Learn how to start a daycare business in India.

Here is a guide to help you formulate a proper market plan for setting up a daycare business.
Business Loan
2 min read
20 September 2023

Over time, the structure of Indian households has changed considerably. 1 in every 3 Indians belong to a nuclear family, and single mothers run 5.4% of households. While inviting grandparents and hiring a nanny to look after children is common in India, more parents are opting for daycare centres.

If you want to start a daycare business of your own, check out this detailed guide.

Research the market

As a preliminary measure, analyse the market to know what it takes to start a venture from scratch. The findings from this exercise will provide you with a foundation for creating a sound business plan, which is the next step. As part of your research, make a list of the legal and financial requirements of opening a daycare centre. Then, study your competitors to learn what they offer and do not, based on which you can include unique services to set you apart.

Draw up a daycare business plan

Once you have an idea about the daycare market in the country, draft a daycare business plan. Consider the age group of children that you want to cater to, your working hours, your services, and your location.

Based on this, determine your niche and optimise your plan accordingly. Then, calculate the associated expenses and revenues to decide if the project is financially viable and make appropriate changes.

Additional read: Why every SME needs a solid financial plan.

Arrange capital

Once you draft a business plan, calculate the funds required to establish and run a daycare business in India. Consider the costs involved in getting a licence, renting a space, hiring staff, and paying for utilities as you determine the expenses. Scout for funding options and pick the one that matches your needs. To finance your daycare business conveniently, avail of a business loan from a reputed lender like Bajaj Finance.

Get a high-value sanction up to Rs. 55 lakh in just 48 hours, post approval. All you have to do is meet simple eligibility criteria and submit minimal documentation. To enjoy greater flexibility with withdrawal and repayment, choose the Flexi Loan facility. Then you can make multiple withdrawals based on your needs and prepay the same at zero extra charges.

Enrol for childcare training

Qualification in early childhood care or child development is a bonus when establishing a daycare business. This will establish confidence in the licensing authorities and parents alike. Your certificates will deem you fit to start a business and look after the children entrusted under your care.

You may take up a diploma or a crash course to supplement your knowledge and skills. It would be better to ensure that your staff has the adequate skills to tend to the wellbeing of the children.

Search for a good location

As you prepare your team with the necessary skills, look for a suitable location to set up shop. When selecting a location, keep in mind the children’s safety and hygiene. Pick a spot that is away from traffic, is pollution-free and also easily accessible. Consider premises with competitive rent to minimise your total expenses.

Get a licence or franchise

To start a daycare business, you must comply with basic requirements like minimum and maximum number of students and staff and hygiene standards. Once you are ready, apply for a licence with the relevant authority. They may want to see your daycare proposal before going ahead, so keep your daycare business plan prepared. Alternatively, you can also apply for a franchise with a well-known brand to build upon the trust earned by the parent company.

After setting up a daycare business, direct your sincere efforts towards improving your services based on parents’ feedback. It will help if you have a proper go-to-market plan with the relevant advertising for your business. To get your daycare business off the ground quickly, avail of a business loan with Bajaj Finance. Before applying, be sure to check your pre-approved offer.

Frequently asked questions 

What certifications do I need to open a daycare in India?

To open a daycare in India, you typically need certifications like first aid and CPR training, police verification for staff, and a trade licence from your local municipal corporation. Additionally, adhering to state-specific childcare guidelines and standards is crucial.

How much does it cost to start a daycare centre in India?

The cost of starting a daycare in India varies widely based on factors like location, facility size, amenities, and staff salaries. Generally, it can range from Rs. 2 lakh to several lakh, covering expenses like rent, interior setup, licensing fees, equipment, and operational costs.


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