Business Idea

Start A Daycare

About

Starting a daycare requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell daycare, or selling daycare online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$390M
starting costs
$17.2K
gross margin
80%
time to build
2 months

About

Starting a daycare requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell daycare, or selling daycare online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$390M
starting costs
$17.2K

 

gross margin
80%
time to build
2 months

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $2,150
Business Formation Fees $600 $3,200
Equipment & Supply Expenses $25 $500
Retail Business Expenses $0 $7,200
Inventory Expenses $300 $5,000
Vehicle Expenses $0 $10,000
Training & Education Expenses $0 $1,000
Other Expenses $0 $2,300
Advertising & Marketing Costs $0 $1,200
Software Expenses $0 $200
Website Costs $17 $275

Successful Businesses

Business URL Rank
Bright Horizons brighthorizons.com #63,616
KinderCare kindercare.com #88,051
The Salvation Army International salvationarmy.org #108,755
Dogtopia dogtopia.com #133,154
You have been blocked winnie.com #167,352
The Leader in Early Education and Care primroseschools.com #253,844
The Goddard School goddardschool.com #268,266
Child Care Centers childcarecenter.us #280,298
Daycare.com daycare.com #448,054
unknown lapetite.com #464,351
Kids 'R' Kids kidsrkids.com #560,995

Pros & Cons

Pros Description
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Little startup costs required The cost to start a daycare costs significantly less money than most businesses, ranging anywhere from 967 to 33,525.
Rewarding work Starting a daycare can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
No overhead costs To get your daycare started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your daycare are typically around 80%, which is considerably high and allows you to grow your business and manage costs easily.
Cons Description
Crowded Space Competition is high when it comes to your daycare, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Work can be inconsistent As a daycare, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.
Isolation Often times, as a daycare, you typically work alone and do not have much face-to-face interaction with other team members.
No safety net Typically, as a daycare, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
You may need to charge sales tax If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out [this article](https://www.thebalancesmb.com/do-i-need-to-collect-sales-taxes-in-my-state-398913)