Start a Daycare Business – Start-Up Costs

If you are to get into the child care business you will require start up capital to get your new business off the ground. Depending on the style of daycare center that you are planning, these costs can range anywhere from four figures up to hundreds of thousands of dollars.

To get started off the right way you must be aware of all the expenses that you can expect and you can do this by writing them down in a list. Below we go over some of the major start up expenses facing new players wanting to get get into the industry.

1) Location and Building – The main concern when it comes to startup costs is whether you start a daycare from your home or lease commercial premises. It is possible to run an extremely efficient business from home although you will lose large parts of your family’s living environment. There are also redecorating costs associated with converting part of your home into a daycare environment that is suitable for children.

2) Business Licensing, Safety and Compliance Costs – Fire safety equipment like extinguishers and alarms must be installed, other safety equipment must be purchased and the daycare area must be fenced to keep children within a safe play zone. A business license and other relevant permits must also be figured into initial costs.

3) Necessary Equipment – You will have to buy childrens toys, games, play structures and art supplies to name just a few things. Having a good idea of your schedules and the age group that you are targeting is the key for calculating your requirements accurately. When it comes to purchasing furniture, toys and other items always go for items of the best quality as children can wear things out quickly.

4) Administrative Area – You will have to arrange an area that can be used as an office. Expenses for this could include office furniture,stationery, phone line connection and Internet connection.

5) Unforeseen Startup Costs – While you can be reasonably thorough in your cost estimates and your lists of expected needs you will undoubtedly come across costs that you did not anticipate or costs that end up being more expensive than you expected. You must allow for these uncertainties when you do your cost planning.

6) New Business Promotion – Costs involved with advertising the daycare business will include branding (logo design), advertising costs, and costs associated with holding an opening event.

It is important to stay disciplined as you set up a home daycare business and to stop set up expenses from getting completely out of control. But at the same time you need to have spent enough by opening day that your premises are looking fully organized and professional with a set up that attracts the parents of young children to your services. Carefully budgeting for your daycare business startup costs will go a long way to determining your level of success in the first few months of your business life.