A Child Care Business Might Amplify Your Entrepreneurial Journey Catering to time-crunched working parents, investors through childcare businesses are revamping the segment, making it more beneficial, productive, and lucrative with changing times

By Franchise India Staff

This story originally appeared on Franchise India

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Catering to time-crunched working parents, investors through childcare businesses are revamping the segment, making it more beneficial, productive, and lucrative with changing times. In fact, it's hard to ignore the fact that the childcare industry is evolving at a rapid pace, which is being widely accepted by parents across the globe and India.

Quoting the TechSci Research report, "The Indian child care industry/market is all set to grow at an enormous pace in the upcoming few years. In fact, the numbers can rise to a CAGR of around 23 percent during 2017-2022."

The Booming Factor

Every business sector has its own factors responsible for the growth happening within the industry. Similar is the situation with the childcare industry. Being driven primarily by factors such as rising parent disposable income, time-crunched working parents, growing awareness of early education and care, and increasing working women in the country, the childcare industry is all set to boom rapidly with time, emerging out as a lucrative segment for investment.

Parents that are working full time usually head towards childcare firms for their wards to ensure their safety as well as the learning and development that takes place during these formative years. Investors, by starting their child care business, could target such parents, ensuring them a reliable system for their child's growth and development.

Tier II & III Cities

Indian brands that have lately showed interest in growing their branches in tier II and III regions have eventually turned out to be a fruitful step. Business owners are now targeting these regions in order to expand their services along with tapping the untapped areas in such regions. Moreover, the rising disposable incomes of people in such regions are asking for firms that cater to the childcare industry.

Hence, it might be the right time and decision to invest in the childcare industry that could eventually bring success to the brand along with increased brand awareness.

Costing for Starting a Childcare Business

Costing is that crucial business component that almost has every investor's attention. Establishing a childcare centre is indeed a daunting task that requires a good flow of energy, time, and money of an investor. Some of the different sections where your costing might increase while starting a child care business are:

  • Choosing a location for the business
  • Operating expenses (employee wages, rent, utilities)
  • Legal expenses (licensing fee, liability insurance)
  • Advertising expenses

Childcare Business Facts

Estimated cost for a home-based childcare firm: INR 7-15 lakh

Estimated cost for a franchise-based childcare firm: INR 41-75 lakh

Space requirement: 1500-2000 sq.ft

Anticipated percentage return on investment: 75 percent

Likely payback period: 1 year

This article was originally published by Shahram Warsi.

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