Daycare Business Plan: Free Template, Sample Plan and Startup Costs (2026)

By The Zarla Team · Updated September 2026

Typical startup costs of $4,250–$19,300, what owners really earn, the licenses you'll need in the US, how to write every section, and a complete sample plan for Little Oaks Family Child Care — free to download as a Word template or PDF, or make it yours in five questions.

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The numbers first

$4,250–$19,300to start a daycareTypical US range, required lines

$200–$350/wktypical tuition per child, home daycare

4–8children a licensed home provider can usually enroll

~$3,000to start lean in a home that already suits it

Startup costs

What it costs to start a daycare

Typical US ranges, whole dollars. Optional lines are marked and left out of the total. The struck-through lines are what a Zarla plan covers, with the reason beside each; the generator turns this table into your own list.

Daycare startup costs
Item	Low	High
State licensing application, inspection and background checks	$100	$500
CPR, first aid and required pre-service training	$100	$400
Childproofing, gates, fire extinguishers and safety equipment	$500	$2,000
Cribs, cots, high chairs, tables and storage	$1,000	$4,000
Toys, books, art supplies and learning materials	$500	$2,000
Outdoor play equipment and fencing	$500	$3,000
Child-care liability insurance (first year)Home policies almost never cover a daycare — you need a separate policy.	$500	$2,000
Business registration and EIN	$50	$300
Website and Google Business ProfileIncluded with ZarlaYour Zarla plan includes the website and walks you through your Google Business Profile — a designer typically charges $1,500 or more to build one.	$0	$1,500
Enrollment, billing and parent-communication software (first year)Mostly included with ZarlaYour Zarla plan includes invoicing and a family contact list with your website — no separate billing subscription to start.	$0	$600
Working capital (first two months)	$1,000	$3,000
Home modifications for licensing (a second exit, a bathroom) (optional)Optional — typically $1,000–$10,000.	$0	$0
Typical total (required lines)	$4,250	$19,300

Startup costs, tuition and licensing: the Zarla guide “How to start a daycare” (2026). Ranges are what a small operation typically pays in the US; replace them with real quotes as you get them.

Monthly costs

What it costs to run each month

Typical monthly operating costs for a small operation, before the owner's own pay.

Cost	Typical monthly range
Food and snacks (some offset by the federal food program)	$200–$800
Diapers, wipes, art and cleaning supplies	$100–$400
Liability insurance	$40–$170
Extra utilities and home wear	$100–$300
Billing and parent-communication software (included with Zarla)	$0–$50
Ongoing training hours and renewals	$10–$50
An assistant (once enrollment supports it)	$0–$2,500

Typical total: $450–$4,270 a month. Ratios, licensing thresholds and the federal food program: typical published US state child-care licensing rules, restated as US ranges. Lines marked (included with Zarla) are what those tools cost separately — with Zarla they are part of one monthly plan.

How much a daycare makes

A full home daycare at typical tuition earns a solid living for one person with low overhead; the ceiling is your licensed capacity. The federal child-care food program can offset meal costs for eligible providers.

$200–$350/wk — typical tuition per child, home daycare
4–8 — children a licensed home provider can usually enroll
~$3,000 — to start lean in a home that already suits it

Licenses and permits

Licenses, permits and insurance for a daycare

What you need before you can legally trade in the US. Rules vary by state and city — confirm each item with your local licensing office and an accountant.

Requirement	What it means
State child-care license or registration	Required in every US state above a small number of children; involves an application, a home inspection, background checks and training. Rules and thresholds vary by state.
CPR, first aid and pre-service training	Nearly every state requires current CPR/first aid and a set of pre-service training hours before licensing.
Child-care liability insurance	Not always legally required, but essential — standard homeowner and renter policies exclude a daycare.
Business registration and EIN	Register the business; an EIN lets parents claim the child-care tax credit with your number instead of your SSN.
Local zoning and home-occupation rules	Some cities and HOAs restrict home businesses; check before you spend on the space.
Food program enrollment	Optional in the US: the federal Child and Adult Care Food Program reimburses eligible providers for meals.

How to write it

How to write a daycare business plan

The sections a lender, a landlord or an investor expects to see — and what goes in each one for a daycare. Little Oaks Family Child Care's sample plan below follows this outline exactly.

Executive summary

One page, written last: what the business is, where it trades, who it serves, what it costs to start — typically $4,250–$19,300 for a daycare — and where that money is coming from. Someone who reads nothing else should still know the whole plan. For Little Oaks Family Child Care below, that page says: a licensed home daycare for six children, ages 1 to 5 in Sacramento, CA, $10,725 to start.

Products and services

What you offer and how you charge for it. For a daycare that usually means full-time care for toddlers and preschoolers; part-time and half-day spots; and before- and after-school care for school-age siblings. Keep the base offer simple and price the add-ons separately.

Market analysis

Who pays, and why they'd pick you: working parents within a short drive who need reliable weekday care; families who prefer a small home setting to a large center. Name the two or three local competitors a customer would compare you with and the one thing you do better. Skip the market-size statistics — a lender wants your customers, not the industry's.

Marketing strategy

How those customers find you: Google Business Profile and Google Maps — “daycare near me” and “home daycare” plus your city; word of mouth from enrolled parents — the main source for home providers; and your state's child-care referral network and local parent groups. Put a cost and an expected result beside each channel, and say which one you'll start with.

Operations plan

The week to week, plainly: enrollment capped by your state's ratio and your license — never over; a written daily schedule of meals, naps, play and learning that parents can see; and tuition collected weekly or monthly in advance, with a signed enrollment agreement. If the plan can't say who does what on an ordinary Tuesday, it isn't finished.

Startup costs

Every line you'll spend before you start, with a running total — typically $4,250–$19,300 for a daycare, and the two biggest lines (cribs, cots, high chairs, tables and storage; outdoor play equipment and fencing) move it most. The table above is the starting list; replace each range with a real quote as you get one.

Financial plan

Typical monthly costs ($450–$4,270 a month for a small daycare, before your own pay), the monthly sales you're aiming for (Little Oaks Family Child Care plans on $7,500 a month), and how many months it takes to recover the startup budget. Use ranges until you have quotes, and never invent a revenue forecast to make the page look full.

Milestones, risks and the appendix

The first 30 days as a dated to-do list. Little Oaks Family Child Care's begins: read your state's home child-care licensing rules and start the application. Then the risks, said out loud: income is capped by licensed capacity — one empty spot is a large share of revenue. Then the licenses and permits you'll need, and what a lender will ask for beyond the plan: two years of personal tax returns and a personal financial statement, for a start.

The sample plan

Little Oaks Family Child Care is a fictional daycare in Sacramento, CA — a licensed home daycare for six children, ages 1 to 5. The plan below is exactly what the free generator writes from five answers, in the outline above, with every number calculated from the figures on this page rather than invented. Read it as a worked example, then make it yours.

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Business plan

Sample plan · fictional business

A complete daycare business plan: Little Oaks Family Child Care

Sacramento, CA · Startup plan · a fictional daycare, written by the free generator from five answers

Executive summary

Little Oaks Family Child Care is a new daycare in Sacramento, CA offering full-time care for toddlers and preschoolers; part-time and half-day spots; before- and after-school care for school-age siblings; and a simple daily routine of play, meals, naps and early learning. The model is a small licensed home setting, enrolled to capacity with a waiting list, priced from real costs, with trust and routine as the whole pitch.

Startup budget: $10,725 across 11 items, funded from savings. Target: $7,500 in monthly sales.

Twelve months from now, success looks like this: Six enrolled children with a waiting list, a helper hired for the afternoons, and every parent leaving a review

Products and services

Little Oaks Family Child Care's core service is full-time care for toddlers and preschoolers. Every day follows the same written routine of meals, naps, play and learning, enrollment never exceeds the licensed ratio, and parents see exactly what their child did each day.

Full-time care for toddlers and preschoolers
Part-time and half-day spots
Before- and after-school care for school-age siblings
A simple daily routine of play, meals, naps and early learning

Market analysis

The customers are working parents nearby who need care they can rely on every weekday, and who prefer a small home setting where their child is known by name to a large center.

Working parents within a short drive who need reliable weekday care
Families who prefer a small home setting to a large center
Parents of siblings who want one provider for a toddler and a school-age child
Employers and neighbors nearby with shift-based schedules

Marketing strategy

Most families will find Little Oaks Family Child Care on Google and through word of mouth from other parents — searching for a daycare near them, then trusting the one other families recommend. Reviews on the Google Business Profile, listings on the state referral network, and a website with the routine, ages and a tour request form turn a search into an enrollment.

Google Business Profile and Google Maps — “daycare near me” and “home daycare” plus your city
Word of mouth from enrolled parents — the main source for home providers
Your state's child-care referral network and local parent groups
Pediatricians, preschools and churches that families already trust
A website with your daily routine, ages, openings, tuition from and a tour request form

Operations plan

The provider runs the day in year one, keeps attendance, incident and medication logs, collects tuition in advance, and adds an assistant only when enrollment is full and the pricing proves it can cover wages.

Enrollment capped by your state's ratio and your license — never over
A written daily schedule of meals, naps, play and learning that parents can see
Tuition collected weekly or monthly in advance, with a signed enrollment agreement
Childproofing, emergency plans and daily health checks as routine
Attendance, incident and medication logs kept every day

Startup costs

What it will take to open the doors, funded from savings.

Startup costs
Item	Amount
State licensing application, inspection and background checks	$300
CPR, first aid and required pre-service training	$250
Childproofing, gates, fire extinguishers and safety equipment	$1,250
Cribs, cots, high chairs, tables and storage	$2,500
Toys, books, art supplies and learning materials	$1,250
Outdoor play equipment and fencing	$1,750
Child-care liability insurance (first year)	$1,250
Business registration and EIN	$175
Website and Google Business Profile	$0
Enrollment, billing and parent-communication software (first year)	$0
Working capital (first two months)	$2,000
Total	$10,725

Typical range to start a daycare in the US: $4,250–$19,300. Your list is what you decided to spend — replace estimates with real quotes as you get them. Website and Google Business Profile: Your Zarla plan includes the website and walks you through your Google Business Profile — a designer typically charges $1,500 or more to build one. Enrollment, billing and parent-communication software (first year): Your Zarla plan includes invoicing and a family contact list with your website — no separate billing subscription to start.

Financial plan

The numbers below come from your own startup list and typical monthly costs for a home daycare in the US. Overhead is low and income is capped by licensed capacity, so tuition and full enrollment decide the outcome.

Typical monthly operating costs for a daycare: $450–$4,270 a month, before the owner's own pay.

At $7,500 in monthly sales, Little Oaks Family Child Care would clear $3,230–$7,050 a month before owner pay and tax, and recover the $10,725 startup budget in roughly 2–4 months.

Typical monthly operating costs
Cost	Typical range
Food and snacks (some offset by the federal food program)	$200–$800
Diapers, wipes, art and cleaning supplies	$100–$400
Liability insurance	$40–$170
Extra utilities and home wear	$100–$300
Billing and parent-communication software (included with Zarla)	$0–$50
Ongoing training hours and renewals	$10–$50
An assistant (once enrollment supports it)	$0–$2,500

US ranges for a small operation; replace with your own figures as you learn them. Lines marked (included with Zarla) are what those tools cost separately — with Zarla they are part of one monthly plan.

Risks and honest downsides

Every daycare plan should say out loud what can go wrong. For Little Oaks Family Child Care, the real risks are:

Income is capped by licensed capacity — one empty spot is a large share of revenue
Licensing takes weeks to months; you can't enroll until it's done
It's long days with no cover — illness or a family emergency means closing
Liability is real; insurance, logs and safety routines aren't optional
Parents' work changes and families move; enrollment turns over every year

Licenses, permits and insurance

What Little Oaks Family Child Care needs before it can legally trade in the US. Rules vary by state and city — confirm each item with your local licensing office and an accountant.

State child-care license or registration — Required in every US state above a small number of children; involves an application, a home inspection, background checks and training. Rules and thresholds vary by state.
CPR, first aid and pre-service training — Nearly every state requires current CPR/first aid and a set of pre-service training hours before licensing.
Child-care liability insurance — Not always legally required, but essential — standard homeowner and renter policies exclude a daycare.
Business registration and EIN — Register the business; an EIN lets parents claim the child-care tax credit with your number instead of your SSN.
Local zoning and home-occupation rules — Some cities and HOAs restrict home businesses; check before you spend on the space.
Food program enrollment — Optional in the US: the federal Child and Adult Care Food Program reimburses eligible providers for meals.

Milestones: the next 30 days

The first month's to-do list for Little Oaks Family Child Care, in order:

Read your state's home child-care licensing rules and start the application
Complete CPR, first aid and the required pre-service training
Childproof the space and fix anything the inspection checklist flags
Get a child-care liability insurance quote and register the business
Set tuition from local rates and your true costs, and write the enrollment agreement
Set up a free Google Business Profile and put a website with your routine and openings live
Tell every parent, pediatrician and preschool you know that you're opening
Enroll in the food program if you're eligible, and ask early families for reviews

Appendix: what a lender will ask for

This plan tells the story and shows the numbers. If you take it to a bank, expect to be asked for these documents as well:

Two years of personal tax returns and a personal financial statement
A month-by-month 12-month cash-flow projection based on realistic enrollment
Your license or the status of the application, plus proof of insurance
A list of enrolled or waitlisted families with expected weekly tuition
Quotes for any home modifications you're borrowing for
Your credit report and anything you can offer as collateral

Every figure in Little Oaks Family Child Care's plan is a typical US range from the tables above or arithmetic on the sample's own startup list and $7,500 monthly sales target — nothing is a market projection. The template downloads above are the same plan with [bracketed] lines for your own business.

Free

Make this sample plan yours

Five plain-language questions, and the generator rewrites Little Oaks Family Child Care's plan as your own — your name, your city, your services and your startup list, with every number recalculated. No sign-up to write it.

Write my daycare plan Or download the free template (Word)

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Keep going

The plan is the thinking. These are the next pieces for a daycare:

Daycare business plan FAQ

How much does it cost to start a daycare?

Typically $4,250–$19,300 in the US, counting every required line in the table above — or about $3,000 to start lean in a home that already suits it. The range is wide because the biggest items (cribs, cots, high chairs, tables and storage; outdoor play equipment and fencing) depend on what you already have and where you are. The free generator turns the table into your own list with your own figures.

How much can a daycare make?

$200–$350/wk typical tuition per child, home daycare; 4–8 children a licensed home provider can usually enroll; ~$3,000 to start lean in a home that already suits it. A full home daycare at typical tuition earns a solid living for one person with low overhead; the ceiling is your licensed capacity. The federal child-care food program can offset meal costs for eligible providers.

What licenses and permits do I need to start a daycare in the US?

State child-care license or registration, CPR, first aid and pre-service training, Child-care liability insurance, Business registration and EIN, Local zoning and home-occupation rules, Food program enrollment. Rules vary by state and city — confirm each item with your local licensing office and an accountant before you spend on it.

Do I need a business plan to start a daycare?

You need the thinking more than the document: what you'll offer, who pays, what it costs to start, what it costs to run each month and how long the budget takes to recover. A lender, a landlord or an investor will ask for the document — and for things beyond it: two years of personal tax returns and a personal financial statement; a month-by-month 12-month cash-flow projection based on realistic enrollment. The sample plan above has every section; the generator writes yours from five questions.

Can I turn this business plan into a website?

Yes — that's the point. Your plan's own marketing section says people will find you on Google and through word of mouth; a website is how both happen. Zarla builds your daycare website from what you've already told us — free to build, pay when you publish.

Is there a free daycare business plan template?

Yes. The daycare business plan template on this page downloads free as a Word document or a PDF — no email, no sign-up. It's the complete plan for a placeholder business with [bracketed] lines to fill in, and the typical figures for a daycare already in the tables. The generator writes the same plan with your own name, city, services and numbers in five questions.

What should a daycare business plan include?

The sections a lender, a landlord or an investor expects: an executive summary, products and services, market analysis, marketing strategy, an operations plan, startup costs, a financial plan, the risks, licenses and permits, milestones and an appendix. Little Oaks Family Child Care's sample plan above has all eleven, and the section-by-section notes explain what goes in each one for a daycare.