Daycare Business Plan Template

how to start a day care business plan template

Are you interested in starting your own daycare Business?

If you're reading this, you're probably considering starting a daycare business. Congratulations! This is a great decision. A daycare can be a very rewarding and profitable business, but it's important to understand what you're getting into before taking the plunge. In this article, we'll cover the basics of starting a daycare business. We'll talk about the important things to consider before starting, the steps you'll need to take to get your business up and running, and some tips for making your daycare successful. So let's get started!
Global Market Size
The global market for daycare services is estimated to be worth $US153.8 billion in 2017. This market is expected to grow at a compound annual growth rate (CAGR) of 6.2% from 2018 to 2025, reaching $US222.8 billion by 2025. The Asia-Pacific region is the largest market for daycare services, accounting for 38.1% of the global market in 2017. This region is also expected to be the fastest-growing market, with a CAGR of 7.4% from 2018 to 2025. The North American region is the second-largest market for daycare services, accounting for 27.4% of the global market in 2017. This region is expected to grow at a CAGR of 5.2% from 2018 to 2025. The European region is the third-largest market for daycare services, accounting for 20.5% of the global market in 2017. This region is expected to grow at a CAGR of 4.8% from 2018 to 2025.
Target Market
When you’re starting a daycare business, it’s important to think about your target market. Who are you going to be catering to? What ages will your daycare cater to? Will you have a specialty, like providing care for infants or children with special needs? Once you’ve decided on your target market, you can start to think about how to reach them. What marketing channels will you use to reach your target market? How can you make your daycare stand out to potential clients? answer: When you’re starting a daycare business, it’s important to think about your target market. Who are you going to be catering to? What ages will your daycare cater to? Will you have a specialty, like providing care for infants or children with special needs? Once you’ve decided on your target market, you can start to think about how to reach them. What marketing channels will you use to reach your target market? How can you make your daycare stand out to potential clients?
Business Model
There are many different ways to start a daycare business. You can start a daycare center, open a home-based daycare, or even become a franchisee. The first step is to decide which type of business model you want to follow. Are you interested in running a daycare center, or would you prefer to work from home? There are pros and cons to both options, so it’s important to weigh your options before making a decision. If you decide to open a daycare center, you’ll need to find a location, get the necessary licenses and permits, and hire staff. You’ll also need to create a curriculum and develop policies and procedures. If you opt to start a home-based daycare, you’ll need to contact your local zoning office to make sure you’re allowed to operate a business from your home. You’ll also need to get insurance and create a business plan. Whichever option you choose, there are some basic steps you’ll need to take to get your business up and running.
1. Choose your business model. Are you interested in running a daycare center or starting a home-based daycare?
2. If you want to open a daycare center, find a suitable location and get the necessary licenses and permits.
3. If you’re starting a home-based daycare, contact your local zoning office to make sure you’re allowed to operate a business from your home.
4. Get insurance for your business.
5. Create a business plan.
6. Develop policies and procedures.
7. Hire staff (if necessary).
8. Create a curriculum..
Competitive Landscape
In any business, it is important to understand the competitive landscape. This is especially true in the childcare industry where there are many different types of providers. When starting a daycare business, it is important to understand the different types of providers and how they compete with each other. The first step is to understand the different types of childcare providers. There are four main types of providers: center-based, family child care, in-home, and nanny. Each type of provider has its own strengths and weaknesses. For example, center-based providers usually have more resources and higher quality care, but they are also more expensive. Family child care providers are usually less expensive, but they may have fewer resources. In-home providers are usually the most affordable, but they may not have the same quality of care. Nannies are usually the most expensive option, but they can provide more individualized care. Once you understand the different types of providers, you need to research the competition in your area. Find out how many daycare centers there are, what type of providers are in your area, and what their prices are. You can use this information to determine what type of provider you want to be and how you can differentiate yourself from the competition. If you want to start a daycare business, you need to understand the competitive landscape. Research the different types of providers in your area and find out what their prices are. Use this information to determine what type of provider you want to be and how you can differentiate yourself from the competition.

Legal Requirements

Before starting a daycare business, it is essential to understand the legal requirements in your state or country. This may include obtaining licenses and permits, meeting safety and health regulations, and complying with zoning laws. You should consult with a lawyer to ensure that your business is legally compliant and to draft contracts and agreements for your staff and clients.

Location and Facilities

Choosing the right location and facilities is critical for the success of your daycare business. Consider factors such as accessibility, safety, and proximity to your target market. You should also ensure that your facilities are well-equipped with age-appropriate toys, furniture, and learning materials.

Staffing and Training

Hiring and training the right staff is essential for providing high-quality care to children. You should have clear job descriptions and hiring criteria, conduct background checks, and provide comprehensive training on safety, health, and child development. Investing in your staff's professional development can also help to improve the quality of care and increase staff retention.

Curriculum and Programming

Developing a curriculum and programming that meets the needs of children and parents is essential for attracting and retaining clients. You should consider factors such as age-appropriate activities, learning goals, and alignment with educational standards. You may also want to offer specialized programs such as language immersion or STEM education to differentiate your business from competitors.

Marketing and Advertising

Effective marketing and advertising can help to attract new clients to your daycare business. You should develop a marketing plan that targets your ideal customer demographic through channels such as social media, local publications, and community events. You should also focus on building your brand identity through a compelling website, logo, and messaging.

Financial Management

Managing your finances effectively is critical for the success of your daycare business. You should develop a budget, track expenses and revenue, and establish systems for invoicing and payment collection. It is also essential to plan for contingencies such as unexpected expenses or changes in demand.

Technology and Automation

Leveraging technology and automation can help to streamline operations and improve the quality of care. You may want to consider using software for tasks such as scheduling, billing, and communication with parents. You can also use technology to enhance the learning experience, such as through educational apps or online resources.

Customer Service

Providing excellent customer service is crucial for building trust and maintaining a positive reputation in the daycare industry. To ensure that parents and children are satisfied with your services, you should prioritize open communication, timely responses, and a welcoming environment. By going above and beyond to meet the needs of your clients, you can increase customer loyalty and drive referrals.

Risk Management

As a daycare provider, it's important to prioritize the safety and well-being of the children in your care. This includes having protocols in place for emergencies, conducting regular safety checks, and providing staff training on risk management. You should also have insurance coverage to protect your business in case of accidents or unforeseen events.

Growth Strategies

To grow your daycare business, you may want to consider implementing strategies such as expanding your facilities, offering new services, or partnering with other businesses. By continually improving and adapting to the needs of your clients, you can build a reputation as a top daycare provider and increase your revenue. It's also essential to focus on building a strong brand identity and leveraging positive reviews and testimonials to attract new clients.

Evaluating Performance

Regularly evaluating the performance of your daycare business can help you identify areas for improvement and make data-driven decisions. You may want to track metrics such as client satisfaction, staff retention, and revenue growth, and use this information to adjust your business strategies. By constantly striving to improve your services, you can maintain a competitive edge in the industry and achieve long-term success.

Networking and Professional Development

As a daycare provider, networking with other industry professionals and pursuing ongoing professional development can help you stay up-to-date on trends and best practices. You may want to attend industry conferences, join professional organizations, or collaborate with other businesses in your community. By expanding your knowledge and connections, you can gain new insights and opportunities for growth.

Creating a Positive Work Environment

Creating a positive work environment is crucial for attracting and retaining high-quality staff. You should prioritize open communication, fair compensation and benefits, and opportunities for professional growth. By fostering a culture of respect, collaboration, and growth, you can build a team of dedicated and motivated employees who are committed to providing excellent care to children.
Starting a daycare business can be a daunting task, but it doesn't have to be. By following the steps outlined in this guide, you can get your business up and running in no time. Just remember to do your research, create a solid business plan, and get the necessary licenses and permits. With a little hard work and dedication, you can be the proud owner of a successful daycare business.

Why write a business plan?

A business plan is a critical tool for businesses and startups for a number of reasons:
  • Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
  • Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
  • Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
  • Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
  • Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
  • Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
  • Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
  • Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
  • Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
  • Business plans allow you to position your brand by understanding your company’s role in the marketplace.
  • Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
  • Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content


Many people struggle with drafting a business plan and it is necessary to ensure all important sections are present in a business plan:
  1. Executive Summary
  2. Company Overview
  3. Industry Analysis
  4. Consumer Analysis
  5. Competitor Analysis & Advantages
  6. Marketing Strategies & Plan
  7. Plan of Action
  8. Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect daycare business plan, fill out the form below and download our daycare business plan template. The template is a word document that can be edited to include information about your daycare business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning


With the growth of your business, your initial goals and plan is bound to change. To ensure the continued growth and success of your business, it is necessary to periodically update your business plan. Your business plan will convert to a business growth plan with versions that are updated every quarter/year. Avvale Consulting recommends that you update your business plan every few months and practice this as a process. Your business is also more likely to grow if you access your performance regularly against your business plans and reassess targets for business growth plans.


Want a Bespoke Business Plan for your daycare Business?

Our Expertise


Avvale Consulting has extensive experience working with companies in many sectors including the daycare industry. You can avail a free 30-minute business consultation to ask any questions you have about starting your daycare business. We would also be happy to create a bespoke daycare business plan for your daycare business including a 5-year financial forecast to ensure the success of your daycare business and raise capital from investors to start your daycare business. This will include high-value consulting hours with our consultants and multiple value-added products such as investor lists and Angel Investor introductions.


About Us


Avvale Consulting is a leading startup business consulting firm based in London, United Kingdom. Our consultants have years of experience working with startups and have worked with over 300 startups from all around the world. Our team has thousands of business plans, pitch decks and other investment documents for startups leading to over $100 Million raised from various sources. Our business plan templates are the combination of years of startup fundraising and operational experience and can be easily completed by a business owner regardless of their business stage or expertise. So, whether you are a budding entrepreneur or a veteran businessman, download our business plan template and get started on your business growth journey today.
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Daycare Business Plan Template FAQs

What is a business plan for a/an Daycare business?

A business plan for a daycare business is a comprehensive document that outlines the goals, objectives, strategies, and financial projections for starting and operating a daycare center. It serves as a roadmap for entrepreneurs, providing a clear outline of how the business will be structured, managed, and funded. The business plan typically includes sections on market analysis, competitive analysis, marketing and sales strategies, operational plans, organizational structure, financial forecasts, and risk management strategies. It is an essential tool for attracting investors, securing loans, and guiding the successful launch and growth of a daycare business.

How to customize the business plan template for a Daycare business?

To customize the business plan template for a Daycare business, follow these steps:

1. Open the template: Download and open the daycare business plan template in a compatible software program like Microsoft Word or Google Docs.

2. Review the template: Take a thorough look at the template to understand its structure and content. Familiarize yourself with the different sections and subsections included, such as the executive summary, company description, market analysis, marketing strategy, financial projections, and more.

3. Fill in your business information: Replace the existing information in the template with the details specific to your daycare business. Update the company name, address, contact information, and any other relevant details.

4. Customize the executive summary: Tailor the executive summary section to highlight your daycare business's unique selling points, mission, and vision. Provide a brief overview of your target market, competitive advantage, and growth plans.

5. Modify the company description: Describe your daycare business in detail, including its legal structure, ownership, history, and facilities. Emphasize any unique features, certifications, or licenses that set your daycare apart from competitors.

6. Conduct market analysis: Research and analyze your target market, including the demographics and psychographics of potential customers. Adjust the market analysis section in the template to reflect your findings and explain how your daycare will meet their needs.

7. Develop a marketing strategy: Outline your marketing and promotional efforts to attract parents and guardians to your daycare. Customize the marketing strategy section to include specific

What financial information should be included in a Daycare business plan?

In a Daycare business plan, the following financial information should be included:

1. Start-up Costs: This includes the costs required to set up the daycare center such as lease or purchase of property, renovation or construction costs, licensing and permit fees, equipment and supplies, insurance, marketing expenses, and legal fees.

2. Operating Expenses: These are the ongoing costs required to run the daycare center. It includes expenses such as rent or mortgage payments, utilities, salaries and benefits for staff, insurance premiums, cleaning supplies, food and snacks for children, educational materials, transportation costs, and administrative expenses.

3. Revenue Projections: This section should outline the expected sources of revenue for the daycare center. It includes details about the number of children enrolled, the fees charged per child, the different programs or services offered, and any additional revenue streams such as after-school programs or summer camps.

4. Break-even Analysis: This analysis helps determine the point at which the daycare center will start generating a profit. It includes calculating the number of children or the amount of revenue needed to cover all the expenses, including both fixed and variable costs.

5. Cash Flow Projections: This section demonstrates the anticipated inflows and outflows of cash over a specific period, usually projected monthly or quarterly. It helps assess the financial health of the daycare center and ensures there is enough cash to cover expenses and maintain operations.

6. Financial Statements: The business plan should include key financial statements such as an income statement (profit and

Are there industry-specific considerations in the Daycare business plan template?

Yes, there are industry-specific considerations in the Daycare business plan template. The template will include sections and information that are specifically relevant to the daycare industry, such as:

1. Market analysis: The template will guide you in conducting a thorough analysis of the daycare market in your area. It will help you identify the target market, understand the competition, and assess the demand for daycare services.

2. Licensing and regulations: Daycare businesses are subject to specific licensing and regulations. The template will provide guidance on the necessary licenses and permits required to operate a daycare center, as well as any specific regulations that need to be followed.

3. Staffing and qualifications: The template will help you outline the staffing needs for your daycare center and the qualifications required for each role. It will also guide you on how to recruit, train, and retain qualified staff members.

4. Curriculum and activities: Daycare centers often have a structured curriculum and offer various activities for children. The template will assist you in developing a curriculum that aligns with the age group you are targeting and includes appropriate activities to promote learning and development.

5. Financial projections: The template will provide guidance on creating financial projections specifically tailored to the daycare industry. This will include estimating revenue based on enrollment, projecting expenses, and calculating startup costs.

6. Marketing and promotion: The template will include strategies and tactics specific to promoting a daycare center. It will help you identify your target audience, develop a marketing plan, and outline ways to attract parents and

How to conduct market research for a Daycare business plan?

To conduct market research for a Daycare business plan, you can follow these steps:

1. Identify your target market: Determine the age group, location, and specific needs of the children and parents you plan to serve. Consider factors such as working hours, income levels, and cultural preferences.

2. Gather demographic data: Use government census data, local statistics, and online resources to gather information about the population in your target market area. This data can include population size, age distribution, income levels, and employment rates.

3. Analyze competition: Identify existing daycare centers in your area and analyze their services, pricing, and reputation. Visit their websites, read online reviews, and talk to local parents to understand their strengths and weaknesses.

4. Conduct surveys and interviews: Design a questionnaire or interview script to gather insights from potential customers. You can distribute these surveys through online platforms, social media, or community groups. Ask questions about their preferences, needs, and challenges when it comes to childcare services.

5. Visit local schools and community centers: Meet with teachers, administrators, and local organizations to understand the demand for daycare services in your area. They may provide valuable insights on the number of children needing care and any unmet needs.

6. Attend community events: Participate in local events, such as parent-teacher meetings, fairs, or community gatherings. Engage with parents and caregivers to discuss their childcare requirements and gather feedback on potential services.

7. Analyze trends and regulations: Stay

What are the common challenges when creating a business plan for a Daycare business?

1. Financial Projections: One common challenge when creating a business plan for a daycare business is accurately projecting the financial aspects of the business. This includes estimating startup costs, ongoing expenses, and revenue projections. It can be challenging to determine the exact costs associated with licensing, permits, insurance, staff salaries, supplies, and marketing efforts.

2. Market Analysis: Conducting a thorough market analysis is essential to understand the target audience, competition, and demand for daycare services in a specific location. However, it can be challenging to gather accurate data and analyze it effectively to determine the potential market size and the viability of the business.

3. Regulatory Compliance: Another challenge is ensuring compliance with local, state, and federal regulations governing daycare businesses. These regulations often include licensing requirements, staff-to-child ratios, health and safety guidelines, background checks, and more. Navigating these regulations and incorporating them into the business plan is crucial but can be complex.

4. Staffing and Training: Hiring and retaining qualified staff is crucial for a daycare business's success. However, finding and training reliable and skilled employees can be challenging. Including a comprehensive staffing plan and strategies for staff recruitment, training, and retention in the business plan is vital.

5. Marketing and Competitive Advantage: Developing a marketing strategy and establishing a competitive advantage in a crowded daycare market can be difficult. Identifying unique selling points, differentiating from competitors, and effectively promoting the business can be challenging to articulate in the business plan.

6. Operational Consider

How often should I update my Daycare business plan?

It is recommended to update your Daycare business plan annually or whenever there are significant changes in your business. This allows you to assess your progress, evaluate your goals, and make any necessary adjustments to your plans and strategies. Additionally, if you are seeking funding or investors, it is crucial to have an up-to-date business plan that reflects your current operations and future projections. Regularly updating your business plan ensures that you stay on track, adapt to market conditions, and continue to meet the needs of your daycare business.

Can I use the business plan template for seeking funding for a Daycare business?

Yes, you can definitely use the business plan template for seeking funding for a Daycare business. The purpose of a business plan is to provide a comprehensive overview of your business, its goals, market analysis, financial projections, and strategies. This information is crucial for potential investors or lenders to evaluate the viability and potential profitability of your Daycare business. By using a well-structured business plan template, you can present a professional and organized document that showcases your business concept and demonstrates your understanding of the industry. This will greatly increase your chances of securing funding for your Daycare business.

What legal considerations are there in a Daycare business plan?

When creating a Daycare business plan, there are several legal considerations that should be taken into account. These considerations include:

1. Licensing and permits: Operating a daycare business typically requires obtaining the necessary licenses and permits from local and state regulatory agencies. These may include a childcare license, health and safety inspections, and background checks for staff members.

2. Zoning and location: It is important to ensure that the chosen location for your daycare facility is zoned appropriately for this type of business. Additionally, you may need to comply with specific regulations related to parking, building codes, and accessibility.

3. Insurance: Adequate insurance coverage is crucial for a daycare business. This may include liability insurance to protect against accidents and injuries, property insurance to cover any damage or loss to the facility or equipment, and workers' compensation insurance for employees.

4. Employment laws: As an employer, you must comply with federal and state employment laws, such as minimum wage requirements, overtime regulations, and anti-discrimination laws. It is important to understand these laws and ensure that your daycare business is in compliance.

5. Health and safety regulations: Daycare facilities must adhere to strict health and safety regulations to ensure the well-being of the children in their care. This may include maintaining proper sanitation and hygiene practices, implementing childproofing measures, and following appropriate food handling and nutrition guidelines.

6. Privacy and confidentiality: Daycare businesses handle sensitive information about children and families. It is essential to have policies and procedures in place