Costs for starting a daycare vary widely depending on whether you open a home daycare or a full childcare center. Let’s break down the average expenses so you can plan wisely.
Licensing and Legal Fees
Expect to spend $100–$500 on applications, background checks, and inspections.
Facility and Safety Setup
Childproofing equipment, safety gates, fire extinguishers, smoke alarms, and fencing may cost $300–$1,000 or more.
Supplies and Equipment
Cribs, cots, high chairs, toys, books, art supplies, and storage can run $500–$3,000 depending on new vs. used items.
Insurance
General liability insurance for home daycare can range from $300 to $1,200 annually.
Ongoing Costs
These include food, cleaning supplies, marketing, and potentially payroll if you hire help.
Estimated Totals
• Home daycare: $1,000 to $5,000
• Center-based daycare: $10,000 to $50,000+
Tips to Save
• Buy second-hand equipment
• Apply for startup grants
• Use free online curriculum resources
• DIY marketing using social media
Understanding startup costs gives you the clarity to plan realistically and fund your daycare effectively. With smart budgeting, your vision is within reach.