The Insider’s Guide to Starting a Successful Daycare in Ontario This Year

Welcome to an insightful guide on embarking upon a fulfilling journey as a daycare provider in the province of Ontario. As the demand for high-quality childcare continues to rise, the role of daycare centers in supporting working families and nurturing young minds has never been more crucial. If you’re considering starting a daycare, you’re on the cusp of making a significant impact on your community while creating a rewarding business opportunity for yourself.

In this comprehensive article, we will navigate the intricate landscape of establishing and operating a daycare in Ontario. From understanding the regulatory framework to designing an engaging and safe environment for children, we’ll cover key aspects that will set you on the right path. The road ahead might seem complex, but with the right information and thoughtful planning, you can turn your aspiration of running a daycare into a successful and fulfilling venture.

Key Takeaways

  • Research the market demand and competition before starting your daycare.
  • Choose the type of daycare service that best suits your business goals.
  • Create a unique selling proposition to set your daycare apart from the rest.

1. Understanding the Daycare Industry in Ontario

Before you can start a daycare center, it’s important to understand the industry and the regulations that govern it. In Ontario, a license is required for any child care program that provides care to more than five children younger than 13 years old. Programs that do not need a child care license include nannies or babysitters that provide care to children from one family in the children’s home and relatives that provide care for children.

Under the Child Care and Early Years Act (CCEYA), licensed child care can occur in various environments, including licensed child care centers, which are inspected by ministry staff. The CCEYA came into effect on August 31, 2015, and replaced the Day Nurseries Act, establishing new rules governing child care in Ontario.

It’s important to understand the different types of child care programs and the requirements for each. The Ontario government provides a helpful guide to understanding the different types of child care programs and the requirements for each.

It’s also important to consider the cost of operation, including rent, utilities, insurance, and staffing. The Ontario government provides funding for licensed child care providers to help offset some of the operating costs. The funding is based on the age of the child and the type of program provided.

2. Legal Requirements and Regulations

All daycare establishments in Ontario are required to meet certain legal requirements and regulations. You must follow the guidelines set out by the Child Care and Early Years Act, 2014 and its regulations. The act is designed to ensure the health and safety of children and child care providers in child care settings. Here are some key legal requirements and regulations you need to know:


To operate a daycare in Ontario, you must have a license. The license is issued by the Ministry of Education. There are two types of licenses: home-based child care and licensed child care centers. Home-based child care is provided in a private residence, while licensed child care centers are operated in a commercial space. It’s worth noting that you can run a daycare without license but it has it’s own set or rules and regulations.

Staffing Requirements

The CCEYA sets out specific staffing requirements for daycare providers. The ratio of staff to children varies depending on the age of the children. For example, for children under 12 months old, there must be one staff member for every three children. For children aged 18 months to 2.5 years, there must be one staff member for every five children.

Health and Safety Requirements

To ensure the health and safety of children, daycare providers must follow certain health and safety requirements. These include:

  • Conducting regular fire drills
  • Ensuring that all toys and equipment are safe and in good condition
  • Providing healthy meals and snacks
  • Keeping accurate records of each child’s medical history and emergency contact information

Criminal Record Checks

All daycare providers and staff members must undergo a criminal record check before they can work with children. This includes a vulnerable sector check, which looks for any criminal convictions related to working with children.


Daycare providers are required to have liability insurance. This insurance protects the provider in case of any accidents or injuries that occur on the premises.

3. Business Plan Development

Developing a business plan is an essential step in starting any business. It will help you set goals, define your target market, and identify potential challenges and solutions. Here are some key components to include in your daycare business plan:

Executive Summary

The executive summary is a brief overview of your daycare business plan. It should include your business name, location, services offered, target market, and financial projections. Keep it concise and engaging to grab the attention of potential investors or lenders.

Market Analysis

Conducting market research will help you understand your target market and competition. Identify the age range of children you will serve, the services you will offer, and the unique selling points that differentiate your daycare from others. Use this information to develop a marketing strategy that will attract and retain clients. You can leverage Ontario’s Early Years and Child Care Annual Reports to conduct market research.

Services and Facilities

Describe the services you will offer and the facilities you will provide. Include details such as the number of children you can accommodate, the hours of operation, and the qualifications of your staff. If you plan to offer additional services, such as meals or transportation, include them in this section.

Financial Plan

Develop a financial plan that includes your startup costs, operating expenses, and revenue projections. Consider the cost of rent, utilities, equipment, supplies, insurance, and salaries. Use this information to determine your pricing strategy and estimate your breakeven point.


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    Marketing Strategy

    Your marketing strategy should outline how you plan to reach your target market and promote your daycare. Consider using social media, flyers, and word-of-mouth referrals to attract clients. You may also want to develop partnerships with local businesses or organizations to increase your visibility.

    4. Location Selection and Setup

    Starting a daycare requires careful planning and consideration of various factors, including location selection and setup. In this section, we will discuss how to choose the right location and set up your daycare.

    Choosing the Right Location

    Choosing the right location for your daycare is critical to its success. Here are some factors to consider when selecting a location:

    • Accessibility: Choose a location that is easily accessible by parents and caregivers. Consider proximity to public transportation, parking availability, and the surrounding infrastructure.
    • Safety: Ensure that the location is safe and secure for children. Check for potential hazards such as sharp edges, steep stairs, or toxic substances.
    • Zoning: Check with the Zoning Department in your municipality to make sure that the area is zoned for daycare. You may need to obtain a permit or license to operate a daycare in a residential area.
    • Space: Consider the amount of space required for your daycare. Ensure that the location has enough indoor and outdoor space to accommodate the number of children you plan to care for.
    • Cost: Determine the cost of leasing or renting the location. Consider the overhead costs such as utilities, insurance, and maintenance.

    Read more: Planning and Design Guidelines for Licensed Child Care Centres

    5. Staffing Your Daycare

    When it comes to running a successful daycare, staffing is crucial. You want to hire qualified staff who are passionate about working with children and have the skills and experience necessary to provide a safe and nurturing environment. In this section, we’ll discuss how to hire and train your staff to ensure the best possible care for the children in your daycare.

    Hiring Qualified Staff

    When hiring staff for your daycare, you need to make sure they have the necessary qualifications and experience. In Ontario, all daycare can obtain Early Childhood Education diploma or degree from an approved institution.

    In addition to the ECE requirement, you should also look for candidates who have experience working with children in a daycare or similar setting. When interviewing potential staff members, ask about their experience, their approach to childcare, and their ability to work as part of a team.

    It’s also important to conduct background checks on all potential staff members, including criminal record checks and vulnerable sector checks. This will help ensure that you’re hiring trustworthy and reliable individuals who are committed to providing quality care to the children in your daycare.

    Staff Training and Development

    Once you’ve hired your staff, it’s important to provide ongoing training and development opportunities to help them grow and improve in their roles. This can include regular staff meetings, professional development workshops, and on-the-job training.

    One important area of training is health and safety. All staff members should be trained in first aid and CPR, as well as proper hygiene and sanitation practices. They should also be familiar with your daycare’s emergency procedures and protocols.

    In addition to health and safety training, you should also provide ongoing training in child development, behavior management, and communication skills. This will help your staff provide the best possible care and support to the children in your daycare.

    6. Marketing Your Daycare

    Once you have set up your daycare, it’s time to start thinking about marketing it. You want to make sure that parents in your community know about your daycare and choose it over other options. Here are some tips on how to market your daycare effectively.

    Creating a Marketing Plan

    The first step in marketing your daycare is to create a marketing plan. This plan should outline your goals, target audience, and strategies for reaching them. Your goals might include increasing enrollment, building brand awareness, or improving your online presence.

    Your target audience is likely parents with young children in your community. Think about where they spend their time and how they make decisions about childcare. You might want to consider partnering with local businesses or community organizations to reach this audience.

    Your marketing strategies might include advertising, direct mail, community events, or social media. You should also consider offering promotions or discounts to new families to encourage them to try your daycare.

    Online Presence

    In today’s digital age, having a strong online presence is essential for any business. This is especially true for daycares, as parents often turn to the internet to research childcare options.

    Make sure that your daycare has a professional-looking website that is easy to navigate. Your website should include information about your programs, staff, and facilities. You might also want to include testimonials from satisfied parents to help build trust.

    Social Media

    Social media can be a powerful tool for marketing your daycare. Here are some tips for using social media effectively:

    • Post regularly: Try to post updates and photos at least once a day to keep your followers engaged.
    • Use hashtags: Hashtags can help your posts reach a wider audience. Use relevant hashtags like #daycare or #childcare.
    • Interact with parents: Respond to comments and messages promptly, and use social media to answer any questions parents might have.
    • Share testimonials: Share positive feedback from parents to help build trust with potential customers.

    By following these tips, you can create a strong marketing plan for your daycare and reach more parents in your community. Remember to always be honest and transparent in your marketing efforts, and to prioritize the safety and well-being of the children in your care.

    7 . Financial Management

    Starting a daycare in Ontario requires careful financial management to ensure your business is sustainable and profitable. In this section, we will cover two important aspects of financial management: budgeting and pricing, and financial record keeping.

    Budgeting and Pricing

    Before you open your daycare, you need to create a budget that takes into account all the expenses you will incur. This includes the cost of rent, utilities, equipment, supplies, insurance, and staff salaries. You should also factor in any unexpected expenses, such as repairs or emergencies.

    Once you have a budget in place, you can determine your pricing strategy. You need to set a price that is competitive with other daycares in your area, but also allows you to make a profit. Consider offering different pricing options, such as full-time, part-time, or drop-in care, to attract a wider range of customers.

    Financial Record Keeping

    Good financial record keeping is essential for any business. You need to keep track of all your income and expenses, and maintain accurate records for tax purposes. This will also help you monitor your cash flow and identify any areas where you can cut costs or increase revenue.

    Consider using accounting software to make financial record keeping easier and more efficient. There are several options available, such as QuickBooks and FreshBooks, that can help you track your expenses, generate invoices, and prepare financial statements.

    8. Frequently Asked Questions

    To open a licensed daycare in Ontario, you must meet certain requirements set out by the Ministry of Education. You will need to complete an application form, provide references, and undergo a criminal record check. You will also need to meet certain health and safety requirements, such as ensuring that your daycare space is clean and safe for children. For more information on licensing requirements, visit: Apply for a child care licence.

    The cost of opening a licensed daycare in Ontario can vary depending on a number of factors, including the size of your daycare and the location. You will need to pay licensing fees, as well as costs associated with setting up your daycare space, such as purchasing equipment and supplies.

    There are a number of grants available for those looking to open a daycare in Ontario. These grants can help cover the costs associated with starting up your daycare, such as licensing fees and equipment costs. Use this directory of 1500+ grants.

    Yes, you can start an unlicensed home daycare in Ontario. However, there are certain rules and regulations that you must follow. For example, you can only care for a certain number of children at a time, and you must ensure that your daycare space is safe and clean. For more information on unlicensed home daycares, visit: Childcare Programs that don’t need a Licence

    The daycare must have a supervisor who has an Early Childhood Education (ECE) diploma or degree. Other child care staff must have an ECE or other approved qualifications. There are regulations on child-staff ratios that must be met.

    9. Resources for Daycare Businesses in Ontario

    Government Resources

    Industry Resources

    Other Resources

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