The first step to start a profitable day care center is to understand what makes them profitable. There are many daycare centers operating with full enrollments of 35 to 65 children, but are barely breaking even. Generally, this is due to imposed regulations causing big overhead costs. In order to rake in annual profits that fall to “before taxes” bracket of $100,000; you’ll need facilities to care for 150 to 200 children.

To begin these simple steps on how to start a daycare, check with local government rules and regulations. In some states, a minimum area is required per child, both inside and outside the building, and requires provision of at least one hot meal per day, a licensed teacher for every 15 to 20 children, and sometimes, a licensed nurse may be requisite. Design your business plan to meet these regulations.

You can start operating a baby-sitting service, by expanding from your profits and expand gradually, through the long-term benefits of establishing a good reputation for quality service. Once beyond the baby-sitting stage, and demand for your service has increased, try locating in your church or in your area's civic club facilities. Scout for a vacant house to rent or buy. A large home with a large backyard would match your needs at this stage. Have a zoning approval from your city council first before signing a rent lease and finalizing your plans.

If you have a good business plan in order, look for financial backing or sponsorship by a church or institution. A partnership or sponsorship agreement with an established local organization will solve a lot of problems for you, not only in the space but in assistance with start-up costs and approval from the city government.

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