logo

How to Start a Daycare Business in 9 Steps

No Logo
Author

Anastasia Belyh

Last Update

Feb 11, 2025

We earn a commission from partner links on Keevee. Commissions do not affect our editor's opinions or evaluations.

Starting a daycare business can be rewarding but challenging. This guide simplifies the process, helping you navigate licensing, setup, and attracting families, so you can build a thriving childcare business.

  • Best Website Builders For Small Business

1. Research Legal and Licensing Requirements

Before starting a daycare business, you must ensure compliance with local regulations. Licensing ensures your business is safe, legal, and trustworthy for parents.

  1. Research state and local regulations: Licensing requirements vary by state and sometimes even by city. Check your state’s childcare licensing agency website for specifics.
  2. Complete necessary training: Many states require pre-licensing training, such as CPR, first aid, and early childhood education courses.
  3. Pass inspections: Your facility will need to meet safety, health, and fire regulations. This could include having childproof locks, fire extinguishers, and designated play areas.
  4. Undergo background checks: Most states mandate background checks for you and your staff. Parents want reassurance their children are in safe hands.

Staying compliant will allow you to operate smoothly and avoid penalties. Licensing also reassures parents that your daycare is a safe and reliable environment.

2. Develop a Comprehensive Business Plan

A well-thought-out business plan is your roadmap to success. It helps you identify goals, financial requirements, and operational strategies.

  1. Define your daycare niche: Will you cater to infants, toddlers, or after-school care? Choose a niche that aligns with your expertise and the needs in your community.
  2. Outline startup costs: Include expenses for licensing, equipment, furniture, staffing, insurance, and marketing. Be realistic with your estimates.
  3. Set a pricing structure: Research competitors’ rates and decide on pricing for full-time, part-time, and drop-in care. Competitive and transparent pricing attracts parents.
  4. Identify funding sources: Will you self-fund or apply for small business loans? A clear financial plan ensures you’re prepared for startup expenses.

Your business plan will help you stay organized and guide your decision-making. It also provides credibility if you seek financial support from investors or banks.

3. Choose a Location

The location of your daycare can make or break your business. It needs to be accessible, safe, and compliant with zoning regulations.

  1. Home-based daycare: If you choose to operate from home, ensure it meets zoning laws and state safety requirements. This is a cost-effective option.
  2. Commercial space: Renting or purchasing a facility allows you to serve more children. Look for spaces near schools or residential neighborhoods.
  3. Prioritize safety and accessibility: Ensure the location has adequate parking, secure entrances, and child-friendly facilities. Parents value convenience and safety.

Your location sets the tone for your daycare’s success. A clean, welcoming, and functional space builds trust with parents and attracts enrollments.

4. Set Up Your Facility

A well-organized and child-friendly environment is essential for a successful daycare. Invest in high-quality equipment and supplies to create a safe and engaging space.

  1. Design activity zones: Separate areas for learning, play, naps, and meals help create a structured and predictable environment.
  2. Invest in safety equipment: Use childproof locks, outlet covers, and gates. Ensure all furniture is sturdy and safe for kids.
  3. Provide age-appropriate materials: Toys, books, and activities should match the developmental stages of the children you’ll care for.
  4. Comply with health regulations: Install handwashing stations, sanitize surfaces daily, and have a dedicated sick area for unwell children.

A well-thought-out facility layout ensures efficiency and promotes a positive experience for children and parents alike.

5. Create a Curriculum

Parents look for daycares that offer more than just babysitting. A strong curriculum focuses on children’s learning and development.

  1. Design age-appropriate activities: Include storytime, music, arts and crafts, and outdoor play to nurture physical, emotional, and social development.
  2. Include milestones: For younger children, focus on motor skills and basic language. Preschool-aged kids can work on numbers, letters, and cooperative play.
  3. Incorporate structured routines: Predictable daily schedules create stability for kids and help parents trust your daycare’s professionalism.

A thoughtful curriculum makes your daycare stand out from competitors. It also adds value by fostering children’s growth and learning.

6. Build a Professional Website

A website is essential for marketing and building trust with potential clients. It showcases your services and makes it easy for parents to contact you.

  1. Highlight your services: Clearly list your programs, rates, hours, and location. Parents want quick access to these details.
  2. Share your story and expertise: Explain your experience, certifications, and why you’re passionate about childcare. This helps build trust.
  3. Include testimonials and photos: Share high-quality images of your facility and activities. Testimonials from happy parents strengthen your credibility.
  4. Make it user-friendly: Add a contact form, online booking option, and clear navigation so parents can easily schedule tours or ask questions.

A professional website is often the first impression parents will have of your daycare. Make sure it’s polished and informative.

7. Hire and Train Staff

Your staff will be the backbone of your daycare. Hiring caring, qualified individuals ensures children receive the attention they need.

  1. Set qualifications: Look for candidates with childcare certifications, CPR training, and prior experience. Passion for working with kids is a must.
  2. Conduct background checks: Safety comes first. Thoroughly screen applicants to ensure they meet legal and ethical standards.
  3. Provide thorough training: New hires should understand your daycare’s policies, routines, and emergency procedures. Ongoing training keeps staff engaged and skilled.

A strong, dependable team builds trust with parents and ensures your daycare runs smoothly.

8. Market Your Daycare

Marketing is key to attracting parents and filling your daycare. Focus on building a strong reputation and reaching your target audience.

  1. Leverage social media: Share updates, parenting tips, and photos of your daycare activities to engage local parents.
  2. Offer open houses: Let parents tour your facility and meet your team. This gives them confidence in your daycare’s quality.
  3. Partner with local businesses: Collaborate with schools, pediatricians, or community centers to expand your reach.

Word-of-mouth is one of the best marketing tools. Provide excellent service to encourage referrals from happy parents.

9. Manage Daycare Finances

Running a successful daycare requires careful financial management. Keep track of your income, expenses, and savings to maintain profitability.

  1. Use daycare software: Tools like Brightwheel or Procare simplify billing, enrollment, and attendance tracking.
  2. Budget for future needs: Save for facility upgrades, additional staff, or emergency expenses.
  3. Stay compliant with taxes: Work with an accountant to handle payroll, business taxes, and deductions properly.

Financial stability ensures your daycare can grow and thrive over time.

10. Ensure Safety and Compliance

Parents entrust you with their children, so safety should always be your top priority.

  1. Maintain cleanliness: Regularly sanitize toys, equipment, and surfaces to prevent the spread of germs.
  2. Train staff in emergency procedures: Ensure everyone knows how to handle fires, medical emergencies, and evacuations.
  3. Follow health protocols: Create clear policies for illnesses, allergies, and medications.

Safety and compliance reassure parents that their children are in good hands and encourage long-term enrollment.

Frequently Asked Questions

No Logo
Author

Anastasia Belyh

Anastasia Belyh is a senior tech writer with over 15 years of experience in marketing, sales, and business software. Having worked in investment banking, management consulting, and founded multiple companies, her in-depth knowledge and hands-on expertise make her software reviews authoritative, trustworthy, and highly practical for business decision-makers.