Connecticut is arguably the best state for childcare business opportunities in the U.S. for 2018, as it outranked other countries in terms of cost, quality, and affordability of services based on an analysis.
The Care Index report was the first of its kind to provide a comprehensive look at the existing condition of daycares in the country. The three parameters not only matter to parents but also for those who aspire to own a business in the segment.
Judging the Market
When it comes to affordability, North Dakota offers the cheapest care that’s possibly lower than the estimated average annual expense of $18,000 in the U.S. Massachusetts had the best availability for services, while Hawaii had the best quality of care for 2018.
It’s easy to see why most parents would decide against paying for childcare since $18,000 is already the median housing cost. For this reason, targeting the upper-income class should be your objective when planning to open a new childcare business. Many franchise brands like KLA SCHOOLS operate nationwide, and this can give you freedom in choosing the right location.
The Worst States for Childcare
Connecticut landed on the top spot after the analysis described its quality and affordability of service as the second-best in the country, despite being the 24th most expensive nationwide. By contrast, West Virginia had the costliest and poorest quality of service. The index showed that families had to spend almost the average household income for child care expenses in the state.
On the other hand, Alaska had the worst availability of service in the U.S. Hawaii ranked behind, but its quality of care and cost of service allowed it to rank on as the 10th best state overall.
Pros and Cons of a Childcare Business
Those who wish to set up their own small daycare should know that while you save money instead of pursuing a franchise, there are certain drawbacks, particularly for home-based care. The first one, and likely the most important, involves building trust among your clients. Your home must be child-friendly, and this requires significant upgrades if your house is not yet a suitable environment.
Insurance is another requirement as well as certain licenses that will depend on where you live in the country. Even if you meet all of the requirements, clients aren’t going to pour in simply for the reason that some people are too picky with whom they entrust their kids. This is where brand recognition from a franchise will be useful. Despite the higher upfront cost, a franchise model can offer support from having the right facilities to marketing campaigns.
In the end, demand for daycares will remain steady because a lot of parents will always need extra help with their kids. While this can be a lucrative venture, you need to have a genuine interest in taking care of children aside from choosing the right business model. Consider a franchise brand to jump-start your own enterprise without worrying about finding the best location and establishing a customer base.