Home » Earn More » Startups » Operating a Business » How to Start a Daycare Center: 7 Steps for Success
assorted-colored Crayola crayons

How to Start a Daycare Center: 7 Steps for Success

Are you passionate about working with children and considering starting your own daycare center? This guide will walk you through seven essential steps to successfully establish and run your daycare center. From conducting research and securing a daycare loan to obtaining licensing, setting up the facility, and marketing your services, we’ll provide you with valuable insights to help you embark on this rewarding journey.

Step 1: Research and Planning

person in blue shirt writing on white paper

Research and planning are essential when starting a daycare center because they help you make informed decisions and set the stage for success. Research helps you understand the rules and regulations you need to follow to operate legally and ensure the safety of the children. It also allows you to learn about the needs of your community and the demand for daycare services, helping you tailor your offerings to meet those needs.

Conversely, planning helps you map out your goals, finances, and marketing strategies. It allows you to anticipate challenges and develop solutions in advance. With a solid plan in place, you can make better decisions about the location, facilities, and equipment you’ll need. Planning also helps you create policies and procedures for daily operations, ensuring that everything runs smoothly.

Investing time in research and planning gives you a clear roadmap for success. You’ll be better prepared to navigate the complexities of starting a daycare center, make wise investments, and provide high-quality care for children.

Step 2: Secure Funding

100 US dollar banknote

Securing the right type of loan for funding is crucial when starting a daycare center because it provides the financial resources needed to launch and sustain your business. Starting a daycare center requires various upfront expenses, such as leasing or purchasing a facility, purchasing equipment, and hiring staff. Without adequate funding, it can be challenging to cover these initial costs.

Securing funding allows you to create a safe and stimulating environment for children by investing in quality facilities, age-appropriate toys, educational materials, and safety measures. It also enables you to hire qualified, experienced staff members who can provide excellent care and support for the children.

Furthermore, having sufficient funds ensures the smooth operation of your daycare center in the early stages when revenue might be limited. It helps cover ongoing expenses such as rent, utilities, staff salaries, insurance, and supplies.

By securing funding, you set your daycare center up for success. It allows you to establish a strong foundation, provide high-quality care, and ultimately create a positive and nurturing environment for children to thrive.

Step 3: Find a Suitable Location

aerial photography of streett

Finding a suitable location is vital when starting a daycare center because it directly impacts the success and accessibility of your business. The location should be convenient and easily accessible for parents, who must drop off and pick up their children regularly.

A suitable location should also comply with licensing requirements, ensuring that you meet safety and regulatory standards. It should have enough indoor and outdoor space for children to play and engage in various activities. Consider factors such as safety measures, proximity to residential areas or schools, and parking availability.

Choosing the right location can also help you attract more families. A central location, preferably in a neighborhood with a high population of young families, can increase your chances of enrollment. It’s also important to consider the local competition and ensure that your daycare center offers unique features or advantages.

Finding a suitable location sets the stage for a thriving daycare center. It enhances convenience for parents, ensures compliance with regulations, and increases your potential for enrollment, contributing to your business’s overall success and sustainability.

Step 4: Obtain Licensing and Permits

handicap symbol

Obtaining licensing and permits is crucial when starting a daycare center because it ensures that you meet legal requirements and provide children a safe and regulated environment. Licensing and permits are necessary to operate legally and protect the well-being of the children in your care.

By obtaining licensing, you demonstrate your compliance with specific standards and regulations set by the governing authorities. These standards cover aspects such as staff-to-child ratios, health and safety guidelines, background checks for staff members, and appropriate facilities.

Licensing and permits also provide peace of mind to parents, as they know that your daycare center meets the necessary qualifications and operates under proper supervision. It helps build trust and credibility with families, enhancing your reputation in the community.

Moreover, obtaining licensing and permits may open doors to funding opportunities and government subsidies, making securing financial support for your daycare center easier.

Overall, obtaining licensing and permits is essential to ensure the safety and well-being of the children and to operate your daycare center legally while also building trust and credibility with parents and potentially accessing financial assistance.

Step 5: Set Up the Facility

Setting up the facility is crucial when starting a daycare center because it creates a safe, stimulating, and nurturing environment for children to learn and grow. The facility should be designed to meet the developmental needs of children of different ages, ensuring their physical, cognitive, and emotional well-being.

Creating a child-friendly space involves arranging age-appropriate furniture, toys, and educational materials that promote learning and exploration. Safety features such as childproof locks, smoke detectors, and first aid kits should be installed to ensure a secure environment.

Developing policies and procedures for daily operations is equally important. This includes establishing clear guidelines for staff-child interactions, health and hygiene practices, emergency protocols, and communication with parents. Well-defined policies and procedures promote consistency, structure, and efficiency in the daily operations of the daycare center.

A well-organized and inviting facility provides a positive experience for children and reassures parents that their children are in a safe and enriching environment. It helps build trust, satisfaction, and long-term relationships with families, contributing to the overall success of your daycare center.

Step 6: Recruit and Train Staff

Photo of Woman Teaching

Recruiting and training staff is crucial when starting a daycare center because the quality of your staff directly impacts the care and development of the children in your center. Hiring qualified and dedicated staff members ensures that children receive the attention, guidance, and support they need during their formative years.

Recruiting the right individuals involves thoroughly screening candidates, conducting interviews, and checking references. Look for candidates with experience working with children, relevant certifications, and a genuine passion for early childhood education.

Once you’ve assembled your team, providing proper training is essential. Training equips staff members with the necessary knowledge and skills to implement effective teaching methods, manage challenging behaviors, and ensure the safety and well-being of the children. It also familiarizes them with your center’s policies, procedures, and curriculum.

A well-trained staff team creates a positive and engaging learning environment, promotes healthy relationships with parents, and contributes to the overall success of your daycare center. The care and expertise of your staff play a vital role in shaping the experiences and development of the children, making the recruitment and training process crucial for long-term success.

Step 7: Market Your Daycare Center

multicolored marketing freestanding letter

Marketing is important when starting a daycare center because it helps you attract parents and promote your services in the community. Effective marketing ensures that your daycare center stands out among competitors and reaches the families who need your services.

By developing a strong marketing strategy, you can create awareness about your daycare center and showcase its unique features and benefits. This may include having a professional website, utilizing social media platforms, distributing flyers, or participating in local events.

Marketing also allows you to highlight your center’s curriculum, experienced staff, flexible hours, or additional services that set you apart from other daycare centers. It helps you build trust and credibility with parents who are looking for a safe and nurturing environment for their children.

Networking with local schools, pediatricians, community centers, and other organizations can also generate referrals and partnerships, further expanding your reach in the community.

Overall, effective marketing is essential to attract and retain families, establish a positive reputation, and ensure the success and growth of your daycare center.


By following the steps outlined above, you can set yourself on the path to successfully establish your own daycare center. From thorough research and planning to implementing effective marketing strategies, you can create a safe, nurturing, and thriving environment for children. Start your journey today and positively impact the lives of young minds in your community.

Leave a Comment

Your email address will not be published. Required fields are marked *


Stay in Touch With Us

Get latest from The Financially Independent Millennial in our Friday Newsletter