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Starting A Daycare (Page 1)
June, 2013
There's a definite need for day care centers as more and more mothers of preschool
age children are forced to find jobs outside the home. This is due in part to the
current economy, and unfortunately, to the high divorce rate, which means mothers who
might ordinarily stay at home and care for their own children must seek income to help
make ends meet.
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Many experts expect the demand to increase through the turn of the century, and
the popularity of this type of business to continue growing from there. They base their
forecasts on the fact that more and more young parents have happy memories of the
time they spent in day care centers, and the learning experiences they enjoyed. And
again, there is the continuing need or desire of young mothers to work outside the home. |
Profitable day care centers are much more than glorified baby-sitting services.
Social researchers have found that the most important years in a child's development are
those from one to six. Thus, the exposure to the world in which he lives, the in struction
he receives, and the habits he forms during those years, definitely affect his ability to
learn and properly ad just as he progresses on through his years of formal education.
For mothers of today - usually better educated than their mothers - are more
aware of these factors and wanting the best for their children, are demanding the
structured pre-school education and learning stimulation offered by modern day care
centers. This is an honest desire of the mothers of pre-school age children - even those
who aren't forced to work outside the home.
Another thing in your favor: Even though there seems to be a trend for many
large companies to finance and operate day care centers for their employees in or close
by their factories or office buildings, studies show that most working parents prefer to
leave their children closer to home than where they work. Thus, privately operated day
care centers in residential neighborhood areas should not be worried too much about
competition from the few company operated day care centers.
The first step toward start-up of a profitable day care center is to understand what
makes them profitable.
There are a lot of day care centers operating with full enrollments of 35 to 65
children, but just barely breaking even. This is generally the result of regulations
imposed by the state government, causing exorbitant overhead costs of operation.
Basically, you'll need facilities to handle 150 to 200 children in order to realize annual
profits in the "before taxes" bracket of $100,000.
Check with your state and local government regulatory agencies. Many states
require day care centers to provide a minimum area per child, both inside and outside the
building, plus at least one hot meal per day. A licensed teacher for every 15 to 20
children, and even a licensed nurse on the premises may be required. Be sure to know the regulations in your area, and then design your business plan to meet these regulations.
Starting A Daycare Page 2 >>
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