You’ve drawn up your day care business plan, decided on your daycare marketing plan and even detailed your daycare operations
plan. Now you need to sit down to calculate how much money you will actually need for your daycare business. But how would
you know how much you will need if you do not know what sort of cost you will incur? Whilst there are many types of setup
costs when you start a daycare new businesses, here’s a list of costs that a new daycare business will likely to incur.
1. Set up costs
These are one time cost incurred for the setting up of your
daycare business. First, let’s look at the physical centre.
You’ll need to work out how much the renovations
are going to cost you, what sort of furniture and fittings as well as office equipment which you are intending to purchase
for your daycare centre. Don’t forget such as fire alarms, smoke detectors, cutlery, mats and decorative items such
as notice boards, posters and clocks etc. Sometimes, these small items can add up to quite a lot so be a little careful in
that area.
Next, think about all the paper work cost such as licenses, permits, setting up of bank account, lease
deposit, commission paid to property agent for helping you secure your centre. Basically any administrative cost.
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2. Staff costs
Next, you will need to work out how many staff you are intending to
hire for your daycare business and what it is going to cost you on a monthly basis. To have a more accurate gauge, you will
need to do a forecast about the number of children you are expecting to have, which will in turn impact the number of staff
you will require.
Based on the findings, calculate what you are intending to remunerate your day care staff. Next,
you will need to look into the auxiliary cost such as health insurance, medical benefits, taxes, sick or vacation leave and
bonuses. On average, such cost will be about 15-20% of salary.
3. Operating cost
Finally, list down what are the costs you expect to incur on a monthly or regular basis to operate your daycare business.
The first type of cost will be the administrative costs such as monthly loan / mortgage repayments, insurance
for your daycare business, conservancy charges, hire purchase repayments, rental, utilities, food supplies, etc. You should
also take into consideration costs which occur on a regular basis such as maintenance and repair.
Drawing up budgets
is an exhausting affair but a good budget and forecast is absolutely necessary as it helps the owner to anticipate the amount
of capital and operating cost he/she will need to set aside for a smooth running of the daycare business, be it a daycare
facility of home daycare. Happy budgeting! >
The complete business package to help you easily and quickly start your own profitable day
care business
Whether
you are thinking of making an income while staying home and caring for your own children or considering running a day care
at a church or other outside facility, the Starting a Day Care Center Start-Up Guide Kit™ is a step-by-step guide which
provides a collection of valuable sound advice and practical guidance for starting your own successful day care business.
It offers many pointers that even experienced day care providers will find useful. You
will have everything you need to get your new business started!
The Starting a Day Care Center Start-Up Guide Kit™ also includes over
30 ready-to-use daycare forms and sample business letters that are needed to operate a child care business, such
as Registration Forms , Agreement, Policies, Infant Supplemental Form, Toddler Supplemental Form, Emergency Contact Form,
Medication Form, Complete Business Plan.
