You love kids and you’re passionate about early childhood education and development, so it just makes sense for you to open a daycare. But how many kids can you watch over? Do you need a childcare license? Are you allowed to open a daycare in your chosen area? Do you need home daycare insurance? Whether you have been in the industry for years and want to open your own daycare or you want to start a small operation that watches over the neighbourhood kids, it can be easy to become overwhelmed with all the rules and child care regulations. That’s where this guide for how to open a daycare in Ontario can come in handy.
As your top insurance brokers, a natural consequence of providing expert insurance advice is that we learn a lot about the different industries we serve. We want your daycare business to be a success, so we’ve put together the top things you should do when considering how to open a home daycare in Ontario or any other type of daycare business.
Before you open your doors and start planning fun activities to keep the kids amused, there are a number of requirements to open a daycare in Ontario you should know about.
In Ontario, there are some different licensing requirements depending on your business type, and the type of child care center you run may or may not need to abide by certain rules and regulations. Generally, a childcare license is required for any child care provider that serves more than five children under the age of 13 years and includes child care centres, most daycares, and home child care overseen by a licensed home childcare agency. However, several types of child care businesses don’t need to be licensed, including:
If your business model doesn’t meet the above criteria, you will likely need to apply for a childcare license, which is issued by the Ontario Ministry of Education. However, even if your daycare type doesn’t need a license, it will still need to follow certain guidelines and regulations.
In addition to licensing requirements, other things you will need to research on how to open a daycare in Ontario include:
To have a successful daycare, be sure to follow all legal and licensing requirements. The licensing process can take some time, but it is a crucial step in how to open a daycare.
Like with any business, an important step in how to open a daycare in Ontario is to create a detailed business plan. Chances are, you may need to set up business accounts, purchase equipment, or rent or purchase a space, and if you need to borrow money, having a solid business plan in place for how to open a home daycare in Ontario or any other type of childcare business will go a long way in convincing banks and other financial institutions as well as landlords and leasers that you know what you’re doing, and will be a good person to invest in or rent to.
Typically, a business plan for how to open a daycare in Ontario should include information such as:
In a way, this step in how to open a daycare in Ontario ties in with the first step, as the information you’ve gained while researching how to start a successful childcare business can be applied to your business plan.
The next stage of opening a daycare in Ontario is to get your licensing and insurance in place. You can learn more about daycare and child care licensing requirements online on the Child Care Licensing System website. There are two types of licenses available:
The licensing process can take about four to six months, so it’s important to have everything you need sorted out, in the event you need to start the application process all over again.
One thing to also consider, especially when considering how to open a home daycare in Ontario, is the local zoning requirements, as you may need to obtain a permit or license to start a daycare in a residential neighbourhood. Make sure to check with the zoning department in your municipality to make sure the area you’re setting up your business in is zoned for and allows you to run a daycare centre, as otherwise, you could face hefty fines and will need to shut down.
Having insurance is one of the mandatory requirements for childcare businesses, whether you’re operating from home or in a rented commercial facility, and depending on your program type, you will need different insurance coverage.
For example, a daycare operation in a commercial facility will require a comprehensive daycare policy as part of their small business insurance package, and include things like:
However, some home-based operations will only need an endorsement to their existing home insurance policy to get the coverage they need. The insurance needs can differ so much due to the risks associated with each business. So make sure to speak to a Morison Insurance broker about what type of insurance coverage your daycare requires.
Remember, every business has risks, and when you’re caring for others, especially young children, you want to make sure you are covered with the right insurance when going through this step in how to open a daycare in Ontario.
With your business plan, licensing, and insurance requirements sorted, the next step in how to open a daycare in Ontario is to get your daycare set up and hire staff.
By now, you should have access to the facility you are setting up your operation in, if you’re operating a commercial daycare facility. If you’re operating a home-based daycare, then you should get to work preparing the space. Either way, consider things such as:
Keep in mind that you will need to follow safety regulations such as the cleanliness of toys and daycare equipment, meals, fire drills, and record keeping, so make sure your space can accommodate that.
On the staffing side, that largely depends on the number of children attending. Ontario’s Child Care and Early Years Act (CCEYA) regulates staffing requirements for daycares based on ages and numbers (staff to children ratio). For example, there must be at least one staff member for every three children under 12 months of age, and one staff member for every five children in the age range of between 18 months and 2.5 years old. However, there are additional requirements, such as staff having an Early Childhood Education degree or diploma and passing a comprehensive employee background check, including criminal record and vulnerable sector checks.
Once hired, you will also want to make sure your staff receive ongoing training to ensure they can provide the best care and support to your young charges. First aid and CPR, proper hygiene and sanitation, emergency procedures, child development, behavior management, and communication skills should be topics that receive ongoing training, no matter the form.
The demand for childcare services is high, so it is important that you market your childcare center to help generate business and stand out amongst your competition. You should have done your research and crafted your marketing plan in the earlier steps, but don’t be afraid to change it based on what works.
Having a online presence with an informative website, testimonials and a solid social media presence will be a handy tool for your business. Not only is it a great marketing plan, but it will also allow you to update parents and share activities the children under your care are doing. However, keep in mind that you will need to commit to a regular posting schedule, as infrequent posting may cause people to lose interest. Additionally, you will need to be careful when posting images of minors, especially for use in promotional activities. Make sure you have parents and guardians sign a consent form before you post any images of that child, and ensure your staff knows what children they can or cannot post pictures of.
Some other great marketing ideas is to put ads in local family magazines or post flyers at local grocery stores and coffee shops.
Although there are many steps in opening a home daycare, it is important to have fun as a childcare business owner! By following these steps for how to open a daycare in Ontario, you can have a successful daycare and creates a safe and nurturing environment for the children you care for.
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not intended as a substitute for professional advice. Should you decide to act
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