Childcare & Education · Recurring tuition

Daycare Center

A recurring-revenue business governed by one hard rule: state child-to-teacher ratios cap students per teacher, tightest for infants and looser for older kids. Every licensed seat needs a paid teacher whether it is filled or not, so the age mix of enrollment and occupancy, not the headline tuition, are the entire margin story.

High capitalHands-on operatorRecurring tuitionRatios and age mix run the math
Read the launch plan: every step from deciding to opening, free →
01

The Snapshot

Is this worth your attention?

$1,100/mo
Typical monthly tuition
per child, varies sharply by age
~4:1 to 12:1
State child-to-teacher ratios
roughly 1:4 infants, 1:12 preschool
Every seat
A full teacher per ratio cap
an empty slot still pays the teacher
Sticky
Families rarely switch care
recurring, recession-resistant

Estimated Typical bands for this kind of business, estimated from adjacent public data where no direct benchmark exists; treat them as rough. Estimates, not forecasts; a specific business varies with its location, lease, equipment and owner. Last reviewed 2026-07-07. smbnest is a self-assessment tool, not individualized advice.

A good fit if you

  • Have capital or financing for a build-out, licensing, and a fully staffed center
  • Understand that ratios, age mix, and occupancy run the business, not headcount alone
  • Can recruit, credential, retain, and lead teachers in a high-turnover, low-wage field
  • Are comfortable with licensing, inspections, background checks, and a heavily regulated operation

A poor fit if you

  • Are undercapitalized, because rent and ratio-mandated teacher labor are unforgiving fixed costs
  • Think filling seats is optional, when a half-full room still pays a full teacher and full rent
  • Dislike compliance work, because licensing, inspections, and background checks never stop
  • Want a hands-off, low-people business that does not lean on a strong on-site director
02

Step Inside the Layout

A live look at one tool inside

This is the actual 3D floor from the full model. Drag to explore it. Inside, you configure the space yourself and watch the economics move with every choice.

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Sources and method14 public sources, with the year and a link where the source gives one. The benchmark bands on this page are estimated from adjacent data and labeled as estimates.

Sources & Method

Figures are estimated from the public sources below and from adjacent data; the bands are labeled as estimates

How these numbers were built: teacher and director wages come from the BLS Occupational Outlook Handbook (May 2025); state ratio rules come from the approved CCDF State Plans compiled by the First Five Years Fund, and square footage per child from a typical state code (Virginia); tuition direction and supply come from Child Care Aware of America data; survival from Census and BLS business dynamics; sale prices, owner cash flow and multiples from BizBuySell's 2021 to 2025 daycare sales; and financing terms from the SBA. The opening kit is priced item by item from childcare furniture dealers, playground and surfacing guides, restaurant equipment dealers for the kitchen, registered Texas daycare renovation projects for the build-out, and franchise disclosure documents (Item 7) for preschool and childcare brands. The labor default is sized to the ratios a 75-child center needs over a full day at BLS median wages, not to a share of sales, and the owner cash flow band comes from BizBuySell's yearly daycare sale data. Most centers operate in buildings not originally built for childcare (about three in four in a Colorado facilities review), so the plan starts from the Standard conversion rather than a former center. These are starting assumptions; once you have a building, a licensed capacity and real tuition quotes, your numbers should replace ours. Figures are current as of 2025 to 2026.

The owner cash flow (SDE) band comes from BizBuySell's 2021 to 2025 daycare sales, which ran 20.3% to 26.6% of revenue by year. Cost-ratio ranges are estimated from the cost structure documented for this model (state ratio requirements, BLS childcare wages and Census establishment data), since no public source publishes standardized cost ratios for licensed centers, so the profile stays marked estimated.

Government data
U.S. Bureau of Labor Statistics · 2025
Occupational Outlook Handbook: Childcare Workers, median pay $34,980/yr (May 2025)
https://www.bls.gov/ooh/Personal-Care-and-Service/Childcare-workers.htm
U.S. Bureau of Labor Statistics · 2025
Occupational Outlook Handbook: Preschool and Childcare Center Directors, median pay $59,300/yr (May 2025)
https://www.bls.gov/ooh/management/preschool-and-childcare-center-directors.htm
U.S. Census Bureau · 2022
County Business Patterns: Child Day Care Services (NAICS 624410)
https://www.census.gov/programs-surveys/cbp.html
U.S. Small Business Administration · 2026
7(a) loan program & size standards (child day care services)
https://www.sba.gov/funding-programs/loans/7a-loans
U.S. Small Business Administration · 2026
504 loan program for owner-occupied real estate and major equipment
https://www.sba.gov/funding-programs/loans/504-loans
U.S. Census Bureau (BDS) & BLS Business Employment Dynamics · 2024
New-business 5-year survival rates
https://www.census.gov/programs-surveys/bds.html
Texas Department of Licensing and Regulation (TABS project registry)
Registered daycare renovation projects: 5,980 sq ft for $350,000; 4,936 sq ft for $150,000
https://www.tdlr.texas.gov/TABS/Projects/TABS2021010853
Industry
Child Day Care Services industry data (limited/secondary) · 2024
Per-center tuition, ratios, and unit economics (directional, secondary anchor)
https://www.census.gov/programs-surveys/cbp.html
First Five Years Fund (reporting Child Care Aware of America data) · 2025
Price of child care rose to $13,128 a year in 2024; center supply up 1.6%
https://www.ffyf.org/2025/05/16/new-resource-reveals-notable-changes-in-price-and-supply-of-child-care/
Chapin Hall at the University of Chicago
Evaluating Colorado's early child care facilities: nearly 75% of programs operate in buildings originally designed for other purposes
https://www.chapinhall.org/research/evaluating-colorados-early-child-care-facilities-a-review-of-the-physical-state-of-properties-and-potential-for-expansion/
Local Initiatives Support Corporation · 2025
Early learning facilities in Connecticut: most centers operate in repurposed spaces not originally built for child care
https://report.lisc.org/el-facilities-ct-2025/current-state-of-facilities
Market & valuation
BizBuySell · 2025
Day care and child care center valuation benchmarks, 2021 to 2025: median sale $395,000; median SDE $132,779; median 2.72x SDE
https://www.bizbuysell.com/learning-center/valuation-benchmarks/day-care-child-care/
Regulatory
First Five Years Fund (from ACF approved CCDF State Plans FY 2025-2027) · 2026
Child-staff ratios in center-based care, by state
https://www.ffyf.org/wp-content/uploads/2026/05/Ratios-By-State.pdf
Commonwealth of Virginia
Child day center space rules: 35 sq ft indoor and 75 sq ft outdoor per child
https://law.lis.virginia.gov/admincode/title8/agency20/chapter780/section310/

This is just the surface

The full model is the complete, interactive deep-dive, and every business here is built to the same standard: a live economics simulator you tune to your own numbers, an interactive 3D walkthrough, a location scorecard, an owner-fit assessment, a buy-versus-build comparison, and the full breakdown of how it makes money and what quietly kills margin.

Monthly
$99 for your first 3 months

then $29 a month

Time to choose and start, then month to month.

$99 today for your first 3 months, then $29 a month until you cancel.

YearlyBest price
$199 a year

about $17 a month

The best price: a year to decide, open and run it.

$199 today, then $199 each year until you cancel.

Renews until you cancel. Cancel any time from your account; you keep access to the end of the period you paid for, and your saved plans stay in your account. What membership opens

smbnest is a self-assessment tool. It does not give individualized financial, investment, legal or tax advice. Figures are estimates and benchmarks, not forecasts. Speak with a qualified financial adviser and a licensed attorney before you start, buy, finance or sign anything.