19 October 2018

How Much Does it Cost to Build a Child Care Center?

The rapidly growing demands of early learning and childcare centers have triggered
exponential growth in the early education sector. As more parents continue to opt to enroll their young kids in childcare centers, the demand is expected to grow further. As a result, many investors have started to see child care centers and early education industry as a lucrative industry to invest in. There are generally two kinds of investors who take up childcare centers as a business venture.

One group consists of those who start from scratch, build a brand over a year and may or may not license the venture out to other suppliers for a fee to achieve both, profits and size growth. The other group of investors is one who has the limited expertise of the education sector and plays safer by buying an established franchise. Either way, the venture does have its own set of costs that investors should know about before the go ahead with the project.

Start-Up Costs


The initial start-up costs of opening up a childcare center are dependent upon a lot of factors and elements and can vary for every investor. If you plan to start a small scale childcare facility at your home, it will cost you much lesser. The cost will increase if you will rent out a running facility and will further increase if you will build a facility from scratch. If you intend to buy a franchise, then add the licensing fee to the initial costs.

Operational Costs


Other than the first overlay, the next immediate costs that you need to consider are the overheads. Other than the utilities, maintenance costs, rent payments, and employee salaries are also part of the operational costs. These costs are again lower for those who intend to run a home-based establishment since they can save up on extra rental costs. Recruitment of staff and employee salaries are also an essential element of operational expenses. Operational costs also tend to vary according to the facilities you intend to offer and the number of hours your facility is going to operate for.

Running Expense


The daily running expense of your childcare facility will be mostly variable. They mainly depend on the supplies, equipment and curriculum materials that you will be using. Any stationaries, supplies, books for reading, art supplies, learning tools, and toys, etc. will be part of this particular head. The cost of adding fixtures and furniture such as tables, chairs, etc. will also add up.

Legal Costs


You cannot just get up and start a childcare center one beautiful day. Like every other business, there are permits and licenses involved. You will have to register your venture with the authorities, and the documentation may cost a certain amount. The licensing costs may vary from state to state.

According to a research the cost of starting up a childcare center can average over $95000. The final prices depend on the various factors that are involved and may vary according to the scale of the facility. If we talk about an example of day care center, Explore & Develop is a perfect one.

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