Launching A Child Care Program: Expert Business Advice for New Providers

Starting a child care business is more than just opening doors to a new facility; it’s about building a foundation for families, communities, and the future of early childhood education.

In Nebraska, the need for child care is urgent. Many counties still lack licensed facilities, and the demand continues to outpace availability. A recent analysis from the Buffett Early Childhood Institute at the University of Nebraska shows 10 of Nebraska’s 93 counties have zero licensed care facilities.

The state needs as many as 17,500 more child care spots to meet the potential need, making it difficult for parents to juggle work and family life.

First step: The licensing process

For those considering opening their own child care business, the journey begins with understanding the licensing process. Licensing, which focuses primarily on health and safety regulations, is mandatory when it comes to opening most home-based or center-based child care programs. This is not to be confused with accreditations, which are voluntary and demonstrate an individual or program’s commitment to the highest standard of care and education.

Jennifer Adhima, chief program officer for the Nebraska Early Childhood Collaborative (NECC), emphasized that the timeline varies significantly depending on the type of program.

“Family child care programs, in general, have a faster turnaround where licensure can be obtained in three to six months,” she explained. “For child care centers, which involve more extensive regulatory considerations, building requirements, the hiring and training of staff, and more, this process can take upwards of a year.”

Jennifer Adhima

One of the biggest challenges new providers face is navigating the complex regulatory environment. Jennifer noted that many individuals feel overwhelmed by the sheer number of requirements.

“This includes obtaining the necessary zoning permits, fire marshal approval, local health department approvals, state and federal background checks, and child care licensing requirements,” she said. “It’s often a time-consuming and overwhelming process.”

What resources are available?

To help ease this burden, NECC developed the Licensing Toolkit, a resource designed to guide family child care providers step-by-step through the process. The toolkit program includes supplies like curriculum materials and smoke detectors, as well as mentoring and professional development. NECC is also currently in the development phase for a center-based licensing toolkit to help support greater child care accessibility.

“Many providers we engage with tell us how daunting the licensure process seemed when they were going it alone. They had no idea where to start,” Adhima said. “That’s exactly what we’re here to do—support providers at any stage of their child care business journey.”

Government agencies like the Nebraska Department of Health and Human Services (DHHS) offer licensing information, too. Organizations such as Communities for Kids have also worked to help local communities expand their capacity or obtain licensure.

Financing and certification options

Beyond licensing, financial planning is another major hurdle. There are start-up grants available to providers, like the Child Care Start-Up and Expansion Grant offered by DHHS, which awards up to $5,000 for child care homes and up to $10,000 for centers.

Different accreditations and certifications recognize educational quality for programs and individual educators.

The Child Development Associate (CDA) credential for educators is one of the most widely recognized in early childhood education.

For family child care programs, obtaining accreditation through the National Association for Family Child Care is a highly respected way for providers to show parents their commitment to quality child care programs, while the National Association for the Education of Young Children (NAEYC) accreditation is one of the most common for child care centers.

Assessing family needs and expansion

Choosing the right type of program is also critical. Some parents prefer larger centers with structured classrooms, while others gravitate toward smaller, home-based settings. Adhima stressed the importance of understanding community needs.

“It’s an important step for providers looking to open or expand their businesses to know what program type will best fit the needs of the children and families in their community,” she said.

For those already established and considering expansion, providers must take a step back and proceed with caution. If you try to expand too quickly, there can be significant risks, Adhima said. Quality care for children can be compromised, leading parents to look for other options. That can jeopardize cash flow, which could affect staff retention and the ability to keep the doors open and the lights on.

Ultimately, launching a child care program is a rewarding endeavor, but it requires thoughtful planning, reliable support, and a deep understanding of both regulatory requirements and family expectations. With the right tools and guidance, Nebraska’s future child care providers can rise to meet the challenge.

JD Sorys joined the Buffett Institute in April 2023 as the CRM marketing manager. In this role, he is responsible for the management of the Institute’s customer relationship management (CRM) system and the execution of email marketing campaigns.