business plan for early learning center

How to Write a Business Plan for Daycare and Preschool

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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.

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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.

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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.

Childcare and Preschool Supply List

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

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Home » Sample Business Plans » Education

How to Write a Learning Center Business Plan [Sample Template]

Are you about starting a learning center company? If YES, here is a detailed sample learning center business plan template & FREE feasibility report. A learning center is a self-contained section of the classroom in which students engage in independent and self-directed learning activities. Learning centers provide students with exciting and interesting experiences to practice, enrich, reteach, and enhance their learning. These types of centers are filled with art materials, books, and other instructional tools.

Why Start a Learning Center?

It is important to state that there are different types of learning centers; learning centers can vary a great deal when it comes to their design and the results they want to achieve. But for the purpose of this business plan, we will concentrate on early childhood learning center.

Lastly, there are no barriers as regards those who can start a learning center in the united states; educationist, philanthropists, parents, community leaders, social entrepreneurs, religious organizations, businesses, teachers, school districts, and towns can start their own learning centers.

Having said that, if you interested in starting your learning center, then here is a comprehensive learning center business plan template that will give you the needed guide.

A Sample Learning Center Business Plan Template

1. industry overview.

The Early Childhood Learning Centers industry comprises establishments that provide basic skill and education courses for children between the ages of two and five.

Basically, establishments in this industry, both public and private, provide basic preparatory education courses for children aged two years to those reaching the compulsory school-entry age. This industry excludes establishments that primarily service adults and provide child-teaching services.

Operators offer different programs, which vary by age. For younger children, typically those between the ages of two and three, programs focus on developing early math, reading and interpersonal skills. Children between three and five years old participate in a variety of activities and subjects to prepare them for grade school.

Recent reports released by IBISWORLD shows that over the five years to 2018, revenue fell early in the period as a result of low per capita disposable income levels and the decline in the labor force participation rate of women. However, the unemployment rate has declined each year since 2013.

Statistics has it that The Early Childhood Learning Centers industry in the United States of America, is worth $11 billion, with an estimated growth rate of 2.1 percent annually between 2013 and 2018. There are about 19,482 registered and licensed (accredited) early childhood learning centers scattered all around the United States of America and they are responsible for employing about 247,365 people.

Aside from Bright Horizons Family Solutions Inc. which has the largest enrollments, no other early childhood learning center can boast of dominating the market; every player can comfortably compete in the industry.

It is important to state that the barriers to entry into the Early Childhood Learning Centers industry are high. As a matter of fact, new entrants find it difficult to establish themselves. So also, the reputation of the early childhood learning center is of utmost importance, as the center that has a good history of getting students into prestigious colleges often have the best reputations hence good enrollments.

Reputation indeed is imperative to parents’ decisions when shopping for early childhood learning centers. This is because the quality of education cannot be assessed until after it is complete.

Even though this might seem like a highly competitive industry, the industry is still pretty much open for people to come in and compete. As a matter of fact, if you conduct your research and feasibility studies very well before starting your own center, you are likely going to struggle less to make headway in the industry.

2. Executive Summary

Little Rock® Community Learning Center, Inc. is an early childhood learning center that will be located in a well – populated residential estate in Little Rock – Arkansas, United States of America. We are a standard early childhood learning center that will offer different programs, which will vary by age.

For younger children, typically those between the ages of two and three, the programs will focus on developing early math, reading and interpersonal skills. Children between three and five years old will participate in a variety of activities and subjects to prepare them for grade school.

Little Rock® Community Learning Center, Inc. is a result driven early childhood learning center that provides broad-based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer professional teaching services in a highly secured and conducive learning environment. We will ensure that we work hard to meet and surpass all our students’ educational goals whenever they enroll in our center.

At Little Rock® Community Learning Center, Inc., our students’ overall best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hire professional teachers in various subjects who are passionate at imparting knowledge to students.

We have plans in the future to also offer learning platforms to people with both learning disability and physical disability (especially the blind, the dumb and the deaf). Our overall business goal is to position our early childhood learning center to become the leading brand in the industry in the whole of Little Rock – Arkansas, and also to be amongst the top 10 learning centers in United States of America within the first 20 years of operation.

Little Rock® Community Learning Center, Inc. is founded by Dr. (Mrs.) Becky Steve – Carson and her immediate family members. She is an educationist par excellence and she has won many awards in the educational sector in the United States.

Dr. (Mrs.) Becky Steve – Carson has both the academic qualifications and experience to run an early childhood learning center that can favorably compete with other leading early childhood learning centers not only in Little Rock – Arkansas, but also throughout the United States America.

3. Our Products and Services

Little Rock® Community Learning Center, Inc. is going to offer varieties of early childhood learning services in the United States of America. Our intention of starting our early childhood learning center is to soundly educate kids in various subjects and of course to make profits from the industry.

Our service offerings are listed below;

Planning and implementing a diverse curriculum for children
Developing activities to introduce math and literacy concepts
Providing child and infant daycare to an extent
Operating Head Start programs

4. Our Mission and Vision Statement

Our vision is to build a highly competitive early childhood learning center that will become the number one choice for both parents and students in the whole of Little Rock – Arkansas.

Our mission is to provide professional and conducive learning environment to students at different levels of learning. Our overall business goal is to position Little Rock® Community Learning Center to become the leading early childhood learning center in the industry in the whole of Little Rock – Arkansas, and also to be amongst the top 10 early childhood learning centers in the United States of America within the first 20 years of operation.

Our Business Structure

It is a known fact that the success of any business is to a large extent is dependent on the business structure of the organization and the people who occupy roles in the organization. Little Rock® Community Learning Center, Inc. will build a solid business structure that can support the growth of our early childhood learning center.

We will ensure that we hire competent hands (teaching and non – teaching staff members) to help us build the early childhood learning center of our dream. The fact that we want to become one of the leading early childhood learning centers in the industry in the whole of the United States of America makes it necessary for our organization to deliberately build a well – structured business from the onset.

We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time. Below is the business structure that we will build Little Rock® Community Learning Center, Inc.;

Head of The Early Childhood Learning Center (School Proprietress)

School Administrator

Early Childhood Learning Specialist

Accountant/Bursar
Client Service Executive/Front Desk Officer

Security Officers

5. Job Roles and Responsibilities

Head of the Early Childhood Learning Center/School Coordinator:

Responsible for providing direction for the center
Responsible for handling high profile clients and deals
Responsible for fixing fees and signing business deals (partnership)
Responsible for signing checks and documents on behalf of the early childhood learning center
Coordinates all arms of the center
Evaluates the success of the center
Reports to the board
Responsible for overseeing the smooth running of HR and administrative tasks for the early childhood learning center
Designs job descriptions with KPI to drive performance management for tutors (teachers)
Regularly hold meetings with key stakeholders (parents and member of the school board) to review the effectiveness of the schools’ Policies, Procedures and Processes
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defines job positions for recruitment and managing interviewing process
Carries out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversees the smooth running of the daily activities of the early childhood learning center.
Effectively teach subjects as assigned by the school administrator
Accesses the progress of students under their care
Ensures that students abide by the rules and regulations of the center
Contributes his/her quota towards growing the early childhood learning center
Receives complaints from parents and channel it to the appropriate quarters
Handles any other duty as assigned by the school administrator.

Marketing Executive

Identifies, prioritizes, and reaches out to new students, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts
Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
Responsible for handling business research, market surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the school

School Bursar (Accountant)

Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides management with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for one or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for Little Rock® Community Learning Center, Inc.
Serves as internal auditor for Little Rock® Community Learning Center, Inc.

Client Service Executive

Welcomes/receive parents and students by greeting them in person or on the telephone; answering or directing inquiries.
Ensures that all contacts with parents and students (e-mail, walk-In center, SMS or phone) provides a personalized customer service experience of the highest level
Through interaction with parents and students on the phone, uses every opportunity to build parent’s interest in the schools’ services
Consistently stays abreast of any new information on the organizations’ promotional campaigns etc. to ensure accurate and helpful information is supplied to parents and students when they make enquiries
Receives parcels / documents for Little Rock® Community Learning Center, Inc.
Distributes mails in the organization
Handles any other duties as assigned by the School Administrator.
Responsible for cleaning the school facility at all times
Ensures that toiletries and supplies don’t run out of stock
Cleanses both the interior and exterior of the school facility
Handles any other duty as assigned by the school administrator
Ensures that the school facility is secured at all time
Controls traffic and organize parking
Gives security tips to staff members from time to time
Patrols around the building on a 24 hours’ basis
Submits security reports weekly
Any other duty as assigned by the school administrator.

6. SWOT Analysis

Little Rock® Community Learning Center, Inc. engaged the services of a core professional in the area of business consulting and structuring with bias in the educational sector to assist us in building a well – structured early childhood learning center that can favorably compete in the United States.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Little Rock® Community Learning Center, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Little Rock® Community Learning Center, Inc.;

As an early childhood learning center, our core strength lies in the power of our team; our workforce. We have a team with excellent qualifications and experience in the educational sector especially when it comes to working with toddlers. We are well positioned in a community with the right demography and we know we will attract loads of students from the first day we open our doors and welcome students for enrollment.

As a new early childhood learning center in Little Rock – Arkansas, it might take some time for our organization to break into the market and gain acceptance via reputation in the already saturated education cum Early Childhood Learning Centers industry; that is perhaps our major weakness.

Opportunities:

Demand for day-care services is positively correlated with the number of children aged nine and younger. Increase in the number of children younger than nine, particularly those younger than five, boost demand and profitability for private centers. The number of children under the age of nine is expected to increase slightly in 2018, representing a potential opportunity for the industry.

The labor force participation rate of women, especially mothers, has a major effect on demand for child-care services. The participation rate is influenced by many factors, including social values, expectations relating to child care, the growth rate of employment, after-tax wages and child-care costs.

When the female workforce participation rate rises, it tends to increase demand for child-care services. The labor force participation rate of women is expected to increase slightly in 2018, posing a threat to the industry.

7. MARKET ANALYSIS

Market Trends

The trend in the early childhood learning center business is that the keys to attracting students is the educational performance of their students. Any early childhood learning center that has good records will always thrive.

The demand for early childhood learning centers is driven by the fact that most public cum government owned schools cannot accommodate every student in a given geographical location. In some cases, students with special needs cannot cope in public schools hence the need for early childhood learning centers.

Early childhood learning centers are overwhelmingly located in urban areas. Over one-half of all early childhood learning center students reside in urban environments, compared with less than one-third of students at traditional public schools.

Growth in the percentage of the overall population living in urban areas increases demand for early childhood learning centers. The US urban population is expected to increase in 2018, representing a potential opportunity for the industry.

The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of education. The areas you would need to spend heavily on is in ensuring that your school is up to standard, your advertisements, and on insurance policy cover.

Lastly, it is trendier to find early childhood learning centers engaging in extra – curricular activities and as a matter of fact, an early childhood learning center that thrives in sports can leverage on that to attract students who are sports inclined.

8. Our Target Market

As a standard early childhood learning center, Little Rock® Community Learning Center, Inc. is going to offer varieties of educational services. Our intention of starting our early childhood learning center is to prepare toddlers to enroll in schools and of course to make profits from the education industry.

Our target market as an early childhood learning center cuts across people (students) of different classes and cultural background whether African, White, Caucasian, Latinos, Indians, and Asians. We are coming into the industry with a business concept that will enable us work with the students at different learning stages in Little Rock – Arkansas.

Our Competitive Advantage

Indeed, the Early Childhood Learning Centers industry is highly competitive and the entry barriers are high. As a matter of fact, the industry is pretty difficult for new entrants to establish themselves. So also, the reputation of the early childhood learning center is of utmost importance, as early childhood learning centers that have a good history of getting students into prestigious schools often have the best reputations.

As a major marketing tool, schools need to show parents a track record of admission to elite schools. Little Rock® Community Learning Center, Inc. might be a new entrant into the education cum Early Childhood Learning Centers industry in the United States of America, but the management staff of the center are considered gurus.

They are highly qualified educationists/teachers at various levels of learning in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

Little Rock® Community Learning Center, Inc. is established with the aim of maximizing profits in the education cum Early Childhood Learning Centers industry and we are going to ensure that we do all it takes to attract students on a regular basis. Little Rock® Community Learning Center, Inc. will generate income by offering the following tutorial services;

Providing child and infant day care to an extent

10. Sales Forecast

We are well positioned to take on the available market in Little Rock – Arkansas and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the early childhood learning center and our student base.

We have been able to examine the early childhood learning centers cum education market in the United States of America, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below is the sales projection for Little Rock® Community Learning Center, Inc., it is based on the location of our tutorial center and of course the wide range of educational cum learning services that we will be offering;

First Fiscal Year (FY1): $250,000
Second Fiscal Year (FY2): $450,000
Third Fiscal Year (FY3): $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. So, there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiff competitions amongst early childhood learning centers in the United States of America, hence we have been able to hire some of the best marketing experts to handle our sales and marketing concerns.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the early childhood learning center.

Our goal is to grow our early childhood learning center to become one of the top 10 early childhood learning centers in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Little Rock – Arkansas but also in other cities in the United States of America.

Little Rock® Community Learning Center, Inc. is set to make use of the following marketing and sales strategies to attract clients;

Introduce our early childhood learning center by sending introductory letters alongside our brochure to schools, parents/household and key stake holders in Little Rock – Arkansas.
Print out fliers and business cards and strategically drop them in schools, libraries and even student organizations.
Creating a website, allows parents to be able to look you up, and also allows you to post general study tips, giving you an added advantage.
Use friends and family to spread word about our early childhood learning center
Introduce Little Rock® Community Learning Center, Inc. to learning specialists, school coaches, school administrators, teachers, guidance counselors especially as they are with students everyday
Post information about Little Rock® Community Learning Center, Inc. on bulletin boards in places like schools, libraries, and local coffee shops.
Placing a small or classified advertisement in the newspaper, or local publication about Little Rock® Community Learning Center, Inc.
Using tutorial referral networks such as agencies that will help match students with Little Rock® Community Learning Center, Inc.
Joining relevant association or body that will enable us network and meet others in same industry.
Advertising online by using an advertising platform such as Google AdWords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
Advertise our early childhood learning center in relevant educational magazines, newspapers, TV and radio station.
Attend relevant educational expos, seminars, and business fairs et al
Engage direct marketing approach
Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We are aware of the potency of a good publicity strategy hence we have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

Below are the platforms we intend to leverage on to promote and advertise Little Rock® Community Learning Center, Inc.;

Place adverts on both print (community based newspapers and educational magazines) and electronic media platforms
Sponsor relevant community based events/programs
Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
Install our billboards in strategic locations all around Little Rock – Arkansas.
Engage in roadshow from time to time in targeted neighborhoods in and around Little Rock – Arkansas
Distribute our fliers and handbills in target areas in and around Little Rock – Arkansas
Passing general information via our school’s social media handles like twitter, Facebook, Google hangouts etc.
Ensure that all our teaching and non – teaching staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.

12. Our Pricing Strategy

Early childhood learning centers in the United States of America and of course in all the parts of the world charge students per term/per session and students have the options of either paying their tuitions before resumption or during the school session. Early childhood learning centers charge students based on loads of factors including location, service offerings and extra – curricular activities.

At Little Rock® Community Learning Center, Inc. we will keep our fees below the average market rate by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals.

Payment Options

The payment policy adopted by Little Rock® Community Learning Center, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Little Rock® Community Learning Center, Inc. will make available to her clients;

Payment via bank transfer
Payment with cash
Payment via online bank transfer
Payment via mobile money
Payment via Point of Sales Machines (POS Machines)
Payment via check
Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for tuition fees without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for services rendered.

13. Startup Expenditure (Budget)

In setting up an early childhood learning center business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by acquiring a large facility, then you would need a higher amount of capital as you would need to ensure that your employees are taken care of, and that your early childhood learning center’s environment is conducive enough for the students to learn.

The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a early childhood learning center business; it might differ in other countries due to the value of their money.

However, this is what it would cost us to start Little Rock® Community Learning Center, Inc. in the United of America;

Business incorporating fees in the United States of America will cost – $750.
The budget for Liability insurance, permits and license will cost – $3,500
Acquiring a large facility that will accommodate the number of block of classes, playing field, staff offices and parking lots et al (Re – Construction of the facility inclusive) will cost – $350,000.
Equipping the classes and office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $50,000
Launching an official website will cost – $500
The budget for the payment of salaries for the first three months of operations: $120,000
Additional Expenditure such as Running cost, Business cards, Signage, Adverts and Promotions will cost – $45,000

Going by the market survey and feasibility studies conducted, we came to the conclusion that we will need an average of six hundred and fifty thousand dollar ($650,000) to start a small but standard early childhood learning center in the United States of America.

Generating Funds/Startup Capital for Little Rock® Community Learning Center, Inc.

Little Rock® Community Learning Center, Inc. is a family business that will be owned and managed by Dr. (Mrs.) Beck Steve – Carson and her immediate family members. They are the major financiers of the early childhood learning center which is why they decided to restrict the sourcing of the startup capital for the early childhood learning center to just three major sources.

Generate part of the startup capital from personal savings and sale of his stocks
Generate part of the startup capital from government, friends and other extended family members
Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of securing $100,000 education grant from the Government an also obtaining a loan facility of $300,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is a known fact that the future of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and of course the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Little Rock® Community Learning Center, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers (students and parents alike) over is to ensure that we offer nothing less than the best, to offer quality education to all our students so much so that they can favorably compete with students all over the United States.

Little Rock® Community Learning Center, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check: Completed
Business Incorporation: Completed
Opening of Corporate Bank Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Securing a standard facility large enough to accommodate our design: Completed
Conducting Feasibility Studies: Completed
Generating part of the startup capital from the founders: Completed
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents: In Progress
Design of The Schools’ Logo: Completed
Printing of Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
Creating Official Website for the school : In Progress
Creating Awareness for the early childhood learning center in Little Rock – Arkansas: In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with vendors and key players in the education industry : In Progress

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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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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How to Start a Daycare Business

Emma Castleberry

13 min. read

Updated April 10, 2024

Free Download: Sample Daycare Business Plan Templates

Do you love caring for children? Does spending your day finger painting, reading Dr. Seuss, and playing ring-around-the-rosie sound like something you’d enjoy doing? Then opening a daycare might be just the thing for you, and this guide can show you how.

To get a sense of how to start a daycare business, we talked with Lindsey Roemen, owner of Lindsey’s Family Daycare in Larchwood, Iowa, and Shalonda Owens, owner of Fruitful Trees Learning Center in Columbus, Ohio, about their experiences as daycare owners.

Lindsey says working from home and being able to stay home with your children are great perks to daycare ownership, but it also takes a special person. “You can’t go into daycare just to stay home with your kids,” she says. “You have to be a kind, patient person.”

The outlook for daycare businesses

The COVID-19 pandemic temporarily upended the daycare industry. But it has since shown signs of recovery and growth. The U.S. child care market is expected to grow at an annual rate of nearly 6% through 2030, driven by increased demand as more parents return to work.

This means now is an excellent time for opening a daycare. An in-home daycare offers the obvious perks of working from home and spending time with your children, but even if you don’t have any little ones of your own, an in-home daycare can be a fun business for anyone who loves kids. Working parents will always need someone to look after their children, meaning a daycare business will never become obsolete.

Should you franchise?

You can skip a lot of steps of starting a daycare by purchasing a daycare franchise. But for most people, this option is cost prohibitive: The cheapest franchises start at $59,000 and can cost up to $3 million.

This guide will focus primarily on how to start a daycare center in your own home, which has many benefits: fewer expenses, more flexible hours, and convenience. Read on to learn the ins and outs of how to open a daycare.

Step 1: Learn about licensing

The first step to starting a daycare is to contact your state Daycare Licensing Agency. “You have to call your state and see what is required of you,” says Lindsey Roemen. “Every state is different and has different guidelines. You have to weigh pros and cons and see if you can make it work in your home.”

Not all states require licenses, but you almost always need to complete a registration, depending on how many children you will be caring for.

So one of your first tasks will be determining what kind of licensing your state requires, and how many children you plan to care for at once. Many states only require licensing if you’re caring for five or more children, so perhaps you’ll choose to avoid the licensing process and keep your enrollment low.

“There are a lot of people who quit daycare or dropped their numbers down because they didn’t want to be registered,” Lindsey says. When you have a better idea of what your state requires, it will help you identify your own business plan.

Another consideration is your Home Owner’s Association, if you belong to one. The enrollment numbers at Shalonda Owens’ daycare, Fruitful Trees Learning Center, were limited by her HOA. “Where I live, my HOA will not allow me to have over six kids at one time,” she says.

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Here are some examples of possible licensing requirements:

Physical space: a minimum square footage per child, both indoor and outdoor, depending on age.
Health requirements: annual medical examinations for staff and/or children; immunization records.
Fire regulations: a posted evacuation plan in each room and regular, documented fire drills.
Education or training requirements: certifications in Early Childhood Education, on-going professional development for staff. Lindsey was required to have an Early Childhood Education degree or several years of experience in childcare (she qualified with the latter).

Once you have read the licensing requirements carefully, you might want to make an appointment with licensing specialists to ask questions and review the procedure for obtaining your license (if you need one). It might be helpful for them to visit your home, as well.

Step 2: Identify existing services

Now that you have reviewed the licensing regulations in your state and determined if starting a daycare is a feasible option for you, it’s time to look at other daycares in your area. This will be your competition and colleagues.

Compile a list of daycares in your area with the following information:

Enrollment numbers (how many children do they care for?)
Ages of enrollment
Tuition cost

This information will make it easier for you to decide these things when opening your home daycare.

Ask yourself: Where is the gap between community need and existing services? What needs aren’t being met? If there is a saturation in your area of facilities offering full-time care for two-to-five-year-olds during traditional, weekday hours, then maybe your home daycare could offer very early morning, overnight, weekend, or evening care, or specifically care for infants up to two years old. By identifying the existing daycares in your area, you can determine what your community needs and what will make your business successful.

In addition to knowing the competition, there are other benefits to knowing the other daycare providers in your area. In Larchwood, Iowa, there are six home daycare providers including Lindsey’s, as well as a daycare center. When Lindsey had surgery, all the home providers pitched in to cover for her and take her children while she recovered. “We back up for each other,” Lindsey says. “We get together once every other week and talk about what we’re doing.”

To obtain information about other centers in your area, you can contact your county licensing office, spend some time searching online, or even just browse through the Yellow Pages.

Step 3: Create a business plan

You have a business idea, and now it’s time to turn that idea into a plan. This requires some specific decision-making and research to nail down the details of your daycare. To help guide your plan, check our daycare business plan example and free template .

1. Work out the logistics

Here are some logistical questions to get you started:

How many children will you care for? Many states have strict rules about the maximum number of children of certain ages allowed in a home daycare. “Start out small,” Lindsey says. “I think it’s important to get yourself used to it. If you start out smaller, you’ll be more successful.”

What is the minimum and maximum age for enrollment at your daycare? At Lindsey’s Family Daycare, the youngest child is eight weeks and the oldest is nine years. “It just seems like parents typically around 10 years old start giving them more responsibility and letting them stay home,” Lindsey says.

What time will you open your doors and what time do children need to be picked up? There are a lot of options around timing, and it’s a good idea to check out your competition before making this decision. Some non-traditional options include after-school care (this also opens up the ages of children you can accommodate to include school-age kids), drop-in or demand care, or part-time care.

Will you provide food or do children need to bring snacks and lunches? If you will provide food, check out the Child and Adult Care Food Program (CACFP), a food cost reimbursement program available to home daycares.

Will you be hiring more staff? What about an accountant or bookkeeper? Shalonda encourages outsourcing for daycare owners when possible. “You need strong administrative skills,” she says. “I’m the type that I hire my weakness. I have a friend that helps me with newsletters and things like that.”

A lot of these answers will be provided for you by your regulations, but some of them will be entirely up to your personal preference and the limitations of your space.

2. Come up with your name and philosophy

The name of your daycare will become your brand. You may want to include your personal name, as Lindsey did with “Lindsey’s Family Daycare,” or you may want to choose something completely different, like Shalonda Owens’ “Fruitful Trees Learning Center.”

Choosing an educational philosophy might help you create a name for your daycare. There are plenty of philosophies to choose from—Montessori, Waldorf, and Reggio Emilia, to name a few. If you don’t already have experience with these, research online to find out what resonates with you. Lindsey uses a play-based philosophy at Lindsey’s Family Daycare. “I’m structured as far as when we have breakfast, lunch, snack,” she says. “But I’m a strong believer in the free childcare and letting them be themselves through free play.”

Once you have identified a philosophy and name, organize a program: times for meals, outdoor play, and naps, as well as prepared activities and lessons based on your curriculum.

See also: The Complete Guide to Registering Your Business Name

3. Establish a health and safety plan

You will need to have plans for emergency evacuation, sickness prevention, and accident procedures. Many licensing departments require you to do fire and/or tornado drills regularly.

4. Draw up a contract

Create a contract for parents to review and sign when they enroll their child.

This will have information for them about payment, any additional fees for supplies or late pickup, and a sickness and inclement weather policy.

It will also request information from them, such as a child’s allergies or medical conditions, emergency contact numbers, immunization records, and a list of people who can pick them up.

This 211 Childcare website provides guidance on forming a contract and also offers a sample PDF.

5. Create a budget

A major part of any business plan is an organized, well-considered budget . “You have to be able to budget yourself,” Lindsey says. “It can get away from you. You have to be willing to treat it like a job.”

Startup costs

When starting a daycare, it is important to begin with enough money to cover your startup costs and the operational costs for at least the first 90 days. Remember, it is unlikely your daycare will start off with full enrollment, so don’t rely on enrollment fees for children unless they are already registered.

“You need to have a startup budget, but you can start up with the bare minimum,” Lindsey says.

Here are some examples of startup costs when opening a daycare:

Personnel (including your salary)
Equipment (educational, kitchen, outdoor, office)
Supplies (educational, housekeeping, office)
Advertising (print, online, ad space)
Licensing fees

6. Set your tuition

Another consideration in your budget is how much you will charge your clients.

One way to get an idea of how much you will charge is by referring to the information you collected on daycares in your area. Your rates will depend largely on your location; in Iowa, Lindsey Roemen charges a flat rate of $25 per child, per day, with a discounted rate of $17 per day for siblings. She and her fellow in-home daycare providers in the area try to keep their rates the same.

Shalonda Owens has a more complicated system for fees at her in-home daycare in Ohio. Her weekly rates are $160 for infants (six weeks to 12 months), $150 for “early toddlers” (13 months to 23 months), $145 for two-year-olds, and $135 for preschoolers (three to five years old). Before and after school care is $7/hour.

Another factor to consider is how and when you will accept payment. You’ll also need to establish a deadline for payment and penalties for late payments. Lindsey’s clients write her a check every Thursday at pickup, and Owen’s clients pay every Monday at drop off. In addition to tuition, many daycares charge a one-time enrollment fee to cover the extra time and paperwork you will need for each new child.

Include anticipated tuition in your projected income for your budget, but don’t rely heavily on it. “You have to be wise in your spending,” says Shalonda. “There are times where your enrollment may decrease and you have to be able to manage things for a long period a time.”

7. Determine where you’ll get your funding

Luckily, for an in-home daycare, it is likely that your startup costs will be low. But should you find yourself needing some startup cash, here are your options:

Private: Ideally, your startup costs can be covered by your own funds or that of a friend or family member. This reduces the time you will spend looking for additional funding and there are no finance charges.

Commercial: Commercial banks offer short-term and long-term business loans at prevailing interest rates.

Government agencies: Contact your Small Business Administration office for information on federal loan programs or your state’s economic development office for information on state loans and grant programs.

Tax credits: There are several home business tax write-offs that can offset your expenses when you are running a daycare from your home. This includes 100 percent deductible expenses like food, toys, and equipment, as well as partially deductible expenses like home insurance and utilities.

Step 4: Get set up

Now that you have a plan, it’s time to set the wheels in motion.

Choose your location

Picking the location for your daycare may be necessary if you don’t plan to run it out of your home. For more information on picking your business location, check out our article, How to Choose Your Business Location.

Purchase equipment

Purchase any equipment needed for your daycare. In addition to toys, you may need sheets, mats, blankets, child-sized utensils, plates and cups, high chairs, step stools and booster seats.

Purchase insurance

Insurance is vitally important when starting a daycare. You need property insurance to cover your business equipment and liability coverage in case you are sued. For help finding an agent and purchasing insurance, contact your State Insurance Department.

Step 5: Market your daycare

For both Lindsey Roemen and Shalonda Owens, marketing was never a part of the process of opening a daycare. Word of mouth filled up their enrollment numbers and waitlist so quickly that they never had to market. The same might be true for you, but if not, marketing is an important step for ensuring your home daycare thrives.

Here are some questions that can help you identify your client base and how to reach them:

Who are your potential clients?
Where are they?
What are they currently doing for childcare?
What can you offer them that is an improvement on their current arrangement?
How do you compare with your competitors?

You gathered a lot of this information earlier when first formatting your business plan; now, you can use it to help you target your marketing. Put up fliers in your community, create social media pages (Twitter, Facebook, LinkedIn) and be sure to include testimonials from previous clients whose children you have cared for. Recommendations inspire trust in potential clients.

Once your daycare is operational, continue to seek out accreditations like the National Association for the Education of Young Children (NAEYC) or National Association for Family Childcare and other professional development opportunities to improve your knowledge base and your reputation as a child care provider.

Be sure to continue collecting feedback from your clients. Use the positive reactions in your marketing and handle any criticisms swiftly and professionally. With the proper foundation for your home daycare, you are sure to have more positive feedback than negative.

Child Care Law Center: This nonprofit provides very accessible information about the rights and responsibilities of childcare providers.
National Association for Family Child Care: A national resource for in-home childcare providers and also a source for accreditation.
Association for Early Learning Leaders: An excellent source for professional development, accreditation, and the host of an annual, national conference for early childhood educators.
Child Care Aware: This website is a great place to start when you decide to open a daycare. It helps with both the business and philosophical elements of childcare.

Emma is a freelance writer and media specialist with a passion for crafting in-depth, human interest articles. She likes spending all of her money on travel, eating cheeseburgers and ice cream, and dancing with abandon.

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How to Create a Daycare Business Plan

Posted by Carmen Choi
February 13, 2017
in Posted in Leadership & administration / Management Tips

Childcare owners get into the daycare business through many pathways. Whether you are a business-savvy educator in the child care industry, a new parent looking to fill a need in your community, or a seasoned entrepreneur looking to expand your horizons – the first step to launching your daycare business is to create a comprehensive business plan.

Let’s get real for a moment here – writing a child care business plan, will take quite a bit of time, a lot of thinking, and even more energy to follow through. But, get this step right and you will set the tone and direction to create a successful daycare business (ad)venture!

When developing your daycare business plan, it is ideal to think in the timeframe of 3-5 years. This level of long-term thinking will serve as a map on your way to your goal of establishing a solid daycare business plan to start a daycare.

Without further ado, let’s help you get started.

Here’s an overview of 9 elements that you’ll need to build a good daycare business plan. A child care business plan should include the following:

Executive Summary

Company Overview

Service Description

Market Analysis

Marketing Plan

Operations Plan

Financial analysis , supporting documents .

Executive summary for your child care business plan

This is your introduction and “elevator pitch.” Keep it short, sweet and to the point.

The executive summary section of your daycare business plan should function to get potential investors and partners excited about what your daycare center has to offer in the following key sections.

This is an opportunity for you to include:

A brief but “wow!” business description
Your mission statement

Your executive summary is a place to express what’s unique about your daycare business plan – is it the location, approach, learning philosophy, child care services, team, diversity, or something brand new? Don’t be afraid to make this your own!

This section covers the structure of your daycare business plan and business concept.

Are you planning on being a thought leader in the daycare industry within a specific niche of childcare? A special Waldorf school? A school that prioritized multiculturalism? A center that is Montessori first with Reggio influences to prioritize independent learners? Home daycares? Or do you want to build an empire with an eye on franchising your daycare business model?

Some key elements to include in a brief overview are:

Your daycare business structure
History of the business
Core services offered
Target age group and capacity
Success milestones (accreditation, state-focused quality rating)
Mid-term business goals & requirements

Service Description

This section dives into the nitty-gritty of what daycare services you will provide to your community and how your business will go about doing so.

Things to think about for your business description are:

Full-time or part-time care
After school care for school aged children
Child Care Center capacity
Age group information
Operation hours
Extra-curricular programs (yoga, music instruction, languages, gardening)
Food program
Room layout & design
Furnishing & equipment needs
Facility management & development
Do you have a big vision for your daycare facility that needs to be broken down into different phases?
If yes, what do these phases look like?
Will consultants be hired to support each phase of growth? Is this even necessary?
Will there be a board involved in the decision making process (NFPs)

This is where your vision meets reality! Think of this piece as your ingredients list to build a good daycare business plan. Write everything down and ask people in your inner-circle for feedback.

Market analysis is a business way of saying, “Get to know your surroundings.”

Here’s a list of questions to get you on the right track:

Who is your target audience? (School age kids? Working parents? )
What are the geographic boundaries of the client base that your business will serve?
What is the population of young children & families in your area? (Are there many new young families moving in?)
What is in high demand for child care services?
What is the supply for childcare?
How many daycare businesses are there in the area?
Where are other daycare providers located?
How long are waitlists?
What kind of programming / services are offered by other child care centers?
What are childcare vacancies like in the daycare industry?
How much does childcare cost in the area?
What’s the dominant age group in the area?
What are the unique licensing & regulation requirements for child care centers in your area?

Answering as many of these questions as you can will give you a clear picture of what you’re getting yourself into and how to stand out from competition.

Okay, let’s get practical for a minute – how can you answer these questions? Drive around. Join parent communities online. Facebook groups are great resources to understand what parents and potential customers around you are talking about, stressing about, enjoying, and prioritizing in their childcare search.

In short, really get to know your community of potential customers for your business. I cannot stress the importance of this step for a good business plan. Nothing beats listening to real people from your target market with real problems when building a business case. This seems simple, but it does take a lot of work and persistence to get results.

To distill this process into 5 broad business categories for your daycare business plan:

Understand your target customers
Identify the need of your target customers
Research your competitors
Define your differentiators
Position yourself to grow your business

A note on licensing requirements and regulation : Before you take any steps towards setting up your child care business or daycare franchise, take the time to understand the center licensing guidelines and regulations that will apply to you from your local government. Make sure that you will be able to obtain the necessary licensing for your facility.

Marketing Plan

My favourite part. Now that you have an idea of your daycare business identity, you have to have a marketing plan to promote it and make a splash!

What differentiates you from existing daycare businesses or other child care centers in the area?
How can you really showcase what’s special compared to competition?
What are your initial marketing goals? Perhaps building out a waitlist before launching?
How will you connect with families you want to work with with your marketing strategy?

Building out a marketing plan for your daycare can be as simple or as elaborate as you like. Get creative with your marketing strategy and really show your personality. Here’s an in-depth post we did about marketing your child care center .

Now an idea is just a thought without a team to get it done. Your operations plan is the backbone of your business. In this section, key things to include are:

Who is on your management team?
Who are your core staff members?
What does the organizational chart for your business look like?
Training opportunities & needs for staff?
If your daycare center is a NFP, who are the board members?
If your daycare center is a for profit center, will you have a parent committee that drives operations at your center?

Think of this section as building out your A-team. Why have you chosen certain people for their roles? What do your management team members bring to the table that’s unique?

This also brings transparency to how your team is structured and career development opportunities. Remember to keep growth in the back of your mind for each section of your daycare business plan.

Now that you’ve done most of the heavy lifting, you can use all the information that you have previously gathered to come up with a financial plan for the first few years of your business operations.

Remember, starting any business is difficult and it usually takes 3-5 years to break even and start becoming profitable.

Here are the key questions to answer in this section:

What is your start up budget?
How will you secure funding?
What is your annual operating budget (income & expenses)
Income statement
Balance sheet
Revenue model
Your current revenue & expense statement

Need a template to get started on your financial plan? Check out How To Manage Your Child Care Center Budget to download the template.

Milestones

This last section is one I like to call, the “keeping us honest” section. This is where you and your team will list down milestones that you plan on accomplishing on your daycare business plan journey. Don’t leave this section blank as it’ll be your measuring stick as you launch your daycare business plan.

Some example milestones are:

Reaching 80% of capacity
Getting NAEYC accredited
Achieving the most stars in your state QRIS
Collecting 5 star reviews from parents for your Google page
Reaching 100 followers on your Facebook community

Get together with your team and pick the measures that make the most sense for your childcare business.

Here’s a list of documentation that might come in handy when pulling all of this together.

Revenue & expenses sheet
Financial projections
Income statement, balance sheets and funding
Resumes of everyone on your team
Contracts with external consultants
Letters of endorsement
Legal documents (daycare license, property documents, articles of incorporation)
Daycare business plan template
Any other relevant information

Child Care & COVID-19

While COVID-19 has thrown a wrench in many people’s business plans, that does not mean that you should give up on your dreams of becoming a daycare business owner. With all the change and uncertainty of the current climate comes the space for opportunity!

Centers now have to operate under different health and safety requirements, most notably reduced ratios.

Here’s a roundup of resources that we’ve compiled as a team to support your business plans during the pandemic and beyond.

[Survey] What Parents Value In Childcare During COVID-19
[Guide] Cold, Flu, COVID-19: A Director’s Survival Guide (with printables)
[Article] What To Do If Someone Tests Positive For COVID-19
[Webinar] HiMama Features To Build Trust During COVID-19

To quote Dwight Eisenhower, “Planning is everything, the plan is nothing.” The process of defining your vision will make a difference when facing obstacles on your journey to creating a successful business.

Things won’t go perfectly according to your daycare business plan, but because you’ve mapped out your way, you will find a way to work over, under, or around those obstacles to get there.

Good luck!

Did you know that HiMama makes it simple to get organized, stay in touch with parents, and keep on top of your operations? Contact us today to find out how we can make your daycare business plan into a reality.Do you have any pointers to add to this? We’d love to hear them. Let us know in the comments below. Don’t forget to follow us on social media @HiMamaSocial.

Carmen Choi

Carmen is the Marketing Coordinator and Preschool Podcast Manager on the HiMama team. She's been working with childcare business owners and consultants for 3 years. She is passionate making connections that empower the ECE Community through knowledge-sharing to support better outcomes for children, their families, and society!

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OMG this is so helpful!!!!!!! Thank you!!!!

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Preschool Business Plan Template

Written by Dave Lavinsky

Preschool Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their preschool companies. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a preschool business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Preschool Business Plan?

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

Why You Need a Business Plan for a Preschool

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

Sources of Funding for Preschool Businesses

With regard to funding, the main sources of funding for a preschool business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your 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 ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for preschool companies.

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How to write a business plan for a preschool business.

If you want to start a preschool business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your preschool business plan.

Executive Summary

Your executive summary provides an introduction to your 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 kind of preschool business you are running and the status. For example, are you a startup, do you have a preschool business that you would like to grow, or are you operating a chain of preschool businesses?

Next, provide an overview of each of the subsequent sections of your plan.

Give a brief overview of the preschool industry.
Discuss the type of preschool business you are operating.
Detail your direct competitors. Give an overview of your target customers.
Provide a snapshot of your marketing strategy. Identify the key members of your team.
Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of preschool business you are operating.

For example, you might specialize in one of the following types of preschool businesses:

Parent co-op preschool : Preschools that offer lower-cost enrollment in exchange for the volunteer work of a parent on a regular (typically weekly) basis. This type of preschool employs a teacher and an aide, but also includes parents, which reduces the payroll costs considerably.
Academic/play-based preschool: Preschools that stress learning via a number of experiences in academic introductions. Play-based learning is also introduced in math and pre-reading games and other forms of learning-while-you-play interactions.
Religious preschool: Preschools that adhere to the religious practices and beliefs of the parents in teaching, while including academic and play-based experiences for preschoolers.
Learning system preschool: Systems of specific teaching theories, such as Waldorf and Montessori, are offered at this type of preschool. These preschools are based on proven structures for learning.
Development-interaction preschool: Preschools that offer a holistic approach to preschool, focusing on the emotional, intellectual, social and physical growth of each preschool child.

In addition to explaining the type of preschool business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

When and why did you start the business?
What milestones have you achieved to date? Milestones could include the number of programs offered, the number of preschool graduates, reaching X number of preschool locations, etc.
Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the preschool industry. While this may seem unnecessary, it serves multiple purposes.

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

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason 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 preschool business plan:

How big is the preschool industry (in dollars)?
Is the market declining or increasing?
Who are the key competitors in the market?
Who are the key suppliers in the market?
What trends are affecting the 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 target market for your preschool business? You can extrapolate such a 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 of your preschool business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: parents, grandparents, children, and churches, and schools.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of preschool business you operate. Clearly, parents would respond to different marketing promotions than churches, for example.

Try to break out your target customers 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 potential customers you seek to serve.

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

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Competitive Analysis

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

Direct competitors are other preschool businesses.

Indirect competitors are other options that customers have to choose for their preschoolers that aren’t directly competing with your service. This includes private tutors, public schools, nannies and babysitters. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ 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 families do they serve?
What type of preschool business are they?
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 customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

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

Will you provide options for translation services?
Will you offer family-discounts that your competition doesn’t?
Will you provide better playgrounds and amenities?
Will you offer better pricing?

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

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Marketing plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a preschool business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of preschool company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide developmental, religious, academic or play-based learning systems?

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

Place : Place refers to the site(s) of your preschool(s). Document where your company is situated and mention how the sites will impact your success. For example, is your preschool business located in a new, master-planned community, near a business district, or in a standalone building? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your preschool marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

Advertise in local papers, radio stations and/or magazines
Reach out to websites
Distribute flyers
Engage in email marketing
Advertise on social media platforms
Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your 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 processes include all of the tasks involved in running your preschool business, including answering calls, placing preschoolers into programs, meeting with parents, planning and providing teaching sessions, billing and collecting revenue, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to open your fifth preschool, or when you hope to reach $X in revenue. It could also be when you expect to expand your preschool business to a new community in your city.

Management Team

To demonstrate your preschool business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing preschool businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your 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 business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a preschool business or successfully leading as a principal of a public elementary school.

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 revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you open a new preschool every two years, or offer summer school and daycare sessions? 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 business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your preschool business, this 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 lender writes you a check for $50,000, 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 business, and ensure 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.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a preschool business:

Cost of classroom furniture, equipment and office supplies
Payroll or salaries paid to staff
Business insurance
Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

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 list of parents who have enrolled their children on contract for the next two years, or the waitlist of parents who want their children to attend your preschool.

Writing a business plan for your preschool business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the preschool industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful preschool business.

Preschool Business Plan FAQs

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

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your preschool business plan.

How Do You Start a Preschool Business?

Starting a Preschool business is easy with these 14 steps:

Choose the Name for Your Preschool Business
Create Your Preschool Business Plan
Choose the Legal Structure for Your Preschool Business
Secure Startup Funding for Your Preschool Business (If Needed)
Secure a Location for Your Business
Register Your Preschool Business with the IRS
Open a Business Bank Account
Get a Business Credit Card
Get the Required Business Licenses and Permits
Get Business Insurance for Your Preschool Business
Buy or Lease the Right Preschool Business Equipment
Develop Your Preschool Business Marketing Materials
Purchase and Setup the Software Needed to Run Your Preschool Business
Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

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8 Essential Steps to Starting a Child Care Center or Preschool

Post author: Kris Murray
Post published: September 6, 2017
Post category: General-Business / Marketing & Enrollment
Post comments: 2 Comments

As a leading expert in the business of child care, I often get asked about the key steps one should follow when deciding to open an early learning center or preschool.

While there are many small pieces of a vast puzzle that need to fit together to start a successful child care business, here are 8 essential steps that I guide my clients to follow, whether it’s their first school or their fifth location.

One: Your Big Why

You must have a clear vision for WHY you want to start a child care center. Your “big why” will fuel you through the highs and lows you experience in this business venture. Specificity is important. The more you can write out a clear picture of your vision, the more easily you’ll be able to share it with others. When it’s time to galvanize the people on your team to take on more projects and tasks, it’s this vision that will sustain you and enable you to attract the right team members. Part of the vision is defining how your program is going to be unique and special in your market, compared to what preschool options are currently being offered by competitors. This will help you attract families and teachers, when it’s time to open your doors.

Two: Business Plan & Market Research

A solid business plan is key to your success. It will help you clarify your thinking, as you define your ideal size of school, building style, location, supply & demand calculations, competition, financing requirements, staff size and education requirements, marketing plan, and much more. The Small Business Administration is a great resource for helping new business owners understand the ins and outs of doing a business plan. They also have mentors available to help coach you through the process and ask you questions you may not have considered.

Three: Financing

Once you have your business plan written, and you’ve done your market research on the ideal location and size of your school, you can start putting numbers together for financing requirements. The more down-payment you have saved, the larger (or newer) facility you can lease, buy, or build. If you’re brand new to early childhood, or you don’t have a large savings set aside you might want to lease first, which is less of a financial commitment. You may also want to consider one of the leading child care franchises, as they help you with design, floor plan, operations, and marketing. Franchises typically require more cash up front than a traditional lease or than buying an existing smaller preschool that’s not a franchise. Again, the Small Business Administration is a great resource for financing options, as well as local community banks.

Four: Your Team

You need a team. This is crucial to your success. Before you open your doors, you will likely need a good commercial real estate broker, a child care business broker, and a financing expert or banker on your team. You may also want to hire a child care design expert to help you plan the ideal interior spaces of your school. As you get closer to gaining your license, you’ll need to determine if you’re going to act as the the Director or Head of School, or if you need to hire one. Also, you’ll need to start hiring teachers to begin employment 2-3 weeks prior to opening, so you have time to train them. Finally, I recommend you hire a bookkeeper or CPA to help you manage your finances and keep your eyes on the cash-flow.

Five: Site Selection

This step is related to financing and your business plan, but it warrants its own discussion because it’s so important. Weigh the pros and cons of different approaches to your facility. Buy or lease? Build from the ground up? Franchise or not? Go back to your vision. What’s the style, specific location, square footage, street visibility, and playground layout for the perfect school that’s defined in your “big why”? Perhaps most important, you need a clear understanding of your market and the demand for child care relative to existing supply. Lay out all the existing child care options on a map, including family child care homes and church preschools. You should be able to get a comprehensive list from ChildCareAware.org. Enter your zip code into the website and locate your local Child Care Resource & Referral Agency (CCR&R). Give them a call, ask for this list, and ask about other resources they may have to help you as a new provider, such as training and low-interest loans.

Six: Licensing

Each state has its own licensing requirements and you should become very familiar with yours. Call your state and do some digging. Ask for the name of who your licensing agent will be, based on your location. Try to build connections and relationships with these people. If you have a positive relationship with your licensing representative, it will make a world of difference (versus an adversary relationship). Obviously, you need to gain your licensing approval prior to opening your doors. This is a big and important piece of the process.

Seven: Interior Design / Equipment

As you get closer to opening, you need to design the interior spaces of the school and purchase furniture, toys, curriculum (or create your own), and other equipment. If you’re going to serve meals and snacks, you need a kitchen for food prep. Your state ratios and square footage requirements by age of child will help you plan out the size of each age group’s room. If you decide to do mixed ages, you probably need to meet requirements for the youngest child in that room. Your approach to early childhood and your vision will feed into this plan. For example, the design and learning equipment for a Montessori approach is much different than a traditional play-based approach or a STEM learning area.

Eight: Software and Tools

You will have a much easier business to run, and much more successful from the opening, if you use child care software programs to help you and your staff manage the operations. The first one to consider is child care management software. The leading option in this category is Procare. You can have children automatically checked in and out, which enables real-time tracking of exactly who is in each classroom. Procare also provides automated tuition collection, payroll, scheduling, and so much more. Another great software to have is called customer relationship management (CRM) software. This software helps you maximize your enrollment early and quickly, by allowing you to build a database of prospective families who contact you, and you can track how many of them take tours and enroll, as well as set up automated email and text campaigns so you can stay in touch with them over time. This is much more effective than managing your leads by “sticky notes” or paper.

Finally, understand that you’re starting a business, not just an early learning service. Yes, you are opening a school but you’re also starting or expanding a business that needs to survive and thrive, even if you’re a non-profit. The more you study successful entrepreneurs, leadership, money management, and other business topics, the more you will succeed.

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This post has 2 comments.

Thanks for sharing such useful information. It helps us a lot in starting a daycare center.

Choose a suitable location for your preschool. Consider factors like accessibility, safety, and proximity to residential areas. Ensure that the space meets all regulatory and licensing requirements.

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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 Executive Summary

Business overview.

Red Balloon Daycare is a new, locally established daycare and preschool located in Round Rock, Texas. Red Balloon Daycare will offer a variety of services that range in age from infants to twelve years old. The daycare will foster a nurturing, loving, safe environment where a child will feel comfortable while learning foundational skills that will enable them to have a successful cognitive, behavioral, and emotional successful childhood. Red Balloon Daycare’s teaching staff are all highly-qualified and certified early education teachers and receive the latest in training and development. The daycare offers competitive tuition rates and offers live audio streaming so that a parent can login and check on their child at any given time. The facility will also have secure-access codes to ensure that only verified parents and visitors are allowed onsite.

Red Balloon Daycare’s curriculum is developed with the latest innovative learning methods and techniques so that each child will receive proper foundational skills taught in a positive manner while providing a fun and enriching learning environment.

Product Offering

The following are the services to be offered by Red Balloon Daycare:

Infant class (6 months – 2 years old)
Toddler class (2 to 3 years old)
Preschool class (3 to 4 years old)
Pre-kindergarten class (4 to 5 years old)
Before and After School program for elementary age children.
Summer camps

Customer Focus

Red Balloon Daycare will focus on families living in and around Round Rock, Texas that are either starting out or have young children. They will target nearby businesses so that working parents will have another option in daycare. They will also target nearby elementary schools so that parents will have access to their before and after school programs, and summer camps.

Management Team

Red Balloon Daycare is owned by Jim and Susan Smith. Susan Smith will be the Director of the facility as well as the onsite program development coordinator. Jim Smith is an electrical engineer who will be responsible for the technology component of the daycare to include the audio live streaming and secure access control locks for the facility.

Success Factors

Red Balloon Daycare is primed for success by offering the following competitive advantages:

Friendly, warm, and safe environment for children.
All teachers are early education certified, trained, and experienced.
Menu that is developed with the highest regard for nutritional value at a young age. All meals served will be nutritionally well-rounded, fresh, and prepared with the safest cleanliness standards.
Live internet video of all classrooms and rooms so that each parent has the ability to logon and check on their child at any given time.
Security-controlled facility access. Only permitted parents and visitors are given access via a passcode.
Age-appropriate playgrounds with the safest playground equipment.

Financial Highlights

Red Balloon Daycare is seeking $110,000 in debt financing to open its daycare facility in Round Rock, Texas. The funding will be dedicated for facility design and improvements, working capital, equipment, supplies, and technological costs. The breakout of the funding is below:

Daycare build-out with classrooms and playground: $40,000
Playground equipment: $15,000
Daycare supplies (toys, books, cots, pillows, etc.): $10,000
Technology costs (live audio streaming, camera, and secure-access locks): $10,000
Payroll, rent and overhead costs (3 months): $30,000
Working capital: $5,000

The following graph below outlines the pro forma financial projections for Red Balloon Daycare.

Play. Learn. Discover. Thrive

Thrive Early Learning Center is devoted to comprehensive care of children with specialized learning needs. At Thrive cutting edge practices meet sound science. Guided by our passion and driven by results, Thrive provides meaningful educational experiences for our littlest learners.

Classes now enrolling

Our Early Childhood Program is currently enrolling students from 2 to 6 years old in a variety of programs. Check out how we can help your family thrive.

See Our Offerings

Diagnostic Evaluations

Thrive is proud to announce the expansion of our services to now include diagnostic evaluations. With Thrive Diagnostics you can trust that you will get the results you need with little to no wait time. This means starting necessary services, sooner. Proudly, our evaluation team is led by a Pediatric Clinical Psychologist, and options for speech and occupational therapy assessments included in the evaluation are available.

Meet Our Team

We believe that the greatest learning outcomes start with the greatest staff. That’s why our expert level care team is comprised of early childhood educators, intervention specialists, board certified behavior analysts, behavior technicians and a full related services team.

We are an education-based early learning center, dedicated to creating a high-quality, educational learning environment for our community's youngest members!

Palouse Early Learning Center has been serving children and families in Moscow, Pullman and the surrounding Palouse area since 2007. In July 2018, PELC opened up a second location to better serve members in our community!

We specialize in providing high-quality care for infants (6 weeks and older) through pre-K and kindergarten. Our teachers are educators for young children, and strive to provide the best early childhood education we can. We take pride in helping to build a solid foundation for education and early childhood development for children at Palouse Early Learning Center.

Information
Our Classrooms
Special Events
Community Resources

We are more than just a daycare center: Our teachers provide children with valuable learning experiences that help them to develop a strong sense of confidence in their abilities, and respect for the world around them. We value being respectful to ourselves, our teachers, our school, our families, our community, and the world around us. These values are evident within our childcare center and have served our students well.

Call today to schedule a tour!

208-882-5437 (kids), our mission , call us today at 208.882.5437(kids). two amazing locations to serve you..

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83843 Child Care Centers >>
Palouse Early Learning Center

Palouse Early Learning Center - Moscow ID Child Care Center

About the Provider

Description : PALOUSE EARLY LEARNING CENTER is a Child Care Center in MOSCOW ID. This child care center helps with children in the age range of 1 month 2 weeks to 12 years. The provider also participates in a subsidized child care program.

1150 ALTURAS DR STE 107, 1150 ALTURAS DR STE 107 MOSCOW ID 83843
(208) 882-5437
Company Website

Operation Hours

Days of Operation Monday - Friday

Program and Licensing Details

License Number: 546155
Age Range: 1 month 2 weeks to 12 years
Rate Range 0 - 12 Months : 945.00 Monthly FT 13-30 Months (1-2.5 years) : 895.00 Monthly FT 31-60 Months (2.5-5 years) : 775.00 Monthly FT 5 - 6 Years : 700.00 Monthly FT 6 - 12 Years : 30.00 Daily FT
Enrolled in Subsidized Child Care Program: Yes
Languages Supported: English, Sign Language
Type of Care: Full-Time, Part-Time
Schools Served: A. B. McDONALD, J. RUSSEL, LENA WHITMORE, WEST PARK
District Office: Idaho Dept of Health and Welfare - Daycare Licensing Program
District Office Phone: 1-800-926-2588 (Note: This is not the facility phone number.)

Location Map

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1150 ALTURAS DR STE 107, MOSCOW ID 83843
Please be thorough in verifying the quality of this child care provider, and be sure to read any reviews and inspection records that can help guide you to an informed decision. You want to be confident your child is in good hands.
Are you the owner or director of this facility? Update your information here for free. Update Daycare Information
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ChildcareCenter does not verify business credentials including licensing information. You are responsible for performing your own research to select an appropriate care provider.

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Providers in zip code 83843.

Learning Center Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Education Sector

Are you about starting a learning center company? If YES, here is a detailed sample learning center business plan template & FREE feasibility report.

A learning center is a self-contained section of the classroom in which students engage in independent and self-directed learning activities. Learning centers provide students with exciting and interesting experiences to practice, enrich, reteach, and enhance their learning.

These types of centers are filled with art materials, books, and other instructional tools. It is important to state that there are different types of learning centers; learning centers can vary a great deal when it comes to their design and the results they want to achieve.

But for the purpose of this business plan, we will concentrate on early childhood learning center. Lastly, there are no barriers as regards those who can start a learning center in the united states; educationist, philanthropists, parents, community leaders, social entrepreneurs, religious organizations, businesses, teachers, school districts, and towns can start their own learning centers.

Having said that, if you interested in starting your learning center, then here is a comprehensive learning center business plan template that will give you the needed guide.

A Sample Learning Center Business Plan Template

1. industry overview.

The Early Childhood Learning Centers industry comprises establishments that provide basic skill and education courses for children between the ages of two and five.

Reputation indeed is imperative to parents’ decisions when shopping for early childhood learning centers. This is because the quality of education cannot be assessed until after it is complete.

2. Executive Summary

We have plans in the future to also offer learning platforms to people with both learning disability and physical disability (especially the blind, the dumb and the deaf).

Our overall business goal is to position our early childhood learning center to become the leading brand in the industry in the whole of Little Rock – Arkansas, and also to be amongst the top 10 learning centers in United States of America within the first 20 years of operation.

3. Our Products and Services

Planning and implementing a diverse curriculum for children
Developing activities to introduce math and literacy concepts
Providing child and infant daycare to an extent
Operating Head Start programs

4. Our Mission and Vision Statement

Our vision is to build a highly competitive early childhood learning center that will become the number one choice for both parents and students in the whole of Little Rock – Arkansas.

Our Business Structure

We will ensure that we hire competent hands (teaching and non – teaching staff members) to help us build the early childhood learning center of our dream.

The fact that we want to become one of the leading early childhood learning centers in the industry in the whole of the United States of America makes it necessary for our organization to deliberately build a well – structured business from the onset.

Head of The Early Childhood Learning Center (School Proprietress)

School Administrator

Early Childhood Learning Specialist

Accountant/Bursar
Client Service Executive/Front Desk Officer

Security Officers

5. Job Roles and Responsibilities

Head of the Early Childhood Learning Center/School Coordinator:

Responsible for providing direction for the center
Responsible for handling high profile clients and deals
Responsible for fixing fees and signing business deals (partnership)
Responsible for signing checks and documents on behalf of the early childhood learning center
Coordinates all arms of the center
Evaluates the success of the center
Reports to the board
Responsible for overseeing the smooth running of HR and administrative tasks for the early childhood learning center
Designs job descriptions with KPI to drive performance management for tutors (teachers)
Regularly hold meetings with key stakeholders (parents and member of the school board) to review the effectiveness of the schools’ Policies, Procedures and Processes
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defines job positions for recruitment and managing interviewing process
Carries out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversees the smooth running of the daily activities of the early childhood learning center.
Effectively teach subjects as assigned by the school administrator
Accesses the progress of students under their care
Ensures that students abide by the rules and regulations of the center
Contributes his/her quota towards growing the early childhood learning center
Receives complaints from parents and channel it to the appropriate quarters
Handles any other duty as assigned by the school administrator.

Marketing Executive

Identifies, prioritizes, and reaches out to new students, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts
Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
Responsible for handling business research, market surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the school

School Bursar (Accountant)

Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides management with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for one or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for Little Rock® Community Learning Center, Inc.
Serves as internal auditor for Little Rock® Community Learning Center, Inc.

Client Service Executive

Welcomes/receive parents and students by greeting them in person or on the telephone; answering or directing inquiries.
Ensures that all contacts with parents and students (e-mail, walk-In center, SMS or phone) provides a personalized customer service experience of the highest level
Through interaction with parents and students on the phone, uses every opportunity to build parent’s interest in the schools’ services
Consistently stays abreast of any new information on the organizations’ promotional campaigns etc. to ensure accurate and helpful information is supplied to parents and students when they make enquiries
Receives parcels / documents for Little Rock® Community Learning Center, Inc.
Distributes mails in the organization
Handles any other duties as assigned by the School Administrator.
Responsible for cleaning the school facility at all times
Ensures that toiletries and supplies don’t run out of stock
Cleanses both the interior and exterior of the school facility
Handles any other duty as assigned by the school administrator
Ensures that the school facility is secured at all time
Controls traffic and organize parking
Gives security tips to staff members from time to time
Patrols around the building on a 24 hours’ basis
Submits security reports weekly
Any other duty as assigned by the school administrator.

6. SWOT Analysis

We are well positioned in a community with the right demography and we know we will attract loads of students from the first day we open our doors and welcome students for enrollment.

Opportunities:

The number of children under the age of nine is expected to increase slightly in 2018, representing a potential opportunity for the industry.

7. MARKET ANALYSIS

Market Trends

8. Our Target Market

Our Competitive Advantage

They are highly qualified educationists/teachers at various levels of learning in the United States. These are part of what will count as a competitive advantage for us.

9. SALES AND MARKETING STRATEGY

Sources of Income

Providing child and infant day care to an extent

10. Sales Forecast

First Fiscal Year (FY1): $250,000
Second Fiscal Year (FY2): $450,000
Third Fiscal Year (FY3): $750,000

Marketing Strategy and Sales Strategy

Little Rock® Community Learning Center, Inc. is set to make use of the following marketing and sales strategies to attract clients;

Introduce our early childhood learning center by sending introductory letters alongside our brochure to schools, parents/household and key stakeholders in Little Rock – Arkansas.
Print out fliers and business cards and strategically drop them in schools, libraries and even student organizations.
Creating a website, allows parents to be able to look you up, and also allows you to post general study tips, giving you an added advantage.
Use friends and family to spread word about our early childhood learning center
Introduce Little Rock® Community Learning Center, Inc. to learning specialists, school coaches, school administrators, teachers, guidance counselors especially as they are with students everyday
Post information about Little Rock® Community Learning Center, Inc. on bulletin boards in places like schools, libraries, and local coffee shops.
Placing a small or classified advertisement in the newspaper, or local publication about Little Rock® Community Learning Center, Inc.
Using tutorial referral networks such as agencies that will help match students with Little Rock® Community Learning Center, Inc.
Joining relevant association or body that will enable us network and meet others in same industry.
Advertising online by using an advertising platform such as Google AdWords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
Advertise our early childhood learning center in relevant educational magazines, newspapers, TV and radio station.
Attend relevant educational expos, seminars, and business fairs et al
Engage direct marketing approach
Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We are set to become the number one choice for both parents and students in the whole of Little Rock – Arkansas which is why we have made provisions for effective publicity and advertisement of our early childhood learning center. Below are the platforms we intend to leverage on to promote and advertise Little Rock® Community Learning Center, Inc.;

Place adverts on both print (community based newspapers and educational magazines) and electronic media platforms
Sponsor relevant community based events/programs
Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
Install our billboards in strategic locations all around Little Rock – Arkansas.
Engage in roadshow from time to time in targeted neighborhoods in and around Little Rock – Arkansas
Distribute our fliers and handbills in target areas in and around Little Rock – Arkansas
Passing general information via our school’s social media handles like twitter, Facebook, Google hangouts etc.
Ensure that all our teaching and non – teaching staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.

12. Our Pricing Strategy

Early childhood learning centers charge students based on loads of factors including location, service offerings and extra – curricular activities.

Payment Options

Here are the payment options that Little Rock® Community Learning Center, Inc. will make available to her clients;

Payment via bank transfer
Payment with cash
Payment via online bank transfer
Payment via mobile money
Payment via Point of Sales Machines (POS Machines)
Payment via check
Payment via bank draft

13. Startup Expenditure (Budget)

In setting up an early childhood learning center business, the amount or cost will depend on the approach and scale you want to undertake.

If you intend to go big by acquiring a large facility, then you would need a higher amount of capital as you would need to ensure that your employees are taken care of, and that your early childhood learning center’s environment is conducive enough for the students to learn.

The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a early childhood learning center business; it might differ in other countries due to the value of their money. However, this is what it would cost us to start Little Rock® Community Learning Center, Inc. in the United of America;

Business incorporation fees in the United States of America will cost – $750.
The budget for Liability insurance, permits and license will cost – $3,500
Acquiring a large facility that will accommodate the number of block of classes, playing field, staff offices and parking lots et al (Re – Construction of the facility inclusive) will cost – $350,000.
Equipping the classes and office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $50,000
Launching an official website will cost – $500
The budget for the payment of salaries for the first three months of operations: $120,000
Additional Expenditure such as Running cost, Business cards, Signage, Adverts and Promotions will cost – $45,000

Generating Funds/Startup Capital for Little Rock® Community Learning Center, Inc.

Generate part of the startup capital from personal savings and sale of his stocks
Generate part of the startup capital from government, friends and other extended family members
Generate a larger chunk of the startup capital from the bank (loan facility).

All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

Little Rock® Community Learning Center, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

Check List/Milestone

Business Name Availability Check: Completed
Business Incorporation: Completed
Opening of Corporate Bank Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Securing a standard facility large enough to accommodate our design: Completed
Conducting Feasibility Studies: Completed
Generating part of the startup capital from the founders: Completed
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents: In Progress
Design of The Schools’ Logo: Completed
Printing of Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
Creating Official Website for the school : In Progress
Creating Awareness for the early childhood learning center in Little Rock – Arkansas: In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with vendors and key players in the education industry : In Progress

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COMMENTS

How to Write a Business Plan for Daycare and Preschool
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. Source. Writing a daycare business plan. We've discussed licensing and investors ...
Learning Center Business Plan [Sample Template for 2022]
If YES, here is a detailed sample learning center business plan template & FREE feasibility report. A learning center is a self-contained section of the classroom in which students engage in independent and self-directed learning activities. Learning centers provide students with exciting and interesting experiences to practice, enrich, reteach ...
The Daycare Business Plan Blueprint (Examples + Template)
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.
How to Start a Daycare Center: 15 Steps for Success
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.
Childcare Business Plan Template & Guide [Updated 2024]
Child Care Business Plan Template. Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their child care centers. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a child care ...
Daycare Business Plan Template (2024)
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 ...
Daycare Business Plan Creation
It all starts with creating a good daycare business plan. With the right plan in place, opening a daycare has never been easier! Our comprehensive guide will walk you through creating a business plan. At the end, be sure to download our free template and hit the ground running! Video - Daycare Business Plan.
How to Write a Business Plan for a Daycare Center
Asking for free months shows you're a competent negotiator who takes his business seriously and has a long-term profit goal in mind. Another thing to watch out for with monthly rent is all the added costs. Say your price is $20 per square-foot and your building is 5,000 square-feet. This adds up to $100,000.
Child Day Care Services Business Plan Example
Services. Kid's Community College® offers upscale child care services and an advanced collegiate based curriculum designed for kids ages 4 months to 5 years and 1st through 5th grades. Normal operating hours will be 6:45am to 6:30pm, Monday through Friday - with observance of all major legal holidays.
How to Start a Daycare Business
Step 3: Create a business plan. You have a business idea, and now it's time to turn that idea into a plan. This requires some specific decision-making and research to nail down the details of your daycare. To help guide your plan, check our daycare business plan example and free template. 1.
PDF Free Version of Growthinks Daycare Business Plan Template
The real version of Growthink's Ultimate Daycare Business Plan Template is much more than a fill-in-the-blanks template. That template professionally guides you step-by-step so you can quickly, easily and expertly complete your business plan. Perhaps most importantly, it includes complete financial projections.
PDF Developing a Business Plan for Your Child Care Center
A business plan is a written document that describes your child care center's goals, why you think those goals are attainable, and how you plan to achieve them. Preparing a business plan forces you to think about all the things you need to plan and implement in order to start your business, expand your business, or achieve your program and ...
How to Create a Daycare Business Plan
This seems simple, but it does take a lot of work and persistence to get results. To distill this process into 5 broad business categories for your daycare business plan: Understand your target customers. Identify the need of your target customers. Research your competitors.
Developing a Business Plan for a Child Care Center
A business plan is a written document that describes your child care business and serves as a road map for where you see yourself in years to come. A business ... Child Care Center Business Plan 123 Main Street Anytown, ND 51111 701-555-5555 [email protected] Jane Doe, Director 701-555-5555 January 1, 2014.
Preschool Business Plan Template [Updated 2024]
Everyday short-term processes include all of the tasks involved in running your preschool business, including answering calls, placing preschoolers into programs, meeting with parents, planning and providing teaching sessions, billing and collecting revenue, etc. Long-term goals are the milestones you hope to achieve.
8 Essential Steps to Starting a Child Care Center or Preschool
Four: Your Team. You need a team. This is crucial to your success. Before you open your doors, you will likely need a good commercial real estate broker, a child care business broker, and a financing expert or banker on your team. You may also want to hire a child care design expert to help you plan the ideal interior spaces of your school.
Daycare Business Plan Executive Summary
Red Balloon Daycare is seeking $110,000 in debt financing to open its daycare facility in Round Rock, Texas. The funding will be dedicated for facility design and improvements, working capital, equipment, supplies, and technological costs. The breakout of the funding is below: Daycare build-out with classrooms and playground: $40,000.
PDF Child Care Center Business Plan
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Home
Thrive. Thrive Early Learning Center is devoted to comprehensive care of children with specialized learning needs. At Thrive cutting edge practices meet sound science. Guided by our passion and driven by results, Thrive provides meaningful educational experiences for our littlest learners.
Palouse Early Learning Center
We specialize in providing high-quality care for infants (6 weeks and older) through pre-K and kindergarten. Our teachers are educators for young children, and strive to provide the best early childhood education we can. We take pride in helping to build a solid foundation for education and early childhood development for children at Palouse ...
Palouse Early Learning Center
Palouse Early Learning Center - Moscow ID Child Care Center. 1150 ALTURAS DR STE 107 , MOSCOW ID 83843. (208) 882-5437.
Palouse Early Learning Center
Palouse Early Learning Center, Moscow, Idaho. 386 likes · 26 were here. Palouse Early Learning Center is a local childcare center serving children and families on the Palou
Learning Center Business Plan [Sample Template]
If YES, here is a detailed sample learning center business plan template & FREE feasibility report. A learning center is a self-contained section of the classroom in which students engage in independent and self-directed learning activities. Learning centers provide students with exciting and interesting experiences to practice, enrich, reteach ...

How to Write a Business Plan for Daycare and Preschool

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Industry background and experience

Writing a daycare business plan

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How to Write a Learning Center Business Plan [Sample Template]

Why Start a Learning Center?

A Sample Learning Center Business Plan Template

2. Executive Summary

3. Our Products and Services

4. Our Mission and Vision Statement

5. Job Roles and Responsibilities

6. SWOT Analysis

7. MARKET ANALYSIS

8. Our Target Market

9. SALES AND MARKETING STRATEGY

10. Sales Forecast

11. Publicity and Advertising Strategy

12. Our Pricing Strategy

13. Startup Expenditure (Budget)

Generating Funds/Startup Capital for Little Rock® Community Learning Center, Inc.

14. Sustainability and Expansion Strategy

More on Education

The Daycare Business Plan Blueprint (Examples + Template)

But First...Is a Daycare a Good Business to Start?

How to Create a Daycare Business Plan

Business Model

Executive Summary

Create a Compelling Business Description

What's your Curriculum Based On?

How Big is Your Facility?

Who Is Your Target Market?

Do a Thorough Market Analysis

The Size of Your Market

Daycare Marketing Plan

Daycare Financial Plan

How much does it cost to start a daycare?

How much revenue can a daycare business make?

How much does daycare cost?

What is the typical child to staff ratio for a daycare?

What are the typical operating costs for a daycare?

How much profit can a daycare make?

What Are The Benefits of Creating a Daycare Business Plan?

Gives You a Roadmap to Follow

Helps You Secure Funding

Ensures Your Daycare Business is Feasible

Final Thoughts

You can get the Daycare Facility financial projection template here!

The daycare business projection template includes:

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Have some questions? Let us know and we'll be in touch.

Resources for Your Growing Business

Why Start a Daycare?

1. Learn About Daycare Licensing Requirements

2. Consider Taking Early Childhood Education Classes

3. Create a Daycare Business Plan

4. Find a Location for Your Daycare

5. Get Insurance

6. Seek Out Grants and Funding

Costs Associated with Starting a Daycare

7. Prepare Your Daycare Center

8. Draft up a Contract

9. Establish Policies and Procedures

10. Research Possible Tax Credits

11. Hire Staff as Needed

12. Market Your Daycare

13. Promote Your Daycare on Social Media

14. Provide Top-Quality Care

15. Manage Your Business Finances

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How to Start a Daycare Business