On one hand, parents may choose to let the child care be provided at their own house (through nannies or helpers) in order for the child to avoid illnesses that can be transmitted from outside interactions. On the other hand, a child that is sent to a child care facility usually has a greater amount of socializing and communication skills compared to a child receiving care in the comfort of his/her home. In relation to this, a child care center having an appropriate business plan outlined is guaranteed to provide a better quality service at an appropriate cost while keeping their operations in check compared to those centers that do not outline their plans correctly.

What is Child Care?

By definition, child care refers to the service of caring for children while the parents are away. It can be also known as the care of one or multiple children at a time, with the age range varying from a measly two weeks old to a developed teenager (usually around seventeen to eighteen years). The type of care a child receives varies between different cultures or countries since this topic is usually a very broad one that talks about a plethora of professionals, institutions, activities, and social and cultural inventions. In child care, parents may choose to find a personal caregiver or arrange a childcare exchange or swap with a completely different family. In addition, you should review our Child Care Agreements.

What is a Child Care Business Plan?

A child care business plan is an essential Important business document that describes in clear detail how a business (in this case, a child care center) defines its objectives and how to go about achieving its respective goals trackers. This document will also serve as a blueprint for attracting investment even before a child care center has established a good and reputable record. A child care center can opt to have a lengthy and detailed business plan or just settle for a simpler, shorter one. A business plan is also needed by this establishment – or any establishment, before even commencing their operations.

What are the Types of Child Care?

There are many different types of child care, and depending on the one you choose, you can spend a little amount of money on basic services, or a lot on a more sophisticated development and care option. Some care providers may even work for the parents for free if all they need is gaining the necessary experience to be a proper child care provider. With that being said, here are the different types of child care:

Parent Helper: This type of child care talks about a provider who just watches and entertains a child with the parents also at home. Helpers are often of much younger age than the parent. These types of providers usually work for free or at a measly hourly rate.Babysitter: Similar to a parent helper, they are hired by the parents to take care of their children. The main difference is that babysitters are usually paid at an hourly rate and do not work for free. They usually work day and night, and the babysitter can choose to watch over the child at the parents’ home or their own. Their main responsibilities include preparing food, helping the kids with their homework, and helping them sleep.Nanny: A Nanny watches the child for multiple spread-out hours everyday or on a consistent basis. A nanny typically has a close relationship with the child’s parents. They usually have undergone a proper education regarding child development. Nannies have higher hourly rates compared to babysitters. Their male counterparts who provide the same kind of services are called Mannies.In addition, you should review our nanny agreement.Au Pair: This is a French phrase, meaning “at par” or “equal to”. An au pair refers to a person who lives in a different country whose task is to provide live-in child care for a family that he/she is working for. The responsibilities of an au pair include everything related to child care but do not involve house cleaning.Daycare Center: Refers to a non-residential establishment that provides childcare. They usually have monthly fees that depend on the location and the type of services provided. Traditional daycare centers are formal, structured places with specific drop-off and pick-up times. The activities inside a daycare center typically include very basic education and social skills, mealtimes, nap times, and outings.Family Daycare: Family daycare refers to a type of child care service that is provided in someone else’s household. Compared to a traditional daycare center, they are much cheaper in terms of cost and often only host a few children. This is different from a nanny since the caregiver does not go to the child’s home.You should also take a look at our daycare lesson plan.Teachers: These professionals will provide the appropriate child care once the child is now old enough to attend school. The role of a teacher is not only to educate, but also to provide support, encouragement, and a safe environment for the children.

Essential Elements of A Child Care Business Plan

Here are the elements that you can include when you’re beginning to make your own child care business plan. It should also be noted that some of these elements may also apply when creating other types of business plans.

Mission and Vision: One of the first things that you should include in creating a business plan is the mission and vision statement which states who you are as a company and what your ultimate goal as a business will be. In this section, you need to specify what you believe and the goals that you need to accomplish as an establishment. You can write this part as a brief statement.Description of Business: In this part of the child care business plan, you should explain what you do in your business, how you do it, and who your business serves. It is important to be specific in writing this section of the business plan. Information that can also be included here is the start date, hours of operation, and any miscellaneous information that helps further explain the business.Competition: In this part of the document, you can make use of different kinds of information on what makes your business stand out from competing establishments and list them down here. To lay out the information clearly, you can make use of different kinds of visual aids, such as bar graphs, charts, and miscellaneous statistics.Keys to Success: This section is a very important one in your business plan. Defining the key points that can make your child care center succeed is essential especially if you are planning to get some outside funding. You need to explain in detail the numbers that your business is projecting and also you need to explain how you will be able to break through the market. You can also explain how to attract potential customers to your planned business.Details of the Personnel: In this section of the business plan, write down the staff that is necessary for getting the operations of the child care center up and running, such as the management structure and the ownership structure. You can also list down their respective qualifications in the role that they are taking.Financial Details: This is another important element that should be included in the child care business plan. In this section, you should write down and explain the startup budget, the funding sources, and the overall breakdown of the expenses of the child care center. The breakdown of the calculated budget includes the monthly fees, tuition, or other sources of income.

Step by Step Process in Preparing an Effective Child Care Business Plan

Preparing an effective child care business plan can be considered an intimidating task for other people, especially if they’re new to this field. But fortunately, it does not have to be very challenging. A good business plan allows you to define and achieve your goals. It will also help you to overcome risks to reach the goals that you’ve set.

Although every business plan is different from each other, the elements included inside it are roughly similar. With that being said, here are the steps you can follow in effectively preparing a child care business plan:

1. Analyze the target market and start with the basics.

In this step, it is important not to overcomplicate things and it is much better to start with the basics. You can ask yourself questions such as “What am I going to do about the daycare business?” You can also begin this step by making thorough research analysis report of the market that the child care center is planning to appeal to. By carefully detailing what kind of services your planned child care business will be providing, you will be able to create a clear and concise plan for the business.

2. Assess the needs of your business.

This is roughly similar to some things in the first step. In this step, you can begin by looking at the current trends that are in the child care industry. After that, follow through by beginning to narrow down the choices based on the choices that suit your area the most. Also, confirm if your business is really needed in your local area. You can also research on ways on how to make your child care business stand out in your area if there are already competing businesses that exist.

3. Write down the parts of the plan and advertise it.

In this step, now you can begin writing your business plan and it is important to include its essential elements (listed earlier) in order to make it effective. You can also create your own marketing plan in this step. Being smart in developing a marketing plan is a good key to attracting potential customers. You can also choose to advertise your new business in local directories in your area, getting some people to spread it through word of mouth, or making some noise in the world of social media. As stated earlier, it is also essential that you list things that differentiate yourself from the competition in the advertisement you’re making.

4. Proofread and polish the business plan.

In this final part of preparing your business plan, it is important that you give the document that you’ve created a thorough inspection and review. The purpose of this step is to make sure that all the main elements of the child care business plan are included along with the miscellaneous ones. It is also to make sure that nothing of significant importance is overlooked such as any non-important parts being included or some parts of the document not being explained or written thoroughly. If any discrepancies are noticed, it is recommended that it should be revised appropriately.


Why is having child care a necessity?

Having the proper child care for your kid is important because it helps them develop the skills that they need both for their wellbeing inside the school and also for improving their skills outside the school. These include the following skills (but are not limited to): social, emotional, and communication skills, improvement of their pre-literacy and basic math skills and understanding of their concepts, and awareness of the environment that they are growing up in, along with the roles of the people in it. Child care is also important because it helps keep them relatively safe and healthy at home or wherever they may be.

At what age should the child be receiving child care?

In modern times, children are usually given or they usually enter child care at a very young age. Even care for toddlers and infants is becoming increasingly common. At a young age, it should be noted that the most important aspect of an infant’s development is his/her relationship with the family. Proper parenting that is warm, sensitive, and responsive to the infant’s needs is key for a child in terms of developing a sense of security with his/her parents. It also helps brain development in the child which can lead to better cognitive and social skills when the child grows up.

Are there issues with child care?

Yes, there are also issues that are present in child care. One issue that stands out, in particular, is childcare infection. It happens when there is a spread of infection during childcare at a care center or at a school. The main reason for getting infected is due to the children making contact with someone (typically a fellow child) that is having an infectious and contagious disease and the carrier then spreads it to the entire group. Because of this particular issue, parents sometimes opt-out of having their children in a care center and instead let their children receive care at home. Influenza is one of the common illnesses that can be spread inside a child care center.

Everyone simply wants the best for their own child/children. In turn, children also deserve the appropriate support and care for their age and environment, to enable them to fully develop their social skills when they grow up, as well as to enhance their academic skills and environmental awareness. Having a good child care provider is usually the first route that the parents would take, whether hiring a babysitter, a nanny, or sending their own kids to a child care center. In relation to this, having a properly written child care business plan enables the establishment to properly render service and appropriate care to the customers it is catering to and it also helps them realize the goals that they’ve set, whether it is long-term or short-term. In this article, examples of an effectively prepared business plan for child care are provided above for you to be able to use personally as a reference.