Do you have an eye for business, and are looking to get into the daycare industry? Great! But perhaps you’re not quite sure where to start. In this blog post, we’ll break down the steps you need to take in order to put your child care business on solid ground from day one. For example, some questions you need to consider include the following: 


  • What should your business model look like? 
  • Who is your target market? 
  • How can you promote your daycare and stand out from your competitors? 

These are all important questions that need to be answered before you open up shop. Keep reading for essential information you’ll need in order to set up a successful child care business!


Conduct a detailed market analysis

Before you jump in and sign a lease for your chosen location, it’s extremely important to consider what the market statistics look like in your surrounding area. First, you need to research the local market, including nearby competitors, as well as specifics of your target audience. From there, you’ll need to analyze your competitors’ price points. Consider what they offer and their tuition fees, and how you plan to compete with those price points. 


Create a business plan that includes start-up costs plus operating expenses for one year (this can include projections). This next step is important in order to help you determine the status of your finances moving forward. What are your fixed and variable costs? How much will you be paying your staff? These factors will help you determine what your tuition costs should be. Once you do this, you can start analyzing the ideal location to set up shop, and then familiarize yourself with the licensing requirements to operate your daycare in that area. 


Determine your business model 

In order to ensure that your daycare business is successful, it’s extremely important to determine your business model as soon as possible. In this step, you need to take into account the following: 


  • Who are the members of your target market (in terms of age range and type of care needed)? 
  • Will you be accepting government-subsidized tuition or only private pay tuition?
  • Will you be offering discounts on tuition costs? 

While keeping all of these factors in mind, it’s important to also keep up with industry trends, as this can have a significant impact on how you operate your daycare moving forward. 


Hire the right people to help manage and maintain your center

One of the most crucial assets of your daycare center is your staff. The more knowledgeable and experienced your employees are, the better for all involved. To ensure that you hire the right staff, it’s important to scour local colleges or vocational schools and hire qualified candidates who will be able to provide excellent care and also stay loyal to your center. From there, you’ll want to build your daycare organizational structure accordingly. Ask yourself:

  • Who will the director be? 
  • Who will the assistant director be? 
  • Are you going to have a board of people, as opposed to one person making decisions for the center? 

When conducting your hiring efforts, ensure that you mention the specifics of each role and what each of that person’s responsibilities will be, as well as compensation. Consider the types of perks and benefits staff will receive while working at your center, and ensure that you do your due diligence when looking into each candidate’s experience and background in the child care industry. 


Come up with a marketing plan to reach your target audience 

In order to determine the best marketing plan for your daycare center, you’ll want to take into account the type of clientele you’re looking to attract. For example, if you plan to target infants’ parents who have a spouse who works full-time outside of the home, it may be wise for your center to focus on work-from-home opportunities and flexibility of hours. 


It’s also important to consider how much time will need to be allotted each week towards maintaining social media platforms, as well as how you intend to create a website for your daycare. Having a web presence is no longer a choice nowadays, as more and more parents are “Millennials” and the internet is this generation’s primary source of information. Whether you intend to create a website on your own or outsource help, be sure to create a budget beforehand. 



Starting a child care business is no easy task. It takes quite a bit of research and analysis before you decide how to execute your plan. As a long-term investment, be sure you are committed to operating your daycare in such a way that keeps up with the ever-changing industry trends and demands.


Do you need help bringing your child care business to life? Reach out to Local Child Care Marketing for a free consultation!