HOW TO START A QUALITY CHILD CARE BUSINESS - Management and Planning Series - Start a child care business

Sep 22, 2026

Guidebook on starting and operating a quality child care business, presenting a step-by-step planning and preparation process. Covers choosing among child care program types, assessing national and community demand, and clarifying motivations through self-assessment, skills, and time management. Details business setup tasks such as legal structure, licensing, location options, taxes, insurance, financing, financial management, marketing, and staffing, followed by center preparation, safety, program planning, nutrition, parent communication, and staff training.

LanguageEnglish

CategoryPresentations

FormatPDF

Pages69

Reading Time24 min

AccessFree to download

Introduction

Types of Child Care Programs

Assessing the Need for Child Care Programs

Identifying Your Reasons for Going into Business

Preparing for Business

Finding a Location

Tax Laws

Insurance

Financing Your Business

Developing a Financial Management Plan

Developing a Marketing Plan

Developing a Management Plan

Preparing the Center

Planning the Program

Training

Appendixes

U.S. Small Business Administration MP-29 HOW TO START A QUALITY CHILD CARE BUSINESS Management and Planning Series How to Start a Quality Child Care Business replaces "Quality Child Care Makes Good Business Sense Portions ofthis publication were reprinted with permission of authors: Kathy Modigliani, Marianne Reiff and Sylvia Jones, authors of "Opening Your Door to Children: How to Start a Family Day Care Program," Copyright 1987. All rights reserved. The material in this publication may not be reproduced or transmitted in any form or by any means -- electronic, mechanical, photocopying, recording or other--without the prior written permission of the U.S. Small Business Administration. While we consider the contents ofthis publication to be of general merit its sponsorship by the U.S. Small Business Administration does not necessarily constitute an endorsement of the views and opinions of the authors or the products or services of the companies with which they are affiliated. All SBA programs and services are provided to the public on a nondiscriminatory basis. TABLE OF CONTENTS INTRODUCTION TYPES OF CHILD CARE PROGRAMS ASSESSING THE NEED FOR CHILD CARE PROGRAMS National Need Community Need IDENTIFYING YOUR REASONS FOR GOING INTO BUSINESS Motivations Personality--Self-Assessment Questionnaire Skills and Experience Time Management PREPARING FOR BUSINESS Name and Legal Structure License Requirements FINDING A LOCATION Operating a Center Outside Your Home Operating a Center from Your Home TAX LAWS Sole Proprietorship Corporation Partnership S-Corporation Tax-exempt Center INSURANCE Liability Accident FINANCING YOUR BUSINESS Private Sources Commercial Banks Government Agencies Grant Programs Other Sources DEVELOPING A FINANCIAL MANAGEMENT PLAN Start-up Budget Operating Budget Monthly Operating Expenses Balancing Income and Expenses Fiscal Policies Audits DEVELOPING A MARKETING PLAN Know Your Customers The Marketing Program Marketing Your Center Know the Competition Sources of Market Information DEVELOPING A MANAGEMENT PLAN Finding and Hiring Staff Determining Staff Size Setting Working Hours Deciding on Staff Responsibilities Establishing Salaries and Fringe Benefits Personnel Policies Volunteer Staff PREPARING THE CENTER Safety Equipment and Materials Setup Storage PLANNING THE PROGRAM Communicating Policies to Parents Structuring the Program Nutrition Parent Involvement TRAINING The Child Development Associate Program Other Degree Programs APPENDIXES A. Business Plan Outline for Child Care Centers B. Sample Survey for Parents C. Curriculum and Instruction in Early Childhood Education D. National Organizations E. Information Resources INTRODUCTION Owning and operating a child care business can be a very challenging and rewarding career. Success in this field requires dedication, love and patience. The work day is longer than a normal eight-hour day, but the satisfaction of watching children grow and develop will be worth the extra effort. If you are interested in starting a child care business, this publication will help you plan, prepare and operate your business. It explains the step-by-step process of starting the business, from assessing the need for child care services to selecting the service, setting up your business and preparing for opening day. A sample business plan outline for child care businesses is included, in addition to a sample parent survey, a typical undergraduate curriculum in early childhood instruction, general resources and a list of related national organizations. TYPES OF CHILD CARE PROGRAMS According to the 1984 U.S. Census Bureau report, Who's Minding the Kids?, parents generally select one of three types of child care facilities: family care, home care or day-care center. There are, however, other child care programs available, including

FAQs

What is the publication’s purpose for someone starting a child care business?

It helps plan, prepare, and operate a child care business by explaining the step-by-step process from assessing need through preparing for opening day, and includes sample tools such as a business plan outline and a parent survey.

What types of child care programs are discussed in the guide?

The guide outlines family care, home care, day-care and child development centers, child care development homes, infant care centers, before-and after-school care, satellite child development programs, and nursery school.

Which main business planning areas are covered beyond program selection?

It covers legal structure and licensing, selecting a location, tax laws by business type, insurance categories, financing options, financial management planning, marketing planning, and management planning including staffing and responsibilities.

Sep 22, 2026

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