Needs Assessment

Before you invest money in a child care business, you need to determine if your community needs another child care center or family child care home. The following is a list of questions for you to consider. Section 2, Preparing a Business Plan, has resources to help you answer these questions.

Who else is providing child care in your area? Who are your main competitors? How many families with young children live in your area? How many of them will need child care? What are the ages of the children? Is there a need for child care for a specific age group? Is the need for child care in your area likely to change in the next 5-10 years? Where do parents work? How long is the typical commute? What are the typical hours that parents work? Is there a need for child care during specific hours? What are the typical fees (the market rate) for child care in your area? Do parents in your area typically get help (subsidies) to pay for child care? Will your program be eligible to accept subsidies? How much will it cost you to start a new child care business or purchase an existing child care center? How much will it cost you to operate a program on an ongoing basis? Based on the number of children you plan to enroll, what is your per child cost? What fees do you need to charge parents in order to have a profitable program? Can parents in your area afford those fees?

How will your program attract parents? What will make your business special?

Is there a family child care provider network you can join that will help with marketing, billing and curriculum? Is there a center director support group where you can get information about issues such as marketing, staffing, curriculum and billing?

Can you partner with other child care programs? Are there providers that offer part-day programs? Are there other groups that sponsor child care programs?

Sources for data:

Your local Child Care Resource and Referral agency (CCR&R) County growth projections School census from local school district Local library reference desk City or county health or social services agencies Local service organizations - Lions, Rotary, Kiwanis, etc. Colleges or universities U.S. Census Bureau Kids Count

Additional Resources

Feasibility Studies for Child Care Centers By White Hutchinson Leisure & Learning Group

Child Care Needs Assessment 1 By the National Network for Child Care