Many experts expect the demand to increase through the turn of the
century, and the popularity of this type of business to continue growing
from there. They base their forecasts on the fact that more and more
young parents have happy memories of the time they spent in day care
centers, and the learning experiences they enjoyed. And again, there is
the continuing need or desire of young mothers to work outside the home.
Profitable day care centers are much more than glorified baby-sitting
services. Social researchers have found that the most important years in
a child's development are those from one to six. Thus, the exposure to
the world in which he lives, the instruction he receives, and the habits
he forms during those years, definitely affect his ability to learn and
properly adjust as he progresses on through his years of formal
education.
For mothers of today - usually better educated than their mothers -
are more aware of these factors and wanting the best for their children,
are demanding the structured pre-school education and learning
stimulation offered by modern day care centers. This is an honest desire
of the mothers of pre-school age children - even those who aren't forced
to work outside the home.
Another thing in your favor: Even though there seems to be a trend
for many large companies to finance and operate day care centers for
their employees in or close by their factories or office buildings,
studies show that most working parents prefer to leave their children
closer to home than where they work. Thus, privately operated day care
centers in residential neighborhood areas should not be worried too much
about competition from the few company operated day care centers.
Starting
Your Business
The first step toward start-up of a profitable day care center is to
understand what makes them profitable.
There are a lot of day care centers operating with full enrollments
of 35 to 65 children, but just barely breaking even. This is generally
the result of regulations imposed by the state government, causing
exorbitant overhead costs of operation. Basically, you'll need
facilities to handle 150 to 200 children in order to realize annual
profits in the "before taxes" bracket of $100,000.
Check with your state and local government regulatory agencies. Many
states require day care centers to provide a minimum area per child,
both inside and outside the building, plus at least one hot meal per
day. A licensed teacher for every 15 to 20 children, and even a licensed
nurse on the premises may be required. Be sure to know the regulations
in your area, and then design your business plan to meet these
regulations.
Actually, you can begin by operating a baby-sitting service, by
learning and expanding from your profits, and of course, through the
long-term benefits of establishing a quality image. In fact, we
recommend that you do start small - with a baby-sitting service - and
build upon your progressive successes. Unless, of course, you have half
a million dollars to invest.
Once you're beyond the baby-sitting stage, out of your home and
backyard, beginning to build a real day care facility, you might try
locating in your church or one of your area's civic club facilities.
Also, you should check out the possibilities of renting or buying a
vacant house. A large ranch-style home with a large backyard would
probably suit your needs at this stage. But be sure you have zoning
approval from your city council before signing a rent lease and
finalizing your plans.
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