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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