creche business plan south africa

The Daycare Business Plan Blueprint (Examples + Template)

April 14, 2022

Adam Hoeksema

Starting a daycare business can be a daunting task. There are so many things to think about and plan for. You need to find the perfect location, get the right licenses and permits, hire qualified staff, and, most importantly, create a daycare business plan. 

Creating a daycare business plan is one of the most important steps in starting your business. A well-thought-out business plan will help you get funding, attract investors, and operate your business effectively. 

The bad news is that there is a lot of advice out there on writing a business plan. With so much information and tons of daycare business plan examples to choose from, it can be overwhelming to know where to start. 

The good news is, we've got you covered. In this article, we'll give you a comprehensive guide on how to write a daycare business plan. We will also provide some examples and a free daycare business plan template to get you started. 

But First...Is a Daycare a Good Business to Start? 

Before we talk about how to create a daycare business plan, let's first answer the question: is starting a daycare a good business to get into? 

The answer is a resounding yes! The daycare industry is growing rapidly. It is one of the few businesses that are not only recession-proof but also thrives in uncertain economic times. 

According to the National Association of Child Care Resource & Referral Agencies (NACCRRA), the demand for child care services has increased by 26% over the last decade. This demand is only expected to grow in the coming years. 

When it comes to profitability, the daycare industry is very attractive. According to IBISWorld , the average profit margin for a daycare business is around 15%. That's higher than the average for most other industries! 

If you're thinking about starting a daycare business, know that you are getting into a very profitable and in-demand industry. Now let's talk about how to write a daycare business plan that will help you start and grow your business successfully.

How to Create a Daycare Business Plan 

A daycare business plan is as simple as a word document with the following sections:

• Business Description
• Market Analysis

Business Model

• Location and Facility
• Marketing Plan
• Financial Plan

Executive Summary

This article will provide context of what to include in each section of your daycare business plan. As you work on writing your business plan, you will want to grab our daycare financial projection template as well in order to complete the financial plan section.

Your daycare business plan should be an elevator pitch in itself. It should be attractive to potential partners and investors. Basically, it should give them a clear idea of your business, where it is located, what services you offer, who your target market is, and how you plan to make money. 

Creating a daycare business plan doesn't have to be complicated. In fact, the cheapest and easiest approach is to simply start with a blank word document and work through each of the above sections, it can be pretty easy. Here is a step-by-step guide on how to create a daycare business plan: 

Create a Compelling Business Description

Your daycare business's unique selling point (USP) should be the first thing you include in your business plan. What is it that makes your daycare center different from all the others? 

This description should be the foundation of your marketing efforts as well.

There are a few questions you should answer in your company description. They include:

What's your Curriculum Based On?

Potential investors, partners, and even customers will be interested in knowing what your curriculum is based on. This will help them understand the environment children will be in a while under your care. 

When describing your curriculum, make sure to include:

• What age ranges do you cater for?
• The type of care you offer (full-time, part-time, drop-in) 
• Your educational philosophy 
• The activities and programs you offer 

For example, if your daycare is unique by offering a Montessori curriculum, you will want to highlight that.  In fact, you can learn more about how to start a Montessori program here . 

How Big is Your Facility? 

The size of your facility will say a lot about the type of operation you're running. Are you a small, home-based daycare or a large center with multiple classrooms? 

This section of your business plan may include: 

• A floor plan of your facility 
• The capacity of your facility 
• The number of employees you have 
• Type of equipment and furniture you have 

Who Is Your Target Market? 

You can't market to everyone, so you must identify your target market. This will help you focus your marketing efforts and ensure that you're reaching the right people. 

Below is a daycare business plan example that shows how your business description should be:

“ABC Daycare is a small, home-based daycare located in San Francisco, CA. We cater to children aged 0-12 years old and offer full-time, part-time, and drop-in care. 

Our curriculum is based on the Reggio Emilia approach, emphasizing hands-on learning and collaboration. Activities and programs include arts and crafts, music, and outdoor play. 

Our facility can accommodate up to 12 children at a time. We have a staff of four employees who are all CPR and First Aid certified. 

Our target market is working parents in the city who need quality child care but can't afford the rates of larger daycare centers.  We've created an affordable subscription-based pricing model for our target market to fulfill the demand. We generate revenue through monthly subscriptions and have low operating costs due to our small size. 

Our suppliers are local businesses that provide us with food, toys, and other supplies.” 

Do a Thorough Market Analysis

After writing a compelling description of your business, you need to do a thorough marketing analysis. This analysis will help you determine your target market, what type of advertising and promotion will work best, and how to price your services. 

You should also research the competition and see what they are doing right and wrong. This information will be invaluable as you create your daycare business plan.

Keep these things in mind when doing a market analysis:

The Size of Your Market

This is determined by the number of potential customers in your area who need or want your services. 

For example, if you live in a small town with only a few thousand people, there may not be enough demand to support a large daycare facility. 

On the other hand, if you live in a city with hundreds of thousands of people, there may be room for multiple daycare facilities. 

Your target market is the segment of the population that is most likely to use your services. This includes factors like age, income, education, and location. 

After you've identified your target market, you need to show how you plan on fulfilling the demand. This is where your business model comes in. 

Your business model is a detailed description of how your daycare will operate daily. It should include: 

• How do you plan on acquiring customers? 
• What are your pricing strategies? 
• How will you generate revenue? 
• What are your operating costs? 
• Who are your suppliers? 

Your business model should be detailed and easy to understand. It should also be realistic and achievable. 

Here is a daycare business plan example of a business model for a small daycare center: 

“The daycare will be open Monday through Friday from six in the morning to six at night. We will offer care for children ages six weeks to twelve years old. 

Our rates will be $50 per week for one child and $40 per week for each additional child from the same family. We will offer a discount of $20 per week for families who enroll their children for an entire year. 

We will generate revenue by charging weekly rates for our services. Our operating costs will include rent, utilities, supplies, and salaries for our employees. Also, we will acquire customers through online advertising and word-of-mouth.” 

As you can see, a business model is a detailed description of how your business will operate. It's essential to have one in place before promoting and selling your services. 

One thing you should not forget to include in your daycare business plan is the location of your business and your rental agreement. If you are renting a space, including the terms of your agreement and how long you have the space. If you are purchasing a property, include information on the property, such as square footage and any special features that will help your business stand out. 

This daycare business plan example shows you how to include this vital information: 

“The daycare will be located at 123 Main Street in a commercial space currently leased by the owner. The lease agreement is for three years with an option to renew for an additional three years. The monthly rent is $2000, and the security deposit is $3000. 

The daycare will have exclusive use of the main floor, including a large open play area, a small kitchen, two bathrooms, and four classrooms. The daycare will also have access to the outdoor playground.

80% of our space will be used for childcare, with the other 20% used for our administrative offices and staff lounge. 

We have chosen this location because it is close to several residential neighborhoods and has easy access to public transportation. The space is also large enough to accommodate our future growth.” 

There are many daycare business plan templates you can use to help you get started. This is a basic outline of what should be included.

Daycare Marketing Plan

Most daycare business plan templates will include a section for your marketing plan. Most people overlook the marketing aspect of their business, but it is one of the most important pieces of your puzzle. 

In your business plan, you need to outline your target market, your marketing strategies, and how you plan on executing those strategies. 

You also need to set aside a budget for your marketing efforts. Many people make the mistake of thinking that they don't need to spend money on marketing, but that couldn't be further from the truth. 

The following daycare business plan example shows you how you should describe your marketing efforts:

"Our target market is working for families with children between six weeks and five years old. We will reach our target market through online and offline marketing efforts. 

Some of the offline marketing strategies we will use include print advertising, flyers, and word-of-mouth referrals. We will use a mix of SEO, content marketing, and social media for online marketing. 

We have set aside a budget of $500 per month for our marketing efforts."

As you can see from the example above, your marketing plan should be clear, concise, and to the point. Don't forget to include a budget!

Daycare Financial Plan

Your business plan should include a financial plan section. This is where you'll lay out how much money you need to start or grow your business. Be specific and include dollar amounts. If you're seeking a loan, including information on how much you're requesting and how you'll use the funds.

You should also include a detailed budget in your business plan. Your budget should include all of your projected income and expenses for at least the first year of operation. Creating a budget will help you get a clear picture of what it will cost to start and operate your business.

This section should include projected costs for:

• Rent or mortgage payments
• Advertising and marketing
• Operating expenses such as utilities, supplies, and more. 

Startup costs are another vital item to include in your business plan. This is the money you need to purchase equipment, furniture, or any other items to get your business up and running.

If you plan to secure a loan, your lender will want to see a detailed business plan with information on how you plan to use the loan funds. Ensure you include this information in your business plan to increase your chances of securing funding.

If you're seeking funding from investors, you'll need to include information on how they will be compensated. This is typically done through equity, a percentage ownership stake in your business. 

For example, if you seek $100,000 in funding and offer a 20% equity stake, the investor will own 20% of your business. 

Make sure you use a daycare business plan template that includes a section on funding to ensure you include all the necessary information. If you’re planning to get a loan or seek investment, you’re going to need full financial projections. Our daycare financial model will provide up to 5 years of projected income statements, cash flow and balance sheet forecasts.

Next I want to answer some key financial questions for you as you consider how to forecast your daycare financials. I am going to hit on:

• Daycare Startup Costs
• Daycare Revenue 
• Daycare Facility Operating Expenses
• Daycare Profitability

Let’s dive into some key questions. 

How much does it cost to start a daycare? 

It costs between $10,000 and $50,000 to start an in-home daycare business according to Bizfluent . 

It costs between $59,000 and $3 million dollars to start a daycare facility according to Bizfluent . 

So obviously this is a huge range in startup costs.  The main thing that will determine your startup costs is your daycare facility.  Depending on how large your daycare is, whether you are buying, building, or leasing the space, and how much renovation needs to be done, your startup costs can vary drastically.  

Some tips to help you estimate a cost of a daycare facility:

• A daycare facility should have 35 square feet of open floor space indoors per child. 
• So if you wanted a facility that could care for 100 children you would need 3,500 square feet of indoor space for children, plus additional space for offices, kitchen, bathrooms, etc.  Let’s assume that you would need at least 5,000 square feet of space for a daycare facility that served 100 children.  
• A daycare center would cost at least $295 per square foot to construct in the U.S. based on data from Levelset . 
• Constructing a new 5,000 square foot daycare center would likely cost at least $1,475,000 based on $295 per square foot.  
• Now you might not be constructing new, rather you might rent an existing facility which could require renovations.  You will need to get a specific quote for the specific renovations that you need for your space. 

How much revenue can a daycare business make?

A daycare facility can generate $17,680 in revenue per year per child according to Zippia .  

A daycare business with 100 children can generate over $1.75 million per year in annual revenue based on our average revenue per child of $17,680. 

How much does daycare cost?

The average cost of daycare is $17,680 per year, per child in the U.S. according to Zippia . 

This means that the average monthly cost of daycare in the U.S. is roughly $1,475.

What is the typical child to staff ratio for a daycare? 

The typical child to staff ratios for a daycare are:

• 1 adult staff for every 4 infants (age 0 to 12 months)
• 1 adult staff for every 6 toddlers (age 1 to 3 years)
• 1 adult staff for every 10 pre schoolers (age 3 to 5 years)
• 1 adult staff for every 12 school aged children (5+ years old)

Source - Childcare.gov

These ratios will help you estimate how many staff members you will need.  Our financial projection template makes this easy.  Just enter in your ratios and the number of children you expect to have in each age group and the model will automatically calculate the number of staff required to maintain your ratios.  See the input daycare staffing table below:

What are the typical operating costs for a daycare? 

Your largest operating expense for a daycare facility is likely to be your rent. 

It should cost between $20 and $30 per square foot to rent a daycare center space based on available spaces on Loopnet . 

Other operating costs for a daycare center include:

You can see how you can enter in your operating costs into our financial model below:

How much profit can a daycare make? 

The average daycare profit margin is 6.5% according to Daycare Business Boss . 

Once you complete your projections you will want to take a look at our At a Glance tab to make sure that your projected profit margins aren’t way out of line with the industry norms.  You can find projected profit margins for your daycare below:

This is an important aspect that you may not find in most daycare business plan templates, but it's still essential. An appendix includes any additional information to help you understand your business plan. This might include things like your:

• Business licenses 
• Insurance policy 
• Lease agreement 
• Sample contracts 
• Staff bios 

This section adds credibility to your daycare business plan and shows that you've done your homework. Including all of the necessary details in your appendix will give investors peace of mind and show that you're serious about starting a daycare center.

An executive summary is a brief overview of your business plan and is often considered the most important section. It should be two pages long, with a clear description of your business, your goals, and why you will achieve them.

There are several key elements to include in your executive summary:

• Business Name: This is the name you have chosen for your business.
• Location: Include the city, state, and country where your business will be located.
• Business description: Describe what type of business you will be operating.
• Target market : This is the group of people you will be targeting as customers.
• Competition: Who are your competitors, and how will you compete with them?
• Product or service : What product or service will you be offering?
• Sales and marketing: How will you generate sales?
• Financials: Include a five-year income statement, balance sheet, and cash flow statement.
• Management team: Introduce your management team and their experience.
• Exit strategy : This is the plan for how you will eventually sell or otherwise exit the business in case you decide to retire or move on to other projects.

The executive summary is the most crucial section of your business plan because it gives investors and lenders a quick overview of your company and its prospects. Be sure to include all of the key elements listed above, and keep it under two pages in length.

What Are The Benefits of Creating a Daycare Business Plan?

Research shows that a business plan helps business owners make better decisions, turn abstract goals into tangible objectives, and track progress over time. But what does this mean for those who want to open a daycare? 

Creating a business plan forces you to think through every step of starting your company. It's a valuable exercise that can save you time and money in the long run. Even if you don't end up following your business plan to a tee, the process of writing it will help you better understand your business and what needs to be done to make it successful. 

There are many benefits to creating a daycare business plan, including: 

Gives You a Roadmap to Follow

As with any journey, it's always helpful to have a map. A business plan is that map for your daycare business. It will give you a clear idea of where you want to go and how you can get there. 

Helps You Secure Funding

A business plan is essential if you're looking for investors or loans. It will show potential lenders and investors that you've put thought into your business and have a solid strategy for making it successful. 

Ensures Your Daycare Business is Feasible

When you're starting a business, it's easy to get caught up in the excitement and overlook potential problems. A business plan forces you to take a step back and assess whether your business is truly viable. It also helps you identify any areas where additional research is needed. 

Final Thoughts

A daycare business plan is a valuable tool to help you make your business successful. 

It is worth noting that your business plan is not a one-time exercise but should be updated regularly as your business grows and changes. This document is meant to be a living document that evolves as your business does. 

If you're unsure where to start, there are plenty of resources available to help you, including daycare business plan examples online, books, and daycare business plan templates. 

You can also use our daycare projection template to get your financial plan ironed out and ready for your business plan.

The most important thing is just to get started. The sooner you create your business plan, the better prepared you will be for success.

You can get the Daycare Facility financial projection template here!

The template is simple to use and will save you loads of time while still producing professional looking daycare projections. ProjectionHub has helped more than 50,000 businesses create financial projections so you can be confident that you can do it too.

The daycare business projection template includes:

5 Year Daycare Facility Pro Forma Financial Statements

CPA Developed & Completely Customizable

Free Support & Projections Review

Compatible with Google Sheets

Free expert review of your completed projections

The template is easy to use and you do not need to be an excel wizard to fill it out. Editable cells are highlighted in blue, a video guide is included, and our team is available to answer any questions you have.

You can see the complete walkthrough and demonstration of the daycare business forecast template here:

Get the template today for just $79

If you have any questions before purchasing, please feel free to begin a live chat or email us at [email protected]

100% money back guarantee in accordance with our terms and conditions

‍ Photo by Pixabay

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 40,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

Other Stories to Check out

8 ways to enhance your chances of getting approved for an sba loan.

Learn practical steps to increase your SBA loan approval odds. This guide offers 8 straightforward strategies from an experienced SBA loan officer.

Your Guide to the SBA Loan Application Process

Start your SBA loan application with confidence using ProjectionHub's comprehensive, free SBA Loan Application Checklist. Discover essential tips and resources from experienced professionals to streamline your loan process and enhance your approval chances.

How To Start a Self-Storage Unit Business and How Much Will it Make?

Self Storage facilities seem to be popping up all over the place recently and there's no slow down in sight. Follow this step by step to understand the basics of how to get your self storage business started, how much it will cost, and how much you stand to make!

Have some questions? Let us know and we'll be in touch.

How To Open A Creche In South Africa?

Quick Summary Opening a creche in South Africa requires registering your facility with the provincial government or municipal office, complying with national norms and standards, and providing a safe and inclusive environment for children. This comprehensive guide outlines the step-by-step process, necessary qualifications and training, tips for successful operation, and highlights the importance of continuous assessment visits to ensure compliance. By following these guidelines, you can navigate the registration process and create a nurturing space for children in South Africa.

Introduction

Opening a creche in South Africa can be a rewarding venture for those passionate about early childhood development. However, it is important to understand the requirements and steps involved in the process. This article will provide a comprehensive guide on how to open a creche in South Africa, including the necessary registrations, qualifications, and tips for successful operation.

Understanding the Requirements for Opening a Creche in South Africa

Opening a creche in South Africa requires compliance with certain requirements and regulations. Here are the key factors to consider:

Registering your early childhood development (ECD) facility

In order to operate a creche, you need to register your facility with the provincial government or municipal office. This registration process ensures that your creche meets the necessary standards and guidelines set by the authorities.

Compliance with national norms and standards

Your creche must adhere to the Guidelines for Early Childhood Development Centres and comply with national norms and standards. These guidelines cover various aspects such as safety, hygiene, space, and care for children.

Providing a safe environment

Creating a safe environment is crucial for a creche. This includes ensuring proper care for sick children, adequate space and ventilation, safe drinking water, hygienic toilet facilities, safe storage, and refuse disposal services. Additionally, there should be a designated area for food preparation that meets hygienic standards.

Accessibility and facilities for children with disabilities or chronic illnesses

If your creche caters to children with disabilities or chronic illnesses, it must be accessible to them and provide facilities that meet their specific needs. This may include ramps, specialized equipment, and trained staff to support their care and development.

Training for staff

It is important to provide training for your creche staff to ensure they have the necessary skills and knowledge to care for children effectively. This may include training on child development, health and safety, first aid, and inclusive practices for children with special needs.

Step-by-Step Guide to Opening a Creche in South Africa

1. completing form 11 and gathering necessary documents.

• Personal details, facility’s address, number of children to be accommodated, qualifications and experience, description of programs and services offered
• Business plan, constitution, approved building plans, emergency plan, clearance certificate, and health certificate

2. Submitting the application and documents

• Where to submit the application
• Timeline for submission

3. Continuous assessment visits by officials

• Department of Social Development and municipality officials conducting visits
• Purpose of the visits
• Importance of compliance during the assessment process

4. Registration process timeline and cost

• Estimated time for the registration process
• No cost for the registration service

Qualifications and Training for Opening a Creche in South Africa

Opening a creche in South Africa requires certain qualifications and ongoing training for staff to ensure the provision of quality early childhood development (ECD) services. Here are the key aspects to consider:

Required Qualifications for Opening a Creche

While there are no specific qualifications mandated by law for opening a creche in South Africa, having relevant qualifications can greatly enhance the credibility and effectiveness of your ECD facility. Some recommended qualifications include:

• A National Certificate in ECD, which can be obtained through accredited training providers.
• A Diploma or Degree in ECD or a related field, such as Early Childhood Education or Child Psychology.
• First Aid and CPR certification to ensure the safety and well-being of the children in your care.

Having qualified staff members with the necessary knowledge and skills can contribute to the overall development and growth of the children attending your creche.

Importance of Ongoing Training for Staff

Continuous professional development is crucial for the staff working in a creche. Ongoing training helps them stay updated with the latest research, best practices, and regulations in the field of early childhood development. It also enhances their ability to provide quality care and education to the children.

Training programs can cover various areas, including:

• Child development and learning theories
• Curriculum planning and implementation
• Health and safety regulations
• Behavior management strategies
• Special needs education
• Parent and community engagement

By investing in the professional development of your staff, you can ensure that your creche maintains high standards and provides a nurturing environment for the children.

Resources and Organizations Offering Training Programs

There are several resources and organizations in South Africa that offer training programs for individuals interested in opening a creche or improving their skills in the ECD field. Some of these include:

• The Department of Social Development: They provide training opportunities and resources for ECD practitioners.
• Non-profit organizations: Organizations like the Early Learning Resource Unit (ELRU) and the National Association of Child Care Workers (NACCW) offer training programs and support for ECD practitioners.
• Accredited training providers: Various institutions and colleges offer ECD courses and qualifications, such as UNISA, Oxbridge Academy, and the College of Cape Town.

It is important to research and choose reputable training providers that align with your specific needs and goals for your creche.

By ensuring that you and your staff have the necessary qualifications and access to ongoing training, you can create a creche that provides high-quality care and education for young children in South Africa.

Tips for Successfully Operating a Creche in South Africa

Operating a creche in South Africa requires more than just meeting the registration requirements. To ensure the success of your creche, consider implementing the following tips:

Creating a Safe and Nurturing Environment for Children

The safety and well-being of the children should be your top priority. Take the necessary steps to create a safe and nurturing environment, including:

• Conducting regular safety inspections to identify and address any potential hazards
• Implementing strict security measures to prevent unauthorized access
• Providing age-appropriate toys, equipment, and materials
• Ensuring proper supervision at all times

Developing Age-Appropriate Programs and Activities

Designing age-appropriate programs and activities is crucial for the development and growth of the children in your creche. Consider the following:

• Tailoring activities to suit the different age groups in your creche
• Incorporating a variety of learning experiences, including play-based and hands-on activities
• Providing opportunities for physical, cognitive, social, and emotional development
• Encouraging creativity and imagination through art, music, and storytelling

Building Strong Relationships with Parents and Guardians

Building strong relationships with parents and guardians is essential for the success of your creche. Foster open communication and collaboration by:

• Regularly updating parents on their child’s progress and development
• Organizing parent-teacher meetings and workshops
• Encouraging parents to actively participate in their child’s learning journey
• Addressing any concerns or issues promptly and professionally

Ensuring Compliance with Regulations and Standards

Compliance with regulations and standards is crucial to maintain the quality and reputation of your creche. Stay updated with the latest guidelines and requirements, including:

• Regularly reviewing and updating policies and procedures
• Conducting internal audits to ensure compliance
• Keeping accurate records and documentation
• Participating in external inspections and assessments

Continuous Professional Development for Staff

Investing in the professional development of your staff is key to providing high-quality care and education. Consider the following:

• Providing ongoing training opportunities to enhance skills and knowledge
• Encouraging staff to pursue further qualifications and certifications
• Creating a supportive and collaborative work environment
• Regularly evaluating and providing feedback on performance
• https://www.gov.za/services/child-care/register-ecd-partial-care-facilities
• https://www.matric.co.za/what-qualifications-do-i-need-to-open-a-creche-in-south-africa/
• https://togetherwepass.co.za/how-to-start-a-creche-at-home/

Possible Related Questions:

Latest Questions Answered

Privacy Policy | Terms & Conditions | Cookie Policy | Sitemap

Copyright © 2024 Askly.co.za, All Rights Reserved

Starting an ECD Day Care Centre Business Plan (PDF)

Early childhood development (ECD) refers to that stage where young children are taught or cared for by people other than their family, or in settings outside of the home. This is typically before the age of normal schooling. Day care refers to the daytime supervision of children. Thus, an ECD day care business focuses on the daytime care and supervision of young children who have not yet reached normal schooling age.  A day care business is a very lucrative and profitable business venture. In the past it was common for parents to stay at home with their children during the day, therefore Early Child Development (ECD) day care centers were seen as more of a luxury than a necessity. Today, only one a few children stay at home with their parents during the day. Challenging economic and financial times have prompted many parents to seek employment. In this regard, in most homes, both parents rarely have time to spend with their toddlers. This has led to increased demand for childcare services. Therefore, the ECD day care business is one of the most lucrative in the world today. With parents becoming busier and children being born every day, it is unlikely that you will struggle to find clients for your preschool business. This article will outline how to start the ECD Day Care business, and the day care business plan – PDF, Word and Excel.

Market Research

While childcare services are in high demand, it is important to note that there are many other daycare centers already in existence. Thus you have to carry out a market research. This includes assessing the demand and supply of day care centers in your area. As part of your market research, you should interview your potential customers i.e. talk to several parents and families, asking what kind of day care services they could benefit from. Identify the day care center businesses which are already operating in your area i.e. your competitors. Note their strengths and weaknesses, and plan on how you can distinguish yourself from the competition. Ways of distinguishing your business include the kind of facilities at your daycare center, and the nature & quality of services which you offer. Most importantly you require a detailed day care business plan before you venture into this business.

Business Model

You can charge your services by the hour. This is because some parents or guardians might not leave their children there daily. The other approach fits well for those who leave their children daily. You can charge them as if you are charging school fees. It could be weekly, fortnightly, monthly, or even quarterly. Parents or guardians can pay more for other specialist services you might choose to offer. You can extend to product sales for things like children toys, books, clothing, and the like.

Location and Premises for a Day Care

Obviously the ECD Day care centre should be located close to your target market. This is usually in the residential areas where your target market resides. One of the biggest challenges to overcome when starting a day care centre is find suitable premises for it. Suitable sites may be difficult to find or they maybe just too expensive. You have to make a decision on the size and type of premises that you require. This will be determined by the intended size and services of your ECD Day care centre. Usually you will have to rent an already existing building, and renovate it till its suitable to be a day care centre. Sufficient parking should be provided for staff and visitors. The premises should have a large playground for the kids. Take into consideration the impact of playground noise on the neighbourhood. Consider impact of vehicles and increased traffic especially with respect to drop off and pickup of children. Ideally the front entrance should be equipped with a security system and/or intercom. The structure and layout of the building should be such that it does not pose difficulties in the supervision of children or danger to children. The premise you settle on should have sufficient square footage for children to play, eat and sleep. Also, it should be big enough to make it easy to separate kids into different age groups. Also consider the space that will house the toys, furniture, and storage. The indoor space should be large enough to accommodate the desired number of children. The costs of acquiring or renting the premises should be included in the business plan for ECD Centre.

Competitive Analysis

Context and associated circumstances matter.

The ECD day care business’ competition dynamics depends on the context in question. Some locations do not have any ECD day care centers. Some locations have one or several. Find out where existing ECD day care centers are located. Some are located in central business districts, some at the peripheries of central business districts. Other ECD day care centers are located within residential neighbourhoods. The point here is that ECD day care centers can be situated anywhere. It is contextual and premised on wide-ranging circumstances. To not do guesswork you must find out who your competitors are, if any. It might not be surprising to find that you could be breaking new ground in a particular location.

Figuring Out How To Offer A Superior Value Proposition

This brings us to another competition dynamic. Why would parents or guardians prefer to find someone to babysit as opposed to using an ECD day care center? A look into that can help you understand what you would need to do to make your ECD day care center competitive. If there are indeed direct competitor ECD day care centers close-by, study them. Find out about their services, the prices, operating hours, the types of clients they serve, their location and why that location, amongst others. There is never a shortage of ways through which you can differentiate your ECD day care business.

There is a lot of equipment which is required for a preschool. This includes various types of play equipment (for both indoors and outdoors), safety equipment, computers, kitchen equipment, furniture, education equipment and cleaning equipment. Other requirements include toys, children books, arts and crafts materials. There is also need of safety devices (e.g., first-aid kits, carbon-monoxide detectors, smoke alarms, fire extinguishers, child-proofing supplies, etc.). If you decide to offer transport services to the children, you will have to purchase a vehicle. The preschool business plan should cater for the costs of purchasing the furniture and equipment.

Permits/Licenses, Insurance & Business Bank Account

Permits or licenses.

Get the ECD day care business formally registered as a business or company. You might have to get it registered with an applicable regulatory board. This will depend on the laws that apply to your specific region. In some places, an ECD day care business must get registered with a regulatory education board. You have to find out what applies to your context. You must also check with your respective local authorities. They might need to ratify and formalize your operations by giving you an operating license. At the end of the day you must ensure you are licensed properly or you have all the requisite permits. Your personnel that handle the children also need to be properly certified.

Insurance & Business Bank Account

You are dealing with young children here; your ECD day care business must be comprehensively covered. Insurance cover must cater for property and the children as well. You would not want a situation where something happens and you have no insurance cover. Not only will it lead to material or human damage or loss; you can end up in jail. Protect your personal monies from any liabilities that may stem from the ECD day care business. You can do this by opening a business bank account for your ECD day care business. That way the finances will not mix.

Capital for ECD Day Care Centre

One of the most important factors to consider when starting a business is seed capital. For a day care business, you will need to have a substantial amount of money. This money will cater for the premise to be rented, the furniture and equipment. Also, you will need to draft a budget for your business. When drafting a budget be sure to reserve a certain amount of money for future monetary needs. When drafting a budget, it is important to consider how many employees you will be hiring and whether you will be renting space or using already existing space either in your house or in your commercial premise. Also, calculate the amount of money you will require to spend on furniture, toys and other equipment. The amount of money will vary depending on the nature and size of your daycare center. That’s it’s very important to have a good and detailed daycare business plan.

The expenses for operating daycare center business include rent, wages, food, transport, advertising, licencing, insurance, food and utility fees. So the expenses of running a daycare center are quite substantial; however, so are the profits that accrue from your business. Your revenue will come from the money which the customers pay for their children to come to your ECD day care center. When you follow all the requisite legal avenues without cutting corners, you will be able to recoup your investment within a short period of time.

Staff & Management

To be successful as an ECD day care business owner, it is important that you hire qualified and well-trained staff. When hiring staff for your business, it is important to outline a clear criterion to follow. This criterion may include experience working with children, education background, and a clean criminal record. Another important tip is to ensure that each one of your clients signs a contract. This contract will outline what services your business will be offering as well as the fee. The contract should also include a policy statement. The required staff depends on the size of the early childhood education centre. You need child minders, teachers, assistants, kitchen staff, security and logistics personnel. The ECD Day Care Centre business plan should cater for the salaries and wages costs.

As with any other business, it is important to maintain books of accounts that show clearly how much money you spend on running the business. The financial statements should also indicate how much profits your business makes. Also, do not mix business and personal funds.

Marketing Strategies

Be visible online.

If you want your ECD day care business to be quickly discovered, be visible online. It might seem unnecessary but putting up a website for your ECD day care business is paramount. There are countless people who will search for such businesses online. Set up social media accounts for the ECD day care business as well. Include clear and actionable details on all your online content. Include an up to date Google Maps location of the place. Include high definition visuals outlining the facility, services, and prices. Always post regular and engaging content.

Inspire, Solicit, And Propagate User-Generated Content

When it comes to the ECD day care business, word of mouth and referrals are the secret. Often time parents or guardians will only leave their children at ECD day care centers recommended by others. This is usually people who would have used (or use) the ECD day care center. People whose word they trust. This means you can spread brand awareness by inspiring your clients to make positive reviews and testimonials. By propagating such user-generated content you increase the likelihood of more clients who value such social proofs.

Approach Parent Or Guardian Communities

You can push your marketing by identifying parent or guardian communities. For instance, you can tap into residents associations. You can tap into employee groupings. You can even tap into business people or entrepreneur groupings. You can do this offline or online. You can sell you ECD day care business to such communities and generate substantial leads.

There are many reasons why starting a daycare business is a hugely rewarding venture. The demand for child care services is on the increase. The number of women in their childbearing years joining the labor force has increased and will continue to increase. Every year millions of children are being born. Thus your day care business is assured of customers. To attract more clients through referrals, ensure that all children in your day care are well cared for nurtured and play in a safe environment. The primary customers of your day care center will be working mothers and small families that want a place where they can leave their children. A proper marketing strategy should be included in your day care centre business plan.

Working with children can be stressful. However, given that children are usually honest, working with them can be a breath of fresh air especially if you have worked with adults in the past. Therefore, apart from being a highly lucrative business venture, starting a preschool business is also emotionally rewarding. This is especially true since you get to learn and understand human development and different human personalities. Starting a daycare business is challenging; however, this is something that applies to all businesses. Additionally, you will recover the money you invest when starting the business once your ECD center is up and running.

Keys To Profitability

Reputation is important in this line of business. Clients want peace of mind knowing their children are safe. Many security risks these days. They also want an ECD day care center that provides holistic services. Your ECD day care business must provide a better alternative to a client just finding someone to babysit at home. You have to sell and provide benefits and convenience. Cost management is important since enrolment is typically not that big. You need to keep your operating costs at bay to maximize on profits. Inspire customer loyalty and reward referrals to enjoy business growth.

Ascertain the presence of a market before starting an ECD day care business. Not every place is ideal for an ECD day care center. Find cheaper ways of starting it e.g. renting or converting your or part of your house. Find out as much as you can from target parents or guardians prior.

Pre-Written Day Care Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the day care business, we encourage you to purchase our well-researched and comprehensive ECD centre business plan. We introduced the business plans after discovering that many were venturing into the preschool business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global day care business plan will make it easier for you to launch and run your day care business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a day care centre. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the ECD business.

Uses of the Preschool Business Plan (PDF, Word And Excel)

The day care business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your ECD Day care centre business
• As a day care business proposal
• Assessing profitability of the preschool business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Day Care Business Plan (PDF, Word And Excel)

The business plan for ECD Centre includes, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the day care business fail, so that you can avoid their mistakes
• Ways to raise capital to start your day care business

The day care business plan package consists of 4 files

• ECD Day Care Centre Business Plan – PDF file (Comprehensive Version – 81 Pages)
• ECD Day Care Business Plan – Editable Word File (Comprehensive Version – 81 Pages)
• ECD Day Care Centre Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 46 pages)
• ECD Day Care Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of students, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Day Care Business Plan (PDF)

Testimonial 6

I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Testimonial 8

Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Testimonial 7

I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Get the ECD Day Care Centre Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your day care business! Check out our collection of business plans  , and more business ideas .

Related Posts

Starting Food Truck Business Plan (PDF)

Starting Honey Beekeeping Business Plan (PDF)

Starting Pig Farming Business Plan (PDF)

Top 10 Profitable Business Ideas For Women

Join our mailing list to receive the latest posts and updates from our website.

You have Successfully Subscribed!

• Information
• Building Materials
• Job Salaries
• Livestock Farming
• New & Used Motorcycle
• Prices of Blenders

Mastering Your ECD Business Plan in South Africa: A Comprehensive Guide

As the demand for quality early childhood development (ECD) centers continues to grow in South Africa, starting an ECD business can be a lucrative venture. However, it also requires careful planning and strategy. In this comprehensive guide, we will provide insights and tips on how to master your ECD business plan in South Africa.

Understanding the Market Demand

The first step towards creating a successful ECD center is understanding the market demand. Conduct thorough research of your local area and identify gaps in service delivery. Consider aspects such as location, affordability, accessibility, and quality of education offered by existing providers.

Research Tips:

• Look at census data for population density and demographics
• Analyze income levels of residents within catchment area.
• Identify potential partners or stakeholders that can support your initiative.

Assessing Legal Requirements

Operating an ECD center involves legal requirements which need to be addressed before launching operations. These include:

Legal documents you’ll need :

• Registration with Department of Social Development (DSD)
• e.g., municipal health department clearance certificate
• fire safety compliance certificate
• zoning approval.

It is critical to obtain all required documentation before starting operations; otherwise, you risk penalties or even closure.

## Develop sound Financial Plan

A solid financial plan for your ECD center provides clarity on how much capital is needed upfront costs expected once operationalization commences like rent/lease or bond payments salaries for staff including administrative employees etc.

Financial Planning Steps:

• Determine startup costs which include construction expenses if new building purchases are made along with licensing fees paid out initially until profit begins rolling into from parents/guardians monthly fees collected over many years.
• Evaluate cash flow projections carefully project revenue streams attained during peak enrolment periods versus low seasons where enrolment may fall well below target figures
• Estimate financial viability and profitability potential by conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) of the sectoric factors affecting your operations.

Focus on Staffing

The quality of educators and support staff heavily impacts ECD center’s success. They should be qualified professionals able to guide children through their development journey while also providing supportive care.

Staffing Tips :

• Identify job roles needed from teaching to administrative positions.
• Conduct thorough background checks including verification of qualifications
• Develop training programs for upskilling staff members or hiring capable ones where required

Starting an ECD business in South Africa can be challenging but rewarding when done right. By analyzing market demand and legal requirements beforehand developing sound financial plans alongside focusing strongly on staffing needs provides a solid foundation for success over months/years ahead. Remember that consistency is key – successful implementation requires ongoing review of strategies implemented with frequent optimization along the way!

Note: The products listed above are subject to change based on their popularity over time, and may not necessarily reflect the current popular items on Aoprice’s website at all times

Certainly! Here are three popular FAQs along with their answers for ‘Mastering Your ECD Business Plan in South Africa: A Comprehensive Guide’:

Q: What is the purpose of a business plan for an Early Childhood Development (ECD) Center in South Africa? A: The purpose of a business plan for an ECD center is to provide a comprehensive roadmap that outlines the strategies, goals, and objectives required to operate and sustain a successful child care enterprise. It serves as a management tool that helps owners or managers make informed decisions, anticipate challenges, set priorities and allocate resources appropriately.

Q: What should be included in an ECD business plan? A: An ECD business plan should include important elements such as executive summary, description of services provided by the centre, market research findings including target market analysis and competition overview; marketing strategy outlining how you will promote your services online/offline; SWOT Analysis; financial projections (expenses/revenues); staffing needs & organizational structure.

Q: How long does it take to write an ECD business plan? A: The time taken to prepare an ECD Business Plan depends on various factors including content depth/complexity level, experience/knowledge about industry trends/markets etc. In most cases,it takes anywhere from 2-6 weeks to complete all sections/steps involved in creating this type of document.The process can be shorter if one has existing knowledge base on which they can leverage for faster progress,prioritize what matters & expedite tasks accordingly.

I hope these FAQs help clarify some common questions related to creating an effective early childhood development (ECD) business plan in South Africa.

Discover Exquisite Maserati Cars for Sale in South Africa

Upgrade your laundry routine: top machines for sale in south africa, related posts.

The Ultimate Guide to 4PL Logistics in South Africa

South African Biomedical Science Career Guide: Top Jobs in 2024

Boost Your Career: Top Master’s in Business Analytics Programs in South Africa

Instantly Approved: Get a Credit Card for Bad Credit in SA

Take Flight with Our Pilot Learnership Program in South Africa

Current Prices Of Canon Cameras In South Africa

Step-by-Step Guide: How to Register Your Business in South Africa

• CICADA Medical
• Tote bag supplier
• Union Chair
• 304 Stainless Steel
• Fishing License

© 2024 Aoprice - Find Cost of living in South Africa 2024.

Welcome Back!

Login to your account below

Remember Me

Retrieve your password

Please enter your username or email address to reset your password.

How to Start a Daycare in South Africa

With many parents going to work every day, starting a daycare business in South Africa is a profitable venture . Many parents are busy at work and need a safe and secure place to leave their babies. High birth rates in South Africa are also contributing to a high demand for daycare services in the country.

Daycare centers help children with early mental and emotional development, and that’s why many parents prefer them. 

Register a Daycare Business in South Africa

Before starting a daycare business, you need to register it first. You can register your business with a municipal office or the Social Development Department. You will be given Form 11 that you need to complete.

The registration process is free and can take up to 3 months for certificate issuance. You need to have a clearance certificate, original copies of approved buildings, and a health certificate.

You also need to provide the following details:

• Daycare fees structure
• Daycare plan
• Daycare business hours

Write a Daycare Business Plan

You need to plan your business before you can get started. You need to set tangible goals and plan your finances, procedures, and staffing. A business plan is important to keep you on track towards your goal. Your business plan should contain the following:

• Risk analysis
• Operational strategy
• Operational requirements
• Cost of starting a daycare business
• SWOT and PEST analysis
• Market analysis
• Industry analysis

Identify a Good Business Location and Premises

You need to find a good business location for your daycare business. It should be safe and secure for children and easily accessible by parents. Some of the best locations include those near residential areas and close to the homes of the target customers. You can also locate your daycare business near workplaces. A good daycare should have a playing field and maintain high cleanliness standards. 

Furniture and Equipment for a Daycare Business in South Africa

When starting a daycare business, you need to have the following equipment and furniture:

• Plastic chairs
• Outdoor playing equipment
• Kitchen equipment

Depending on the size of your business and available capital, you may also need a minibus. It is important for picking up and dropping off children from their homes to school and taking them back home.

Services to Offer in a Daycare Business

Parents do not just want a place they can leave their children as they go to school; they also want their children to grow mentally, emotionally, and physically. As such, you need to develop a curriculum where you will be teaching the children some values.

You need to develop a curriculum that engages children and grows their curiosity. For instance, you can teach them numbers, alphabets, songs, and memory verses. This will help with their memory development and help them learn languages.

Also, you need to engage the children in outdoor activities like games, puzzles, dancing, and others. You can also teach them shapes and how to color objects. Children also need to know how to bond, interact and play with each other.

You also need to decide whether you will be providing children with food, porridge, and tea. If you plan to offer these services, make sure to observe high levels of hygiene. You can include the expenses in your charges. Alternatively, you can ask parents to bring children accompanied by their food.

Market Your Daycare Business

Once you have launched your daycare business in South Africa, you need to start looking for customers. You can market your daycare business through business cards, banners, and word of mouth. You can also create a Facebook page or group and a WhatsApp group and invite your friends to like and join. You can also create a website and promote your daycare business by listing your services and charges.

One way to attract new customers and retain existing ones is by offering excellent services to daycare children. You can provide food, porridge, and tea to the children, or you can ask parents to bring food for their children.

For business consultancy, strategic planning, organizational development, market research, financial management & accounting, risk management and business plan writing at an affordable fee, please reach out to us through a phone call +254728 621 138, or WhatsApp , or email: [email protected]

Is a Daycare Business a Good Investment in South Africa?

A daycare business is a profitable venture in South Africa. With the high growth rate in South Africa and many parents going to work every day, there is high demand for daycare services. Charges are based on the services you offer. You need to price your services well, so that you don't overcharge your customers and are not too low to avoid losses. You can make good profits by running a daycare business. Besides the profits, you get to contribute to society.

Starting a daycare in South Africa is easier than you think. With proper planning, a good business location, marketing, and excellent services, you can make profits from a daycare business. You also get to interact with kids, network with parents and contribute to society. Ultimately, it is a fulfilling business idea.

• How to start a shoe business in South Africa 
• How to start Airbnb business in South Africa
• How to start a laundry business in South Africa
• Free baby products for expectant mothers in South Africa

Get in touch

For business consultancy, business plan writing, market research, strategic planning, risk management, financial management & accounting at an affordable fee, please reach out to us through:

• [email protected]
• +254 728 621 138
• 1503 -01000, Thika KIBS Plaza, Thika

How To Start A Daycare Business In South Africa

What you should do is create a business plan that includes the partial care facility’s business hours:

• the cost structure
• the constitution contains the partial care facility’s name
• an original copy of the authorized construction plans
• a contingency plan
• a certificate of clearance
• a local municipality’s health certificate

How Much Money Is Required To Open A Daycare In South Africa?

A home daycare’s total start-up expenditures might vary between R20 000 and R40 000. However, if you intend to create your own daycare center, these expenditures would be far higher.

Is It Profitable To Run A Daycare In South Africa?

A day care center, such as one in South Africa, is a lucrative enterprise. More Early Childhood Development (ECD) day care centers are required when the average income grows in tandem with the birth rate. With a strong business idea and a little luck, you can make a lot of money.

In South Africa, How Can I Open A Private Daycare?

To start a home daycare in South Africa, you must register with the department of social development. You’ll need a safe and secure house with a separate play and sleeping room. You must have at least two years of experience working with children and a first aid certificate.

In South Africa, How Many Children Can You Babysit Without A License?

(1)No one may run a child care facility on any premises unless he or she has been- (a)issued with a health compliance certificate if the facility cares for six or less children; or (b)registered in accordance with the Act if the facility cares for seven or more children.

What Is The Cost Of Constructing A Creche In South Africa?

A creche is a facility where very young children are cared for throughout the day, allowing their parents to work full-time. The total start-up expenditures for a creche might vary between R20 000 and R40 000.

• How to start a Daycare at home in South Africa
• How do I Register a Daycare in South Africa?
• How to Register a Daycare in South Africa
• How to Open A Creche in South Africa?
• How to Start Crèche in South Africa
• How to Start a Day Care Centre in South Africa
• Where is Ballito in South Africa?
• How to Start a Construction Business in South Africa?
• Can You Get a Job at 16 in South Africa?
• How to Start a Private School In South Africa

• Table of Contents
• Opportunities
• Side Hustles

Business Ideas

Start a Daycare Centre Business

Read Next →

Start a Subsidised Vending Machine Business

Start a “Sustainable” Fashion Retailer

Start a “Fulfilled by Takealot” Business

These days often both parents work. Thus, mothers don’t have enough time to take care of their children. Therefore, starting a daycare center in your city might be a great opportunity to help take care of other people’s loved ones while they work.

Value Proposition

There are a different business models you can go with. Some of them are:

• Crèche. In South Africa, a pregnant woman may take only four months of maternity leave, starting one month before their due date. This means that in most cases she will need to get back to work when the baby is only three months old. Not surprising why young parents search for other people who take care of children in place of them.
• Child minder agency. Not everyone is ready to entrust their children to strangers (even if it is a well-respected organisation), so they prefer to take care of their babies themselves, but they still need some help.
• Childcare agency. The same as a crèche, but tutors work with older children aged up to 16.
• Baby and toddler classes. Probably the best business to start, because today parents (even those who are on a low budget) always want to give a better education to their children.
• Aftercare (a place for school going children to stay after school until their parents come from work).

  Solution As always, the key to a successful business is focusing. Probably the best agency to create is baby and toddler classes. You might offer some specific classes like swimming, drawing, painting, playing the guitar.

Regulation There are some things you need to consider in this business:  You need to be aware of the Children’s Act, which regulates this business, the gist of it, the establishment has to be registered and anybody working with children needs to be “fit and proper” a valid police clearance is essential when hiring people.

Here are the parts that deal with this business:

National norms and standards mentioned above:

Target Market & Marketing Activities The parents who decide where to place their children and pay the fees are your target market. Word of mouth will be your best source of clients, this from other mothers in the area who’s children attend your establishment. You need to offer a quality service at an affordable price that will impress parents. As for initially signing up parents, this is a local business, most people don’t want to drop off and collect their children too far away. So the usual channels, local classifieds and social media.

• Share on Facebook
• Share on Twitter
• Share on Pinterest

Comments are Closed

Business Opportunities in South Africa

Khoi Capital is a project showcasing practical small business ideas in South Africa. Our goal is to help you start your own business with as little capital as possible. I’ve always believed that people can get out of poverty no matter their current economic situation by sheer hard work and by not making excuses – or allowing others to make excuses for them.

Recent Ideas

September 7, 2024

Start a TikTok Shop

April 23, 2024

April 6, 2024

March 29, 2024

WeBuyCars as a Sourcing Platform

March 28, 2024

Start a Dark Tourism Business

Buy & Sell Fire Blankets

March 23, 2024

Small Business Ideas

Automotive Business Ideas Building Business Ideas Buying & Selling Business Ideas Design Business Ideas DIY Business Ideas Education & Training Business Ideas Entertainment Business Ideas Events & Conference Business Ideas Fashion Business Ideas Food Business Ideas General Business Ideas Gift Business Ideas Hygiene Business Ideas Leisure Business Ideas Logistics & Transport Business Ideas Manufacturing Business Ideas Miscellaneous Business Ideas Photography, Video & Film Business Ideas Printing Business Ideas Property Related Business Ideas Renovating Business Ideas Retail Business Ideas Security Business Ideas Tourism Business Ideas

© 2024 Khoi Capital

Privacy Policy

• Starting a Business
• Growing a Business
• Small Business Guide
• Business News
• Science & Technology
• Money & Finance
• For Subscribers
• Write for Entrepreneur
• Tips White Papers
• Entrepreneur Store
• United States
• Asia Pacific
• Middle East
• United Kingdom
• South Africa

Copyright © 2024 Entrepreneur Media, LLC All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media LLC

Example of Childcare Business Ideas You can use the operational businesses below to help you start your own childcare business idea and give you a head start.

By Nicole Crampton Jul 24, 2019

You're reading Entrepreneur South Africa, an international franchise of Entrepreneur Media.

Parents sometimes need help looking after their children, no matter what age. If you have experience with children and a youth development, education or caretaking qualification, you can start your childcare business idea. Here are 10 examples of childcare business ideas you can use to get your business off the ground:

1. Babysitting

If you have experience looking after children but don't yet have a qualification, a babysitting business could be the way to go. Before you get going, see what this operational business is up to and how it can assist you in starting your own babysitting business:

Business Name: Jackson Hole Babysitting

Website: https://jacksonholebabysitting.com/

Established Date: 2004

About the business:

Jackson Hole Babysitting specialises in individual childcare serving infants through to teens. They offer their services to guests of weddings or tourists on vacation, as well as full-time residents.Jackson Hole Babysitting also offers an on-call babysitting service, overnight care, full -or part-time nanny services for all ages, travel service and sitters for children with special needs.

Related: A Free Business Plan Example to Launch Your South African Business

Innovative business offering

Considering that this babysitting business does cater to guests and tourists they also offer baby gear rental for parents on-the-move. This enables this childcare business to cater to parents who might not need their babysitting services but do need strollers or cribs while travelling.

2. Rent Baby Stuff

Supplying parents with baby furniture and gear while they're traveling around the country or across the world is a great way to support the childcare industry. Before you launch your business have a look at what this successful business is offering to ensure your childcare business idea is competitive:

Business Name: Babylite

Website: http://www.babylite.co.za/

Established Date: 2006

Babylite is a South African premier baby accessory hire and rental company. They offer their services for families visiting and travelling within South Africa. They deliver and collect the baby equipment and baby accessories from the airport or the client's accommodation.

Babylite offers reservations for those parents who know ahead of time what they'll need, as well as parents arriving at the airport and needing equipment or accessories. If customers are hiring cars, Babylite can leave the equipment with the rental car in advance, so their customers don't have to wait for the equipment.

3. Night Nanny

If you have knowledge of caring for a newborn baby or multiple children at once, new parents could hire you to look after their children through the night. Before you launch your service, see how this Night Nanny started her business in London and what services she offers her customers:

Related: 11 Uniquely South African Business Ideas

Business Name: The Night Nanny Service

Website: https://www.thenightnannyservice.com/

Established Date:

Rae the founder of The Night Nanny Service, has nine years' experience as a Night Nanny, and she also has three grown children of her own. She offers experience, lessons and helping new parents in creating routines for their newborns. She will also answer any questions the parents may have and is happy to work around her customers schedule.

The Night Nanny Service also offers her customer life-long phone support free of charge for as long as they want or need it, and she offers troubleshooting and baby sleep training for babies who are battling to sleep and can't seem to stick to a routine. She will also help with developmental milestones like helping baby to switch to the bottle or helping toddler to sleep in their own bed.

4. Children's Party Service

If you love planning children's parties, why not start your own children's party service? Here is a successful children's party planning business that you can get ideas from before you launch your own business:

Business Name: Rainbows and Wishes: Children's Party Rentals and Events

Website: https://www.houstonkidsbirthdayparty.com/

Established Date: 2018

Rainbows and Wishes: Children's Party Rentals and Events was launched to meet the demand for children's parties that it's parent company Tea-Light Parties was receiving. They offer party planning, children's destination event planning, themed birthday parties, teen/tween events and hassle-free pop-up party kits.

Rainbows and Wishes also offers party supply rentals for parents looking for children's sized furniture, tables, tablecloths, napkins and chair skirts. They also offer custom event planning for parents who want something specific for their children's birthdays.

5. Start a Creche

If you have an education background in youth development and experience teaching children, then this could be the childcare business for you. See what your competition is doing before you launch your own business to ensure you remain competitive and offer all the services you should:

Business Name: Toddies

Website: https://www.toddies.co.za/

Established Date: 1999

Toddies offers care and educational lessons to children ranging from 3 months to 6 years with educational programmes that help to develop their social skills. They are given numerous opportunities to practise social interactions such as language, gross motor skills, mathematics, arts and crafts, drama and music.

Related: The Ultimate 101 List Of SA Business Ideas To Get You Started

Toddies also offers numerous extra murals including swimming, playball, pottery, soccer, maths and music and dance to ensure the children are learning while having fun . They are open all year, except for two weeks in December, assisting parents with a safe, reliable and educational place to send their children.

6. Baby Swimming Services

Do you want to teach babies and toddlers how to swim? Then this could be the childcare business idea for you. Learn from this successful swimming business to ensure you cover all your bases before launching your business:

Business Name: MySwim

Website: http://www.myswim.co.za/home

Established Date: 2010

MySwim follow's the Professional Baby Swimming Teachers Association (PBSTA) method of teaching babies and toddlers how to swim. Each child is allowed to progress at their own pace and ability. They offer baby swimming lessons from 6 months old.

MySwim also offers swimming lessons for older children and swimming training for adults, so the whole family can enjoy their services. They also offer their services to nursery schools as an extra-mural activity.

7. Kids' Taxi Service

Kids have so many extra murals and appointments that many parents just don't have the time to pick them up and drop them off. If you want to safely transport children from school to their afterschool activities and then home, then this could be the childcare business idea for you. Ensure you know everything about this type of business by studying competitors in your market, here is an example:

Business Name: Cool (kids') Cabs

Website: https://coolkidscabs.co.za/

Established Date: 2009

Since its launch Cool (kids') Cabs has done 5 million kilometres as mobile caregivers, injury free. The vision behind this business was to provide the safest transport for children. They also offer direct routes, so parents don't have to worry about children waiting while they pick up and drop off other children.

Related: A Child Care Business Might Amplify Your Entrepreneurial Journey

Cool (kids') Cabs offers state of the art security features including: 24/7 live tracking, onboard cameras, trained drivers and appropriate car seats. They have also partnered with Bounce to give parents peace of mind while their children enjoy the fun and safe environment at the Bounce facilities.

8. New Parents School

There are thousands of first-time parents around the country that could use support and guidance on the practical aspects of being new parents. If you have experience with newborns and young children and perhaps have a degree in youth development, you could open a childcare business like this. Here is an example of a successful business you can learn from before launching your business:

Business Name: Nanny Options

Website: https://nannyoptions.ie/parenting-classes/

The Nanny Options offers parenting classes covering a range of topics including baby health, playtime ideas, food, nutrition and sleep routines.They also offer group classes and workshops that are "hands on" courses and are ideal for all parents.

Besides the parenting classes, The Nanny Options also offer nannies, maternity nurses, housekeepers, sleep training, babysitters, au pairs, nannies for special events and tutors.

9. Day Care Centre

If you want to look after children during the day you could open a day care centre. Before you do find out what others are offering and what you need to know before you launch your childcare business:

Business Name: Babies First Day Care and Pre-School

Website: http://babiesfirst.co.za/

Related: 25 Of The Most Successful Business Ideas In South Africa

Babies First aims to provide children with the highest quality of care, environment and the best opportunities in physical, social, emotional and intellectual learning. They have both indoor age specific designated classrooms and play areas, as well as an outdoor playground and picnic garden.

Even though Babies First is a Day Care they also offer facilities for a pre-school, which allows them to take on older children.This means that they can provide an educational and safe place for children to grow over many years until 5 years old.

10. Au Pair

There are parents who need a more involved service with it comes to childcare. Au Pairs typically pick-up children from school, take them to after-school activities, take them home, help them with homework and look after them until the parents come home. If this sounds like the childcare business idea you would like to start here is a successful business, you can learn from:

Business Name: Au Pair Agency

Website: http://aupairagency.co.za/

Au Pair Agency vets and find part-time and full-time au pairs and matches them up with families looking for their service.. Each au pair needs to have over a year of childcare experience and a first aid course qualification.

Besides au pair services, Au Pair Agency also offers babysitting, house sitting and pet sitting services. This enables families to receive all the personal and child caring services from one business.

Related: Planning To Invest In The Nursery Franchise Business?

Entrepreneur Staff

Sales Enablement - Content Developer

Nicole Crampton is an SEO specialist who contributes to Entrepreneur.com/za. She has studied a BA Journalism at Monash South Africa and has continued her studies with a Creative Writing degree from UNISA. Nicole has completed several courses in writing and online marketing, and continues to hone her skills and expertise in digital media, digital marketing and content creation.

Most Popular Red Arrow

How a history student turned her side hustle into a startup that's raised $7 million: "people always tell me, 'i thought i had to major in computer science to be an entrepreneur'".

Audrey Wisch never imagined she'd be one of those kids who dropped out of college to grow her side hustle into a startup. But with the help of AI, her "human-centric" service is scaling up.

26 Of The Richest People in South Africa

Here are 26 of South Africa's richest people, but how did they achieve this level of wealth? Find out here.

They Started a Home-Based Side Hustle Earning Up to $20,000 a Month — and It's Still Growing: 'Will Never Get Old'

TALEA Beer Co. co-founders LeAnn Darland and Tara Hankinson wanted to replicate the experiential appeal of a winery with their own brewery.

5 Ways CEOs Can Encourage Employees to Bring Their Whole Selves to Work

Creating a welcoming culture where employees can bring their "whole selves" to work is crucial to attracting and retaining top talent.

5 Different Types Of South African Business Structures

Do you know which type of business will suit your South African business idea best? Here are the five different types you can register your business as.

This NFL Team Is Owned By the Fans — Here's How Much Shares Cost and What Ownership Gets You

The Cheeseheads even own their hat maker.

Successfully copied link

Daycare Business Plan Template [Updated 2024]

Daycare Business Plan Template

If you want to start your own daycare business or expand your current daycare center, you need a business plan.

The following daycare business plan template gives you the key elements to include in a winning childcare business plan. In addition to this template, conducting research will not only support your business concept, but help you better understand the daycare industry, pricing strategies and your target market. It will also help you craft a smart marketing plan and strong financial projections.

You can download our Daycare business plan template (including a full, customizable financial model) to your computer here.

Daycare Business Plan Example

I. executive summary, business overview.

[Company Name], located at [insert location here] is a new, upscale daycare focusing on offering a safe, play-based, nurturing environment to promote the physical, social, emotional, cognitive and creative development of children and infants through five years of age. The goal is not simply to look after our client’s children while they attempt to prioritize their various other time commitments, but to truly facilitate the advancement of young minds and bodies during critical years of development.

[Company name] will be staffed with qualified supervisors and attendants who will act as facilitators and teachers. The education curriculum will be based upon the principle that preschoolers learn and develop best through carefully supervised play with educational materials. The Childcare Center environment will provide stimulating, challenging materials, experiences and equipment for children. Each child will have the opportunity to grow emotionally, socially, intellectually, creatively, and physically.

Customer Focus

[Company Name] will primarily serve the residents within a 5 mile radius of our location. The demographics of these customers are as follows:

• 28,672 residents
• Average income of $98,119
• 57.8% married
• 62% in Mgt./Professional occupations
• Median age: 42.9 years

Management Team

[Company Name] is led by [Founder’s Name] who has been in the daycare business for 20 years. While [Founder] has never run a daycare facility himself, he has taught kindergarten classes in a local elementary school for 20 years and before that worked in the daycare industry for almost 10 years. As such, [Founder] has in-depth knowledge of the daycare business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• There are currently no upscale daycare centers in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback indicating that customers would be highly receptive to our services once operations are launched.
• Our location is in an area with many high-income families that include a significant number of business professionals (62% of the population). This means that the customer demographics indicate that individuals have the financial means and the prerequisite demand for our company to thrive in [company location].
• The management team has a track record of success in the daycare business.
• Parents are becoming increasingly concerned regarding the development of their preschool age children. Studies indicate that from conception to age three or four is when the brain matures and personality develops, and when psychological and social patterns of bonding with primary caregivers and the community at large are established. For this reason, many high-income parents are willing to pay a premium for truly quality services that will foster a comfortable and nurturing environment for their children to develop.

Financial Highlights

[Company Name] is currently seeking $325,000 to launch. Specifically, these funds will be used as follows:

• Center design/build: $175,000
• Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

II. Company Overview

Who is [company name].

[Company Name], located at [insert location here] is a new, upscale daycare that seeks to attract customers that value their children’s growth and hopes to be viewed as a facility that facilitates the lifelong journey of discovery – one that is informative, enlivened, and enriched by academic achievement, entertainment and personal growth. The aim of [Company Name] is to provide a nurturing environment where every child learns better and is surrounded by affectionate and caring people.

The center is a licensed day care facility and will operate on week days from 7:00am to 6:15pm. The center has a capacity of 80 children and is staffed with qualified, skilled supervisors and attendants who will look after the children in a motherly way trying to teach healthy eating habits, team spirit, a caring attitude and hobby development in every child who comes to the center. The staff will be responsible for the daily care and teachings of the children, meals, first aid and cleanliness. [Company Name]’s quality educational programs consist of:

• Lessons in drawing, painting and dance as a part of day-to-day activities
• Nutritious meal plan for lunch and snacks
• Curriculum that is gender inclusive, recognizing the society as multicultural and supportive of social justice
• Environment similar to that of school campus
• Staff that fosters competence, dignity, a sense of independence and pride in oneself

[Company Name]’s History

After 20 years teaching children at an elementary school level, [Founder’s Name] realized what a significant impact he was having upon bright young minds and the limitations that the school environment had upon his teaching curriculum. After surveying the local customer base, finding a potential location, and incorporating [Company Name] as an S-Corporation on [date of incorporation], [Founder’s Name] was able to successfully launch his daycare services from his home with only himself as an employee. Once [Name of Founder] recognized that his services were in high demand and his operations became confined by his location (his home), he decided to expand his operations.

The business is currently being run out of [Founder’s Name] home, but once the lease on [Company Name]’s commercial location is finalized, all operations will be run from there.

Since incorporation, the company has achieved the following milestones:

• Found commercial real estate space and signed Letter of Intent to lease it
• Developed the company’s name, logo and website located at www…
• Determined equipment and supply requirements
• Began recruiting key employees with experience in the child care

[Company Name]’s Services

Below are [Company Name]’s daily service offerings that will engage its attendees on a daily basis. All items are classified under the following main categories:

• Nutritious meal plan to take care of lunch and snack requirements
• Environment similar to that of school campus and teaches encouragement of peers

In addition to these general principles, the Company will attempt to create concrete classes for its “students” in order to formalize its experience and efficiently advance their development as life long learners. Furthermore, this classroom learning environment, coupled with elements of play, will allow attendees to bond with their classmates and allow staff members to provide personal attention to each member. The following is an example for class design based on projected enrollment of children in four age groups.

Group Size 0-27 months (4 children) (1 class) 1 senior staff member 3 year old (24 children) (3 classes) 3 senior staff members 4 year old (20 children) (2 classes) 2 senior staff members 5 year old (30 children) (3 classes) 2 senior staff members

Overall strength in the enrollment of students will grow from year to year based on the demand for this service in the area. [Company Name] expects to be at full capacity from the onset and beyond. The Company’s facilities will operate on weekdays from 7:00am to 6:15pm. The business will generate revenue through its enrollment of children.

Facility Design

[Company Name] will develop a 1,820 square foot daycare center whose key elements will include the following:

• Classroom Areas
• Infant Room
• Administration Office
• Recreational Area

Below you will find a rough sketch of the floor plan:

III. Industry Analysis

Today, childcare centers have become a common and necessary part of millions of Americans’ lives. More women in the workforce, longer workweeks and educational research supporting the importance of early childhood education have contributed to the rise of early childhood centers throughout the United States. Since working parents are unable to pay attention to the proper academic and mental growth of their children during the days, they opt for the services of daycare centers. Working parents face numerous decisions when balancing their work and home life, including choosing the type of care to provide for their children while they work.

Industry Statistics & Trends

The following industry size facts and statistics bode well for [Company Name]:

According to the United States Department of Labor, “Obtaining affordable, quality child day care, especially for children under age 5, is a major concern for many parents, particularly in recent years with the rise in families with two working parents. As the need for child day care has increased in the last decade, the child day care services industry began to fill the need of non-relative child care.”

Often employment statistics are a good indicator of where an industry will likely move in the near future; after all, demands for human resources generally reflect a strong demand for products or services within an industry. The United States Department of Labor further indicates that, “wage and salary jobs in the child day care services industry are projected to grow about 34 percent over the 2006-16 period, compared with the 11 percent employment growth projected for all industries combined. The rising demand for child day care services driving industry growth reflects in part demographic trends. Over the same period, the number of children under age 5 is expected to increase at a faster rate than in previous years and many of them will continue to be raised in households with two working parents or a single working parent. Furthermore, growing numbers of parents will hold jobs that require work during weekends, evenings, and late nights. As a result, demand will grow significantly for child care programs that can provide care during not only traditional weekday hours, but nontraditional hours as well. In addition, school-aged children, who generally require child care only before and after school, increasingly are being cared for in centers.”

Interest in the use of professional childcare has grown as the proportion of women in the labor force increased. The growing number of working couples has lead to an increase in demand for child care centers. The stay-at-home trend is decreasing, making child daycare centers important.

Click below to see each section of our free child care business plan template. You can also click here to get our sample daycare business plan pdf .

IV.Customer Analysis

Demographic profile of target market.

[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].

The area we serve is affluent and many are employed in professional services, which means many residents must find competent and reliable day care services for their toddlers and children (especially during regular work hours).

The precise demographics of the town in which our location resides is as follows:

Customer Segmentation

We will primarily target the following three customer segments:

• Stay-at-home moms: Although it may seem counter-intuitive to market [Company Name]’s services to this particular segment, marketing services to this group may have some distinct advantages. First, although traditional day care centers do not offer a comprehensive set of services, [Company Name] will offer its customers a thoroughly nurturing environment that combines the concepts of play with actual learning (articulated in its extensive class offerings). Furthermore, our services allow children to interact with one another through play, an experience not easily fulfilled by stay-at-home mothers. Lastly, these individuals often have many children and thus many responsibilities – it may be easier for them to handle all of their responsibilities if they utilize our services a few times a week.
• Business Professionals: The [company location] area is filled with affluent individuals that work in professional environments (this means long work hours as well). These individuals include those who are currently using, but are unsatisfied with, competitors of [Company Name]. For this reason, these individuals need the services that [Company Name] can provide.
• Single Parents: Single parents of ten work long hours and do not have a spouse to take care of their children. This segment of individuals is looking primarily for reliability (a daycare that is both dependable and flexible around their hectic schedule).

V.Competitive Analysis

Direct & indirect competitors.

Childcare is one of the fastest growing business sectors in the US. In the age of stiff competition, a sustainable competitive advantage is crucial for the success of players in the daycare industry. While the need for day care services continues to grow as does the number of people interested in providing this service, daycare centers are becoming an extension of personal parental care. These centers differ in relation to the types and the quality of services offered. With the demand expected to increase in the future, this industry is poised to grow.

Competition in general can be divided into two categories and these key local competitors within a 5-mile radius:

Day care centers

Daycare centers begin care for babies six to eight weeks old and serve children until they begin kindergarten. Some of our specific competitors include:

• YMCA: The YMCA runs after-school as well as all-day day care services to the general public and has toys as well as jungle-gym facilities for its attendees. Though their services are well-known and their public image recognized, the YMCA requires each of its members to be toilet trained, have a comprehensive immunization record, and some services are limited to customers that income quality. Furthermore, their services are more or less limited to daycare services which teach their students very little (mostly just looking after kids as they play).
• Jane Street Day Care: Jane Street has been open for 10 years and operates at its capacity of 100 children at a time. Internet reviews and reports from speaking with prior customers of Jane Street show that this daycare has high turnover of children and parents who find the staff and service they receive at Jane Street very uneven. Jane Street has the advantage of a central location but suffers from its poor brand image.

Preschool refers to early childhood programs for children from age two and half to five or six.

• Plainview Montessori: Plainview offers a structured learning approach and experienced staff, but operates only part-day classes. Plainview also operates at its capacity and has little means to expand in its current location. If Plainview chooses to change locations to expand it will take years to complete this transition. In the meantime, [Company Name] will begin to serve the additional children in the area.

Competitive Pricing

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Location: [Company Name]’s location is near the center of town. Our location is geographically close to a high density of professional business establishments which puts us in close proximity to our target customers.
• Management: Our management team has years of business and marketing experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.
• Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for us to build awareness with the community as well as a loyal customer base.
• High-Quality Staff: The thing that truly separates [Company Name] from its competitors is the quality of our staff and their attention to each individual learner. Through our high-quality staff, we will provide classes that integrate fun and learning into a comprehensive package guided by the principles of efficient childhood development.

VI.Marketing Plan

The Marketing Plan describes the type of brand [Company Name] seeks to create and the Company’s planned promotions and pricing strategies.

The [Company Name] brand will focus on the Company’s unique value proposition:

• Offering a comprehensive learning environment that not only teaches children the value of play, but using those principles to further their emotional, intellectual, and physical development.
• Offering a convenient location that is close to its customer base.
• Providing excellent customer service.

Promotions Strategy

[Company Name] expects its target market to be parents working and/or living within a 5-mile radius of each of its store. The Company’s promotions strategy to reach these individuals includes:

Direct Mail

[Company Name] will distribute direct mail fliers to neighborhoods surrounding its location. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to frequent the store.

Public Relations

We will contact all local and area newspapers and television stations to tell them about the opening and unique value proposition of [Company Name].

Advertising

[Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.

Ongoing Customer Communications

[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events , products and more.

Pricing Strategy

[Company Name]’s will segregate children into different age groups ranging from six weeks to five years. The Company will charge a flat rate of $200 per child per week to all children for full-time care regardless of his/her age. This fee can be considered very competitive with high-quality care, such as the local Montessori. The Company also aims at giving discount of 15% to employees of businesses with which the center has partnerships.

VII.Operations Plan

Functional roles.

In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:

Administrative Functions

• General & administrative functions including legal, marketing, bookkeeping, etc.
• Hiring and training staff

Kitchen Functions

• Food preparation for all day learners

Store/Retail Functions

• Teachers for each class
• Customer Service Representatives
• Janitor/maintenance personnel to keep the store clean

To execute upon these day-to-day obligations, the company has created a cost-effective business model that will streamline processes and create an efficient chain of command.

[Company Name] expects to achieve the following milestones in the following [] months:

VIII. Management Team

Management team members.

[Company Name] is led by [Founder’s Name] who has been in the daycare business for 20 years.

While [Founder] has never run a daycare center himself, he has taught elementary school classes at a local elementary school for 20 years. [Founder] also has considerable experience working in the daycare industry as he has worked for ten years at an existing daycare facility. There, he learned how to interact with young children and was able to splice the principles of learning (which he clearly employed during his work at XYZ elementary school) with the elements of productive play (which he picked up during his years at ABC daycare center. In addition, [Founder] also holds a 90-hour certificate in Early Childhood Education from Prince George’s Community College.

[Founder] graduated from the University of ABC where he majored in Communications.

Hiring Plan

[Company Name] will maintain the student-teacher ratio required by government regulation. Each employee will be familiar with first aid and CPR and have medical clearance and fingerprints on file. The following are the staff requirement and background are described below:

• Must be at least 21 years old
• Director can only cover 50% of the time
• The director must have 90 hour certification
• Must have 90 hour certification
• One year experience
• At least 19 years of age
• Completed high school
• Must have 45 hour certification (group leader class)

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from its daycare services.

The major costs for the company will be staffing, location maintenance, and food preparation. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $325,000 to launch its business. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Store design/build: $175,000

Key Assumptions & Forecasts

Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

Comments are closed.

Female Entrepreneur SA

The a to z of starting your own early childhood development centre in sa.

This provides a great opportunity for entrepreneurial-minded people to establish ECD centres in their communities, but anyone interested in doing so should ensure that they not only get the right training and qualifications, but also that they are compliant with the rules and regulations governing ECD centres, an education expert says.

According to Stats SA, 46.9% of young children are not attending an educational institution, despite the fact that the first 1000 days of a child’s life are the most important to unlocking their life-long potential.

May says starting one’s own ECD centre isn’t as easy as opening your doors to a group of children and trying to keep them busy during the day, and there are a few steps one should go through before making the decision to do so. “You have to ensure that you have a proper business plan in place, along with the financing to get started. It is worth keeping in mind that if you can show you are in line with regulations, have proper training, and are qualified to provide a supportive and enabling environment for the children under your care, you may be able to access government or private sector funding.”

May says that to register an ECD centre, you would need to be able to show at least the following: A weekly food menu for your centre A daily programme for your centre A building plan of the location (if appropriate) A copy of the constitution of your business A business plan for funding purposes Other documents that may be required for your specific situation “After granting conditional or provisional registration, the relevant government departments will do assessments to ensure your centre complies with all standards and regulations in terms of infrastructure, health and safety, education curriculum, and HR management,” says May.

It is important to ensure you have what it takes to make a success of your business. You can do this by obtaining a good academic foundation in the field and making sure you understand its demands.

“There are many courses and qualifications relating to early childhood development, but it is important to choose one that will cover all the bases, including educational psychology, daycare management, child health, business management, and so forth,” says May.

“The need for good ECD centres is on the rise because of the rapid rise of dual-income households, where both parents work full-time, and the high rate of single-parent households. While there are almost 20 000 ECD centres nationwide, many of them are unregistered and do not meet the standards set out by the government. “This means that there is great need for affordable, quality childcare services that tick all the boxes and can ensure that the next generation gets the best start in life possible.”

* For a free e-book on the A to Z of establishing your own ECD centre, visit: https://www.oxbridgeacademy.edu.za/Documents/How-To-Start-a-ECD-Centre-Ebook.pdf

For further information or comment, please contact Sanet at Oxbridge Academy: 021 883 2454 or email [email protected] Alternatively, please visit www.oxbridgeacademy.edu.za

Recent Posts

Recent comments.

Leading Ladies Mompreneurs 2022

BizBuzz August 2024

Leading Ladies volume 3 2023

About Female Entrepreneur SA

Female Entrepreneur SA is the place to be if you are a woman in business in South Africa. We aim to bring you interesting, educational and up to date information on business and life. During the year we have networking events, workshops and showcase days across South Africa.

Sustainable Leadership Takes Centre Stage as Proudly South African and Southern Sun Honour Women Pioneers

In celebration of the great strides women have made in business, Proudly South African and Southern Sun have joined forces to recognise the sustainability of women’s leadership amongst thought leaders, ceiling breakers, and business leaders in the country. The Women’s Month celebration was hosted at 54 on Bath on Friday, 30 August 2024. Leanne Manas […]

Chilli Chocolate Chefs: A Culinary Journey of Passion and Perseverance

In the heart of Durban, amidst the bustling streets and vibrant culture, lies the culinary haven of Chilli Chocolate Chefs (CCC). The brainchild of sisters Zainab and Faatimah Paruk, CCC is not just a catering company; it is a testament to the power of passion, perseverance, and unwavering determination. This is their story, a journey […]

Get A Call Back

Complete the form below and we will contact you as soon as possible.

• First Name *
• Last Name *
• Cell Phone Number *
• Hidden Alternative Contact Number
• Course Interested In * Choose A Course Accounting Courses Adult Matric Administration Courses Beauty Therapy Courses Bookkeeping Courses Business Management (N4-N6) Child Care Courses Computer Courses Creative Courses Events Management Courses Educare (N4-N6) Financial Management Courses Financial Management (N4-N6) HR Management Courses Human Resource Management (N4-N6) Interior Decorating & Design Courses Legal Secretary (N4-N6) Management Courses Management Assistant (N4-N6) Marketing Management (N4-N6) OHS Courses Photography Courses Project Management Courses Secretarial Courses Small Business Management Courses Supply Chain and Logistics Courses Tourism Courses
• Employment Status * Choose An Option Currently Employed At College/University Currently Unemployed Still at High School
• Which Language Do You Want To Be Contacted In? * Choose An Option English Afrikaans Zulu Xhosa Southern Sotho Tswana Northern Sotho Venda Tsonga Swati Ndebele Shona Other African Languages Other International Languages Engels Ander Afrikataal Ander internasionale taal
• Who is Paying For Your Studies? * Choose An Option Myself I have no funds A Friend or Family Member My Parents My Employer
• Hidden How Would You Like To Receive Communication? * Phone Call Virtual Call With A Course Expert Whatsapp Email I Only Want A Brochure No Contact Needed
• Highest Qualification * Below Grade 9 Grade 9 - Grade 11 Matric Or Higher
• Comments This field is for validation purposes and should be left unchanged.

What Are the Requirements to Open a Daycare in South Africa?

Claire van rooy.

• September 4, 2024

Requirement Completed ꠛ Prepare and submit a business plan. ꠛ Obtain and submit a clearance certificate. ꠛ Schedule a health and safety inspection. ꠛ Install fire extinguishers and smoke detectors. ꠛ Ensure play areas are free of hazards. ꠛ Maintain clean and sanitary facilities. ꠛ Apply for zoning approval or special permission if your home is in a residential area. ꠛ Obtain a copy of your zoning approval certificate. ꠛ Hire qualified staff or obtain the necessary qualifications yourself. ꠛ Ensure all staff have up-to-date first aid certification. ꠛ Conduct background checks on all staff. ꠛ Create safe indoor and outdoor play areas. ꠛ Equip the daycare with age-appropriate toys and learning materials. ꠛ Set up sleeping areas with appropriate bedding. ꠛ Ensure you have sufficient bathroom and handwashing facilities. ꠛ Develop a daily schedule and curriculum. ꠛ Establish clear policies and procedures (e.g., for emergencies, sick children, etc.). ꠛ Set up a secure system for child pick-up and drop-off. ꠛ Create enrollment forms and contracts for parents. ꠛ Set up regular communication channels with parents (newsletters, meetings, etc.). ꠛ Establish a system for managing payments and fees. ꠛ

Staffing Requirements To Open A Day Care In South Africa

Having the right staff is essential for providing quality care in your daycare. South African regulations set specific requirements for staff qualifications and child-to-teacher ratios to make sure that every child receives the attention and care they need.

How Many Children Per Teacher In A Crèche?

The standard child-to-teacher ratio in a crèche is 1 adult for every 6 children under the age of 18 months, 1 adult for every 10 children aged 18 months to 3 years, and 1 adult for every 20 children aged 3 to 6 years. This ratio ensures that each child receives adequate supervision and care.

Can I Open A Crèche Without Qualifications?

No, you cannot open a crèche without the necessary qualifications. However, our Crèche Management Courses can provide the qualifications you need to meet these legal requirements. By completing one of these courses, you’ll gain the knowledge and skills required to successfully run a crèche. This ensures that you can provide a high standard of care for the children and comply with all regulatory obligations.

Training And Certification Requirements To Open A Daycare

Opening a daycare calls for proper training and certification to ensure you meet the country’s standards. Understanding the steps involved in these areas will not only help you establish a reliable daycare but also give parents peace of mind knowing their children are in good hands. 

Training And Certification

To work in the childcare sector, particularly as a creche teacher or daycare provider, specific training and certifications are necessary. These qualifications are crucial for ensuring that you are well-prepared to handle the responsibilities of caring for and educating young children.

How Do I Become A Creche Teacher?

Becoming a creche teacher in South Africa involves several key steps:

• Complete Relevant Training : Start by enrolling in a childcare course, such as the ones offered by Skills Academy. These courses provide you with the foundational knowledge and practical skills needed for working with children.
• Gain Practical Experience : Alongside your studies, you will need to gain hands-on experience. This often involves working in a daycare or creche as part of your course requirements, where you’ll apply what you’ve learned in a real-world setting.
• Obtain Certification : After completing your training and gaining the necessary experience, you’ll need to obtain a formal certification. This certification is essential for proving your qualifications to potential employers and regulatory bodies.
• Register with South African Council for Educators: Finally, it’s important to register with the South African Council for Educators ( SACE ) . This registration confirms that you meet all the legal requirements to work as a creche teacher.

What Is A Child Care Course?

A childcare course is a specialized program designed to equip you with the knowledge and skills needed to care for and educate young children. These courses cover a range of topics, including child development, safety, and educare didactics.

Skills Academy offers three different childcare courses, each tailored to meet different needs and career goals.

Our Child Day Care course focuses on the essentials of running a daycare, Child Psychology courses delve into understanding child behavior and development, and Creche Management courses prepare you for the administrative and leadership aspects of managing a childcare facility.

Operational And Service Offerings

Before opening your daycare, it’s important to understand the various operational aspects and services your daycare will offer. Whether you’re planning to open a small home-based facility or a larger centre, knowing what services to provide will ensure your daycare meets the needs of both children and parents.

Which Services Should Day Care Centres Offer?

The services offered by a daycare centre can vary depending on the type of facility you want to run. For a more traditional daycare, you might focus on providing basic care such as feeding, nap times, and playtime activities. 

However, if you’re wanting a more educational approach, you could include early childhood learning programs that promote cognitive and social development. Some daycares also offer specialised services like after-school care, holiday programs, or care for children with special needs.

What Happens In A Day Care?

A typical day at a daycare centre is structured to balance learning, play, and rest. Children usually start their day with some form of group activity, which could range from storytime to interactive play that encourages social skills.

As the day progresses, they engage in various activities designed to stimulate their development, such as arts and crafts, outdoor play, and basic educational lessons.

In addition to these activities, daycares also ensure that children have time to rest and recharge. Nap times are typically scheduled after lunch, allowing children to rest in a quiet and comfortable environment.

What Is The Difference Between A Crèche And A Daycare?

Crèche	Daycare
Offers extended care from early morning until late afternoon.
Focuses on basic care and supervision.	Caters to children of various ages, from infants to preschoolers.
Typically operates for a few hours.	Includes structured activities supporting early childhood education and development.

Financial Planning And Business Setup

A daycare, just like any business, requires careful financial planning and a solid business setup. To ensure your daycare’s success, it’s crucial to have a well-thought-out plan that covers every aspect of your business, from initial costs to daily operations.

How To Draw A Business Plan For Daycare?

Creating a business plan for your daycare is essential to outline your goals, strategies, and financial projections. Here’s how to do it:

• Executive Summary : Start with a brief overview of your daycare business, including its mission, vision, and what makes it unique.
• Business Description : Describe your daycare, including the type of care you will provide (e.g., full-day, half-day, aftercare) and the age groups you will cater to.
• Market Research : Conduct thorough research on your target market, including the demand for daycare services in your area, your competition, and your target customer profile.
• Organisational Structure : Outline the management structure of your daycare, including the roles and responsibilities of the staff and any partnerships.
• Services Offered : Detail the specific services you will provide, such as meals, educational programs, and extracurricular activities.
• Marketing Strategy : Develop a marketing plan that includes how you will attract parents, such as through online advertising, local events, or word-of-mouth.
• Financial Plan : Include your startup costs, operating expenses, projected revenue, and break-even analysis.
• Appendix : Attach any additional documents that support your business plan, such as licenses, permits, and resumes of key personnel.

How To Write A Proposal For A Daycare Centre?

Writing a proposal for your daycare centre can be key to securing funding and gaining the support of investors. Follow these steps to create an effective proposal:

• Title Page : Begin with the title of your proposal, your name, and the date.
• Executive Summary : Provide a concise summary of your daycare, highlighting your goals and why the proposal is being submitted.
• Introduction : Introduce your daycare business, including its location, target market, and the need it will fulfill in the community.
• Services and Programs : Describe the services and programs you will offer, emphasizing their benefits to children and parents.
• Market Analysis : Present your market research, demonstrating the demand for daycare services in your area and how you plan to meet this demand.
• Management and Staffing : Outline the qualifications and experience of your management team and staff, ensuring potential investors of your capability to run the daycare effectively.
• Financial Plan : Detail your financial projections, including startup costs, operational expenses, and revenue forecasts.
• Conclusion : Summarize your proposal, reiterating the value of your daycare centre and your commitment to providing quality care.
• Appendix : Include any supporting documents, such as resumes, letters of intent, or legal documents.

How Do I Make A Daycare Budget?

Creating a budget for your daycare is an essential step in ensuring your business remains financially healthy. Here’s how to do it:

• List Your Startup Costs
• Estimate Monthly Operating Expenses
• Project Your Income
• Calculate the Break-Even Point
• Review and Adjust

How Much Does It Cost To Open A Crèche?

Opening a crèche has several costs, which can vary depending on the size and location of your facility. The main expenses include securing a suitable location, which may involve renting or purchasing property. Additionally, you’ll need to budget for renovations to make the space safe and welcoming for children.

Other significant costs include purchasing furniture, educational materials, toys, and safety equipment. You must also consider the ongoing expenses, such as staff salaries, utilities, insurance, and marketing efforts to attract new clients.

How To Get Funding For Daycare?

Securing funding for your daycare can make the difference between a successful launch and a struggling startup. Here are different ways to obtain funding:

Funding Source	Description
Various government grants are available for early childhood development and small businesses.
Bank Loans	Traditional bank loans can provide the necessary capital, but require a solid business plan and collateral.
Microfinance Institutions	These institutions offer small loans to startups, often with less stringent requirements than traditional banks.
Crowdfunding	Platforms like BackaBuddy or GoFundMe allow you to raise funds from individuals who support your vision.
Private Investors	Seek out private investors or venture capitalists interested in supporting early childhood education.
Personal Savings	Using personal savings can be a viable option, though it involves taking on more personal financial risk.

People Also Ask

Daycare can sometimes lead to higher exposure to illnesses and less one-on-one attention. However, these disadvantages do not outweigh the significant benefits, such as social development and early learning.

Yes, the daycare business in South Africa can be profitable due to the high demand for quality child care. Though, success depends on location, service quality, and effective management.

A nursery daycare is a facility that provides care and early education to children, typically aged 0-5 years. It focuses on nurturing and preparing children for primary education.

ABOUT THE AUTHOR:

Studying with us

Current students.

International Students call: +27 21 838 8250

Office hours

After hours.

Kenneth Chauke 0681213104

Debbie Richmond 0614243023

Leigh Van der Merwe 0614245037

Chandrey Malot 0680864927

Willem Manten 0614184103

Copyright © 2023 Skills Academy All rights reserved.

Requirements To Open A Creche In South Africa

A guide to opening a nursery school or crèche

Choosing the right location

If you are going to open your business on a commercial site, it should either be close to where parents work or where they live. This could be in a residential neighbourhood, near a school, a concentration of office parks or sharing a facility with another community organisation.

Is there enough space for all the equipment needed and to comply with the local municipality’s requirements? Is there enough parking? Is the area zoned for running a business? How much refurbishment will be needed for the premises to be operated as a crèche.

Operating from your home

There are many role-players that must be consulted if you decide to open your business from home. First and foremost will be your own family who will have a business operating around them and possibly encroaching on their space.

The neighbours will have to be consulted about the potential noise and extra traffic. It’s important to explain how you will keep the inconveniences and disruptions to a minimum.

You may also have to find out from your local municipality whether your home needs to be zoned for business rights or special concessions.

Finding the finance

The amount of money you will need depends on the size and location of your business, number of children, number of staff and the services you’ll offer. Use your business plan to draw up a budget of all the things you will need.

By comparing it to the cash you already have, you know what your shortfall is; how much money you need to borrow. Make sure that you have only the essential items in your budget. You can always buy the other items at a later stage. There are a few sources you might go to for funding.

• Own resources:  take stock of what assets you own, including savings, property equity, insurance policies, unit trusts, etc. These can be sold for cash or used as security for a loan.
• Your  personal line of credit  may enable you to buy most of the equipment on your credit cards.
• Approach  friends and family  who believe you can succeed for. But tread carefully and make sure there is a written contract in place and that the person can afford to take the risk.
• You may look for an investor who will  partner  with you. This could be someone who will put a cash injection into the business and play a hands-on role in the running of the business. Some partners are willing to invest, but don’t want to be involved in day to day operations. You will need to enter into a written Partnership Agreement that spells out each person’s role and responsibilities.

Rules, regulations and licenses

If you are going to accommodate six or more children, you have to register your business with your local municipality, who follows the rules set out by the Department of Social Development. When reviewing your application, the local Council can impose conditions and restrictions as it sees fit.

Your application must contain the following:

• Your particulars (identity number, address and telephone numbers)
• The physical and postal address of the partial care facility
• The number of children that will be accommodated by the facility
• Your qualifications, skills and experience
• A description of the programmes and services to be offered, including the aims and objectives

You must also submit:

1. A business plan containing:

• the business hours of the partial care facility
• the fee structure
• the day-care plan
• the staff composition
• the disciplinary policy

2. The constitution containing the:

• name of the partial care facility
• composition, powers and duties of the management

3. An original copy of the approved building plans 4. An emergency plan 5. A tax clearance certificate 6. A health certificate from the local municipality

The structural regulations for setting up a crèche/nursery school/day-care state the following:

• Office, staff room and sick bay:  If there are more than 30 children in the school, there must be a room that can be divided into a sick bay that can accommodate two children. The same room can also be used as a staff room.
• Indoor play area:  There must be an indoor area that covers 1.8 square meters of floor space per child, which can be used for play, meals and rest.
• Kitchen:  The kitchen must have suitable cooking and washing facilities, separate from the play area. There must be enough natural lighting and ventilation, and walls should be smooth and painted with washable paint.
• Bathrooms:  There must be one toilet and hand washing area for every 20 children under the age of five. The same goes for children over the age of five, but girls’ bathroom must be separate from the boys’. There must be hot and cold water at the basins. Potties must be emptied, cleaned and disinfected.
• Outdoor play area:  An outdoor play area must provide at least two square meters of space per child. The area must have shady parts, be fenced off and have approved lockable gates. The area must also be free of excavations, dangerous steps and levels.
• General:  The crèche must keep a health register.

Other requirements

To make sure all criteria are met and licenses are obtained, you may consider contracting a lawyer and insurer to make an assessment and give you advice.

To run your business effectively, you must have:

A safe playground  that meets the requirements set out by the local municipality.

Insurance:  At the very least, you should have public liability insurance, accident and equipment liability insurance. Make sure that you meet all the requirements set out by the insurance company so you don’t have any surprises when you claim.

Compliance:  Once you are set up, the local authority will come assess the premises and the playground. The Medical Officer of Health will issue you with an Environmental Health Permit for the playground.

To serve food, you will need a Certificate of Compliance for Food Preparation.

Inspections by your local official of the Department of Social Development can be made without notice to assess whether you are complying with the relevant regulations.

It’s important that you make sure you know exactly what is required in terms of all the legalities of setting up a business in childcare. Contact your local authority and the Department of Health for information.

How to Write a Business Plan for a Daycare Center

Sholom Strick

13 min. read

Updated February 7, 2024

Free Download:  Sample Daycare Business Plan Templates

Working out a business plan for your daycare center can be a challenge. There are many expenses you must calculate—more than you’d think! Projected enrollment growth and market demand can also be tricky to estimate.

From knowing your competition to picking the right place to establish your daycare center, there are a lot of lessons to be learned. As someone who owns eight successful daycares in the Chicago area, I know the strategies and approaches that work when it comes to developing a sound business plan for a daycare center.

A business plan should look about three to five years into the future. It serves as a cornerstone of your vision as you move forward. You want to put a lot of thought and solid analysis into your daycare center business plan, because it will more than pay off in the end.

• What makes your daycare center unique?

First of all, start with a description of your daycare center. You want to review all the different components of your business model. This description should basically be an elevator pitch for potential partners and business investors to get excited about what you’re offering and your unique location, philosophy, and approach.

What’s your curriculum based on? What criteria will you use in hiring staff? Write about the market and how you’re fulfilling demand. Write down particular statistics and characteristics of the neighborhood where you’ll locate your daycare center that make your center uniquely promising. Real estate sites like Loopnet and Zillow often provide helpful demographic analyses of neighborhoods; the most in-depth info is usually on commercial properties. For example, if the area around your future daycare center has 3,000 kids under five-years-old and only two daycare centers serving them, you’re in good shape.

In writing your company description, make sure to pay special attention to what sets you apart. Maybe it’s your prime location, your previous experience starting or helping start a daycare center, connections with top-notch staff willing to work for your daycare center, or other unique tools or services you can offer that distinguish you from your competition.

• Do a focused market analysis

Next up is a market analysis . Study statistics of the childcare industry: how big is it? How much do economists and experts project that it will grow in the next five years?

How big is your target market?

For detailed information on the size of your primary market, there are helpful resources such as this market research guide from the US Small Business Administration .

Who is your target market ? Describe who you’re targeting. Using some of the information from real estate websites can be a good approach, like I mentioned above. For example, is the median age of your daycare center’s neighborhood quite young or more elderly? Are you in a bedroom community of a nearby city? Note down how your daycare is going to help these different kinds of parents.

Also, keep in mind other factors: Are you in an area with large amounts of seasonal work where the workforce and population shrinks during winter or grows massively during summer? Like it or not, this will likely affect your revenue and enrollment, especially if you are offering part-time care.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

• What is your business model?

In addition to analyzing your market, note your pricing structure, gross margin levels, and other nuts and bolts of your business model. Will you offer discounts, or accept government-subsidized or reduced payments from lower-income parents? What employee childcare discount will you offer?

For detailed information on the size of your primary market, there are helpful resources, such as this guide from IBISWorld . This insightful article from Forbes is also a good resource, and notes that the U.S. Bureau of Labor Statistics expects daycare to be one of the fastest growing industries in the next few years.

• Location and rental agreements

Pay special attention to the obvious: What is the square-foot-per-child requirement in your town, city, and state, and what is the price-per-square-foot of the daycare center you plan to lease? These two facts are absolutely key to putting together a solid business plan. You will generally need more square-feet-per-kid the younger they are (i.e. toddlers get more square feet than preschoolers).

Pro tip: things like the arc of a door’s inward swing and required sinks will eat up square footage, so take them into account. Always leave at least 10 percent breathing room when calculating required square footage for the classroom sizes you want.

Also, aim for using at least 60 percent to 80 percent of your daycare center on classroom size. Other square footage will be used for office space, hallways, required sinks, foyer, and so on, but you want to be using at least 60 percent for classrooms because that’s where you make your money.

Let’s use the example that you need 35-square-feet for every kid in a classroom up to a max classroom size of 20. That means you need a classroom of at least 700-square-feet (20 multiplied by 35). However, as I mentioned above, you want to leave breathing room of between 20 percent to 40 percent (for things like door swing radius, required baby changing tables, required sinks, future building modifications) so you should actually have a room that’s bigger than 700-square-feet.

In noting the lease information on your business plan, aim to negotiate free months of rent with your landlord. Opening a new daycare takes a long time for construction build-outs, permits, licensing and many other factors—sometimes up to a year. Explain this to the landlord. They want a tenant and commitment. Consider agreeing to a longer lease in return for a few months free or a landlord investment in build-outs.

Alternately, the landlord may agree to defer rent in return for a larger security deposit or added monthly payments. Asking for free months shows you’re a competent negotiator who takes his business seriously and has a long-term profit goal in mind.

Another thing to watch out for with monthly rent is all the added costs. Say your price is $20 per square-foot and your building is 5,000 square-feet. This adds up to $100,000. Divide that by 12 to get your monthly rent: $8,333. Make sure to find out if it is a gross or net rate.

Gross includes everything, but net doesn’t include the following:

• Property taxes
• Landlord insurance
• Common area maintenance fees
• Various other charges

Other questions to answer

How many kids are in your daycare center’s neighborhood and how many daycare centers already exist to serve them?

Take an average daycare center in a city that has, say, 100 kids enrolled. If you’re in a neighborhood that has 2,000 kids you still have room for a few daycare centers to serve demand, assuming around 10 percent to 20 percent of parents will enroll their kids in daycare.

There’s a pretty high demand for good childcare in the United States right now and many other countries. Whether you’re urban or rural the chances are you’ll be in demand—but you should still crunch the numbers before the contractors start working.

• Who are your competitors?

How much market share do they have? What makes them strong and what are their weak points? Are there some more general impediments that could get in the way of flourishing, such as increasingly burdensome regulations in your state, or a lack of reasonably-priced leases to choose from?

There are a lot of regulatory requirements in the childcare industry (a lot!), so keep these all in mind when calculating the costs. There’s so much to keep track of!

Things to keep in mind:

• Understanding your building’s zoning details
• Organizing utilities and garbage pickup
• Having the required playground
• Cribs (for infant room)
• Meeting daylight requirements in each classroom
• Two points of exit from the center
• Up-to-code kitchen with three-compartment sink and grease trap
• Fire alarm system hooked up to a central box
• Buzz-in security system
• Parking requirements
• Maintenance and repair fees

You’ll work with a daycare licensing representative from your town or city from the beginning of the process. They will help guide you through the regulatory process (you have to follow both city or town and state regulations), but it is still entirely your responsibility to keep track of all the costs that regulations and requirements.

• Who will run your daycare center?

Next, you want to list organization and management of your daycare center. Who’s the director and assistant director? What are the details of your ownership structure, board of directors, investor list, partners, and so on?

Write down the responsibilities and roles of everyone on your team. List an advisory board if you have one, list all employee salaries, incentives, referral bonuses for recruiting, and all such details. Also in this part of your business plan, you want to be clear about the legal structure of your business in terms of incorporation, type of partnership (I recommend a passive partnership) and other such information.

All percentages of ownership, investor details, stock details, and so on should be listed. Profiles of staff, directors, investors, and board members should include everything from past track record to education and unique skills.

What’s your marketing plan?

Following your organizational details, you should describe your marketing plan. Budget-friendly marketing strategies are the name of the game here.

Reach your target market

There’s no one way to do this, but I recommend thinking specifically about who your customer base is and marketing accordingly. In my case, I had great success with a marketing campaign where I put ads on the baby seat of grocery carts at a grocery store close to my daycare center.

Be specific

Know your target audience and what they’re looking for, and then show them that you fill that need.

Your marketing strategy should look at how to explain the unique strengths of your daycare center, how you’re going to grow, what staff, if any, you’re going to hire in marketing roles, and what methods you will use, from online ads to brochures and billboards. Having a solid marketing plan will help you get clear on your sales strategy.

Have a plan for funding

Finding funding is another area you’ll want to pay attention to when you’re crafting your daycare center’s business plan.

A funding request should list:

• How much you need now and in the coming three to five years
• What the money will be used for
• Any perks such as free months of rent you negotiated with a landlord that show the viability of your model
• Future potential situations such as a buyout, selling the business, and so on

Your financial projections should include forecasted income, expected enrollment growth, balance sheets, cash flow statements and projected/needed capital expenditures.

Projected costs

Keep in mind that as enrollment goes up you will need more staff as well, in order to meet required student-to-teacher ratios. You’ll also need more food and supplies when you have more kids enrolled.

Financial projections need to factor in many things including:

• Registration fees
• Wait-list fees
• Construction cost
• Staff appreciation day costs
• Software costs
• Supply costs
• Training costs
• Utilities costs
• Marketing costs
• Bank service charges
• Monthly nurse consultant costs
• Interior daycare supplies from clocks to filing cabinets to computers
• Accountant and legal costs

When you first start a daycare, you’re going to be in the red. It costs a lot to start a daycare, and it takes time to get going, as I mentioned. This is normal. You should see profits start kicking in after an initial period of six to 12 months of operation.

Capital costs

In terms of capital expenditures, the list is long, from monthly rent and utilities to staffing, construction, repair and supply costs as mentioned above. Digging deeper in these categories reveals even more items. Infants need everything from towels and cubbies to cribs and toys. Preschoolers need crayons, games, tiny chairs, craft supplies, and much more. List everything you can think of and then add more estimated cost.

For construction, you need to calculate the cost of:

• HVAC systems and ductwork
• Baseboards and finishing work
• Interior doors
• Buzzer system

Get a contractor and tradesperson or two to quote you on the job so you have an idea what it will cost. Don’t forget to factor in architectural fees and the cost of heating, electric, and utilities for the months the daycare is empty of students but contractors are working on it.

Securing loans

To get a bank loan for a new daycare center you’ll have to base a loan off the income of another business you own. That said, loans through the SBA can be standalone based on the viability of your business plan, so I recommend looking into them. If you buy a business, an SBA loan can also be a possibility.

For example, if you pay $500,000 for someone’s existing daycare and are required to put a typical 20 percent down ($100,000), you can cover the rest with an SBA loan. You’ll need to show a solid business plan and have good credit, but an SBA loan has the advantage of not drawing on your other sources of income as collateral.

Funding from investors

Another funding source, of course, is to drum up investors. Some people turn to family, friends, or colleagues. I would recommend keeping it strictly business and avoiding family or friends. If you do go this route, however, have a strong paper record to refer back to if this turn sour down the road.

Business partnerships

In finding a partner you want to ideally find someone who loves your plan but doesn’t have time or interest in being directly involved. This is called a passive partnership, where one partner supplies an investment and the other operates the business.

In terms of a repayment scheme, this will depend on your unique situation. For example, if an investor or investors give me cash up front for my financial projection that my daycare center will be making $200,000 per year after several years, I will repay 50/50, so one investor would get back $100,000 per year once the income target has been reached or if there are two investors they will get back one-third each, and so on.

After you address funding and costs in your business plan, add an appendix with supporting documentation. Keep this on hand for investors to look over.

Your appendix can include:

• Credit history
• Reference letters
• Backup details and sources of your market analysis
• Licenses and permits
• Legal documents
• Copies of lease agreements
• Building permits
• Utilities, maintenance, construction, plumbing, and other contracts
• List of all individuals associated with your daycare such as accountants, lawyers, and consultants
• Write your executive summary

Lastly, write down your executive summary . If you’re starting a daycare center, there’s only so much you can know before you have been in operation for multiple years. However, you can write down a lot about the purpose and strategy of your company, your own background and motivations for starting the daycare center, and your projections of future growth and customer needs.

At the end of the day, if you provide a great service and have a business plan methodically anticipates the needs of customers and kids, you will be a huge success in starting a daycare center!

• Download your daycare sample business plan PDF

Get started right now by downloading  this  daycare center business plan PDF  for free. You can also view other daycare sample business plans , or visit Bplans’ gallery of more than  550 sample business plans  if you’re looking for more options.

Sholom Strick is a daycare owner and the CEO of Hopping In , a free, web-based app that lets parents earn money when their child is absent from daycare. Hopping In is an easy-to-use, innovative tool that makes it simple for parents to book vacant spots on short notice. He is passionate about developing innovative solutions to improve the childcare industry. You can contact him at [email protected].

Table of Contents

• What’s your marketing plan?
• Have a plan for funding

Related Articles

6 Min. Read

Free Hair and Beauty Salon Sample Business Plan PDF

How to Write a Yoga Studio Business Plan + Free Sample Plan PDF

8 Min. Read

How to Write a Franchise Business Plan + Template

How to Write a Real Estate Business Plan + Example Templates

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

• MAKE MONEY ONLINE
• TRAVEL AGENTS
• IMMIGRATION LAWYERS
• SCHOLARSHIPS
• DISTANCE LEARNING
• STUDY GUIDE
• Loans and Grants
• NEW BIOGRAPHIES
• LEARNERSHIPS
• INTERNSHIPS
• MESSAGES / SMS
• CAREER TIPS
• LOTTO RESULTS

South Africa Childcare & Creche Fees

South Africa Childcare & Creche Fees

We gladly inform you about South Africa Childcare & Creche Fees

Parents with children under 18-months have the option to leave your child in a crèche or educare centre that specialises in care for babies and toddlers up to the age of three.

How much is a kindergarten in South Africa?

RANK	CITY	PRESCHOOL (OR KINDERGARTEN), FULL DAY, PRIVATE, MONTHLY FOR 1 CHILD
1	Johannesburg, South Africa
2	Pretoria, South Africa	240.76
3	Cape Town, South Africa	214.51
4	Durban, South Africa	192.93

How much profit can a daycare make?

In a smaller center that can accommodate thirty kids, with six full-time staff, annual profit could reach R20,000 to R30,000.

This is based on a monthly rate of R2500 per child. Net profit for your business will change according to your unique business model.

How do I start a daycare in South Africa?

a business plan containing: the business hours of the partial care facility.

the constitution containing the: name of the partial care facility.

an original copy of the approved building plans.

an emergency plan.

a clearance certificate.

a health certificate from the local municipality.

How much are school fees in South Africa?

Day school fees are also slowly escalating across the board, with at least 40 other schools now priced over R120,000 a year (or R10,000 a month).

Childcare centers in South Africa typically open at 06.30 and can look after your child for up to 12 hours. Expect to pay fees of around R1500 to R4500 a month depending on where you live.

Pre-schools in South Africa provide full day education, half day or three-quarter day. However, parents that work full-time should be able to find childcare facilities that accommodate Grade R children after school hours.

Many after school facilities provide space for children to continue their school work, whilst others focus on sports or games that are educational and fun for students. Each after-school runs their own program so you will probably need to look around for the most suitable option for your child. Childcare and creche fees vary between establishments.

Note: If you have questions or corrections regarding this post, kindly use the comment box below.

RELATED ARTICLES MORE FROM AUTHOR

Code ec (14) k53 driving school lessons, courses, requirements & form, code 10 learners test questions – free pdf download, k53 learners test questions and answers – free pdf download, leave a reply cancel reply.

Save my name, email, and website in this browser for the next time I comment.

• Disclaimer Notice
• Privacy Policy

PrDP Renewal Booking Online 2024-2025 | www.natis.gov.za

• Business Plans
• Business Ideas
• Business News
• Business Tips
• Testimonials
• Terms And Conditions
• REFUND POLICY
• DELIVERY POLICY
• PRIVACY POLICY
• WHATSAPP SUBSCRIPTION

Select Page

PRE-WRITTEN BUSINESS PLANS FOR SOUTH AFRICA (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

Posted by BizBolts | All Articles , Business Plans

We have several payment methods which you can use to buy the business plans.

Payment Method 1 (Visa card, Mastercard, Credit card, Debit Card) – R500

To purchase the business plans using Visa Card/Master Card click here: Business Plans Store . After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Click the button below to purchase business plans using Visa Card/ Mastercard.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

Payment Method  2 – (Instant EFT – FNB, Absa, Standard Bank, Nedbank, CapitecBank, Investec, TymeBank and African Bank. )

	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	850.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00
	500.00

Other Payment Methods

• Cash deposit into our FNB Company Bank Account
• EFT Transfer to our FNB Company Bank Account

Call/Whatsapp us on +27606334830 for the other payment methods. (Whatsapp us by clicking the link https://wa.me/27606334830 ). Email: [email protected] .

Testimonial 3

The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

Testimonial 5

The BizBolts poultry business plan led us down the path from start to finish. Contact details of suppliers of key requirements were included in the business plan. It helped us crystallize our strategy, and the business plan was well received by the bank.

Testimonial 2

I am extremely pleased with the business plan and financial statements. The business plan is very detailed & it meets my requirements. I feel better equipped with tools that can help me secure funding.  I would have no hesitation of recommending your business plans to other people.

Testimonial 6

It is with excitement and pleasure to inform you that I have been successful in securing a loan from my bank. This would not have been possible if not for the BizBolts Business Plan. Thank you for your help, my dreams are now coming true.

Testimonial 1

Many thanks to the BizBolts team for putting together a fantastic business plan, I could not have done this business plan on my own. I managed to get funding from investors to start my butchery business using your business plan.

Testimonial 7

Thank you BizBolts for the business plan. I received the business plan immediately after payment, it was money well spent ! I was able to easily edit the business plan. After using the BizBolts business plan, I can wholeheartedly recommend their products and skills.

Testimonial 4

The business plan was very helpful, you did a great job of taking ideas and putting them into words as well as pointing out other aspects of the business plan I wouldn’t have thought of. I got funding using your business plan and it’s now 4 months since I started my poultry business, and everything is going well.

About the Business Plans

We decided to introduce the South African business plans after noting that many South Africans were venturing into businesses without a full understanding of the industry, market, how to run the businesses, the risks involved, profitability of the businesses and the costs involved, leading to a high failure rate of the start-ups.

Our business plans will make it easier for you to launch and run a business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the business plans will lay out all the costs involved in setting up and running the business. They are designed uniquely for the South African market.

USES OF THE BUSINESS PLANS (PDF, WORD AND EXCEL)

These business plans can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your business
• As a project proposal
• Assessing profitability of the business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE SOUTH AFRICAN BUSINESS PLANS (PDF, WORD AND EXCEL)

All our pre-written plans include, but not limited to:

• Market Analysis
• Industry Analysis
• 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
• Marketing Strategy
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some South Africans in that type of business fail, so that you can avoid their mistakes
• Ways to raise capital to start your business in South Africa

All our agriculture pre-written business plans include technical aspects of how to keep and rear the animals / farm the crops. They also include a mini-directory with contacts which will prove to be helpful in launching and running the business. E.g. for broiler poultry we will provide the contact details for South African suppliers of feeds, equipment, day old chicks, abattoirs, training companies etc)

The Business plan package consist of 4 files

• Business Plan – PDF file (Comprehensive – Between 70-105 pages)
• Business Plan – Editable Word File (Comprehensive – Between 70-105 pages)
• Business Plan Funding Version – Editable Word File (Short version for applying for a loan – between 35-50 pages)
• Business Plan Automated Financial Statements – (Editable Excel file)

The financial statements are automated. This implies that you can change an item eg unit price, and all the other financial statements will automatically adjust to reflect the change.

About The Author

BizBolts (Pty) Ltd is a business research company based in Johannesburg, South Africa. We sell prewritten business plans for various industries including livestock production, crop farming and retail businesses. BizBolts also publishes articles on business ideas, business news, business tips, personal finance, and entrepreneur profiles.

Related Posts

Starting Meter Taxi Business In South Africa – Business Plan (PDF, Word & Excel)

November 10, 2023

Starting a Toilet Paper Manufacturing Business in South Africa – Business Plan (PDF, Word & Excel)

February 20, 2023

Starting Minibus Taxi Business In South Africa – Business Plan (PDF, Word & Excel)

Starting A Brick Manufacturing Business in South Africa – Business Plan (PDF, Word & Excel)

April 13, 2023

Follow Us On Facebook

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!