Daycare Business Plan [Template + Example in 2024]

Updated: February 22nd, 2024

Daycare Business Plan [Template + Example in 2024]

Whether planning to start a Daycare business or already running one, you need to create a business plan. A Daycare business plan is essential, especially if you need funding or business partners to fuel your business. After all, starting and running a daycare business requires a lot of resources. With a business plan, you'll have a credible image that can help you attract partners and secure funds.

For this reason, creating a solid business plan is equivalent to having a good start. With such a plan, you can set a goal, know how to start, and learn what measures to take care of your business. Creating a business plan with all the sections and terms seems daunting. However, with our template and example, you'll find it an easy feat to accomplish.

In this article, you'll see an overview of all the essential components a good Daycare business plan should have. With it, you can see examples we made to give you a better idea. After reading, you'll know what to write and can create your business plan to help you start, run, and maintain your Daycare business.

Without further ado, let's get into it!

How to Write a Daycare Business Plan?

Every Daycare business plan must have the following sections:

  1. Executive Summary
  2. Business Overview
  3. Products and Services
  4. Market Analysis
  5. Marketing Strategy
  6. Financial Planning
  7. Operations Plan
  8. Management Team

Now, let's discuss each section in detail together with examples.

1. Executive Summary

Whenever you make a business plan, everything starts with an Executive Summary. It's a section of the plan that explains broad information about what products or services your business provides.

As such, a good Executive Summary should include the problem you must solve and how your business plans to solve such.

Since it's the summary of your business plan, it's best to write last when the remaining sections are written and settled.


The childcare sector is increasingly needed as more and more families now rely on two incomes. In addition, the growing demand for safe, educational environments indicates that more kids need them.

Children's House Daycare will thrive if it provides a safe and secure environment and careful individual attention for the children in its care. Our goal is to make the experience for kids safe, informative, and enjoyable while also assisting parents in feeling good about how their children are being cared for.

In the 10-mile radius around Northport, Children's House Daycare provides the most needed childcare services. The school accepts both full-time and part-time students.

2. Business Overview

The Business Overview is part of your business plan that gives general knowledge about your business.

As such, it should include essential information like your business' structure, mission, values, and others.

In a Business Overview, you must demonstrate your competitive edge to attract business investors, funding, and grants.

Simply put, it answers how your business will stand out against competitors and why it will be better.


Initially, this company will be owned solely by the founders, who possess a basic proprietorship.

As a company grows, the owner may decide that it's best to re-register as a corporation or a limited liability company, depending on the interests of the new company and which one would serve them better.

3. Products and Services

From the name itself, your business plan's Products and Services section shows the products and services you offer. A Products and Services Section will be good if it offers detailed information about what the business offers.

As such, you must explain in detail how you will manufacture, sell, or deliver your product. It will also show how you will execute services to your clients.

For this reason, you'll have to assess how well your product is positioned in the market, how much it costs, and who your suppliers are.


Long Island, New York, has one of the most competitive childcare markets in the country. In total, more than 300 facilities are unique to the city. The majority of facilities can be divided into two categories.

Corporate franchise centers often manage the larger franchise centers. Both regional and national facilities can be found here.

According to current data, the top four childcare centers in the United States control 28% of the market.

Also, a wide range of colleges and universities operate on a smaller scale, owned locally. Most locally owned institutions can accommodate 30 kids, but larger ones can hold up to 150.

4. Market Analysis

Market Analysis is another essential component in a business plan. Here, you will explain how your marketing system will be executed for your business. You can use this section to lay out your competitors, target market, and the marketing process you'll execute.

For this reason, this section should contain the following information:

  • Competitive Analysis: To show business who will be your competitors
  • Customer Analysis: To show the target audience you want to reach
  • Industry Analysis: To show the current status of the industry you're reaching


Over 300 childcare facilities are located in the neighborhood. In terms of market share, KinderCare holds the majority of the market.

Because of their positive reputations in the consumer sector, these larger chains can compete well. In addition, parents usually prefer Children's House Daycare because it has a lower employee-to-child ratio.

The business also maintains childcare rates between five and ten percent lower than the norm for major commercial chains.

Within a 10-mile radius of Northport, Children's House Daycare provides childcare services for needy families. We accept children on a flexible basis, either full-time or part-time.

In the childcare industry, the facility's efforts to obtain the necessary licenses and certifications provide it with a competitive edge. Before a person is hired for a job, they are subjected to a thorough pre-hire background check.

5. Marketing Strategy

The marketing strategy is the section that will inform the readers how you will market your products or services to your customers. You can use this to show your strategy for gaining and attracting customers. This section aims to provide you with information about how you can reach your target market, what motivates them, and how you can make them want to buy your products.


Customer service benchmarking will be the key differentiator. The entire organization will be infused with a customer-centric attitude. Children's House Childcare will invest additional funds to attract and train the most qualified employees.

Staff members are the ones who interact with children and parents. In this case, they have the most excellent chance of becoming devoted clients and enthusiastic advocates for the facility.

The social media campaign will be conducted on LinkedIn and Facebook. In response to public inquiries about child care, professionals will respond. By doing so, we demonstrate to the public that we are competent. In addition, we will allow customers to leave reviews and communicate with us.

6. Financial Planning

The Financial Planning section of a business plan is another necessary component that you should include. This part shows your business goals and the process of how you'll achieve such.

For this reason, you should include every possible expense you will have along with the financial goals within a stated timeline.

Ultimately, this section shows how you would handle your finances to ensure growth and avoid problems.


It is common for children to come from households where both parents work or are required to work. Therefore, as parents attempt to contact him, the children need a safe, educational environment to flourish and develop friendships.

Parents must have a place where they can leave their children in an emergency that prevents them from being with them.

Our neighborhood values the "village mentality." They appreciate the fact that we have the resources and subject matter experts to address their questions. However, since we expect people to seek our advice if they require it, we will not make a special effort to provide it.

The amount we intend to invest in the launch of our business is $40,000. In addition, we expect each owner to contribute $20,000 toward our startup costs.

7. Operations Plan

The Operations Plan is the section of a business plan outlining the entire operations of your business. As such, it should include the steps that your entire staff will follow to ensure you reach your goals and maximize the efforts you make for your business. One of the pieces of information you'll need to put here is the list of daily, weekly, and monthly responsibilities each department employee has.


Children's House Daycare is expected to gain enormous financial benefits from the quality care provided to children.

Although Children's House Daycare will charge less, it will become profitable within the first year due to positive word-of-mouth marketing. In the first 16 months, the business expects to double its client base every six months.

There will be an initial footprint of 1,400 square feet building. A complete wall will surround the yard to prevent anyone from entering or wandering away from it.

This daycare is in a quiet, residential neighborhood in Northport, Long Island, NY. The yard will have a sandbox and safe, enjoyable toys.

8. Management Team

Finally, your business plan should include a section dedicated to your Management Team. In this part, you'll summarize your entire staff and any future staff you plan to employ.

Since workers are one of the crucial parts of a business, you need to ensure that anyone who reads your plan will have an overview of who works for the business and how they can contribute to the company's growth.

It's best to showcase their talents, skills, and experience to give credibility to your company and team.

Another piece of information you need to show is how you will allot the responsibilities and tasks to ensure everyone is geared towards success and give each one room for growth while keeping a steady development for the business.


A team of seasoned leaders in the childcare sector, Ericca Allen and Natasha Martin, will oversee Children's House Daycare.

The Baby Warehouse has provided Ericca with seven years of experience in sales, marketing, and management. As a result, the company's annual revenue increased from $89,000 to nearly $4.3 million during Ericca's employment.

The partner of Ericca, Natasha Freelander, holds a degree in finance and administration. Before joining Children's House Daycare, Natasha worked for The Kiddie Vault, one of the country's largest childcare providers.

During Natasha's tenure as Chief Financial Officer at The Kiddie Vault, she increased operational profits by 13%, which is unusual for an organization in this field.

Daycare Business Plan PDF

Do you want to download a Daycare business plan example in PDF?

Here is the download link.

Let us know if you have any questions!

Daycare Business Plan FAQs

Below are some of the frequently asked questions you may have about Daycare Business Plans:

What Is a Daycare Business Plan?

A Daycare business plan is dedicated to showcasing the entire structure, function, goals, and any information related to a particular Daycare business company.

Since business plans vary depending on the type of business, a Daycare business plan is designed to present the business's problems, solutions, and functions.

These plans can help you attract investors, secure funding, collaborate with other businesses, and provide detailed information about your company.

This business plan outlines the company's operations and structure, as you can see. The report also details the operation's finances, marketing, and management.

Businesses need to consider a wide range of factors before launching, including the cost of operations, market research, mission statements, and succession plans. Sound business plans state these things clearly.

Why Is a Daycare Business Plan Important?

Having a business plan is imperative when starting a daycare business. This document outlines the company's goals and structure in the form of a business plan. In addition, once you have a basic outline for your project, you can adjust it as necessary.

A Daycare business plan would be helpful if you hire and train staff, seek investors, or adjust your pricing strategy. Consequently, you should create one even if you have yet to launch your business.

Is Owning a Daycare Profitable?

Daycare businesses thrive because there's always a need for such types of services. For this reason, if you're planning to own a Daycare business, you're venturing into a business with a vast potential for growth and success.

Of course, being profitable requires excellent planning, execution, and maintenance. For this reason, you'll need a good business plan to make sure you're on your way to success.

With the business plan template we have, you can make your own that suits your Daycare business. You'll surely enjoy a profitable Daycare business as long as you create an excellent plan and execute the process.


A Daycare business plan is a must-have for everyone planning to start such a business. With such a plan, you can identify your strength, see your competitors, evaluate your target audience, attract potential customers, and have a goal that you can follow to achieve success. Furthermore, a solid business plan can help you secure grants or investors if you need funding.

Using this template, you can create a Daycare Business Plan that contains all the necessary information and elements. You can then develop your business plan using the examples we gave you.

meet the author
Pat Walls

I'm Pat Walls and I created Starter Story - a website dedicated to helping people start businesses. We interview entrepreneurs from around the world about how they started and grew their businesses.