Starting a Daycare Business: Tips and Options to Consider

Daycare startups are becoming increasingly popular in areas where there are “childcare deserts,” or a lack of childcare providers. These areas are defined as having more than 50 children under age 5 with either no childcare options or so few that there are more than three times as many children as licensed childcare slots. Families are often forced to wait for extended periods to find care for their children. Investors have recognized this need, and many are eager to start a daycare business. However, what are the necessary steps to make this venture a success?

Investor Avatars in the Childcare Industry

The landscape of childcare center owners has drastically changed in recent times. The industry now boasts of diverse investor avatars, including entrepreneurs seeking fresh investment opportunities, existing childcare owners aiming to grow their businesses, childcare employees eager to start their own centers, families frustrated by the current lack of accessible care, corporations offering in-house childcare as an employee benefit, and school districts expanding their services to meet the early education needs of their communities.

Starting a Daycare Center: Exploring Your Options

When considering opening a daycare center, there are a variety of options to weigh, each with its own set of benefits and drawbacks. Here are three possibilities to consider when starting a commercial group childcare center:


  1. Franchise: With a franchise, you’ll have access to a ready-made plan to get your center up and running, as well as instant recognition from the franchise name. However, you may miss out on the chance to create a unique brand, and franchise fees can be a recurring expense for the life of your centers. Major players in this market include Bright Horizons Family Solutions, Learning Care Group, Primrose Schools, and Goodstart Early Learning.

  2. Buy an Existing Center: Acquiring an existing center means you’ll gain an established brand, staff, and clientele. However, you may also inherit any problems that come with the center and may have to spend significant time and resources cleaning up any issues. In the end, the shortcuts may not be worth it.

  3. Start Your Own Brand: Starting a childcare center on your own is a viable option, but it’s a complex industry to navigate and the process can be time-consuming. Working with a child care consultant who understands the industry and can help you develop a brand you’re proud to own may be a better choice.

Building Your Childcare Business with the Help of a Consultant

Collaborating with a childcare consultant can be a valuable resource in establishing a distinctive brand that you can confidently own and expand upon. A consultant can offer expert guidance in making crucial decisions, implementing effective strategies, tracking progress, and adapting to changes as necessary. Utilizing the services of a consultant can also be cost-effective and time-saving, while providing you with a wealth of knowledge and insight into the industry.


Launching a daycare business is a demanding yet fulfilling endeavor. By taking the appropriate steps and receiving adequate support, you can establish a thriving childcare center that caters to your community’s requirements while fulfilling your professional and financial objectives. Evaluate the available choices and select the one that is in line with your objectives and vision. Additionally, bear in mind that collaborating with a child care consultant may be the critical element that leads to your triumph.