It is common for parents to work outside the home, which necessitates the need to arrange for some form of child care for their children. Although many kids are cared for by babysitters, relatives, or nannies, about a quarter of children below the age of five attend a daycare center. Looking at these statistics, you’ll see that there are plenty of opportunities for individuals who own a daycare business. In this post, we’ll provide you with a general guide for how to start your own daycare center.


Opening a daycare center can be a financially and personally rewarding endeavor. If you’re planning to start your own center in the United States, below are some vital details you need to know.


Can owning a child care facility be profitable?

Running a child care facility can be a lucrative business. If the center is operated outside of one’s home, the risks and startup costs can be relatively low. However, owners need to ensure that they are able to consistently make a profit by managing their center effectively. 


Do you need a professional degree to open a daycare center?

Child care business owners are not required to obtain a specific professional child care degree or have prior experience when starting a daycare center. However, they should have a firm understanding when it comes to early childhood development and the unique needs of young children.


A child care business is based on taking care of the little ones. Therefore, it’s vital to know how to support and care for them.


If you do intend to pursue a formal education, the best place to start is by earning a degree in early childhood development. Check your local community colleges or find classes online. This degree enables you to have a greater understanding with regard to children’s cognitive, physical, and social-emotional development. The skills and knowledge you gain will enable you to care for kids most effectively.


Aside from essential knowledge you can gain from a formal education, a degree will also give you  an edge over other daycare businesses in your area. You’ll be better equipped to serve the needs of families, which will eventually result in loyal clients.


How much does it cost to start a daycare?

The total cost to start a daycare largely depends on the size of your prospective business. The range is typically between $10,000 and $50,000.


If you don’t have at least $10,000 to open your daycare, you might consider researching any grants, funds, or loans for which you may be eligible. Some local businesses provide financial support to new child care centers. Your local community can also help with this venture. Consider reaching out to them.


A Guide on How to Start Your Own Daycare


Obtain a license

Before opening a daycare center, it’s crucial that you are properly licensed. This will allow you to operate your business legally and properly. Licensing requirements will vary from state to state.


Obtain necessary permits and certificates

In addition to meeting your local zoning requirements, your business also needs to have several other licensed and authorized inspections before you can open your doors. Some of these include the following: 


  • Fire prevention inspections
  • Building permits
  • Operational permits
  • Public health department clearances
  • Equipment certifications
  • Child care food handling training certificates of compliance


Create a business plan

Your business plan should include who you are, what you do, how you will accomplish your goals, and the process by which you will get “from point A to point B” so to speak. This document is vital when seeking bank loans or financial support from your local community. In addition, a business plan is essential for attracting clients, because it shows that your daycare center has a clear vision and purpose.


Select a location for your facility

After acquiring all of the necessary licenses and permits, you need to find the right space to house your child care center. There are two distinct categories when it comes to child care facilities: in-home daycare centers and out-of-home daycare centers. Ease and accessibility of your center should always be your top priority when choosing a location for your center.



Different types of insurance will protect the children enrolled at your center and your business overall. Look into the following policies for your center:


  • Property insurance
  • Liability
  • Worker’s compensation
  • Business insurance


Hire your staff

Hiring child care staff members entails a comprehensive interview and selection process. You may either hire one person, or a group of staff members, to provide adequate child care. The number of employees you need depends on the size of your center, and the requirements regarding adult-to-child ratios for each age level. For instance, you’ll need more caregivers for infants than those who work with toddlers.


In addition to understanding what is required in order to start your own daycare center, it’s also important to consider the marketing side of your business. Let LCCM help you in this area. With our services, we can help you promote your daycare business and attract enrollments. Contact us today for more information!