How much money do I need to start a home daycare?
James Olson
Updated on March 27, 2026
According to small business website bizfluent.com, the average startup cost for a daycare center is $10,000 to $50,000. This can vary widely depending on whether you’re opening a home-based daycare or leasing a separate facility for your care center. If you don’t have $10,000+ in your bank account, don’t worry.
How much do home daycare owners make?
Home daycare owners have a median income of $9.81 per hour, or just under $20,000 per year. The top 10 percent make $15 an hour or higher, while the bottom 10 percent earn less than $7 an hour.
How do I start a baby care center?
Then, study your competitors to learn what they offer and don’t, based on which you can include unique services to set you apart.
- Draw up a daycare business plan.
- Arrange capital.
- Enrol for childcare training.
- Search for a good location.
- Get a license or franchise.
Is running a home daycare profitable?
With the average 6 children allowed in your home daycare and no other helpers, you can expect to make a profit of around $30,000 a year. Considerably more, however, if you are located near a university or in a big city.
Do daycare owners make money?
Owners of daycare centers profit an average of $37,000 per year. While some owners of daycare centers report earning over $60,000 profit per year, the other side of the spectrum reported hauling in less than $20,000 profit.
How do I start a successful daycare?
9 expert tips for running your daycare
- Put yourself in the parents’ shoes.
- Consistently encourage reviews from your clients.
- Invest in your staff.
- Keep your environment clean and safe.
- Maintain a detailed handbook.
- Acquire quality tools.
- Embrace social media.
- Make important information easily accessible online.
Is home daycare a good business?
A home daycare can be a great business opportunity for aspiring entrepreneurs who love children. When operating out of your home, the startup costs and risks are low when compared to other businesses, while the opportunity for monetary and emotional rewards are high.
How much can you earn from family day care?
Saima has been a family day care educator since 2017 and currently works full-time averaging approximately 46 hours per week. Based in metropolitan New South Wales, Saima is in her mid 20’s and currently earns a gross income of $108,000 per year.
What is the profit margin of a daycare?
Bierman noted child day care businesses tend to have really high gross margins, on average around 96%. This might mean it’s easy for business owners to scale and grow their day care operations.
Can you start your own day care from home?
If you follow these steps to opening a daycare center, day care business can be a great work from home opportunity. If you’re already good at taking care of children, setting up small games and nap times, moving forward to starting a daycare business of your own is the next logical step.
What are the requirements to start a daycare center?
Decide on in-home or separated daycare center. Create business plan. Secure necessary licenses and permits. Have background checks performed. Attend an orientation session. Complete first aid and CPR certification classes. Obtain food handlers’ certifications. Appoint daycare center director (when applicable).
Who is the owner of a daycare center?
An in-home daycare center is usually run by the owner of the home, which is most likely you. In the case of a separated, freestanding daycare center though, you might need to appoint another individual as the director of the daycare center.
Do you need a business license to open a daycare?
In some states, you will have to have a general business license. You’ll also very likely have to have some kind of license that is specifically for opening a daycare center. An in-home daycare will have a separate license that is designated just for that type of daycare situation, in many cases.
