child care center
Starting your own daycare center can be both exciting and daunting. Many of those who choose to pursue this step in their career do so out of passion for helping children develop and reach their full potential.
While passion and child care experience are musts when opening a daycare, it cannot be overlooked that child care and daycare centers need a solid business plan. Therefore, the opening of your daycare center must be approached with a careful strategy in place to ensure success in the early make or break years. This combination of a clear mission and a carefully constructed business plan will greatly increase the success of your child care business.
At Procare, we want to encourage and enable child care professionals with all of the tools they need to enrich the lives of their students. That is why we have created this outline of important business needs to consider when starting a daycare center. The following information will provide aspiring daycare owners with direction throughout this challenging process.
The “Why” Behind Opening Your Daycare Center
Starting a business, especially one as demanding as child care, is a huge time and financial commitment. It’s a good idea to examine the reasons driving your decision to open a daycare center, or “your big why.” Make sure you have a clear understanding of the time you will be required to devote before and after opening.
You should also consider your previous child care experience. If you have been in this field for years and know it is what you want, then you can move on to the business planning stage. However, if you have relatively little experience in the field, it might be prudent to gain more experience at an independently owned center or even franchise. Think about why you want to open a daycare and the specific attributes that make you uniquely qualified for this filed.
Assessing Your Market
Once you are committed to opening your own daycare center, you will have to do research to determine how competitive a marketplace your community currently is, and how sustainable an environment it will be for your business in the future.
First, are there already daycare centers open in your community? If so, you will want to look at things like:
- What kind of center are they?
- What age groups do they accept?
- Where are they located?
Another good indicator of the need in your community is whether these child care centers have waiting lists. This information can help you determine if there is enough demand in your community to open you center there.
Another research strategy is to look at the current demographics in your neighborhood. If there are a lot of young families or newlyweds, this indicates that there will continue to be a need for your services in the future.
Differentiating Your Daycare Center
Once you are familiar with the current child care landscape in your community, you have to think about how you will differentiate your program to fill a need not currently being addressed.
Look at the hours of operations for the other centers in your community. Perhaps there is a timeframe early in the morning or late in the evening during which these centers are not open. Filling this need could make your center a valuable resource for parents.
Additionally, if there is an age group that is not being served, such as daycare for infants (newborns to a year) or after school programs, your center could establish a foothold by filling these needs.
Bonus Tip: Talk to parents in your community to find out what they need most from a daycare, and aim to address these needs at your center.
Once you have done this initial research into whether your daycare business will be viable in your community, you have to begin compiling a comprehensive business plan that maps out your objectives and the strategies by which you will bring them about.
Child Care Center Business Plan Checklist
Here’s a checklist recapping some essential steps of putting together your child care business plan:
- Competitor matrix
- Financial Planning: Funding and budgeting
- Location of your business
- Staffing needs
- Licensing requirements
- Materials, equipment, and program agenda
Bonus Tip: As you go through creating your business plan, it is a good idea to mark down important deadlines and milestones on a calendar. This will ensure you have an accurate timeline for how long planning and preparations will take, and a strong estimate for when your business will be able to open.
There are many legal regulations to consider when opening your center. License requirements are typically determined by states, and therefore will vary based upon where you live. You will have to make sure your business is in compliance with these regulations by acquiring the proper licenses. Child Care Aware offers a licensing resource that directs you to the proper licensing authorities by state.
It is important to note that child care licenses and business licenses are not the same. You will likely have to acquire separate business licenses and child care licenses to legally operate your business.
Starting a business is financially demanding. For your endeavor to be successful, it is essential that you accurately assess how much it will cost for you to open the center, determine where that money will come from, and then budget and plan to ensure your financial structure will sustain your business as it gets off the ground.
During this process, you should consider initial expenses, and how much it will cost to run your business on an annual and monthly basis. Consider how much you will pay your daycare staff, what your tuition structure will be for parents, how late fees will factor in, and how much property rent / cost is in your community.
Potential Costs of Opening a Daycare Center
A few examples of the costs associated with opening a daycare center are:
- Property renovations
It is important that you don’t begin the business process until you know how it will be paid for. This is money can be accrued from a variety of sources including your personal savings, loans from friends, loans from the bank, government programs, or grants.
It is important that you keep track of your expenses and cash flow for multiple reasons. First, it will help you to track and pay back any loans in accordance with the agreement you made with the lending party.
Second, tracking cash flow ensures that you don’t overspend, or create a payment structure that will jeopardize the financial stability of your business on a month-to-month basis.
To be aware of when money comes into and leaves your center monthly, you should be tracking: the number of tuition payments you get per month, how many times a month your center pays employees, how many enrolled children you are permitted to have, and how many of those slots will be filled.
Bonus Tip: Doing these calculations by hand leaves room for error, so we recommend a child care accounting solution that will track financial information for the center and the families you serve, as well as tracking bookkeeping, tuition payments, and cash flow.
Choosing a Location
The first thing to determine when choosing a location for your daycare center is if you want to run the center from your own home, or in a commercial space. This will affect your expenses and licensing requirements.
The location of your daycare center will be subject to many licensing regulations, including building safety, zoning, physical space requirements, emergency preparedness, and more. Many of these are to ensure that the environment in which you run you center is healthy and secure. This includes things like proper waste removal and having fire alarms.
Two important location licensing requirements to keep in mind are zoning and physical space requirements. Zoning refers to a permit from the proper authority that allows you to run a business, or be zoned for business. The physical space regulation refers to the requirement that child care centers must have 25 square feet available per student. Therefore, you have to keep in mind that the size of your space will determine how many students are allowed to enroll.
For parents to feel comfortable leaving their children at your center and confident that they will get the developmental stimulation they need, you staff has to be well trained and experienced. Additionally, you must have enough instructors to provide quality group and individual care, as well as meet ratio requirements.
When hiring staff for your center there are three key features to keep in mind:
- The student-to-teacher ratio
- Licensing requirements
The student-to-teacher ratio refers to the number of instructors that must be present based on the number of and age of the students. The National Association for the Education of Young Children provides recommended ratios based on age and group sizes.
Staff Licensing Requirements
Professional certification requirements and licenses vary by state; however, child care providers are often expected to have a high school degree or secondary degree. Common certification requirements are the Child Care Professional certification and the Child Development Associate certification. These require a certain number of hours of experience in different child care fields.
You should also make sure that your staff has training in safety courses such as CPR and first aid, as well as how to asses and document child development to report to parents. Child care instructors can provide important information to parents about where their children are developmentally, and where they may need individualized attention. That is why it is important to have reporting and parent engagement processes defined at your center, to simplify communication between caretakers and parents.
Bonus Tip: The interview and review process to find the perfect candidates for your center can be time consuming, so you will want to start the hiring process at least two months prior to the opening of your center.
With financing, licensing, location, and staffing researched and prepared, you are almost ready to open your child care center. Final steps will be getting the necessary equipment and supplies, and setting an agenda for your daycare programs. You will need kid sized tables, furniture, and cots, as well as toys, crafts, and games. You will also need cleaning and administrative supplies.
When setting the agenda for your program you will want to establish routine daycare schedules for each age group. These schedules should incorporate activities that promote early child care development in major areas such as cognitive, emotional, and physical development.
As you get to know your students better, you will be able to cater the activities and learning programs to their specific interests.
The processes and planning that go into starting a daycare center can be overwhelming. However, with a defined mission and strategic business plan in place, it can be a successful and worthwhile endeavor. Following the guidelines above will give you the structure you need to build a thriving daycare center with an environment that fosters healthy, happy kids.
Looking for ways to automate and organize administrative and business functions at your daycare center? Learn how Procare can help!
Want more tips and resources to help start your daycare center? Check out these related articles:
Hugging a teddy bear can help kids feel braver when it comes to getting a shot. And while they may have to endure a brief moment of pain in the name of good health, at least they don’t have to deal with the hassle of keeping track of immunization records and paperwork. Truth be told, neither should you.
As a child care professional, chances are you’re familiar with the recommended immunizations for young children and you’re careful to make sure every family brings in the child care immunization records for their children before they can attend. Next on your list is the question of how to efficiently keep track of all the immunization requirements, due dates and child history.
How to Track Child Care Immunizations
To help you simplify the paperwork, here are some essential features to look for in immunization tracking software to keep your immunization records up-to-date.
Flexible Immunization Schedule
In order to track when the next immunization is due, you’ll need a way to define the schedule of required vaccinations. Since each shot requires a different schedule, you’ll want the child care database you choose to be flexible. For example, one immunization may have multiple doses due at specific ages, another may be due every 12 months, and a third may be due so many months after the last one, rather than at a specific age—such as when children are on a make-up schedule.
Allow for Exemptions
Children may be exempt from certain vaccinations for a variety of reasons.
- If they’ve already had an illness, like chickenpox, the immunization (such as varicella) may no longer be necessary.
- A child might have an exemption due to family philosophical or religious reasons.
- Combo-vaccinations are another reason for exemptions. Families might choose (or their pediatrician might recommend) individual shots or a vaccine that combines multiple immunizations into one. Therefore, you’d need a way to exempt children from the “individual” shots or vice-versa.
- An age exemption is another possibility. For school-age children you may not be required to track immunizations that apply to younger children.
One final thought on exemptions: you’ll also want a way to indicate the reason why a child is exempt.
Alerts When Immunizations are Due
It’s good to know when an immunization or other requirement (physical, etc.) is due, but it’s even better to get advanced notice of when it’s coming due. In other words, you’d like the parents to know ahead of time, so they’re able to make sure they have the necessary doctor’s appointments arranged.
You may also want a way to:
- Easily see on your director’s screen when immunizations are due or coming due.
- Let parents see immunizations that will be needed soon, at the time they check their children in.
- Generate reports and lists showing immunization information.
Beyond knowing what’s coming due, you’ll also want an efficient way to track the history for each child. In other words, what dates did a child receive each vaccination in the sequence? Typically, this information should be available on an immunization history report.
Making sure the kids attending your child care center are up to date with their immunizations is necessary to ensure the health of every child in your care. However, when the year gets underway and your schedule fills up, it can be easy to lose track of the multitudes of paperwork that go along with immunizations records. To mitigate these challenges and manage health records, child care centers should employ immunization tracking software with a degree of flexibility and customization that allows them to account for each child’s needs.
Learn how Procare can help you better keep track of family health information at your child care center.
Interested in learning more about managing health information at your child care center? Check out these related articles.
- Immunization Tracking – Looking Forward
- Tracking Child Allergies – Part One
- Move Daycare Records to Your Smartphone, iPad, etc.
Pretty soon the school buses will be rolling again. Perhaps they already are in your area. That likely means your childcare business will be busy with school-age children in a variety of before and after school programs.
The thing is, when a large group of children arrive or depart at once, how do you efficiently track their time and attendance? The bus arrives, the children hop off and you need to get the entire bus load checked in, pronto! This can be especially challenging as kids have varied schedules, some arriving earlier and leaving later. Have no fear, Procare is here with a number of easy-to-use child attendance tracking options.
Child Attendance Tracking Basics
The most basic way to record child arrival and departure times is with a simple bus run sheet. You can print them out and have the bus driver or other staff person mark who is being picked up or dropped off.
If you’re already using Procare Software, bus rosters are built right in. You’ll find them under the “Tracking” section in the Family Data module. This makes it easy to automatically print the names of the children assigned to each bus.
If you’re not yet using Procare, print some of our free bus run sheets that come blank, and you can fill in the names yourself.
Childcare Time Cards
Another option is to check children in so hours are automatically recorded on each child’s time card. With time and attendance tracking software there are several options.
- A staff person (teacher or bus driver, etc.) can quickly check all children in or out at once. This can be done at a regular computer or through a check-in screen. See: Let Teachers Check Children In
- If you schedule children in advance, you can use the batch post time card tool to check kids in and out based on their scheduled times for the day. You can even schedule them for both before and after- school time slots.
- You can assign the teacher or bus driver as a pickup person for each child and use the Receptionist Check-In feature to look up the pickup person and quickly check in the appropriate children. See: 3 Time & Attendance Methods for Your Daycare.
Mobile Child Check-In App
Childcare providers who subscribe to the Procare Cloud have access to a host of Procare mobile web applications, allowing them to access child attendance tracking features from any device and location with an internet connection. This simplifies attendance tracking, allowing staff to check students in as they get on or off their assigned bus using a tablet. See: Mobile Apps for Childcare Management
Attendance tracking is necessary at any childcare center. It ensures that every child gets to and from the center or after school program safely. It also helps childcare staff to calculate accurate hourly billing rates, based on when each child arrived and departed. With Procare, there are several simple options to track child attendance, allowing staff to choose the option that best fits in with established processes.
Learn how Procare can help streamline child attendance tracking and other childcare tasks.
Want to learn more about keeping track of child and family data at your center? Check out these related articles.
Are your employees current on their CPR class? How many CE (Continuing Ed) hours does your staff have so far this year? Child care centers must know that employees are keeping up with periodic continuing education hours and health-and-safety certifications to provide high quality care for children.
It can be difficult to stay up to date on the child care certification and training requirements for each member of your staff, as well as how frequently they must be renewed. This is one area where child care management software can be valuable for your daycare center, after school program or preschool.
Tracking Child Care Certifications and Training
Employee Data Software from Procare lets you track those types of requirements and training hours. To track employee certifications and continuing education hours, you can use either the Employee Requirements or Benefit Hours features, or both, depending on your situation.
Tracking Certifications with Requirements or Benefit Hours
Requirements are recorded much like immunization tracking. They may be a one-time or recurring event, such as a CPR certification. Benefit Hours, on the other hand, are entered on the Employee Time Card. They may be totaled based on the Benefit Code you assign, like “Training”. Using benefit hours is appropriate if you need to know the number of training hours (during specific dates) for each employee.
Using a Requirement
An example of a requirement might be a CPR certification renewal that occurs every 3 years. You would simply record the date the requirement was met. The Requirements Due report will include only staff who are near or past the required expiration date.
Using Benefit Hours
Recording training hours in the Employee Time Card lets you report specific hours for a certain date range. A quick way to post training hours is to enter them through the Batch Post Time Card feature. Once recorded, you can run benefit code reports grouped and totaled by the code (or the employee) for the period selected.
Bonus Tip: To track hours based on the employee’s hire date, create Employee Tracking items to match each hire month. When you run reports, you can filter them by selecting only the hire month you’re interested in viewing.
Keep in mind that you can use both of these methods together to give you the most flexibility in tracking your employee training and certification requirements!
To run a successful child care center, you need a staff that meets the training and education requirements of your center, as well as the various regulations required by the state. It’s easy to get caught up in the day-to-day tasks of caring for children and forget when there is a training deadline coming up.
In order to complete child care certifications on time, child care centers need a consolidated view of each employee’s training status. The Employee Data module from Procare allows daycare centers, preschools, and after school programs to monitor these requirements seamlessly, ensuring the best child care experience.
Learn more about managing employee information and certifications with child care management software.
Interested in learning more about employee data management? Check out these related articles.
- Employee Reimbursements Made Easy
- Efficient Staff Scheduling for Daycare
- Schedule Vacation for Your Daycare Staff
ProCare Software would like to welcome in the new year with one of our most popular blog features – our Child Care Center of the Month. Each month we select a daycare, preschool, child care center or similar place of early learning as our Center of the Month. Centers are selected based on information provided for their Free MyStory Web Page.
For January, ProCare is pleased to announce Kiddie Care Learning Center of Dothan, AL as our award winner! Continue reading