How to Write a Daycare Business Plan

The daycare industry has been growing at a rapid pace across the US in the last decade for so many different reasons.  To illustrate, for some reason, people keep having children.  As more people have children, the need for watching the children grows in tandem.  Thank goodness for procreation, right? 

Also, daycares, by and large, have been taking steps to integrate education well before preschool.  This teaching often leads to increased opportunities of success for children entering preschool and kindergarten.

As the demand for daycare continues to grow, more and more daycare businesses will be entering the industry.  To help daycare business owners set a solid foundation for future growth, here are some tips and tricks to consider when writing a daycare business plan.

Need Help With a Day Care Business Plan?

Call or Text Paul, Doctoral Candidate, MBA.



Hours of Operation: 7 Days a week 8 am to 9 pm EST.

Our business plan writer is located in Orlando, Fl.

Executive Summary for a Daycare Business Plan.

The executive summary section of a daycare business plan should succinctly describe the internal and external aspects of a daycare business plan. Essential topics to include in the executive summary would be the legal description of an organization, location of the daycare, ages that will be served, how much money will be needed to start the daycare, and expected revenues and cost once the daycare starts operations.

Company Information and Location for a Daycare Business.

The company information section of a daycare business plan should start with briefly describing the problem that the company intends to solve for their customers.  In this case, for the most part, parents need a safe place for children to stay and learn while at work.  Once this problem is explained, then other important company aspects should be examined.  For example, the company information section should describe in detail the ages and educational opportunities available for children.  Some daycares specialize in infants through five years.  Other daycares catered to one-year-olds all the way up to 12 years.  Regardless of the age brackets service, make sure to discuss each and possibly offer a range of prices to give the reader an understanding of your price strategy.

Looking for a Day Care Business Plan Template?

We Have it!

Product Description  and Competitive Advantages for a Daycare Business

The product description and competitive advantage section should show how your daycare will differentiate from other competitors in the area.  To illustrate, a daycare location may be near a busy office complex.  This location will allow office workers easy access for dropping off and picking up their children before and after work.  Regardless of what your competitive advantage might be, make sure to fully explain the advantage and how you may exploit the opportunity in your business operations.

Target Market for a Daycare Business

The tricky part about identifying a target market for daycare businesses is that you really don't know who your actual target market will be until customers start pouring in.  However, when starting your daycare business, you do need to have some idea as to who your target market will be.  Further, your target market should be aligned with your services offered.  For example, if your daycare center will be located in an upscale neighborhood, then make sure your services include proven educational programs.  In this scenario, the target market would be middle to high wage-earning parents seeking exclusive daycare services using state-of-the-art educational products.  Just keep in mind, just because you think this demographic will best appeal with your products and services does not actually mean that it will happen.  So, be flexible when considering your target market.

Industry research for a Daycare Business Plan

When conducting industry research for the daycare industry, make sure to start with analyzing national trends.  When researching national trends, look for popular educational programs used, unique amenities provided to children, and complimentary services that might be offered to supplement daycare revenues.  For example, more and more daycares are offering tutoring services after school for school-age children.  Not only does this service bring in additional revenues, but it is also a competitive advantage that other facilities may not embrace.

Owner and Management Section of a Daycare Business Plan

The owner and management section of the daycare business plan should highlight the owner's experiences and desires for starting a daycare organization.  Also, in this section, make sure to describe each manager's experiences as well as the background research conducted on each person coming in contact with the children. 

As we all can appreciate, parents are immensely interested in the safety of their children.  This safety starts with the business owner and managers.  So, make sure to stay ahead of this demand and provide transparency in regards to owners' and managers' backgrounds and experiences.

Funding Request for a Daycare Business Plan

The funding needs for a daycare may be as simple as purchasing simple amenities and safety products for an in-home daycare service.  Also, daycare funding may be as extravagant as a $1 million-plus facility designed to meet the perceived educational and nurturing needs of all age groups serviced.  No matter what the funding needs, make sure to always break down the funding needs into various categories. 

Daycare startup funding needs often include purchasing inventory for meals and snacks, advertising on social media as well as the Internet, purchasing land and equipment, and or acquiring vehicles to transport children to and from school.  Once each category is identified in a dollar amount allocated, in the end, make sure to total the amount needed for startup.

Financials for a Daycare Business Plan.

The financial section for a daycare business plan should start with weekly revenues.  The weekly revenues should be broken into different age brackets and aligned with expected prices charged for each.  Next, make sure to identify complementary services like transportation fees or additional snack fees.  Once the weekly revenues are calculated, make sure to expand the revenues to a monthly projection.  Once this is done, then create a list of monthly costs, which should include rent, utilities, food, and transportation costs.  Once done, total up the costs and deduct the cost from monthly revenues.  With this complete, you now have a basic monthly profit and loss statement as a foundation for your future daycare business plan.

Hopefully, these insightful tips and tricks for writing a business plan were helpful.  As always, if you need help with a business plan or financial projections, just send us an email or give us a call. 

Phone: 321-948-9588



Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Quality Business Plan, and Quality Business Consultant.

Date: 9/3/2020