassment, bullying, and misogyny".

Has he cleaned up the party's act?

"It was a difficult time for us," Mr Iorwerth admits. "We commissioned this report on ourselves. 

"And, you know, there's a suggestion that other political parties may well benefit from doing the same themselves.

"But this was our moment."

Mr Iorwerth adds that Plaid Cymru has been "through a wake-up" and have "ticked off" all 82 recommendations the report made.

Russell George, a Conservative member of the Senedd, has stepped back from the Welsh shadow cabinet as he faces an investigation by the gambling watchdog over alleged bets on the timing of the general election.

Mr George represents Montgomeryshire in the Welsh parliament - the same area that Craig Williams, the Tory candidate who has had party support withdrawn as he faces similar allegations, represented at Westminster.

Welsh Conservative leader Andrew RT Davies said: "Russell George has informed me that he has received a letter from the Gambling Commission regarding bets on the timing of the general election.

"Russell George has stepped back from the Welsh Conservative shadow cabinet while these investigations are ongoing.

"All other members of the Welsh Conservative Group have confirmed that they have not placed any bets.

"I will not issue further comment on this ongoing process, recognising the Gambling Commission's instruction for confidentiality to protect the integrity of the process."

Joining  Sophy Ridge  tonight for the latest in her Leaders Interviews series is Rhun ap Iorwerth of Plaid Cymru.

She begins with her usual first question: Why should people vote for Plaid Cymru?

Mr Iorwerth says the reason to vote for his pro-independence party is "clearer than usual".

He adds: "We really need to make sure that the MPs we have really do speak up for Wales, which are guaranteed in Plaid Cymru. 

"But also we kind of know where this is going to end don't we? In terms of Downing Street. 

"Sir Keir Starmer will be the prime minister two weeks from now. We need to be holding him and his government to account for the people of Wales."

But Sophy points out that much of Plaid Cymru's manifesto is similar to that of Scottish Labour.

Mr Iorwerth disagrees, pointing to his party's desire to scrap the two-child benefit cap and reassess the country's relationship with the EU.

"We want to make sure that there's investment in Wales through the £4bn owed to us from the HS2 rail project in England, which Labour is flatly ignoring," he adds.

By Tom Cheshire , online campaign correspondent

There are two ways to reach voters online: pay for your adverts to end up in front of them - or produce content yourself that gets attention.

Throughout the election, we've been tracking the first of those. Labour have been the big digital spenders, with the Conservatives second, and then everyone else a very distant third.

But throwing money at it doesn't necessarily fix the attention problem. 

And some of those spending the least are getting the most interactions, with the Reform UK party doing by far the best.

Reform is also seeing the most page growth, with 32,000 new followers.

The Conservative Party by comparison has seen much slower growth, just 0.08%. 

That's only 596 more people clicking follow over the course of the election, speaking to a spluttering campaign.

Returning to the gambling scandal, former Tory MP Tim Loughton tells  Sophy Ridge  anyone involved "should have the book thrown at them, frankly just for them being pretty dumb".

"It just looks really, really stupid," he says. 

He explains that suspending anyone is effectively a death sentence for potentially innocent candidates standing in elections, and that Rishi Sunak waiting for an investigation before doing so wasn't a bad idea.

"It was right to look at it properly," he adds - but reiterates that it doesn't look good for anyone involved.

Tory peer Baroness Nicky Morgan is asked by  Sophy Ridge  if the campaigning is all but pointless - with the only Conservative aim to avoid Labour winning a so-called "supermajority". 

"In my book, you never give up until 10pm on polling night," she says, noting occasions where final votes on election night have made the difference.

"I don't think the British public would want a government to have a huge majority," she adds.

"I don't think it's good for democracy, for holding a government to account."

She concedes that after 14 years it "was always going to be a battle" to convince the public for a further five. 

On the recent gambling scandal, she says: "The more you're talking about things like betting, the less you're talking about the issues that people really want to hear about."

Four men have been arrested on suspicion of aggravated trespass in the grounds of the prime minister's home, police have confirmed.

The incident took place at Rishi Sunak's constituency address in Kirby Sigston, North Yorkshire, while he was attending events linked to the Japanese state visit in London.

A statement from the local force said officers were "with the four men within one minute of them entering the grounds".

The arrests are connected to a protest by the Youth Demand campaign group, which has staged a number of actions against both the Conservative government's performance and Labour's proposed policies.

A spokesperson for the group said three of those arrested were taking part in the demonstration, while a fourth was an independent photographer.

A North Yorkshire Police spokesman said: "We have arrested four people in the grounds of the prime minister's constituency home this afternoon.

"Our officers were with the four men within one minute of them entering the grounds.

"They were detained at around 12.40pm before being escorted off the property and arrested on suspicion of aggravated trespass.

"The men aged 52 from London, 43 from Bolton, 21 from Manchester, and 20 from Chichester, remain in police custody for questioning and enquiries are ongoing."

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