There are many false beliefs that aspiring daycare operators hold, and basing an entire business on these misconceptions can be a recipe for failure. It is dangerous to assume that success will come easily without verifying key facts. Unfortunately, many aspiring owners neglect to conduct thorough research, either out of laziness or blind optimism. However, just like constructing a castle, believing the land beneath is solid without inspecting it can lead to disaster. If the ground turns out to be hollow, with an underground lake beneath, the foundation will eventually collapse. The same applies to starting a daycare based on false assumptions—it may seem promising at first, but it will not stand the test of time. This article will explore some of the most common myths among aspiring daycare operators and why believing in them may lead to failure.
I Will Get CWELCC for My New Centre for Sure
Many aspiring daycare operators assume that they will automatically receive funding through the Canada-Wide Early Learning and Child Care (CWELCC) program and that, once approved, there will be nothing else to worry about. This belief is completely false. The CWELCC funding is limited, and each region decides who gets approval based on specific criteria. Moreover, these decisions can change over time. For instance, at the time of writing, the Peel region is only approving non-profit childcare centers. Other regions may only grant funding if the daycare is located within a designated priority zone, and those zones can shift over time as well. If an operator builds their entire business model on the assumption that CWELCC funding is guaranteed, they are setting themselves up for failure. A successful daycare must be financially sustainable even without CWELCC approval.
If I Build It, They Will Come
Some operators believe that simply opening a daycare guarantees enrollment. They assume that parents will automatically find their business and start signing up their children. This assumption is extremely risky. Location, market positioning, and niche targeting all play a crucial role in attracting families. Without a well-thought-out marketing strategy, proper staff training, and a compelling reason for parents to choose your daycare, there is no guarantee that children will enroll. Ask yourself: why would parents pay $1,500 a month at your daycare when they could pay the same amount at a well-established center five minutes away or even just $440 at a CWELCC-funded daycare? Success in this business requires more than just opening a center—it requires careful planning, differentiation, and marketing to attract families.
I Can Easily Find a Daycare-Ready Location to Lease Without Renovation
Many new operators dream of finding a turnkey daycare location that requires little to no renovation. While this would be ideal, the reality is that such opportunities are rare. Even if a location previously operated as a daycare, it is highly likely that renovations will still be necessary to bring the space up to current building codes and Ministry of Education (MOE) requirements. Regulations change over time, and what was once compliant may no longer meet the latest standards. This means that even if you find a previously licensed daycare space, you will likely need to invest substantial money to update the facility. Believing that you can simply move into a ready-to-go space without additional costs is a fundamental mistake.
All Daycares Are Full with Thousands of Kids on Waiting Lists
It is common to hear aspiring daycare operators claim that ALL daycare centers are full and have long waiting lists. While many daycares do have high demand, some struggle to fill their spots. The introduction of CWELCC has certainly increased demand, as families who may not have originally planned to enroll their children in daycare are now taking advantage of the lower fees. Some stay-at-home parents who would have otherwise kept their children at home are now placing them in daycare for as little as $200 to $400 per month, freeing up their time for other activities. Additionally, some families that relied on grandparents for childcare are now entering the daycare system due to the affordability CWELCC provides.
However, while CWELCC-funded centers may have long waiting lists, that does not mean parents are willing to pay $1,500 to $2,000 per month for a private daycare if they are unable to enrol in a CWELCC centre. Families that were not initially planning to pay for daycare are unlikely to suddenly start spending thousands of dollars; they can simply return to their original plans of staying home or using family care. Many aspiring operators decide to open a daycare because they or someone they know struggled to find a spot for their child. While this may spark an interest in the business, it should not be the only due diligence to drive the decision. Proper due diligence is required to determine whether there is actual demand for your daycare at your price point.
Failing to Plan Is Planning to Fail
Many aspiring daycare owners jump into the business without a solid plan, believing that passion will be enough. However, operating a daycare requires careful financial planning, compliance with licensing requirements, staff management, positioning and a well-thought-out marketing strategy. The daycare industry is competitive, and those who do not plan carefully will find themselves overwhelmed by the challenges that come with running a business.
If you fail to plan, you are planning your own failure. Do your due diligence, understand the realities of the industry, and build a business model based on facts rather than assumptions. Only then can you create a daycare that is truly set up for success.
