HOW TO START YOUR OWN DAY CARE CENTER 

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 
instruction 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 curriculum, 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 adventure 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. 

Whenever possible, you should encourage the children to be 
outside during play periods. If you have lots of playground 
equipment, you won't necessarily always have to have organized 
games, but you will have to have a playground supervisor - someone 
to watch the children and see that they don't get hurt as they 
play. You can hire part-time help for this chore, perhaps from 
the local colleges, for minimum wage. If your city ordinances do 
not cover the specific age requirements of a playground 
supervisor, you might be able to hire students from your 
neighborhood high school. Select all the people you hire relative 
to their affinity with children and their dependability. Be aware 
of today's climate of extreme concern in protecting children in 
day care situations. 

Your playground will require a fenced-in area. Drive around 
and look at the playground equipment in the playyards of your 
public schools and at day care centers in your area. You should 
have the basic sandboxes, swings, slides and jungle gyms but in 
this area you can be creative and original, provided your 
equipment meets safety standards. 

Some states require that you have a registered nurse on the 
premises, but generally, the main things needed are medical 
information from the parents and a written procedure to follow in 
case of accident or illness. Basically, when a child is injured 
or be comes ill, you should take him to the nearest medical 
center, while another staff person gets in touch with the parents, 
and explains what happened. If the parent cannot be present at 
the medical center, all information should be passed on to him/ 
her immediately it is available. 

It's a good idea to have all your helpers indoctrinated with 
basic Red Cross first aid knowledge, and have a well-equipped 
first aid kit on the premises. As for any requirements relative 
to a full-time nurse, you should be able to hire registered nurses 
who are either not working or looking for extra income. You might 
be able to "hire the license" of a registered nurse. You pay a 
small fee to hang her license in your office, and she agrees to be 
available to serve your needs when you call. 

Most day care centers are currently charging from $35 to $65 
per child for a five day week, plus $5 to $10 more for the 
inclusion of breakfast, with another $l per meal when they serve 
an evening meal to the child. If you do not receive pay in 
advance, you can very quickly get "in the red." We strongly 
suggest setting up your financial structure and clients ' payment 
schedules with this in mind. 

By having your customers pay in advance, you'll eliminate a 
lot of bookkeeping chores and time, the problems of collections, 
and you'll have operating funds with which to run the business. A 
point to stress when asking for payment by the month, in advance, 
is that because monthly payments are based on only four weeks of 
day care, they'll be getting a week of free service every three 
months. 

Every profitable day care center requires a sharp manager or 
director. This person might be yourself, or someone you hire for 
the job. Regardless, this person will be the key to your success. 
The director should have an empathy with people, be an excellent 
judge of people, be sales oriented, and have an outgoing 
personality. As much as anything else, this person must have the 
ability to listen to, and really hear what other people are saying 
without the influence of preconceived opinions, or making snap 
decisions. This person has to have the success of your business 
in mind at all times, which means building and maintaining an 
impeccable reputation. 

Your director will be responsible for the hiring and 
supervision of your other help and the budgeting, scheduling and 
overall day-to-day operation of the business. It is imperative to 
the success of your business that you have the very best person 
you can get in this position, regardless of the cost. A good 
director for a day care center will command a salary equal to 
teachers in your public schools, plus fringe benefit allowances 
such as free enrollment for their children and perhaps medical and 
dental insurance if you choose to provide group coverage. 

When a prospective client calls to ask you about your 
services, you should explain how you operate, and emphasize your 
invitation for them to bring their child in so that the two of 
them can be taken for a tour of your facilities. 

Once in the center, your manager or director takes the parent 
and child on a tour, all the while explaining to parent the 
advantages of the centers structured learning and play program as 
compared with everyday run-of-the-mill baby-sitting services. 
It's important to have the child along, because as he sees the 
other children at play, he will be drawn to them, and this will 
greatly influence the parent in deciding that your center is the 
right place for his child. 

After the tour, steer the parent back into your administrative 
offices and propose enrollment of the child. Begin by asking 
where the parent works, what hours and if he or she ever has to 
work overtime. You then ascertain the hours they'll want to drop 
off and pick up their child. 

Strict procedures are absolutely essential regarding the pick- 
up of any child. Frightening as it may be to contemplate, we have 
all read accounts of strangers (or non-custodial parent) 
kidnapping a child. Printed forms must be provided, and 
authorization signatures must be compared when anyone other than 
the legal guardian takes a child from your care. You will learn 
these requirements from your licensing office. Our advice to you 
is to follow them meticulously. 

You should have a slickly printed, quality brochure showing 
your rates, your services, an outline of the curriculum, and a 
statement of your benefit goals for the children. 

Check with a legally qualified person about the need for a 
contract. The parent will probably simply fill out a 
questionnaire-file card giving address, place of employment, 
medical information about the child, and place he or she may be 
reached in case of emergency. 

Most day care centers accept all children between two and six 
years of age. And there are many nowadays who take infants from 
six weeks. Of course, your personnel in this situation will be 
thoroughly oriented in infant care, and you must ascertain if 
these babies are well when brought in to you. Otherwise, you put 
yourself in the position of "hospital" care instead of day care. 

Generally, children aren't allowed to bring toys from home. 
You may want to allow the children to bring their own blanket from 
home for nap time, but if you allowed toys from home you would be 
opening "Pandora's box" of possible problems relating to sharing 
and ownership. In light of this, you will want a full complement 
of appropriate toys and play items in your center. 

If you decide to include short-term baby-sitting services, a 
good idea would be to include within the layout of your facilities 
a small one-bedroom apartment for a live-in person or couple. An 
older retired couple would be ideal, with the husband serving also 
as maintenance and handy-man. 

Around-the-clock baby-sitting services, in addition to your 
regular day care center, can add tremendous and immediate cash- 
flow profits to your business, but correspondingly increase your 
payroll for qualified personnel. Such services would enable the 
parents to drop their children off in the evening, and leave them 
around the clock or over the weekend. There will generally be no 
need for any planned program because these children will be 
sleeping during most of the time they're in your care. 

As you establish the image and reputation of your day care 
center, the parents in your area will be much more inclined to 
leave their children with you for baby-sitting duties. And because 
you are considered tops in the area of responsibility , you'll be 
able to charge the very top rate of the baby-sitting fee 
structure. Keep current with fees charged by other quality 
businesses similar to yours. 

The demand for unplanned or emergency baby-sitting services is 
very large. Not too many day care centers are aware of this 
potential for extra profits yet, but the ones that are find that 
their incomes can increase by 30 percent or more! We certainly 
recommend consideration of this idea for anyone involved in a day 
care service. 

Another area that could mean enhanced profits for you is bus 
or van pick-up service for the children. Of course, this would 
increase your operating costs (and consequently your fees) but the 
convenience of pick-up is gaining in popularity. You'll need a 
custodian for indoor and outdoor cleanup, and if you have access 
to a bus or van, he could be assigned additional duties as the 
driver. Some day care centers offering pick-up service for their 
children contract with local transportation services to provide 
this service. Be certain of the driving experience of your driver 
if you contract for this transportation service. 

Most day care centers open with very little fanfare or 
advertising. Generally, even without advertising most are 
reporting 90 percent capacity enrollment within six months. 

With grand opening fanfare, and a strong advertising campaign, 
you should be able to be at 90 percent capacity within your first 
six weeks. In an area where a severe short age of day care 
facilities exists, and with the right advertising and promotion, 
even sooner. 

Your first step should be the door-to-door, hand-out 
distribution of a quality informative brochure. To save on costs, 
you can hire students attending advertising classes in your area 
colleges or even a free lance advertising copywriter to help you 
with the design and writing of this brochure. However, the bottom 
line should be that you have a good commercial printer do the 
printing on the best paper you can afford. All of this has to do 
with the image you're wanting to create, and the quality of the 
service the "buyers" feel they're getting for the prices you are 
charging. Don't skimp on your brochure - you're aiming at people 
looking for the best place for their children. 

You should place at least a two-column by four-inch grand 
opening display ad in your local newspapers. At the same time, 
you should place similar ads in the local magazines and other 
publications catering to the working mother. Send along a group 
picture of your staff, and a story about your services with your 
advertising order. Phone the editors at your local newspapers, 
radio and TV stations and invite them out to your grand opening. 

Be sure to place a "service information" ad in the yellow 
pages of your telephone directory. This should be the largest size 
you can afford. And remember that you need to make contact for a 
yellow page ad well in advance of the release date of the 
directory. 

After your grand opening, and until you attain full capacity, 
continue to hand out your brochures at the entrances to the office 
buildings which house companies employing working mothers. 
Continue to run ads in your local newspaper, although these ads 
needn't be quite as large or run as regularly as the grand opening 
ads. Run an ad in the classified section describing your baby- 
sitting services. 

At your grand opening, offer free refreshments for everyone. 
Coffee and punch for the adults, with juice for the children, and 
cookies for everyone. You should have members of your staff 
circulating among the parents to answer any questions and hand out 
brochures about the center. 

You can begin small, and expand in stages with your profits. 
However, you must draw up a long-range plan detailing exactly what 
you intend to do, and each milestone you'll have to pass before 
proceeding to your next goal. In this way, you can succeed and 
attain not only the ultimate business, but also the kind of 
profits planned at the start. 

The basic, and bottom line secret to success with your own day 
care center will be your ability to hold your costs in line while 
achieving maximum capacity enrollment. You've got the plan, and 
my best wishes for success! 
_________________________________________________________________ 
End of Report.