Make sure to find out if it is a gross or net rate.
How many kids are in your daycare center’s neighborhood and how many daycare centers already exist to serve them?
Let’s use the example that you need 35-square-feet for every kid in a classroom up to a max classroom size of 20.
That means you need a classroom of at least 700-square-feet (20 multiplied by 35).
Maybe it’s your prime location, your previous experience starting or helping start a daycare center, connections with top-notch staff willing to work for your daycare center, or other unique tools or services you can offer that distinguish you from your competition. Study statistics of the childcare industry: how big is it?
How much do economists and experts project that it will grow in the next five years? Using some of the information from real estate websites can be a good approach, like I mentioned above.For detailed information on the size of your primary market, there are helpful resources such as this market research guide from the US Small Business Administration. For example, is the median age of your daycare center’s neighborhood quite young or more elderly? Note down how your daycare is going to help these different kinds of parents.Also, keep in mind other factors: Are you in an area with large amounts of seasonal work where the workforce and population shrinks during winter or grows massively during summer?Working out a business plan for your daycare center can be a challenge.There are many expenses you must calculate—more than you’d think!First of all, start with a description of your daycare center.You want to review all the different components of your business model. Write about the market and how you’re fulfilling demand.Another thing to watch out for with monthly rent is all the added costs.Say your price is per square-foot and your building is 5,000 square-feet. Divide that by 12 to get your monthly rent: ,333.Will you offer discounts, or accept government-subsidized or reduced payments from lower-income parents? For detailed information on the size of your primary market, there are helpful resources, such as this guide from IBISWorld.This insightful article from Forbes is also a good resource, and notes that the U. Bureau of Labor Statistics expects daycare to be one of the fastest growing industries in the next few years.