How To Start A Daycare Business

By Mike Gomez

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Around 65% of children are enrolled in some sort of daycare. 

With very little financial investment needed upfront and a huge market to tap, the potential for making a great profit is there.

But that is only if you know what you’re doing.

This article and the purpose of our Daycare Mastery Guide is to ensure that you’re successful. 

This job will be perfect for you if you have a maternal and nurturing personality.

Are you okay with being around kids even at their worst?

Do you enjoy conversing and talking with them?

Do you not mind watching dozens of young kids at the same time?

Starting a daycare business may not seem like much of a job if you enjoy children and do not mind taking care of them.

There are millions of parents with kids who do not have the time or flexibility in their schedule to be with them all the time.

When these parents are looking for someone, they want to find a place or a person that they trust to care for their children.

So long as you have the patience and energy to take care of the kids, you can earn great money and create a bond with the children and their parents as well.

How Big is the Day Care Business?

The number of people in the world is growing, which means there are more children.

According to a survey from Sageworks, the daycare business is booming and is expected to continue to rise through 2020.

It is currently a $48 billion dollar business and employs about two million people in the United States.

So long as you make sure you are seen and you have a clean background, you will have no issue with parents wanting to hire you.

Why Starting a Day Care Business Now is a Good Idea

Most people who open a daycare will be women and they like it because they can work on their own time and do something that comes as a second nature to them.

You will likely become familiar with a lot of parents and form bonds.

Working may be nothing more than playtime for you.

  • You can easily eliminate commuting expenses
  • Write off a percentage of your home, car, and grocery bills.
  • Spend more time with your kids

Day Care Business Facts

How Much Could I Make?

An average amount would be $25,000-80,000 a year.

It will depend on whether you decide to work part-time or full-time, but the average daycare owner can earn $20-40 an hour.

How Much Will It Be to Start Up?

Between $10-50,000 depending on where you operate (your home or an actual building).

Starting a day care business from your house could mean you start up with virtually no cost.

Purchasing or renting a facility will raise your upfront costs tremendously. 

Do I Need To Have Any Special Skills?

The good thing about kids is that there is not much you need to do to keep them happy and entertained.

However, they can get out of hand and misbehave so you have to know how to react to it and properly discipline them.

Many of us are used to babysitting our siblings or other relatives, the only difference with this is you will be paid now for your helping hands. Isn’ it wonderful?

How Much Should I Charge My Clients?

You will either want to charge them by the hour, day or week depending on how often they come to you.

Here are our suggestions: 

Full-Time Charges

Infant or Young Toddler (0 to 2 Years)

  • Weekly – $375
  • Monthly – $1,625

 Older Toddler/Preschooler (2- 3 years)

  • Weekly – $300
  • Monthly – $1,300

 Part Time Charges

Infant or Young Toddler (0 to 2 years)

  • 1x per Week – $120
  • 2x per Week – $210
  • 3x per Week – $295
  • 4x per Week – $350

 Older Toddlers and Preschoolers (2-3 years)

  • 1x per Week – $95
  • 2x per Week – $170
  • 3x per Week – $235
  • 4x per Week – $280

What Do I Need to Start My Daycare Business?

Your Daycare should at least have activity mats, activity sheets, reading books, toys, coloring books, stencils (like crayons, pencils, and markers), ruler and a writing board.

It should also have a sleeping area for when the children nap and appropriate food for them to eat (if you charge for it).

Can I start from home? Yes.

Average startup cost: $10,000 – $50,000

How many people work in the industry (US): 2 million

Average Earnings: $25,000 – $100,000

How daycare providers find customers: Through referrals, schools, homes and tutoring businesses

Detailed Startup Requirements

Legal: $1,000

Brochures: $350

Stationary: $100

Medicine Kits: $100

Cleaning Supplies: $100

Art Supplies: $150

Kitchen Supplies: $200

Mats and Pillows: $150

Total: $2,150


Daycare Business Ideas

Remember that although you are taking care of kids, it is the parents you want to please.

There is no better way to do that than by interacting with the kids often and providing them with neat activities that get their minds and bodies going.

Have pictures of the facility when you are advertising your daycare; parents like to see active and caring people watch over their kids.

Your brochures could feature all the activities that take place on a daily basis

Or maybe you’ll show all the artwork the kids create

Day Care Business Name Ideas:


The Kids Club                                                                                                             Kiddie College

Stacy’s Adventurous Daycare                                                                       Kelsie’s Kid Kingdom

Fun and Play Day Care                                                                                  Little Angels Daycare

The Kid Corner                                                                                                       Rock’n Day Care

Lil Munchkins                                                                                               Jenny’s House-O-Play

Love and Learn PlayHouse                                                                                             Kids Learn

Tiny Feet                                                                                                           Imagination Station


 Youtube Videos



Related Content:

Startup Costs for Opening a Daycare Center

Preparing a Day Care Start Up Budget

Child Care Business Guide

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