How to Start a Preschool: A Step-by-Step Guide

Demand for quality early childhood education is high, and waitlists are long. If you love working with young children, starting a preschool can be both a meaningful and financially sustainable path—but you’ll need to understand licensing, safety rules, staffing, curriculum, and how to run it as a real business.

This guide walks through how to start a preschool step by step—whether you’re opening a center, starting a preschool in your home, or exploring Montessori and franchise options.

TL;DR: How to start a preschool

• Check your state rules first: Every state sets requirements for licensing, staff qualifications, ratios, and facilities. Start with your state’s child care licensing site and build your plan around those rules.
• Write a simple business plan: Decide on the ages you’ll teach, hours, enrollment capacity, tuition, and staffing. Run the math to see if your preschool can cover costs and pay you a salary.
• Choose your model: You can start a preschool in your home, open a center, launch a Montessori-style program, or buy into a preschool franchise. Each path has different costs and requirements.
• Secure your location and licenses: Make sure your home or center meets safety and zoning rules, then apply for your child care license, business licenses, and inspections.
• Hire and onboard staff: Meet your state’s teacher or director qualifications, complete background checks, and set up schedules, time tracking, and payroll.
• Set tuition and enroll families: Define your program options, prices, policies, and enrollment process. Market locally, host open houses, and focus on building trust with parents.

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How to start a preschool: Step by step

Use this as a roadmap (from licensing and business planning to space, staffing, and enrollment) so you can build your preschool in manageable stages.

1. Research state preschool licensing requirements 

Before you do anything else, find your state’s child care or preschool licensing agency. Licensing details vary by state, but most preschool programs must meet the same core requirements.

• Teacher & director qualifications: States usually define what counts as a qualified director or teacher: early childhood degrees, Child Development Associate (CDA) credentials, or a combination of education and experience. There are often minimum annual training hours in child development, health and safety, and emergency procedures.
• Background checks: Anyone working with children will need background checks, which may include fingerprinting, criminal record checks, and child abuse registry checks. Many states require updates every few years.
• Child-to-staff ratios: You’ll be required to maintain certain ratios (number of children per adult) and group sizes based on age. These ratios drive your staffing plan and your maximum enrollment, so build them into your business plan early.
• Facility, fire, and health inspections: Inspectors will look at exits, alarms, extinguishers, playground safety, sanitation, and how you store hazardous materials. Keep inspection reports and fix lists organized; you’ll likely be checked again on a regular schedule.
• Curriculum and program standards: Some states set minimum requirements for curriculum, screen time limits, and daily schedules. Others simply ask that you align with state early learning standards. Either way, having a written curriculum plan helps with licensing and with marketing to parents.
• Employment-side compliance: For wages, breaks, and overtime, check out our state labor law guides.

Here’s a quick look at how the licensing process works in Texas and Pennsylvania.

Texas preschool and franchise licensing: In Texas, the Child-Care Regulation division licenses child care centers, licensed homes, and school-age programs. To start a preschool or daycare center, you’ll:

• Review the state’s Minimum Standards for Child-Care Centers
• Apply to become a center-based provider
• Complete inspections and background checks before opening

If you’re starting a preschool franchise in Texas, your franchisor will help with brand and curriculum, but you’re still responsible for meeting state licensing rules.

Pennsylvania daycare licensing requirements:

• In Pennsylvania, the Department of Human Services licenses:
• Child Care Centers (7+ children)
• Group Child Care Homes (7–12 children in a residence)
• Family Child Care Homes (4–6 children in a residence)

Each license type has specific requirements for space, staffing, ratios, and safety. Use the Pennsylvania Department of Human Services site to choose the right category and follow its application and inspection steps.

2. Create your preschool business plan

Now put your idea into a simple plan. You need to decide:

• Who you serve: Ages, hours (half-day, full-day, extended care), and neighborhood.
• Capacity: How many children you can enroll based on space and ratios.
• Staffing: How many teachers and assistants you need to cover your hours.
• Pricing: Tuition and fees that match your market and cover costs.
• Costs: Rent or mortgage, payroll, insurance, food, supplies, and software.
• Positioning: Your mission, target families, and how you stand out from nearby preschools and daycares.

At this stage, you’ll also want to think about business structure and risk at a high level:

• Many small preschools choose an LLC for liability protection and relatively simple taxes.
• Larger or multi-site programs may use a corporation (like C or S Corp).
• Nonprofits suit community or mission-driven programs that want to accept donations and certain grants, but come with stricter governance.

You’ll also want to budget for insurance (general liability, professional liability, property, and workers’ comp if you have employees) and be realistic about startup costs. Home-based programs may launch with a few thousand dollars, whereas centers, Montessori programs, and franchises can easily reach six figures, often funded through savings, loans, and childcare-specific grants.

Even a one-page plan helps you see whether your preschool can realistically break even and become sustainable.

3. Choose your preschool model

Your model will drive your costs, licensing path, and daily work:

• Home-based preschool: Lower startup costs and smaller group sizes, but tighter enrollment caps and more overlap between home and work life.
• Center-based preschool: Higher upfront costs for acquiring and setting up space, but more room for enrollment and revenue.
• Montessori preschool: Emphasizes self-directed learning, mixed-age classrooms, and specific materials. If you market yourself as Montessori, families will expect Montessori-trained staff, authentic materials, and a child-led curriculum. Or, you can call yourself “Montessori-inspired” if you’re borrowing from the approach without formal affiliation.
• Franchise preschool: You follow an established brand and curriculum in exchange for training and support. Pros include a known name and pre-built systems; cons include upfront franchise fees, ongoing royalties, less flexibility, and generally higher capital requirements.

Choose the model that fits your budget, local demand, and how hands-on you want to be in designing the program.

4. Secure a location & meet safety requirements

For a center-based preschool, look for:

• Zoning that allows child care
• Enough square footage per child
• Safe bathrooms, exits, and kitchen/food prep options
• Outdoor play space or safe access to a nearby playground

For a home-based preschool, confirm home-occupation rules, any HOA restrictions, and which parts of your home can be used for care. Plan for childproofing, safe storage for cleaning supplies and medications, and clear evacuation routes.

In both cases, think about traffic flow for drop-off and pick-up, visibility for supervision, and how easy it will be to keep spaces clean and compliant.

5. Apply for licenses, permits, and inspections

Licensing can feel like a lot, but it’s more manageable when you know what to expect. You’ll likely work through some combination of:

• Registering your business (LLC, corporation, or nonprofit)
• Getting a local business license
• Applying for a child care/preschool license
• Completing background checks and clearances
• Passing fire and health inspections

Use a simple checklist to track forms you’ve submitted, inspections you’re waiting on, and deadlines for follow-up.

6. Develop your curriculum & daily schedule

Licensing focuses on compliance; families focus on learning and routine. When you’re planning curriculum and your day:

• Choose an approach (play-based, Montessori-inspired, faith-based, etc.).
• Align with state early learning standards where applicable.
• Build a predictable daily rhythm: arrivals, circle time, centers, outdoor play, meals, rest, and transitions.

Start simple and stay consistent. You can always add enrichment (music, language, special events) once you’re running smoothly.

7. Hire preschool teachers & staff

These are the people who make your preschool run, so you’ll want to choose carefully.

• Start by meeting your state’s requirements for director qualifications, lead teacher credentials or experience, and required training hours.
• Write clear job postings and recruit for a director or leader, teachers, and assistants; add floaters or admin support as you grow.
• Build a streamlined onboarding process so every new hire gets the same introduction to your curriculum, daily routines, safety procedures, and communication expectations before they take on a full group.

A simple hiring and onboarding checklist goes a long way toward consistency here.

8. Set tuition, policies, and enrollment process

You’ll need these critical structures in place to help your preschool run smoothly and profitably:

• Tuition and fees: Use local preschools and daycares as benchmarks, then set your own monthly or weekly rates plus any registration or supply fees.
• Schedules: Decide which time slots you’ll offer (full-time, part-time, mornings only, school-year vs. year-round).
• Policies: Spell out illness, late pick-up, holidays, payments, and behavior expectations in a family handbook.
• Enrollment: Define how families inquire, tour, apply, join your waitlist, pay deposits, and secure a spot.

This is also a good time to outline your brand and basic marketing: a simple website with your program details and tuition ranges, photos of your space and staff (with permission), and a clear way to book a tour or join your waitlist.

9. Prepare your classroom space

Design each room with safety and learning in mind:

• Learning centers (blocks, dramatic play, art, books, sensory, science)
• Age-appropriate furniture and materials
• Cozy areas for books and quiet time
• Accessible storage and labeled bins
• Outdoor play with secure fencing and safe surfacing

Do a final walk-through with fresh eyes: are there any tripping hazards, blind spots, or unsecured items children could pull down? Make sure you have a straightforward system for tracking attendance and keeping daily communication with parents consistent, whether that’s a paper sheet, app, or a simple shared process.

10. Preschool marketing, enrollment, and launch 

Once your program and space are ready, the next step is getting on local parents’ radar and turning their interest into full, happy classrooms. 

Building your brand, website, and enrollment process

You don’t need a big marketing team, but you do need:

• A simple, clear website with your program details, tuition ranges, and contact info
• Photos of your space and staff (with permission)
• A clear way to inquire, tour, or join your waitlist

Marketing to parents

Most parents find preschools through word-of-mouth, local social media groups, pediatricians, and neighborhood networks. Share what makes your preschool special and make it easy to book a tour or attend an open house.

As you open, make sure to:

• Host open houses and tours
• Share your calendar, policies, and communication plan with families
• Invite early families to share feedback and testimonials you can use to improve and promote your program

Most parents will find you through word-of-mouth, local social media groups, neighborhood networks, and referrals from pediatricians or community organizations. Make it easy to book a tour, ask questions, and see what a typical day looks like.

Before full launch, do a soft opening (like a trial day or week with reduced hours or a smaller group) so you can test routines and fix issues.

The first few months are all about building trust with families and smoothing out your systems. Once those are in place, growth becomes much easier to manage.

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How to start a preschool in your home

Starting a preschool in your home is often the lowest-cost way to get started, but there are a few things to keep in mind. 

Zoning and home-use regulations

Check local zoning rules and any HOA restrictions. Some areas limit the number of children, where in the home you can operate, hours of operation, or parking and traffic.

Safety standards for home learning spaces

You’ll need the same basics as a center: smoke and carbon monoxide (CO) detectors, childproofing, safe storage for chemicals and medications, covered outlets, and clear evacuation routes. Your licensing agency may also limit which floors or rooms can be used.

Outdoor space and supervision needs

Many states expect some daily outdoor time. That could mean a fenced yard with safe surfacing or regular trips to a nearby park with clear supervision plans. Ratios still apply outside.

Home-based enrollment caps and ratios

Home-based programs typically serve fewer children than centers. You may be limited to 4-6 children as an in-home family child care, or slightly more if you’re running a group childcare, depending on your state and ages served. Plan your tuition and schedule so the numbers work at those caps.

How to open a preschool with no money

You’ll always have some costs, but you can keep them low by starting from home, keeping materials simple, looking for grants or subsidies, and easing in with part-time enrollment while you build cash flow.

Start from home

Launching as a licensed home-based preschool lets you avoid commercial rent and big build-out costs. You’ll still need to invest in safety upgrades, licensing fees, and basic materials, but you’re working with the space you already have instead of paying for a new one.

Keep the curriculum simple

Early on, focus on open-ended toys, books, art supplies, and a predictable daily routine rather than expensive themed materials or specialty programs. A warm, stable environment and responsive adults matter more to families than a room full of pricey equipment.

Apply for childcare grants

Look into federal, state, and local grants or stabilization funds for child care providers, as well as food reimbursement programs. These can help cover start-up improvements, materials, or ongoing operating costs, especially if you serve low-income families or an area with limited child care options.

Start with part-time enrollment

Instead of offering full-time care from day one, consider a few part-time slots, mornings-only programs, or two to three days per week. That keeps staffing and operating hours manageable while you build your reputation and waitlist.

For more ideas on launching with limited capital, you can also pull ideas from our guide on how to start a business with no money.

Do preschools make money?

Preschools can be profitable, but how much money they make depends on your tuition, enrollment, staffing costs, and how tightly you manage your day-to-day expenses.

Average tuition revenue

Tuition is your main revenue stream. Exact numbers vary by location and program type, but a full preschool classroom paying monthly tuition can generate meaningful gross revenue—even in a small center—once your seats are consistently filled.

Typical margins

Many well-run preschools and daycares aim for net margins in roughly the 10–20% range once they’re established, though margins can be tighter in high-rent or high-wage areas. Early on, it’s normal to run closer to break-even while you build enrollment and pay off startup costs.

What affects profitability

Your biggest levers are:

• Occupancy: Keeping seats filled with the right mix of full-time and part-time enrollment.
• Labor: Scheduling staff efficiently while staying within ratios and labor laws.
• Rent and facilities: Choosing a space that supports your program without overextending your budget.

Tools like Homebase can help with accurate scheduling, time tracking, and payroll to make labor costs more predictable, so you’re not guessing at your largest expense.

Checklist for starting a preschool

Use this as a quick reference:

• Research state licensing rules
• Write your preschool business plan
• Choose your model (home, center, Montessori, franchise)
• Secure a location and confirm safety/zoning
• Apply for licenses, permits, and inspections
• Develop curriculum and a daily schedule
• Hire staff and complete background checks
• Set tuition, policies, and enrollment steps
• Prepare classroom and outdoor spaces
• Launch, market, and refine your operations

For a broader planning view, see Homebase’s small business checklist.

FAQs about starting a preschool

How do I start a preschool business?

Start with creating a sound business plan. Your preschool business plan should cover your mission, target families, competition, program options, staffing, and financial projections. Then, decide on your business structure. LLCs are common for small preschools (simple, protects personal assets), Corporations work for growth-focused programs, and nonprofits suit mission-driven programs seeking grants. Consult an accountant or attorney before deciding.

For insurance, you'll need general liability, professional liability, property insurance, workers' comp (if you have employees), and often abuse/molestation coverage.
When estimating startup costs and figuring out financing, home-based programs may start for a few thousand dollars; centers can reach six figures. Explore savings, loans, local economic development funds, and childcare-specific grants.

What qualifications do you need to open a preschool?

To open a preschool, you typically need to meet your state’s director and teacher qualification requirements, complete background checks, and hold the correct child care license. Some states require specific degrees or credentials; others allow a mix of education, experience, and training.

How do I start a preschool franchise in Texas?

To start a preschool franchise in Texas, you’ll partner with the franchisor on brand and curriculum, then apply for a Texas child care license through the state’s Child-Care Regulation division. Your location has to meet both the franchise’s standards and all Texas licensing requirements.

How long does it take to start a preschool?

Home-based preschools can sometimes open within a few months; center-based or franchise programs with build-outs and multiple inspections can take 6–12 months or more.

Is opening a daycare the same as starting a preschool?

Opening a daycare is similar to starting a preschool in that many states regulate both under the same child care laws, but they’re not always identical. The main differences are often ages served, daily hours, and program focus, so you’ll want to check how your state defines and licenses each program type.

Conclusion: Turning your preschool plan into reality

Starting a preschool is a big project, but with our step-by-step guide to starting a preschool business, you can tackle it bit by bit. Make sure you learn your state rules, choose a model, write a business plan, and then layer in space, staffing, curriculum, and enrollment.

Once you’re open, the focus shifts to running things smoothly every day. Tools like Homebase can help with scheduling, time tracking, team communication, and payroll, so you can spend more time with children and families—and less time wrestling with admin.

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