How To Write a Daycare Business Plan

The demand for daycare centers keep growing because more and more parents are finding it hard to live a decent and comfortable lifestyle on a one-income household. Another reason for the rise in demand is the increase in divorce rates forcing the now-single parent to look for jobs to make ends meet. If you think you have what it takes to establish a day care center in your location, don’t act on your impulse just yet until you have a business plan in order. Here’s how to write a daycare business plan:

  • Mull over your motives. Profit is good but for profit to come in, you must be 100% sold, committed, and passionate about shaping the minds of kids from 1 through 6 years old. First on your list should be a noble act of service to do your best to run a day care center that puts the welfare, safety, and education of the child front and center. You think you have the emotional investment it takes to run a day care center? If you’re sure, proceed to the next step.
  • Consider where to put up the center. In business, location is everything. This cliché is so true! What good is a daycare center when the kids in your location are all in high school? Then again even when you have kids in your location, are they enough to fill your school? This is why you need to find a location where you know there’s a demand for a day care center. If there are lots of kids where you live, you’ve got this covered! Another thing to check before picking a location is the zoning requirement to allow you to operate a business of this nature. So again: check locations and zoning regulations to be absolutely on the safe side.
  • Where will you get your funding? Capital expenses, overhead, building, staff, cleaners, equipment, and facilities all need funding. In your business plan, you must clearly state how much you’ll need to build, run, maintain, and keep a daycare running on a monthly to year-on-year basis. Clearly note how much will come out of your own savings and how much you need by way of loans or other investors/partners.
  • How many kids do you need to make a profit? Okay, reality check. 35 kids as your “full house” won’t give you a profit but will allow you to break even. 120 kids will turn over a tidy profit but only when you have the space and state-approved facilities and licensed staff to take care of this number. So when writing your business plan, it is crucial to make a realistic calculation of the number of enrolees that you need to earn from this business. A good way to begin is to research about existing regulations in your state pertaining to this matter.
  • How many members of staff will you need to address an X number of children? Ideally, you will need a licensed education teacher for every 20 children. You’ll also need a full-time nurse, a nutritionist to prepare meals, a maintenance person, school secretary, and you of course who will run the day care center operations. Factor this item in your business plan as well.
  • Plot your rise from Day 1 to Day 365. When writing a business plan for a daycare center, it is also important to plot your progress or business goals. Where would you want your business to be in 6 months to a year? Do you envision making a profit after 6 months or open another branch in 1 year?

As you can see, the factors involved when writing down a business plan for this kind of business are staggering. If you don’t want to take a huge leap into it right now, take baby steps. Babysit for now and act on your plans when you’re ready.


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