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daycare business
Most parents in metro cities take up jobs to give their families and kids a better lifestyle. However, when the children are small, giving them due attention and catering to their needs becomes challenging. Since most couples live away from their hometowns, they don't have elders at home to take care of their kids. Therefore, daycare is the best solution where they can drop their children off when they go to work. With the increasing number of working mothers in urban areas, the demand for daycare centres has increased significantly.

Self-employed individuals looking for a profitable business idea may consider starting a daycare centre at home. In the following sections, you will learn ‘How to start a daycare business in India’.

What is a Daycare?

Daycare is a service-based business idea that involves caring for children when their parents go to work. If you love spending time with kids, opening a daycare centre will be a self-motivating, never-ending source of enthusiasm. Parents drop their children at your centre while going to the office and pick them up when returning home.

The daycare business also has a good scope of growth, as you can increase your space and hire more staff as your business demand increases. Those with experience of more than five years can get a Business Loan to expand their daycare centre operations to other localities.
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How to Start Daycare at Home in India?

Looking forward to starting a daycare business in India? These are the five simple steps to explain the process:

1. Market Research

Before setting up a daycare business, thorough market research is extremely important. Although it is a safe business type that does not require major risks and large capital investment, understanding the market demography is essential. Find your competitors in the locality, see how they perform, and check if existing customers are satisfied with their service.

2. Location

Parents sending their kids to your daycare centre prefer a close distance from their home or office so they can pick them up en route without wasting their time. Besides, choose a location while keeping the children's hygiene and safety in mind. Moreover, the site should be away from heavy pollution and traffic and easily accessible. Consider a competitive rental cost to minimise expenses if you rent a space. However, opening a daycare at home is a better way to handle your business and take care of your home simultaneously.

3. Organise Funds

A daycare business plan involves numerous expenses, including renting a suitable space, converting your garage into a daycare centre, acquiring licenses, hiring staff, training employees, investing in marketing, and handling daily expenses. The total cost can be a substantial amount you can fund with unsecured business financing. Research and compare various funding options to choose a loan scheme that best suits your requirement and repayment capacity.

4. Marketing and Advertising

Local communities, events, and parent groups are the best way to promote your daycare centre. Social media can also promote your facility successfully. You can also contact people in the locality to create awareness about your business. With the right marketing technique, you can spread the word about your business and attract customers over time.

5. Obtain a License

The Ministry of Women and Child Welfare has set guidelines on how to start a daycare business in India. These involve rules associated with the centre’s location, sanitation, safety measurements, precautions, employee-child ratio, furniture type, staff hiring, etc. You must obtain a daycare license from the relevant government authority to run legal operations. Also, ensure business registration to avoid any legal disputes. You can find the complete details in the Maternity Benefit Act, 2017.

How is a Business Loan Helpful to Start a Daycare Business in India?

Setting up a daycare business in India involves several costs and expenses, including organising the space, buying furniture, toys, and equipment, implementing the necessary safety measures, hiring and training employees, getting the required licenses, marketing, keeping kids entertained, etc.

Business financing in the form of an SME loan takes care of the costs, letting you focus on your daycare business plan. However, the applicant should have an experience of up to five years in a similar field.

Obtaining a Business Loan from Hero FinCorp is beneficial in many ways, including the following:

  • Ample loan amount of up to Rs 40 lakh to cover various expenses

  • Attractive interest rates to keep the loan cost low

  • Flexible repayment terms of up to 60 months to keep EMIs easily manageable

  • Easy eligibility conditions and minimal documentation requirements for easy qualification

  • No collateral requirement to secure the loan

  • No end-use restrictions, giving you freedom for loan usage

  • No profit-sharing while letting you retain complete control over loan decisions

  • No need to touch your savings or deposits

How to Apply for a Business Loan?

Not sure how to get a loan to start a business? These are the steps involved:

  • Visit the Hero FinCorp website or download our loan app to begin the application process.

  • Register using your email account or mobile number.

  • Enter details regarding your identity, employment, finances, loan requirement, business plan, etc.

  • Provide the necessary documents, including your identity, address, income proofs and financial records.

  • Wait for verification, followed by approval to get the loan offer.

  • Accept the loan offer to initiate the disbursal process.

Conclusion

Opening a daycare centre in India is a huge responsibility. Since parents are extremely sensitive about their children, managing everything in the right way is an arduous task. A small Business Loan from Hero FinCorp can help you fund the operations and expansion of your daycare centre without hassle. Ensure you meet the eligibility criteria and have a daycare business plan ready before applying.

Frequently Asked Questions

Q. What is required to open a daycare in India?

A good location, proper safety measures, kids-friendly staff, and sufficient business financing are prerequisites to opening a daycare in India.

Q. How much does it cost to start a daycare in India?

The cost of opening a daycare centre in India depends on its type, location, and size. For instance, you can save money by opening a daycare at your home instead of renting a space.

Q. How does daycare work in India?

Daycare is a service-based business where you care for children when their parents are at work. They drop their children at your centre in the morning when going to the office and pick them up in the evening when returning home. You must have the proper security measures, entertainment options, and qualified staff members to keep kids happy at your daycare centre.

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Did You Know

Disbursement

The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

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