If you are to enter the child care industry you will require start up funding to get your new business started off right. Depending on the kind of daycare center that you want these costs can range anywhere from four figures to hundreds of thousands of dollars.

To start off the right way you need to be aware of all the expenses that you can expect and you can do this by breaking them down and making a list. In this article we go through some of the major start up expenses facing new players wanting to get started in the daycare business.

1) Location – The main concern when it comes to startup costs is whether you start up a home-based daycare or rent commercial premises. You can run an extremely productive business by using your home although you will lose large parts of your family’s living environment. There are also redecorating costs associated with converting part of your home into a daycare environment that is child friendly.

2) Safety Standards and Licensing – Check with the authorities in your city to make sure that you know about all the requirements that you need to comply with to run a business from your home, and to operate a child care center specifically.

3) Necessary Equipment – You will need to buy toys, games, play structures and art and craft supplies to mention just a few things. Having a good idea of your schedules and curriculum is the key for calculating your requirements. When purchasing furniture, toys and other items always go for quality as kids often wear things out quickly.

4) Daycare Business Administration – Set one room aside for an office or have an open office and reception area. Look into the costs associated with managing a small office like computer set up and ADSL connection, getting a phone line installed and initial stationery purchases.

5) Unexpected Costs – Remember to include a considerable provision for unexpected expenses that may come up. Some entrepreneurs also include an allowance for operating costs for the first couple of months of the businesses life in their start up costs. The business most likely won’t be making much money during the first two or three months so you must know precisely how much capital you need to tide yourself over until the business is making decent profits.

6) Business Advertising – You will be facing initial advertising costs as you attempt to spread the word about your new business. You will need to start advertising months before you open your doors so that you have some customers attending when you first open your doors for business.

Once you have estimated your startup expenses you can then match these up with the amount of capital you have available. You will then know that you either have to reduce your daycare startup costs or know that you have the luxury of scaling them up if necessary.