How to Start a Daycare Business

Kenyans have watched unfolding horror stories on TV as house helps and nannies abuse or even kidnap little children who are left in their care.

Some toddlers have been sexually abused and in some isolated cases, some have lost their lives.

Many urban families in Kenya have working parents who leave their homes as early as 5.30am and get back home as late as 7.30pm, thanks to endless traffic holdups on our roads, especially in major urban centres such as Nairobi and Mombasa.

As a family with young children, you might decide that the mother becomes a stay-at-home mum so that she is available to take care of your children.

Many women fear the idea of not having a source of income and I don’t encourage that either. I encourage stay-at-home mums to explore ways to earn income from home.

There are many different ways that a stay-at-home mum can earn income from home working online, thanks to technology.

There are also offline businesses that a stay-at-home mother can do from home.

I would like to explore the possibility of earning income from home by turning part of the space in your house into a play centre for little children and toddlers or renting out space somewhere else and starting your own day care business.

You can provide childcare solutions for busy mothers and earn income in the process. This is a great way for a stay-at-home mum to get started in business.

*Understand the Basics of the Daycare Business*

Although the daycare business is like any other business, it requires special attention as you will mostly deal with little children.

You need to have the love for children, have basic knowledge of early childhood development, CPR, know the signs of common childhood illness, and First Aid skills.

Additionally, you will need to know the types of daycare to choose where to specialize.

*Types of Daycare*

Daycare centers are categorized based on age groups of children, working hours and location.

*Restricted age-limit daycare centers:* These are daycares where they limit certain age groups. In most cases, they only accept younger children, since they are easier to handle

*Free-age daycares:* Children of all age groups can be enrolled

*Daycares based on location:* They are categorized into two;

1. Group daycare centers. They are run by professionals and are usually licensed.

2. Home daycare centers. They are run from homes and are often unlicensed.

*Find an Excellent Daycare Center Location*

An excellent location is vital for the success of a daycare. You can operate the daycare from a rental space or your home. Whichever choice you make, make sure that the location is safe for children.

A daycare facility should be spacious where children can play. If you are renting out space, you will need to consider rental costs.

A spacious house costs around Ksh.5,000 per month in rural areas and between Ksh.20,000 and Ksh.50,000 in urban areas.

*Write a Daycare Business Plan in Kenya*

A business plan is essential for your daycare business. You will need to state your mission statement, budget, marketing strategy, how and when to hire staff, your pricing, and how you intend to expand.

You opt to hire a professional to write a daycare business plan for you.

*Raise Startup Capital*

It is best to start small and expand over time. Startup costs for daycare center vary depending on the number of children you want to enroll and the type of facilities you intend to install.

However, with Ksh.100,000, you can purchase basic equipment and pay for licenses.

*Acquire the Necessary Daycare Business Licenses and Insurance*

When parents are choosing a daycare facility to enroll their children, they check if your business is licensed and insured. A licensed and insured daycare implies that it is safe for children.

*A Liability Insurance cover* is ideal for a daycare business to protect children, staff, and daycare facilities. You will also need the following business licenses to operate your business legally.

*A single Business Permit.* Obtain a single business permit from your county government. Its cost vary from one county to the other, but it ranges between Ksh.4, 000 and Ksh.15,000.

*Fire Safety Certificate.* Fire inspectors need to inspect if there are fire safety equipment like fire extinguishers in your daycare center. Some activities that take place in a daycare, like cooking can cause fires. In case of fire accidents, you should be in a position to control the fire.

The license will cost around Ksh.3,000.

*A Public Health Certificate.* Daycare centers enroll children from different backgrounds. They need to maintain high levels of cleanliness from personal hygiene to environmental cleanliness.

A public health officer will be sent to inspect your premises to ascertain that the place meets the hygiene requirements and safe for kids. If you meet the requirements, you will be issued with a public health license.

The license costs about Ksh.3,000 every year.

*Cost of Starting a Daycare Center in Kenya*

The cost of starting daycare center in Kenya depends with your business size and equipment you want to equip it with.

If you have a strained budget, you can rent a premises to avoid high startup costs of building structures.

This way, you can even start a small daycare center with between Ksh.50,000 and Ksh.100,000.

*Requirements for Starting a Daycare in Kenya*

Upon acquiring the relevant licenses and permits, you need to prepare your daycare premises to start operations.

The environment should be child-friendly and as such, you need to stuff that children can play with. Your budget will determine the items to buy.

The following are day care centre requirements in Kenya:

*Furniture like small plastic chairs, stools, chalkboard, tables, and nap mats.

*Toys such as ribbons, dolls, puzzles, stuffed animals, watercolours, and paint.

*Educational materials like charts and storybooks.

*Appliances like kitchenware.

*Playground material such as bouncing castles and trampolines.

*Determine Your Pricing*

When it comes to pricing, consider your rental fees, staff salaries, and children activities you will be offering at the daycare facility.

The pricing can also be determined by kind of daycare it is.

High end daycare centers are mostly located in high-income neighborhoods. Most of them charge between Ksh.500 and Ksh.2,000 per child per day.

Mid-level daycare centers charge between Ksh.200 and Ksh.1,000 per child per day.

Low-end daycare centers charge between Ksh.20 and Ksh.200 per child per day.

*Market Your Daycare Business*

Marketing is crucial for the success of your daycare center. You can distribute pamphlets, brochures, and newsletters.

The best way to market your business is through referrals. This is possible when you build cordial relationship with your clients by offering excellent quality daycare services.

You can also do social media marketing.

Start small and grow. Let the mothers in your neighbourhood and others in your circles such as family members and fellow church members know that you take care of little children.

You can target those below school going age, five and below. As you grow, you might consider maintaining online presence such as a Facebook page, a blog, and an Instagram page.

*Professionalism*

You are starting a business not a hobby, and business should not only be professionally run but should also not get disrupted whenever something unexpected happens in your life.

Plan for unexpected occurrences such as your unavailability due to illness or other commitments. It is important to have someone trusted who can stand in for you during such times.

You may consider training your house help to be your assistant. This can be a chance to grow in her career. Ensure your assistant is adequately trained in areas such as first aid, safety and childcare.

Also have a few reliable back up part time staff that you can call up in case you need extra help.

Always take precautions when identifying people, you can entrust with children. Demand for references and certificate of good conduct.

Don’t focus on the quality of work only as you could jeopardize the safety of the children under your care and their families.

Keep in mind that children can be very trusting and can end up giving very important information to a person they spend their time with. You can’t afford to be careless when selecting staff to work in a daycare.

Satisfied clients are the key to your growth so go the extra mile to keep the children happy, entertained and healthy.

Be cautious about safety, hygiene, the quality and handling of the food the little ones consume.

*Hygiene*

Hygiene and cleanliness are critical when it comes to taking care of children so never compromise on that.

Some daycare centres give the option of children bringing their own snacks while others provide food and charge for it.

Preparing fresh food is a great way to minimize risks of food poisoning.

Many parents are afraid when they leave their little ones with house helps whom they do not know that well while others need somewhere to leave their little ones when house helps leave without notice.

Daycare centres are in demand and there are families who would appreciate the service so do a good job and you will attract clients.
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*Plan long term*

Plan long term since you are likely to expand as word spreads and more and more parents entrust their little ones with you.

Many schools and daycare centres actually begin in residential areas and move to more suitable premises as they grow.

A daycare centre has the potential to eventually grow to incorporate kindergarten services.

*Final Word*

Parents will entrust you with their children only if you offer quality services and if their children are safe.

A daycare center mainly works on the principle of trust. As such, daycare owners need to build trust with potential customers.

Professionalism is key to the success of your daycare business. With that, I hope that you now know how to start a daycare business in Kenya.

You have the idea, the energy and determination. What are you waiting for?

Go ahead and utilize this opportunity to build a business that will make the world a better place.

Also don`t forget to join our training on Dairy Farming.

We have created a WhatsApp group called *DAIRY FARMING TRAINING* WhatsApp Group.

In this training group, we will teach you on how you can start, grow and profit in Dairy Farming Business.

Did you know you can earn up-to Ksh.40,000 per month with 3 dairy cows?

Kenya has been identified as the highest performer in Africa when it comes to dairy farming. Breeds that are used in Kenya are high breeders which yield milk between 30 to 50 litres of milk per day with good management.

One cow can produce an average milk yield of 30 litres per day which is approximately 270 litres of milk from one cow per month.

Currently milk goes for a minimum of Ksh.30 per litre. This will give you a gross income of
3×30×30×30 = Ksh.81,000 from 3 cows in one month.

The cost of production is usually half the amount of litres per cow. The net income per month will therefore be

81,000 – 40,500 = Ksh.40,500

This Ksh.40,000 per month profit is from 3 dairy cows. What if you had 5, 10, 20 or 30 cows? What if some cows are producing more than 30 litres in a day?

Keeping cows for money has in the past been considered a thing for retirees but look at what young people are now doing with it!

Timothy Angwenyi
Business Consultant

Justine Nyachieo
Business Man & Mentor