How to start your own daycare center: A step-by-step guide

July 20, 2022    Child Care Courses in Perth

Are you wondering how to start your own daycare center? You have arrived at the right place!

With more and more parents working outside the home, the need for daycare centers is at an all-time high. Children, particularly those who are pre-school aged needs to be taken care of. This could be in the form of nannies, babysitters, daycare facilities, etc. However, most Aussie parents with kids under the age of 5 prefer an organized daycare center for their kids.

This is why starting your own daycare center is a lucrative opportunity. But starting a new business can be a tricky task so we’ll guide you on how to open your daycare center. This article will tell you all you need to know about how to create your own daycare all by yourself. Also, starting a daycare center can be very fulfilling both emotionally as well as financially.

So if you want to know how to start your own daycare center in Australia, read on!

Why Should I Start a Daycare?

Why Should I Start a Daycare

Before you learn how to open your own daycare center, you may think about why should you do so and if it’s the right career path for you. Here is why you should start your own daycare.

Building a daycare can be daunting, but it can also be very fulfilling. While success is immeasurable and subjective, many daycare business owners find joy in their startup journey. So it could be your passion for kids or to help out parents, there can be several reasons to open a daycare.

What’s crucial is that you also need to take into account your unique personal objectives for wanting to open a daycare. These motives will then drive you to go after your dreams. Even though it may not be a simple task and will require effort on your part, the payoff is definitely worth all of it.

The advantages of starting a daycare

advantages of starting a daycare

If you are unsure if starting a daycare is the right decision for you, here are some advantages for you to consider:

  • Emotionally fulfilling: Working with kids requires patience and can eventually be very emotionally rewarding.
  • Financial independence: Learning how to create your own daycare center allows you to be in control of your income rather than depending on a paycheck.
  • Personal child care: If you have a child of your own, you can take care of them while running your childcare. This will not only save you money but also give your child a chance to interact with other kids.
  • Continual education:  Knowing how to create your own daycare center can also provide you with new opportunities in the childcare sector. You may be offered job positions and you can even pursue additional relevant education.

What are the costs of opening a daycare center?

These are the costs that you must consider before opening a daycare center

The average startup cost for a daycare facility is $10,000 to $30,000. This cost varies largely based on if you’re opening a home-based daycare or leasing a separate place for your daycare center.

If you don’t have that much money in your bank account, don’t freak out. There are several grants and loans that you can avail of to start your child care center. Plus, many local businesses will extend financial assistance to help out new child daycare centers. This is why you can consider reaching out to your locality for financial help.

Now, let’s see how to start your own daycare center from scratch!

16 Steps to Starting a Daycare Center

Steps to Starting a Daycare Center

Starting any small business, in general, requires time, effort, and patience. We have highlighted the steps that’ll guide you on how to open your own daycare center. But as you already know— there is no one “perfect” way to ensure success. We can only map out the journey, but it’s you who’ll have to learn and unlearn the ways leading up to the success of your daycare center.

Here is a comprehensive step-by-step on how to open a daycare center in Australia:

1. Learn About Daycare Licensing Requirements

In order to start your own daycare center, you have to duly qualify the licensing requirements to conduct your business legally. Licensing is a must to legitimize your small business and avoid getting into any legal trouble.

2. Consider Taking Early Childhood Education Classes

As the next step, you can consider getting a certificate in early childhood education. You can easily find in-person classes at any local community college or opt for an online course. With the help of this degree, you’ll acquire a better understanding of how kids think and need, and the useful ways in which you can care for them.

3. Create a Daycare Business Plan

To open any kind of small business, having a business plan surely helps. Creating a proper business plan will help you establish realistic goals for your startup, build a business structure, decide on your services, etc. I

n the case of a daycare business, you’ll set your daycare’s mission statement, mode of operations, staffing requirements, and financial budget. This business plan tracks your progress as a daycare owner and continually strives for success.

4. Find a Location for Your Daycare

If you plan to run your daycare at your home, this step is easy to figure out. If that’s not the case, you’ll need to search for a location to open your daycare facility.

5. Get Insurance for your daycare business

Most daycare centers require different kinds of insurance to keep children and businesses guarded. These insurance policies mostly include workers’ compensation, property, liability coverage, business insurance, etc.

6. Seek Out Grants and Funding

As we previously mentioned, there are many kinds of costs related to building a daycare facility. If you don’t have the funds required to cover the initial costs of your startup, you’ll need to explore funding options.

(6.1) Costs Associated with Starting a Daycare

There are many things you’ll need to purchase or rent to get your business started. These costs typically include:

  •  Daycare space rent
  •  Play equipment for both indoor and outdoor
  • Toys
  • Cleaning supplies
  • Art supplies
  • Care supplies for kids (diapers/wipes etc)
  • Business PC
  • Licensing cost
  • Food
  • cups, bottles, plates, etc.

7. Prepare Your Daycare Center

Once you have decided on a location and secured the required materials and equipment, you need to plan out your daycare facility. Start with cleaning your facility and sanitize with a good disinfectant. Then, follow the necessary steps to childproof the space as per the ages of the children your center will be tending to.

8. Draft up a Contract

For any small business owner, it is crucial to have a contract in place. In the case of daycare centers, the parents that visit your facility are your clients, and you will want to have a proper contract in place to guard yourself against any legal troubles.

9. Develop policies and procedures

You will also need to set policies and procedures for the parents that visit your daycare and your assistance staff. These policies include an emergency plan, safety protocols, privacy settings, and a code of conduct for your facility.

10. Research Possible Tax Credits

If you open an in-home daycare, you may qualify for certain tax reductions as you’re making use of your home for business purposes. This may allow you to write off your housing cost partly. This is also applicable when your daycare center is used as a family room after hours.

11. Hire staff to help you run your daycare

When you first open your daycare center, you may just be a one-man army, so you can easily avoid the cost of hiring unnecessary help. But as your center starts running efficiently over time, you’ll need to hire people to care for the kids throughout the day.

12. Market your daycare business and seek applicants

There are several methods to popularise your daycare. One way is by creating flyers and posting these around your local area—at businesses, schools, convenience shops, and cafes. You can also consider running paid ads on Google or Facebook to attract families from your local community.

13. Invest in child care software

One of the most effective ways to start a daycare is to take make use of the modern daycare technologies that can be easily purchased. With the help of childcare software, you can streamline your managerial tasks. This gives you more time to provide parents with quality childcare facilities.

14. Promote Your Daycare on Social Media

Make a business Facebook page to share more info about your daycare center, post client testimonials, and keep your clients updated with new events at your center. You can also make use of Instagram and LinkedIn profiles by using targeted hashtags and inviting families in your locality.

15. Provide Top-Quality Care

The success of any daycare center depends on its ability to offer top-notch care to your client’s children. If the little ones at your center are efficiently cared for and look forward to coming to your daycare, you’ll surely generate more referral business. Child care must have all the top skills to provide top-notch quality care.

16. Manage Your Business Finances

You also need to properly manage your business finances. Doing that takes more than just tracking revenue and expenses. You also have to plan for taxes and make well-thought decisions when it comes to the proper allocation of your funds.

Start the daycare center opening process today

Now that you know all about how to start your own daycare center, don’t waste more time being on the fence. Start the process today!

Opening your own daycare business can be tough but also highly rewarding. The process can be made easier by having a general understanding of how and where to start. We hope this guide has offered some insight on how to get going and launch a daycare center of your own!

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