Hey friend,
Starting a daycare is exciting but let’s be real—it’s also a huge learning curve. You’re juggling licensing, safety, curriculum, marketing, and about a hundred other things all at once. And while the passion for working with kids is there, the business side can feel overwhelming.
If you’ve been feeling stressed, uncertain, or just plain exhausted, I want you to know you are not alone. Every new daycare owner makes mistakes—it’s part of the journey! But some mistakes can cost you time, money, and even your business if you’re not careful.
So today, I’m sharing the BIGGEST mistakes new daycare owners make—and how you can avoid them. Let’s set you up for success from day one!
Mistake #1: Not Having a Solid Business Plan
💡 Why This is a Problem:
Many new daycare owners jump in without a clear plan, thinking, “I’ll figure it out as I go.” But daycare is more than just watching kids—it’s a business. Without a plan, you’ll struggle with finances, enrollment, and daily operations, and that leads to burnout and failure.
📊 Fact: According to the U.S. Small Business Administration, 80% of small businesses fail within the first five years, and lack of planning is one of the top reasons.
✅ How to Avoid This Mistake:
- Create a detailed business plan that includes:
- Your mission & vision
- Start-up costs & budget
- Pricing strategy
- Enrollment & marketing plan
- Licensing & legal requirements
- Set realistic financial goals so you can pay yourself properly!
- Keep a backup plan for unexpected expenses.
💡 Pro Tip: Even a simple one-page business plan is better than no plan at all!
Mistake #2: Setting Prices Too Low
💡 Why This is a Problem:
New daycare owners often think, “If I charge less, I’ll fill my spots faster!” But undercharging means:
❌ You won’t cover your expenses.
❌ You’ll struggle to pay yourself.
❌ Parents may see you as “cheap” instead of valuable.
📊 Fact: A study by Child Care Aware found that many daycare providers make less than $15 per hour, even though childcare costs are rising.
✅ How to Avoid This Mistake:
- Research the going rates in your area.
- Calculate your actual costs (rent, food, staff, supplies) and add a profit margin.
- Offer value-based pricing—explain to parents why your program is worth the cost.
💡 Pro Tip: Parents don’t just want the cheapest daycare—they want the best daycare. Price accordingly!
Mistake #3: Not Marketing Early Enough
💡 Why This is a Problem:
Some daycare owners wait until they open to start marketing. But by then, they’re scrambling to find kids, and an empty daycare means no income.
📊 Fact: According to a survey by Brightwheel, daycares that start marketing 6+ months before opening fill spots 50% faster.
✅ How to Avoid This Mistake:
- Start promoting your daycare BEFORE you open.
- Create a simple website and Facebook page to attract parents.
- Join local mom groups and parenting forums to spread the word.
- Offer an early enrollment discount to encourage sign-ups before opening.
💡 Pro Tip: Word of mouth is the #1 way parents find daycare. Ask friends, family, and past clients to help spread the word!
Mistake #4: Ignoring Licensing & Legal Requirements
💡 Why This is a Problem:
Skipping steps in the licensing process can shut down your daycare before it even starts.
❌ If you don’t follow regulations, you risk fines or closure.
❌ Without proper insurance, you’re legally at risk for lawsuits.
❌ Parents won’t trust you if you’re not fully licensed & certified.
📊 Fact: In 2023, over 1,500 daycare providers lost their licenses due to failing inspections or missing legal requirements.
✅ How to Avoid This Mistake:
- Research your state’s daycare licensing laws early.
- Get the right insurance to protect your business.
- Stay compliant with health, safety, and staffing ratios.
💡 Pro Tip: Visit a local Child Care Resource & Referral (CCR&R) office for guidance—they’ll walk you through the entire process!
Mistake #5: Trying to Do Everything Alone
💡 Why This is a Problem:
New daycare owners often try to handle everything—from caregiving to admin work to cleaning. But burnout is real, and if you don’t take care of yourself, your daycare will suffer.
📊 Fact: Studies show that 70% of daycare owners experience burnout within the first two years if they don’t delegate tasks.
✅ How to Avoid This Mistake:
- Hire part-time staff or assistants as soon as you can.
- Use automation tools (like billing software) to handle admin work.
- Set realistic work hours so you don’t burn out.
💡 Pro Tip: A well-rested daycare owner = a happier, more successful daycare!
Mistake #6: Not Creating Clear Policies & Contracts
💡 Why This is a Problem:
If you don’t have written policies, parents will push boundaries—showing up late, missing payments, or expecting special treatment.
📊 Fact: Childcare providers who enforce clear policies report 40% fewer issues with parents and payments.
✅ How to Avoid This Mistake:
- Have a detailed parent handbook that includes:
✔️ Tuition & payment schedule
✔️ Late pickup policy
✔️ Sick child policy
✔️ Vacation/closure days - Require signed contracts before accepting children.
💡 Pro Tip: Stick to your policies—parents respect structure!
Final Thoughts: Mistakes Happen—But You Can Avoid the Big Ones!
Starting a daycare is a huge accomplishment, and mistakes are part of the journey. But now, you have the knowledge and tools to avoid the biggest pitfalls!
✔️ Create a solid business plan.
✔️ Set your prices right.
✔️ Start marketing before you open.
✔️ Stay compliant with licensing.
✔️ Don’t do everything alone.
✔️ Enforce clear policies.
If you take the time to plan ahead and learn from others’ mistakes, you’re already ahead of the game!
What’s Next? Let’s Get You Set Up for Success!
If you’re serious about making your daycare successful from the start, here’s what to do next:
✅ Download a Free Daycare Business Plan Template ( link coming soon)
✅ Join My Facebook Group for Daycare Owners (coming soon)
You CAN build a thriving, profitable daycare—and I’m here to help every step of the way. Let’s do this! 🚀💡
Let’s Chat!
Have you made any of these mistakes? What’s the best lesson you’ve learned since starting your daycare? Drop your thoughts in the comments! 😊
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