Checklist for Starting a Daycare Business

Congratulations on starting a daycare business! Whatever your reason, whether you’re a nanny with a vision or a parent who sees a need, you’ve got a complicated and arduous task ahead of you. Arm yourself with the right information, develop a clear plan, and stay organized.

Your success in starting your own daycare business will depend on careful management of the process from start to finish.  



Find out about licensing requirements for daycare centers and small businesses

Your local government will have rules and regulations that will govern you as a small business owner and as a daycare business owner, and you want to strictly comply with both.  Start by checking out Child Care Aware of America’s licensing guidelines, and then research your specific state and city. If you’re in California the Child Care Resource and Renewal Network should have all the info you need.

Write a daycare business plan

This is a big task, but due diligence and hard work at this stage will inform the rest of the process. Here you’ll hash out your mission statement, marketing plan, organizational plan, staffing, operations, budgets, and more. You’ll need to do your research, with a focus on understanding the costs involved in successfully launching a profitable daycare business. Are you using your own money, or are you seeking a small business loan? Have you looked into daycare grants? The U.S. Small Business Association’s website has detailed instructions on creating each necessary piece of a successful business plan

Find a location for your daycare business

Are you opening a small in-home daycare, looking for an existing daycare center to rent, or starting from scratch building a new facility? In any case, you’ll need to find your daycare business a home. Check your city’s zoning laws and childcare licensing guidelines when you’re making this decision to be sure your location is compliant.

Get insurance for your daycare business

Depending on the type and size of your daycare, you’ll need insurance policies of several different types, including liability, property, workers’ compensation, and business insurance. Again, check the licensing requirements for guidance.

Prepare your daycare facility

You’ll need furniture and supplies, obviously, but you’ll also need safety equipment such as fire extinguishers, disaster supplies, etc. Running a daycare business comes with lots of safety issues that you’ll need to be ready for.

Develop policies and procedures

Working off of your daycare business plan, write out policies, procedures, and handbooks for your staff and families. Child Care Aware offers a detailed guide to this process. You’ll also develop a disaster or crisis management plan and health, safety, privacy, and nutrition protocols, all under the guidance of your local childcare licensing requirements.

Hire staff to help you run your daycare

Verify the licensing requirements for staff ratios and teachers’ educational backgrounds. Daycare staff may be subject to criminal background checks and fingerprinting, and be sure to rigorously verify references and education levels. A daycare center is only as good as its staff, so make your hiring decisions carefully.

Use childcare management software to run your day-to-day

Take advantage of the fantastic technology available to daycare business owners these days. Streamline your administrative tasks and you’ll have more time to focus on providing your families a top-notch childcare experience--which is your whole goal anyway, right? Brightwheel is an easy-to-use daycare software app that will help you manage your business and stay in touch with families. Your staff will use brightwheel for recording and tracking daily events and activities, and parents get real-time updates delivered to their mobile device throughout the day. This powerful daycare app also offers secure, digital check-in/check-out, and an automated paperless daycare billing system. This is a great way to keep your families looped in on daily activities.

Market your daycare business and seek applicants

At the very least you’ll need marketing collateral and an online presence. List your daycare center in any local directories of childcare businesses and participate in daycare or preschool enrollment fairs in your area. Advertise through local businesses, parent groups, local events, popular blogs. Try sites like Parenthoods, Red Tricycle, and Winnie. Run a social media campaign focusing on your target population, or host a grand opening event to attract families. Once you’ve managed to fill your inaugural child roster, continue with ongoing marketing efforts so that you’ll always be building a customer base.

Brightwheel is everything you need for your daycare business, in one simple app. Download it today!

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