daycare business plan uk

Starting a Childcare Business: Everything You Need To Know

• Student Advice

Published: 16 March 2021

Author: Greg Robson

With the end of lockdown now in sight and the demand for childcare services steadily growing, if you’ve got the right skillset and an entrepreneurial spirit, there’s never been a better time to consider starting your own business as a registered childminder. Sound interesting? In…

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With the end of lockdown now in sight and the demand for childcare services steadily growing , if you’ve got the right skillset and an entrepreneurial spirit, there’s never been a better time to consider starting your own business as a registered childminder. Sound interesting? In this article, we’ll outline the practical steps you’ll need to take to start your own childminding business, what qualifications you’ll need, and key steps you’ll need to consider such as conducting market research and coming up with a business plan. We’ll also take a look at specific industry concerns such as Ofsted, health and safety, compliance, and safeguarding .

First Steps: Is a Childcare Business Right for You?

While setting up your own childcare business can certainly be an enjoyable endeavour and profitable to boot, it’s important to consider practicalities, especially if you’ll be running your business from home. Becoming a childminder is a much more flexible option than the alternative of opening up a day nursery, which is heavily regulated and costly. However, there’s still plenty you’ll need to consider:

Is your home suitable?

The first thing you’ll need to consider is the available space. Whilst your home might look large now, once you start your business , you’ll need to buy quite a lot of equipment, especially if you’re taking care of young children. Cots and toys take up room. If you don’t have enough space, you might need to make alterations, requiring planning permission.

You’ll also need to take a good look around and identify any potential hazards; kids love to explore and will get into everything, so investing in childproofing equipment is a must, as well as an Ofsted requirement if you’re taking care of young children. Lastly, you’ll need to find out whether you’re allowed to run a childcare business from your home under the law; if you own a rented property, for instance, you’ll need the landlord’s permission.

Is your family on board?

This is one of the key things you’ll need to consider when you’re planning to start a childcare business at home. Remember that your new venture will impact your whole family, so it’s vital that everyone who lives in your house is just as enthusiastic about it as you are.

How many children can you register to care for?

When considering how to start a childcare business in the UK, it’s important to familiarise yourself with the rules and regulations: In England, the limit for the number of children you can legally care for at one time is six children under the age of eight. This number also includes your own children. Therefore, you need to consider whether your new business venture will be practical (and profitable) for you. If you have triplets of your own, for instance, you might decide to reconsider!

Are you fit and healthy?

It goes without saying that caring for young children can be physically taxing. You’ll be spending lots of time on your feet, young children may need to be carried, and there’s also cumbersome equipment such as pushchairs to manoeuvre. In order to be approved by Ofsted, you’ll need to complete a medical check with your GP, which will certify that you’re healthy enough to work as a childminder.

What Qualifications Do You Need to Start a Childcare Business?

In order to become a registered childminder approved by Ofsted, you’ll firstly need to complete a professional childcare training course approved by your local council. These courses, such as our NCFE CACHE Level 3 Award in Preparing to Work in Home-based Childcare, will give you a great overview of age-appropriate learning and development and will help you to implement the EYFS (early years foundation stage) framework with children as you plan activities if you’ll be looking after children under the age of five.

You’ll also learn about safeguarding , child protection, and health and safety. Next, you’ll need to complete a paediatric first aid course to fully prepare for any emergencies that might arise. Lastly, you’ll need to attend a child protection course, as you must be able to identify any children in your care who are experiencing any kind of harm or abuse.

How to Become a Registered Childminder – Everything You Need to Know

In accordance with Ofsted guidelines, you’ll need to register as a childminder if you’re being paid to look after any children under the age of eight for more than two hours a day in a home setting. Even if you don’t fit into that criteria, however, you can still register, and there are certainly some benefits to doing so: you can apply for a childcare business grant to help with setting up costs, your details will be listed online with Ofsted, you’ll get access to advice and professional development opportunities, and you’ll also be able to reassure parents that your home has officially been recognised as a safe childcare environment. In order to register, you’ll need to complete the qualifications we discussed above, and everyone in your home over the age of 16 will also need to pass an enhanced DBS check, which costs £40 each. After you’ve satisfied all the criteria above, you’ll need to fill in a form online, which takes around 12 weeks to be processed, and pay a £35 administration fee. You’ll also be asked which register you’d like to join:

• The Early Years Register, which is for childminders taking care of children from birth to the age of five.
• The Childcare Register, which is for childminders taking care of children from the ages of five to eight.
• The Voluntary Childcare Register, which childminders can choose to join if they’re taking care of children over the age of eight.

Childcare Business Planning Advice

So, you’ve got the funds, you’ve got the space, and you’ve got the enthusiasm. Before you begin, however, it’s important to slow down and do some serious planning to make sure that your business is viable and profitable in the long run. Let’s run through some of the key things you’ll need to think about:

Writing a business plan

Think of any successful business, and you can guarantee that it began with a strong plan, and so should yours. If you’re not sure where to begin, you might consider taking a course such as our NCFE Level 2 Certificate in Creating a Business Start-up. You’ll gain an accredited qualification and be coached through the entire process by experts. Alternatively, you can download a free template from gov.uk, as well as view some great examples for inspiration. When writing your plan, you’ll consider how your business will be funded, your organisational structure, your financial projections, and much more.

Marketing and engagement

It’s vital to consider in-depth how you’ll market your new business to make sure you’re engaging with new customers. Firstly, you’ll need to set aside a realistic marketing budget. Then, you’ll need to do some research to discover exactly which strategies will work for you. If the idea of advertising online and on social media seems intimidating, ask around – you might just know someone who can talk you through it. Alternatively, turn to Google’s digital garage , which is a totally free digital marketing course for beginners aimed at small businesses. Of course, you might choose to rely on simpler marketing methods, such as posters, t-shirts you can wear to pick up your kids from school, or putting an advert in the local paper. Just make sure you’re regularly reviewing the success of your marketing strategies, and reconsidering them if they’re not paying off.

Key Things to Consider Before Starting a Childcare Business

Finally, it’s time to consider some of the more practical issues you’ll need to think about before staring your own childcare business and registering with Ofsted. As part of the process, you’ll need to pass an inspection, which will determine the suitability of your home and yourself for the role of an Ofsted registered childminder. You can read their full publication , but let’s take a look at some of the key things requirements:

Is your home as safe as possible?

Ofsted will want to know that children will be safe in your care. As we touched on earlier, this includes making sure that your home is child-friendly and free of potential hazards, and to ensure this you’ll need to complete a risk-assessment . You’ll also need to create a written statement of procedures to be followed to ensure that the children you care for are safeguarded from abuse or neglect, which you will discuss during the child protection course you attend.

Have you got the right insurance?

In the UK, it’s a legal requirement for childcare professionals to have public liability insurance. This is to protect the children in your care, but also to protect you – if anything should go wrong, as long as you have insurance, you’ll be covered for the costs of any legal claims made against you by third parties. You’ll also need to check you have the right home and building insurance to cover any accidental damage to your property caused by the children in your care. Additionally, if you’ll be transporting children in your car, you’ll need Business Class 1 insurance added to your policy.

Have you created an inclusive environment?

Part of Ofsted’s requirements for home childminders is that they must show that every child they take care of is included and welcomed regardless of race, religion, background, gender, or disability. This means treating every child and their family equally and with respect, planning activities that all children can participate in and be comfortable with, and providing resources that reflect the background of each child in your care. For instance, if a child is Hindu, it’s a great idea to gather some age-appropriate books that explain important festivals in Hindu culture, such as Diwali. You must also have arrangements in place to support children with disabilities; for instance, if you care for a child who needs a wheelchair for mobility, you’ll need to ensure they can easily access your property.

So, now you know what it takes to start your own home-based childcare business and register with Ofsted, why not get started with our NCFE CACHE Level 3 Award in Preparing to Work in Home-based Childcare ? Alternatively, check out our range of childcare courses and business courses , or give one of our experienced course advisers a call on 0121 630 3000.

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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Child Day Care Services Business Plan

Start your own child day care services business plan

Kid's Community College

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Kid’s Community College® aims to prepare its students to excel as young leaders of tomorrow by combining an exclusive collegiate-based curriculum tailored specifically for children with enhanced, first class child care services. Unlike our competitors, we offer advanced technology programs, after-school tutoring, and activities such as arts and crafts, dance, theatre and gymnastics, all in one location.

Kid’s Community College is a privately held corporation run by its owner, Timothy Bernard Kilpatrick, Sr. Mr. Kilpatrick has 17 years of Executive Management (VP) and Budgeting experience, and extensive experience with budgeting methodologies and strategic planning, including the Balanced Scorecard approach. His advanced degree (and interest) in computer science is the driving force behind our technology component. He will be supported in daily operations by an industry consultant, a campus director, and a VP of educational operations, all with extensive experience in child care fields.

With inflation continuing to rise each year, the typical American family now requires dual or supplemental incomes. This trend has created a need for quality child care services. The population growth rate in the Riverview area of Hillsborough County is now over 14.6%, leading us to anticipate expanding market potential for this industry in our local area. Price, service, certification and reputation are critical success factors in the child care services industry. Kid’s Community College® will compete well in our market by offering competitive prices, high-quality child care services, and leading-edge educational programs with certified, college-educated instructors, and by maintaining an excellent reputation with parents and the community we serve.

This is a daycare business plan for Kid’s Community College®, which will focus on two subdivisions: ‘Lake St. Charles’ and ‘The Villages of Lake St. Charles,’ which are new upscale community developments within a 2 square mile radius, boasting over 900 new homes. Our target customers are dual-income, middle-class families who value the quality of education and child care we provide for their children, ages 4 months to 12 years.

We will open for business starting with an initial enrollment of 13 students. We project healthy revenues by the end of the first year, and expect to nearly triple that by the end of Year 3. Our biggest operating expenses will be compensation at industry standard rates for our highly-qualified personnel, and rent on our facilities, improved for our purposes during the start-up period. We would like to grow into four campuses, eventually, but growth is planned conservatively, to be financed from existing cash flow as we go. We anticipate a net profit beginning in our second year.

To these ends, we are putting significant investment in the business, and are seeking a matching amount in the form of an SBA loan.

“Some of the best years in life are the time spent as a child and later our collegiate years…” As working adults in a fast paced society, we sometimes forget just how precious and  fleeting those years are.

With that in mind, imagine an alternative to traditional infant, day and after school care that not only met your child care needs, but also provided an activity based learning environment that mirrors those used at colleges, universities and vocational centers around the nation.  A college community of professional care givers with the credentials to not only enhance your child’s early social and motor skills, but to also teach them advanced studies in the arts and sciences found at institutions of higher learning.  A collegiate-based curriculum tailored specifically for children, taught in a fun, nurturing care giving environment.

Now imagine this at a cost less than that of the combination of conventional day care and specific interest based children programs.

Kid’s Community College® is a start-up comprehensive community college exclusively for kids ages 4 months to 5 years and 1st through 5th grades.  The College dedicates its efforts and resources toward ensuring top-rated care giving services coupled with a high-quality activity based learning environment tailored for children in these age groups.  The College will respond to the needs of its parents and students with excellent care-giving and instruction, an advanced curriculum, flexible programs, local community involvement and business partnerships.

The College has a strong commitment to accessibility and diversity.  Its open door policy embraces all who desire to provide a better quality of care, preparedness and education for their children.  The College works to provide affordable, first-class care giving and education by providing a broad range of integrated programs and services and innovative learning approaches.

The College is committed to taking a leadership role in child care services, higher learning, community services and promoting cultural diversity.  Kid’s Community College® directs its activities towards student success.

• Sales increasing to almost double first year sales by the end of Year 2.
• Maintain a high raw gross margin by the end of Year 1.
• Open second campus by the end of Year 1.
• Begin franchise effort by end of Year 3.

Keys to Success

The keys to success for KCC are:

• Marketing: differentiating KCC’s care giving and educational services from traditional daycare offerings and interest activity programs.
• Service quality: care giving and educational programs provided by degreed and certified educators, child care workers, tutors and subject matter industry professionals in a technologically advanced first-class collegiate environment.
• Reputation: maintaining a highly regarded reputation for excellence in care giving, education and community involvement and being the employer of choice in our market for child care and educational talent.
• Profitability: controlling costs and managing budgets in accordance with company goals, adhering to strategic business plans for growth and expansion and reinvesting in the business and its employees.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Kid’s Community College® – Lake St. Charles Campus will be located in Riverview, FL.  The College will employ six fundamentals that will serve as the driving force for the services offered:

• Premier Care Giving Services
• An Activity Based, Children Structured Collegiate Curriculum
• Advanced Technology and Developmental Programs
• Trademarked General and “Continuing” Education Mentoring and Tutoring 
• Learning Services
• Community Advancement and Involvement

The Lake St. Charles campus is a newly constructed, 3,600 square foot facility in the Lake St. Charles Medical Plaza and will be developed meeting strict KCC design standards, under close supervision of Hillsborough County child care Licensing.

Start-up Summary

The college founder and president, Mr. Kilpatrick, will oversee fiscal responsibility, employing an independent CPA for financial oversight.  A Campus Director will be hired to handle day-to-day operations of the facility and will work collaboratively with the silent partners and other campus personnel to ensure a successful business venture.

As reflected in the table below, the estimated start-up costs for KCC will be $39,450.  These costs will be financed solely by the owners’ personal cash funds and optional credit lines.  An anticipated $60,000 SBA guaranteed 5-year loan will be used as working capital.  Future expansion, growth and franchising strategy will be self-financed.

Company Locations and Facilities

Kid’s Community College® will begin with one location – a newly constructed 3,600 square foot campus in Riverview, FL located near the entrance of the upscale Lake St. Charles subdivision.  The campus is in the Lake St. Charles Medical Professional center and will boast separate halls for arts and crafts, theatre and dance, information technology, library and quiet study, tutoring, infant care and a cafeteria.  The play area will be adjacent to the campus and will be securely fenced and furnished with appropriate playground equipment and facilities. 

Three additional campuses are planned in the rural Tampa marketplace over the next four years.  Franchise start-ups will be offered in the Orlando, Miami and Jacksonville marketplace after 2 years of successful operation.

Company Ownership

Kid’s Community College® is a privately-held proprietorship owned in majority by its founder and president, Timothy Bernard Kilpatrick, Sr.  There are also two silent partners, neither of whom owns more than 10%, but will be active participants in daily operations, management decisions and consulting, though they do not own a financial stake in the company.

Once the operation reaches its anticipated growth and profitability goals, the college plans to franchise and will re-register as a limited liability company or as a corporation, whichever will better suit the future business needs. 

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.  Early drop-off service will be offered as needed. 

KCC exists to provide Premier child care services that are aimed at enhancing traditional day care methodologies and integrating extracurricular interests (such as arts and crafts, dance, theatre and gymnastics) into one comprehensive program.  Our activity based collegiate curriculum is specifically tailored for children and mirrors the arts and sciences taught at colleges, universities and vocational schools around the nation.  We offer state-of-the-art technology programs in leading-edge facilities which help prepare students for the technology age in which they live.  Our general and “continuing” education programs help mentor and tutor students through “main school” homework assignments and provide a base of understanding and interaction to ensure success in future educational endeavors.  Finally, our developmental programs reinforce basic social, listening, independence and motor skills and prepare students for future related interaction.

All of our learning and child care services employ technology, partnerships, professional services and other activities that support and promote higher learning.

In addition to the extensive services and curriculum offered, each campus will also offer weekend specialty classes for children and adults and planned family activities in the community it serves.  KCC will also offer children birthday party hosting services, providing great activities for kids and an easy experience for parents.  Activity instructors will be assigned for these events and will lead the activities, ensuring a memorable celebration. 

Service Description

Upon its opening, Kid’s Community College® will offer four basic services in the Lake St. Charles community:

• Full-time Child Day Care
• Part-time/After School Care (including drop-off and pick-up)
• After School Tutoring
• Drop-In Care

Prior to opening, the college will have a two-month enrollment drive.  Based on the market reaction to the drive, these services may be altered to meet the needs of the community.  The college will always remain nimble enough to respond to the needs of the community in which it serves.

Competitive Comparison

The child care industry as a whole is saturated.  However, based on US Census 2000 data, Hillsborough County Child Care Services provider listings and Hillsborough County building permit records, the city of Riverview, Florida itself is growing and has few licensed child care facilities.  Kid’s Community College® intends to fill this local market need.

The Lake St. Charles and ‘The Villages of Lake St. Charles’ subdivisions have 800 and 100 single family homes respectively. There are only two other child care facilities in the neighborhood. One is in the immediate area, a church based facility and the other is 2 miles away, a facility hosted by a local martial arts academy.  There are also three family child caregivers listed in the area, but none in the immediate community.  Kid’s Community College® will differentiate itself from its local competitors by offering an alternative to these traditional day care approaches. 

The Kid’s Community College® market strategy is based on providing an activity based learning environment that is used in many major colleges, universities and vocational centers around the nation. We will offer a community of professional caregivers with the credentials to not only enhance a child’s early social and motor skills, but to also teach them advanced studies in the arts and sciences found at institutions of higher learning.

Kid’s Community College® will be located in a new medical arts plaza, which has already shown a need and interest for child care services. The center currently has a pediatrics office and fitness center with clientele that has inquired about child care services. By forming collaborative partnerships with these businesses and becoming an active voice in the Lake St. Charles community, the college will position itself as the market share leader in child care services, development and educational offerings.

Sales Literature

A copy of the Kid’s Community College® informational brochure is attached in an appendix at the end of this document.

Fulfillment

The key fulfillment and delivery of services will be provided by the campus director, licensed campus instructors and staff workers. The real core value is the professional strength and industry expertise of the founder and silent partners, staff experience and certifications, education and hard work (in that order).

We will turn to qualified professionals for freelance back-up in tutoring and educational support, which will enhance the core values provided to the clients.

Since the company founder has an extensive Information Technology background, it’s only natural that Kid’s Community College® will employ and maintain the latest technology to enhance its curriculum, office management systems, payment processing and record keeping.

Future Services

Three additional campuses are planned in the rural Tampa marketplace over the next four years. Franchise start-ups will be offered in the Orlando, Miami and Jacksonville marketplace after 2 years of successful operation.

Market Analysis Summary how to do a market analysis for your business plan.">

Kid’s Community College® offers services which are vitally important in today’s fast paced, dual-income world. As an increasing number of families have become dependent on two incomes, the need for quality child care has skyrocketed. According to Florida Business Statistics, 84.6% of licensed child care facilities succeed and make a profit in their 1st year of operation.  Nationally, this number is 66.7%. 

Market Segmentation

Kid’s Community College® has a focus on meeting the local community need for child care services within the 10-mile radius of Riverview.  Students will be taken in flexibly on either a full-time or part-time basis.

Full-Time Working Couples

The college will establish a significantly large, full-time, regular client base in order to establish the healthy, consistent revenue base which will ensure stability of the business.  Customer and community relations are extremely important, as it is imperative to keep the parents pleased in order to keep their children in the college.

After School Care

Another large segment of the college’s business will be in the after school care market.  This client base will provide a higher profit for the college since instructor-to-student ratios are higher, and the students require more educational services, which are the primary focus of the college.  By offering tutoring, and advanced studies in technology, theatre, arts and sciences, the college will attract these profitable business clients, producing significant supplemental revenues.

Part-Time Workers/Drop-Ins

Part-time workers and Drop-Ins from the fitness center and locals businesses will comprise less than 1% of the revenues.  While this market is not a primary focus, sufficient flexibility to handle this market is important to the local ‘word-of-mouth’  marketing strategy.

Target Market Segment Strategy

The target market for Kid’s Community College® is full-time working couples. Referral marketing, direct-mail campaigns and community activity days will be the primary types of marketing strategies utilized. Maintaining and enhancing its reputation with families and in the community will be crucial in obtaining the planned market share growth of this target market.

Market Growth

According to US Census 2000 data, the population growth rate for Hillsborough county is approximately 2%, which is reflected in the market analysis summary. However, the Riverview area of Hillsborough County is experiencing a residential construction boom, yielding well over a 14.6% growth. This is supported by data obtained from the Hillsborough County Building Permits office and is included in the appendix of this plan. This suggests that more families continue to move into the Riverview area, thus becoming potential customers.

In our market analysis, we suggest a modest 6% yearly growth in the number of potential customers.

Market Needs

With inflation continuing to rise each year, the typical American family now requires dual or supplemental incomes. This trend has created a need for quality child care services. We do not see this model changing in the foreseeable future. In fact, based on the growth in the Riverview area, specifically the new Lake St. Charles and Village of Lake St. Charles communities, we expect the need to increase.

Market Trends

Currently there are more family caregivers than licensed child care facilities nationwide. However, this business model can’t keep up with the needs of the growing child care industry. In the family care giver paradigm, space is limited and quality of care is questionable – in many cases viewed as only slightly higher quality than babysitter services.

Service Business Analysis

Kid’s Community College® is in the child care services industry, which includes several models:

• Licensed Child Care Facilities: Business facilities that offer child daycare services.
• Family Child Care Homes: Individuals that offer child daycare services in their homes.
• Specific Interest Based Programs: Businesses that offer specialized instruction such as gymnastics, martial arts and athletics.
• Church Child Care Facilities: Religious organizations that offer child daycare services in their communities.

Competition and Buying Patterns

Price, service, certification and reputation are critical success factors in the child care services industry. Kid’s Community College® will compete well in our market by offering competitive prices, high-quality child care services, and leading-edge educational programs with certified, college-educated instructors, and by maintaining an excellent reputation with parents and the community in which we serve.

Main Competitors

• Weaknesses: May not appeal to customers of different religious beliefs. Unlicensed facility.  Non-accredited. 
• Weaknesses: Location – outside of middle-income market. Non-educational offering.  Building condition – prone to constant flooding. 
• Family Child Care Homes:
• Weaknesses: Capacity – only allowed a certain number of children. Non-professional stigma. 

Business Participants

• Specific Interest Based Programs: Martial Arts America
• Church Child Care Facilities: Christian Day Academy (not licensed).

Strategy and Implementation Summary

Kid’s Community College® will focus on two subdivisions: ‘Lake St. Charles’ and ‘The Villages of Lake St. Charles,’ which are new upscale community developments within a 2 square mile radius and boast over 900 new homes. 

The target customers are dual income, middle-class families who value the quality of education and child care provided for their children ages 4 months to 12 years.

Value Proposition

Kid’s Community College’s® value proposition is quite clear and quite easily distinguished from others in the market. We offer uniquely premium child care services, as measured by the curriculum and activities offered, experience and educational level of the instructors, community involvement and community college theme. 

Competitive Edge

We start with a critical competitive edge: there is no competitor in our market that is offering our concept, quality of educational program and child care services. Our educational approach is unique and we have a resource with over 25 years of child care expertise and over 17 years of technology savvy. Our positioning on these points is very hard to match, but only if we maintain the focus in our strategy, marketing, business development, and fulfillment. We should be aware that the tendency to dilute this expertise with bargain shopping could weaken the importance of our competitive edge, but we must continue to bolster our value proposition.

Marketing Strategy

Marketing in the child care industry depends largely on reputation and referral. At Kid’s Community College® that reputation will start within our community bolstered by our involved commitment to those we serve. 

Promotion Strategy

1.  Advertising –We’ll be developing our core positioning message: “A community college for kids!” to differentiate our service from the competition.  We will be using direct mail campaigns, pre-enrollment drives, and local community newspaper advertising to launch the initial campaign. 

2.  Sales Brochure –Our theme and curriculum will help sell the college to prospective clients. 

3.  Direct Mail –We will send quarterly direct mail campaigns to the housing developments in a 10-mile radius of the campus.  We will also offer monthly calendars for parents and the Lake St. Charles community, noting weekend family days and other open house approaches. 

4.  Community Involvement –We will be active in the Lake St. Charles community, sponsoring events at the community center for families and residents.

Marketing Programs

Catered open houses, parent survival days/nights, clubhouse pool parties and weekend movie matinees are but a few approaches we will utilize to reach out to our community.  We will also develop and maintain partnerships with local businesses that cater to the needs of children. 

Our pre-opening effort will include an application fee waiver, free children ID cards, T-shirts and a community block party sponsored and hosted by Kid’s Community College®.

Positioning Statement

For families who value the importance of higher education and quality child care services, Kid’s Community College® offers a great alternative to traditional child care services and specific interest based programs. Unlike those programs, KCC combines child care services with a modified collegiate level curriculum, just for kids!

Pricing Strategy

Kid’s Community College® must charge appropriately for the high-end, high-quality educational and care giving services we offer. Our revenue structure has to support our cost structure, so the salaries we pay to assure quality services must be balanced by the revenue we charge. 

We will be price competitive in the market we serve; however, we will not subscribe to the “low price leader” concept. The quality of our service will support the prices we charge.

Sales Strategy

Kid’s Community College® will sell its community college theme, services and offerings, separating itself from traditional daycare-only offerings.

We will be a one-stop shop for child care services, advanced learning and specialized program offerings.  We will also be active in the community, building a solid reputation with parents and the community.  By succeeding in these areas, we expect to begin seeing an operational net profit in month nine of the 1st year, while increasing enrollment by 32% monthly for the first 8 months and gradually thereafter, until our maximum allowed capacity is reached.

Sales Forecast

The following table and chart give a run-down on forecasted sales.  A detailed spreadsheet is also included in the appendix of this business plan. 

For the first eight months of operation, Kid’s Community College® has assumed a conservative enrollment due to the fact that school, aftercare and child care placement has already taken place for the school year and most parents will be comfortable with their current arrangements.  Consequently, we expect initial enrollment to be far less than anticipated future year levels. 

A sales increase of approximately 32% each month is expected until the start of the next school term, in August.  While this forecasted  increase seems large by industry standards, it is a good estimate based on initial enrollment.  Going into years 2 and 3, we expect that our presence will be known, convenience factor considered and we will then be a considered as a choice in August 2003.  In fiscal years 2004 and 2005, 80% and 90% of full enrollment is assumed respectively.

We expect to be open for business on January 1, 2003, starting with an initial enrollment of 13 students:

7 Full-time students at $115 each per week.  6 After-school students at $60 each per week and Drop-in revenue of approximately $100 per month. 

Sales Programs

Sales programs will include incentives for obtaining quarterly financial and enrollment goals, probationary period completion, passing county inspections and maintaining perfect attendance. 

Customer service awards will be provided for those employees who best exemplify the mission of Kid’s Community College® and exceed customers’ expectations. 

The accompanying table highlights important start-up milestones, with dates, completion status, responsible parties and budgets for each.  The milestone schedule indicates our emphasis on planning for implementation. 

What the table doesn’t show is the commitment behind it.  Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections. 

Strategic Alliances

As mentioned previously, Kid’s Community College® will form professional alliances with Impact Fitness to offer Drop-In child care services while parents work out.  We will also partner with Family Pediatrics to provide referrals of their existing customers.  A discounted rate will be offered in both cases.

Web Plan Summary

The Kid’s Community College® website will be the virtual business card and portfolio for the college, as well as its online “home.”

It will showcase the campus, curriculum and activity calendar for the school.  It will also provide for an Internet background of the instructors, online projects posted by the students, the campus newsletter and online enrollment. 

The Kid’s Community College® website will be simple, yet classy and well designed, but at the same time, in keeping with the latest trends in user interface design.  A site that is too flashy, or tries to use too much of the latest technology can be over-done, and may not be supported by all browsers. 

The key to the website strategy will be presenting a very well designed and informative Web presence that will market the Kid’s Community College® image, service offerings and community commitment.

Website Marketing Strategy

The Kid’s Community College® website will embody the mission of the college.  It will not only offer visitors the opportunity to “look around” the campus, but it will give them a good idea of the level of quality and service they can come to expect from the college.

Mostly informative in nature, the website will be a digital representation of our physical self. 

Development Requirements

The Kid’s Community College® website will be developed by the college founder, Timothy B. Kilpatrick, Sr., who has over 17 years of Information Technology experience.  Formation Technologies will host the site.

The site will be developed using Macromedia Dreamweaver 4, which will allow for support outside of Mr. Kilpatrick’s involvement.  The initial maintenance of the site will be done by Mr. Kilpatrick. 

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The opening management team of Kid’s Community College® will consist of the founder, a silent partner, a campus director and administrative assistant.

As the college grows, gradual investments in the instructional staff will be made over the next 3 years – beginning in June 2003 or as otherwise dictated by enrollment.

Organizational Structure

Kid’s Community College® depends on the founder, silent partner, Campus Director and VP of Education Operations for management in the following roles:

Management Team

Owner/President – Timothy B.  Kilpatrick, Sr.  The Owner/President will have overall fiscal responsibility, ensuring that the business is financially sound and attains its planned goals. 

• 17 years Executive Management (VP) and Budgeting experience
• Advanced degree in Computer Science
• Proven leadership and employee development ability
• Extensive experience with budgeting methodologies and strategic planning, including the Balanced Scorecard approach.

Industry Consultant – Carolyn Steverson.  The Industry Consultant will be relied upon for her industry expertise, providing valuable insight to rules, regulations and governmental programs that may benefit the college.

• 25 Year owner of Fat Albert Day Care Center
• Licensed child care facility owner
• Vast knowledge of Hillsborough County Child Care Licensing requirements and government supplemental programs

Campus Director – Candice Harris.  The Campus Director will be responsible for daily operations, curriculum oversight and management of all instructors, caregivers and tutors.

• B.S.  Degree in Education
• 2 years facilities administration/support experience with the University of South Florida
• 2+ years Regional Operations Manager
• 5+ years managerial/supervisory experience
• 3+ years grant writing, technical writing, workflow and process documentation experience

VP of Education Operations – Nitika Steverson-Kilpatrick

• Collegiate-level Public Relations education
• 5+ years customer service experience
• 8+ years child care industry experience (her mother owns Fat Albert Daycare)
• Extensive theatre and dance background

Management Team Gaps

The present team requires Child Care Development Associate credentials to support our value proposition and preparation for 2004 Florida child care requirements.  Currently, the Campus Director and Industry Consultant are the only members of the management team who have these credentials.

The Owner/President and VP of Education Operations will be enrolling in January 2003 to complete the six-month course required to obtain these credentials.  Education for these two can’t begin in this area until that time since it is a requirement that the college be open for business before the course work can begin.  Long-term, all full-time instructors will be required by the college (not the State) to obtain this credential.

Regarding financial administration, we will retain a strong CPA to help the owner guard cash flow.  While the owner is well versed in the worries of cash flow, he also has the sense to listen to reason and deal with constraints, as guided by the CPA.

Personnel Plan

The following table summarizes our personnel expenditures for the first three years, with compensation increasing from approximately $57K the first year to about $113K in the third.  We believe this plan is a fair compromise between fairness and expedience, and meets the commitment of our mission statement. 

The yearly figures in the second and third year are assumptions for the Lake St. Charles campus only.  The numbers reflect 100% enrollment, a full staff of instructors and a 5% payroll increase each year – which will include tuition reimbursement, pay increases, vacation pay, bonuses and state required certifications.

Financial Plan investor-ready personnel plan .">

• Adequate start-up capital is assumed, along with an SBA 5-year guaranteed loan.

Important Assumptions

The Kid’s Community College® financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions.  The monthly assumptions are included in the appendices.  From the beginning, it is recognized that total enrollment is critical, which is a factor that must be influenced immediately.  Interest rates, tax rates, and personnel burden are based on conservative assumptions. 

The most important underlying assumption is that there is a strong need for the business in the Lake St. Charles community. 

Key Financial Indicators

The following benchmark chart indicates the key financial indicators for the first three years.  We foresee a gradual growth in sales (enrollment) and operating expenses into the second and third year.

It is projected that the raw gross margin will remain stable for the first three years since expenses are relatively indirect in the service based course work industry.  Operating expenses increase gradually as enrollment increases.

Enrollment is very important.  We must maintain an average weekly enrollment of 34 students for fixed cost coverage. 

Break-even Analysis

For the break-even analysis, start-up monthly running costs assumptions are shown in the the table below, including a three person payroll, rent, utilities and an estimation of other running costs.  Payroll, at median market averages, was presented previously in the Personnel table. 

Based on these assumptions, the chart below shows the enrollment of students per month needed to break-even.  This represents about 46% of our allowable monthly enrollment based on state and county course work guidelines.

Projected Profit and Loss

Our projected profit and loss is shown on the following table, with sales increasing from the first year to the third. 

In years two and three, we are projecting full enrollment regarding cost of sales and gross margin.  The investment return in these years supports the goal of opening another campus at the end of the second year and begin the franchise offering by the end of the third year.  Profit from the additional campuses and income from franchising are not included in this business plan. 

The detailed monthly projections are included in the appendices. 

Projected Cash Flow

The following cash flow projections show the annual amounts only, significant for the first year mainly in the amounts projected in cash sales and payables. 

Cash flow projections are critical to the success of Kid’s Community College®.  The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other the monthly cash balance.  The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices. 

Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and a gradually sufficient healthy financial position.  The monthly estimates are included in the appendices.

Business Ratios

The following table shows the projected businesses ratios for our industry: Child Day Care services, SIC code 8351. Kid’s Community College® expects to maintain healthy ratios for profitability, risk, and return.

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Daycare business plan template + PDF

This guide presents a groundbreaking AI Business Plan Generator template, specifically tailored for entrepreneurs looking to start or expand their daycare operations. It's important to emphasize that the names and financial forecasts included in this example are solely for illustrative purposes, acting as educational tools to assist you in navigating your business planning journey. These examples are meticulously chosen to illustrate how you can personalize your own AI-generated Daycare Business Plan, enabling you to tackle challenges and capitalize on opportunities within the daycare industry.

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Daycare business plan sample

Executive summary, business description, market research and analysis, swot analysis.

• Organizational Structure and Management Team

Products or Services

Marketing and sales strategy, operations plan, financial projections, risk analysis.

Little Explorers Daycare, nestled in the heart of a bustling California community, stands as a model of excellence in early childhood care and education. Founded in 2020 by a visionary team led by Samantha Lewis, our state-of-the-art facility offers a sanctuary of learning and growth for children aged 6 months to 5 years. This executive summary provides an overview of our business plan, outlining our mission, operations, financial outlook, and the strategic steps we are taking to solidify Little Explorers Daycare’s position as a leader in the childcare industry.

Mission and Vision

Our mission at Little Explorers Daycare is to provide a safe, nurturing, and intellectually stimulating environment that fosters the holistic development of our young learners. We aim to be a haven where the natural curiosity of children is ignited, and their early learning milestones are achieved with joy and enthusiasm. Our vision extends beyond daycare; we strive to be the cornerstone of our community’s early childhood education, building strong foundations for a lifetime of learning.

Products and Services

Little Explorers Daycare offers both full-day and half-day programs tailored to meet the needs of working parents and guardians. Our services are distinguished by an innovative curriculum that includes language development, social skills enrichment, and introductory STEM activities. We pride ourselves on creating an educational experience that blends learning with play, ensuring that every child’s first educational journey is engaging and rewarding.

Market Analysis

The demand for quality childcare services in California continues to grow, driven by increases in dual-income households and the recognition of early childhood education's importance. Our target market includes working parents and guardians in the local area, a demographic that values the balance of educational programming and flexible childcare solutions. In response to these needs, Little Explorers Daycare offers a unique value proposition by combining high-quality care with an exceptional early learning curriculum.

Organizational Structure and Management

Our management team, led by Director Samantha Lewis, brings together expertise in early childhood education, business administration, and health and safety management. Alongside Jessica Clark (Assistant Director), Michael Thompson (Operations Manager), and Elena Rodriguez (Health & Safety Coordinator), the team is committed to upholding the highest standards of daycare operations. This dedicated leadership underpins our operational excellence and commitment to the well-being and education of the children we serve.

Little Explorers Daycare’s marketing strategy is centered on digital outreach, community engagement, and building trust through word-of-mouth recommendations. A robust online presence, coupled with partnerships with local businesses and schools, positions us to attract and retain clientele. Our sales strategy relies on personalized tours, open houses, and responsive communication, ensuring that the unique benefits of our programs are communicated effectively to prospective families.

Our financial outlook is optimistic, with projections indicating steady revenue growth of 12% annually over the next five years. By year three, we anticipate revenues of $750,000, with profitability margins expanding to 25% as operational efficiencies are realized. Investments in facility enhancements and program expansions are planned, funded by a mix of retained earnings and potential financing options. We are strategically positioned for the addition of a second location in year four, which is expected to double our revenue capacity by year five.

We have identified and developed strategies to mitigate various risks, including market competition, operational challenges, and regulatory compliance. Our comprehensive insurance coverages, stringent health and safety protocols, and proactive management practices form a robust framework for risk mitigation and operational resilience.

In conclusion, Little Explorers Daycare is poised for significant growth and impact in the early childhood education sector. Our commitment to excellence, combined with strategic planning and a dedicated team, ensures that we will continue to offer unparalleled care and educational services to the families we serve. Our business plan lays the foundation for a bright future, where Little Explorers Daycare stands as a beacon of learning, growth, and community engagement.

Little Explorers Daycare, nestled at the lively heart of 123 Childhood Lane, is uniquely designed to serve as a home away from home for children aged 6 months to 5 years. As a beacon of early childhood education and care in California, Little Explorers operates in the dynamic daycare industry, a sector pivotal to modern society. This industry not only allows parents and guardians to pursue their careers with peace of mind but also plays a crucial role in the foundational development of future generations.

Since its inception in 2020, Little Explorers Daycare has been driven by a singular purpose: to blend nurturing care with early education, creating a rich environment where young minds can explore, learn, and grow. Our journey began when a group of passionate educators, led by Samantha Lewis, recognized a significant gap in quality childcare and early childhood education services. Witnessing working parents' struggles to find satisfactory daycare solutions that also offered educational enrichment, Little Explorers was founded to meet these needs. The daycare was envisioned not just as a facility for child minding but as an educative oasis where each child’s intellectual, social, and emotional abilities could flourish.

Our mission, to foster a love for learning among the youngest members of our community, guides every aspect of our operations. Little Explorers is committed to creating a safe, engaging, and nurturing environment that supports each child's holistic growth. This mission is imbued in our comprehensive childcare and early education programs, designed to prepare our little explorers for a seamless transition into the formal schooling system.

Structured as a Limited Liability Company (LLC) within the state of California, Little Explorers Daycare combines the operational flexibility of a small business with the protective regulatory framework afforded by its legal structure. This choice reflects our commitment to providing a reliable service to our clients while affording us the stability to innovate and expand our educational offerings.

The long-term potential of Little Explorers Daycare is buoyant, driven by several key factors. Firstly, the continuous demand for high-quality daycare services, spurred by rising numbers of both parents entering the workforce, underscores the essential role of daycares in modern society. Moreover, as awareness grows of the critical impact of early childhood education on later academic and social success, parents increasingly seek out programs that offer more than basic childcare. Little Explorers stands at the vanguard of this emerging trend, offering specialized programs that set children on a path of lifelong learning and curiosity.

In the coming years, Little Explorers Daycare aims to broaden its impact through the introduction of innovative educational programs, expansion to new locations, and the adoption of technology in early learning. As part of our strategic plan, we also aim to deepen our ties with the local community, reinforcing our commitment to being a supportive partner for families. The business sees itself not just as a daycare provider but as a cornerstone of community development, contributing to the well-being and growth of local families.

At its core, the potential of Little Explorers transcends the boundaries of traditional daycare services. By intertwining care with education, and supporting working families, we are setting the stage for a brighter future. Our vision extends beyond the immediate horizon, aiming to enrich lives, empower parents, and inspire the next generation of thinkers, leaders, and, above all, lifelong explorers.

The daycare industry is a crucial component of the modern economic structure, enabling parents and guardians to participate in the workforce while providing a nurturing and educational environment for their children. The sector has seen substantial growth due to increasing demand from working families, coupled with a growing recognition of the importance of early childhood education. Current trends indicate an expanding market, with an annual growth rate of approximately 3%. This growth is in part driven by societal shifts, including increases in dual-income households and a greater focus on the developmental benefits of early education programs.

The target market for Little Explorers Daycare encompasses working parents and guardians of children aged 6 months to 5 years old. Within the geographical area of California, where Little Explorers is located, this demographic is significant and growing. The increasing participation of women in the workforce, combined with the rising number of young families moving to urban and suburban areas for employment opportunities, amplifies the demand for daycare services. The target market is further defined by parents who value educational development as a core component of childcare. This group's size and growth potential mirror broader demographic trends, including urbanization and workforce participation rates, positioning Little Explorers in a market with strong expansion potential.

Market needs and demands within the daycare industry are multifaceted. Parents and guardians seek reliability, safety, and a nurturing environment for their children. Additionally, there is an increasing demand for educational programming that supports early childhood development, focusing on language acquisition, social skills, and introductory concepts in math and science. These needs are driven by a heightened awareness of the importance of early learning stages in shaping cognitive and social abilities. Market trends also point towards a preference for facilities that offer flexible scheduling options, recognizing the varied work hours of modern families. The integration of technology in educational programming and communication between daycare staff and parents is another emerging trend, reflecting broader digital transformation across industries.

In the competitive landscape, Little Explorers Daycare faces established players like Tiny Tots Childcare, Bright Horizons Family Solutions, and Kiddie Academy. These competitors have diverse strengths, such as extensive networks and brand recognition (Bright Horizons), innovative curriculum (Kiddie Academy), and localized community engagement (Tiny Tots Childcare). However, weaknesses such as higher pricing models, less personalized care due to larger size, and outdated curriculum models present opportunities for Little Explorers to differentiate itself by emphasizing personalized attention, competitive pricing, and modern, innovative educational content.

Despite the promising market conditions, potential barriers to entry include stringent regulatory requirements, the high initial capital investment needed for facility setup and licensing, and the challenge of building a reputation in a market with established players. Compliance with local and state regulations is both a barrier and an ongoing operational consideration, requiring meticulous attention to policy changes and standards in health, safety, and educational content. The competitive environment demands differentiation and a clear value proposition to carve out market share. For Little Explorers Daycare, overcoming these barriers involves leveraging the unique qualifications of its management team, focusing on niche educational programs, and establishing strong community ties to build trust and brand recognition.

In conclusion, the daycare industry's robust growth and the specific demands of our target market represent a fertile ground for the expansion of Little Explorers Daycare. By addressing the nuanced needs of modern families and navigating the competitive landscape with strategic focus, Little Explorers is positioned to become a leading provider of childcare and early education services in California.

Little Explorers Daycare operates under a structured organizational framework designed to ensure effective service delivery, operational efficiency, and a nurturing environment for the children under our care. At the core of our organizational structure is a clear hierarchy that promotes smooth communication and swift decision-making processes.

The hierarchy is spearheaded by the Director, Samantha Lewis, who brings over 15 years of experience in early childhood education and a Master's degree in Education Management. Samantha is responsible for setting strategic goals, overseeing all operations, and ensuring compliance with regulatory standards. Reporting directly to the Director are the Assistant Director, Operations Manager, and Health & Safety Coordinator, each overseeing distinct aspects of the daycare's functioning.

Jessica Clark, the Assistant Director, holds a Bachelor's degree in Early Childhood Education and has been integral to curriculum development and staff training for the past 10 years. She collaborates closely with the Director to implement educational programs and manage teaching staff.

The Operations Manager, Michael Thompson, with a background in Business Administration, manages the day-to-day logistics, including scheduling, facility maintenance, and finance management. His role is crucial for the seamless operation of the daycare.

Elena Rodriguez, as Health & Safety Coordinator, utilizes her extensive background as a registered nurse to ensure the health and safety protocols are rigorously upheld, creating a secure environment for both staff and children.

On the staffing front, Little Explorers currently employs 10 certified childcare providers, including two educational program coordinators and seven childcare staff members. As we anticipate enrollment growth, we project the need to hire additional staff, including three more childcare providers and an additional educational program coordinator within the next year. Maintaining a low staff-to-child ratio is paramount to provide personalized and attentive care, necessitating our thoughtful approach to staffing as we expand.

In terms of human resources policies and practices, Little Explorers places a high premium on continuous professional development, offering regular training and workshops for all staff members. Our comprehensive benefits package includes health insurance, paid time off, and retirement savings plans, reflecting our commitment to attracting and retaining top talent. Performance evaluations are conducted bi-annually, serving as a basis for promotions, salary adjustments, and personal development planning.

Furthermore, Little Explorers engages a range of external advisors and consultants to ensure best practices across all operations. A legal advisor specializing in childcare licensing and employment law provides ongoing consultation to keep us abreast of regulatory changes. An early childhood education consultant assists in curating and updating our educational programs, while a health and safety consultant evaluates our protocols and training programs annually.

Our organizational structure, underpinned by a talented management team and supported by comprehensive HR policies and external expertise, forms the backbone of Little Explorers Daycare. This structure not only facilitates our day-to-day operations but also strategically positions us for successful expansion and the continuous delivery of high-quality care and education. As we look to the future, we remain committed to investing in our staff, refining our organizational practices, and relentlessly pursuing our mission of fostering a love of learning among the children we serve.

Little Explorers Daycare is dedicated to providing comprehensive early childhood care and education services that support the developmental needs of children aged 6 months to 5 years. Our services are meticulously structured to ensure a balanced approach to learning, play, and rest, in line with the latest research in early childhood development.

Detailed Description of Products or Services

Little Explorers Daycare offers full-day and half-day childcare services. The full-day service runs from 7:00 AM to 6:00 PM, while half-day options are available either in the morning or the afternoon. Each day is structured around a blend of educational activities, free play, nap time, and meal times, designed to promote cognitive, social, and physical development. Our early childhood education programs focus on foundational skills such as language development, basic mathematics, and social skills. These programs are tailored to the age group and developmental stage of each child, ensuring a personalized learning experience.

Unique Selling Points or Competitive Advantages

Little Explorers Daycare’s competitive advantage lies in our holistic approach to early childhood education. Unlike traditional daycares that focus primarily on supervision, we offer an integrated curriculum that fosters early literacy, numeracy, and emotional intelligence. Our unique selling propositions include:

1. Qualified Staff: Our team of educators and caregivers are certified and have specialized training in early childhood education. 2. Low Staff-to-Child Ratios: We ensure personalized attention and tailored instruction by maintaining lower ratios than the state-mandated guidelines. 3. Innovative Curriculum: We employ a curriculum that incorporates emergent learning principles, STEM activities, and bilingual education (Spanish/English), setting us apart from competitors. 4. Focus on Well-being: We prioritize children's physical and emotional well-being, offering nutritious meals prepared on-site and integrating mindfulness and yoga into our daily routine.

Development Stage

Currently, Little Explorers Daycare operates one facility, serving approximately 60 children. We are in the process of expanding our premises to accommodate up to 90 children within the next two years. Future plans include the introduction of an outdoor learning environment to enhance our curriculum with nature-based educational experiences.

Intellectual Property Status

Although childcare services do not traditionally rely on patents, Little Explorers is in the process of trademarking its name and logo to protect our brand identity. Furthermore, we are developing proprietary educational materials and assessment tools for our curriculum. Once finalized, these materials will be copyrighted, ensuring that Little Explorers maintains exclusivity over our innovative teaching resources.

Production Process

Our “production process” involves the careful planning and execution of daily schedules and activities designed to meet our educational objectives. This process requires ongoing collaboration among our staff to adapt our curriculum and activities to the evolving needs and interests of the children in our care.

Supplier Information

Our commitment to high-quality care extends to our choice of suppliers. We source our educational materials from reputable vendors known for their innovative and child-friendly products. Our meal ingredients are purchased from local, organic providers, ensuring that the children receive nutritious, well-balanced meals. We maintain strong relationships with our suppliers, ensuring the reliability and quality of the products and services we depend on.

In conclusion, Little Explorers Daycare stands out in the competitive landscape of childcare services through our commitment to early childhood education, unique curriculum, and focus on the holistic development of children. As we advance, we remain dedicated to enhancing our services, exploring new educational initiatives, and expanding our capacity to meet and exceed the expectations of the families we serve.

Little Explorers Daycare's marketing and sales strategy are crafted to effectively communicate our value proposition to our target audience: working parents and guardians of children aged 6 months to 5 years. Our strategy integrates a blend of digital and community outreach efforts, emphasizing our unique selling points such as innovative educational programs, a nurturing environment, and a skilled, caring staff.

Marketing Strategy

Our marketing strategy is multifaceted, focusing on online presence, community engagement, and building strong word-of-mouth referrals.

- Digital Presence: We will leverage a comprehensive digital marketing approach, including an SEO-optimized website that provides detailed information about our programs, staff qualifications, and testimonials from satisfied parents. Social media platforms like Facebook and Instagram will be utilized to share engaging content, including highlights from our daily activities, educational tips for parents, and promotional offers.

- Local Community Engagement: Partnering with local businesses, schools, and healthcare providers, we plan to participate in community events and sponsor child-friendly activities, thereby increasing brand visibility. Cross-promotional partnerships will place our brochures and flyers in strategic locations frequented by our target demographic.

- Referral Program: Encouraging our existing customer base to refer new clients through incentives, such as discounts or complimentary add-on services, capitalizes on the trust we've built with them and leverages their networks to expand our reach.

Sales Strategy

Our sales approach is centered on creating personalized experiences for prospective clients. The strategy includes:

- Open Houses and Scheduled Tours: Interested parents will be invited to visit the facility, where they'll meet with staff members, including the Director, to discuss their child's needs and our educational philosophy. This face-to-face engagement is crucial for building trust and understanding the unique value Little Explorers offers.

- Follow-up Communications: After initial visits or inquiries, prompt and personalized follow-up communications will be conducted via email or phone to address any questions and encourage enrollment.

- Enrollment Process Simplification: Making the enrollment process as smooth as possible by providing clear, concise information and support throughout the decision-making process.

Pricing Strategy

Pricing at Little Explorers is designed to be competitive yet reflective of the premium service we offer. We will implement a tiered pricing model based on the type of service (full-day vs. half-day), with discounts for siblings and long-term commitments to enhance affordability for families.

Distribution Channels

Our primary "distribution channel" is the direct service we provide to children and their families. We also consider our website and social media platforms as virtual channels, where parents can gather information, read reviews, and initiate contact.

Promotion and Advertising Plans

Promotional efforts will include targeted online advertising through Google Ads and social media platforms, aimed at reaching parents in our geographic locale. Seasonal promotions and open house events will also serve as key advertising opportunities, supplemented by participation in local community events that allow for direct engagement with potential clients.

Customer Service Policies

Customer satisfaction is paramount, and our policies reflect a commitment to exceptional service:

- Open Communication: Keeping lines of communication open with regular updates on children's progress and day-to-day activities.

- Feedback Mechanisms: Implementing regular surveys and suggestion boxes, ensuring parents feel heard and involved.

- Conflict Resolution: Establishing a clear, fair process for addressing concerns or complaints, ensuring timely and satisfactory resolutions.

Through this comprehensive marketing and sales strategy, Little Explorers Daycare aims to grow its customer base, maintain high levels of client satisfaction, and establish itself as a leader in early childhood education and care within the community.

Little Explorers Daycare’s Operations Plan outlines the daily operational workflow and procedures designed to ensure the consistent delivery of high-quality childcare and early childhood education services. Our approach prioritizes the safety, well-being, and developmental progress of the children in our care, efficiently manages resources, and maintains a welcoming and stimulating environment.

Operational Workflow

Each day at Little Explorers Daycare begins with the opening procedures which include facility safety checks, preparation of learning materials, and a review of the day’s activities by the staff. Following the arrival of children, the schedule is structured around a series of educational programs, playtime both indoor and outdoor, meals, naps, and individual learning sessions. The day concludes with a thorough review of the day’s activities, parent feedback during pickup, and facility cleanup.

The operational workflow is supported by our dedicated staff, including childcare providers, educational program coordinators, and facility maintenance personnel. Staff assignments are structured to ensure a consistent child-to-staff ratio, allow for personalized attention, and facilitate the smooth transition between daily activities.

Production or Service Delivery Processes

Our service delivery process begins with the enrollment of a child, involving a comprehensive assessment to understand the child’s needs, preferences, and developmental stage. This assessment informs the child’s integration into our programs, ensuring they are placed in activities and educational sessions that match their developmental needs.

Regular progress assessments are conducted to adapt educational content and care approaches as children grow and their needs evolve. These assessments involve direct observations, developmental screenings, and parent consultations, providing a holistic view of each child’s progress.

Quality Control Measures

Quality control is paramount in our operations. We adhere to state regulations and quality standards in early childhood education and care, employing only certified childcare providers and continuously training our staff. Our educational programs are regularly reviewed and updated based on the latest research in childhood education and feedback from parents and staff.

Internal quality audits are conducted monthly, focusing on safety protocols, the effectiveness of educational programs, child engagement levels, and parent satisfaction. The findings of these audits inform continuous improvement efforts.

Inventory Management

Inventory management involves regular monitoring and replenishment of educational materials, toys, and supplies necessary for daily operations. A designated staff member is responsible for inventory tracking, routinely assessing the condition and quantity of items, and placing orders for replacements or new resources to support our curriculum.

Supply Chain Management

Our supply chain consists of local and specialized suppliers for educational materials, food, and operational supplies. We prioritize suppliers who share our commitment to quality, sustainability, and reliability. Relationships with suppliers are managed through regular meetings, contract reviews, and performance evaluations, ensuring our supply chain supports our operational needs without interruption.

Facilities and Equipment Needs

Our facility is designed to foster a safe, engaging, and comfortable environment for children, including multiple classrooms, a play area, a nap room, and dining area. Keeping our facilities up-to-date requires ongoing maintenance and the occasional acquisition of new equipment. Future plans include expanding our outdoor play area and integrating new technology into our educational programs, necessitating investments in tablets and educational software.

Efficiently managing our operations ensures that Little Explorers Daycare consistently delivers the high-quality care and educational enrichment that parents expect. Our operational plan is designed to be flexible, allowing us to adapt to the changing needs of the children we serve and the dynamic nature of the childcare industry.

In this section of the business plan, we outline the financial projections for Little Explorers Daycare over the next three to five years. These projections are based on a comprehensive analysis of our market potential, operational efficiency, and strategic growth plans. Our goal is to provide a transparent and realistic view of our financial performance and potential, setting the stage for sustained profitability and growth.

Sales Forecast

Over the next five years, we anticipate a steady increase in sales revenue, with an annual growth rate of 12%. This projection is based on expanding enrollment as we enhance our programs and increase our marketing efforts to reach more families. By year three, we expect to reach full capacity with a projected enrollment of 90 children, contributing to a significant boost in sales revenue. The introduction of additional services, such as after-hours care and weekend programs, in year four is expected to further augment our sales.

Profit and Loss Projection

Our profit and loss projection indicates a gradual increase in net profits over the next five years. Initial years will focus on solidifying our market presence and may see tighter margins due to start-up costs and initial investments in marketing and facility enhancements. By year two, as enrollment stabilizes and operational efficiencies are realized, we expect to see an increase in gross margin. Operating expenses, including salaries, facility maintenance, and marketing, are projected to grow in line with revenue, maintaining a consistent ratio. Net profits are expected to rise from 10% in the first year to 25% by year five as a result of increased revenue and stabilized costs.

Cash Flow Projection

Cash flow projections show positive net cash flow starting from year one, further improving as operational efficiencies take effect and revenue from enrollments increases. Adequate cash reserves will be maintained to manage operational expenses and support facility expansions and improvements. Investments in curriculum development and staff training are planned, with the anticipation that these investments will yield higher enrollment and retention rates.

Balance Sheet Projection

The balance sheet projection reflects a strengthening financial position over the next five years. Assets, including cash, facilities, and educational materials, will grow proportionally with our business expansion. Liabilities, primarily consisting of loan repayments for initial start-up costs, will decrease as we prioritize debt repayment in our financial strategy. Equity is expected to increase steadily as retained earnings grow, reflecting the overall financial health and stability of Little Explorers Daycare.

Break-even Analysis

Our break-even analysis indicates that we will reach the break-even point towards the end of the first year. This analysis is based on fixed costs, variable costs per child, and the average revenue per child. Managing operational efficiencies and maintaining competitive pricing will be key to reaching our break-even point as forecasted.

Financial Assumptions and Considerations

Several key assumptions underpin our financial projections:

- Market demand for daycare services in our target area remains strong, with growth driven by increases in working parents. - Operational efficiencies will be realized through strategic staffing, inventory management, and cost-effective marketing. - Enrollment will reach full capacity by year three following a targeted marketing strategy and expansion of services. - Initial investments in facilities and curriculum development will enhance our competitive advantage and contribute to long-term profitability.

External factors, including economic conditions and regulatory changes, are also considered in our financial planning. We have instituted conservative financial practices to ensure resilience in face of economic uncertainties.

In conclusion, the financial projections for Little Explorers Daycare suggest robust growth and profitability over the next five years. Our strategic approach to business development, combined with a strong market demand and operational efficiencies, positions us well for financial success.

In any business venture, especially in a sensitive sector like childcare, understanding and preparing for potential risks is crucial for sustainability and growth. This section identifies key risks Little Explorers Daycare may face and outlines strategies to mitigate these risks, ensuring the long-term success of our daycare.

Market Risks

Market risks include fluctuations in demand, increased competition, and changes in parent preferences and regulations that govern daycare operations.

- Mitigation: Continuously monitor market trends and regulatory changes to adapt our programs and services in real-time. Investing in market research helps understand parent preferences and anticipate shifts in demand. Diversify service offerings (after-hours care, weekend programs) to attract a broader clientele. - Contingency Plan: Develop partnerships with local businesses and community organizations to maintain a steady pipeline of potential clients. Implement a robust marketing strategy to adjust to changes in demand or competition.

Operational Risks

Operational risks encompass staff turnover, accidents or health issues among children, and potential disruptions from facility-related issues (maintenance, safety).

- Mitigation: Implement stringent hiring practices and offer competitive salaries and professional growth opportunities to reduce staff turnover. Adhere to high safety and health standards, regularly train staff on emergency response, and maintain a clean and well-maintained facility. - Contingency Plan: Establish a qualified pool of substitute staff. Have agreements with local health professionals for emergency support. Maintain an adequate reserve fund for unforeseen facility repairs or upgrades.

Financial Risks

Financial risks involve managing costs, ensuring profitability, and securing funding for operations and expansions.

- Mitigation: Careful financial planning and management, including monitoring cash flow closely, implementing cost-saving measures, and maintaining a contingency fund. Develop relationships with financial institutions for potential financing options. - Contingency Plan: Diversify revenue streams by offering additional services such as family workshops, parental counseling, or educational resources. Responsive pricing strategies can adjust to market changes without compromising service quality.

Legal and Compliance Risks

Staying compliant with state and federal regulations for childcare facilities, including licensing, staff qualifications, and child-to-staff ratios.

- Mitigation: Employ a legal advisor to ensure ongoing compliance with all regulations. Regularly review and update policies and procedures to adhere to the latest laws. - Contingency Plan: Allocate resources for legal defense and compliance adjustments as necessary. Hold regular training sessions to keep staff updated on regulatory changes and implications for daily operations.

Health and Safety Risks

Risks involving the spread of illnesses, accidents, or injuries occurring on the premises.

- Mitigation: Implement and enforce stringent health and safety protocols, including regular health checks, a clean and safe environment, and immediate reporting and addressing of any incidents. - Contingency Plan: Establish partnerships with healthcare providers for emergency situations. Have a clear communication plan in place for notifying parents and relevant authorities about health or safety incidents.

Insurance and Legal Considerations

Comprehensive insurance coverage is critical to protect against potential liabilities. Little Explorers Daycare will maintain insurance policies covering health and safety liabilities, property damage, and staff-related issues.

- Legal Considerations: Regularly consult with a legal advisor to navigate the complexities of childcare law, employee relations, and contract management, ensuring all aspects of operations are legally sound.

In summary, while Little Explorers Daycare faces various potential risks, our proactive mitigation strategies and contingency plans are designed to navigate these challenges effectively. By staying informed, flexible, and committed to our core values and operational excellence, we can safeguard our business against unforeseen difficulties and ensure a secure and thriving environment for the children under our care.

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How to Start a Daycare Business Plan 

A Step-by-Step Guide for Childcare Planning with Tips to Help Entrepreneurs Start Their Daycare Business

Table of contents

• What Is Daycare and Why Should I Start One?
• Types of Daycare Providers
• Before Starting Your Daycare Business Essential Planning Steps
• Decision Journey Map Definitions

Assess Your Competition

How to start your daycare business.

• The Importance of an Execution Plan
• Execution Plan: Marketing and Sales

Form Your Daycare Business

Get familiar with daycare licensing requirements.

• Choose Your Insurance and Liability 
• How to Gain Enrollment at Your Daycare  
• Invest In Childcare Experience Software to Build Your Daycare with Less Work

Build an Expert-Level Daycare Business Plan: How to Get Started

The childcare industry is full of passionate, hard-working individuals. Entrepreneurs just like you are starting a daycare from the ground up. In this guide, we'll give you guidance and provide templates to build a solid daycare business plan.

What Is a Daycare Business and Why Should I Start One?

According to Forbes , daycare businesses were projected to have some of the fastest employment growth of all industries through 2020. Starting a daycare is a great opportunity for aspiring business owners who have a passion for early childhood education and child development.   

‘Daycare’ is an umbrella term for various childcare options (such as Montessori, head start programs, preschool, and many more) where parents and guardians drop their children off and leave them in your care to...  

• Socialize with other children in their age group  
• Learn basic fundamentals for future academic success  
• Reach important developmental milestones

Is Starting a Daycare Business Worth It?

Starting a childcare business or franchise is profitable, emotionally rewarding, and sustainable – the need for committed childcare entrepreneurs has never been greater.   

As of 2021, there were 856,238 childcare centers in the United States. The growing popularity of childcare centers comes from the demand. Parents will always need a form of care for their kids. Plus, there’s a necessity, especially beyond COVID-19, to socialize children in an environment that fosters development.  

Types of Daycare Providers 

• In-home daycare  
• Relative care  
• Preschool  
• Independently-owned daycare
• Daycare franchises  

The Difference Between Individual Centers and Franchises  

An independently-owned daycare often has an individual owner, a center director, and possibly a few other administrative staff members – along with teachers, cooks, bus drivers, etc. The owner is typically an individual who puts their own money and savings into opening the daycare, so all business rights (name, branding, etc.) belong to them.  

Alternatively, a daycare franchise falls under a corporate brand that has made an agreement with an individual to legally establish a business – using the company’s brand or trademark. In this scenario, the franchisee usually pays an initial fee, as well as ongoing royalties to the corporate franchisor. In return, the franchisee gains the use of a trademark, support from the franchisor, and the right to use the franchisor's system of doing business (including unique business policies and procedures, such as their method for advertising or enrollment). This model can be particularly beneficial for individuals who are passionate about early childhood education but don’t know how to get started on their own.  

For example, Kids R Kids and Kiddie Academy are both successful daycare franchise models in the United States. Each center operates similarly, has the same name (aside from a unique location number or city/county name), and the same branding as all locations fall under the franchisee umbrella.  

Daycare Franchise Terms

• A franchisor is a daycare company that provides its services, brand, and business operations to the individual. This may also be known as a ‘ franchise system ’.  
• A franchisee is an individual owner that is being supported by the company (franchisor). Buying into a daycare franchise makes you the franchisee.  
• The franchise refers to the legal agreement between the company and the franchisee.  
• The franchise disclosure document is the legally binding contract between the company and the individual.  

Proactive Tips Before Starting Your Daycare Business: Essential Planning Steps

1) conduct market research.

When it comes to starting your childcare center, relying on assumptions about your customers and competitors leads to wasted time, money, and effort. In contrast, businesses that conduct regular market research improve customer retention and are 76% more likely to see an increase in revenue.  

Market research is a data collection process that evaluates both consumer behavior, competitor habits, and industry trends to determine the viability of your center and build a foundation for future business operations.  

Prepare for success upfront by conducting thorough market research to understand your competition, improve communication with your target audience, and identify new market opportunities. This research should result in actual data that you can use to drive your business and marketing strategies as you launch your center.  

There are a variety of tools available to help you conduct market research - all from the comfort of your own office. Gone are the days of hiring team members with clipboards to approach consumers face-to-face. Survey Monkey, Attest, and Sprinklr all offer digital market research tools to help guide you through the process of understanding your audience, your competitors, and your industry.  

2) Determine Your Target Market

A market segment is a group of consumers that could potentially enroll at your childcare center. First, identify your daycare target market segments and determine how big each segment is.  

Be careful not to fall into the trap of defining your market as “everyone in your community.” This often leads to a ‘spray and pray’ approach to your marketing and as we know, a message for everyone really speaks to no one. When you generalize your advertising in favor of not isolating a potential consumer, you aren’t able to effectively communicate with your ideal customers – forgetting to recognize how your childcare center can appeal to them and their needs.  

A classic example is a shoe manufacturer. While it would be tempting for a shoe company to say that their target market is anyone who has feet, realistically they need to target a specific segment of the market in order to be successful. If they sell adult athletic shoes, they should be building their message to target athletes or individuals who enjoy staying active and exercising. Likewise, if you offer programs for children aged 6 months to 4 years old, you should prioritize advertising toward young adults in their 20s and 30s.  

A common strategy when identifying target markets is to use the TAM, SAM, and SOM approaches to look at market sizes from a top-down approach as well as a bottom-up approach.

Target Market Terms

This should include everyone you wish to reach.  

Example: Your entire local community.  

SAM: Your Segmented Addressable Market or Served Available Market 

This is a portion of the TAM you will specifically target because they align with your offerings.  

Example: Families with young children.  

SOM: Your Share of the Market 

This is the group of your SAM that you will realistically reach—particularly in the first few years of your center’s opening, as you may expand and grow your service over time.  

Example: Families with young children who make at least $65,000 each year in household income.  

For childcare organizations with multiple brands, schools, or programs - increasing revenue and keeping families happy is vital for growth. Your Millennial parents need a uniform, high-quality experience, regardless of location.

Standardizing business processes has a significant impact on time savings, costs, and most notably quality. In fact, standardization improves quality by   61.9% ,  on average. Create consistent  enrollment processes across all your franchise locations to ensure every family has a great experience and a positive association with your brand – leading to higher conversion success and profitability.   

To achieve consistency, your franchisees’ marketing approach and advertising material must follow all your corporate brand guidelines. Your organization should have a lead management system that supports your childcare franchise staff as they  guide families through   the decision-making journey  while also ensuring each location is delivering a consistent parent experience.  

3) Develop Your Buyer Personas

Before you begin writing your daycare marketing plan, make sure you’ve defined your market and buyer personas. Without a deep understanding of whom you’re speaking to, a daycare marketing plan will have little value.    

Audience personas allow you to dive even deeper into your target market and help you understand more than just who your customer is. These identities inform you how to communicate with your customers in a way that relates to their pain points and needs.  

Building a daycare business plan is no joke! Check out childcare business tips at a glance . 

When you understand your customer’s motivations, you can uniquely address their concerns and questions in your marketing materials - leading to increased tours, enrollments, and revenue.   

Start by listing out the various kinds of programs and classes you’d like to offer at your center.  

Then, determine who the primary decision-maker is and who the primary influencers might be in each scenario.   

Primary decision-maker : typically the individual(s) taking financial responsibility and remitting payment at your center.   

Primary influencers : are  also crucial in the purchasing process as they often have the ability to sway decision-makers.  

For example, imagine you’re promoting availability for Summer camp programs at your center. In this instance, the primary decision-maker might be the parent(s) or guardian(s) whereas the primary influencer would likely be the child who’s deciding what kind of activities they want to do this Summer.  

Audience Overview

List the audiences, personas, or segments that you want your center’s marketing and messaging efforts to reach.  

Select one audience from above and describe it to the best of your knowledge. Go beyond the traditional persona to consider motivations & behavior.  

Identify the key stages in your audience’s enrollment journey from beginning to end, knowing there may be multi-dimensional steps within a stage. Complete the table for each journey at the individual stages from the specific audience’s point of view.  

Decision Journey Map Terms & Definitions

Stage : This refers to each stage of the enrollment journey - awareness, consideration, action, and advocacy.  

Awareness : This is when a family is first learning of your center and your brand. They are researching multiple daycare centers and eventually send an inquiry to tour your facility or learn more.   

Consideration : During this stage, a family is touring your center and may be deciding between you and 1-2 other providers. Tip: Proactively equip your staff with key talking points so they can highlight your unique center features.  

Action : This is when a parent decides to register their child for care, pay fees, and is either placed on your waitlist or decides to enroll.  

Advocacy : After a successful, happy experience, this parent or guardian has become an advocate for your business. They’re telling friends and family about your center. This is vital for your word-of-mouth marketing strategy.  

Emotion : Identify what the persona is feeling at each stage of the customer’s journey. They may be anxious, curious, excited, or satisfied at various points. Put yourself in their shoes.  

Key Actions : What actions would a consumer take at each stage? For example, during the awareness stage, they may see your ad on Facebook, look you up on Google, or visit your website. In the consideration stage, they may call your center to get more information, look at your services online, or read reviews.  

Questions : What questions is the consumer asking in each stage? These are the questions you need to be answering for them in your advertising and marketing efforts.  

Competitive research helps you understand why customers choose your center over other alternative care options. This information provides you with insight into how your competition is marketing their services and over time, this can help you improve your own marketing campaigns and business offerings.  

Look up similar daycare centers in your area, and see what programs they offer, the type of facilities, their capacity, and their curriculum. Then, highlight the features that make your center stand out. Showcase your selling points in all marketing and advertising efforts.  Get started with these key questions...

• Who are my direct competitors and what do they offer?
• Who are my indirect competitors
• What does my competition's pricing look like?
• Do they offer promotional pricing or payment plans?
• What do they do best?
• What do they do poorly?

Download the guide to stay up to date on the latest industry news, trends and best practices for growing and managing your childcare business.

Download Your Guide

1) Build a Daycare Business Plan

A good business plan will guide you through each stage of starting and managing your childcare organization- including how to structure, run, and grow your new business.  

There’s no correct or incorrect way to write your business plan. What’s most important is that you identify your business objectives and use this document as a roadmap for how to achieve these goals.  

A strong business plan can help you recruit business investors, gain funding, or find new partners. Prospective investors want to feel confident they’ll see a return on their investment and your center’s business plan is the perfect tool to assure potentials that working with you — or investing in your business— is a smart and profitable decision.  

Write a Day Care Executive Summary (Daycare Business Plan Outline)

Although this section is the first thing people will read, it’s advised that you write it last, once you know the details of your business inside and out. At this stage, you will be able to articulate your business more clearly and summarize all the information in a succinct, concise manner.  

Ideally, your executive summary will be able to act as a stand-alone document that covers the key highlights of your detailed business plan. In fact, it’s common for investors or loan providers to ask for just the executive summary when they start evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation, and more in-depth daycare business plan financials.  

As your executive summary is such a critical component of your business plan, you’ll want to make sure that it’s as clear and concise as possible. Cover only the essential components of your daycare, ensuring your executive summary is one to two pages maximum. This section is intended to be a quick read that hooks your potential investors’ interest and excites them to learn more.  

The executive summary is a tell-all first paragraph that details...  

• The city and state of your center (you can decide on the exact location later)  
• A potential open date  
• A projected enrollment count (number of full-time enrollments)  
• Programs you plan to offer  
• Ages you hope to serve  
• A quick financial summary (based on grants, funding, and potential revenue from projected enrollments)

This may seem like a lot of information upfront, but it’s simply a high-level overview of your plan.   

Conduct an Opportunity Analysis 

The opportunity section of your business plan includes information about:  

• The problem that you’re solving within your community
• P rograms and classrooms   do you plan to market your center(s) to
• How your daycare facility fits into the existing competitive landscape  

Opportunity Analysis: An Example 

The opportunity analysis portion of your business plan is important for outlining what distinguishes your daycare from your direct and indirect competitors. It details how you can continue to expand and grow your center in the future.  

Use your previous competitive research to determine your daycare business’s competitive advantage and position. Analyze potential strengths, weaknesses, opportunities, and threats. 

Problem and Solution

Describe the problem that you are solving for your customers. Childcare centers are need-oriented, meaning your consumers have tangible pain points that you must resolve to be successful.   

So, what is the primary pain point for them? Maybe it’s that busy, working parents need a caring, safe place for their child during the day, or perhaps families are seeking after-school care options for their elementary-aged children, or maybe parents need 24-hour childcare options when they’re traveling or working odd hours.   

Now, assess how they are solving their problems currently and where there’s room for improvement. If there's only one childcare center in your community and it has no open seats, you could be the solution. Or maybe there are lots of existing care providers in your city but they’re expensive or have rigid pickup and drop-off times that working parents have trouble meeting. Or perhaps there aren’t any existing childcare businesses within a reasonable driving distance of where you’d like to place yours.  

Defining the problem you are solving for your customers is by far the most critical element of your business plan and is crucial for your daycare business’ success. If you can’t pinpoint a problem that your potential customers have, then you might not have a viable business concept.  

To ensure that you are solving a real problem, try conducting your own survey with potential customers to get a better understanding of their needs and validate that they have the problem you assume they have. Then, take the next step and pitch your potential solution to their problem.

Do they agree that it’s a good fit or does it seem to fall flat?  See how to come up with a strategic plan for your business.

The Importance of an Execution Plan When Opening a Childcare Business

The execution chapter outlines how you’re actually going to make your childcare center work . You’l l address your marketing and enrollment plans, operations, success metrics, and any key milestones that you expect to achieve.  

Execution Plan: Your Marketing and Sales Strategy

The marketing and sales plan section of your business plan details how you propose to reach your target market segments, how you plan on converting those target markets, what your pricing model looks like, and what partnerships you may need to make your center a success.   

Your Positioning Statement

Once you understand your audience, the first part of your marketing and sales plan is your positioning statement. Refer back to your value proposition to create a simple, straightforward sentiment, explaining where your company sits within the competitive landscape and what differentiates your venue from the alternatives that a customer might consider. This statement should be written for an investor or loan provider, rather than for your customer.  

One daycare business plan example - a positioning statement for a 24-hour childcare center in Austin, Texas may look like this:

“For the Austin-based family who is seeking childcare around the clock, Jenny’s 24-Hour Daycare is a safe option for young children with nutritional meals, best-in-industry sleeping arrangements, a clean outdoor play area, and highly trained care professionals. Jenny’s 24-Hour Daycare is the first center of its kind within 30 miles of the Austin metroplex and offers competitive pricing and tuition payment plans.”  

Use this formula to develop a positioning statement for your center: 

Your Mission Statement

Your mission statement is a scaled-down version of your positioning statement. This should be just one or two sentences that are geared toward your target consumer and describe what your business plans to accomplish. This statement usually includes company core values that explain your daycare’s purpose and how you serve your audience.  

For example, Cadence Education is a leading early childhood education provider with the mission of “providing parents with peace of mind by giving children an exceptional education every fun-filled day in a place as nurturing as a home .”  

Pricing 

Your positioning strategy will typically determine how you price your memberships and packages. There are some basic rules that you should follow when deciding on your price point:  

• Cost-plus pricing : For the most part, you should be charging your customers more than it costs you to host them at your center to ensure your venue is profitable and appealing to investors.  
• Market-based pricing : Look at what your competitors are charging and then price based on what your audience is expecting.  

Strategic Alliances

As part of your marketing plan, you may wish to collaborate with other organizations such as local camps, after-school programs, pediatricians, or even other childcare centers that don’t offer the same activities that you do.   

This partnership should benefit both of you – it may help provide access to a target market segment for your venue while allowing your partner to offer a helpful recommendation to their customers. If you’ve already established an alliance, it’s important to detail that in your business plan.  

The operations section is all about how your business works. This portion details the essential logistics such as staffing and sourcing and fulfillment. But remember, your goal is to keep your business plan as short as possible, so too much detail here could easily make your plan much too long.  

Milestones and Metrics

It’s critical that you take the time to look forward and schedule the next critical steps for your business. Investors will want to see that you understand what needs to happen to make your plans a reality and that you are working on a realistic schedule.

Then, determine how you will measure the success of each milestone by listing out the key performance indicators and metrics needed to see progress. These will be the numbers you monitor on a regular basis to evaluate the trajectory of your business. For example, you may look at how many families tour your center each week, how many children you enroll each month, or the amount of revenue you bring in per quarter.  

Company and Management Summary

The structure of your staff and teams sets your daycare up for success. In a new daycare center, there’s typically an owner (or franchisee), a center director, staff members, an enrollment or marketing team, accounting/administration, teachers, assistants, cooks, bus drivers, and janitorial staff. For example, the average small daycare business plan includes 8-10 fully licensed and/or certified early education teachers.

Financial Forecasts  

A typical financial plan will have monthly sales and revenue forecasts for the first 12 months, and then annual projections for the remaining three to five years. Break your sales forecast down into several rows, focusing on just high-level buckets at this point.   

Knowing how much your daycare will cost to open ahead of time can save you money, stress, and time. Daycare business plan start-up expenses vary by size, enrollment capacity, and miscellaneous needs.

Keep in mind that you can save on staffing costs and cut down on overhead with technology that helps to streamline your center’s operations. After all, 40% of Millennials prefer self-service over human contact when interacting with businesses.   

It’s essential that you find ways to enable families to book tours and enroll online without ever having to make a phone call to the center- reducing time spent on necessary-but-manual tasks for both your staff and inquiring families.  

Finally, articulate your profits and losses based on the data from your sales forecast and your personnel plan plus a list of all your other ongoing expenses associated with running your childcare center.  

See this Formula for Financial Forecasts

Step 1 : Average cost of tuition per child x your expected enrollments x 12 (annual revenue – assuming each family enrolls their child in one of your summer programs).  

Step 2 : Daycare businesses make around 16% profit from their overall revenue, after daycare expenses. Multiply your number from step 1 by .16 to get your predicted profit.   

Example : Let’s say you plan to charge families an average of $315 per week for childcare. With that, your goal is to enroll 60 students by the time your daycare center opens. Multiply $315 x 60 x 12 (annual revenue). This should come out to $226,800. Lastly, multiply your revenue of $226,800 by .16, which equals a net profit of $36,288 per year.  

Consider Various Funding Sources

Depending on your situation, there’s both loan and grant funding in childcare. Between state tax credits, loans, and grants – there are financing options for a variety of situations.  

Review Your Tax Deduction Options

Collecting tax credits is one way to receive an annual deduction on daycare costs. Based on your state, you can claim tax credits for...  

Collect Daycare Grants for Your Business

Often, startup costs for opening a daycare are high. Certain states and counties offer grants for new daycare businesses. There are several grant options, depending on your child and family details.   

For example, there’s a Preschool Development Grant Program and a Head Start/Early Head Start grant to provide funding that expands early childhood centers and developmental programs.   

Know Which Loans Are Available to Daycare Business Owners

While grants are a wonderful option for freshly opened daycare businesses, loans are occasionally easier to come by. They’re offered widely and often have fewer requirements to qualify. Check out a few loan examples for your daycare center.   

• SBA Loans , otherwise known as Small Business Administration loans, have exceptional rates, low interest, and flexible repayment options.  
• SBA 7(a) Loans are beneficial for covering pricier equipment funds and real estate. Loans of up to $5 million are available to daycares.  
• SBA 504 Loans – these are wonderful for business expansions and involve a loan for 50% of the project cost.  

Both Limited Liability Companies and Incorporations offer the significant legal advantage of helping to protect assets from creditors and provide an extra layer of protection against legal liability.  

The main difference between an LLC and a corporation is that an LLC is owned by one or more individuals, and a corporation is owned by its shareholders. In general, the creation and management of an LLC are considered simpler and more flexible than that of a corporation.  

Find the Right Vendors

Choosing the right suppliers for your business is essential. If your vendors aren’t reliable or don’t deliver quality products, your new center will struggle to attract families. As a childcare provider, you will likely need the following vendors at one point or another:  

• Electrician 
• Plumber  
• Food and Beverage Supplier 
• Educational Materials Supplier  
• Substitute Staffing Provider 
• Accountant  
• Childcare Licensing Consultant 
• Cleaning & Maintenance  
• Childcare Management System (CMS) 
• Customer Relationship Management (CRM) Software  
• Digital Payments Provider 
• Online Forms Software  
• Childcare Experience Software  

All states have different daycare licensing requirements. Generally, you'll follow the steps below.

1) Take a Course

Attend and complete a pre-application course (you’ll receive a certificate at the end – remember to save it).  

2) Submit Your Application

Submit your online licensing application. It'll ask for details about your business that were outlined in the executive summary.

3) Pay Fees

Pay your application fees. The fee depends on your center's capacity or the number of children you plan to enroll.

4) Complete Inspections

An inspection of your business property must be conducted.

5) Submit Your Service Payment

Register and pay for the inspection.

6) Conduct Background Checks

Submit background checks (this may also be an additional charge).

For More Information on How to Operate In Licensing Excellence, Listen to the Podcast Below

Choose Your Insurance and Liability

• Provide general liability – stay covered if your center has any property damage or injuries to third parties (children).  
• Abuse coverage protects your childcare business or franchise. If employees turn out to be abusive towards children, this policy covers defense costs and defends you against financial losses.  
• Professional liability insurance provides coverage for your business and workers if there is a neglect claim.  
• Hired and non-owned auto liability ensures everyone is covered if there is a pick-up/drop-off vehicle accident.  

*Liability requirements may vary by state.

How to Grow Enrollment at Your Daycare

From a business owner's perspective, the next step after successfully starting your daycare is to grow your center and gain enrollments.   

Begin by building a strong company culture, actively marketing your daycare center, and finding the right childcare technology to optimize your enrollment process and save time.  

See how to elevate your business plan for daycare with better waitlist management.

Create a Culture Where Staff Want to Work

A daycare center that stands out from the rest has happy staff members that want to work hard. Create a diverse employee culture that feels comfortable openly talking about situations. Provide support, patience, and room for growth. See more tips for creating a healthy and positive culture for your daycare staff .  

Market Your Center

A daycare marketing strategy starts with an achievable goal. Do you want to fill your enrollment spots? Do you want to build a waitlist? Should you focus on scheduling more tours or gaining new leads ?   

Choose a goal with measurable results. That way, you can track and analyze your marketing performance. Marketing helps families realize you're the best childcare center on the block. Promote your centers through...

• Social media (especially Facebook – 83% of Millennials have a Facebook account).  
• Landing pages and contact forms on your website  
• Listing directories  
• Email and text marketing campaigns  
• Referrals  
• Digital advertisements  
• Flyers  
• Word-of-mouth marketing  

Tip: childcare experience software that automates the reports you need helps you to save time and improve your return on investment (ROI).  For example, a  Source of Families report shows you where your leads are coming from to optimize your efforts.

Invest In Childcare Experience Software to Build Your Daycare with Less Work  

LineLeader is revolutionary childcare software that automates lead capture, follow-up, scheduling tours, and reports. Craft  beautiful, personalized marketing campaigns to continually grow your business.  Plus, easily manage your curriculum, attendance, and billing with automated center management

Get more from your marketing while saving franchisees 10 hours every week with LineLeader. Automate everything from lead capture and reporting to center management—all from one place.

Download your Guide

Resources to help you run your childcare business.

How LineLeader Enhances Personalized Marketing for Childcare Enrollment

10 Ways LineLeader Streamlines the Parent and Staff Journey in Childcare...

Adapting Enrollment Strategies Post-Pandemic: What Childcare Centers Need...

Additional resources.

For more information on specific childcare resources regarding marketing tools, campaigns, tips, and best practices - see below.

1. Learn hidden secrets no one tells you about starting a childcare business .

2. See how to operate in childcare licensing excellence to boost enrollment.

3. Beth Fiori of Tiny Treasures provides expert tips. check out ways to improve your business plan for daycare with enhanced waitlist management.

4. Discover tips to maintain the best childcare center on the block.

5. Gain advice for strengthening your daycare staff culture. 

6. Learn the benefits of building a daycare business plan , at a glance. 

LineLeader Video Resources

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 Plan

You’ve come to the right place to easily complete your daycare business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their daycares.

How To Write a Daycare Business Plan & Example

Below are links to each section of your daycare business plan template:

• Executive Summary – This is a brief overview of your daycare business plan. The executive summary should be no more than 2 pages long, with brief summaries of other sections of the plan.
• Company Overview – This is where you provide a business description, including your company history, business structure, and any pertinent information about the daycare center.
• Industry Analysis – The industry analysis describes the daycare industry, including market size and trends.
• Customer Analysis – This section of your daycare business plan describes your target market and potential customers. You will detail the demographics, needs, and wants of your target audience and how you plan to meet those needs.
• Competitive Analysis – The competition in your local area will be described here, along with how your daycare business will compete in the market.
• Marketing Plan – Your marketing plan will describe your daycare’s marketing strategy, including your advertising and promotion plans.
• Operations Plan – This section of your business plan describes how your daycare will be operated on a day-to-day basis. It may also include your long-term plans for expansion and the milestones you want to achieve to get there.
• Management Team – The management team section of your business plan should describe the experience and qualifications of your management team including the director, teachers, and support staff.
• Financial Plan – The financial plan section of your daycare business plan should include your financial statements, such as your income statement, balance sheet, and cash flow statement.

Next Section: Executive Summary >

Daycare Business Plan FAQs

What is a daycare business plan.

A daycare business plan is a plan to start and/or grow your daycare business. Among other things, a good daycare business plan will outline your business concept, identify your target customers, present research about the child care industry, detail your marketing plan, and provide your financial plan.

You can  easily complete your daycare business plan using our Daycare Business Plan Template here .

What Are the Main Types of Daycare Businesses?

There are different types of daycare businesses that parents can choose from for their child's needs. A traditional daycare center is most sought after by working parents since it provides child care during regular work hours. There are also in-home daycare centers that are licensed to provide child care in a home setting with fewer children. Other child care centers provide hourly care services by trusted babysitters or nannies and are operating on an as-needed basis.

What Are the Main Sources of Revenues and Expenses for a Daycare Business?

The primary source of revenue for a daycare business is its child care services.

Some key expenses for a daycare business is rent, salaries for staff, utilities and snacks expenses for the children.

How Do You Get Funding for Your Day Care Business Plan?

A daycare or child care center is typically funded through small business loans, personal savings, credit card financing and/or angel investors. This is true for a business plan for daycare or a childcare business plan.

What are the Steps To Start a Daycare Business?

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 industry and potential target market size, information on the services you will offer, marketing strategy, pricing strategies and detailed financial projections.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your daycare business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your daycare business is in compliance with local laws.

3. Register Your Daycare Business - Once you have chosen a legal structure, the next step is to register your daycare business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your daycare business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Daycare Equipment & Supplies - In order to start your chlidcare business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your childcare   business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising to reach your target audience.

Learn more about how to start a successful daycare business:

• How to Start a Daycare Business

Where Can I Get a Daycare Business Plan Example PDF?

You can download our daycare business plan PDF template here. This is a business plan template you can use in PDF format.

About PACEY

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• Starting out
• Offer what you can afford
• My evolving business
• Getting to grips with policies and procedures
• Growing together in partnership
• Delivering 30 hours flexibly
• Managing income in a term time setting
• Delivering 30 hours sustainably
• 30 hours and partnership
• Working with your husband as your assistant
• Kim's story
• How to thrive as a childminder
• Taking on an apprentice
• Business Growth
• Championing childminders locally

Business planning examples

• Career change to childminding
• Efficiency by recycling
• Working in partnership with my local school nursery
• Third Door, a different approach to providing childcare
• Busting the paperwork myths
• Extending my business to offer 30 hours
• Marketing your business
• Working towards your strengths
• Business planning
• Growing your business
• Saving time and money
• Childcare funding
• Partnership working

There are more than 20 childcare providers within a 10 minute radius of our setting so gaining a competitive edge is really important in order to sustain our business. The SWOT analysis helped us identify what would make the most difference to our parents and children, and help us grow our business.

Our USP is being a flexible parent-friendly setting. By spending time planning the business and the financials we are able to offer a unique service which sets us apart from the competition.  

A SWOT analysis is not just useful at the outset when you starting a business – we use it as a business planning tool, reviewing it year on year, alongside parent questionnaires. By having this annual review it helps us prioritise and ensure that our offering is the best it can be, and responds to parental feedback. 

I would always advise any childminder settings to play to their own strengths. No setting is the same. Find your own uniqueness and capitalise on it. Don’t try and be something you are not. Spend time thinking about where you want the business to be before you make any rash decisions. By planning ahead you can make a mental shift before you physically make any changes.

One of the biggest challenges we faced was the cultural shift – from my wife working on her own to then becoming an employer. Delegating tasks can bring with it feelings of lack of control. But by taking small steps and with mentoring and training it is possible to make that shift.

Overall it is most important to maintain quality. As your business grows and numbers increase it is important to make sure that you don’t lose sight of the fact you offer a unique high quality home-based service. Keep focused on that USP and keep listening, growing your business is a journey of exploration but make sure you are always being true to yourself.

Sanjay's top tips: 

• Manage your cash flow. It isn’t just about profit because if you don’t have parents that pay on time your business won’t work, so focus on getting the cash flow right before profit
• Don’t ever give up on the bigger picture. Continually challenge yourself and think about what you could do better
• Conduct a SWOT analysis on an annual basis. This will ensure your offering is innovative and the best it can be

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PACEY is the Professional Association for Childcare and Early Years. Formed in 1977, we are a charity dedicated to supporting everyone involved in childcare and early education to provide high quality services, information and advice to children, their families and carers.

Across England and Wales we provide training, expert advice, help and peer support to practitioners and practical and impartial support and information for families and carers and those advising them. We represent the views and experiences of practitioners and champion their vital role in helping prepare children for a bright future.

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Day Care Business Plan Template

•   Day Care Business Plan Template (Microsoft Word)  –  $47.00
•   +Add Excel Worksheet (Recommended)  –  $35.00
•   +Add PowerPoint Template and 4 Funding eBooks  –  $65.00
•   +Add Business Startup, Finance, Marketing Documents 781 Templates  –  $185.00
•   +Add Operational, Employee and Policy and Procedure Templates  –  $35.00

How to get funding for your Day Care business!

“Here’s the ‘Perfect Solution’ to getting your Day Care business funded quickly…even if you don’t have a clue on how to write a business plan and don’t have the budget to pay a professional to do it!”

If you want to get your Day Care business organized and funded then here’s the perfect solution:

Did you know that a well-written and researched business plan is the key to getting funding for your Day Care business?

But most entrepreneurs neglect this aspect of their startup.

That’s usually because they are not knowledgeable enough to write a business plan on their own.

Or do not have the budget to pay a professional business plan writer.

But if you’ve ever wanted to start a Day Care business and you need to write a business plan to get funding then our Hybrid Fusion Business Plan Template is for you .

Our Hybrid Business Plan Template is not just high quality, in-depth and researched, but also a business plan that has examples for you to insert your own market and business specifics into.

A Day Care business is a great business for those interested in entrepreneurship.

Starting a daycare business can be a rewarding and practical venture. Firstly, there is a constant demand for reliable childcare services as more parents enter the workforce and seek trustworthy care for their children. Secondly, running a daycare lets you make a difference in kids’ lives by giving them a safe and fun place to learn and play. Daycare businesses offer flexibility in terms of operating hours and services, so you can work with parents’ schedules. Overall, starting a daycare is a rewarding way to help both kids and their families in your community.

And with our business plan template, you’ll be able to seek funding from investors and be up and running in no time.

With modifications (Like the name of your company and owner’s bio, market, financials, company images and location specifics) you can customize this business plan for your exact needs.

Here’s why a free business plan template can risk your chances of funding:

Lenders and investors see thousands of business plans and they know when you’re using a generic free template because the “Wording is just not right.”

You can have the best idea for your venture and pitch it to them perfectly, however when you leave and they review your plan what will it really say about you?

And free isn’t really free if it costs you your funding .

Why leave the future of your business to chance?

Our business plan templates are written for your specific market and references are included.

Start your business off the right way with our comprehensive Hybrid business plan template.

As part of this package, you will receive our Day Care business plan template, which contains the following sections:

• Executive summary
• The enterprise
• The business concept and need
• Industry/market overview.
• Growth strategy and implementation summary
• Management plan
• Risk factor
• Use of proceeds

Click here to view sample pages of this exact plan.

Depending on which version of the business plan options you purchase (more on that in a moment), you’ll receive the following:

42 page Day Care business plan template with references.

• This Day Care business plan template will be delivered via digital download in fully editable Microsoft Word and includes a Day Care business pre-written example text, general industry research, references, and narrative already completed for you.
• Red instructional text above each section is included to let you know what to insert in that section. In some areas, you can just add your information, in others you will need to use the example text as a basis to write your own business specifics such as what sets you apart, your local market, your business team, etc.

Click here for screenshots of the plan you will be receiving.

Day Care Financial Template in Microsoft Excel (recommended )

This Excel template will allow you to enter financial data specific to your business and will produce proforma financial statements for use in your business plan. The worksheets (Set-up, Start-up, Sales, Headcount, Inventory, Operating Expenses, Capital Budget, Equity & Debt, and Amortization Schedule) contain instructions, questions for you to answer, and boxes (cells) for data entry. Cells in which you are to answer questions or enter data are yellow. Purple cells contain formulas that will be calculated automatically.

Click here for screenshots of these documents.

Business Funding Package with PowerPoint and 4 eBooks

(A must-have if actively seeking investment). Includes a business Microsoft PowerPoint slideshow template “Pitch Deck” to show lenders and investors your concept at a glance. It includes 12 slides with instructional text for you to insert your specific business images and information into.

This funding package also includes the Funding eBook bundle to educate you on your funding options and how to best present your business concept. These 4 eBooks guide you through individual interventions, second-party arrangements, corporate funding options, government interventions, managing business cash flow, quick start funding overview, exit strategy, common mistakes to avoid when pitching your concept, and much more.

Business Startup, Finance and Marketing Templates to show investors that your business is prepared to launch

Business Assessment Documents. Vital documents to make sure you are prepared for your venture. Includes: Business Plan Guidelines, Strategic Planning Checklist, Trend Analysis Checklist, Executive Summary Template, Market Study Outline and Business Analysis Worksheet. 6 Documents to help get you organized.

Business Startup Documents. Essential Documents to Help Launch Your Venture. Includes: Board of Directors Documents, Confidentiality Agreements, General Administration, Basic Financial Checklist, Franchise Feasibility Test, Startup Cost Worksheet, Franchise Comparison Worksheet, Strategic Management, Organization-Wide Goals and much more. 66 Documents to help you get started.

Raising Capital Documents. Practical documents to help you get started raising capital. Includes: Government Grants and Program Worksheets and Guide, Loans and Borrowing Documents, Investment Analysis Summary, Bank Loan Request Sheet, Loan Application Review Form, Loan Calculator, Pledge of Shares of Stock, General Continuing Guaranty, Due Diligence Checklist, Promissory Notes, Investment Analysis Summary, Term sheet for potential investment and much more. 51 Documents to help you obtain funding.

Online Startup Documents. Key documents to establish your online presence. Includes: Advertising and Marketing Online documents, Confidentiality Agreements, Content and Copyright Agreements, Hosting Agreements, Software and License Agreements, Website Development Agreements, Website Notices and Checklists and much more. 72 Documents in total to help you online.

Finance and Accounting Documents. Vital documents for your finance and accounting business needs. Covers: Banking, Bookkeeping, Buying and Selling of Shares, Financial Statements, Government Grant Programs, Insurance, Investments, Investors Relations, Invoices and Billing, Loans and Borrowing, Raising Capital and much more. 169 Documents in total to help with your business finances and accounting.

Employment and HR Documents. Key documents you need as you grow your venture with employees. Covers: Compensation and Benefits, Contractors and Consultants, Employee Records, Employee Reference Letters, Firing and Termination, Hiring Employees, Insurance, Managing and Motivating Employees, Policies and Documentation and much more. 267 Documents in total to help manage your workforce.

Sales and Marketing Documents. Crucial documents as you grow your venture with marketing and sales. Covers: Addressing Complaints, Customer Relations, Market Analysis, Purchase orders and price quotes, Sales and Marketing Management, Sales Agreements and Contracts, Sales letters and much more. 142 Documents in total to help grow your venture.

Advertising and Marketing Online Documents. Documents to get your name and brand online effectively. Includes: Affiliate Program Agreement, Agreement for Internet advertising services, Co-branding agreement terms and provisions checklist, Co-branding agreement, Free linking agreement, Press release template, Website Cross Sponsorship Agreement, Website Linking Agreement. 8 Online Marketing Documents to help develop your online presence.

Business Operational Plan, Employee Handbook, and Policies and Procedures Templates

Show your investor that you are ready to launch by completing these vital foundational documents prior to starting. They include:

Operational plan template for you to describe your business’s mission and operations, including information on your strategic content, company objectives, key performance indicators, key assumptions and risks, goals, and more.

Employee handbook template to create for your current or future employees explaining your policies and what you expect from them and what they should expect from you.

Policies and procedures template (an addition to your employee handbook) to communicate the culture of your business, your standards on employment, schedules, compensation, benefits, hiring policies, and other workplace policies to protect not just your business but also your employees.

*These are templates for you to complete as operations and employee requirements vary per business. Please view the sample pages.

(Delivered in digital Microsoft Word format)

That’s a lot of information! But don’t be overwhelmed. We have offered each item individually so you can choose what you need or all of them. Scroll down to learn more.

See what our customers are saying about our business plan templates.

“The plan had some great points that were very beneficial and important to my business. I hope other clients are able to see the value you are able to provide in their business plans, just like myself. I would highly recommend you to other prospective entrepreneurs. It’s been a pleasure and I look forward to execute my business plan.”

Kristina K.

“Honest Business Plans has given me the tools and inspiration to pursue my business venture. Not only was the template helpful in helping me form my business idea it really explains how it would benefit my company.”

Mikio VanDrunen

“Shawn has been a tremendous help to me and my business ventures. His templates were extremely helpful to me with regard to moving my business from the conceptual phase to something that could be successfully implemented. Furthermore, his business plan example and associated materials allowed me to organize and structure my venture according to how I wanted to run and grow my business. I also found the process much easier with the materials (as opposed to doing everything on my own), since they provided a solid blueprint for my business.   I would recommend Shawn and his team to other entrepreneurs and business owners without hesitation. They have been great to work with!”

Kevin Cisney

The best part about our plans is that the TIME-CONSUMING parts are DONE for YOU.

Our Hybrid Fusion Business Plan Templates save you time as most portions are already completed for you, including the general narrative, market research and format are already researched and written for the Day Care industry.

What makes our Hybrid Fusion Business Plans Different?

Here are just a few reasons why our Honest Business Plan Template is the best solution to begin planning your venture:

• Formatted layout for investor and lender use.
• A full narrative written from scratch for your industry.
• Red instructional text guides you through each section of the business plan, explaining what each section is about and what to include, ensuring a polished, professional plan.
• Written in a persuasive way to show investors the true potential of your venture.
• Hybrid Fusion Cross between a business plan sample and template to make customization more realistic.
• Simple Pricing: Straight forward pricing no long-term subscription or obligation. Purchase and instantly download and edit.

Click here for sample pages of this Day Care business plan template.

But we don’t want to sell you on EASY.

We want to make sure you obtain a researched market-specific business plan template you are able to build a realistic and truly investor-friendly business plan upon.

Real investors and lenders see 3 to 15 business plans a day.

With the big “Corporate” business plan template companies luring you in with an “Easy” business plan those very lenders see right through them.

With our plan templates, you will have something extensive, unique as well as researched to set you apart from the “Corporate” generic business fill-in-the-blank plan templates.

Know exactly what you will be receiving by viewing our sample pages for this business plan here.

Do it yourself and not only save but learn more about your business as well.

• Each complete plan takes us about 160 to 200 hours to research , write and create and is written in a way to make it easy to understand yet investor friendly. A professional business plan writer would charge a minimum of $650 to create a unique business plan of our length.
• This is the viable solution you have been looking for. A comprehensive template with full narrative specifically for your industry. Our business plans are investor friendly, and offered at a fraction of the cost of a professional business plan writer.
• We stand behind our quality. Our plans are in-depth and researched. If you are able to find a more researched, referenced, comprehensive, Day Care business template for the Day Care industry for a lower price we will refund your money.
• Don’t believe the MYTH of “Fill in the blanks” business plan templates. Each venture is unique as is each market. If someone promises you a “fill-in-the-blanks” template or automated way to create your business plan then you are effectively getting a generic plan. Our hybrid business plan offered here is researched written and formatted specifically for the Day Care industry.
• Before purchasing, please understand the usage of this document (Yes, you will have to put in some work)  we are honest about what we offer and provide screenshots of the documents you will be receiving so there is no misunderstanding.

A customized or turn-key document from a reputable professional business plan writer starts at $950 and a cost upwards of $5,500 or more (A Google search will show you this).

We are attempting to help you get started on a budget hence we are providing our extensive hybrid fusion business plan documents as a starting point for you to build your plan upon.

30-DAY MONEY-BACK GUARANTEE.

Like any business, there are risks. I am so confident that this is the most comprehensive Day Care business offering out there that if you are able to find a more comprehensive Day Care business plan package that includes a 35+ page business plan template and matching Excel worksheet for a lower price, I will refund your money. Click here for terms and conditions.

*PLEASE NOTE THAT THIS PRODUCT IS NOT A TURN-KEY SOLUTION, BUT AN EDITABLE TEMPLATE THAT IS MEANT TO SERVE AS A FOUNDATION/BASIS/OUTLINE ON WHICH YOU CAN DEVELOP YOUR OWN PROFESSIONAL DAY CARE BUSINESS PLAN WITH SOME EFFORT.

THE BEST TIME IS NOW

There is never a better time than the present to start your Day Care business as more parents are seeking trustworthy childcare options to support their work commitments, creating a consistent need for your services in the community. The resources we provide will help jump-start you. However, in the end, only you can choose to make a difference in your life.

*This is a Business Plan Template/Outline in Unlocked and Editable Microsoft Office and should only be used as a starting point/foundation to write your own plan. You will need to edit it for your needs.

CHOOSE THE OPTIONS THAT WORK BEST FOR YOU. SSL Secured Checkout via PayPal or Credit Card. Your future Day Care customers are waiting.

Order Now Below

Disclaimers (Please read prior to purchase)

-This is an editable example business plan template, which is in between a business plan template and a sample. This is NOT a complete Turn-key business plan. Modify and use this Hybrid business plan template as a foundation to create your own plan. View Sample pages to see exactly what you will be receiving.

-We are unable to make any changes to this plan or excel sheet or pitch deck or documents for you.

-By purchasing these documents, you agree not to resell, copyright, or post them online.

-Digital Download for Microsoft Office XP 10.0 in Windows XP and higher versions.

-Will also open in Microsoft Office for Mac, however, some formatting issues may be present and will need to be corrected. For this reason, we are unable to guarantee 100% direct compatibility with Microsoft Office for Mac.

-This is a large Microsoft Word file. Please keep in mind that we are not responsible if your computer processor is unable to render them quickly. We have tested these files on multiple MACs and PCs and they render fine on our end. However, we are unable to account for or guarantee how the files will perform on your end due to various extensions and operating system performance. Although rare, if you are having rendering issues you may need to attempt to open and work on the Microsoft Word files on an alternative, newer or faster computer.

The best time to start is now. Purchase with confidence. SSL Secured Checkout and 30-Day Money Back Guarantee if you are able to find a more comprehensive and up-to-date plan and funding package combination for a lower price point.*

Thanks for scrolling down to the bottom of this page! Whether you purchase from us or not I wish you much success in your Day Care venture!

How to Write a Business Plan for Daycare and Preschool

• brightwheel
• Running a business

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.

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.

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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Daycare Business Plan Template & PDF Example

• August 27, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful daycare. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your daycare’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a daycare business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your daycare business concept into reality. Let’s dive in!

Our daycare business plan is thoughtfully developed to encompass all crucial aspects required for an in-depth strategic plan. It outlines our facility’s operations, marketing strategies, market dynamics, competitors, management team, and financial projections.

• Executive Summary : Offers an overview of your Daycare’s business concept, including the innovative learning environment, market analysis , management team, and financial strategy.
• Building & Location: Describes the Daycare’s modern, child-friendly design, its central location, and amenities such as indoor and outdoor play areas, sensory rooms, and nap zones.
• Pricing & Educators: Lists the services provided by your daycare, including full-time and part-time care options, the educator-to-child ratio, and pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the Daycare market.
• Key Trends: Highlights recent trends affecting the childcare sector, such as the increasing demand for early childhood education programs and technological integration.
• Key Competitors: Analyzes main competitors nearby and how your daycare differs from them, focusing on aspects like curriculum quality and additional services.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis tailored to the daycare business.
• Marketing Plan : Strategies for attracting and retaining customers, including branding, local advertising, online presence, and community involvement.
• Timeline : Key milestones and objectives from the initial setup through the first year of operation and beyond.
• Management: Information on who manages the daycare, detailing their roles, experience in early childhood education, and business management.
• Financial Plan: Projects the daycare’s 5-year financial performance, including revenue projections, profit and loss statements, cash flow analysis, and balance sheet, aiming for significant growth and profitability by the target year.

Daycare Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary serves as the gateway to your daycare business plan, providing a succinct overview of your daycare center and its offerings. It should highlight your market positioning, the variety of child care and educational services you provide, its location, size, and a sketch of daily operations.

This section should also delve into how your daycare will integrate into the local community, including an analysis of the number of direct competitors in the area, identifying who they are, along with your daycare’s distinctive features that set it apart from these competitors.

Moreover, you should incorporate details about the management and co-founding team, outlining their roles and contributions to the daycare’s success.

Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be included here to offer a clear vision of your daycare’s financial strategy.

Daycare Business Plan Executive Summary Example

Business Overview

In the  business overview  section of a daycare’s executive summary, it’s vital to present a comprehensive picture of the daycare’s operations.

This includes the facility’s location, size, amenities, the qualifications of the educator team, child capacity, and pricing structure. Key aspects to highlight are the features that contribute to a nurturing and educational environment, such as indoor and outdoor play areas, sensory rooms, and nap zones. The qualifications and number of educators are crucial for ensuring quality care and education.

This section should also outline the daycare’s capacity to accommodate children and the  pricing strategy , reflecting its commitment to providing accessible and high-quality childcare services.

Example: Little Explorers Daycare, located in [Location/City/Neighborhood], spans 5,000 sq. ft. and offers a stimulating learning environment with dedicated play and learning zones. The daycare boasts a team of 5 certified educators, ensuring a low child-to-educator ratio. Licensed for up to 60 children, the facility provides flexible childcare options with competitive rates, catering to the needs of the community.

Market Overview

The  market analysis  section should include an assessment of the childcare industry’s size, growth trends, average costs, and key  market trends .

This part of the executive summary is crucial for understanding the industry’s dynamics and the daycare’s position within it. Trends such as the rising demand for early childhood education programs and employer-sponsored daycare benefits are important to highlight, as they indicate evolving consumer preferences and potential growth areas. An analysis of the  competitive landscape  is also vital for identifying the daycare’s unique selling points and potential areas for differentiation.

Example: The US childcare market, valued at $60.4 billion, is characterized by its essential demand for quality services. With approximately 600,000 daycare centers nationwide, Little Explorers Daycare competes in a robust market. Its focus on specialized curriculums and child development tracking sets it apart in an industry where differentiation is often based on curriculum quality and additional services.

Management Team

This section introduces the key figures leading the daycare, highlighting their educational background and experience.

The management team’s expertise in early childhood education and business management is critical for the daycare’s operational success and strategic direction. This part of the summary should instill confidence in the team’s ability to provide high-quality childcare and effectively manage the business.

Example: The Director, a co-founder with a Master’s in Early Childhood Education and 10 years of teaching experience, oversees the educational program. The Business Manager, also a co-founder with an MBA and expertise in entrepreneurship, handles the operational and financial aspects of the daycare.

Financial Plan

The financial plan overview provides insight into the daycare’s financial goals and projections.

This section outlines the revenue targets and profit margins, reflecting the daycare’s financial health and potential for profitability. It includes specifics such as aiming for $1.9 million in yearly revenue and an 18% profit margin by 2028.

This section should demonstrate how the daycare plans to achieve these financial objectives through strategic enrollment growth, operational efficiency, and quality service provision.

Example: Little Explorers Daycare aims to achieve $1.9 million in annual revenue with an 18%  EBITDA  margin by 2028. This goal will be supported by expanding enrollment, maintaining high standards of childcare, and implementing efficient business management practices to optimize costs and enhance revenue.

For a Daycare, the Business Overview section can be effectively divided into 2 main components:

Building & Location

Briefly describe the daycare’s facility, focusing on its safety, child-friendly design, and the stimulating environment that it offers to children.

Mention the daycare’s location, emphasizing its accessibility and the convenience it brings to parents, such as proximity to residential areas or ease of drop-off and pick-up. Explain why this location is beneficial in drawing your target clientele, particularly parents who prioritize convenience and safety in their choice of daycare.

Pricing & Educators

Detail the range of childcare and educational services provided, from basic care for infants to preschool programs and after-school care for older children. Outline your pricing strategy , ensuring it aligns with the quality of care and education provided and is competitive within your market segment.

Highlight any special programs, discounts for siblings, or membership deals that offer additional value to families, fostering long-term relationships and loyalty among your clientele. Discuss the qualifications, experience, and approach of your educators and staff, underlining their role in creating a nurturing and educational environment for the children.

Industry size & growth

In the Market Overview of your daycare business plan, start by examining the size of the childcare industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying opportunities for expansion, particularly in regions with increasing numbers of working parents or areas underserved by quality daycare facilities.

Key market trends

Proceed to discuss recent market trends , such as the growing demand for early childhood education, the importance of developmental programs, and the preference for daycares that offer flexible hours and holistic child development approaches.

For example, highlight the need for services that cater to different developmental stages and incorporate educational curriculums, alongside the rising popularity of daycares that focus on sustainability and health, such as offering organic meals or eco-friendly play areas.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your daycare in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your daycare’s unique selling points, essential for differentiating your business in a competitive market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying and Categorizing Competitors

Initiate the competitive analysis by cataloging various local childcare services. Beyond traditional daycare centers, include in-home childcare providers, preschools, Montessori schools, and specialized educational programs focused on early childhood development. Also, consider alternative childcare solutions like nanny services or after-school programs, as they might indirectly compete for parental trust and enrollment.

Leverage digital platforms and online tools to map out the geographical presence of these competitors. Extract insights from customer reviews available on platforms such as Google Reviews, Yelp, or dedicated childcare review websites. Positive reviews highlighting a competitor’s dedicated staff or emphasis on a nurturing environment signal  strengths  in their service offerings.

Daycare Competitors’ Strategies

A meticulous examination of various aspects of competitor operations is imperative:

• Educational Philosophy and Curriculum:  Evaluate the educational approach and curriculum structure. A daycare center with an emphasis on bilingual education or a holistic developmental approach might attract parents seeking specialized learning opportunities for their children.
• Staffing and Qualifications:  Assess the qualifications and certifications of daycare staff. Highlighting a team of experienced and well-trained early childhood educators can be a significant competitive advantage in assuring parents of quality care and education for their children.
• Pricing Models and Services:  Conduct a comparative analysis of pricing models and the spectrum of services offered. Does a competitor provide additional services such as transportation, meal plans, or extracurricular activities as part of their package?
• Marketing and Outreach Strategies:  Analyze the effectiveness of competitors’  marketing strategies . Evaluate their online presence, community engagement initiatives, or collaborations with local events aimed at engaging parents and attracting prospective clients.
• Facilities and Amenities:  Consider the facilities and amenities offered. A daycare center with secure outdoor play areas, advanced security systems, or partnerships with extracurricular activity providers may stand out from competitors.

What’s Your Daycare’s Unique Value Proposition?

Reflect profoundly on what sets your daycare apart. This could be innovative teaching methodologies, a focus on environmental sustainability, or specialized programs catering to children with diverse needs.

Gather insights from parent feedback, industry trends, and  market research  to identify gaps in the market. For example, if there’s an emerging demand for daycares focused on mindfulness and emotional intelligence, consider integrating such practices into your curriculum.

Tailor your daycare’s services and facilities to match the demographics and preferences of your location. An urban daycare might prioritize flexible schedules and proximity to workplaces, whereas a suburban daycare might emphasize larger outdoor spaces and nature-based learning experiences.

First, conduct a SWOT analysis for the daycare , identifying Strengths (such as a qualified and caring staff, comprehensive educational programs), Weaknesses (like limited space or high operating costs ), Opportunities (for instance, a growing demand for quality early childhood education), and Threats (such as changes in government regulations or competition from new daycares).

Marketing Plan

Next, formulate a marketing strategy that details how to attract and retain families through targeted outreach, referral incentives, a strong online presence, and participation in community events.

Marketing Channels

Employ a mix of marketing channels to reach potential parents and engage effectively with the community.

Digital Marketing

• Social Media Presence:  Leveraging various platforms like Facebook, Instagram, LinkedIn, and Twitter allows you to share engaging content showcasing daily activities, educational insights, testimonials from satisfied parents, and detailed information about your programs and events.
• Website and SEO:  Maintaining an informative, user-friendly website that provides comprehensive details about your daycare’s philosophy, curriculum, staff qualifications, enrollment procedures, and upcoming events. By optimizing your website for local SEO, you enhance visibility in online searches, ensuring that interested parents find your center easily.
• Email Marketing:  Implementing an effective email marketing strategy allows you to regularly communicate with parents, providing updates about enrollment, upcoming events, educational resources, parenting tips, and testimonials. This strategy fosters engagement, builds trust, and maintains a consistent line of communication with parents considering your daycare services.

Local Advertising

• Community Engagement:  Foster connections within the local community by participating in neighborhood events, sponsoring school activities, or organizing open houses and tours to showcase your daycare’s facilities and programs.
• Partnerships:  Collaborate with local businesses, pediatricians, schools, or community centers to establish referral programs, joint events, or educational workshops, thereby increasing your daycare’s visibility and credibility.

Promotional Activities

• Special Enrollment Offers:  Create promotions like ‘Early Bird Registration Discounts,’ ‘Sibling Discount Programs,’ or ‘Refer-a-Friend Incentives’ to attract new enrollments and encourage parent referrals.
• Open House Events:  Host periodic open house events inviting prospective families to tour your facility, meet staff members, and learn about your curriculum and approach to childcare.

Sales Channels

Implement effective sales strategies to convert inquiries into enrollments and ensure customer satisfaction.

Consultative Selling

• Tours and Information Sessions:  Offer guided tours of your daycare center, allowing parents to experience the facilities and interact with teachers. Conduct informative sessions addressing parents’ concerns and questions about your programs, curriculum, safety measures, and daily routines.
• Personalized Approach:  Tailor your communication with parents based on their specific needs and concerns. Highlight how your daycare meets their child’s developmental needs and addresses any apprehensions they might have.

Enrollment Process Efficiency

• Online Enrollment:  Simplify the enrollment process by offering an intuitive, user-friendly online registration system accessible via your website. Ensure it provides all necessary information and offers secure payment options for a seamless experience.
• Enrollment Incentives:  Provide incentives like waived registration fees, trial days, or discounts on the first month’s tuition to encourage parents to enroll their children at your daycare.

Retention Strategies

• Parent Engagement:  Foster a sense of community by organizing family-friendly events, parent-teacher conferences, workshops on child development, and educational seminars. Encourage parental involvement through volunteering opportunities or participation in daycare activities.
• Quality Service Delivery:  Focus on delivering exceptional childcare services, ensuring the safety and well-being of children, providing engaging learning activities, maintaining open communication with parents, and offering regular progress updates about their child’s development.

Strategy Timeline

Lastly, draft a precise timeline that marks crucial milestones for the daycare’s launch, marketing initiatives, enrollment targets, and growth plans, ensuring the business progresses with clear goals and intent.

The Management section focuses on the daycare business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the daycare business toward its financial and operational goals.

For your daycare business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your daycare business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your daycare business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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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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Starting a home-based childcare business: a step-by-step guide

With the government’s ongoing expansion of its subsidised (Free) Childcare Scheme, demand for childcare is booming across the country and that means now could be the perfect time to start your own childcare business by becoming a registered childminder. If you love being around children and are passionate about helping the next generation reach their full potential, then a career in childcare could be the one for you.

It might be easier than you think to start your own childminding business. With the right training and support, you can be up and running in as little as three months and with a £1200 grant now available your start-up costs could well be covered. If you’re interested, read on to find out more.

Benefits of starting a home-based childcare business

There has been a national decline in the number of childcare providers over the past decade, a trend the Government has become increasingly worried about. The importance of early years education has finally begun to be recognised along with the impact that a lack of childcare has on local communities and the economy.

If you have a passion for caring for children and have been thinking about a career in childminding, there’s never been a better time to take the plunge.

Perhaps the biggest tangible benefit is the potential financial rewards. You don’t need a lot of start-up capital to establish a home-based childcare business, making it an extremely viable venture. What’s more to encourage more people to enter into the childcare industry the government will provide a £1200 grant payment to anyone who becomes a childminder via a registered childminder agency

With average salaries ranging between £25,000–£35,000 per year, it’s an extremely rewarding way to achieve a better work-life balance and earn a living while helping children grow, develop and thrive.

Speaking of work-life balance, because you’ll be working from home, it means you won’t need to spend hours every week commuting to and from work or being stuck in an office somewhere. If you have children, you get to spend time with them as they grow up, while running your business and taking care of other people’s youngsters.

You get to be your own boss, so you can choose the days and hours you work to suit you and your lifestyle. You can also start up quickly. If you work with @Home Childcare, we can provide you with complete step-by-step support and training to help you set up your childcare business within two to three months, along with ongoing mentoring to help it grow. Imagine that – a rich and rewarding new career with flexibility and freedom within just three months.

Not bad, right?

Steps to start a home-based childcare business

If you want to start a home-based childcare business , you must register with either Ofsted, or an Ofsted accredited childminder agency. You need to register if you get paid to look after children under eight years old in your own home for more than two hours a day. As an Ofsted-registered childminder agency, we inspect and register you on behalf of Ofsted. However, there’s more to launching your business than simply registering. Here are the other steps you need to take to get up and running:

Childminder training

To become a registered childminder, you’ll need to complete a pre-registration training course, which will equip you with the skills and knowledge you need to start and run a home-based childcare business. At @Home Childcare, we provide funded step-by-step support and training to help you become a registered childminder early educator and set up your new childcare business in two to three months. We can also help you raise your profile and find parents looking for childcare in your area. Our in-depth training covers everything you need to know about starting and running a successful childcare business, including:

• Early Years Foundation Stage (EYFS) training
• Legislation and regulation
• Safeguarding and child protection
• Health and safety
• Paediatric first aid and food hygiene
• Equality, diversity and inclusion
• Children’s learning and development
• Observation and play
• Leading and managing an early years’ setting
• Financial and taxation requirements
• Creating a business plan specifically for childminding
• Registration requirements

To find out more about download our free guide to becoming a childminder and get all the information you need to embark on this exciting and rewarding new career.

DBS and health checks

If you’re planning to use your home to run your childcare business, you and any other adults (aged 16+) who live with you need an enhanced criminal record check from the Disclosure and Barring Service. You can apply on Ofsted’s secure DBS Application Portal .

If you’re applying to the Early Years Register, you’ll also need to complete a health declaration form and get your GP to sign it.

Getting inspected

Once you have registered, you’ll need to undergo an inspection either by Ofsted (which can take up to 30 months after registering) or by an accredited childminder agency, like @Home Childcare (which can be done within two to three months). This is to ensure your home is safe and suitable, that you’ve done the relevant risk assessments, and provide childcare to the required standards.

Ongoing Ofsted inspections should happen at least once every six years. However, at @Home Childcare, as well as providing ongoing support and training, we inspect all our registered childminders annually to ensure their service provision is of the highest possible quality.

Complete the legal paperwork

Once you’ve passed your inspection, you’re almost ready to launch your business. However, the final step is to ensure you’ve completed the correct paperwork to meet your legal responsibilities. This includes registering as self-employed with HMRC to ensure you pay the correct Income Tax and National Insurance. Remember, it’s your legal responsibility to keep accurate financial records and file your self-assessment each year, so make sure you receive professional advice if you’re unsure of what you need to do here.

You’ll also need to get the right insurance in place to protect yourself and your business before you start childminding. This includes sufficient public liability insurance, as well as ensuring your home and contents – and even your car insurance – covers you for what you need. And if you’re processing personal data electronically, either of your customers or staff, you’ll need to register with the Information Commissioner’s Office and adhere to GDPR and the Data Protection Act.

Start your childminding business

While the above steps will help you on your way to starting a new career as a childminder, there are many more things to consider. After all, you’ll need to run it as a professional business, which comes with everything that entails. However, it’s also a career with freedom and flexibility, so you can fit your job around your lifestyle and build the business your way. At @Home Childcare, we’ve helped hundreds of people register as self-employed childminders and get their childcare journey off to the best possible start. To find out how we can help you do the same, get in touch today .

Have a question for us?

If you have a question about anything, big or small, no matter what it is, we’d love to hear from you! Just press the button below, fill out the form and a member of our team will get back to you as soon as we can.

0115 978 3399 – 0845 0760 042

@Home Childcare Head Office 6 Sherwood Rise Nottingham NG7 6JF

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DOMICILIARY CARE BUSINESS PLAN: Template & All You Need

• by Kenechukwu Muoghalu
• August 14, 2023

Table of Contents Hide

What is a domiciliary care business , what services do domiciliary care offer, what is a domiciliary care business plan, #1. executive summary, #2. company overview, #3. market analysis, #4. management team , #5. services description , #6. marketing plan, #7. operational plan, #8. financial projections, #9. appendix, how do i get clients for domiciliary care uk, what are the advantages and disadvantages of domiciliary care, what are the mandatory training for domiciliary care workers, how long does it take to train to be a carer, is the care certificate mandatory, how long is care training, need help writing your domiciliary care business plan, final thoughts, what is an example of domiciliary care, what qualifications do i need to open a care agency, how does a care agency make money.

The domiciliary care industry is valued at £7.7bn in the UK, which signifies that it is a stable and secure business to invest in, but not in the absence of a plan. A business plan sets the groundwork for the growth of your business, so for your UK domiciliary care business to run successfully, you will need a plan. To this effect, we have created a guide that would carefully explain the basics of your home care business while directing you on how you can create a plan for yourself. We also made provisions for a ready-made UK Domiciliary Care business plan that comes in the form of a PDF and a Doc format. In any case, you don’t want to go through the stress of creating a new one. 

Without further ado, let’s look at what we have in stock for you. 

The term “domiciliary” originated from the Latin word “Domus,” which means “home”. Domiciliary care, sometimes known as home care, involves an individual or agencies that provide daily assistance for those who need help in their home. These paid professionals specialise in assisting the elderly and disabled to help keep them living independently in their houses. 

They are mainly hired by relatives of the house owner or the local authorities. Domiciliary care business does not just provide help to some vulnerable people, this business also potentially generates lucrative returns.

As a home caregiver, you should be able to handle some day-to-day living services and certain health care issues. Your services might also differ depending on what your client needs and the kind of agreement of services you have signed during your contract. Some of the common services you can offer include:

• Household chores
• Dietary needs
• Personal and continence care
• Companionship 
• Errands that include doctor visits
• Support with advice and information 
• Medication management 

A domiciliary care business plan has multiple functions which range from helping you run your business in the right way to helping you secure some form of finance to make your dreams a reality. A domiciliary care business plan is a plan, a blueprint or roadmap on paper that serves as a guide to attain growth in your business. 

Creating a business plan all depends on how best your resources can handle your business. If you want to run your business based on your personal savings, then you need a simple UK domiciliary care business plan that will just help you stay on track. However, if you are seeking investors or lenders, you need to create a more comprehensive plan. 

How do I Write a Business Plan for Domiciliary Care?

Having read all of this, it’s now time to create your UK domiciliary care business plan but before we proceed, you should know that

creating a business plan requires some form of pattern to follow, either constructing it in a PDF or doc format. With this template below, you will get a hang of it. Let’s look at what should be included in your plan. 

The executive summary is basically the overview of your whole business plan. It should contain other sub-sections of your domiciliary care business plan including financial projections, marketing plans, organisational structure and market research among others. This section is usually the first to appear but the last to construct. 

Most readers will glance through this section to get the information they need to know about the business, instead of reading the whole business plan. So while creating your executive summary, it should be brief, clear and concise. 

Your company overview should contain an in-depth analysis of the vision you have for your domiciliary care business. You can also talk about your mission statement and where you wish your business to be in the nearest future. How about your company’s history? You can add that too if you are already an existing business. Include your strengths, weaknesses, threats and opportunities and tell your reader how you plan to tackle each of them. 

Before you construct this section of your market analysis , you need to have a thorough study of your domiciliary care industry. During your market research, you should focus on important points like your ideal target audience, their demographic data, what services they might like more, your market value, and a host of other viable information. When you have a solid understanding of the market and industry you are working in, then you can effectively write this section. 

Just as the name implies, your management or organizational team and the structure of your organisation shouldn’t be left out in your business plan. Starting domiciliary care will involve you employing staff that will help the growth of the company. This is where you identify who your carers are and their different skills. You should also introduce yourself as the head of the organisation. 

What kind of services do you offer in your domiciliary care business? You will need to answer that question under your service description. You can either offer a broad range of services or settle in a particular niche. If possible, you can list all of them and be specific about the ones you offer. 

Your sales and marketing plan should cover the strategies you plan on employing on your business. It should include the plans you have to create awareness for your brand and attract new clients while keeping the existing clients satisfied. Tell your readers the marketing campaigns you will use to carry out the function. Will you create an online presence or use a manual form of marketing which includes creating fliers, magazines and the likes? You can also include the personnel that will be handling the section.

All the plans and activities you have been making from the very first beginning of this article, how will you implement them? This is what you are going to explain in this section of your operational plan. What are the channels, policies, procedures and systems you will use to implement those plans and also ensure that nothing goes wrong? All this information should not be left out. 

Your financial projection is one of the most essential pieces of information that requires a clear and definite analysis. If you do not know how to go about it, you should see an advisor or reach out to us here for professional work. In this section, you should include an overview of your finances over the short, medium, and long-term basis. You should also include a balance sheet, cash flow statement, and income statement. If you are also requesting financial aid, then this is your time to make the move. 

In this section, make sure to attach all valid documents that would validate your plan and the data you have given above. 

If you are always stuck with creating marketing campaigns and not getting a positive response from your potential clients, then you need to try other effective ways. There are some steps you can take to get clients for your domiciliary care business and they include:

• Opening a website
• Using a referral strategy
• Increase your online presence by using social media
• Create leaflets or fliers

Running a domiciliary care business comes with both positive and negative effects that might not always be avoided. On the positive part, a domiciliary care business can help you maintain independence, flexibility, financial benefits and companionship among others. 

While the disadvantage is that, it is always harder to manage and build up trust with different people that come and go each time. Another disadvantage is that most times, you will be left with offering more of your services outside the agreed time and contract you had with your partner. As a caregiver, your number one priority is to offer help irrespective of the situation. 

The mandatory training for domiciliary care workers is not limited to the following:

• Health and Safety
• Fire safety 
• Safeguarding adults
• Infection, prevention and control
• Manual handling
• Food hygiene
• Human rights

As a caregiver, you can train for either a long or short period depending on the level of knowledge and skill you wish to acquire. Having this training always leaves a good impact on your side. 

Yes, a care certificate is mandatory for any care worker. A care certificate is a group of standards that caregivers need to adhere to when offering their services. This certificate is mainly to ensure that all UK’s non-regulated workforce of caregivers has the same skills and knowledge to provide high-quality care to their clients. 

Care training can last up to 12 weeks and approximately a year. This time duration can either be reduced or increased depending on the number of hours you work and your previous education and experience. 

Writing a business plan might not be as easy as it seems but because of the importance of having a business plan, you need to make provisions for it, irrespective of its daunting nature.

If you find yourself in this tight situation, it’s better to opt-in for a professional pre-made domiciliary care business plan , which can also be accessed in a PDF or doc format. 

Over the years, businessyield consult has solely invested its time and efforts into creating professional business plans for entrepreneurs. We have so far helped millions of businesses stand on their feet, and we are happy to help you too. Get hold of your business plan here and watch your home care grow.

I know that handling a domiciliary care business might not pose as a big deal, but there is always a difference when you employ a plan in it. Creating a domiciliary care business plan, on the other hand, requires a special form of time and attention for it to work effectively when applied, but in any case, if you find it too hard to manoeuvre, you can use our pre-made plan , either in PDF or doc format. 

As a domiciliary caregiver, you will need to perform some basic duties to your clients including cooking, general housekeeping, personal care, medical support, pet care and other forms of support your client might be in need of. 

Before starting as a caregiver you will need some sort of legal qualifications that would make your business legit and validate its existence. Whether you are the owner or another person handling the business, you will need qualifications. To obtain this, simply reach out to your local authorities. 

If you own a domiciliary care business, then you can make money from receiving contracts from clients that need your services. You can reach out to these clients by employing some marketing strategies and creating awareness for your brand. 

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Kenechukwu Muoghalu

Kenny, an accomplished business writer with a decade of experience, excels in translating intricate industry insights into engaging articles. Her passion revolves around distilling the latest trends, offering actionable advice, and nurturing a comprehensive understanding of the business landscape. With a proven track record of delivering insightful content, Kenny is dedicated to empowering her readers with the knowledge needed to thrive in the dynamic and ever-evolving world of business.

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MICRO BUSINESS: Definition, Challenges & Solutions

4 main parts of a business plan: 4 necessary business plan components.

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Last Updated on August 15, 2023 by Kenechukwu Muoghalu

How to Start a Daycare: A 10-Step Guide

The hardest part of starting a daycare center is knowing where to start. LegalZoom tells you how to turn your wish into a reality.

Ready to start your business? Plans start at $0 + filing fees.

by   Swara Ahluwalia

Swara has over six years of writing experience in the software, manufacturing, and small business segments. When she ...

Read more...

Updated on: August 29, 2024 · 12 min read

Is now the time to start a daycare?

How to open a daycare in 10 steps, how to get started with your new business.

Despite the rise of remote work, the demand for daycare services is at an all-time high. According to Grand View Research, a leading research publication, the U.S. child care industry stood at $63 billion as of 2023, and the market is expected to grow by another 5.86% through 2030. 

For an entrepreneur looking to start a small business in child care, these numbers certainly exhibit opportunities for success and profit. But where does one begin? 

Let LegalZoom help. Learn how to start the daycare center of your dreams.

We’d say yes! This year and the coming years are poised to be lucrative times to step into the child care market. Trends driving this surge in demand include:

• Parents returning to the office
• High demand for women-led industries , like health care and educational services
• Increasing number of parents pursuing higher education and specialized training 
• More women pursuing entrepreneurship
• Increased awareness about early childhood education 
• More homes where both parents are working

From a business standpoint, a child care business presents ongoing demand and exciting prospects. Here are some numbers to back that up.

• Approximately 62% of U.S. children population are in some form of child care
• Profit margins are a respectable 10%-15% 
• Start-up costs range from $10,000-$50,000
• Recovering economy is poised to give parents more disposable income
• More grant options for child care businesses from organizations like First Children’s and WomensNet

Excited about working with children and running your own business? The pathway to success begins with market research. 

Step 1: Research your market

The child care business has stiff competition, and to be successful, you need to know what you’re up against and what you need to do.

Here are a few steps that help you dig deep and assess whether a child care center is a viable business idea.

• Analyze demand. Study your area's demographics, like parental income, families with kids, and population trends, to identify if there’s a demand for your business. The U.S. Census is a good starting point for this information. 
• Finalize age group. Daycare centers cover a spectrum of age groups, each with its benefits and challenges. It’s important to understand which group you wish to serve. In addition, assess your skill set—are you better with babies or more comfortable dealing with toddlers or older?
• Study the competition. Look at local child care centers and learn their set up, target market, pricing strategy, and what they bring to the table. You can even examine their cost structure—what the salaries and rent expenditures are, and how much the supplies and materials cost?   
• Identify market gaps. Ask yourself, “What can you do to differentiate yourself?” and “What are the pain points of the parents?” 
• Understand state guidelines. While a bachelor's degree in education is not mandatory for running a daycare, the job involves working with a vulnerable age group and some teaching and training. Many states require daycare business owners to have some minimum qualification, like a GED, an associate degree in childhood education, or a child development associate certification. If you're missing this, get started as you build your center. Your state’s office of  Child Care Services or Health and Human Services can give you all the details about the training, experience, and credentials you need to legally operate a child care center.

Step 2: Find a location

Many people have successful child care centers operating from their homes or basements when state law permits. If you plan to go that route, ensure you have a safe and sufficient place in your house that doesn’t disturb your own children or family members' daily routines. 

If you need to look externally, run an online search and contact local recreational clubs, gyms, churches, and other small businesses. Often, they will have an underutilized space they can rent out at an affordable price. 

Location parameters to keep in mind while you go space hunting include: 

• Accessibility
• Scalability

After you have narrowed down location options, check with your local zoning, fire, homeowner association, and health department for compliance requirements.

Step 3: Make a daycare business plan

Having an idea isn’t enough; to operate a successful daycare center you need a well-thought-out business plan that includes everything from competitor analysis to financial statements, marketing strategy, and details about managing conflicts.

Your business plan should detail the following: 

• Your business entity structure. A small business owner can opt between a sole proprietorship, limited liability company, or S corporation. Your chosen structure will influence your tax filings, bookkeeping, administrative duties, and daily operations. LegalZoom can help you  select and form a registered business entity that aligns with your business goals.
• Business proposition. What service does your daycare provide—full-day, half-day, or an after-school program? Will the daycare follow a certain learning philosophy like Waldorf or Montessori? Will extra services like reading classes or tutoring be offered? Write out your mission statement and short and long-term goals . 
• Pricing strategy. How will you charge parents? Will discounts be offered for those who sign up long-term? Your market research will help you set a pricing plan. 
• Operating plan. How will the day-to-day run? What processes will help you manage the place? Will you be hiring staff, or will your daycare be a one-person show? 
• Business expenses and financial projections. Include accurate start-up costs and expense estimates alongside income projections. Do you have enough savings to cover the startup costs ? If not, how will you secure funds? Be realistic about when you expect to start making money and leave some buffer for future and unexpected expenses. Getting into the financial nitty-gritty will give you a framework to operate.
• Marketing strategy. How will you reach your target audience? Will you rely on social media or a door-to-door campaign? Also, consider local partnerships (schools and businesses) you can establish to bring in clients.

The more planning and prep work done upfront, the higher the chances of success. SCORE offers a  business plan template that can ensure a strong start off the blocks.

Step 4: Get your licenses and permits 

Securing the right licenses, permits, and certifications is one of the most important aspects of starting any business. These licenses and certifications protect your business from unfavorable conditions and often inform your customers about your commitment to safety.

Licenses and permits that you may require are: 

• Family child care home license
• Commercial group child care license
• General business license
• Building permit 
• Fire permit
• Health-related permit 

Most permits and licensing requirements are regulated by the state government. Also, the licenses and permits required depend on the size of the daycare and whether you are operating from your home or a commercial place. LegalZoom’s Business Licenses service can help identify and meet your licensing requirements.

Step 5: Secure funding

The financial aspect of your child care center business might not be as fun as selecting a name or designing the space. Still, it’s a catalyst that gets you one step closer to becoming a successful entrepreneur. 

Can’t bootstrap your way into business and require external financial assistance? Don't panic, here are a few  alternative sources of money that you can look at: 

• Small Business Administration (SBA) microloans. These loans, typically between $500 to $10,000, are mainly geared towards startups. They are given to women, minorities, and those operating in low-income areas.
• Online business loans. Online loans are an alternate means of getting capital that doesn’t have the same barriers as traditional business loans, like stronger credit scores or years of establishment. They also tend to provide quicker access to capital but with higher interest rates.
• Private and government grants. An attractive source of funding because you don’t have to pay back the amount. Grants are generally offered by the government, private foundations, or corporations. Check out your state’s Child Care and Development Fund Administrators and grant marketplaces like OpenGrant and GrantWatch to see if you qualify for any. 
• Business credit cards. A cost-effective, fast, and short-term way to cover your startup costs even if you don’t have the best credit rating. The advantage of a business credit card is it can actually help you build credit while keeping your personal and business expenses separate. These cards can also link directly to a business bank account.
• Crowdfunding. A popular and inexpensive way to raise funds without any obligation to pay back the debt. Crowdfunding allows small business owners to reach a wider pool of investors through an online portal. Popular crowdfunding sites include Fundable, Kickstarter, and Indiegogo. 

Step 6: Design your daycare center

This is the best part! Proper design and layout of your daycare can be instrumental in fostering a nurturing environment where kids can thrive and grow. The challenge you might face is designing an aesthetically pleasing and functional that abides by the required safety regulations. You can hire an interior designer or get ideas from Pinterest to overcome this hurdle.

While designing, factor in the following: 

• Designated areas for learning, napping, and eating
• Child safety locks and gates for stairs, storage, and equipment
• Open floor space that allows for movement
• Cleaning and sanitizing of all equipment and surfaces
• Security measures like CCTV cameras, smoke detectors, and fire extinguishers

Running a daycare center requires massive investment in supplies and equipment—from tables and chairs, disinfectants, wipes, and books to toys and bibs and various art materials. You can search online marketplaces to find preloved materials at a bargain or explore suppliers like Discount School Supply and Lakeshore Learning. 

Step 7: Hire qualified staff (if required)

The need to hire staff depends on your state of residence as well as the age and number of children in your daycare. For example, in New York State, a child care center must have one adult for every six children under the age of six. 

Your state’s Office of Child and Family Services or licensing agency can inform you of the required staff-to-children ratio and the necessary qualifications and experience for hired staff.

There are still more things you have to complete after you have identified the number of people you need: 

• Run necessary background checks , including criminal background checks and references.
• Sign contractor or full-time employment agreements to protect your business from fraudulent claims and ensure there are no discrepancies about roles, responsibilities, and pay. 
• Create detailed job descriptions so everyone knows what they have to do. 
• Train staff on child development, early learning frameworks, emergency preparedness, and basic health and safety measures like CPR and first aid. 

An employment attorney can steer you away from legal issues and ensure you’re following your state’s employment laws and mandates while hiring and managing your staff. 

Step 8: Create a business handbook

This business handbook is the master blueprint your daycare runs on. If you have any doubts or confusion about how to deal with the families or your staff, the handbook should have the answers. 

For families, the handbook should cover crucial logistical information, such as:

• Enrollment procedures
• Tuition fees and payment procedures
• Description of curriculum and activities
• Field trip process
• Health and safety measures
• Sick kid protocol
• Communication policy
• Discipline code 
• Pick-up and drop process
• Food and nutrition (if you are providing meals)

For your staff, the employment handbook should include:

• Pay and benefits
• Personal leave policy
• Child care guidelines
• Hiring and termination procedures
• Disaster and emergency plans
• Performance evaluation process
• Hygiene and cleanliness protocols 

Step 9: Market your daycare

You can have the best daycare in the area, but nobody will know about it if you don’t market it. And by marketing, we don’t just mean a few flyers or social media posts; an entire strategy has to be set that addresses the question, “Why should families choose you?” 

To start, pick a creative name for your daycare and design a logo. You can collaborate with a graphic designer or utilize online design tools like Canva and Snappa. Getting a trademark can protect your business from potential copycats.

In today’s world, an online presence is a must. Develop a business website and social media presence. You don’t need to be active on all channels—just the ones that resonate with your target audience. 

Pro tip: Get a website domain name and social media handle that matches your business name. It will create brand consistency and make it easier for parents to find you. 

A free and powerful marketing tool is to set up a Google Business Profile. Collaborate with local businesses, like libraries, gyms, restaurants, and grocery stores, to advertise your business. Also, getting featured in a local newspaper or hosting an open house or free parenting class can also go a long way. 

Step 10: Stage your grand opening

This is premiere night, and you should put on a show to get people through the door. You’ve one shot to make a positive impression, so give this your all. 

A popular and effective way of getting people through the door is to host an opening with engaging activities that speak to your target group. Consider offering:

• Scavenger hunts
• Art and craft sessions
• Reading time

This allows you to showcase your skills while potential clients get first-hand experience of what it would be like for their child. To boost brand recall, make sure every person who attends leaves with a memorable freebie with your daycare’s name and logo, such as tote bags, stationery items, or even a T-shirt. 

Pro tip: You can further encourage attendees to submit enrollment forms by offering a special discount, such as waived registration fees or a significant discount. 

Starting a business is challenging, but it’s also the most rewarding and fulfilling experience. We understand that the start-up to-do list may seem endless, but remember, you don’t have to do it all on your own. 

We can turn your passion for transforming future generations into a thriving business with our Business Formation services. With the right information and resources for every big or small question, our start-up experts will smoothen your entrepreneurship journey.

Can I run a child care center from my home?

You might be able to, but it’s best to check with your local licensing authority about the number of kids you can care for and the space requirements for a home-based daycare. 

How much does a daycare owner make? 

It’s difficult to pinpoint an exact figure because it depends on the number of kids enrolled, operational costs, location, and competition. If you are in an area with multiple other family child care providers, you will have to keep your rates competitive. 

What insurance do I need for my daycare? 

Daycare centers typically require property, workers' compensation, professional, and general liability insurance coverage. An insurance broker can help you pick the right policies for your business.

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How to start a dog daycare business

Table of Contents

Sniffing out what you need before starting a dog daycare business

Registration, sole trader, limited company, wales and scotland, qualifications, public liability, care, custody and control, small business loan, angel investor, services and pricing, opening up the doggy door to your first customers, market research, target audience, customer profiles, website and bookings, marketing channels, social media, keeping a leash on your financial management with countingup.

If you think dogs are a treat to be around , you’re not alone. The number of canine pets in the UK was 12.5 million last year.

More time at home during the pandemic lockdowns saw people able to welcome new dogs into their families. But what will owners do now they have to go back to work? The answer is dog daycare .

This is your paw-fect time to start a doggy daycare business of your own. You’ll combine your love for pups with your pursuit of commercial success .

This guide to starting a dog daycare business includes:

• Keeping a leash on your financial management

Start the ball rolling by registering with the UK government . To register the right way, choose which type of business ownership you’ll use.

• Unlimited liability — personally liable for the business’s debts.
• Simple registration — only responsibility is to register as self-employed .

For more information, see: What is a sole trader?

• Limited liability — only lose the money you put into a business if it can’t pay its debts.
• Complex registration — register the business with Companies House , which requires more responsibilities than just self-employed.

For more information, see: What is a limited company?

When starting a dog daycare business, the next important thing to consider is the licences you need.

A Boarding for Cats or Dogs Licence is required to open a pet daycare business in England. You can apply through the UK government, and you’ll receive an inspection shortly after.

Inspectors will check dogs you look after:

• Have food, drink and bedding .
• Get regular exercise .
• Aren’t diseased, injured or suffering .
• Aren’t in danger (e.g. fire hazards).
• Are cared for by someone qualified .

In Wales and Scotland, you need an Animal Boarding Establishment Licence which you can apply for with the UK government.

Local councils will conduct an inspection similar to England, which looks for the same key points.

To reassure your customers that you can take care of their precious pooches, you can get qualified through courses .

Inspectors for your licences will seek to determine if you have the training to care for animals, so consider the Level 3 Professional Day Care and Boarding course.

This course is available from:

• Dog Business School

The Ofqual regulated courses prove that you can comply with the terms of your licence arrangements .

Think about your daycare’s location to make sure it’s a safe place . You could use your own home or rent a property to use.

When you consider where to set up, think about if the space can:

• Allow for dogs to exercise (e.g. indoor area like a warehouse or outdoor like a field).
• Keep dogs warm (e.g. room for blankets, beds and heating for cold days).
• Prevent dogs escaping (e.g. high fences and secure areas).

If your business doesn’t employ anyone else, there’s no insurance you legally require. Although, cover can still be helpful and essential for any dog business.

Dogs can damage public property, and they can injure people . If you’re on a walk and either of those things happen, you could face legal action.

Public liability cover will help pay towards the court fees or compensation in that situation.

If a dog is injured or falls ill in your care, the owner could also claim against you. So care, custody and control cover would help you deal with that financially.

The cover can also pay for veterinary costs and advertising to help find lost dogs.

You can benefit from both of these covers with a specific dog daycare insurance, such as:

• Home boarding insurance
• Dog daycare, dog day creche insurance
• Pet sitting insurance

To pay for insurance, courses or property, you might seek extra funds for your business.

One option to secure funds is to approach a bank for a small business loan . They could offer you the money you need and you’ll arrange to pay it back over time with interest .

To apply for a loan, you’ll need to put together a business plan which explains what you’d do with the money and the likelihood of your success.

For more information on business plans, see: What should a business plan include?

Another option available for funding is to pitch to angel investors . These are wealthy individuals who can give you the money you need in exchange for a share of your company .

You’ll also need a business plan to impress them. But angel investors often invest in industries they are familiar with, so they could also offer helpful dog related contacts and advice for you .

A critical point to consider before starting a dog daycare business is the services you offer and their prices .

Think about whether you’ll look after the dogs over weekends if owners go away or do weekdays while they’re at work. If you have to work overnight for example, you can likely charge a higher rate.

You could have different packages you offer which include extras like:

• Trimming dogs nails
• Cutting and washing fur
• Dog massages
• Luxury food

When starting your dog daycare business, you’ll need to discover who your customers and competitors are . If you know who to target and who you’re up against, you’ll be able to market your business effectively.

To find out information for both, conduct market research . That can involve direct communication with the public through surveys or interviews . Ask what dog services people want and find groups are most likely to use them. 

You can look into your competitors online through their sites or visit them to see what services they offer .

If you search on Google which dog daycare businesses are run near you, you’ll likely find a few different ones. You’ll aim to stand out, so think about what you can provide that they don’t .

Through your market research, you may pick up on some similarities between the potential customers.

For example, you could find that most people who said they’d use your service are on higher incomes and above 35. 

Any helpful insights into those customers will form your target audience . These are your ideal people to focus on in your marketing. If you focus your advertising approach, it will be more efficient and save you money.

To decide which marketing channels to use to reach your target audience, you can create customer profiles (sometimes called customer avatars).

These are summaries of the lives of ideal customers, use them to discover when and where to market your business . For example, if they work during the day, you might target them in the evening.

A customer profile can include:

Another critical step before you shout about your dog daycare business is its branding . Your brand is the company’s public identity , and it’s how you can build familiarity with your customers.

Your brand can include your:

• Business name –– what you call your brand (e.g. House of Hounds).
• Slogan –– a phrase to associate with your brand (e.g. who let the dogs in).
• Logo –– an icon to represent your business (e.g. half, chewed toy).
• Colours –– two or three colours for your brand (e.g. brown and white).
• Tone of voice –– how you talk to customers (e.g. playful and excitable).

These points can form your brand guidelines to follow in your marketing. They’ll help maintain consistency to help you build recognition with the public . 

If people can easily remember your business, they may be more likely to trust you with their pets.

Now you’ve got an audience to target and a strong brand, the last step before marketing is a way to accept bookings.

It’ll be helpful to create a dedicated website to explain your services to customers. They’ll be able to learn what they want to know and see what options you have available for them.

There are a few website builders that you could use:

• Squarespace

Your site should also have contact information in case customers may have specific pet requirements to ask about.

For example, their dog may be allergic to certain foods, so they’d want reassurance they won’t come into contact with those.

Also, think about other ways to accept bookings like email and over the phone , but make sure you can manage all of that information together.

You can either use a physical diary or an appointment tool. These include:

Now you’ve got a place to direct your customers, you can build awareness of your brand and services. Your customer profiles should paint a clear picture of your ideal customers, so think about how to reach those.

For example, if you’d like to target young adults, you could use a social media platform like TikTok . You can show clips of the dogs and information about the service in a fun way while you reach your ideal audience .

Your business will likely cater to dog owners that are local to you. In that case, it may be a good idea to find ways to spread your messages within your community.

Facebook has plenty of groups specific to local areas for users to interact with people nearby . If you create a page on the platform, you can encourage family and friends to share the business on their accounts.

Another channel that might be great for a local approach is regional radio. It might be expensive where you live if there’s high demand, but everyone who hears it will likely live close to you .

You could put on a launch event for your business, and you can invite people to bring their pets for a dog themed party.

Everyone that attends could get a voucher for a free day of daycare. After a good experience, they’ll be more likely to choose your business again over a competitor.

If you like animals you could also consider starting a cat sitting business .

When starting a dog daycare business, you need to acknowledge the costs you might face.

These could include:

• Food — stock up, and different dogs might have their unique dietary requirements.
• Toys — keep the dogs entertained, and some will chew through them quickly.
• Beds — enough for all of the dogs in your care, which can vary in sizes too.

Apart from dog care specific costs, you’ll likely also have rent, utilities and marketing costs to monitor.

Countingup is a business account with built-in accounting software , and it lets you manage your finances through your phone. 

Its expense categorisation feature sorts all of your costs automatically. It labels them to show which areas you spend the most time on.

If you’re self-employed, you also need to consider filing your income tax Self Assessments . You must do these before the end of each tax year, but they can be time-consuming for new business owners.

Luckily, Countingup can provide you with tax estimates regularly . It means you’ll already know how much you should put aside each month, so taxes become easy to manage.

In a service industry like dog daycare, it’s essential to record what you bill your customers . It will help you understand whether you’ve charged reasonable fees for what you provide.

With Countingup’s invoicing feature, you’re able to create and send bills on the go. Sort invoices through your phone with one hand and still pet pups with the other.

Get started for free.

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Setting up a Dog Day Care Business

All you need to know about starting and running your business.

In this article

What is a Dog Day Care Business?

With approximately 34% of UK households having a pet dog (equating to approximately 13 million pet dogs across the country), the UK is a country of dog lovers. On average, a dog owner in the UK spends £240 per month on their pet, equating to an impressive industry total of £10 billion a year.

Gone are the days when dogs used to sleep in a kennel in the garden; instead, the majority of people now consider their dogs to be treasured members of their families. With many people not wanting to leave their dogs home alone every day, it is no surprise that the doggy day care industry in the UK is booming.

With the majority of people working from home or being furloughed during the Covid-19 pandemic and many dogs getting used to their owners being home most of the time and not being left home alone for extended periods, it is no surprise that dog day care is more popular than ever.

Dog day care, more commonly known as doggy day care, is the short-term daytime care of dogs. It shares many similarities with day care for children. Dogs get dropped off at day care in the morning (usually when their owners are on the way to work) and they get picked up again in the afternoon or the evening.

Dogs often get bored, hyperactive, stressed or depressed if they are at home alone for extended periods of time. Similar to humans, dogs can experience separation anxiety and an anxious or bored dog can cause damage to your home (for example, by ripping or chewing wallpaper, sofas and belongings and scratching walls), can cause harm to themselves or can bark or howl excessively, which can cause issues with your neighbours. It can also be distressing to the owners to see their beloved dog unhappy or distressed.

During their time at day care, the dogs get plenty of attention from workers, can socialise with other dogs and can engage in activities that have been specifically designed to suit each dog’s specific needs and temperament. The dogs usually have the opportunity to spend time indoors and outdoors, playing with toys and resting or sleeping if they choose. Dog day care provides both mental and physical stimulation and activity for the dogs.

There are two main types of dog day care businesses:

• Providing a safe, clean and comfortable environment.
• Ensuring the safety and well-being of all dogs.
• Interacting with all dogs using appropriate toys, equipment and activities.
• Maintaining visual observation and supervising play areas and all dogs to ensure pet safety.
• Ensuring all dogs have enough water throughout the day.
• Providing mental stimulation to dogs.
• Ensuring the dogs are engaged in physical activity and exercise.
• Using proper dog handling techniques, behaviour management and control procedures.
• Providing training to the dogs (e.g. to reduce negative or destructive behaviours or increase obedience).
• Following dog introduction techniques for new dogs visiting your day care.
• Minimising the stress levels of all dogs.
• Striving to give every dog equal attention and care.
• Regularly checking the areas for hazards.
• Regularly cleaning the day care area and any equipment.
• Having a clear understanding of animal welfare.
• Monitoring the behaviour of the dogs.
• Assessing the overall physical health of the dogs and looking for signs of neglect or mistreatment.
• Purchasing and maintaining equipment and managing your equipment inventory.
• Sending daily updates to each dog’s owner (usually including photographs).
• Keeping up to date on health and safety regulations and ensuring your business complies with all health and safety regulations and legal guidelines.
• Reporting any unusual behaviour, injuries or concerns you have.
• Completing dog incident reports when required.
• Pricing your services, handling payments and providing receipts or invoices.
• Tracking dog attendance.
• Completing business and administrative tasks.
• Marketing and advertising.

If you are thinking of starting up a dog day care business, there are certain qualities, skills and areas of knowledge that will be beneficial. A love of animals, a familiarity with various dog breeds and how to handle them and a passion for taking care of animals are essential. You will also need good communication skills, the ability to work in a team environment and the ability to be flexible. Good physical skills (so you can handle the dogs) is also recommended. A thorough understanding of health and safety regulations is also required. If you have a passion for dogs and a solid business plan, running a doggy day care can be both financially and personally rewarding.

Types of Customers

When setting up your business, an important step is determining your typical customer base. As a doggy day care, your customer base will, of course, be made up of dogs and their owners. However, there are specific factors that can influence the types of customers that are more likely to choose your business.

Defining your target market makes it easier to focus on the specific customers who are most likely to pay for your services and determine exactly where and how to market your business.

Some of the factors that can influence your typical customer base include:

The location you operate in

This is one of the most important factors in determining your typical customer base, as the majority of dog owners choose a day care that is conveniently located to their home or place of work. The types of customers that use your business will, therefore, be primarily made up of people who live or work in the local area.

Your pricing

This is another important factor. Dog owners can typically be separated into three pricing categories, determined by how much money they are willing (or able) to spend on their pets.

• Budget customers: Price is the most important factor for this type of customer. They will likely choose the doggy day care that offers the lowest price, regardless of the services they offer. They are more likely to be satisfied with more basic facilities and equipment.
• Mid-range customers: Mid-market customers are usually looking for a combination of quality and affordability. Although price is important to them, it won’t be the only factor they consider. They will likely have a budget in mind but will still be looking for a doggy day care that offers a higher service.
• Luxury customers: This type of customer is willing to pay higher prices for the best possible service and the best equipment and facilities for their pet. They will likely look for a dog day care that has superior facilities and equipment, additional services (such as training and grooming), an excellent reputation and strong branding.

Your facilities, equipment and activities

Many dog owners tour the day care facilities or sign their pet up for a trial session before committing to one day care. When visiting your day care, they will likely look at the size of your facilities (including any outdoor space), the various equipment you have, the number of staff you have supervising the dogs at one time and the activities and services you offer. Consider all of these factors when setting up your day care and determining who is most likely to use your services.

There are also some other factors that can influence your typical customer base, including:

• Your training and qualifications.
• Your branding and business’s aesthetic.
• Your staff.
• Your safety procedures.
• Your marketing and advertising.
• Your customer reviews.

Equipment You Will Need

Equipment is an essential purchase, as without it you will not be able to run your business. The type and amount of equipment you need will depend on your premises, the number of dogs you plan to look after at one time and the services you offer.

Below is a list of equipment typically required by a doggy day care business:

Day Care Equipment

Playground and agility equipment

Dogs love to climb and play, particularly when they have other dogs to socialise with. Playground and agility equipment can ensure that dogs have plenty of areas to exercise and can offer both mental and physical stimulation.

Some of the equipment you could opt for includes:

• Climbing frames and slides.
• A ball pit.
• Bridges and walkways.
• Playhouses.
• Hurdles and hoop jumps.
• A doggy see-saw (also called a teeter).

A swimming pool

Swimming pools are a popular choice for many doggy day cares, particularly those that plan to charge higher prices. You could opt for a full-sized swimming pool that the dogs are able to swim in or smaller pools or water equipment that are designed for paddling.

Room dividers

Mobile room dividers allow you to keep groups of dogs separate if needed. If you have a communal area for dogs to play or socialise, room dividers can help you to monitor playtime more easily or separate the room into different sections. Room dividers are available in different sizes and heights and can be made of different materials.

Outdoor fencing

If you have an outdoor area, you must ensure it is fully enclosed using reliable fencing. Your fencing will need to be high enough that no dogs can jump over, it should be without any small gaps that smaller dogs and puppies can slip between and should be made from a reliable material that the dogs cannot chew or is not harmful to them.

Balls and other chasing toys

Many breeds of dogs, including Labradors, Golden Retrievers, Border Collies, English Springer Spaniels and Whippets, love to chase balls and other toys. If there is an enclosed field or other outdoor space where you can safely allow the dogs to run around, dog-chasing toys are a great way to keep the dogs entertained and ensure they get enough exercise. Choose different-sized balls to suit different breeds and ensure they are strong and sturdy and do not pose a health risk.

Other dog toys

There are many different types of dog toys you can purchase. To ensure the dogs are safe (e.g. not eating or swallowing parts of the toys), they would need to be heavily supervised when using toys. You should also opt for strong toys, made from tough materials.

Some of the toys you can opt for include:

• Squeaking toys.

Pet relief stations

Many doggy day cares opt to use pet relief stations so that the dogs in their care have a hygienic place to relieve themselves without needing to go outside every time. A pet relief station is a small area covered in artificial grass (that dogs are naturally attracted to) that also features a pop-up sprinkler system (usually shaped like an object such as a fire hydrant) that washes away any dog urine into the drain. A pet relief station can significantly reduce the number of urine-related incidents that occur in your day care and can help your facility to stay cleaner and more hygienic. Depending on the size of your facility, you may require multiple stations.

Resting equipment

You will likely have a designated area of your day care where the dogs can go to rest or sleep. Adult dogs typically sleep for 12 hours a day and puppies and senior dogs sleep for up to 20 hours a day. Although dogs often choose to sleep on the floor, it is important that they also have specific areas and equipment that can help them to rest.

This could include:

• Blankets and pillows.
• Sleeping mats.

Water bowls and drinking fountains

Because the dogs in your day care will be so active, it is essential that you ensure they have constant access to water. You will need multiple water bowls stationed around your facility. Alternatively, you could opt for water fountains and water dispensers so that the dogs always have access to fresh water.

These are a must-have for every dog business. As you will be using numerous bags a day, purchasing biodegradable bags helps your business to be more environmentally friendly.

Treats can be useful if one of the dogs you look after needs a little extra encouragement to follow your instructions or if you are training the dogs. Choose healthier treats and make sure the dogs you look after don’t have any allergies.

Other Equipment Requirements

Air conditioning and a dehumidifier

You will need to keep your day care at a constant temperature that is safe and comfortable for the dogs (particularly as they are likely to be very active). Air conditioning can help you to keep your day care at the correct temperature and a dehumidifier can remove excess moisture from the air. This can help you to keep your premises safe and hygienic.

An air purifier

An air purifier can help to keep the air in your day care fresh and hygienic and remove any harmful bacteria and unwanted particles from the air. It can also prevent your facility from smelling bad and can ensure purified air is continually circulating around your facilities.

A buzzer system and automatic closing doors

To ensure that your facility is secure and that no random people can enter your premises without your permission, it is recommended that you install a buzzer system on your front door. This helps to protect your business from potential dog thefts. Your front doors should also feature automatically closing doors to prevent any dogs from escaping from day care. It is also recommended that your front door and reception area are separated from the day care area by another set of doors so that visitors to your business don’t come into contact with the dogs.

A dog first aid kit

A dog first aid kit allows you to provide pre-vet first aid if one of the dogs in your care is injured or ill. Your first aid kit should contain essential items such as alcohol pads, adhesives for cuts and wounds, a rubber tourniquet, bandages of different sizes (including patch bandages), tape and a foil blanket.

A human first aid kit

This is also essential in case you, an employee or a visitor to your business becomes injured. Ensure your first aid kit is replenished regularly. Your first aid kit for humans should include plasters of different sizes, different types of bandages, gauze dressings, cleansing wipes, distilled water, antiseptic cream, eye wash and sticky tape.

A phone with a good camera

Many dog owners will want regular updates on their pets while they are at your day care. You can send daily updates and take photos of the dogs and send them to the owners. This offers peace of mind and is a service that many dog owners will appreciate. You can also upload your photos to your website or business’s social media as a form of advertising.

Rubbish bins and a waste disposal system

You will need rubbish bins in different areas of your facility. You will also need different bins for different items to ensure you are disposing of rubbish correctly and following recycling guidelines. Colour-coded bins are the easiest way to ensure your waste disposal system is operating correctly. Ensure your bins are secure and kept away from dogs.

A deep sink or washing area

You will need to install a deep sink or washing area that allows you to wash a lot of equipment at one time. This will help you to save time overall.

A washing machine and tumble dryer

You will need to wash dog beds, blankets, pillows, towels, cloths and any other materials regularly. A large reliable washing machine and dryer are recommended to ensure you can run your business hygienically.

A CCTV system

Because you will be storing expensive equipment and stock and will have beloved pets on your premises, CCTV can protect your business from potential break-ins and theft. CCTV can also protect your business in the event of an injury or accident and can provide vital footage to the police or a vet if an incident occurs. You can choose the specification of the equipment and how many cameras you require.

If you accept cash payments, you will need a safe as a way of safely storing the cash from your till at the end of the day. You can also keep extra change in your safe in case your cash register runs out of change during the working day.

Personal Protective Equipment (PPE)

PPE is a necessary purchase, particularly because you will be picking up dog poop and handling dogs. PPE can also help to keep you and your staff members safe. Some PPE you could choose includes gloves, aprons and anti-slip footwear.

Cleaning equipment

Some of the cleaning supplies you may require include a sweeping brush, a mop and bucket, kennel cleaner, bleach, window cleaner, sanitiser, cloths, sponges and other cleaning supplies. You should also supply hand sanitiser and handwashing facilities for staff and any visitors to your business.

Reception and admin equipment

Some of the equipment you may require for your reception are:

• A phone – for customers to make appointments.
• An appointment book or scheduling software – to keep track of appointments and cancellations.
• A reception desk and chair.
• Pricing signs and opening hours signs.
• Shelving for displaying products.

A computer/laptop and a Wi-Fi system

A computer can be used for running your business’s website and social media. You can also manage your online bookings, communicate with customers and market and advertise your day care. A computer can also be used for business and administrative tasks, such as ordering equipment and doing your accounts. You will also need a Wi-Fi system to enable you to use your computer or laptop online.

A website is useful for advertising your business. It should contain photographs and descriptions of your business and the services you offer. It should also list your qualifications and experience, your customer reviews and your contact information. Your website could also feature a booking system for customers to make an appointment or book a session. Design your website to include your business logo and to reflect your branding.

A payment system

The type of payment system you require will depend on your primary payment strategy. For example, if you accept in-person sales, you will likely require a transportable Point of Sale (POS) system (e.g. a card machine) and a cash register. If you accept online payments, you may require an online payment system or a way to track payments to your business bank account.

Leaflets and business cards

These items are essential to your marketing and advertising strategies. These items should look professional, be made using high-quality materials and fit the design and aesthetic of your business. Ensure all of these items feature your contact information so potential customers can get in touch with you.

Typical Pricing for Customers

Once you have calculated the typical costs associated with setting up and running a doggy day care, you can then create your pricing strategy.

You could choose to charge per house, per day or per half a day.

Many doggy day care businesses offer discounts to customers who:

• Have multiple dogs attending the day care.
• Attend full-time.
• Pay for a block of sessions at one time (e.g. they pay for a whole month at one time).

Prices can vary significantly, based on multiple factors. However, on average, customers can expect to spend between £20 and £30 per day for one dog.

Some factors that can impact your pricing include:

• Your location.
• Your competition and the demand for your services.
• Your facilities and equipment.
• The size of your day care.
• The staff-to-dog ratio.

Safely Running a Dog Day Care Business

Safe practices in your doggy day care can help you to protect the health, safety and well-being of the dogs, your employees, and any visitors to your day care.

Some ways you can safely run your dog day care business are:

Consider other factors when calculating your staffing ratio

Although government guidelines state that the staff-to-dog ratio should not exceed 1:10, there are other factors you should consider when calculating the ratio that could cause you to require more staff.

These can include:

• The breed, age, health and needs of each dog.
• The qualifications and experience of the staff members.
• Other services that are offered by your business and how this could affect your employees’ time and their ability to look after the dogs (e.g. training or grooming services).
• Whether the staff are full-time or part-time and whether they are fully employed or work as volunteers.

Consider the flooring and interior surfaces

To protect dogs and staff members from slipping, falling or obtaining an injury, it is recommended that all interior flooring and surfaces are smooth and waterproof. They should also be easy to clean.

Ensure the dogs do not overheat or are too cold

Although you are legally required to ensure your day care is at a safe temperature (between 10°C and 26°C) there are other ways you can ensure the dogs are at a safe temperature, including:

• Keep the dogs away from direct sources of heat.
• Keep all inside areas well-ventilated./li>
• If a dog shows signs of discomfort, steps should be taken to increase or reduce their body temperature.

Implement cleaning procedures

Having effective cleaning procedures is essential for your business. A cleaning schedule and cleaning policies should be in place that cover the cleaning of equipment, surfaces and indoor and outdoor areas. All furnishings and equipment should be inspected daily, and you should document your cleaning and disinfection procedures. Dog faeces should be removed as frequently as necessary. Dogs should be removed from the area while any cleaning is taking place. You should also implement handwashing procedures for staff and visitors.

Flea and tick prevention

To prevent an outbreak of fleas, ticks, or lice in your day care, ensure all the dogs are up to date in their flea and tick treatments. You could request proof that the dogs are up to date in their treatment, or request that the owners treat their dogs before they bring them to the day care.

Be aware of any health conditions, illnesses, injuries or allergies

This is essential for protecting the health and safety of the dogs you care for. Ask your clients to document any conditions you need to be aware of when you first begin working together and then ask them to update you if there are any changes to their dog’s health.

Correctly label food and treats

Dogs have allergies and intolerances as well as people. Ensuring any food or treats are correctly labelled with the ingredients and allergen information is important for protecting the health and safety of the dogs.

Carry out risk assessments

Risk assessments are a legal requirement for businesses with more than five employees. However, even if your business has fewer than five employees, risk assessments are still recommended to ensure the safety of the dogs, your staff and any visitors to your business. Risk assessments can help you to identify any potential hazards and risks in your business and how these can be reduced or eliminated.

As part of your risk assessment, you should:

• Identify hazards.
• Determine who could be at risk.
• Evaluate any potential risks.
• Implement relevant safety measures.
• Record the results of the risk assessment.
• Review the risk assessment regularly.

Implement security measures

Safety measures can help to protect your business, your employees, your customers and your equipment.

Some safety measures you should implement include:

• Install a CCTV system.
• Install an alarm system and secure and reliable locks.
• Ensure doors and gates self-lock.

Ensure the dogs are properly supervised

You must ensure that all dogs are properly supervised at all times, particularly during high-risk activities, such as when the dogs are socialising or when they are playing with toys or using the equipment. Particular attention should be placed on younger dogs, senior dogs and dogs that have previously demonstrated behavioural issues.

Legal Requirements

Complying with legal guidelines is essential when setting up and running your doggy day care business.

Some of the legal requirements you should be aware of include:

Acquire a licence

The Animal Welfare (Licensing of Activities Involving Animals) (England) Regulations 2018 require you to obtain a licence before providing day care to dogs. The type of licence you require (and the associated cost) will depend on whether you run your business from your home or from a dedicated facility and the number of dogs you care for at one time. You will be expected to meet and maintain minimum standards in your business and ensure you comply with all regulations. You will also be inspected by your local authority. Licences are valid for between 1 and 3 years.

Display your licence

A copy of your licence must be clearly and prominently displayed on your premises (in a public-facing area, such as the entrance or reception area) and on your website. You must ensure the copy includes the name of the licence holder and the licence number.

Comply with the Animal Welfare Act (2006)

The Animal Welfare Act provides legislation that applies to any animal being cared for and supervised by people. As the owner of a dog day care, you will be responsible for the welfare of any dogs you care for. Failure to comply with the Act or committing an offence under the Act could result in prosecution.

Comply with staffing requirements

You must ensure that each member of staff has 10 or fewer dogs to care for at one time. You should also ensure that all staff are competent and are able to provide the level of care that is required to ensure the welfare needs of all animals are being met. This includes the competence to identify normal behaviours in dogs and particular breeds of dogs and to recognise signs of pain, suffering, injury, disease or abnormal behaviour.

Comply with space requirements

Each dog must have at least 6 square metres of space available to them on the premises. This can include both indoor and outdoor spaces. Calculate the size and layout of your premises (e.g. do not include reception areas and staff-only areas) to determine how much space is available to the dogs and how many dogs you are able to accommodate. For example, if your premises has 84 square metres available to the dogs, the maximum number of dogs you can accommodate is 14.

Ensure staff training

You and any staff that work in your business must receive appropriate training on matters such as:

• Animal welfare.
• Animal handling.
• Animal behaviour.
• Cleanliness and hygiene.
• Feeding dogs and preparing food (if relevant).
• Preventing and controlling diseases.
• Recognising sick or injured animals.
• Animal first aid.

You must keep accurate records of all staff training (this will likely be inspected when applying for or renewing your licence).

Your staff must also:

• Complete a formal qualification appropriate to their role (e.g. a qualification regulated by the Office of Qualifications and Examinations Regulation (Ofqual)).
• OR show they have the relevant knowledge and experience via industry-generated training courses.

As the licence holder, you must implement a written training policy for all staff that is reviewed and updated every year. It must include an annual appraisal, any planned continued professional development (CPD) and recognition of any knowledge gaps.

Ensure the environment is suitable

There are multiple regulations you must comply with when creating your day care environment, including:

• All areas, equipment and appliances (accessible to animals) must present minimal risks of injury, illness and escape.
• Any equipment should be robust, safe, well-maintained and in a good state of repair.
• Outdoor exercise areas, gardens and paths must be kept in a clean, presentable condition.
• Hazards, such as sharp or rough edges, should be removed.
• There should be no standing water (e.g. from cleaning or urine) and any drains must be kept unblocked.
• Drain covers should be designed to prevent the dogs’ paws or nails from becoming caught.
• Interior surfaces should be cleaned regularly and maintained in good order.
• Doors, gates and windows should be escape-proof, able to be secured and locked and be resistant to impact and scratching.
• There should be at least two secure barriers between the dogs and any entrance or exit to your day care.
• Fencing should be strong and in good repair and should be a sufficient height and dig-proof.
• Electrical sockets or appliances in dog-accessible rooms should be secure and protected from potential damage.
• Noise levels, light levels and ventilation should be safe and suitable for different dog breeds.
• The dogs should have access to areas where they can interact safely with other dogs, toys and people.

Provide opportunities for toileting

All dogs should be provided with regular opportunities for toileting throughout the day. You should also take each individual dog’s needs into account when providing opportunities for toileting. Toileting can be indoor or outdoor toileting.

Dispose of waste appropriately

Some of your business’s waste, such as animal faeces, will be classed as hazardous waste. This waste must be disposed of by a registered, authorised waste carrier. Contact your local environmental health department for more details.

Create a written programme

You must create and update a written programme that demonstrates how you provide an enriching environment and effectively monitor behaviour and training. This includes physical activity, mental stimulation, socialisation and play. The behaviour of each dog should be monitored daily and any changes in behaviour should be recorded and reported to the owner.

Check up-to-date veterinary vaccination records

All dogs must have up-to-date veterinary vaccination records that show they are vaccinated against:

• Canine parvovirus.
• Canine distemper.
• Infectious canine hepatitis.
• Leptospirosis.
• Any other relevant disease.

Register with a vet

Your business should be registered with a vet that can be contacted in the event of an emergency. The contact details of the vet should be clearly displayed and easily accessible to all staff members.

The information should include:

• The vet’s name.
• The vet’s address and telephone number.
• An out-of-hours telephone number.

The dogs’ owners should also be informed of which vet your business uses and must be in agreement.

Create an emergency plan

Your business must have a written emergency plan in place that is known and available to all employees and volunteers. Your plan should also be approved by the local authority and should also feature an emergency drill programme that is tested annually. Your emergency plan should also feature details of how you extract the animals in the event of an emergency.

Comply with fire regulations

As the business owner, you are responsible for fire safety measures on your premises.

There are multiple fire regulations you must ensure you comply with, including:

• Conducting a fire risk assessment.
• Complying with the Regulatory Reform (Fire Safety) Order 2005 .
• Implementing any necessary fire safety measures.
• Implementing emergency procedures and ensuring these are clearly displayed.

Implement safety measures

• Suitable fire prevention, fire detection and firefighting equipment should be provided and maintained.
• Entrances and fire exits must be kept clear of obstructions.
• A first aid kit suitable for dogs must be kept on site.
• An emergency contact name and number must be displayed outside the premises.

Comply with the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 2013

RIDDOR states that you must report all injuries, diseases and dangerous events that occur in your business. Reports must be made to the Health and Safety Executive (HSE) using an appropriate recording document. These regulations apply to any incidents that involve a dog, an employee or a visitor to your business.

Comply with the Provision and Use of Work Equipment Regulations (PUWER) 1998

PUWER regulations apply to you and any employees you hire. You must ensure any equipment in your dog day care is fit for purpose and is maintained and inspected regularly. You must also ensure that health and safety risks are minimised to an acceptable level, that you have the correct knowledge and training to use the equipment, and that protective measures are put into place. Equipment should also be used under appropriate conditions.

Comply with the Manual Handling Operations Regulations 1992

Manual handling regulations can help to protect you and your employees from sustaining an injury or illness as a result of manual handling tasks. The regulations apply to the lifting or moving of any objects, bending down and reaching high and repetitive movements. You will likely be performing manual handling activities when carrying out tasks such as handling the dogs, moving equipment or throwing balls.

Appoint a competent person

A competent person should be appointed to help your business meet your health and safety legal duties. You can act in this role yourself or appoint another person to fulfil this role. The competent person should have the skills, knowledge and experience to identify any hazards in your business and put controls in place to protect people from harm.

Prepare a health and safety policy

The law states that every business in the UK must have a specific policy for managing health and safety. Your policy should state exactly how you will manage health and safety in your day care and state who is responsible for specific tasks and how and when these tasks are completed. Follow the recommended tips from the Health and Safety Executive when creating your health and safety policy. You should make your policy easily visible to any visitors to your business.

Comply with employment legislation

If you employ any staff, you must ensure you follow employment legislation, including the Employment Rights Act (1996 ) and the National Minimum Wage Act (1998) . You must also comply with legislation relating to recruitment, working hours, sickness, discrimination, dismissals, and maternity or paternity pay.

Comply with the General Data Protection Regulations (GDPR ) and the Data Protection Act (DPA)

You must comply with both pieces of legislation when storing or sharing personal information, such as your customers’ personal information, contact details and banking information. You must also apply for a Notification to Process Personal Data Licence. You will also need to apply for a licence with the Information Commissioner’s Office and renew your registration every year.

Comply with receipt or invoice requirements

You may make it standard that you provide all customers with a receipt or invoice. Even if you do not make this standard practice, many of your customers will request a receipt.

There are certain pieces of information you should include:

• The word ‘invoice’ or ‘receipt’ and a unique invoice number.
• Your business name and address.
• The client’s name and address.
• A brief description of your work.
• The total you are charging the client and when the payment is due.
• The payment method.

Register your business

You must register your business with HMRC before you begin operating. You can register as a sole trader or as a limited company. You will need to register your business name and any other relevant information.

Register for self-assessment tax

This allows you to calculate and pay your own taxes each year. You will need to track your finances every month and submit any expenses as part of your tax assessment.

As part of your tax responsibilities, you must:

• Record all forms of income and expenses.
• Complete an annual self-assessment tax return.
• Register for VAT if you earn above the threshold (currently £85,000).
• Pay National Insurance contributions.
• Keep a record of your business accounts for the previous five years.

Positives of Owning a Dog Day Care Business

Starting up a dog day care business can be rewarding in many ways.

Some of the main pros associated with this type of business include:

Working with dogs

If you are an animal lover, working with dogs every day can sound like a dream job. You can spend time with different types of dogs, take care of them, play with them and ensure they are mentally and physically stimulated and are happy and safe. Working with animals can be very therapeutic as well as enjoyable.

Mental health benefits

There are multiple mental health benefits associated with spending time with animals. Studies have found that something as simple as stroking a dog can have a positive impact on a person’s mental health.

Some of the benefits you may experience include:

• Lower cortisol levels, resulting in lower overall stress.
• Reduction in anxiety and depression.
• Increased oxytocin levels and mood-boosting endorphins.
• Reduces feelings of loneliness.

Physical health benefits

Working in a doggy day care is very active as you will be playing with the dogs every day, walking around a lot to supervise and you will generally have high levels of physical activity.

Some of the physical health benefits of this profession can include:

• Increased physical activity and improved physical health.
• Reduced blood pressure (related to lower cortisol levels).
• Lower risk of cardiovascular disease.

High demand

With more pet dogs than ever in the UK and people willing to spend more money on their pooches, the demand for doggy day care is higher than ever. High demand makes it more likely that your business will succeed and will allow you to earn a higher profit margin.

Every day is different

Running a day care business will never get boring. Every day will be different and will present new challenges and different activities. You will be working with different dogs, supervising different activities, managing different staff every day and taking responsibility for different tasks. A varied workday helps to keep your job interesting.

A rewarding career choice

Running a doggy day care business can be rewarding in many ways. You can have a positive impact on your community, connect with other people and see your business grow and succeed. If you love animals and are passionate about working with dogs, running a successful business will not only be financially rewarding but also personally rewarding.

Opportunities for new businesses

Unlike many other industries, the doggy day care industry is not dominated by major companies or popular franchises. The majority of day care businesses are small, independent businesses that operate in the local community. This results in more opportunities for small businesses and opens up gaps in the market for new businesses to succeed.

Be part of your local community

You will most likely operate your business in your local area. This allows you to connect with other dog owners and animal lovers in your community, both personally and professionally. You can develop positive relationships, partner with other businesses (e.g. groomers and kennels) and even get involved in community events and fundraisers.

A scalable business

A doggy day care business can have a simple business model, making it easy to set up this type of business. If you want to grow your business, this type of business is highly scalable, as you will already have established strong business relationships and a solid business plan. You can extend your premises, hire more staff, increase the services you offer and open additional day cares in other locations. High demand for your business and high scalability gives you great opportunities for growth.

Unlimited income potential

There is no fixed income or limit on how much money your day care business can make. If you operate at maximum capacity, this allows you to increase your profits. As your business grows in popularity, you can also raise your prices, extend your premises and scale up your business. A doggy day care business has a high income potential and, with a solid business plan, can be extremely lucrative.

Customer loyalty and recommendations

Dog owners tend to use the same day care throughout their dogs’ lives, particularly if their dog is settled there and they have a positive relationship with the staff. Customer loyalty provides you with consistent business and allows you to develop positive relationships with the dogs and their families for many years. Loyal customers are also more likely to recommend your business to other dog owners, increasing your customer base and your profits.

Create a positive work environment

You will be responsible for hiring staff and creating staff policies. This gives you the opportunity to create a positive work environment. You could hire staff that you know will bring positivity to your business, will work well with the dogs and other staff and will be an asset to your business. Your staff will also likely be like-minded people who are also passionate about animals.

Pick and choose the dogs you accept

You can choose to take on as many or as few dogs as you want. If a dog attends your day care that has behavioural issues, doesn’t socialise well with the other dogs, poses a risk to others or you think is not well suited to day care, you can cease working with them whenever you want, as a fixed contract will not apply.

Be as involved as you want

Once your business is established, you can choose to be as involved as you want in the day-to-day running of your day care. You can choose to hire additional staff who handle the vast majority of the care or hire administrative staff to handle the overall running of your business and any business and administrative tasks. You can be as involved as you want.

Be your own boss

You can make all key decisions yourself and steer your business in whichever direction you choose. You can choose how involved you want to be, the type of day care you open, the services you offer and how you want to run your business. You can make the best decisions for you and your business.

Negatives of Owning a Dog Day Care Business

Although owning a doggy day care can be rewarding in many ways, there are some potentially negative aspects to this type of business that you should be aware of:

It can be physically demanding

Although working in a doggy day care can positively impact your physical health, it’s also important to keep in mind that it can be physically demanding. You will be on your feet for hours at a time, handling large heavy dogs, handling equipment, throwing toys and bending down to stroke the dogs or clean. A physically demanding job can result in pain or strain or could even cause an injury. You are also at risk of scratches or bites from dogs.

Anxious or aggressive dogs

Some of the dogs who attend your day care could be extremely anxious or become aggressive, particularly when they first start. Not only can this be stressful for both you and the dog, but it can also be scary dealing with an aggressive dog – especially if they are large and have the potential to cause an injury to you or another dog.

More people working from home

Following the Covid-19 pandemic, more businesses and individuals have recognised the advantages of working from home. With people working from home able to look after their dogs themselves and not requiring the services of day care, this could have a negative effect on your business, particularly if the work-from-home trend continues.

Complying with legislation

There are many different pieces of legislation and legal guidelines you will need to comply with. Not only can this be complicated and time-consuming, but any non-compliance (even if this is accidental) can be punished with a fine or the forced closure of your business. Some types of legislation also require you to go through specific training and/or gain a qualification, which can be costly and arduous. A dog day care business can have high liability which can be a lot of stress and pressure on a business owner.

High liability

You will be responsible for the health and safety of the dogs in your day care. If they become injured, bite a person or another dog, run away from you or cause damage, you will be responsible. As dogs are much-loved members of their families, you could be dealing with angry owners or even receive a visit from the police.

A lot of skill, knowledge and experience is required

To run a successful dog day care business, you will need to be highly proficient in a variety of skills and have a high level of knowledge and experience working with different breeds of dogs. It can be time-consuming to gain the appropriate skills and experience.

Long working hours

Doggy day cares are often open 11 or 12 hours a day, to fit around the owners’ working hours. Some day cares also open at the weekend, to accommodate workers who don’t follow a Monday-Friday shift pattern. This can result in long working hours and few days off. As the business owner, you will have additional responsibilities outside of the day-to-day running of the day care, such as marketing, advertising and administrative tasks. Long working hours can be tiring and can have a negative impact on your personal life, particularly when your business is in the first couple of years of operation.

Work can be inconsistent

If you are not operating at full capacity, you will see a reduction in your profits. Unfortunately, work can be inconsistent and there may be certain times of the year when you are less busy, for example, in the summer when more people take time off work. Inconsistent business can make it difficult to plan your staffing requirements and predict your profits.

It can be stressful

Not only are you responsible for the success of your business, but you are also responsible for the safety and well-being of the dogs and any employees or visitors to your business. You will also have a lot of tasks and responsibilities. Running a dog day care business can be stressful.

It can be difficult to make your business succeed

If there are already established doggy day cares operating in your area, this can make it extremely difficult to grow your own business and make a success of it. Dog owners are more likely to choose a day care that they have used previously, that has been recommended to them or that already has a lot of positive customer reviews.

You have to clean up after the dogs

Picking up dog poop and cleaning urine is one of the worst things about working in a doggy day care. If you are looking after multiple dogs at once, that means you could be cleaning up a lot of mess.

High start-up costs

The equipment needed for a day care business can be expensive, particularly when you consider your premises’ rental and renovation costs. The high start-up costs mean you may need to source outside investment. It will also take longer for you to begin turning a profit. High start-up costs also make your business high risk, as you could potentially lose your investment if the business fails.

Staffing challenges

There are many staffing challenges you could face, such as a lack of staff motivation, customer complaints about staff and staff not fulfilling their expected duties. It can be difficult to create and maintain a positive work environment when working in such a busy environment. You will also have lots of responsibilities related to your staff, such as the hiring process, staff training, day-to-day management, staff rotas and staff payroll. While your business and your profits are growing, you may have to undertake many of these responsibilities yourself. You could also have a high staff turnover rate, which can result in a lot of time spent hiring and training staff.

No benefits

As you are self-employed, you won’t receive benefits such as pension contributions. You will also be responsible for doing your own taxes and organising your National Insurance contributions. You will also have a lack of job security.

Planning Your Dog Day Care Business

An effective and well-designed business plan is essential to the success of your dog day care business. A business plan can help you to focus on the specific steps that will help your business succeed, plan your short-term and long-term goals, determine your financial needs and help your business to grow.

When creating your business plan, ensure it contains information such as:

• Your company information.
• Your company description.
• The services you will provide.
• Your branding, marketing and advertising plan.
• The structure of your business.
• The operational plan for your business.
• The financial plan for your business.

Some of the factors you will need to consider when creating your business plan are:

The size and capacity of your doggy day care

This is an important consideration you will need to make when planning your business.

The size of your business and your capacity limits will depend on multiple factors, such as:

• How big your premises is (in square metres).
• How many employees will be working at one time.
• The skills, training and qualifications of your employees.

Although the size of your business and the number of dogs you care for can change as your business grows and evolves, you will need to consider your available capital (as this will determine the size of your premises). You should also consider your local market to see how high the demand is likely to be for your day care.

The services you will offer

As well as providing day care services, there may be other services you choose to provide, such as obedience training, dog walking, drop-off and pick-up and feeding. Consider your own skills, training and experience and how profitable different services are likely to be when making your decision.

Your business location

Your location will have a significant impact on the types of customers you are likely to attract. It will also impact your premises’ rental costs. If your business is located in a place popular with your target market or is easily accessible to customers, the increased custom and higher profits will be extremely beneficial to your business. Consider your rental budget and your size requirements when choosing your premises.

Your staffing requirements

Your staffing is another important consideration you will need to make. If you run an at-home business, you may be the sole worker, whereas if you open a business premises, you will likely need to hire employees. Remember that each employee on shift can only look after a maximum of 10 dogs at one time. When hiring your staff, consider their qualifications and experience. Keep in mind that your staffing requirements could change as your business grows and evolves.

Your target market

Determining your target market is a key step in helping your business succeed. Different types of doggy day care businesses and different services will attract different customers. Some other factors that can influence your target market are your premises and equipment, your qualifications and experience, your location, your reputation and your pricing strategy. Once you have identified your target market, you can then focus on how to attract these customers to your business.

Your local competition

Being aware of your competition is an important step to ensuring the success of your business. Analysing your competition allows you to look at what they do well and what you think can be improved upon. Look at your competitors’ facilities and equipment, the services they offer, their pricing, their target market and the number of employees they have. Analysing your competition also identifies whether there is space in the market for your business.

Your brand and your unique selling point (USP)

Creating your brand is a key way to ensure you stand out from your competition. Branding can help you to focus your target audience, attract customers and concentrate your marketing and advertising strategies. Some ways you can create your brand are by focusing on your business’s visual identity, designing your premises and website and creating a brand story. Your USP can also be part of your brand and can help your business stand out from your competitors. Consider what makes your business special and how this fits into what defines your business.

Your marketing and advertising strategies

Marketing and advertising are especially important when you first open your dog day care business. Your marketing strategy needs to be effective and budget friendly. Consider your target customers and the best way to reach them.

Some ways you can market and advertise your business are:

• Build a functional and attractive website.
• Advertise in your local community e.g. in dog parks.
• Offer special deals and introductory offers to build your customer base.
• Post leaflets in your local area.
• Partner with local businesses, e.g. dog groomers and pet product shops.

Your equipment requirements

Consult the list above to determine your equipment requirements. The equipment you require will depend on the type of day care business you set up and how big your premises is. Once you have determined your equipment requirements, you can then calculate the initial costs of purchasing the equipment and the monthly replenishment costs (e.g. for dog treats and poo bags).

Your start-up costs and running costs

Consult the list above to help you calculate the approximate costs of setting up and running your business. Determine what equipment you need and the amount of equipment, as well as the cost of your premises, to help you determine your start-up costs and what your initial investment requirements will be. You can then calculate whether you can finance your business yourself or whether you need to source outside investment, for example from a bank or an independent investor. Determining your start-up costs and running costs can also help you to create a budget and predict when you will begin to turn a profit.

Financing your business

Consult the list of start-up costs and running costs above to determine what capital you will require. Can you finance the business yourself or will you need to source outside investment? You will also need to calculate when you are likely to begin turning a profit. If you require outside investment, you could consider a bank or other financial institution, a business loan or an investment partner.

Your pricing policy

How will you price your services? Will you price per hour, per day or per week? Will additional services be priced individually? Will you offer discounts to customers with multiple dogs? Consider the pricing of your competitors and your running costs when setting your own prices.

Your sales forecast

How many dogs can you take care of at one time? Are there certain times of the year that are likely to be busier than others? What are your weekly, monthly and annual sales forecasts? You can analyse the sales forecasts of similar businesses and look at how sales vary throughout the year to estimate demand. As your business grows, your sales forecast is likely to change.

Your strategy for growth

Your strategy for growth is the actions you will take to realise your goals for expansion and any potential challenges your business could face and how you will avoid or overcome them. This can help to make your business more successful.

Potential challenges could include:

• High local competition.
• Not running at full capacity.
• Lack of long-term customers.

Some potential strategies for growth include:

• Hire more employees.
• Expand your premises.
• Offer discounts to new customers.

Your business summary

Your business plan should include a detailed overview of your business, including the type of doggy day care you are setting up, the services you will offer, your typical customer base, your staffing and equipment requirements and your business goals.

Your business goals

Your business goals or objectives are an essential part of creating your business plan. Your business objectives highlight the targets and goals of your dog day care business and help you to create a one-year, three-year and five-year business plan.

Your business objectives should be SMART:

• S = Specific
• M = Measurable
• A = Achievable
• R = Realistic
• T = Time-bound

Check you have complied with all legal requirements

Consult the list of legal requirements above to check you have complied with all requirements and regulations and that all your paperwork is accurate. Failure to comply with legal requirements could have a detrimental effect on your business or could result in a fine, the forced closure of your business or, in serious cases, prosecution.

Download our business plan

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YJB business plan, 2024 to 2025

Business plan for the Youth Justice Board for England and Wales (YJB).

Applies to England and Wales

Yjb business plan, 2024 to 2025 (print version).

PDF , 1.13 MB , 30 pages

YJB business plan, 2024 to 2025 (odt version)

ODT , 1.24 MB

This file is in an OpenDocument format

YJB business plan, 2024 to 2025 (Welsh language version)

PDF , 1.05 MB , 32 pages

This business plan outlines:

• how we use oversight and evidence to prevent offending and make communities safer
• how we will advance the adoption of a Child First youth justice system 
• our areas of strategic development during 2024-25
• how we use the resources we have available

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