How to Start a Daycare: Step-by-Step Guide to Opening a Daycare Center or Childcare Business

To start a daycare: decide between a home daycare, a daycare center or a preschool, research local licensing rules and demand, write a business plan with startup costs and tuition, find a safe, compliant location, complete licensing, inspections and background checks, hire qualified staff that meet ratio requirements, set policies, curriculum and tuition, get insurance, set up software for enrolment, billing and parent communication, and market to local families.

Step 1: Choose your model

Step 2: Research demand and rules

Waitlists at local centres, family demographics, employer needs, and your state/country's childcare licensing regulations (ratios, space, training, safety).

Step 3: Business plan and costs

Startup costs (facility, renovations, equipment, licensing, insurance), operating costs (staff are the largest), enrolment projections, tuition and subsidies (see How much does it cost to open a daycare?).

Step 4: Location and safety

Square footage per child, outdoor play space, fire exits and alarms, child-safe fixtures, kitchen and bathroom requirements, accessibility, zoning approval.

Step 5: Licensing

Application, background checks, health and fire inspections, staff training (CPR/first aid), policies and records (see How to get a daycare license).

Step 6: Staff

Qualified caregivers and teachers meeting adult-to-child ratios, background checks, training, and a director if required.

Step 7: Policies and curriculum

Parent handbook (hours, fees, illness, pickup, discipline), daily schedules, age-appropriate curriculum, meals and nap routines.

Step 8: Insurance

General liability, property, workers' comp, and sometimes accident and abuse/molestation coverage.

Step 9: Systems and software

Childcare management software for enrolment, attendance, billing, staff scheduling and parent communication (see How to manage daycare communication).

Step 10: Market to families

Website with programmes, photos, tuition info and tour booking (see How to make a booking website); Google Business Profile and reviews; parent groups; local employers; open days.

Frequently asked questions

How do I start a daycare?

Choose a model, check licensing rules and demand, write a business plan, find a compliant location, get licensed, hire staff to meet ratios, set policies and tuition, get insurance, set up software and market to families.

How do I open a daycare center?

Secure a suitable commercial space, meet licensing and building requirements, hire a director and staff, and complete inspections before enrolling children.

Do I need a licence to start a daycare?

Usually yes; most places require licensing for caring for unrelated children above a small number.

Is owning a daycare profitable?

It can be, with full enrolment, efficient staffing, appropriate tuition and controlled costs.

How long does it take to open a daycare?

Often several months, depending on licensing, renovations and inspections.

How do I open a preschool?

Follow similar steps with an education-focused curriculum and any additional early education requirements.