Many factors will influence starting up costs of a further child daycare operation and depending on your plans you could be facing anything from $1000 up to a couple of hundred thousand dollars to get your daycare business off the ground.
In the article below we set out a number of the start up costs that you’ll be up against as you open your own business.
Business Premises-You would require a decent sum of funding if you were trying to lease a space for your daycare. The costs involved with a home daycare are much less but do not forget that you’ll be giving up a piece of your personal space to the business. This cost cannot be easily measured. Daycares operating out of houses also have startup expenses though and you’ll need to take into account the expenses related to renovating your house.
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You need to create a small office space in within your daycare center to manage your business. This requires money for initial costs like furniture, computer, internet, telephone, and stationery expenses.
Licensing, Compliance, and Safety Costs-Fire safety equipment such as extinguishers and fire alarms must be installed, other safety equipment must be purchased and the entire area must be fenced off to keep children within a safe playing zone. A business license and other relevant permits will also add on to initial costs.
Various expenses are also incurred by means of installing safety devices like fire extinguishers, first aid kits etc as well as required licenses and permits too.
Other things to Buy-To get the daycare ready to receive children you’ll have to set up a place that is well designed and friendly to parents and children alike. Set out a budget for buying furniture, toys, decorations, and other educational supplies.
Other Purchases-To get the child care center ready to be in a position to receive children on a daily basis you’ll have to transform it into a place that is well designed and friendly to children and parents alike. Set out a budget for buying furniture, decorations, art and craft materials, toys, and other supplies.
Daycare Business Administration-Set a room aside for an office or have an open office and reception area. Learn more about the costs involved with running a small office like PC set up and Internet connection, phone line installation and initial purchases of other office furniture and equipment.
Office Area-You will have to create an area that can serve as an office. Expenses here could include filing cabinets, stationery getting a phone line installed and Internet connection.
Ongoing Expenses-Some daycare startup budgets also include operating costs during the first two or three months of business when they calculate startup costs. This is reasonable because it can be several months before the company is making a profit.
Business Promotion-You will have to consider initial advertising costs as you get word out about your new venture. You will have to commence your advertising efforts at least a few months before you actually open your doors so that you’ve some children attending when you open your doors for business.
It is important to show some restraint as you set up a home daycare business and to stop startup costs from getting completely out of control. But at the same time you require to have spent enough by opening day that your premises are looking fully organized and professional with a set up that attracts the parents of young children to your services. Sensible budgeting for your daycare center set up costs will go a very long way to determining your level of success in the early months of your business life.