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Author Topic: Start up costs of running a daycare  (Read 9815 times)

Offline spud

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Start up costs of running a daycare
« on: February 10, 2008, 04:00:26 PM »
We could list here what all the potential expenses that are involved in running a daycare...
insurance is one we have mentioned that can cost a pretty penny..this is needed for both home and vehicle..and due to the high risk associated with children and daycare, there are limited companies that will insure for this business and at varying costs..
equiptment such as
a company vehicle with car seats,
a dishwasher, washing machine, dyer, kitchen equip
stroller (double triple stroller), wagon
high chairs, bowls, baby spoons, bibs, sippy cups etc
safety equipment locks, gates etc
playpens, change tables, potties, cots
step stools, cleaners, soap, paper towel
craft supplies, sensory, first aid etc
police check, 1st aid training, additional training
salt/sand for prompt snow/ice removal
child sized furnature ie table and chairs,
toys for all ages, enough to rotate, storage space and bins
outdoor equipment like balls, skipping ropes, helmets, bikes,
toboganns, safe swingset (that passes safety tests)
Advertising, application and forms (computer is helpful)
a receipt book, accounting info,
an accountant
« Last Edit: February 10, 2008, 04:06:10 PM by spud »

Offline JandJ

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Re: Start up costs of running a daycare
« Reply #1 on: February 15, 2009, 06:14:31 PM »
hmmm, I need to know more number if possible. If possible overall costs of running a day car for instance $50,000CND to start. (I know it is all depends on me but I need avarage). Thanks.

Offline Laura

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Re: Start up costs of running a daycare
« Reply #2 on: February 16, 2009, 12:11:27 AM »
What type of daycare are you planning to open? How big do you expect your daycare to be (number of children, staff)?

Offline CareDC

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Re: Start up costs of running a daycare
« Reply #3 on: February 16, 2009, 12:23:19 PM »
It's very difficult to determine a startup cost. It all depends on what you need to start. For example. Do you need a mini van? if so, you are looking at $20,000 or so. Then again, you can lease one for $300-$400 per month. You can also buy a used one for less then $10,000.

Offline JandJ

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Re: Start up costs of running a daycare
« Reply #4 on: February 17, 2009, 01:48:08 AM »
I am thinking to buy a house and turn it a day care.
Has anyone done this before? I wonder if there is anyone have done this.

Offline Laura

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Re: Start up costs of running a daycare
« Reply #5 on: February 17, 2009, 04:59:40 PM »
Many individuals have actually done this as a beginning spot to start a daycare business.

Before you buy a house and start turning it into a daycare, it would be a good idea to research your local regulations about what they require about zoning, health and safety issues, and regulations that are required by the regulatory body (ie. number and sizes of windows).

Once you have done this, I would then suggest that you look into how many children you can get licensed for and create a "mock" budget. 

Another issue that you should look into is "insurance" for the house and for the business.  Not all insurance companies want to take daycare businesses on board, so make sure to research the insurance companies.


Offline CareDC

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Re: Start up costs of running a daycare
« Reply #6 on: February 17, 2009, 08:32:59 PM »
Here is a link to a government site that provides a guide to starting a daycare business in Canada. You might find something there that you might need.

http://www.canadabusiness.ca/servlet/ContentServer?pagename=CBSC_FE%2Fdisplay&lang=en&cid=1099483437463&c=GuideHowto

As far as buying a house for a daycare business, no, I haven't done that :) You have to be prepared to find alternate source of income in case your daycare business doesn't turn out to pay your mortgage. That, of course, is the worst case scenario that you must be prepared for ahead of time.
« Last Edit: February 17, 2009, 09:20:38 PM by CareDC »

Offline JandJ

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Re: Start up costs of running a daycare
« Reply #7 on: February 18, 2009, 03:14:05 AM »
Thank you for your comments. Your comments are very useful for my plan. I will keep posting any questions I encounter.

Offline spud

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Re: Start up costs of running a daycare
« Reply #8 on: February 20, 2009, 10:16:38 AM »
Like any business it will take a while to establish..It would be good to do a needs assessment in the area you wish to open the daycare and be sure there is enough of a demand for you to open up in that location.
What ages are you thinking of caring for? (there are different requirements for space /environment etc for different age groups. ie baby rooms/houses have to be set up for babies..stairs can be a big obsticle for any age...toddler and preschoolers have different needs than babies adn school age...
I figure allow yourself a couple years to get established before getting too frustrated...and charge enough in fees to cover your costs..

Offline JandJ

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Re: Start up costs of running a daycare
« Reply #9 on: February 22, 2009, 01:14:26 PM »
I have done assessment in the area that I am planning to open the daycare and there is enough of a demand for me to open up in that location.

Offline CareDC

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Re: Start up costs of running a daycare
« Reply #10 on: February 22, 2009, 02:09:10 PM »
That's a very important first step, Jan, and I'm glad you did it. A lot of first-time entrepreneurs get very excited about their concept and forget to do the research to see how much competition the product or service already has. Having said that, there are no guarantees. Sometimes luck has to be on your side too.

Have you considered renting a place instead? I realise there are both benefits and drawbacks, however, you can minimize your risk this way.

Whenever you setup your business and decide on setting up a web site for it, never consider using a free service like freewebs to host it. I've seen this trend in the child care industry. Sites hosted with freewebs and other services of that nature do not rank very well in search engines. So, you lose alot of potential customers as you save $5 / month because your hosting is free. Makes no sense.
« Last Edit: February 22, 2009, 02:13:17 PM by CareDC »

Offline JandJ

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Re: Start up costs of running a daycare
« Reply #11 on: February 24, 2009, 12:36:27 PM »
Thank you for your reply, CareDC.
Good point, instead of purchasing a house renting could be done so that I could save quite amount of expense and that expense could invest in other things such as equipment or supplies or leasing a car etc.

 

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