Starting any business is always a challenge, but opening a childcare business comes with extra responsibility. You must ensure the safety and well-being of the children under your care, you have to be willing to commit yourself and invest a lot of your time. Yes, you’ll also have fun, but there’s much to do before the children arrive.
- Market study. Before opening a daycare, you have to be sure that there are families who need your services. Some market research will help you understand the desires of your potential customers so you can offer services that suit them.
- Location. Deciding where to set up is a matter of financial resources and environment. Can you afford to rent a space outside the home? Is your neighbourhood quiet and safe? Is there a park nearby, or some other outdoor play area? Are there parking spaces available for parents?
- Business structure. Do you want to open a home daycare or a commercial establishment? Should you incorporate or register as a small enterprise? Have you thought of a name and a logo?
- Business plan. Drawing up a business plan will help you establish your mission and goals for your daycare. It will help you decide how to invest in equipment and calculate its depreciation. You’ll also have to determine the number of children you want to welcome, the number of staff you may need, and the salary you will pay yourself and any employees.
- License and regulations. You’ll have to learn about the permits you may need — such as building and business permits — as well as the procedures and standards for opening a regulated or unregulated daycare.
- Taxes. Depending on your location, structure and services, you may be required to pay taxes at the provincial, federal or municipal levels.
- Funding. Find out about government grants that you might be eligible for. If you open a home childcare business, it will cost less than if you open a commercial daycare. A home daycare also allows you to deduct certain expenses from your personal income tax.
- Material. You’ll need to buy nap mats, children’s furniture, storage units, indoor and outdoor games, toys and unbreakable dishes. All your equipment must help create a safe and supportive environment for child development.
- Insurance. You must have fire and theft insurance for your daycare. It may be wise to choose an insurer that specializes in the daycare field.
- Advertising. You can use the Web, brochures, bulletin-board posters, business cards and classified ads to get the word out that you’re ready to open a childcare business. Word of mouth is often the most effective advertising when it comes to daycare.
Be sure to surround yourself with good, trustworthy people: skilled employees, lawyer, insurance broker, accountant, and your banking adviser. And above all, never forget that your main goal is to provide top quality care for all your little ones.
