Is Running a Childcare Centre Profitable?

Owning a childcare business can be one of the most rewarding companies to start. You get to provide amazing service, play with children, teach them, and make a living all at the same time. The more specialty services you can offer, the more profitable your business will be. In this case, it may even be worth it to go to school for early childhood development or teaching. There are many ways your childcare center can be profitable.

Can a childcare center be profitable?

Many childcare centers can become profitable by adding additional services to offer parents. The average home daycare owner makes $9.81 an hour. The more children you watch the higher your hourly rate will go up, leading to higher profits.

There are many different services you can add to your childcare center that may help build profits. If you love your business and the services you provide, the money will follow. Be dedicated to the children and families you work for. When you become known for wonderful service, it will help drive more business to you.

How to start a profitable childcare center

It may seem like an easy business to get into, but the truth is there are specific steps you will need to take to become profitable. This may be the natural next step in your career, but there are some tips we recommend you follow before starting your childcare center.

Business Plan

Having a business plan can be crucial to your center and may actually help you become more profitable. You will want to plan out your long term and short term goals. The next thing you will want to make sure you address in your business plan is adding other employees and the steps to do that. Every detail should go into your business plan and may even help you acquire loans if necessary.


Is Running a Childcare Centre Profitable?In every state or region you live in, you will need to look at specific business licenses. You may need to acquire a license in some areas if you are a home-based business looking after more than three kids under the age of two or more than five kids under the age of two. You can plan to offer unlicensed childcare, but in most cases, it is much safer to avoid any risk by having these licenses right away.

Take A Class

You may not need a degree to open up a business, and it may not seem hard to watch kids. However, taking a class on childhood development can help you understand the kids you are watching more. It can allow you to learn a little bit more and teach the parents about certain behaviors. Having a background with kids is a wonderful way to start, and having some classes can show you are dedicated to your job. This will help build your brand and can also help you profit.

Location Is Everything

If you plan to run your business at home, that is a wonderful step to a successful childcare center. However, this may not be the most profitable way to run your business. You will limit how many kids you can watch and how many other employees you have. If you plan on setting up a bigger childcare center with a few more employees, you will want to find a good place to start. Take a look at multiple properties or buildings for rent. The more space and the more employees you have, the more money you can generate by hosting more kids.

Once you take these first few steps you can ensure your business will be up and running smoothly. The more you can offer the parents and children the more likely you are to have a profitable business.

Check out our step by step guide for starting a daycare business HERE!

Extra Services To Offer

Adding extra services can help you build your brand and keep the parents satisfied. As someone who owns a childcare business, you want to ensure that you have repeat customers. When the kids and parents are happy, you will be more profitable than your competitors. Here are some extra things you can think about adding in.

Educational Activities

If you want to be known for something specific, one of the best ways is to focus on it during activities. If you used to be an art teacher and want to promote growing artists and inspire children, you will want to ensure there is a period or one optional day a week to sit down and provide art lessons. You can add in music, math, English, or anything else. This is when a degree will come in handy.

Outside timeIs Running a Childcare Centre Profitable?

You will want to let parents know that the kids aren’t stuck inside all the time. Build a playground or outside nature area that allows the kids to safely and under supervision, explore the outside world. No one wants their kids to be stuck inside full time, and adding this into the day can ensure happy kids.

Untraditional Hours

If you know some kids are in need, have a program set up that allows them to spend the night. Or try to promote one night a month where the parents can come by later than normal. This could act as a fun movie night for the kids and date night for the parents. Hosting special things like that can help draw in business.

Teach New Things

Every month you can come up with something to teach the kids you watch over. Send it out to the parents to let them know what you are focusing on and get their input. You can switch it up every month and focus on new things.

Costs Of Running A Childcare Business

There are many costs you may be unaware of when starting your childcare business. These are some of the things you will have to think about when starting. Here are a few costs you may not have thought about before opening up and useful things to invest in if you haven’t yet.


You will want to ensure that you have a mix of fun toys and educational toys. This will help keep your kids occupied and show the parents what kind of space their kids will be in. Toys look inviting and can help keep the kids happy.

Classes or Programs

If you want to ensure your kids learn things every month, it can be great to get extra help. You can buy classes like kids, yoga, and Zumba and host them through an online platform once a day. This will let the parents know you are investing in their kids, and it will give the kids something to look forward to.


This is essential and often overlooked. When children are in your care all day long, it will be normal for them to get hungry. Of course, you can ask all parents to send lunches with kids. However, there will be times you need to feed the kids, and having snacks is a must for a daycare owner.

Cleaning supplies

You will want to ensure that all the rooms are clean and disinfected. Kids are not always the cleanest, but it is your job to take care of the environment and ensure that the spread of germs is limited. You can do this by getting good cleaning supplies and cleaning once a night when all the kids leave.

FurnitureIs Running a Childcare Centre Profitable?

Depending on the ages of your kids, you will want furniture. This can include roll-out pads for naps, changing tables, and maybe even swings for babies. You will be with kids all day, and many times that includes having a quick nap. If you have other staff members you also may want to furnish a staff lounge area where they can keep their lunches, take breaks, and rest.

Final Thoughts

Compared to other businesses, this may not be the most profitable, but it is highly rewarding. If you can add more services, you can bring in more money and provide the kids something fun to do. The more you allow the kids in your care to learn, grow, and play, the happier they will be, and the happier parents will be. You will want loyal customers to ensure the highest profits.

Frequently Asked Questions (FAQ)

Is a childcare center worth it?
Owning a childcare center is a demanding job with a lot of competition. It is not easy to create a successful business in this area. However, the connections you make with the families can make the process worth it.

Education is needed to own a childcare business?
There is no degree required to be a business owner, and there is no degree needed to own a childcare business. However, we highly recommend having a background in childhood development or even a business degree.

What does a daycare owner do?
When you start writing your business plan, you will identify your role. You may take care of the kids if you run a solo business, or you may oversee workers with their children. Every business owner is different.


Is Running a Childcare Centre Profitable?

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.

To learn more on how to start your own daycare checkout my startup course and documents here.