early childhood education business plan

Child Care Business Plan Template

Written by Dave Lavinsky

  Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their child care centers. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a child care business plan template step-by-step so you can create your plan today.

Download our Ultimate Child Care Business Plan Template here >

What is a Childcare Business Plan?

A business plan provides a snapshot of your child care business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan as a Childcare Provider

If you’re looking to start a childcare business or grow your existing one you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your child care in order to improve your chances of success. Your childcare business plan is a living document that should be updated annually as your business grows and changes.  

Source of Funding for Child Care Businesses

With regards to funding, the main sources of funding for a child care business are bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a child care is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.  

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How to write a business plan for a childcare business.

A childcare business plan should include 10 sections as follows:

Executive Summary

• Company Overview

Industry Analysis

Customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of child care facility you are operating and the status; for example, are you a startup, do you have a child care that you would like to grow, or are you operating a chain of child care businesses.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the childcare industry. Discuss the type of child care you are operating. Provide key details regarding your direct competition. Give an overview of your target audience. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will describe your business concept for a child care business that you are currently operating or plan to open.

For example, you might operate one of the following types:

In addition to a business description, the Company Analysis section of your business plan needs to provide background on the business. Include answers to question such as:

• When and why did you start the business?
• What is your mission statement?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new program offerings, etc.
• Your legal structure. Are you incorporated as an S-Corp? A Limited Liability Company? A sole proprietor? Explain your business structure here.

In your industry analysis, you need to provide an overview of the child care business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the child care industry educates you. It helps you understand the local market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards child care that includes transportation, it would be helpful to ensure your plan calls for such a service.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the child care business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the target market?
• What trends are affecting the child care industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your child care. You can extrapolate such as figure by assessing the size of the market in the entire country and then applying that figure to your local population.

The customer analysis section must detail the target customers you serve and/or expect to serve.

The following are examples of customer segments: working parents, young families, baby boomers caring for grandchildren, etc.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most child care businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your potential customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

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Your competitive analysis should identify the direct and indirect competitors your business faces and then focus on the latter.

Direct competitors are other child care businesses.

Indirect competitors are other childcare options that customers have that aren’t direct competitors. This includes keeping children at home and/or after school programs among others.

With regards to direct competition, you want to detail the other child care businesses with which you compete. Most likely, your direct competitors will be child care centers located within the same residential neighborhood or very close to your local area.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What child care services do they offer?
• What times are they open?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective.

The final part of your competitive analysis section is to document your unique value proposition. For example:

• Will you provide superior child care services?
• Will you provide child care services that your competitors don’t offer?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a child care business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of child care that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, will you over technology or exercise classes to the children?

Price : Document the competitive pricing strategies you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your child care. Document your location and mention how the location will impact your success. For example, is your child care located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your child care marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some marketing efforts you might consider:

• Social media marketing
• Reaching out to local bloggers (particularly “mommy” bloggers) and websites
• Local radio advertising
• Banner ads at local venues

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your child care such as discussions with prospective new customers, procuring supplies, cleaning and sanitizing the facility, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th child, or when you hope to reach $X in sales. It could also be when you expect to hire your 4th employee or launch a new location.

To demonstrate your child care’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in the child care business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in childcare businesses and/or successfully running retail and small businesses.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your ongoing expenses to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 10 children per day or 50? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your childcare center, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow forecast will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 childcare contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your financial projections be sure to include several of the key start-up expenses needed to open a childcare center:

• Center build-out including design fees, construction, etc.
• Cost of fixtures like tables, chairs, couches, etc.
• Cost of equipment used like computers and televisions
• Staffing costs for support staff members
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your childcare center design blueprint or location lease.

Free Business Plan Template for Childcare Providers

You can download our child care business plan PDF .

Childcare Business Plan Summary

Putting together a business plan for your childcare facility will improve your company’s chances of success. The process of developing your plan will help you better understand your target market, your competition, and your customers. You will also gain a marketing plan to better attract families, a business operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Growthink’s Ultimate Child Care Business Plan Template allows you to quickly and easily complete your Child Care Business Plan.

Additional Resources For Starting a Childcare Center

• Opening & Running a Child Care Center
• Marketing Your Child Care Program
• Childcare Licensing and Regulations

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how our professional business plan writers can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Preschool Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Education Sector » Schooling

Preschool industry operators provide daycare services for children under the ages of three and four to prepare them for kindergarten.

The dispersion of the preschool programs reflects in the geographic distribution of the children, which is also influenced by the cost and supply of preschool programs, income and housing affordability patterns, labor, and child care subsidy policies.

Also, varying state and local regulations and licensing requirements affect employment in this industry. Preschools are under the Early Childhood Learning Centers Industry and the market size, measured by revenue of the Early Childhood Learning Centers industry is $10.7bn in 2023. The industry is expected to increase by 4.6% in 2023.

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Steps on How to Write a Preschool Business Plan

Executive summary.

Auntie Lavendar® Preschool, Inc. is a standard and well–equipped preschool that will be located in a well-populated residential estate in Ashville – North Carolina, USA. We provide daycare services for children under the ages of three and four to prepare them for kindergarten.

Aside from the fact that we will operate a preschool center, we will also propvide in-home tutoring – we will go to the homes of our students as demanded by their parents. Donald Derrick is the founder and CEO of Auntie Lavendar® Preschool, Inc.

Company Profile

A. our products and services.

Auntie Lavendar® Preschool, Inc. will provide a wide range of services that revolves around providing daycare services for children under the ages of three and four to prepare them for kindergarten. Our services are designed to give early childhood education to kids under the age of 4 and also help provide relief to parents when they need to be away from their kids for a period of time.

b. Nature of the Business

Auntie Lavendar® Preschool, Inc. will operate the business to consumer business model (B2C).

c. The Industry

Auntie Lavendar® Preschool, Inc. will operate under the Early Childhood Learning Centers Industry.

d. Mission Statement

Our mission is to provide safe and secured daycare facility and services geared towards educating and taking care of kids of a certain age. We are all out to prepare kids for kindergarten.

e. Vision Statement

Our vision of establishing our preschool is to grow the business to be amongst the top three preschools in the whole of the United States of America.

f. Our Tagline (Slogan)

Auntie Lavendar® Preschool, Inc. – Rasing and Educating Golden Kids!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Auntie Lavendar® Preschool, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ personal assets from claims against the business, including lawsuits.

h. Our Organizational Structure

• Head of Preschool (President)
• Preschool Administrator
• Account Officer
• Early Childhood Educators
• Front Desk Officer
• Cleaners and Nannies
• Security Guards

i. Ownership/Shareholder Structure and Board Members

• Sophia Lavendar (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
• Solomon Lavendar (Board Member) 19 Percent Shares
• Adrain Lavendar (Board Member) 10 Percent Shares
• Larry Brad (Board Member) 10 Percent Shares
• Lauren Williams (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal Location for preschool business
• Highly Experienced and Qualified Employees and Management
• Highly Secured and Clean Facility
• Highly structured programs aimed at giving kids early childhood education and to prepare them for kindergarten.

b. Weakness

• Financial Limitations
• Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• Growth in per capita disposable income influences demand for early childhood learning centers. Households with higher disposable income are more likely to be able to afford higher-quality child care and, thus, will be more likely to demand higher-cost services. Per capita disposable income is expected to increase in the coming year, presenting an opportunity to the industry.

i. How Big is the Industry?

The early childhood learning industry is indeed a big industry. The market size of the is projected to be over $10.7 billion in 2023.

ii. Is the Industry Growing or Declining?

Available statistics point to the fact that the industry is presently not growing and revenue for the industry has been adjusted from an increase to a decline.

Please note that from 2022 the revenue of the industry is anticipated to start growing as the economy recovers and COVID-19 (coronavirus) cases subsequently drop in line with the nationwide vaccination rollout. As a matter of fact, available data shows that the industry is projected to grow by 4.6 percent in 2023 recovering from a decline of -3.8 between 2017 and 2022.

iii. What are the Future Trends in the Industry

The early childhood learning centers industry is changing, and players in the industry are improvising. No doubt, technology, kids-friendly legislature and customized software will change the landscape of the industry going forward.

iv. Are There Existing Niches in the Industry? If YES, List them

No, there are no niche ideas when it comes to preschool line of business.

v. Can You Sell a Franchise of your Business in the Future?

Auntie Lavendar® Preschool, Inc. has the plans to sell franchise in the nearest future and we will target major cities with a growing numbers of parents in the United States of America.

• Lack of support from stakeholders and the government
• Unfavorable government policy and regulations.
• Community resistance (May not want such facility to be located in their community)
• Liability problems
• Arrival of competitors within our market space.

i. Who are the Major Competitors?

• The Episcopal School
• Pacific Northern Academy (PNA)
• Westside Neighborhood School
• Lowell School
• East Linn Christian Academy
• Cambridge-Ellis School
• Saint Ann’s
• The Children’s School.
• Germantown Friends School
• Beyond ABCs
• Mary Institute and Saint Louis Country Day School
• Avenues World School
• National Child Research Center
• Wetherby-Pembridge School
• University of Chicago Laboratory Schools
• Greenhill School
• Presidio Knolls
• Ecole Bilingue de Berkeley
• Gems World Academy
• Bank Street School.

ii. Is There a Franchise for Preschool?

Yes, there are franchise opportunities for preschool and here are some of them;

• Genius Kids (Initial investment: from $122,000)
• KLA Schools (Initial investment: from $1,100,000)
• Adventure Kids Playcare (Initial investment: from $385,000)
• Primrose Schools (Initial investment: $652,000)
• Discovery Point (Initial investment: from $405,570)
• Lightbridge Academy (Initial investment: from $581,000)
• Building Kidz School (Initial investment: from $214,000)
• KidsPark (Initial investment: from $261,000)
• Montessori Kids Universe (Initial investment: from $424,000)
• The Goddard School (Initial investment: from $698,000)
• Kiddie Academy (Initial investment: from $400,000)
• The Learning Experience Academy of Early Education (Initial investment: from $544,000).

iii. Are There Policies, Regulations or Zoning Laws Affecting Preschools?

Yes, there are county or state regulations and zoning laws for preschools, and players in this industry are expected to work with the existing regulations governing such business in the county or state where their business is domiciled.

For example, the designated area for children’s activities should contain a minimum of forty-two square feet of usable floor space per child. A usable floor space of fifty square feet per child is preferred. However, you may be subject to local permits depending on how you plan to operate your preschool.

Marketing Plan

A. who is your target audience.

i. Age Range

We will admit children between the ages of 2 and 4 years old.

ii. Level of Educational

We don’t have any restrictions on the level of education of those we will admit their kids to our preschool.

iii. Income Level

We don’t have any cap on the income level of those we will admit their kids in our preschool.

iv. Ethnicity

There is no restriction when it comes to ethnicity of the people we are looking forward to admit their kids in our preschool.

v. Language

There is no restriction when it comes to the language spoken by the people we are looking forward to admitting their kids to our preschool, however, we will prefer people who speak the English language.

vi. Geographical Location

Any parent from any geographical location will be welcome to enroll their kids in our preschool.

vii. Lifestyle

Auntie Lavendar® Preschool, Inc. will not restrict any parent from accessing our facility and services based on their lifestyle, culture or race.

b. Advertising and Promotion Strategies

• Host Themed Events That Catch The Attention of Parents.
• Tap Into Text Marketing.
• Use FOMO to Run Photo Promotions.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels Into a Resource
• Develop Your Business Directory Profiles
• Build Relationships With Other Parent Associations in our Area

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage on direct sales, direct mail (postcards, brochures, letters, fliers), referral (also known as word-of-mouth marketing).

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing.
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our clients.
• Create an efficient content marketing strategy.
• Create a community for young parents and intending parents.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Auntie Lavendar® Preschool, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package. In all our pricing strategy will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, parent clubs, and clinics to help refer parents to us.

Auntie Lavendar® Preschool, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted.

b. Inventory Strategy

The fact that we will need toiletries, change of beddings, supplies and food per time means that Auntie Lavendar® Preschool, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Auntie Lavendar® Preschool, Inc. will make available to her donors and contributors;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Return Policy, Incentives and Guarantees

At Auntie Lavendar® Preschool, Inc., we offer services, and the nature of the services we offer does not accommodate return policy, but we will guarantee parents that their kids will get the best of early childhood learning and education.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer’s feedback. This will help us provide excellent customer service to all our customers, it will help us to first understand their needs, experiences, and pain points. We will work with an effective CRM software to be able to achieve our aim of surpassing our customer’s need.

On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales and operations component. The operations component of the plan would include attracting more customers and additional service offerings that will enable the organization to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at a Preschool?

• The facility is open for the day
• The facility is cleaned and prepared for the day’s activities
• Parents are welcome and their kids are received from them
• Early childhood learning activities, as well as playing with kids to encourage mental and physical stimulation are carried out as required
• Administrative works are done
• Parents come to pick their kids and the facility is closed for the day.

b. Production Process

There is no production process when it comes to a preschool.

c. Service Procedure

There is no service procedure when it comes to a preschool.

d. The Supply Chain

Auntie Lavendar® Preschool, Inc. will rely on parent associations and other stakeholders in our city to refer parents to us. So also, we have been able to establish business relationship with wholesale supplies of beddings, toiletries, and other supplies.

e. Sources of Income

Auntie Lavendar® Preschool, Inc. make money from;

• Providing daycare services for children under the ages of three and four to prepare them for kindergarten.
• Offering home tutor services for toddlers as requested by their parents
• Retailing early childhood learning materials.

Financial Plan

A. amount needed to start our preschool.

Auntie Lavendar® Preschool, Inc. would need an estimate of $250,000 to successfully set up our preschool in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation and the renting of our operational facility.

b. What are the Cost Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $1,300.
• Marketing, Branding and Promotions – $3,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $120,000.
• Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $30,000
• start-up inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing and Equipping – $45,000
• Website: $800
• Opening party: $3,000
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Auntie Lavendar® Preschool, Inc. will not build a new facility for our preschool; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Preschool?

• Cost of stocking up supplies such as toiletries, change of beddings, and other supplies
• Utility bills (gas, internet, phone bills, signage and sewage et al)
• Salaries of employees

e. What is the Average Salary of your Staff?

• Head of Preschool (President) – $45,000 Per Annum
• Preschool Administrator – $36,034 Per Annum
• Account Officer – $35,000 Per Annum
• Early Childhood Educators – $33,300 Per Annum
• Front Desk Officer – $28,000 Per Annum
• Cleaners and Nannies – $22,000 Per Annum
• Security Guard – $22,000 Per Annum.

f. How Do You Get Funding to Start a Preschool?

• Raising money from personal savings and sale of personal stocks and properties
• Applying for a loan from your bank/banks
• Pitching our business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from our family members and friends.

Financial Projection

A. how much should you charge for your service.

At Auntie Lavendar® Preschool, Inc. it is important to note that we will charge $4,460 to $13,158 per year ($372 to $1,100 monthly) on average, depending on the services involved.

b. Sales Forecast?

• First Fiscal Year (FY1): $250,000
• Second Fiscal Year (FY2): $350,000
• Third Fiscal Year (FY3): $450,000

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1): (65 percent)
• Second Fiscal Year (FY2): (45 percent)
• Third Fiscal Year (FY3): (50 percent)

d. Profit Margin of a Preschool Product/Service

Auntie Lavendar® Preschool, Inc. will work towards achieving between 25 percent to 45 percent.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

Auntie Lavendar® Preschool, Inc. will grow our preschool by first opening other outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchise from the sixth year.

b. Where do you intend to expand to and why?

Auntie Lavendar® Preschool, Inc. plans to expand to Dallas – Texas, New York City – New York, Sumter – Florida and then to Liliano – Texas, Lancaster – Virginia, Alcona – Michigan, Los Angeles – California and Catron New Mexico.

The reasons we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest number of people with kids below the age of 5 in the United States.

The founder of Auntie Lavendar® Preschool, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.

Expert business plan and financial models

Daycare Business Plan Template & PDF Example

• September 4, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful daycare. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your daycare’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a daycare business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your daycare business concept into reality. Let’s dive in!

Our daycare business plan is thoughtfully developed to encompass all crucial aspects required for an in-depth strategic plan. It outlines our facility’s operations, marketing strategies, market dynamics, competitors, management team, and financial projections.

• Executive Summary : Offers an overview of your Daycare’s business concept, including the innovative learning environment, market analysis , management team, and financial strategy.
• Building & Location: Describes the Daycare’s modern, child-friendly design, its central location, and amenities such as indoor and outdoor play areas, sensory rooms, and nap zones.
• Pricing & Educators: Lists the services provided by your daycare, including full-time and part-time care options, the educator-to-child ratio, and pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the Daycare market.
• Key Trends: Highlights recent trends affecting the childcare sector, such as the increasing demand for early childhood education programs and technological integration.
• Key Competitors: Analyzes main competitors nearby and how your daycare differs from them, focusing on aspects like curriculum quality and additional services.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis tailored to the daycare business.
• Marketing Plan : Strategies for attracting and retaining customers, including branding, local advertising, online presence, and community involvement.
• Timeline : Key milestones and objectives from the initial setup through the first year of operation and beyond.
• Management: Information on who manages the daycare, detailing their roles, experience in early childhood education, and business management.
• Financial Plan: Projects the daycare’s 5-year financial performance, including revenue projections, profit and loss statements, cash flow analysis, and balance sheet, aiming for significant growth and profitability by the target year.

Daycare Business Plan

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Executive Summary

The Executive Summary serves as the gateway to your daycare business plan, providing a succinct overview of your daycare center and its offerings. It should highlight your market positioning, the variety of child care and educational services you provide, its location, size, and a sketch of daily operations.

This section should also delve into how your daycare will integrate into the local community, including an analysis of the number of direct competitors in the area, identifying who they are, along with your daycare’s distinctive features that set it apart from these competitors.

Moreover, you should incorporate details about the management and co-founding team, outlining their roles and contributions to the daycare’s success.

Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be included here to offer a clear vision of your daycare’s financial strategy.

Daycare Business Plan Executive Summary Example

Business Overview

In the  business overview  section of a daycare’s executive summary, it’s vital to present a comprehensive picture of the daycare’s operations.

This includes the facility’s location, size, amenities, the qualifications of the educator team, child capacity, and pricing structure. Key aspects to highlight are the features that contribute to a nurturing and educational environment, such as indoor and outdoor play areas, sensory rooms, and nap zones. The qualifications and number of educators are crucial for ensuring quality care and education.

This section should also outline the daycare’s capacity to accommodate children and the  pricing strategy , reflecting its commitment to providing accessible and high-quality childcare services.

Example: Little Explorers Daycare, located in [Location/City/Neighborhood], spans 5,000 sq. ft. and offers a stimulating learning environment with dedicated play and learning zones. The daycare boasts a team of 5 certified educators, ensuring a low child-to-educator ratio. Licensed for up to 60 children, the facility provides flexible childcare options with competitive rates, catering to the needs of the community.

Market Overview

The  market analysis  section should include an assessment of the childcare industry’s size, growth trends, average costs, and key  market trends .

This part of the executive summary is crucial for understanding the industry’s dynamics and the daycare’s position within it. Trends such as the rising demand for early childhood education programs and employer-sponsored daycare benefits are important to highlight, as they indicate evolving consumer preferences and potential growth areas. An analysis of the  competitive landscape  is also vital for identifying the daycare’s unique selling points and potential areas for differentiation.

Example: The US childcare market, valued at $60.4 billion, is characterized by its essential demand for quality services. With approximately 600,000 daycare centers nationwide, Little Explorers Daycare competes in a robust market. Its focus on specialized curriculums and child development tracking sets it apart in an industry where differentiation is often based on curriculum quality and additional services.

Management Team

This section introduces the key figures leading the daycare, highlighting their educational background and experience.

The management team’s expertise in early childhood education and business management is critical for the daycare’s operational success and strategic direction. This part of the summary should instill confidence in the team’s ability to provide high-quality childcare and effectively manage the business.

Example: The Director, a co-founder with a Master’s in Early Childhood Education and 10 years of teaching experience, oversees the educational program. The Business Manager, also a co-founder with an MBA and expertise in entrepreneurship, handles the operational and financial aspects of the daycare.

Financial Plan

The financial plan overview provides insight into the daycare’s financial goals and projections.

This section outlines the revenue targets and profit margins, reflecting the daycare’s financial health and potential for profitability. It includes specifics such as aiming for $1.9 million in yearly revenue and an 18% profit margin by 2028.

This section should demonstrate how the daycare plans to achieve these financial objectives through strategic enrollment growth, operational efficiency, and quality service provision.

Example: Little Explorers Daycare aims to achieve $1.9 million in annual revenue with an 18%  EBITDA  margin by 2028. This goal will be supported by expanding enrollment, maintaining high standards of childcare, and implementing efficient business management practices to optimize costs and enhance revenue.

For a Daycare, the Business Overview section can be effectively divided into 2 main components:

Building & Location

Briefly describe the daycare’s facility, focusing on its safety, child-friendly design, and the stimulating environment that it offers to children.

Mention the daycare’s location, emphasizing its accessibility and the convenience it brings to parents, such as proximity to residential areas or ease of drop-off and pick-up. Explain why this location is beneficial in drawing your target clientele, particularly parents who prioritize convenience and safety in their choice of daycare.

Pricing & Educators

Detail the range of childcare and educational services provided, from basic care for infants to preschool programs and after-school care for older children. Outline your pricing strategy , ensuring it aligns with the quality of care and education provided and is competitive within your market segment.

Highlight any special programs, discounts for siblings, or membership deals that offer additional value to families, fostering long-term relationships and loyalty among your clientele. Discuss the qualifications, experience, and approach of your educators and staff, underlining their role in creating a nurturing and educational environment for the children.

Industry size & growth

In the Market Overview of your daycare business plan, start by examining the size of the childcare industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying opportunities for expansion, particularly in regions with increasing numbers of working parents or areas underserved by quality daycare facilities.

Key market trends

Proceed to discuss recent market trends , such as the growing demand for early childhood education, the importance of developmental programs, and the preference for daycares that offer flexible hours and holistic child development approaches.

For example, highlight the need for services that cater to different developmental stages and incorporate educational curriculums, alongside the rising popularity of daycares that focus on sustainability and health, such as offering organic meals or eco-friendly play areas.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your daycare in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your daycare’s unique selling points, essential for differentiating your business in a competitive market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying and Categorizing Competitors

Initiate the competitive analysis by cataloging various local childcare services. Beyond traditional daycare centers, include in-home childcare providers, preschools, Montessori schools, and specialized educational programs focused on early childhood development. Also, consider alternative childcare solutions like nanny services or after-school programs, as they might indirectly compete for parental trust and enrollment.

Leverage digital platforms and online tools to map out the geographical presence of these competitors. Extract insights from customer reviews available on platforms such as Google Reviews, Yelp, or dedicated childcare review websites. Positive reviews highlighting a competitor’s dedicated staff or emphasis on a nurturing environment signal  strengths  in their service offerings.

Daycare Competitors’ Strategies

A meticulous examination of various aspects of competitor operations is imperative:

• Educational Philosophy and Curriculum:  Evaluate the educational approach and curriculum structure. A daycare center with an emphasis on bilingual education or a holistic developmental approach might attract parents seeking specialized learning opportunities for their children.
• Staffing and Qualifications:  Assess the qualifications and certifications of daycare staff. Highlighting a team of experienced and well-trained early childhood educators can be a significant competitive advantage in assuring parents of quality care and education for their children.
• Pricing Models and Services:  Conduct a comparative analysis of pricing models and the spectrum of services offered. Does a competitor provide additional services such as transportation, meal plans, or extracurricular activities as part of their package?
• Marketing and Outreach Strategies:  Analyze the effectiveness of competitors’  marketing strategies . Evaluate their online presence, community engagement initiatives, or collaborations with local events aimed at engaging parents and attracting prospective clients.
• Facilities and Amenities:  Consider the facilities and amenities offered. A daycare center with secure outdoor play areas, advanced security systems, or partnerships with extracurricular activity providers may stand out from competitors.

What’s Your Daycare’s Unique Value Proposition?

Reflect profoundly on what sets your daycare apart. This could be innovative teaching methodologies, a focus on environmental sustainability, or specialized programs catering to children with diverse needs.

Gather insights from parent feedback, industry trends, and  market research  to identify gaps in the market. For example, if there’s an emerging demand for daycares focused on mindfulness and emotional intelligence, consider integrating such practices into your curriculum.

Tailor your daycare’s services and facilities to match the demographics and preferences of your location. An urban daycare might prioritize flexible schedules and proximity to workplaces, whereas a suburban daycare might emphasize larger outdoor spaces and nature-based learning experiences.

First, conduct a SWOT analysis for the daycare , identifying Strengths (such as a qualified and caring staff, comprehensive educational programs), Weaknesses (like limited space or high operating costs ), Opportunities (for instance, a growing demand for quality early childhood education), and Threats (such as changes in government regulations or competition from new daycares).

Marketing Plan

Next, formulate a marketing strategy that details how to attract and retain families through targeted outreach, referral incentives, a strong online presence, and participation in community events.

Marketing Channels

Employ a mix of marketing channels to reach potential parents and engage effectively with the community.

Digital Marketing

• Social Media Presence:  Leveraging various platforms like Facebook, Instagram, LinkedIn, and Twitter allows you to share engaging content showcasing daily activities, educational insights, testimonials from satisfied parents, and detailed information about your programs and events.
• Website and SEO:  Maintaining an informative, user-friendly website that provides comprehensive details about your daycare’s philosophy, curriculum, staff qualifications, enrollment procedures, and upcoming events. By optimizing your website for local SEO, you enhance visibility in online searches, ensuring that interested parents find your center easily.
• Email Marketing:  Implementing an effective email marketing strategy allows you to regularly communicate with parents, providing updates about enrollment, upcoming events, educational resources, parenting tips, and testimonials. This strategy fosters engagement, builds trust, and maintains a consistent line of communication with parents considering your daycare services.

Local Advertising

• Community Engagement:  Foster connections within the local community by participating in neighborhood events, sponsoring school activities, or organizing open houses and tours to showcase your daycare’s facilities and programs.
• Partnerships:  Collaborate with local businesses, pediatricians, schools, or community centers to establish referral programs, joint events, or educational workshops, thereby increasing your daycare’s visibility and credibility.

Promotional Activities

• Special Enrollment Offers:  Create promotions like ‘Early Bird Registration Discounts,’ ‘Sibling Discount Programs,’ or ‘Refer-a-Friend Incentives’ to attract new enrollments and encourage parent referrals.
• Open House Events:  Host periodic open house events inviting prospective families to tour your facility, meet staff members, and learn about your curriculum and approach to childcare.

Sales Channels

Implement effective sales strategies to convert inquiries into enrollments and ensure customer satisfaction.

Consultative Selling

• Tours and Information Sessions:  Offer guided tours of your daycare center, allowing parents to experience the facilities and interact with teachers. Conduct informative sessions addressing parents’ concerns and questions about your programs, curriculum, safety measures, and daily routines.
• Personalized Approach:  Tailor your communication with parents based on their specific needs and concerns. Highlight how your daycare meets their child’s developmental needs and addresses any apprehensions they might have.

Enrollment Process Efficiency

• Online Enrollment:  Simplify the enrollment process by offering an intuitive, user-friendly online registration system accessible via your website. Ensure it provides all necessary information and offers secure payment options for a seamless experience.
• Enrollment Incentives:  Provide incentives like waived registration fees, trial days, or discounts on the first month’s tuition to encourage parents to enroll their children at your daycare.

Retention Strategies

• Parent Engagement:  Foster a sense of community by organizing family-friendly events, parent-teacher conferences, workshops on child development, and educational seminars. Encourage parental involvement through volunteering opportunities or participation in daycare activities.
• Quality Service Delivery:  Focus on delivering exceptional childcare services, ensuring the safety and well-being of children, providing engaging learning activities, maintaining open communication with parents, and offering regular progress updates about their child’s development.

Strategy Timeline

Lastly, draft a precise timeline that marks crucial milestones for the daycare’s launch, marketing initiatives, enrollment targets, and growth plans, ensuring the business progresses with clear goals and intent.

The Management section focuses on the daycare business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the daycare business toward its financial and operational goals.

For your daycare business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your daycare business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your daycare business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Keeping a group of toddlers occupied and writing a strong business plan may be very different tasks, but both take patience, time, and coordinating a few moving pieces.

You bring the child care skills, this guide will help out with the other one, outlining the five key areas to include in an effective child care business plan.

From financial projections to local business marketing strategies , here are the most important sections of a successful daycare business plan.

1. Executive summary

Your childcare business plan will be as functional to your business as a shelf stocked with Curious George. Not only is it an essential document if you’re raising funds for your business, but it’s also a helpful way to organize your thoughts and plans for yourself and to share them with employees.

Start every business plan with a summary to hook whoever’s reading it to learn more about your company and your proposal. Think of it a little like a sales pitch for your business and a preview of everything you lay out inside. Be sure to include:

Contact information – Include your name, number, address, email, and any other relevant contact information so potential partners know how to get in touch.

Business concept – Whether a one-person babysitting service or a 24/7 child care facility, include key details of your business, including staff size, services, a summary of general operations, and the required operating licenses you have or plan to get.

Business structure – List owners, partners, managers, and employees, and explain the structure of your business and how it will run. This should also include your target demographic and basic marketing plans.

Mission – Share your reason for starting a childcare business. For Matt and Anne Evers , owners of the Primrose School of Atascocita in Kingwood, TX, their business is personal: “Since both of our children attend the school it is very easy for us to ask ourselves when making daily decisions, ‘What’s the best choice for the child? What will result in the best outcome for [them]?’”

Keep the executive summary to one or two pages. You’ll have the space to dive deeper into the details of your childcare business in the following sections.

2. Location details

Child care is a local business, which means location, community needs, and demographics are all key in planning your grand opening.

Your business location will likely fall into one of two categories of childcare businesses:

Inside your home – Operating within your home can mean less overhead costs, fewer rental expenses, and more flexibility. To comply with local and state safety regulations, you may be required to renovate or change portions of your home. 

Outside your home – Factor in rent, utilities, and any necessary repairs to the property. Whether renting in a residential neighborhood or purchasing a commercial property, summarize your general knowledge of the building and neighborhood, plus why you plan to operate there in this section.

Since your location is important to your childcare business, include insurance costs, relevant zoning laws, neighborhood information, and applicable details on kitchen and bathroom facilities.

3. Financial layout

An effective business plan will share both a compelling narrative for your idea and the steps you’ll take to make it a success. Your financial planning section should be well-researched with estimates for costs, the funding you’re seeking, and projected growth over the next three or more years. While this section is necessary for investors and partners, it will also give you a working plan to help your childcare business run smoothly and make a profit.

When fleshing out the financial section of your business plan, include details like:

Tax plan – Share your business’s legal structure — commonly C or S corporation, general or limited partnership, sole proprietor, or limited liability company — to plan for taxes.

Insurance – Assess risk, liability, protection, and coverage options to ensure you’ve covered all the necessary bases. 

Budget – Include both costs and projected profit for your child care business accounting for personnel, equipment, supplies, professional fees, and other expenses. Include monthly and annual budgets, as well as a cash-flow forecast.

Detail your plans for fluctuations, which is common for childcare businesses. Take it from Danielle Burns, director of Lil’ Red Barn Academy in Washington whose business experienced an influx of children in the summer of 2021, despite the summer typically being a slower time.

If you run into questions with the financial section of your business plan, consider tapping an accountant for help, especially if they have advised other local businesses in your area.

4. Marketing plan

It’s almost time to spread the word about your services. Building a marketing plan as a neighborhood business is more than catchy slogans and photos of cute kids. In this section, show your understanding of your local market and how your business will support it.

When developing your marketing plan, include:

Market analysis – Summarize the state of childcare in your area: Will you be one of five daycares on the block, or are you opening up within a community that’s lacking in childcare options? Consider neighborhood trends, your competition, and the average cost of child care in your neighborhood. Include information on your target clientele and how you’ll meet their needs to show your business’s potential.

Business niche – Whether you’re focused on a specific age group or specializing in evening care, explain where you fit into the overall childcare industry and how any unique services will distinguish you from the competition.

The 5 P’s: Price, product, promotion, place, and people – You’ll want to make sure you’re offering the right prices and products to the right people in the most effective way possible. Analyze market and demographic data for marketing or advertising plans for your childcare business to reach the right clients for your business.

Start with a free business page on Nextdoor . Set one up for your local business in minutes to instantly unlock a following of your most valuable customers: neighbors. Show up in local searches when neighbors look for childcare options near them, share updates as you open and grow, and build trust in your business with recommendations.  

5. Daily operations

The details of your day-to-day operations are just as important as the big picture ideas and long-term goals you’re setting. Use this section for the details of your services, including information on:

Personnel – List your team along with the goals and responsibilities of each of their roles. Share details of your hiring practices and staff policies, from sick leave to the termination process. 

Structure – Include a schedule for what a typical day at your daycare looks like highlighting what makes your business unique: lunch or nutrition plans, classes and other organized activities, playtime, exercise, and storytime.

Parental policies – The two most important details with parents are how you plan to keep them informed, and what your policies are. Pick-up and drop-off requirements, what happens if they’re late for pick-up, behavioral issues — build an action plan to set expectations when they first enroll their children.

Emergency plans – Include fire escape plans, medical protocol, and other possible contingency plans as part of your daily operational details.

Build a community with Nextdoor

The building blocks of a successful childcare service start with a comprehensive business plan. From there, your business will rely on your local community and how you’re able to meet the needs of the families in your neighborhood to thrive. 

With one in three U.S. households on Nextdoor , neighbors use the app every day to get things done, connect with everyone and everything nearby, and pass along local recommendations. With 50,000 shared each week, make the next recommendation for your child care services with a free business page and a plan to reach local families who need them.

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Child Care Business Plan

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The Toddler Warehouse

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

The education of our children needs to start earlier and earlier. The school system is failing.  Those who can hire private teachers and tutors to help with their children’s education should.

The Toddler Warehouse is a full-service child care/development facility that cares for toddlers from age three to five. The Toddler Warehouse will be concentrating on the upper end of the market: double-income professional parents. These personally ambitious parents are typically eager in terms of their children’s development and will be willing to pay to have their children attend the best facilities.

The Toddler Warehouse will be offering child care/development for toddlers age three to five. The Toddler Warehouse will be targeting double income professional families who, because of work obligations, do not have the time during the day to care for their child. The Toddler Warehouse will be targeting families that are interested in something more than simple baby-sitting facilities, they would like the children to be enrolled in a program that offers development of many different skills including: socialization skills, arts and crafts, large muscle group workouts, reading, numbers, etc. Parents who are professionals, who are ambitious by nature themselves, are typically eager for their children to move ahead and are willing to pay for the best development care services for their children.

Competition

The Toddler Warehouse will be competing in the child care industry. This industry is fairly broad and populated, there are companies at all levels, from the basic baby sitter services, to competitors of The Toddler Warehouse. There are service providers that offer standard business hours as well as services that offer night and evening hours. There are scheduled services and no reservation drop off services. Price, quality, and gut feeling drives a lot of parental choices. The Toddler Warehouse believes the secret to success is to 1) concentrate on only a portion of the market, and 2) choose a portion of the market that is growing.

The Toddler Warehouse’s mission is to provide top level child care. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

Expectations

We will be profitable in the first year. By year 3 we will be able to hire more general help which focuses on care since we are all set for teachers

Financial Highlights by Year

Financing needed.

Matt will invest $85,000

Problem & Solution

Problem worth solving.

The education of our children needs to start earlier and earlier. The school system is failing.  Those who can hire private teachers and tutors to help with their children’s education should.

Our Solution

The Toddler Warehouse is a full-service child care/development facility that cares for toddlers from age three to five. The Toddler Warehouse will be concentrating on the upper end of the market: double-income professional parents. These personally ambitious parents are typically eager in terms of their children’s development and will be willing to pay to have their children attend the best facilities.

Target Market

Market size & segments.

The Toddler Warehouse is targeting one specific customer group, the middle to upper class, two income professional family. This group of families have both parents working, not allowing them time to raise their child during the day. This group has the money for child care, and are willing to spend a little extra to get a higher level of care.

This customer segment has already begun teaching it’s child advanced concepts like reading, singing, socialization, etc. The Toddler Warehouse will continue to develop the children’s skills.

This customer group is typically made up of two professional parents. This would explain why the parents 1) have the money for more sophisticated child care, and 2) are ambitious in terms of their children’s learning and development.

Current Alternatives

There are many different competitors in the child care space. The Toddler Warehouse will only detail the direct, or reasonably direct competitors, and will not detail the myriad of other service providers that offer some sort of child care option. The direct competitors are:

• Established, often franchised, child care centers. These are typically larger facilities that offer care to a wide range of ages. The number of children serviced is usually quite large. The child care is adequate, although somewhat impersonal by virtue of its large size.
• Small, home based child care. These competitors are people that have a child care facility based out of their house. The quality of these ranges considerably, some are great, some are sub par.
• Medium sized companies. These are typically independently owned facilities. Some of theses will handle a wide range of ages, others will specialize with a specific age group.

Our Advantages

The Toddler Warehouse’s competitive edge is two-fold:

• Specialized training – The facility can only be as good as the teachers and assistants. With this in mind, The Toddler Warehouse has a specialized training program that all teachers and assistants are put through so they are proficient at teaching the specific programs that The Toddler Warehouse has developed for toddlers age three to five. The employees are put through an intensive week long course and only after they pass the intensive training will they be allowed to work with the children.
• Innovative learning programs – Typical learning programs for toddlers this age focus on specific traits and only work on one trait/ skill at once. While this is successful in reinforcing the skill, it is often very difficult for the child to appreciate the interrelationships of the different skills. Consequently, the child can learn the skill, but has difficulty applying the skill when faced with multiple stimuli. When the child is unsure of what to do because of the multiple stimuli and these several skills that they have learned independently, the child tends to shut down out of confusion. Matt’s Master’s thesis was based on Intertwined Learning Systems that teaches skills not in isolation from each other, but taught together. Matt’s research strongly supports the assertion that when the skills are taught together, just as you would expect to encounter them in real life, the children are able to assimilate the new task into their skill set much quicker.

Keys to Success

Our keys to success are: 

• To create a service based operation whose primary goal is to exceed customer’s expectations.
• The utilization of The Toddler Warehouse by at least 40 different families in the first eight months.
• To increase the number of client’s served by 20% each year.
• To develop a sustainable, profitable, start-up business.

Marketing & Sales

Marketing plan.

The Toddler Warehouse intends to concentrate on the double income working professional families because they are the segment that can most readily afford day care, are the ones who need day care because of their work obligations, appreciate the advanced learning and development The Toddler Warehouse has to offer, and lastly are a growing segment of our society.

As America continues to be a society of people working long hours, there will always be the need for child care. The trend of longer work weeks is increasing and this drives The Toddler Warehouse’s business.

The Toddler Warehouse’s sales strategy will be targeting double income working professional families. These families have the money to spend on child care and these parents are much more likely to appreciate the advanced learning systems taught at The Toddler Warehouse based on Matt’s thesis.

The sales strategy will be based on a communication effort to explain the virtues of the program and how time at The Toddler Warehouse can speed up the children’s development considerably. In addition to one on one explanations of the program and its merits, the prospective parents will be given tours of the facilities. The tour of the facility will serve two purposes:

• The tour will be used as a way to impress the prospect of the facilities that The Toddler Warehouse has. These facilities were custom designed to achieve very specific educational goals and The Toddler Warehouse is immensely proud of the facilities.
• The tours typically occur during the day and this becomes a perfect opportunity for the potential customer to view the care as it is occurring. This will serve to build a trust bond between The Toddler Warehouse and the parent who naturally is cautious about leaving the child with strangers to have the child cared for and taught the entire day.

In essence, The Toddler Warehouse  is letting the facilities and teacher/student interactions speak for themselves. Because of the high level of service, this is entirely possible.

Locations & Facilities

The Toddler Warehouse, soon to be located in Salem, OR, will offer child care services for kids between the ages of three and five. The Toddler Warehouse will offer services from 6 a.m. to 7 p.m. The children will be exposed to a wide range of activities including arts and crafts, socialization, large muscle group activities, and general learning. The Toddler Warehouse will be priced out of some people’s budget, but will offer a low student to teacher ratio and well trained staff. The Toddler Warehouse will be located in a recently purchased and converted home that now is solely a child care center.

Equipment & Tools

The Toddler Warehouse offers Salem an upper-end child care facility for toddlers age three to five. The Toddler Warehouse offers a low teacher to student ratio, custom facilities, and innovative learning programs. The Toddler Warehouse hours will be a bit wider rage than normal business hours to accommodate the working parents, the target customer.

The two income families have children, yet both parents work. The Toddler Warehouse is an innovative solution that acts as virtual parents, broadening the children’s skills during the day. This is not a baby sitter facility. The children are engaged throughout the day, learning new skills and reinforcing already acquired ones.

Milestones & Metrics

Milestones table.

Key Metrics

Key metrics are: 

• The # of families paying fees to breakeven 
• increase the # families paying fees by 20% year over year 
• training teachers and assistants 
• keep on top of the educational tools 

Ownership & Structure

The Toddler Warehouse will be an Oregon Corporation, founded and owned by Matt Ernal.

Management Team

Matt Ernal, the founder and owner of The Toddler Warehouse will be running the daily operations. Matt got his undergraduate degree in English from the University of Oregon. Upon graduation, Matt was unsure of what he wanted to do so he travelled to Indonesia and taught English for three years. For the first year, Matt lived with a local family. In exchange for room and board, Matt cared for the family’s two children. Although he had never done any child care before, Matt found this very satisfying.

Upon returning to the US, Matt was contemplating pursuing something with teaching. His experience in Indonesia was quite positive, both the English classes and caring for the young children. Ultimately, it was the experience with the young children that led Matt to consider a career teaching young children. Matt entered Western Oregon University’s nationally recognized Master of Education Program to pursue toddler development. After graduation, Matt was confident of his abilities and decided that he would appreciate the autonomy of running his own business. He purchased a house for the facility has been working hard on this project ever since

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

Our key assumptions: 

• Kids need to have a place that caters to the way they learn 
• Kids need somewhere that teaches them life skills
• Education starts at a very young age
• Parents need somewhere safe and nurturing to leave children while they finish their workday. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

The Toddler Warehouse’s start-up costs include:

• Legal: $1,000
• Stationery etc: $100
• Brochures: $350
• Art supplies: $150
• Kitchen supplies: $200
• Cleaning supplies: $100
• Medicine kits: $100
• Matts and pillows: $150

Total $ 2150 

Sources of Funds

Our founder will invest $85,000 to get the operation up and running. 

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

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How to Build a Childcare Business Plan

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Table of contents

• What Is Childcare and Why Should I Start One
• Types of Childcare Providers
• Essential Steps Before Starting Your Childcare Business
• Develop Your Buyer Personas
• Decision Journey Map Definitions
• Determine Your Competitors  
• How to Start Your Childcare Business
• Conduct an Opportunity Analysis

Problem and Solution

• Execution Plan

Strategic Alliances

• Financial Forecasts
• Consider Various Funding Sources

Form Your Childcare Business

• How to Gain Enrolment at Your Childcare
• Find the Right Childcare CRM Software to Manage Enrolment with Less Work

Check Out the Tips and Tricks

Changing parent expectations have created an environment where the old way of managing the parent experience from initial enquiry through family retention doesn’t work anymore. It’s inconvenient, time-consuming, and full of obstacles that cause families to choose another childcare centre altogether.

Childcare organisations that make the parent experience digital and convenient will grow enrolment, increase retention, and remain competitive in the childcare market. In this guide, you'll view the key takeaways from our research and provided recommendations to help you grow your business by optimising the parent experience .

What is childcare and why should I start one?

According to Forbes , childcare businesses were projected to have some of the fastest employment growth of all industries through 2020. Starting a childcare is a great opportunity for aspiring business owners who have a passion for early childhood education and child development.  

‘Childcare’ is an umbrella term for various options (such as Montessori, preschool, and many more) where parents and guardians drop their children off and leave them in your care to...  

• Socialise with other children in their age group  
• Learn basic fundamentals for future academic success  
• Reach important developmental milestones

Is starting a childcare business worth it?

Starting a childcare business or franchise is profitable, emotionally rewarding, and sustainable – the need for committed childcare entrepreneurs has never been greater.  

As of 2021, there were 13,370 childcare centres in Australia. The growing popularity of childcare centres comes from the demand. Parents will always need a form of care for their kids. Plus, there’s a necessity, especially beyond COVID-19, to socialise children in an environment that fosters development.  

Types of Childcare Providers 

• Family Daycare  
• Relative care  
• Preschool (only)
• Independently-owned daycare
• Childcare Groups  
• Before & After School/Vacation Care

The difference between individual centres and childcare groups.

An independently-owned daycare often has an individual owner, a centre director, and possibly a few other administrative staff members – along with teachers, cooks, bus drivers, etc. The owner is typically an individual who puts their own money and savings into opening the centre, so all business rights (name, branding, etc.) belong to them.  

Alternatively, a childcare group falls under a corporate brand who has acquired centres in multiple locations and either re-branding or keeping the current brand (to grow their portfolio). This type of business is usually controlled by a group of employees in a head office or headquarters facility. 

The centre directors, cooks, educators and teachers are then recruited by the childcare group itself and distributed to different locations to maintain similar or exactly the same policies, values and learning program. Ultimately each location is owned and operated by the larger corporate group.

Essential steps before starting your childcare business

1) conduct market research.

When it comes to starting your childcare centre, relying on assumptions about your customers and competitors leads to wasted time, money, and effort. In contrast, businesses that conduct regular market research improve customer retention and are 76% more likely to see an increase in revenue.  

Market research is a data collection process that evaluates both consumer behaviour, competitor habits, and industry trends to determine the viability of your centre and build a foundation for future business operations.  

Prepare for success upfront by conducting thorough market research to understand your competition, improve communication with your target audience, and identify new market opportunities. This research should result in actual data that you can use to drive your business and marketing strategies as you launch your centre.  

There are a variety of tools available to help you conduct market research - all from the comfort of your own office. Gone are the days of hiring team members with clipboards to approach consumers face-to-face. Survey Monkey, Typeform, Google Forms all offer digital market research tools to help guide you through the process of understanding your audience, your competitors, and your industry.  

 2) Determine Your Target Market

A market segment is a group of consumers that could potentially enrol at your childcare centre. First, identify your market segments and determine how big each segment is.  

Be careful not to fall into the trap of defining your market as “everyone in your community.” This often leads to a ‘spray and pray’ approach to your marketing and as we know, a message for everyone really speaks to no one. When you generalise your advertising in favour of not isolating a potential consumer, you aren’t able to effectively communicate with your ideal customers – forgetting to recognise how your family entertainment centre can appeal to them and their needs.  

A classic example is a shoe manufacturer. While it would be tempting for a shoe company to say that their target market is anyone who has feet, realistically they need to target a specific segment of the market in order to be successful. If they sell adult athletic shoes, they should be building their message to target athletes or individuals who enjoy staying active and exercising. Likewise, if you offer programs for children aged 6 months to 4 years old, you should prioritise advertising towards young adults in their 20’s and 30’s.  

A common strategy when identifying target markets is to use the TAM, SAM, and SOM approach to look at market sizes from a top-down approach as well as a bottom-up approach.  

Target Market Terms

• TAM: Your Total Available or Addressable Market  

This should include everyone you wish to reach.  

Example: Your entire local community.  

• SAM: Your Segmented Addressable Market or Served Available Market  

This is a portion of the TAM you will specifically target because they align with your offerings.  

Example: Families with young children.  

• SOM: Your Share of the Market  

This is the group of your SAM that you will realistically reach—particularly in the first few years of your centre’s opening, as you may expand and grow your service over time.  

Example: Families with young children who make at least $65,000 each year in household income.  

For childcare organisations with multiple brands, schools, or programs - increasing revenue and keeping families happy is vital for growth. Your Millennial parents need a uniform, high-quality experience, regardless of location.

Standardising business processes has a significant impact on time savings, costs, and most notably on quality. In fact, standardisation improves quality by   61.9%,  on average. Create consistent  enrolment processes across all your locations to ensure every family has a great experience and a positive association with your brand – leading to higher conversion success and profitability.  

To achieve consistency, your marketing approach and advertising material must follow all your corporate brand guidelines. Your organisation should have a lead management system that supports your childcare staff as they  guide families through   the decision-making journey  while also ensuring each location is delivering a consistent parent experience.  

3) Develop Your Buyer Personas

Before you begin writing your marketing plan, make sure you’ve defined your market and buyer personas. Without a deep understanding of who you’re speaking to, a marketing plan will have little value.    

Audience personas allow you to dive even deeper into your target market and help you understand more than just who your customer is. These identities inform you how to communicate with your customers in a way that relates to their pain points and needs.  

When you understand your customer’s motivations, you can uniquely address their concerns and questions in your marketing materials - leading to increased tours, enrolments, and revenue.  

Start by listing out the various kinds of programs and classes you’d like to offer at your centre.  

Then, determine who the primary decision-maker and who the primary influencers might be in each scenario.   

Primary decision-maker : typically the individual(s) taking financial responsibility and remitting payment at your centre.  

Primary influencer : also crucial in the purchasing process as they often have the ability to sway decision-makers.  

For example, imagine you’re promoting availability for Holiday program at your centre. In this instance, the primary decision-maker might be the parent(s) or guardian(s) whereas the primary influencer would likely be the child who’s deciding what kind of activities they want to do this Summer.  

Audience Overview

List the audiences, personas, or segments that you want your centre’s marketing and messaging efforts to reach.  

Select one audience from above and describe it to the best of your knowledge. Go beyond the traditional persona to consider motivations & behaviour.  

Identify the key stages in your audience’s enrolment journey from beginning to end, knowing there may be multi-dimensional steps within a stage. Complete the table for each journey at the individual stages from the specific audience’s point of view.  

Decision Journey Map Definitions 

Stage : This refers to each stage of the enrolment journey - awareness, consideration, action, and advocacy.  

Awareness : This is when a family is first learning of your centre and your brand. They are researching multiple childcare centres and eventually send an inquiry to tour your facility or learn more.  

Consideration : During this stage, a family is touring your centre and may be deciding between you and 1-2 other providers. Tip: Proactively equip your staff with key talking points so they can highlight your unique centre features.  

Action : This is when a parent decides to enrol their child for care, pay fees, and is either placed on your waitlist or already enrolled.  

Advocacy : After a successful, happy experience, this parent or guardian has become an advocate for your business. They’re telling friends and family about your centre. This is vital for your word-of-mouth marketing strategy.  

Emotion : Identify what the persona is feeling at each stage of the customer’s journey. They may be anxious, curious, excited, or satisfied at various points. Put yourself in their shoes.  

Key Actions : What actions would a consumer take at each stage? For example, during the awareness stage, they may see your ad on Facebook, look you up on Google, or visit your website. In a consideration stage, they may call your centre to get more information, look at your services online, or read reviews.  

Questions : What questions is the consumer asking in each stage? These are the questions you need to be answering for them in your advertising and marketing efforts.  

Determine your competitors.

Competitive research helps you understand why customers choose your centre over other alternative care options. This information provides you with insight about how your competition is marketing their services and over time, this can help you improve your own marketing campaigns and business offerings.  

Look up similar childcare centres in your area, see what programs they offer, the type of facilities, their capacity, and curriculum. Then, highlight the features that make your centre stand out. Showcase your selling points in all marketing and advertising efforts.  Get started with these key questions...

Who are my direct competitors and what services do they offer?

For example, other childcare centres, family daycare or school pre-schools.

Who are my indirect competitors?

For example, other childcare offerings that may lure potential families away such as relative care and babysitters, at home programs, etc.

What does my competitions pricing look like?

Do they offer promotional pricing or cheaper daily rates, what do they do best, what areas do they lack in, how to start your childcare business., construct a business plan.

A good business plan will guide you through each stage of starting and managing your childcare organisation- including how to structure, run, and grow your new business.  

There’s no correct or incorrect way to write your business plan. What’s most important is that you identify your business objectives and use this document as a roadmap for how to achieve these goals.  

A strong business plan can help you recruit business investors, gain funding, or find new partners. Prospective investors want to feel confident they’ll see a return on their investment and your centre’s business plan is the perfect tool to assure potentials that working with you — or investing in your business— is a smart and profitable decision.  

Write an Executive Summary

Although this section is the first thing people will read, it’s advised that you write it last, once you know the details of your business inside and out. At this stage, you will be able to articulate your business more clearly and summarise all the information in a succinct, concise manner.  

Ideally, your executive summary will be able to act as a stand-alone document that covers the key highlights of your detailed business plan. In fact, it’s common for investors or loan providers to ask for just the executive summary when they start evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation, and more in-depth financials.  

As your executive summary is such a critical component of your business plan, you’ll want to make sure that it’s as clear and concise as possible. Cover only the essential components of your daycare, ensuring your executive summary is one to two pages maximum. This section is intended to be a quick read that hooks your potential investors’ interest and excites them to learn more.  

The executive summary is a tell-all first paragraph that details...  

• The city and state of your centre (you can decide on the exact location later)  
• A potential open date  
• A projected enrolment count (number of children you can enrol)  
• Programs you plan to offer  
• Ages you hope to serve  
• A quick financial summary (based on grants, funding, and potential revenue from projected enrolments)  

This may seem like a lot of information upfront, but it’s simply a high-level overview of your plan.   

Conduct an Opportunity Analysis 

The opportunity section of your business plan includes information about:  

• The problem that you’re solving within your community  
• Your programs and classrooms  
• Who you plan to market your centre(s) to  
• hHw your daycare facility fits into the existing competitive landscape  

This portion of your business plan is also important for outlining what distinguishes your childcare centre from your direct and indirect competitors as well as how you may continue to expand and grow your centre in the future.  

Use your previous competitive research to determine your daycare business’s competitive advantage and position. Analyse potential strengths, weaknesses, opportunities, and threats. 

Describe the problem that you are solving for your customers. Childcare centres are need-oriented, meaning your consumers have tangible pain points that you must resolve to be successful.  

So, what is the primary pain point for them? Maybe it’s that busy, working parents need a caring, safe place for their child during the day, or perhaps families are seeking after-school care options for their elementary-aged children, or maybe parents need 24-hour childcare options when they’re traveling or working odd hours.   

Now, assess how they are solving their problems currently and where there’s room for improvement. If there's only one childcare centre in your community and it has no open seats, you could be the solution. Or maybe there are lots of existing care providers in your city but they’re expensive or have rigid pickup and drop-off times that working parents have trouble meeting. Or perhaps there aren’t any existing childcare businesses within a reasonable driving distance of where you’d like to place yours.  

Defining the problem you are solving for your customers is by far the most critical element of your business plan and is crucial for your daycare business’ success. If you can’t pinpoint a problem that your potential customers have, then you might not have a viable business concept.  

To ensure that you are solving a real problem, try conducting your own survey with potential customers to get a better understanding of their needs and validate that they have the problem you assume they have. Then, take the next step and pitch your potential solution to their problem.

Do they agree that it’s a good fit or does it seem to fall flat?  See how to come up with a strategic plan for your business.

Write an Execution Plan

The importance of an execution plan.

The execution chapter outlines how you’re actually going to make your childcare centre work . You’l l address your marketing and enrolment plans, operations, success metrics, and any key milestones that you expect to achieve.  

Execution Plan: Marketing and Sales  

The marketing and sales plan section of your business plan details how you propose to reach your target market segments, how you plan on converting those target markets, what your pricing model looks like, and what partnerships you may need to make your centre a success.  

Your Positioning Statement

Once you understand your audience, the first part of your marketing and sales plan is your positioning statement. Refer back to your value proposition to create a simple, straightforward sentiment, explaining where your company sits within the competitive landscape and what differentiates your venue from the alternatives that a customer might consider. This statement should be written for an investor or loan provider, rather than for your customer.  

For example, a positioning statement for a 24-hour childcare centre in Sydney, New South Wales may look like this:  

“For the Sydney-based family who is seeking childcare around the clock, Jenny’s 24-Hour Childcare Centre is a safe option for young children with nutritional meals, best-in-industry sleeping arrangements, a clean outdoor play area, and highly trained care teachers and educators. Jenny’s 24-Hour Childcare Centre is the first centre of its kind within 10 km of the Sydney city centre and offers competitive pricing and competitive daily rates.”  

Use this formula to develop a positioning statement for your centre:  

Your Mission Statement

Your mission statement is a scaled-down version of your positioning statement. This should be just one-two sentences that are geared toward your target consumer and describe what your business plans to accomplish. This statement usually includes company core values that explain your childcare’s purpose and how you serve your audience.  

For example, Busy Bees is a leading early childhood education provider with the mission of “ high quality childcare and exciting learning opportunities that give every child the best start in life .”  

Pricing 

Your positioning strategy will typically determine how you price your memberships and packages. There are some basic rules that you should follow when deciding on your price point:  

Cost-plus pricing: For the most part, you should be charging your customers more than it costs you to host them at your centre to ensure your venue is profitable and is appealing to investors.  

Market-based pricing: Look at what your competitors are charging and then price based on what your audience is expecting.  

As part of your marketing plan, you may wish to collaborate with other organisations such as local camps, after-school programs, pediatricians, or even other childcare centres that don’t offer the same activities that you do.  

This partnership should benefit both of you – it may help provide access to a target market segment for your venue while allowing your partner to offer a helpful recommendation to their customers. If you’ve already established an alliance, it’s important to detail that in your business plan.  

The operations section is all about how your business works. This portion details the essential logistics such as staffing and sourcing and fulfilment. But remember, your goal is to keep your business plan as short as possible, so too much detail here could easily make your plan much too long.  

Milestones and Metrics

It’s critical that you take the time to look forward and schedule the next critical steps for your business. Investors will want to see that you understand what needs to happen to make your plans a reality and that you are working on a realistic schedule.

Then, determine how you will measure the success of each milestone by listing out the key performance indicators and metrics needed to see progress. These will be the numbers you monitor on a regular basis to evaluate the trajectory of your business. For example, you may look at how many families tour your centre each week, how many children you enrol each month, or the amount of revenue you bring in per quarter.  

Company and Management Summary

The structure of your staff and teams sets your daycare up for success. In a new childcare centre, there’s typically an owner, a centre director, staff members, an enrolment or marketing team, accounting/administration, teachers, assistants, cooks, bus drivers, and janitorial staff. For example, the average small daycare business has 8-10 fully licensed and/or certified early education teachers.  

Financial Forecasts  

A typical financial plan will have monthly sales and revenue forecasts for the first 12 months, and then annual projections for the remaining three to five years. Break your sales forecast down into several rows, focusing on just high-level buckets at this point.   

Knowing how much your childcare will cost to open ahead of time can save you money, stress, and time. Childcare start-up expenses vary by size, enrolment capacity, and miscellaneous needs.  

Keep in mind that you can save on staffing costs and cut down on overhead with technology that helps to streamline your centre’s operations. After all, 40% of Millennials prefer self-service over human contact when interacting with businesses.   

It’s essential that you find ways to enable families to book tours and enrol online without ever having to make a phone call to the centre- reducing time spent on necessary-but-manual tasks for both your staff and inquiring families.  

Finally, articulate your profits and losses based on the data from your sales forecast and your personnel plan plus a list of all your other ongoing expenses associated with running your childcare centre.  

Step 1 : Average daily rate per child x your expected enrolments x 12 (annual revenue – assuming each family is still enrolled during the holiday periods).  

Step 2 : Childcare businesses make around 16% profit from their overall revenue, after Childcare expenses. Multiply your number from step 1 by .16 to get your predicted profit.  

Example : Let’s say you plan to charge families an average of $110 per day for childcare. With that, your goal is to enrol 60 students by the time your childcare centre opens. Multiply ($110 x5) 60 x 12 (annual revenue). This should come out to $396,000. Lastly, multiply your revenue of $396,000 by .16, which equals a net profit of $63,360 per year.  

Consider various funding sources.

Depending on your situation, there’s both loan and grant funding in childcare. Between state tax credits, loans, and grants – there are financing options for a variety of situations.  

Collect childcare grants for your business.

Often, startup costs for opening a childcare are high. Certain states and councils offer grants for new childcare businesses. There are several grant options, depending on your child and family details.  

For example, companies and associations such as Australian Grants or Early Childhood Association Australia can help you with more information or support towards applying for these grants and funding.

All legitimate businesses, including childcare will need to apply for an ABN (Australian Business Number) that identifies your business to the government and the community. 

Find the Right Vendors

Choosing the right suppliers for your business is essential. If your vendors aren’t reliable or don’t deliver quality products, your new centre will struggle to attract families. As a childcare provider, you will likely need the following vendors at one point or another:  

Electrician 

Plumber 

Food and Beverage Supplier 

Educational Materials Supplier 

Substitute Staffing Provider 

Accountant 

Cleaning & Maintenance 

Childcare Management System (CMS) 

Customer Relationship Management (CRM) Software 

Digital Payments Provider 

Online Forms Software 

Research Your Vendors

Check their most current reviews and current list of clients.

Review Your Options

Don't settle for the first vendor you see, research and receive quotes from at least 3 vendors.

How to gain enrolment at your childcare.

The next step after successfully starting your daycare business is to grow your centre and gain enrolments.  

Begin by building a string company culture, actively marketing your childcare centre, and finding the right childcare technology to optimise your enrolment process and save time.  

Create a culture where staff want to work.

A childcare centre that stands out from the rest has happy staff members that want to work hard. Create a diverse employee culture that feels comfortable openly talking about situations. Provide support, patience, and room for growth.  

Market your centre.

A childcare marketing strategy starts with an achievable goal. Do you want to fill your enrolment spots? Do you want to build a waitlist? Should you focus on scheduling more tours?  

Choose an objective and measurable results – so you can track and analyse your marketing performance.  

Market, promote, and advertise your childcare centre with...  

Social media (especially Facebook – 83% of Millennials have a Facebook account).  

Landing pages and contact forms on your website  

Listing directories  

Email and text marketing campaigns  

Referrals  

Digital advertisements  

Flyers  

Word of mouth marketing  

Tip: Childcare software that automates the reports you need helps you to saves time and improve your return on investment (ROI).  

For example, with a Source of Families report, you can see where your leads are coming from. It helps you enhance your marketing efforts and refine your spending. Invest in the channels that are popular and spend less on the ones that aren’t working to generate more high-quality leads.  

Find the right childcare CRM software to manage enrolment with less work.

ChildcareCRM is revolutionary childcare software that automates lead capture, follow-up, scheduling tours, and reports. With digital enrolment forms  – you and your staff will save hours of time. Plus, craft beautiful, personalised marketing campaigns to continually grow your business.  

Further, marketing is the growth engine for every new childcare centre. But missed leads, slow response times, a complex parent experience, and lack of reporting make marketing difficult. Busy and overworked staff often don’t have time to complete every manual-but-necessary marketing activity, so opportunities are lost.   

Get more from your marketing while saving educators and centre directors 10 hours every week with ChildcareCRM. Automate everything from lead capture to reporting—all from one place.

For Current Users

Visit our website to learn more.

For Interested Users

Schedule a demo to take the next step and effortlessly increase occupancy and gain enrolments from the get-go.  

Get started With LineLeader.

Resources to help you run your childcare business..

A Better Way to Bill: 5 Steps to Streamline Before & After Care Billing

4 Childcare Marketing Ideas That Drove Enrollment

5 Steps to Better Lead Management for YMCA Preschool Programs

• Business planning and strategy

Education/Childcare/Child Enrichment Business: Example Business Plan

Interested in setting up your own daycare or child enrichment program? We’ve created and example business plan to help you get writing!

Are you a early childhood educator with a passion for working with children? Do you have a strong interest in maintaining cultural heritage amongst youngsters? Writing a business plan will help you to identify your ideal customers and make clear your specialized services.

To help you get started we’ve created an example business plan for a childcare business. Our example focuses on a company that offers a daycare enrichment program, but it will work as a framework no matter what childcare services you are offering. Click the ‘Download Tool’ button to gain access to the word document.

You can also find the same example in the Business Plan Writer , our free online tool that guides you through the process of starting your business. Just select “Education/child care/child enrichment” as your industry when you register.

Good luck and happy writing!

Related resources

• Entrepreneurship

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Early Childhood Education Business Plan Template

Download this Early Childhood Education Business Plan Template Design in Word, Google Docs, PDF Format. Easily Editable, Printable, Downloadable.

Our comprehensive Early Childhood Education Business Plan Template serves as a meticulously crafted roadmap to success for aspiring education entrepreneurs. Designed to guide you through market analysis, financial projections, and more, this document ensures your venture thrives, providing exceptional care and education for young minds.

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12 unique daycare business ideas you’ll love.

Looking for unique daycare business ideas that can help you supplement revenue from your existing child care program? Or maybe you’re passionate about working with kids and would love to start a child-centered business that doesn’t follow the typical child care center business model?

In this blog post, we’re sharing 12 of our favorite business ideas for expanding your existing child care operation or launching a new program from scratch.

Our 12 daycare business ideas all have two things in common. First, they all involve working with kids and providing valuable services that support their healthy development and early education. Second, each of these unique daycare business ideas can work as a stand-alone business model or an addition to your existing child care program.

We hope you’ll enjoy reading our list and putting some of these daycare ideas into action!

12 Daycare Business Ideas You’ll Love

Offer a child transportation service.

Parents spend hours of time shuttling their kids around every month – whether it’s to and from school, your child care center or their favorite after school programs. A child transportation service helps relieve that stress for parents, and saves them time.

If you’re currently operating a child care business, you could start by offering to pick kids up from school or their homes, transport them to your program, and return them at the end of the day. You’ll need a drivers license, a safe vehicle with insurance, car seats as needed, a pick-up schedule for parents, and a planned route for the morning (pick-up) and the afternoon (drop-off).

You could even offer a school bus service if there’s sufficient demand in your neighborhood.

Start an Overnight Care Program

Most child care centers are open during the day – typically from 7 a.m. until around 6 p.m – but what about parents who need child care overnight?

There are lots of reasons why parents would want overnight child care: maybe they want to pick up extra night shifts, or perhaps they travel for business. To meet the needs of these parents, you could even offer a weekend care program that extends your child care hours from Friday evening until Monday morning.

An overnight or weekend care program should provide 24-hour care services and a quiet space where kids can enjoy quality sleep.

Free Report

2023 child care industry trends report.

We conducted an email survey of more than 100,000 child care leaders and teachers. See what they had to say about the current state of the industry.

Start an Evening Care Program

With most child care centers closing by dinner time, many families don’t have reliable access to child care in the evenings – usually after 6 p.m. There’s a huge demand for child care services during this time, as parents may need to attend a work event or travel to a doctor’s appointment.

In some cases, parents just want to enjoy some free time without the kids.

If you’re already operating a child care center, you can start an evening care program by extending your hours until 10 or 11 p.m. on Friday, Saturday and Sunday evenings. If there’s enough demand in your area, you could even offer evening hours care during the week.

Offer Child Care for Travelers/Tourists

Parents take their kids on vacation, often for weeks at a time, but they may also want a break from child care duties so they can relax or visit attractions that may not be kid-friendly.

If you live in a tourist destination, or near a hotel, it might be worthwhile to start advertising child care services for travelers and tourists.

You might be able to form a cross-promotional partnership with a local hotel owner/operator, or even start running a child care operation from inside the hotel.

Start a Baby Clothing Line

Starting a baby clothing line is a great way to supplement your existing daycare business plan .

If you’re running a child care operation that offers infant care service, you’ve already got access to a quality audience for your products, space for retail sales and a child care brand you can integrate into your clothing designs. You could even sell your clothing line to a wider audience using digital channels like social media or an ecommerce website.

Curate and Sell Children’s Books & Educational Products

Engaged parents want to provide their kids with high-quality books, toys and educational products that help their kids grow and develop. As a trusted child care provider, you’re uniquely positioned to recommend books, activities and educational toys that can help each child hone their natural gifts and talents, or shore up areas of weakness.

If you’re the creative type, you could design and market your own educational toys and games, build an early childhood education app or publish a children’s book with the ideas and lessons you feel are most important for kids today.

Start an After School Tutoring Club

An after school tutoring club is a space where kids of all ages can gather to get help with homework, play age-appropriate educational games, or participate in learning challenges and activities.

Your tutoring club could include activities like trivia, word games and math puzzles that encourage kids to develop their general knowledge, vocabulary and teamworking skills. You could hire local high-school kids as tutors, or establish a program where older kids earn volunteer credit by providing free tutoring to younger kids who need extra help to succeed academically.

Offer a Private Sports Coaching Service

There are significant advantages to getting kids started with sports early in life. Early exposure and quality coaching in basketball, baseball, football or soccer can help kids develop a love of sports that leads to healthy lifestyle choices, better self esteem, positive community involvement, and job or educational opportunities.

Your ability to offer private sports coaching depends on your own skill or experience in a popular sport and the resources you have available. You’ll need access to the proper sporting equipment and facilities to ensure high-quality practice in a safe environment.

Expand Your Business into Party Rentals or Event Hosting

Pivoting into party rentals or event hosting is one of our favorite child care business ideas.

If you’re currently operating a child care business, you may know parents who love to throw their child an extravagant birthday party each year. You can get in on the action by offering to host children’s parties at your center, or purchasing extra child care toys and equipment that parents can rent for their child’s party.

Some popular rental items for kids parties could include:

• An indoor or outdoor event space
• An inflatable bouncy castle
• A water gun collection
• Outdoor lawn games
• Carnival games
• Child-friendly furniture
• Decorations

Offer Swimming Lessons

If you love working with kids, are an expert-level swimmer and have access to a pool, you can combine your passions by offering swimming lessons to kids in your area.

Parents recognize swimming as a healthy lifestyle activity and a skill that could potentially save their child’s life in the future. Every kid should have the opportunity to learn basic aquatic skills like treading water, floating, kicking and rudimentary swim strokes that they could use in an emergency situation.

When you’ve got kids around water, safety has to be the number-one priority. Make sure you’ve got adequate supervision for the kids and be clear about the most important safety rules: no running near the pool and no horseplay.

Offer Music Lessons

Studies are conclusive that playing and experimenting with music accelerates brain development in young children. If you love music and want to work with kids, why not offer private music lessons or start a music-focused child care program for kids in your neighborhood?

Here’s why offering music lessons is a winning child care business idea:

• Low Startup Costs – It’s easy to find cheap instruments (recorders, harmonicas, drums, etc.) for kids to start playing with.
• Big Benefits – Kids develop counting, rhythm, abstract thought, musicianship and teamworking skills that can lead to extra credit toward their education, job opportunities and positive community involvement.
• Easy to Market – Kids love to experiment with music, and the benefits of musical education are already well known, so you won’t have too much trouble convincing parents to register their kids.

Start Teaching Computers and Coding

We live in a digital world where some of the best and highest-paying jobs are in software development and IT – so how early should kids start learning to code?

The answer might just be “as early as possible.” Just like learning another language (e.g. Spanish, French, German), kids who start early in life will learn faster and get further than peers in their age cohort. We’ve seen coding programs targeting kids as young as six years old.

Developers have already created apps and software programs that introduce kids to coding with simple, pattern-based drag-and-drop exercises. Your business could provide the space, equipment, expert coaching, community support and unique opportunity for kids to get a head-start learning this vital skill that can prepare them for a successful future.

Grow Your Child Care Business with Procare Solutions

Are you excited about launching your daycare business idea, but worried about handling registrations, student attendance tracking , class schedules, payments and other program management details?

Procare is here to help, with trustworthy, modern and easy-to-use child care management software for your child care center or after school program . Our expertise in child care has helped us create easy solutions for child care billing , attendance tracking, staff management and program registration – everything you need to successfully run your program every day.

Ready to bring your daycare business idea to life with Procare?

Request a Demo

Talk with a friendly Procare expert to get a tailored child care solution for the unique needs of your business.

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• Name First Last
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• Business Type Business Type In-Home Child Care A Child Care Center Multi-Center or Franchise Centers School District Before and After School Program
• Role Role Owner Director Assistant Director Administrator CPA/Bookkeeper Teacher Parent Educator Consultant Other
• Center Status Center Status An Established Center A New Center - Opening Soon Current Procare User Other
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Why Businesses Should See Early Childhood Development as a Smart Investment

Subscribe to the center for universal education bulletin, emily gustafsson-wright emily gustafsson-wright senior fellow - global economy and development , center for universal education.

April 14, 2014

In an increasingly competitive global economy, both job-specific skills and “soft skills” such as resilience, teamwork and creativity, are fundamental. Research shows that the development of these skills begins during the first few years of childhood. Last week, the Center for Universal Education at Brookings (CUE), the Global Business Coalition for Education (GBC-Education), and Ready Nation/America’s Edge hosted a webinar on the business case for early childhood development.  The webinar kicked-off a new partnership between CUE and GBC-Education—Business for Early Childhood Development (Biz4ECD).  This partnership aims to raise awareness of the economic and social benefits of early childhood development (ECD) among the business community and accelerate the involvement of business in influencing developing-country ECD policies, programs and investments at the corporate, national and global levels. The webinar included an impressive lineup of speakers who presented evidence on why investing in ECD is important and how businesses can and are making a difference.

Dr. Paul Gertler, Li Ka Shing professor at the University of California, Berkeley, set the stage. He noted that only 40 percent of pregnant women have access to acceptable ante-natal care, and that 1 in 4 children in developing countries are stunted, conditions known to impair the cognitive development of children. Merely 17 percent of preschool age children are enrolled in early childhood education programs. Gertler then presented the scientific, economic and equity arguments for early childhood investment:

• The scientific argument : the first 24 months of life are when the brain forms the most synapses.  This is the most important time to stimulate and nourish brain development.
• The economic argument : investing early yields a much higher return on investment than any other time in the life-cycle.
• The equity argument : early investment levels the playing field and prevents the emergence of large inequalities (like the number of words spoken). As a result, poor children benefit the most from early childhood interventions.

Mr. Roy Bostock, vice chairman of Delta Airlines, presented a compelling business case for ECD investment. By 2020, two-thirds of jobs will require more than a high school diploma. In order to obtain a bachelor’s or master’s degree, students must of course first graduate from high school. Bostock cited evidence from the United States that shows the likelihood of graduating from high school increases fourfold if children read at grade level by third grade, while chances of reading at grade level are doubled if children start school ready to learn. Quality early childhood interventions are the key to preparing children who are ready to learn. Great strides have been made in the United States business community to support ECD. Almost every state in the country has active business roundtables and chambers supporting early childhood. Other ways that businesses serve as advocates for ECD include: sharing information with employees, contributing time, resources, and volunteers to local organizations, talking to the media, and communicating with elected and appointed officials and encouraging their local business organizations to develop formal positions and host events on the benefits of ECD programs. Finally, the business community can sponsor scholarship opportunities as well as support the development of tools for ECD teaching and training.

Mr. Stephan Turnipseed, president emeritus and executive director of strategic partnerships at  LEGO Education , gave concrete examples of his organization’s commitment to ECD around the world. LEGO Education engages in ECD in three ways: philanthropy, corporate social responsibility (CSR) and public-private partnerships. For example, LEGO’s philanthropic work supports programs in East Africa, Ukraine and China through teacher education, project coordination, products and funding. Its CSR work includes supporting local schools near its plant in Connecticut. Finally, they are engaged in a public-private partnership, between LEGO A/S and Billund municipal government in Denmark, in which they conduct research on ECD, learning and creativity.

We concluded the seminar armed with solid scientific and program evidence and heartened by successful examples of business engagement in ECD.  Rarely do the business, economic and equity arguments all point in the same direction as they do for ECD. Through our relationship with GBC-Education—Biz4ECD—we hope to catalyze the global business community to organize around advocating for ECD and to harness its power to make a difference in this often neglected area of public policy.

Early Childhood Education Global Education

Global Economy and Development

Center for Universal Education

August 2, 2024

June 20, 2024

Elyse Painter, Emily Gustafsson-Wright

January 5, 2024

33 Ideas to Try Now for a Stronger Childcare Business

• brightwheel
• Running a business

This summer, many childcare and preschool directors are busy planning for the year ahead. In a recent webinar , we asked our community of early education leaders what their best tips were for strengthening their businesses in the new school year.

We hope these strategies will inspire you and that you’ll find some new ideas to try at your center! Here are the sections we'll cover in our post:

Reflect on the past year with your staff team and families at your center

Plan ahead for retaining and motivating your staff members, implement new, creative incentives to increase family referrals.

The end of the year is the best time to pause and reflect on the past 12 months at your center. As a director or administrator of your program, you may be accustomed to doing this by yourself or with your leadership team. However, it can be extremely valuable to gather year-end insights from your staff members and the families in your program as well! 

By asking them for their big-picture feedback on how the past year went, you’ll r emind them that they play a role in shaping the future of your business, helping to increase their sense of ownership and inclusion in your program. You’ll also have a clearer understanding of what went well and what could be improved from a number of different perspectives! 

You can use these questions as a starting point for gathering feedback:

• What should we start doing in the new school year?
• What should we stop doing in the new school year?
• What should we keep doing in the new school year? 

Ideas from our early education community—year-end reflection activities for your staff and families

• Send out newsletters to your families that reflect on the past year and ask them to respond with any reflections of their own 
• Set out suggestion boxes for staff and parents at your center
• Send family and staff surveys using a tool like Google Forms
• Host a year-end party with your staff team to enjoy each other’s company, reflect on the past year, and plan for the year ahead
• Go over your handbook with your staff team and make adjustments to policies based on what worked and what didn’t for the upcoming year’s handbook
• Send a thank you letter to families that includes a survey about how the past year went
• Set new years’ resolutions for career growth with your team during a staff meeting

The past few years have been some of the most challenging times in regards to staffing issues. A NAEYC report conducted earlier in the year revealed that 80% of childcare centers are reporting staff shortages, so if you’re experiencing hiring and retention challenges, you certainly aren’t alone.

Staff retention is a big, complex issue, and there are many contributing factors that you can’t control. However, don’t underestimate what you can do to boost morale for your team ! We’ve heard from countless providers that it’s doing the “little things” to support your staff that make a world of difference , such as covering your teachers’ classrooms so they can take a break, or simply asking “ How can I help you today? ”

If you haven’t already, take some time before the year ends to block off time in your weekly or monthly agenda in the new school year for staff support . Small acts of support done consistently can oftentimes make a bigger impact on your teachers than just doing one big thing every so often can! 

Ideas from our early education community—simple things you can do to boost staff morale throughout the year

• Give your staff opportunities to grow at your center by delegating tasks they actually want to do
• Verbally tell your staff how great of a job they are doing
• Ask your staff how they are doing and prioritize friendly conversations with them
• Surprise your team with coffee at staff meetings
• Give your staff a paid hour break
• Start an employee of the month program
• Cover your teachers’ classrooms for 30 minutes so they can take a break
• Help prep classroom materials for your teachers, such as making copies or gathering supplies for them
• Ask your teachers what kind of support they need in the classroom 
• Send frequent messages of gratitude 
• Bring your teachers a thank you card, just because
• Ask your staff what they need or what they need help with
• Be available every day by having an “open door” policy
• Assist in the classroom so your staff can take a walk
• Provide your staff with a floater for harder days
• Provide longer paid breaks compared instead of just the required minimum 
• Regularly ask, “ What will make your life easier? ”
• Prepare a resource binder with ready-to-go art, activities, games in case your staff need inspiration for their lesson plans

Word-of-mouth referrals from families can be one of your most powerful marketing tools , as new parents are more likely to trust other parents they’re already connected with. If you aren’t already using a referrals program at your center, the new school year is the perfect time to start! And, if you are, it’s well worth your time to see if you could improve your current program to make it more creative and compelling in the new year.

Ideas from our early education community—creative referral incentives to boost enrollment at your center

• Offer one free week of tuition to every family whose referral successfully enrolls in your program 
• Host a “family fun night” at your center where families can invite their friends who are looking for childcare options, and give families a gift card for every prospective family they bring
• Offer after-hours childcare for a parents’ night out or moms’ night out for every family who refers a new student 
• Give gift cards to local businesses
• Offer 50% off tuition for one week and mention families in your newsletter for every successful referral 
• Host a family fun day once a year for every parent who refers a new family 
• Offer a $50-$100 cash incentive 
• Gift families who refer new students tickets to something fun and local, like a concert or day at the museum 

How brightwheel can help

With brightwheel, you can make the next school year the best year yet at your center. Brightwheel makes it easy to:

• Help your staff enjoy their jobs more by giving them time back to spend time with students 
• Delight parents by sharing photos and videos of their children’s learning, all within the brightwheel app 
• Easily collect tuition online and give families the option to use autopay, so you never have to chase down late payments again 
• And much more! 

More helpful resources for strengthening your business

Check out these free resources to help you start the new year off strong! 

• [Webinar] The 5 Things to Do Now to Strengthen Your Childcare Business in 2022
• [Free eKit] The Parent Communication Toolkit: How to Wow Families with brightwheel
• How to Onboard New Childcare Staff: 8 Inspiring Ideas

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A collection of templates to help you create a new family handbook from scratch or update your existing handbooks.

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British Schools in Moscow - List with Reviews

Quick Links:  British Schools in Moscow ( 12 )   |   American Schools in Moscow ( 1 )   |   IB Schools in Moscow ( 2 )   |   All Schools in Moscow ( 23 )

Read about the different types of international school if you aren't sure what the difference is.

Don't miss our report on the Best Schools in Moscow

Cambridge International School, Skolkovo Campus 

Cambridge International School (CIS) Moscow was established in 2009 and soon became one of the leading international schools in Moscow and Saint Petersburg. Its principal aim continues to be the provision of an excellent education based on the Cambridge International Curric... Read More

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The International School of Moscow, Rosinka 

The International School of Moscow (ISM) Rosinka offers a contemporary English international education to students aged from 2 to 11. Established in 2007, the School has a student body of over 1000 and boasts more than 60 nationalities. ISM Rosinka welcomes students aged 2-11. ... Read More

Britannia School 

Britannia School Moscow is a traditional British Nursery and Primary school that teaches students from the age of 1,5 years old to 7 years old. We follow the British Early Years Foundation stage (EYFS) and the English national curriculum. All lessons at Britannia School are taught... Read More

English International School Moscow 

English International School Moscow offers a warm and welcoming setting, in which students can develop a love of learning and parents are an integral part of our school community. We encourage regular communication with parents as we believe that working in partnership is the key t... Read More

English Nursery and Primary School 

English Nursery and Primary School (ENS) is a family of 5 schools in Moscow and the Moscow region, aimed specifically at the needs of children from 2 to 12 years of age. ENS has 17 years of experience in childhood development and education, basing their specialised provision on th... Read More

The International School of Moscow, Krylatskoe Campus 

The International School of Moscow (ISM) is a leading international school in the region, with a strong academic track record. ISM welcomes students aged 2-18 and offers unique Secondary and Sixth Form opportunities due to the large international student body and a wide variety ... Read More

British International School Moscow 

At the British International School Moscow (BIS), we welcome and educate students from around the world. We help facilitate new families settling into Moscow and are aware that parents who relocate need to be reassured that their children are educated and develop in a safe and secu... Read More

Heritage International School 

Heritage International School offers a supportive international environment and world-class education and care for children from 2 years old in Moscow. The education is based on the British curriculum with lessons conducted in English by highly qualified international teachers. ... Read More

The English School of Science and Technology 

International English School of Science & Technology (ESS)  is a co-educational independent school that offers students from diverse backgrounds the best of English national education. The school is firmly based on the academic standards found in a typical, high-quality British ind... Read More

Russian International School 

Russian International School (RIS) is an international school which is dedicated to educating children from 2 to 18 years old. RIS implements the highest standards of International and Russian education, which provides exceptional academic success to students at all levels.  T... Read More

Cambridge International School, Moscow Campus 

Cambridge International School (CIS) was established in 2009 and soon became one of the leading international schools in Moscow and Saint Petersburg. Its principal aim continues to be the provision of an excellent education based on the Cambridge International Curriculum wh... Read More

Cambridge International School, Gorki Campus