How to Start a Daycare in Ontario: A Step-by-Step Guide

Starting a daycare in Ontario can be a rewarding venture, both personally and professionally. There were about 137,748 births in Ontario in the last couple of year, and the demand for quality childcare services continues to grow. Have you ever considered turning your passion for nurturing young minds into a thriving business?
Opening a daycare isn’t just about loving children; it’s about creating a safe, engaging environment where they can learn and grow. But where do you begin? From regulations to business planning, there are many daunting processes, to navigate.
This comprehensive guide will walk you through the essential steps to start your childcare business in Ontario. We’ll cover everything you need to know to set your business up for success, ensuring you’re well-prepared to provide top-notch care for Ontario’s little ones while building a sustainable business.
1. Create a Business Plan for Your Daycare
A well-crafted business plan will guide your decision-making, help secure funding, and provide a roadmap for growth. Your plan should include market analysis, service offerings, and financial projections. Here are some steps you need to remember.
Market Research and Analysis
Conduct market research to understand your target audience, competition, and the business landscape. You will have to:
- Identify the number of families with young children in your area and their childcare needs.
- Analyze existing daycares, their services, and pricing.
- Look for gaps in the market that your daycare can fill.
- Consider factors like location, operating hours, and specialized programs that might set you apart.
- Survey parents to gather insights on their preferences and pain points with current childcare options.
This information will help you tailor your services to meet local demand.
Defining Your Daycare Services
Outline the specific services your daycare will offer. Will you focus on infants, toddlers, or preschoolers? Consider offering:
- Full-time and part-time care options
- Before and after-school programs
- Summer camps
- Special needs support
- Bilingual or language immersion programs
Detail your proposed curriculum and educational approach: Highlight any unique features, such as outdoor learning spaces or nutrition programs.
Explain how your services will benefit children and parents. For instance, research shows that playing outside can improve the cognitive development of kids. If your daycare center has ample outdoor space, you can use such information to promote your brand.
Financial Planning and Projections
Create a detailed financial plan for your daycare. You can begin by assessing the startup costs, including:
- Licensing fees
- Facility renovations
- Equipment and supplies
- Initial staffing expenses
Project your ongoing operational costs:
- Rent or mortgage payments
- Utilities
- Staff salaries and benefits
- Food and supplies
- Insurance
Estimate your revenue based on projected enrollment and fee structure after researching the average childcare center’s earnings in Canada. This will help you set realistic goals; Don’t forget to include cash flow projections for the first three years of operation.
Plan for contingencies by considering different scenarios, such as lower-than-expected enrollment or unexpected expenses. This will help you secure your financial future.
2. Find the Perfect Location
Selecting an ideal location for your daycare can help you start the right audience. Consider zoning regulations, safety standards, and accessibility to ensure your facility meets all requirements and provides a nurturing environment for children.
Zoning and By-law Considerations
- Check the zoning laws: Knowing the restrictions for commercial operations in residential areas would help you ensure compliance. You can reach out to the local municipality to learn more about the zoning laws.
- Look into parking regulations: You’ll need adequate space for staff and parent drop-offs. Some areas even mandate a certain number of spots based on capacity. Make sure you’re aware of these requirements.
- Noise bylaws: Outdoor play areas might have time restrictions to minimize disturbance to neighbours.
- Review fire safety codes: Your building may need specific features like sprinkler systems or multiple exits, so make sure your center is equipped to meet the fire safety requirements.
Safety and Accessibility Requirements
- Space: Choose a location with ample indoor and outdoor space. Ontario regulations specify a minimum 2.8 square metres of unobstructed floor space for each child. You’ll also have to ensure the outdoor area is securely fenced.
- Ventilation: Look for a building with good natural light and ventilation. Windows should be childproofed and they should allow for easy evacuation in emergencies.
- Accessibility: Your facility must comply with the Accessibility for Ontarians with Disabilities Act, including wheelchair ramps, wide doorways, and accessible bathrooms.
- Amenities: Consider proximity to amenities like parks, libraries, or community centers to enhance your program offerings.

Traffic Safety: Avoid busy intersections and make sure there is safe pedestrian access for families walking to your daycare.
3. Design Your Daycare Space
Creating a safe, engaging, and functional space is crucial for your daycare’s success. Your design should prioritize children’s well-being, foster learning, and comply with Ontario’s regulations.
Indoor and Outdoor Layout
When planning your indoor layout, consider creating distinct areas for different activities. You’ll want spaces for play, learning, napping, and eating. You can make it easy to supervise by avoiding blind spots and using low-shelving units.
For the outdoor area, install age-appropriate playground equipment and create zones for various activities like sandbox play, gardening, and running games.
If your space has large windows and proper air circulation it will be a healthy environment for children and staff.
Equipment and Furnishing Essentials
Your daycare needs child-sized furniture and equipment to create a comfortable and safe environment. Here’s a list of essentials:
- Tables and chairs
- Storage cubbies for personal items
- Bookshelves
- Art supplies and easels
- Soft furnishings like rugs and cushions
- Nap mats or cots
- Age-appropriate toys and games
Ensure all furniture has rounded edges and is sturdy enough to withstand daily use.
Choose non-toxic, easy-to-clean materials for all surfaces. Don’t forget safety equipment such as first aid kits, fire extinguishers, and childproofing items like outlet covers and cabinet locks.
4. Obtain Necessary Licenses and Permits
Apply for a childcare license from the Ministry of Education for guidance on licensing requirements. You can contact the ministry at 1-877-510-5333 or email them at minister.edu@ontario.ca for any assistance.
Before applying, ensure your program meets all regulatory standards set by the Child Care and Early Years Act, 2014. This includes safety measures, staff qualifications, and facility requirements.
You’ll need to submit detailed floor plans, program statements, and policies for your daycare. The ministry will review these documents and conduct an on-site inspection.
Check with your municipality for zoning regulations and get any additional business licenses or local permits required. If you’re planning to operate a home-based daycare, different rules may apply; researching these would save you a lot of trouble.
All staff and volunteers must complete vulnerable sector checks every 5 years to maintain a safe environment for children in your care.
5. Set Up Your Daycare Operations
Establishing a well-organized daycare operation requires careful planning and attention to detail. You’ll need to implement robust health and safety protocols to ensure a safe, nurturing environment for children.
Developing Policies and Procedures
Create clear guidelines for daily operations, staff responsibilities, and parent communication. You can start by outlining your daycare’s hours of operation, drop-off and pick-up procedures, and payment policies. Develop a disciplinary policy that aligns with Ontario’s regulations.
Establish procedures for handling emergencies, such as medical situations or natural disasters. Creating a system for documenting incidents and communicating with parents will help you be prepared for emergencies.
Implement a curriculum that supports children’s development and learning by including structured activities, free play, and age-appropriate educational materials.
Health and Safety Protocols
Prioritize children’s well-being by conducting regular safety checks of your facility and equipment. Install childproof locks, cover electrical outlets, and secure furniture to prevent accidents.
Develop sanitation procedures for toys, surfaces, and common areas. Make sure you have a schedule for deep cleaning and disinfection.
Train staff on proper handwashing techniques and encourage frequent handwashing among children.

Establish food safety protocols if you provide meals or snacks. You need to implement allergy management procedures and maintain detailed records of children’s medical needs and dietary restrictions.
Create a policy for identifying and reporting suspected cases of child abuse or neglect, as required by Ontario law.
6. Hire Qualified Staff
Finding the right team will strengthen your daycare’s foundation. You’ll have to understand staffing requirements and invest in ongoing training to create a safe, nurturing environment for children.
Staffing Requirements
In Ontario, you must meet specific staff-to-child ratios based on age groups. For infants, you’ll need 1 staff member for every 3 children. Toddlers require 1 staff for every 5 children, while preschoolers need 1 staff for every 8 children.
All staff working directly with children must have a valid vulnerable sector check that needs to be renewed every 5 years.
Your daycare staff should hold an Early Childhood Education (ECE) diploma or equivalent qualifications. At least one staff member with ECE credentials must be present during operating hours.
Training and Professional Development
Ongoing training will keep your daycare staff up to date with the latest regulations. You should provide regular opportunities for professional development to enhance their skills and knowledge.
Consider offering workshops on child development, safety procedures, and inclusive practices. First aid and CPR certifications are mandatory for all staff.
Encourage your team to attend conferences and seminars related to early childhood education. This keeps them updated on the latest teaching methods and childcare trends.
You might also implement a mentorship program, pairing experienced staff with newcomers. This fosters a supportive learning environment within your daycare.
7. Market Your Daycare
A strong brand identity and strategic online presence can help your facility stand out in a competitive market.
Branding and Promotional Strategies
Create a unique name and logo that reflects your daycare’s values and mission. Choose colours and imagery that appeal to both children and parents.
Design professional business cards and brochures to distribute at local events and businesses. Consider offering promotional discounts for new enrollments or referrals. You can host open houses to showcase your facility and introduce potential clients to your staff.
Partnering with local pediatricians, schools, and family-oriented businesses for cross-promotion opportunities can increase the visibility of your center. Develop a tagline that encapsulates your daycare’s unique selling points and use it consistently across all marketing materials to reinforce your brand message.
Online Marketing and Social Media Presence
Build a user-friendly website that includes your daycare’s features, programs, staff qualifications, high-quality photos of your facility and testimonials from satisfied parents. Optimize your site for local search terms to improve visibility.
Use popular social media platforms like Facebook and Instagram. You can share engaging content such as daily activities, craft ideas, and parenting tips to encourage parent interaction and don’t forget to respond promptly to inquiries.
Consider starting a blog on your website to share valuable information about child development and parenting. This can help establish your expertise and improve your search engine rankings. Utilize email marketing to keep parents informed about upcoming events, new programs, and important updates. Offer a newsletter signup on your website to build your mailing list.
8. Enrollment and Communication with Parents
Strategic enrollment processes and open communication can drive your daycare’s success. You’ll need to manage registrations efficiently while building strong relationships with parents through regular engagement.
Handling Registrations and Waitlists
Creating a clear enrollment procedure: Develop registration forms that collect essential information about children and their families. Include medical details, emergency contacts, and any special requirements.
Digital system: Implement a secure digital system to manage applications and waitlists. This will help you track available spots and keep parents informed about their status.
Set up a fair waitlist policy: Consider factors like siblings already enrolled or proximity to your daycare. Be transparent about the process to avoid misunderstandings.
Offer tours of your facility to prospective families: This gives parents a chance to see your daycare in action and ask questions. It also allows you to assess if the child is a good fit for your program.
Building Trust Through Engagement
Establish regular communication with parents through email newsletters, text updates, and a secure parent portal on your website.
Create a welcoming atmosphere where parents feel comfortable approaching you with concerns or questions. Be responsive and address issues promptly.
Hold parent-teacher conferences to discuss children’s progress. This shows your commitment to each child’s development and keeps parents involved in their learning journey.

Organize family events or workshops throughout the year. These gatherings foster a sense of community and allow parents to connect with each other and your staff.
Consider using a daily report app to share updates about each child’s activities, meals, and naps. This real-time information helps parents feel connected to their child’s day.
9. Setting Tuition Rates and Financial Policies
When starting your daycare in Ontario, setting appropriate tuition rates and financial policies is non-negotiable for your business’s growth. You’ll need to strike a balance between affordability for parents and profitability for your daycare.
Begin by researching the average daycare costs in your area and consider factors like your location, services offered, and target market to determine your rates. Create a clear fee structure that outlines:
- Full-time and part-time rates
- Drop-in fees
- Late pick-up charges
- Sibling discounts (if applicable)
Be transparent about your payment policies. Decide on payment frequency (weekly, bi-weekly, or monthly) and accepted methods (e-transfer, credit card, or cash). Develop a policy for late payments, including any fees or consequences. You can also offer a small discount for parents who pay in advance or on time consistently.
Regularly review and adjust your rates to ensure they remain competitive and cover your expenses. Remember, providing high-quality care is essential, but your daycare must also be financially sustainable.
Frequently Asked Questions
Let’s address some common questions about licensing, costs, regulations, and potential profitability.
Resources for Starting a Daycare in Ontario
Government Resources
- Start a child care program
- Childcare Center Licensing Manual
- How to Start a Daycare in Ontario
- Operating a Childcare Business
- Zoning Bylaws
- Improving the Safety and Accessibility of Child Care
- Childcare Rules in Ontario
- Supporting Childcare in Ontario
- Planning and Design Guidelines for Licensed Child Care Centres
- Childcare Startup Costs
Industry Resources
- The Insider’s Guide to Starting a Successful Daycare in Ontario This Year
- Ontario’s new child care funding formula: A step forward, but more needed
- How Much Does it Cost to Run a Daycare
- 2024 Ontario Child Care Funding: Highlights of changes
- Child care in Canada: Types, cost, and tips for newcomers
Other Resources
- How to write an effective business plan
- Daycare Advertising: How to Advertise Your Child Care Business
- 12 Qualities of an Amazing Daycare Center
- Childcare Center Budget: How to Successfully Create and Balance Your Budget
- Daycare Activities for Kids
- Benefits Of A Licensed Home Daycare
- Designing Daycare Facilities With 4 Important Considerations
- Playful Learning Spaces for Babies and Toddlers
- How to Market Your Business in Canada in 10 Effective Steps
About the author
Maurice