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So maybe you’re looking to purchase a daycare building or you’re looking on renting a building for daycare.

Choosing the perfect location for your childcare center is a crucial step when starting a daycare, preschool, or other childcare business. I get it – the process can be overwhelming, and it is often where people get stuck.

For this reason, I've put together a list highlighting the key factors to consider when determining the perfect spot for your new childcare business.

Before we get started,  If you’re new to my site, don’t forget to snag my FREE Interview Guide to hiring quality staff for your program before you leave!

Now Let's explore how to choose the perfect location for your new childcare center, daycare, or preschool.

Research Demographics

The first step is to dive into demographics. Analyze household income, household size, nearby schools, crime rates, and home values. Understanding the community's makeup helps tailor your services to meet the specific needs of the families you'll be serving.

Visit Neighborhood Scout to gain insights on crime rates, school quality, real estate trends, and demographic information.

Look for growth 

Aim for areas on the upswing. Look for new construction, new jobs, and booming businesses. Steer clear of locations that are on the decline. Being in a thriving community ensures a steady stream of families seeking childcare services.

Convenience for Parents

Evaluate if the location is convenient for parents in terms of accessibility and proximity to work or living areas. You want your childcare center convenient for parents dropping off and picking up their little ones on their commute to and from work.

Strategic Placement

Check out the surroundings. You want to avoid areas with an oversaturation of childcare centers, but being near elementary schools or other daycares can be advantageous. It creates a network of childcare services, and parents often appreciate having options in close proximity. 

Visit Childcare Deserts to get supply and demand insights into areas with limited or insufficient childcare options and insights on where additional childcare services may be needed.

Know the competition 

Mystery shop your competitors and find out the following information.

1. Ages of enrollment - What ages do they care for?

2. Capacity - How many are they licensed for? How many children do they have enrolled? A waiting list suggests a strong demand for childcare services in the community.

3. Hours - What are their daily operating hours? Are they open Monday – Friday or on the weekends also? Are they open 10 hours, 12 hours?

4. Tuition cost - What are they charging per age? Most daycares charge weekly tuition rates. Parents are usually in contract and are required to pay regardless of attendance. 

5. Type of care - Do they offer only full-time care? or do they offer drop-in rates or part-time rates?

6. Location - Are they in a home or a center? Is it in the city or the suburbs?

7. Learning Environment - What kind of learning environment do they offer? Are they play-based? Montessori? What curriculum do they offer?

8. Unique Selling Points - What do they offer that is uniques or special?What could you offer to set yourself apart from the competition?

Click here to download my free Competition Research Spreadsheet to analyze your competition and document your findings. You can open it in Excel, Numbers, or Google Sheets.

Check Zoning

Before you set your heart on a location, do your due diligence. Call your local county/city zoning officials to confirm that the area is suitable for a childcare center. Zoning regulations can impact your operations, so it's essential to ensure compliance from the start.

Be Visible

Opt for a location with good visibility on a semi-major, well-traveled road. Being easily seen by passersby is key to attracting attention and potential enrollments. Avoid secluded spots tucked away on less-traveled back roads, away from the eyes of main traffic.

Licensing Requirements

If leasing or purchasing an existing building, ensure that the chosen location meets all licensing requirements for operating a childcare center. If not, assess what modifications are required and estimate the associated costs. Some common modifications include:

• Proper lighting 

• Heating/Air systems

• Fencing guidelines

• Requirements for sinks

• Diaper changing areas

• Restrooms

• Ventilation

• Storage areas

• Kitchen/Appliances

• Construction-related tasks (putting up walls, removing walls)

• Ensuring an adequate outdoor area

• Sprinkler systems (for larger areas)

Outdoor Play Area

Ensure that the location has an outdoor space for play or a nearby playground.

Square Footage

Take into account the square footage of the property. This is very important if you are purchasing or leasing an existing building. Each child has specific indoor and outdoor square footage requirements, and these may vary depending on state regulations. 

Ensure that the location provides ample space for classrooms, play areas, and administrative functions, meeting the required standards.

Adequate Parking

Adequate parking is a must. Parents need a hassle-free drop-off and pick-up experience. Sufficient parking space adds to the overall convenience for families attending your childcare center.

Signage is key

Don't underestimate the power of signage. A clear and attractive sign displaying your childcare center's name is a marketing tool in itself. It helps create brand recognition and draws attention to your center.

Affordability

And of course, evaluate and create a mock budget with your projected income and expenses to see if you can afford the chosen location. Include your rent or mortgage,  electricity,  phone, internet, water,  trash, subscriptions, food, supplies, and any other expenses. 

Conclusion:

Choosing the right location is laying the foundation for a strong and successful childcare center. It sets the stage for fostering a nurturing environment where children can thrive, parents feel confident, and your childcare center becomes an integral part of the community.

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