How to Start a Child Care Center or Family Child Care Home

Start a profitable child care center.

Since many families depend on two household incomes, child care centers are in demand. Typically, most provide child care services during normal business hours. Some centers only accept infants or toddlers while others accept ages up to 12 years. Some facilities offer short-term, long-term or drop-off services. Opening a new child care center can be profitable if a good business plan exists.

Instructions

1. Research the child care business. Learn about state requirements for opening child care centers. State regulations can cover feeding schedules, teachers, aides, square footage per child and other necessities. Write a business plan that includes business research, market analysis and financial forecasting. Business-plan templates can be found online. Contact the Small Business Administration for start-up assistance. Decide what type of child care center you will open such as a home or facility center. Pick a business name.

2. Pick a location in a visible area. Arrange for a real estate agent to find properties that used to be day cares. Contact your zoning department about location regulations. Conduct market research to make sure your targeted area is ripe with potential customers. For example, an ideal area for a child care center would be near subdivisions and apartments.

3. Legalize your child care center with the appropriate business licenses. Register for state, local and federal tax identification numbers. Decide what your business legal structure will be such as a sole proprietorship or limited liability company. Contact the health department about securing a permit to serve food and drinks. Consult with the state day care commission about proper procedure to follow during feedings and nutrition. Take CPR and first-aid classes.

4. Contact distributors about medical supplies, day care equipment and kids' social activity games. Pick suppliers with good customer service, product quality and delivery time. Research state and local laws about certain day care equipment needed. Purchase puzzles, games and toys. Ensure that all equipment is child-friendly. Set up a good accounting system. Hire and conduct background checks on prospective employees.

5. Fireproof your day care center if required by your state. Have an exit plan in place in case of emergency. Schedule an inspection by state health officials in advance of opening. Depending on the state, a child abuse prevention class can be required.

6. Market your new child care business. Post fliers on hospital bulletin boards, grocery stores and other public locations. Run advertisements in the newspaper, on television and on radio. Design a website with your day care information. Stage a grand opening.

References

• "Day Care Source": Starting a day care
• "SBA": Small business planner
• "National Child Care Association": Training