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How to Start a Child Care Business

Pay special attention to each of these steps to move your child care business from a mere concept to launch-readiness.

Location and Opportunity

Knowing the general area where you will open your child care center and spotting a good opportunity for the business are so closely entwined that it is difficult to do one without the other. The location must offer entrance into a customer market that has a clear need for your services, either because they are not being served by the existing businesses or because they could be served much better by yours. The opportunity for you to do a better job in the child care business is only relative to the location and market situation you choose.


At this point it would make sense to at least consider the team you will need to assemble, if not start preliminary talks with some key partners with complementary skills. If you are the child care expert, you may need someone with sales skills or business management experience, or visa versa. If you do start to talk to potential partners at this point, you can benefit from their experience and ideas as you move forward with other planning steps, although you may have little idea of the terms of a partnership agreement until you think further about the numbers related to this opportunity.


Incorporating the company is a legal process of registering with the federal, state, and local governments which allows you to begin protecting yourself through the limited liability offered by an LLC, S-Corp, or C-Corp structure. It is not overly expensive, and if you are more or less certain that you will launch in some form, you might as well take this step now.


Creating the business plan, whether you use a business plan consultant, or do the grunt work yourself, is a prerequisite in most cases before moving further. You simply won't be able to assemble the needed capital for the considerable expenses of launching a child care center without a business plan, unless you have significant cash savings already. And even if you plan to use the savings of yourself and your partners, credit cards, and personal or home equity loans to fund the launch, your operational success is much more assured if you can clearly document your plan. The writing process is a process of discovery where you will learn how much you don't know or have thought through only superficially.


Finally, you must put together this needed funding to build out your center, buy equipment and supplies, pay for marketing, purchase licenses and insurance, and see the company through until revenues are greater than the bills. For this type of business, looking to local angel investors and lenders, such as banks, may be the best route to take. You may find it best to fund your launch with a combination of debt and equity.

The first step to starting a child care business is to develop your child care business plan. Growthink provides products and services to help you develop a professional business plan and turn your dream into reality.

Finish Your Plan Today With Our Quick & Easy Template!

If you want to create your own business plan quickly and easily, we now offer a business plan template that allows you to develop a professional business plan in hours or days, not weeks or months.

Visit this link to learn more:

OR, We Can Develop Your Plan For You

Our professional business plan consultants can create your entire business plan for you. We will make sure your business plan is sound and ready for investors so you can continue to focus on running your business. Over the past decade, we have created business plans for hundreds of child care businesses.

To speak with a Growthink business plan consultant, call 800-506-5728 or complete the form below.


Growthink helped birth my company. They got to know both me and my vision. They helped ‘smack me upside the head’ to help make sure I was realistic, about meeting expectations. As a result, they helped craft, draft and construct the right written presentation. As a result, I got my funding.

Jeffrey Ullman
Founder & CEO
Great Expectations

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