Over time, the structure of Indian households has changed considerably, like nuclear families, working couples, and single working mothers are increasing. 1 in every 3 Indians belongs to a nuclear family, and single mothers run 5.4% of households. While inviting grandparents and hiring a nanny to look after children is not uncommon in India, more parents are opting for daycare centres. These offer the child a range of developmental benefits.
While balancing work and family life more manageable, daycare centres also contribute to a child’s overall educational growth. Thanks to this, children tend to become self-dependent and better prepared for school environments. Technavio, a market research company, has predicted that the Indian child care market is set to grow to a CAGR of around 22% by 2020. So, if you want to start a daycare business of your own, there’s no time like the present as the market is ripe for such ventures. Consulting opening a daycare checklist will do you a world of good as it will put you on the right foot from the get-go. So, here’s a guide to starting a daycare business in India.
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 don’t, 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. In India, the number of daycare centres is increasing; hence, you should be well prepared to outperform your competitors to enjoy success. To this end, draft a scheme by considering the age group of children you want to cater to your working hours. Your strengths and weaknesses via SWOT analysis, the services you intend to offer, the financing and your preferred 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. For instance, you may find that a home daycare business plan is more realisable as it mitigates the rental costs involved.
Additional read: Why every SME needs a solid financial plan
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 license, renting a space, acquiring furniture, hiring staff and paying for essential utilities as you determine the expenses, scout for funding options and pick the one that matches your needs. To finance your daycare business conveniently and enjoy a suite of beneficial features, avail of a business loan from a reputed lender like Bajaj Finserv.
Here, you can access a high-value sanction of up to Rs. 30 lakh on cost-effective terms in just 24 hours. All you have to do is meet simple eligibility criteria and submit minimal documentation. To enjoy greater flexibility with withdrawal and repayment, avail of this loan as a Flexi loan. Upon doing so, you can make multiple withdrawals based on your needs and prepay the same at zero extra charges. This way, you can fund one-time costs like license fees and recurring expenses of purchasing toys and paying salaries smartly. What’s more, you can repay the loan via interest-only EMIs throughout the tenor and pay back the principal only at the end of the term saving up to 45% on your EMIs.
Enrol for childcare training
Being qualified 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 skill sets, look for a suitable location to set up shop. You may want to open a home daycare centre if you have a spacious room available or take a commercial place on rent if the location is favourable. When selecting a location, keep in mind the children’s safety and hygiene. To this end, pick a spot that’s away from traffic, is pollution-free and also easily accessible. Further, consider premises with competitive rent to minimise your total expenses.
Get a license or franchise
Whether you want to open a home daycare business or establish one in a commercial space, you require a license to operate it. 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 license 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 expand your reach and intensify returns. To get your daycare business off the ground quickly, avail of a business loan with Bajaj Finserv. Before applying, be sure to check your pre-approved offer to view your customised deal and enjoy hassle-free online approval.
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