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Daycare Center Costs


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  • This is very informative. We will share this on for our Ready to Soar blog. Our blog is a learning platform for parents, teachers, and childcare providers.
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  • 1. Daycare Center Costs
    Brought to you by the business experts at
  • 2. There are 2 ways you can start a daycare center:
    Run a service out of your house
    Find a full-scale daycare center that you can take over.
    As for the daycare costs, if you're operating out of your home, you can expect to invest as little as $500 to as much as $5,000; this all depends on the the equipment and supplies you will need to purchase, the amount of remodeling you will need to do, and the licensing requirements you will need to meet.
  • 3. If you are planning on operating a daycare center from an independent business location, there are much greater start-up daycare costs involved, which can run up to as much as $100,000.
  • 4. Important Items to Budget For
    First aid/CPR certifications
    Safety devices
    High chairs and booster seats
    Licensing fees
    Sleeping mats
    First aid kits
  • 5. Basic Daycare Requirements
    Even if your state does not require a license, it would be in your best interest to obtain one before opening up a daycare facility.
    A licensed daycare, which has received the approval of the government, will seem more trustworthy to potential customers; they will be more likely to feel comfortable with the idea of enrolling their children at your facility, which will justify daycare costs in the long run.
  • 6. Before you can open up your daycare center, you will need to familiarize yourself with your state's daycare regulations and requirements to avoid problems and unforeseen daycare costs in the future.
    Inquire about daycare licensing requirements at your state's Department of Human Services. They will either mail you the information you need, or refer you to a local agency in your area that will be able to assist you.
    Some states will require you to allot a minimum area per child (inside and outside your facility) and at least one meal a day.
    You may also be obligated to have a licensed teacher for every 15 to 20 children enrolled, and even a licensed nurse, which will raise your daycare costs.  
  • 7. Trainings and Certifications
    Another factor affecting daycare costs is the mandatory certification courses that your state may require before you open up your facility.
    Depending on your state, you may need to undergo a life-saving course such as CPR, or similar safety courses.
    Some laws may even necessitate trainings like child health and safety, nutrition, child development training, and business management.
    Even if they are not required, taking them would be a worthwhile investment; related certifications and achievements will make you appear more qualified to your community, which will tend to generate more business for you.
  • 8. Business Goals
    Set business goals for your daycare center, and determine the number of children you would like to accommodate at your daycare facility on a weekly basis.
    Some daycare laws place limits on how many children your facility can attend to at one time, while other states only require a daycare license for a facility that may care for large groups of children onsite.
    Keep in mind that your state may also require CPR certification and other trainings, in addition to a daycare license.
  • 9. Income
    Many day care centers across the country are operating with enrollments of 35 to 65 children, but are barely breaking even. This is generally due to state government regulations, which cause excessive operational overhead costs. Thus, in some states, you will need to handle around 150 to 200 children in order to offset daycare costs and achieve annual profits in the 'before taxes' bracket of $100,000.
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