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Costs of Opening a Day Care Center

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By Rhonda Bunton
eHow Contributing Writer
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Costs of Opening a Day Care Center
Costs of Opening a Day Care Center
Kevincollins: Flickr

When planning to open a day care center, how much money you need to spend to start your business will be a major concern. There are many expenses that go into starting a day care center and, while some are optional, many costs are necessary.

    Location

  1. To open a day care center, you will either need to use space in your own home or lease a commercial building. When using your home as the site for your day care center, your location expenses will be minimal--you may only have to pay to deep clean the area you plan to use and child-proof it. You should expect to spend about $250 to prepare your home to be turned into a day care center.

    Leasing a building will cost more money initially and in the long run, but it is the option used by most start day care centers. You should look for a space that is in a safe area of town that is also convenient for parents to travel to. In addition, it is ideal to lease at least 1,500 square feet of space and to have a building with space for the children to play in outside. Depending on the city you are in, you can expect to pay between $800 and $1,500 per month to lease a suitable building.
  2. Equipment

  3. Equipment that is commonly used by day care centers includes small desk and chair sets, toy boxes, toys, books, shelving and storage that is child-sized, educational décor and posters, playground sets, cold storage for lunches, changing tables, potty chairs, cribs and nap mats. The type and amount of equipment you get for your day care center is up to you, and the amount you spend will depend greatly upon what brands you choose. Don't try to save money by buying poor quality equipment--make sure everything is safe.

    Set a budget of between $1,500 and $2,500 for equipment. Look in second-hand children's stores for used equipment that is still in good condition to save money.
  4. Advertising

  5. To gain business, you will need to advertise. Ways to advertise include placing print and online phone book ads, adding your site to day care center directories, joining day care service provider associations, handing out fliers and business cards, and purchasing banner ads on niche parenting blogs and websites that focus on your city. Plan to set aside $500 for advertising your day care center initially.
  6. Certifications

  7. Although certifications are optional in most areas, many day care center owners see them as necessary for the safety of the children they care for, and they also add greatly to a day care center's credibility. One of the most common certifications day care centers get is child and infant CPR certification for all staff members. CPR classes can be taken from the staff at your local Red Cross as well as some YMCA centers and fire fighter associations. Child and infant CPR certification typically costs $50 to $75 per person, depending on the city you live in.
  8. Staff

  9. Unless you plan to run an in-home day care center, you will need to hire qualified staff members. Salary is not the only expense related to staff--you will also need to pay for background checks and drug testing. The fees for these services can range from $25 to $50 per person for background checks, and urine drug testing costs between $10 and $30 per person, depending upon how many people you have tested.

    As far as salary, expect to pay at least $18,000 per year for each staff member. That figure will depend on the city you live in but also whether you offer benefits and what educational credentials you require.
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