There's a definite need for day care centers as more and more mothers of pre-school age children are forced to find jobs outside the home. This is due in part to the current economy, and unfortunately, to the high divorce rate, which means mothers who
might ordinarily stay at home and care for their own children must seek income to help make ends meet.
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 in struction he receives, and the habits he forms during those years, definitely affect his ability to learn and properly ad just 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.
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.
You might find, if you have your business plan in order, that a church or labor union will sponsor your business, or even offer financial backing. Arranging some sort of partnership or sponsorship agreement with an established local organization will solve a lot of problems for you, not only in the area of space but in assistance with start-up costs and city-father approval.
Incidentally, a day care center is perhaps the ideal business for absentee ownership or a group of professional investors. Keep this fact in mind as you organize your plan and seek financing. See our business report, How To Raise Money For Starting Your Own
Business.
Generally, a "shoestring entrepreneur" in this business will do very well to locate in a vacant convenience store, or even a vacant grocery store in a larger shopping center. The zoning will be in your favor, plus you'll have adequate parking space, and less expense in partitioning or remodeling the building to suit your needs.
Ideally, your day care center should be located on a main thoroughfare, with the building set back from the street. You should be on the right hand side of the street as the traffic heads towards the major business or industrial areas of your community. In larger metropolitan areas, this would be on the city-side of the "bedroom" communities. In smaller communities, you can locate just about anywhere except in the downtown area.
If at all possible, you should plan your facility similar to a hospital or motel entrance. This would be a driveway from the street to your door, usually under a covered drive-thru, with the driveway continuing back out to the street. Your long-term parking space would then be located in the center of the "U" or between the driveway and the street. You want to strive for the convenience for the parent in being able to drive right up to your door. She can drop off the child with only a few steps into your facility and easy access back onto the main thoroughfare.
Depending on your city sign ordinances and your finances, go all out with your sign. Advertise the name of your day care center, the hours you're open, whether you accept drop-ins, overnighters, or weekenders, and of course, your phone number .
The sign makers and advertising people may strongly advise you against so much wording on your sign, but in this instance, don't listen to them. Your sign should state all essential information, and serve to convince passers-by that you can handle their child-
care problems whenever the need arises.
If you initially locate in, or through the sponsorship of a church or labor union, these people can assist you tremendously by including a mention of your services in their membership bulletins, and by passing out circulars or flyers.
You'll need to decide on your regular day care hours. Generally, these are from 6 a.m. through 6 p.m. You'll also need to decide whether you want to offer breakfast for the children. If so, you'll have to plan for a cook and food supplies for morning meals. We'll discuss kitchen facilities and kitchen help later, but the first decision must be if you will include breakfast. You'll already be set up with kitchen facilities and a cook because you will be serving a noon meal. If you do decide to offer breakfast for those parents not wanting to feed their children at home, you'll be able to add $8 to $12 per week to their billing. By buying your food supplies in bulk, you'll probably be able to realize some savings in overall food costs.
Mid-morning and mid-afternoon snacks are required in some states, but even where they're not required, they are pretty much standard fare in most day care centers. Fresh fruit, cookies, and juice are the usual snack foods served in most day care centers.
As mentioned earlier, you'll definitely be providing a hot meal for the children at noon. This entails a cook, dishes, planned menus, food supplies in bulk, and perhaps even small size table and chairs. You'll also have to have kitchen help and facilities for washing the dishes.
These are just some of the important overhead costs you must plan for, and of course you will work to keep them as low as possible. As you should know by now, the greater your overhead, the more children you're going to have to take in, and the more
children you take in, the greater your space requirements.
All profitable day care centers operate according to planned routines. The day is broken down into one-hour segments, with pre-planned curriculam, much the same as classes at a public school.
A typical day begins with a play period from whenever the children arrive until about 9 o'clock. For this, you'll need indoor sand boxes, toys and perhaps a family-sized television set. From 9 to 10, the children are separated into groups - generally by ages - and you hold a reading or story-telling session. The mid-morning snack time is scheduled sometime between 10 to 11. For the younger children, this might include a mid-morning nap. After snack time, a learning session is usually held. Typically, this is the time when guests are invited in to speak or entertain the children.
Work with your Chamber of Commerce, civic clubs, and city administration for guests. Children will especially enjoy visits by policemen, firemen and others who talk to them about citizenship, show films, and teach them about the things they do in the community.
You can also get upperclassmen at your local colleges to visit and demonstrate such things as drawing, working with clay, building with wood, making things out of paper, and hundreds of other talents or skills they might be learning. The important
thing is to bring "outsiders" in to talk to the kids about what goes on in their world.
Noon to 1 o'clock is generally lunch time, and from 1 until 2 is another learning session. During this afternoon learning session, you might offer the rudiments of reading, writing and arithmetic. These teaching chores can be handled by college students studying to be teachers, retired teachers, or unemployed persons with teaching certificates. It's not so much a session to teach proficiency as a time to stimulate interest in formal education. The basic goal of most day care centers is to instill within each child a desire to learn more about the world in which he lives. Thus, each child should be full of plans for "when I get to be six years old and start school, I'm going to..."
About once a week, your afternoon learning session should be a tour or a trip to some place that might be interesting as well as educational for the children. Again, you're making the idea of learning not only interesting, but an exciting ad venture as well.
These trips can be anything from a walk in your immediate neighborhood to loading all the kids into cars or onto buses and taking them to the zoo. Check it out first, but on the whole, you'll find most businesses in your area will welcome opportunities to show the children around their offices or factories. The same thing quite naturally applies to your city offices, fire department, police department, and radio or television stations.
On days when you don't have a trip scheduled, your "learning session" might be a film or program related to nature, particularly animals. The advent of the Video Cassette Recorder has opened endless possibilities in this area. Nap time and snack time will fill a period for younger ones, and books and quiet games will occupy older children who do not take a nap. When the nap period is over, they're allowed to play until their parents
come by to pick them up.
