It takes money to start a child care business and to be successful it is important to have a fairly accurate idea of how much you will need. Child care business startup costs can range from as little as a few thousand dollars for a home-based operation up to more than 0,000 for a larger center in leased premises. Below we discuss some of the typical child care center startup costs and how you should plan and budget for them.
Child Care Center Startup Costs Vs Operating Costs
Child Craft Crib
Don't forget to clearly distinguish startup costs from operating costs to get a realistic figure of how much capital you will need. Startup costs are the sum total of all the spending that you will need to do up to the point where you can open your doors for business. Operating costs on the other hand are the ongoing monthly expenses associated with running a child daycare.
Eventually your income will cover your operating costs and leave you with a profit every month. Businesses can be slow to take off though and you may not reach full capacity and have everything running smoothly for quite some time after you have commenced business. Therefore it is wise to make sure that you have enough funding for your child care center to cover startup costs as well as operating costs for the first three to six months at least.
Location and Renovation
The main expense associated with running a child care business is having access to suitable premises. While you can in some cases save money here by operating a child daycare from your home, you still have to devote a large part of your property to this venture that won't be able to be used by your own family for other purposes. This represents an opportunity cost that can be hard to place a dollar value on.
Don't forget that you may be required to make alterations to your home and property to create a 'child friendly' environment. These renovations could include fencing off an outdoor play area or installing gates to keep children from falling down stairs.
Compliance and Safety
Compliance and safety costs can quickly add up with the many necessary devices that must be installed for fire safety (extinguishers, alarms), child health (First Aid kit) and child safety. Combine these with the costs associated with getting a license and permits and you are looking at around 0 to 0.
Toys and Equipment
Next you have to consider all the equipment that you will need for child care, entertainment and education as well as to create a visually pleasing environment. You may need to buy small tables and chairs, toys, books, wall charts, art and craft supplies, play structures and DVD's.
Requirements will differ depending on the market that you are catering to. If you take care of infants you may need such equipment as cribs, blankets and high chairs.
Children can be really rough on equipment and you have to keep this in mind when pricing your child care services. When buying toys and furniture always go for the best quality rather than the cheaper products which don't have such a long lifespan. Buying second hand is a good idea but just make sure that any really old equipment meets current safety standards.
If you are preparing meals for children on-site then you will also need to kit out your kitchen if you haven't done so already.
Also allow for the costs associated with setting up a small office for you to manage the child care business from. The usual costs here are associated with stationary, phone line connection and computer and internet expenses.
General Business Startup Costs
Some other child care center startup costs may also include professional fees to lawyers, accountants and consultants. There will also be an initial cost related to your insurance premiums.
Marketing
Lastly, you will have the marketing expenses associated with launching your child care startup. These promotions could include an opening party, a pre-launch advertising campaign as well as costs associated with getting your brand established such as a logo design, business cards and signage.
It is easy to see how costs can get out of control from the outset and on an ongoing basis. The important thing is to budget carefully and buy only what you need at first. Make a list of priorities and plan to buy some of the less essential items at a later date when your business is already making a profit.
Be disciplined right from the start and keep your child care business startup costs to a minimum while still ensuring that you have everything that you need to serve your customers well.
Black Friday Stork Craft Rocking Horse, Natural 2011 Deals
Nov 14, 2011 15:41:23
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Black Friday Stork Craft Rocking Horse, Natural Overview
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