How to Open Your Own Childcare Facility

January 01, 2020

So, you are gearing up to open your own daycare business. Congrats – you’re about to enter a lucrative industry that rakes in $25 billion annually.

Before you break out the bubbly, remember that a daycare facility comes with its fair share of challenges.

That’s right.

Whether you’re a rookie or a veteran with years of experience up your sleeves in the daycare arena, the road ahead won’t be an easy walk in the park.

You need to secure financing, ramp up client acquisition, stay on top of licensing, meet local, state & federal regulations, start hiring … the whole shebang. It can be daunting.

That’s why we have put together this handy checklist to help make the entire process easy and hassle-free for you.

Licensing Requirements

You’ll need permits from local and state agencies, as well as meet licensing rules and regulations required of you as both a daycare business owner and a small business owner.

  • Child Care Aware of America has a great licensing resource that’ll come in handy
  • Make sure to do a thorough homework on all licensing requirements specific to your local city and state.

Craft an Actionable Business Plan

This is where things get interesting, and hard work, research, and commitment will do you good at this stage. A solid daycare business plan will help you secure a loan, breeze through the licensing process, and more.

  • Get a clear understanding of all costs associated with starting and running a successful daycare facility.
  • You might have to bring in a financial advisor or a daycare consultant to do all the heavy lifting.

Either case, ensure that your plan touches on every aspect of the business, including organizational, budgets, operations, staffing, marketing strategy, and mission/vision statement (just to mention a few)

Snap Up a Great Location

Location is everything to a daycare business. Pick a strategic place with childcare licensing, regulatory, and city’s zoning laws in mind. It should be child-friendly with an easy commute for the parents.

Get Insured

It’s good to be on the safe side than sorry. That’s why you need to acquire all daycare-relevant insurance policies, such as business insurance, workers’ compensation, property, liability, etc.

Get your Daycare Facility Ready

Perk up your daycare facility with run-of-the-mill necessities like supplies, stationery, furniture, and whatnot. But, you also need to have safety and security equipment in place, including disaster management supplies, fire extinguishers and more in between. Again, when it comes to anything to do with children, safety should be your #1 priority.

Draft Appropriate Procedures and Policies

A forward-thinking daycare business should have a handbook, procedures, and policies in place for caregivers, staff, and parents.

Get Hiring

Not everyone is suitable to work in a daycare facility. Ensure that each recruit goes through a thorough vetting process that includes top-down credentialing, background checks, and other forms of standard employment screening.

Market, Market, Market

You should get the word out about your upcoming daycare facility long before you swing the doors open. Once you’re open, keep on marketing your facility through all channels, including social media, referral network, email marketing, SEO marketing, local listings, the local chamber of commerce and much more.


Starting a successful daycare facility is no picnic. Leverage above checklist to breeze through the whole process and start your business on the right foot. But, why go through all the trouble when you can hire a consultant agency to take care of everything?

For additional information, contact Princess Shenette, your Daycare Design Specialist at 404-542-7308.

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