How to Start a Daycare Business

Are you thinking about starting a daycare business? If so, you need to know how to start a daycare business and this involves nine main steps you need to consider before getting started.

In this post I will take you through these 8 steps and show you what you need to do before opening a daycare business in your city.

Step 1: Be Clear on Why You Want to start a Daycare Business 

Before learning how to start a daycare business, are you clear as to why you may want to start a daycare business?

There are many reasons to open a daycare, I know, but it had to be clear in your mind that this is what you want.

Perhaps you have a passion for working with children and want to turn that passion into a business, or maybe you’re a stay-at-home parent who’s looking for a way to earn an income while still being able to spend time with your own children. 

Whatever your reason, starting a daycare can be a rewarding experience both personally and financially. As the number of working parents continues to increase there is an ever-growing demand for quality child care. 

By starting your own daycare business you can help meet this demand while also providing a valuable service to your community.

Step 2: What Type of Daycare do you want to Open?

There are different types of daycare that you can start, each with its own set of benefits and challenges. The most popular types of daycare business that you can start are

Home-Based Daycare 

This type of daycare is typically run out of the provider’s home and can be a great option for those who want more intimate settings for their children. However home-based daycares can be more difficult to get up and running due to zoning and other regulations.

Center-Based Daycare 

These types of daycare centers are typically larger and have more staff than home-based centers. They also tend to offer more amenities and activities for children, however they can be more expensive to start and operate than home-based centers.

Specialty Daycare 

Speciality Daycares are specialized types of daycare centers, such as those with a focus on infants or toddlers, or those that cater to kids with special needs. These types of centers can be more expensive to start than traditional centers but they may be in high demand in your community.

infant and toddler daycare

Step 3: Name Your Daycare Business

The name of your Daycare is extremely important as it sets the tone for your business. It’s the first thing customers find, and it’s how they find you. The name represents your Daycare Business brand and it show inspire confidence to you, your employees and your clients.

For a guide on how to choose a good name for your Daycare check out our List of Daycare Name Ideas.

Step 4: Get a License

In order to open a daycare center you will need to obtain a license from your local or State government. 

The requirements for obtaining a license vary from state to state, but generally speaking you will need to submit an application and pay a fee. You can read more about the details here.

Once your application has been approved you will be issued a license that must be displayed in a prominent place at your Daycare facility. 

Step 4: Decide on a Good location for your Daycare Business 

When opening a daycare center it is important to choose a location that is easily accessible to parents and guardians who will be dropping off and picking up their children.

The location should also be safe and secure with plenty of space for the children to play and learn. The building itself should be spacious, clean and welcoming with age-appropriate toys and equipment for the children in your care.

If you are renting space for your daycare business, be sure to get all the necessary permits and licenses from the landlord before moving in.

Step 5: Create a Fun and Safe Environment for Kids 

As a daycare center owner you want to create a fun and safe environment for the kids in your care. 

Make sure to carefully screen all potential employees and only hire those whom you feel comfortable and trusting with the care of your young pupils. 

All staff and parents should be aware of the safety procedures in place at your daycare center. Be sure to have a plan for dealing with potential emergencies such as a fire or severe weather conditions. 

Kids need to burn off energy so make sure there is plenty of space for them to run around and play games, both indoors and outdoors. 

In addition to active play, kids also need stimulating activities to keep them engaged mentally. Age-appropriate activities that are both fun and educational will help keep your daycare center top of mind for parents looking for high quality child care options.

Step 6: Working Plan for Daycare Business

To start a Daycare business you’ll need to prepare a proper business plan. 

First, research the cost of opening and operating a daycare center in your area. 

You’ll also need to determine the amount of space you’ll need to accommodate your projected numbers of clients.

Once you have an idea of the startup costs and space requirements you can begin to put together a more detailed budget and timeline for your business.

Step 7: Hire Staff and Prepare a Marketing strategy for your Daycare

First you’ll want to make sure that your staff is passionate about working with children and committed to providing high quality care.

Second you’ll need to develop a marketing strategy that targets both parents and children. You’ll want to create and portray a warm and welcoming environment at your daycare center that makes parents and children feel comfortable and safe.

Promote your business, create flyers and posters to hang around town and post on online classified websites. You can also offer discounts or promotions to attract new customers.

Step 8: Define your Target Market 

What is your target market? Are you going to focus on infants toddlers or school-aged children? Each age group has different care needs. 

You will have to develop a schedule and curriculum that meets the needs of your target market. Infants will need a different schedule and different activities than toddlers or school-aged children.


I am a branding and naming consultant with 16 years of experience. I believe in building a strong brand name that identifies your visions and that of your business. A brand identity motivates you and your team to achieve success.

Leave a Comment