How to Open a Day Care Center

Last Updated: March 24, 2023 References Approved

Day care centers are in higher demand than ever before, and if you love working with children, opening one can be a smart and enjoyable business choice. Start small by running a neighborhood day care from your home, or select a commercial space for a larger day care business. This article outlines the qualifications you need to start a day care, how to set up a day care center, and ideas for getting clients and making your business profitable.

Method 1

Method 1 of 3:

Preparing to Operate a Day Care Center

1
Understand the pros and cons of operating a day care.^{[1]
X
Research source} If you're considering opening a day care, you probably already know that you love working with kids. Take these other elements of running a day care into account before you make the decision to devote yourself to starting a new business:^{[2]
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- Are you ready to handle the mishaps, behavioral issues and emergencies that arise when working with kids? Consider getting first aid and CPR training and potentially taking classes on childcare before assuming this responsibility.
- The children's parents will have high expectations concerning their kids' activities and education while under your care. It helps to have a degree in education or experience teaching or working at a day care before opening your own.
- A day care is a business, and as a business owner you'll be in charge of employee management, bookkeeping, marketing, and other responsibilities that come with running a small business in addition to providing childcare.
2
Decide what type of day care you want to open. Factoring in your time capacity, financial restraints, and personal preference, choose from two types of day cares:^{[3]
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- A home day care. Day cares operated from homes offer home-like environments for children. They are typically small, and usually open to kids from the neighborhood.^{[4]
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- A day care center, or commercial day care. Day care centers are operated from commercial spaces. They can accommodate more children and bring in more revenue, which allows them to hire more employees.
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3
Understand the licensing requirements for your state. To legally operate a day care, it's necessary to obtain a license, which must be renewed each year.^{[5]
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- Licensing requirements are different for home day cares and day care centers. Research the requirements in your area for the type of day care you wish to operate.^{[6]
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- To obtain a license you will undergo a home or facility safety inspection and prove that your operation is following the laws of your state.^{[7]
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- You must demonstrate that your operation has a certain ration of adult caretakers to children. The requirements vary with the age of the children.
- You may have to complete an orientation or course on managing a day care.
- You are required to file all the necessary paperwork and submit a fee to complete the licensing process.
4
Decide on a location. Before you settle on running a home day care, make sure you have enough space for children you wish to serve. Is the bathroom located close to the intended play area? Is there a fenced-in outdoor yard? A commercial space should also be large enough to accommodate the number of kids who will join your day care. It should have a large play area, an outside space, a convenient bathroom area, and a kitchen for preparing snacks.

Method 2

Method 2 of 3:

Setting Up Your Day Care

1
Create a fun and safe environment for kids. Whether it's in your home or in a commercial space, make sure your day care has the following elements:
- A safe play area. Fill the main playroom with bright decorations. Consider setting up a corner of the room for kids to quietly read or rest, and another area where kids can play games together. Have tables where kids can make craft projects. Buy mats for nap time.^{[8]
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- Toys, books, art supplies and other entertaining and educational items. Make sure the supplies you provide are age appropriate and safe for children to use.
- Healthy snacks, water, and juice. You should also have plates, napkins, and cups, depending on the age of the children. If you won't be providing snacks for the children, ask their parents to pack them.^{[9]
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- A bathroom or changing area designed for kids. Buy age-appropriate bathroom equipment for the children to use. If you're working with babies, have changing tables, diapers, and other necessary supplies.
2
Plan a schedule. Divide the day into welcome time, reading time, play time, snack time nap time, outside time, and so on. Do research on the age group you'll be working with to design an appropriate schedule.^{[10]
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U.S. Small Business Administration
U.S. government agency focused on supporting small businesses
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- Consider adding educational elements. You may want to offer basic reading and math instruction as part of your day care service. You may also want to celebrate holidays, seasons, and special events with the children.
3
Attend to business. In addition to making sure you've fulfilled the licensing requirements of your state, make sure your business is set up properly.
- Hire staff. Decide what positions need to be filled, arrange interviews, and hire people to help you run the day care. Consider hiring people with a background in early childhood education.
- Set hours of operation. Have a plan for when parents should drop off their children and when they should pick them up.
- Settle on the price. How much will you charge for your day care services?^{[11]
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  Research source} Call other day cares in your area to find out what price range makes sense. If you're offering a specialty service, such as teaching children how to read, you may want to charge more.

Method 3

Method 3 of 3:

Opening Your Day Care

1
Let people know that you're open for business.^{[12]
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Research source} Advertise in the newspaper, online or on local notice boards at schools, churches and coffee shops.^{[13]
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Trustworthy Source
U.S. Small Business Administration
U.S. government agency focused on supporting small businesses
Go to source}
2
Meet with parents. Show parents and their children around your facilities, introduce them to the staff, and explain the schedule and curriculum to them. Obtain the necessary paperwork to admit children into your day care.
3
Learn as you go. Once your day care is up and running, keep improving your facilities, policies, and program structure to provide the best possible care to the children you are serving and attract a steady stream of new clients.

Community Q&A

Question

Is daycare a profitable business?

Community Answer

Yes, but it depends on the number of children at the daycare, the hours and what you provide for them, such as beginning classes, lunches, and extra activities for children with special needs.
Question

What qualifications are needed to open a daycare?

Community Answer

Each state is different in what they require. The owner doesn't have to have a degree in early childhood or education. However, the director will. Everyone who works in the center will be required to have the background checks that are need for that state, even cooks and janitors.
Question

How can I find sponsors?

Community Answer

Approach your friends, neighbors, companies that you know. Seek people who have lots of contacts and influence in the community.

Warnings

Always keep an eye on all children.

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Always make sure staffs are fully qualified and trained.

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Perform a C.R.C (Criminal record check) on all the staff and parents.

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