Daycare centers are absolutely necessary in today’s society. So, it makes sense that you might be considering opening one of your own. And that means that we can say, with certainty, that you want to know how much money daycare center owners typically make.
In this article, you will find the answer to the question—how much money can you make by owning a daycare center? Salaries for daycare center owners range from about $30,000 up to just under $60,000. There are different factors that affect how much money you’ll be taking home. They include the city you’re in, how many kids you have enrolled, and how many hours you keep children each day.
Now let’s take a deeper look at the things that will affect how much you can make owning a daycare center.
Location, Location, Location
The location you choose to open your daycare center will make a huge impact on the profits you make, and in turn on your salary. The reason for this is that it costs more to live in certain places. For example, the cost of living in the D.C. area is more than somewhere like El Paso, Texas, the city with the cheapest cost of living according to USA Today.
Cities that are more densely populated also have a much larger base of people to pull customers from. You can set your prices higher in places that have more people with the means to pay more for childcare. You still want to make sure that you remain competitive, but you’ll be able to charge more so that you can make enough money to sustain yourself and your family comfortably in the environment you live in.
It’s not enough to just consider an area based on the cost of living and the population there though. You also need to look at the competition in the area. Having some competition can be really good for your business because it gives you someone to set yourself apart from. But if you try to open a daycare center in an area that is already saturated with daycares, you might have a tough time acquiring customers. Make sure the area you choose has a reasonable, not excessive, amount of competition.
The Number of Kids You Can Care For
Every child you are caring for means more money for your business. However, this will be limited by the regulations and laws put in place by your local government. It’s important that you are aware of what the laws are in your city and state.
If you are planning on having employees that will also be caring for the children coming to your daycare center, you will be able to have more kids in your care. The number of children you are allowed is based on a child to caretaker ratio. So, having more help will allow you to generate more profits for the business, but that also means you have more expenses because you have to pay your employees. You will also likely have more expenses in terms of supplies.
There are regulations governing the overall number of children you can care for. There are also guidelines for how many children you can have in the daycare center at one time that are of certain ages.
If you are planning on caring for infants in your daycare center, you’ll have to have the necessary equipment to do so, such as cribs, changing tables, appropriate chairs, and such. This stuff can cost you more. That coupled with the fact that caring for an infant is more involved than caring for older children means you can charge more for watching this age group.
The bottom line here is the more kids you care for, the more money you’ll be pulling in. But you can’t just take in as many kids as possible. The number of children you can have in your care at one time is regulated by the government in your area. When you’re trying to figure out how much money you can make as a daycare center owner, you need to make sure you’re aware of what the laws say about the maximum number of children you can care for and the age group limitations.
Hours of Operation
The hours of operation you decide on can make a difference in how much money you can make as a daycare center owner. The typical hours for most daycares are from 8 a.m. to 5 or 5:30 p.m. It’s up to you if you want to stick to this or do something else.
You can plan out your hours based on full days, or you can decide that you want to offer some slots that are for half days. A good idea would be to do a little research in your area before you open your daycare center. This way you can find out what the needs are for the parents who might choose to use your daycare.
Something that could prove to be really lucrative and give you a leg up on any competition in the area is to set your hours either outside of the norm or to include hours that extend into the off-hours. There are parents who have a tough time with their schedules because most daycares don’t offer the hours that they need childcare for. If you are open for hours that many other centers aren’t, you can easily find customers and you can charge more for those hours because you’re offering something that no one else is.
When you’re setting your hours, make sure you consider what it will take to be open for any extended hours. You will be paying more for utilities, payroll expenses, and other various items. It is wise to think about how the hours of operation at your daycare center will affect your personal life too. You want to be able to make a good salary but not without completely sacrificing your work-life balance.
Your takeaway here is that you can make a decent living by owning your own daycare center. How much you can make as a daycare center owner is dependent on a few different factors. Your salary will be based on where your daycare is located, how many kids you are caring for, and what hours you operate. Make sure to consider all of these when you’re developing your daycare center business plan.
Are there limitations for the number of hours children can stay in daycare?
There can be limits on the number of hours kids can be in daycare per day. Each governing state has the ability to set these limits. You need to make sure you are aware of any regulations that may be in place limiting how long children can be in your care.
Some families get financial help with daycare costs. The agencies that give daycare costs assistance to families who need it can also put limitations on how long the kids can be in daycare. It’s important that you are aware of what families are receiving assistance so that you are abiding with the terms of the agreements that have been established. Make sure you have paperwork for your customers to fill out that request all of the pertinent information you need to operate accordingly.
Is it better to start an in-home daycare or a daycare center in another location?
This question can only be answered by you. This is really based on your preferences. One of the things you can consider here is how much each option costs to get started. Typically, an in-home daycare will cost much less to get up and running. Your home cost is something you are already paying for so there’s no additional cost for a place to house your daycare center.
If you go with an in-home daycare, you may be required to make some necessary updates to make your home safe for children. Obviously, though, you’ll have to make changes to any other space you find for opening a daycare center also. An exception would be if you are lucky enough to find a space that has been operating as a daycare center already.
Turning your home into a daycare means that you’ll have other people’s children in your personal space during all of your operating hours. For some people, this might be less than ideal. In that case, a separate space for your daycare center is a much better option.
There are different regulations governing an actual daycare center. In-home daycares have regulations to abide by too, but there are fewer of them and they aren’t as stringent. Whichever route you decide to take, you need to make sure you are absolutely clear on what your governing guidelines and restrictions are. Conducting your daycare business outside of the laws that are put in place to keep children and your employees safe can be very costly to you and the families that trust you to care for their little ones.
Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.
Get more information about opening your own daycare business right here with our handy startup documents!