We live in a time when most two-parent households involve a mom and a dad that work. This means they need someone to watch their children, as do single-parent households.
The daycare industry in the United States is worth more than $50 billion today. If you’re trying to find a quality business that is virtually recession-proof, childcare is where it’s at. It’s highly in-demand, and you can feel good about providing a service to parents who need it.
How much money can you make owning a daycare center? What are the startup costs? We’re happy to explain. Keep reading so that you can get the most out of your new daycare business.
How Much Money Can You Make Owning a Daycare Center?
The business of daycare is lucrative, and there are even some millionaire daycare owners that are earning money hand over fist. Depending on the type of daycare business and its city of location, it’s standard for daycare owners to earn $73,000 or more.
You will have the opportunity to grow your net worth and provide an incredible service to people that need it, while also growing a business that will keep thriving for years to come.
What You Should You Know About Opening a Daycare?
Now that you have an idea about your earning potential when opening a daycare, it’s important that you understand the steps involved with getting your company off the ground. By following the correct steps, you’ll have an easier time avoiding mistakes and thriving once you get the keys to your new business.
Here are some credible steps that you’ll need to follow once you’re trying to open a daycare:
Map Out a Business Plan and Decide on a Model
When learning how to start a daycare, it’s important that you draw up a business plan that can guide you. Failing to have a business plan will get you started off on the right foot, and you won’t be prepared for the potential obstacles that come with the territory.
Most companies today fail due to a lack of planning. This reduces your revenue potential, which limits your cash flow and will cause you to rack up debt
If you’re trying to start your daycare, consider working with a professional that can put together the business plan with you. These points should be included in any daycare business plan that you’re creating:
- An executive summary for the daycare
- A description of your business and its goals
- Assessments of your startup costs and operating costs
- Analysis of the industry that you’re entering
- Competitive assessments of other daycare companies in your local area
- Breakdowns of your marketing and advertising campaigns
- Financial projections of the daycare business
When you formalize your company’s business plan, you’ll be in a better position to navigate and make decisions that pay off for you once you open your doors.
Learn the Requirements to Open a Daycare Center
It’s important that you also learn the requirements that are in place to open a daycare center. Each state has requirements in place by law that you must follow so that you can operate your business.
Since daycare businesses are in charge of the safety, health, and well-being of children, there’s no wiggle room for you to not satisfy these requirements. You’ll be subject to fines, and penalties, and can even have your business shut down when you fail to manage these aspects.
Do your due diligence and research these matters as much as you can so that you have a clear path to success once it’s time to open your business.
Get Your Financing in Order
You need startup capital to open a successful daycare business. Figure out your business model and learn how much money it’ll take to open your doors.
The cost of starting a daycare center in your home that keeps a few kids is far different than opening a large-scale education-oriented daycare that provides for dozens of children. Once you know the dollar amount, you’ll be able to figure out your funding resources.
You might have some money in your bank account, from rental properties, or from existing businesses to get your daycare off the ground. Most owners will have to take out a loan with your bank or credit union. If you decide to take out a loan, you’ll want to look into the interest rates, payments, and fees that come with the territory.
Map out your financial projections so that you can also figure out how long it will take to earn a profit after getting your daycare off the ground.
Carve Out the Best Location
Location is one of the most important cardinal principles for any business that you’re choosing to operate. This is particularly important for a daycare owner since you’re providing a service for parents who have tight schedules, and who regularly need to get their children from Point A to Point B.
You also need to make sure that the building that you get has enough space, that it’s an appreciating real estate asset, and that it has the square footage and resources that you need.
Hire a Quality Staff
Figure out what positions you need to successfully run your business. You’ll need the help of a daycare operator and multiple care professionals that will look after the kids correctly.
Fill out some job descriptions and put people in place that can keep your business running so that you have an influx of kids and even more on the waiting list.
Opening a Daycare 101
So, how much money can you make owning a daycare center? If you consider the points above, you’ll be in a better position to succeed as an owner. Take every opportunity to navigate the landscape, and don’t hesitate to get the help of mentors and other professionals that can assist you.
Begin with these points and rely on us when you need to learn more about running a company.
