Education

How to Start a Childcare or Daycare

To start a childcare or daycare you need a state license, a facility meeting safety standards, CPR/first aid certification, background-checked staff, and adequate staffing ratios. Most daycares open in 6–12 months with $50,000–$200,000+.

Startup cost: $50,000 – $200,000+ Timeline: 6–12 months 8 steps

Step-by-Step Guide

1

Check your state licensing requirements

Each state has specific requirements for child care licensing, including facility standards, staff qualifications, staff-to-child ratios, and background checks.

2

Choose home-based or center-based

Home-based daycares have lower startup costs and licensing requirements but lower capacity. Center-based daycares require more capital but can serve more children and generate more revenue.

3

Find and prepare a facility

For a center, lease a child-safe space with classrooms, outdoor play area, kitchen, and restrooms; meet state licensing standards for square footage, safety, and equipment.

4

Obtain CPR and first aid certification

All staff must have current CPR and pediatric first aid certification; this is a licensing requirement in all states for child care facilities.

5

Complete background checks

All staff and household members (for home-based) must pass comprehensive background checks, including criminal history, child abuse registry, and fingerprinting.

6

Purchase equipment and supplies

Invest in age-appropriate furniture, cribs, toys, books, art supplies, kitchen equipment, safety gates, first aid kits, and outdoor play equipment.

7

Set up child care management software

Use daycare software (Procare, Sandbox, Famly) for attendance tracking, parent communication, billing, child development records, and staff scheduling.

8

Market and enroll families

Build a website with local SEO, list on Care.com and child care directories, offer tours, and leverage parent referrals; maintain a waitlist once at capacity.

Find vetted providers for your childcare or daycare

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Frequently Asked Questions

Home-based daycares cost $5,000–$30,000. Center-based daycares cost $50,000–$200,000+, covering lease, build-out, equipment, licensing, and staffing for the first few months.

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