Day Cares are popular targets for aspiring small business owners, since there is plenty of demand for these services regardless of the city and state you live in. However, there are a number of unique startup costs to consider that aren’t always a necessity with other business models. Here are some technology startup costs to consider, some of which are unique to day care centers.
What Startup Costs Are Involved With Opening a Daycare?
Business Internet
Reliable and fast internet is mandatory for any daycare center. The cost of business internet varies based on location and speed requirements. On average, expect to spend between $70 to $200 per month. High-speed internet enables the use of various online tools (like educational games and streaming), software essential for the center’s operations, as well as consistent communication between staff and families.
Door Access Control Systems
Safety remains a top priority in daycare centers, and controlling who enters and exits the building is crucial. Door access control systems provide a secure way to manage access. These systems range from simple keypad entry systems to more advanced solutions like biometric scanners or card readers. Basic keypad systems start around $500, while more sophisticated systems can cost upwards of $2,000. Additionally, there may be installation fees and ongoing maintenance costs to consider.
Security Features
Ensuring the safety of children involves investing in various security features. Surveillance cameras, alarm systems, and secure entry points are some of the essentials. A comprehensive security camera system for a daycare center typically costs between $1,000 and $3,000, including installation. Alarm systems with monitoring services may add another $300 to $600 annually. These systems provide peace of mind and help in maintaining a secure environment, and they are absolutely critical if you wish to avoid liability.
Client Management Software
Effective client management software tailored for daycares simplifies administrative tasks and improves communication with parents. Software options like Procare, Brightwheel, and HiMama offer features such as attendance tracking, billing, parent communication, and daily reports. Subscription costs for these platforms vary. Basic packages might start at $50 per month, while more advanced packages can go up to $200 per month. Investing in good client management software enhances operational efficiency and parent satisfaction.
Classroom Technology
Incorporating technology into the classroom enhances the learning experience for children. Tablets and interactive whiteboards can be valuable tools. A set of tablets for a daycare classroom might cost around $1,000, while an interactive whiteboard can range from $1,500 to $3,000. Depending on the nature of your daycare, you may be branded as an “early childhood learning center” – this type of messaging adds some pressure to the opening costs to even an infant daycare.
Software for Administrative Tasks
Beyond client management software, daycare centers benefit from using various administrative software. Payroll software, accounting software, and scheduling software streamline operations. Programs like QuickBooks for accounting and Gusto for payroll can cost between $25 to $150 per month. These tools help manage finances, employee salaries, and other administrative tasks efficiently.
Communication Tools
Effective communication with parents and staff is crucial in a daycare setting. Email platforms, messaging apps, and video conferencing tools facilitate this. Services like Zoom, Slack, and Mailchimp offer affordable solutions. Zoom’s basic plan is free, with advanced plans costing around $15 per month. Unless you offer online piano lessons or other educational opportunities, you will probably not exceed the free tier of Zoom. Slack offers free and paid plans, with paid plans starting at $6.67 per month. Mailchimp’s plans range from free to $14.99 per month for small businesses.
Backup and Data Security
Cloud storage services like Google Drive or Dropbox offer business plans starting at $12 per month. Additionally, cybersecurity software, including antivirus and malware protection, can cost around $50 to $100 annually. Website hacks, email deliverability issues, and other embarrassing missteps can erode the confidence that parents have in your daycare, so take them seriously.
Training and Support
Implementing new technology requires proper training for staff. Allocate a budget for training sessions and ongoing support. Training costs vary depending on the complexity of the technology and the number of staff members. Online training courses can cost between $100 and $500 per course, while hiring a professional trainer for on-site training might cost between $1,000 and $2,000. Providing adequate training ensures staff can use the technology effectively, enhancing the overall operation of the daycare.
Total Estimated Costs
Summing up all these technology expenses provides a clearer picture of the startup costs. Here’s a rough estimate:
- Business Internet: $70 – $200 per month
- Door Access Control Systems: $500 – $2,000
- Security Features: $1,000 – $3,600 (including installation and annual monitoring)
- Client Management Software: $50 – $200 per month
- Classroom Technology: $1,000 – $3,000
- Administrative Software: $25 – $150 per month
- Communication Tools: $0 – $30 per month
- Backup and Data Security: $62 – $112 per month
- Training and Support: $100 – $2,000
Prepare For Startup Costs As You Launch Your Daycare
Investing in technology for a daycare center involves various costs, but these investments improve safety, streamline operations, and enhance the overall experience for children and parents. Careful planning and budgeting ensure that the center operates efficiently and meets the needs of families in the community.
