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February 28, 2022

What Every Childcare Business Owner Should Know

With the growing demand for child care, starting your own child care business can be an excellent idea.

Opening a daycare or child care center is a great way to make a living and find professional satisfaction.

Moreover, by starting a childcare business, you can help many families in your community who need childcare support, making a difference in their kids’ development and learning.

However, opening a child care center can be challenging. To run a successful childcare business, you need:

  • the right information
  • clear goals and a solid plan to meet them
  • child care software to help you start your business, manage day-to-day operations, and grow your childcare business

The first step toward a successful childcare business is getting informed. So, here is what every childcare business owner should know and what to expect when starting own business.

Get Informed about Licensing and Regulations

Child care businesses in the US and Canada are regulated by the state, province, or territory. Therefore, the first thing to do when starting your child care business is learning about your state (USA), province, or territory (Canada) regulations and license for child care services.

Consider the Child Care Options

Before starting your child care business, decide which type of child care services you will focus on. There are various types of child care programs, such as:

  • Unlicensed home-based child care services: typically involve caring for a maximum of 2 to 3 children
  • Regulated home child care programs: caring for more than 2 or 3 children up to 13 years of age
  • Licensed child care centers: full-day centers, part-time programs, school-age programs
  • Kindergarten programs

Learn about Training and Education Required

Most states require daycare owners and operators to hold specific qualifications regarding special education or training needed to start a child care business. Depending on where you live, your local licensing regulations may require you to have some of the following qualifications and licenses:

  • A diploma or degree in Early Childhood Education (ECE)
  • Required approvals (following local rules and regulations)
  • Experience working in an early child care setting
  • Completion of First Aid and CPR training

You will need to contact your local child care licensing authority to learn more about specific requirements for opening a child care business in your state/province/territory.

Set Up Clear Policies and Follow Them

Operating a successful daycare business begins with implementing clear and consistent policies and procedures for all staff, parents, and children involved.
Creating a staff handbook that will help your employees reference standard procedures can help handle complicated situations more efficiently and strengthen your business.

Invest in Child Care Software

Take advantage of technology to kick off your business. Child care software can be an excellent way to save time on administrative tasks, automate your billing process, and manage day-to-day events and activities more efficiently.

Furthermore, user-friendly child care software can help you maintain transparency, stay in touch with families, and keep them in the loop on everything that is going on at your daycare on a daily level.
Use a daycare app to record and track daily activities and events in your daycare groups, send updates for parents throughout the day, and help your teachers track kids’ attendance, naps, meals, developmental milestones, and more.

Hire Qualified and Properly Trained Staff

Ensure that your team of early childhood educators and assistants has needed knowledge and training because experience can be essential when working with young children.

Be Present on Social Media

In today’s world, social media platforms are the first place where most people look up local businesses. So, use various social media platforms to extend your virtual presence and reach out to more potential clients.

Understand the Importance of Parental Feedback

Satisfied families can ensure the long-term success of your daycare business because word-of-mouth advertising has always been a powerful marketing tool.
Ask your clients to leave public reviews on community information systems, which can boost your exposure to potential clients and get your business going.


Running a successful daycare business means providing a high level of child care, creating jobs, and making an impact on your community by growing your enrollment each year.
However, before starting your daycare business, there are some things to consider, such as licensing regulations in your state, province, or territory, types of child care you can offer, the staff you should hire, marketing strategy, and more.
Getting informed is the first step when starting a business. Understanding your options, legislations, and available tech tools can alleviate startup stress and help you get a successful business going.

Budget Planner Template

Christina Vaan

Christina is a blog writer and early childhood education content specialist at Kindertales.

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