One often overlooked but profitable small business idea is starting a child care center. If you love nurturing children and seeing them grow in leaps and bounds, opening a child care center is a great career option that you can be passionate about. Here are a few reasons why you should consider starting a day care center:
High Gross Margins – One great aspect of owning a child care center is the high gross margins where the majority of your revenue will not be sucked up by maintenance or production costs. Basically, the amount of money you make from taking care of children can almost all be pocketed… Furthermore, the small business of caring for children is easy to scale and grow your operation.
High Demand – Another beneficial feature of starting a child care center is the consistently high demand. The vast majority of couples will have children that need to be taken care of when the parents are at work. This means an endless supply of potential customers that rely on you for business. Metropolitan places like the Bay Area especially need good day care centers. If you can separate yourself from other child care centers, you will have more kids than you know how to take care of.
Low Overhead Costs – Child care centers have low maintenance costs, especially if you are running the business from your own living quarters. Unlike selling a product which requires costs for the parts and labor, running a day care only needs a few one-time fees to purchase toys and other child caring supplies. If you are the sole caretaker for children, you also do not need to pay wages for other employees. Rent is also negligible if you run the day care center out of your home. If you do not have much savings, starting a child care center can still be a profitable option.
Easy to Enter and Exit Industry – You can give running a child care center a try at relatively low entrance costs. Maybe you are hesitant about caring for children as a long-term career. It does not hurt to try it out and see if it’s a good fit. If ultimately, you have your heart set on another career, exiting the industry is a not terribly expensive either, especially if you are a one-man operation. Do not be afraid to test the waters for starting a child care center as you do not have a lot to lose.
Some things to be mindful of, however, are state licensing, insurance and other costs that might be higher because of the nature of dealing with children. Find out about your local laws before opening a child care center or any other business.