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How to Start Daycare Center Business?

calendar06 Jun, 2023
timeReading Time: 5 Minutes
Start Day care centre

The safety of children is a massive concern for most families; parents do not have adequate time to care for their young children, so they prefer to send them to daycare centers. Opening a daycare center can be a rewarding and profitable choice for people who love working with kids. Nowadays, both the mother and father go to work in many households. That is why starting a daycare business has become an excellent way for new-age entrepreneurs to make money. If you enjoy being around children and know how to care for them, starting a daycare can be an easy business with very little money. It’s also a good option for women and homemakers looking for employment. So if you are wondering about “How to Start Daycare Centre”, keep reading!

How to Start Daycare Centre: Steps Involved in starting one

Let’s understand the step-by-step process to start a daycare business:

Step 1: Research the market

If you are unaware of How to Start Daycare Centre”, the first step should be conducting related research for your service. This involves assessing your area’s demand for daycare services and understanding the competition. Like any other business, running a daycare requires certain qualifications and special abilities. Although it may appear straightforward, working with young children demands the utmost care and caution. To succeed in this business, it is very important to possess the following qualifications. Furthermore, starting a daycare can also be an excellent employment option for women and homemakers.

Step 2: Develop a business plan

After finishing the research, the next step is to create a business plan for your daycare center. This plan should provide a comprehensive overview of your center, outlining the services you will offer to your target market, your pricing strategy, and your marketing plan. It should also include a financial section outlining your startup costs, operating expenses, and projected revenue. Your business plan will act as a roadmap for your daycare center and will be instrumental in securing financing from investors or obtaining a loan from a bank.

Step 3: Investment for business

The initial investment required to start a daycare business can be kept at a minimal level. You can begin the business from your home or consider renting a suitable space. Additionally, you can initially start with limited resources and gradually increase them as the business grows. This approach allows you to avoid excessive financial burdens in the beginning. It is possible to initiate this business with an investment ranging from 50,000 to 100,000 rupees.

Step 4: Registration and license

Obtaining a child care license or business license is typically required in the “How to Start Daycare Centre” process, and the specific number of children allowed may vary depending on your location. In addition, compliance with local and state regulations regarding staffing, safety, and health standards is necessary. It is essential for the applicant of the daycare to have completed training and obtained a certificate related to child care to meet the requirements. These measures ensure that the daycare center meets the necessary standards for providing proper care to children. Apart from the ones mentioned, you will need the following licenses and approvals.

  • Company Registration under the Companies Act
  • A license under the Shops and Establishments Act
  • NOC from the municipal corporation[1]

Step 5: Choose a good location

Once you have obtained the license, the following step is to secure a suitable location for your daycare center. It is a wise approach to choose a location that is easily accessible for parents and situated in a safe and convenient area. Having the daycare center near a major road can greatly contribute to the business. It is also important to consider proximity to residential areas, as the daycare center should be close to where families reside. Moreover, selecting a location close to other schools, parks, and other child-friendly attractions is beneficial. This ensures convenience for parents and offers opportunities for engaging in activities. Lastly, ensure the location has ample space to accommodate the necessary services, including play areas, dining areas, and sleeping areas for children.

Step 6: Adequate space and infrastructure

Children generally spend around 8 to 12 hours at a daycare center, requiring various amenities such as meals, beverages, rest, and playtime. As an entrepreneur, arranging and providing all these facilities individually for each child is essential. A daycare center requires a substantial amount of space and appropriate infrastructure to accommodate these needs. If the entrepreneur has available vacant space in their house, they can use it to start this business and generate income. However, if the entrepreneur needs to possess suitable land, they may need to consider purchasing or renting a building for the daycare center.

Step 7: Buy the equipment

In your journey towards “how to start a daycare center”, you will need the knowledge of the essential equipment such as toys, furniture, and learning aids to offer a fulfilling experience for children. To start a daycare business, you will likely require the following equipment: children’s furniture like tables, chairs, and desks; art and craft supplies including pencils, crayons, and paper; safety scissors; toys such as games, puzzles, and building blocks; and healthy, nutritious meals and snacks for the kids. Additionally, storage containers for personal belongings, coat hangers, and other organizational items may be necessary for the smooth functioning of the care center.

Step 8:  Hiring qualified staff

Having the right personnel is crucial for the success of your daycare center. Hiring experienced and qualified caregivers with a genuine passion for working with children is essential. Additionally, all staff members need to undergo background checks and receive training in CPR and first aid to ensure the safety and well-being of the children. In addition to hiring qualified caregivers, it is also necessary to employ administrative staff to handle the center’s day-to-day operations. Moreover, considering the appointment of a program director to oversee the curriculum and activities of the daycare center can be beneficial.

Step 9: Initiate quality care

Your quality of care is paramount in creating a safe and nurturing environment for children under your supervision. It is crucial to provide age-appropriate activities and educational programs that cater to their developmental needs. Ensuring the safety of the children involves having necessary safety equipment like fire extinguishers and disaster supplies readily available. Regular evaluation and feedback from parents play a significant role in improving the quality of your services. Additionally, setting appropriate fees is vital to starting a daycare center. You need to consider your costs and determine the amount you need to charge to make a profit while maintaining the quality of care provided.

Step 10:  Advertisement and Marketing

Employing various marketing strategies to attract new customers and establish a solid reputation for your daycare center is important. These may include direct mail campaigns, advertisements in local newspapers, and creating a website to showcase your services. Leveraging social media to promote your business can help expand its reach and attract more attention. Additionally, gathering customer feedback will enable you to improve and enhance your business operations based on their experiences.


A question such as “How to Start Daycare Centre” requires an understanding of the legal and procedural formalities of starting a daycare business and training and experience working with children. Running a daycare can bring fulfillment of work and provide you with financial success with limited investment. However, meticulous planning, thorough preparation, and a commitment to delivering exceptional care and education to children is required. In addition to focusing on providing high-quality care, paying particular attention to maintaining a clean environment and ensuring that the staff members exhibit appropriate behavior within the center is essential. Obtaining a daycare license is vital to starting this business, and the entrepreneur must acquire all relevant licenses as per their respective from the appropriate government authority to operate legally. Therefore, it is highly recommended to take expert consultation to register your business and acquire a valid license before initiating your childcare business to prevent any potential legal complications.

Read our Article:Different Licenses Required For Home Based Business

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