Importance of Child Care Centers:They are known by several names, but their primary job is to prepare children for going to schools when they are ready. Since the nuclear family structure precludes rearing of children in the lap of doting grandparents, every parent longs for tender care for the child. Day Care Centers and Pre-School Playgroups not only fill the vacuum but also lay a sound foundation for the child to undergo all-round personality development. Riding on this principle, these centers have mushroomed across the country as a profitable business opportunity.
Prospect of Day Care / Pre-School Center:The vibrancy in the industry is because of the size of the target audience. As per the last Indian census in 2011, children in the 0-6 year bracket number a whopping 164.8 million. Market studies have further averred that the industry is likely to grow at a healthy rate of 22% for the next few years. Looking at the huge potential for growth, more and more entrepreneurs are joining the bandwagon with innovative ideas to cater to the twin working culture prevalent now.
Designing a Plan for Pre-School Business:In tune with the huge growth potential, it is natural that the industry that is poised for new entrants with expertise in the field will result in a sea change in the curriculum. Thus an entrepreneur must have in place a definite plan and go about setting up the centre and running it methodically. The draft plan should also be effective in seeking finance from lenders that must have the following components.
- Strength of children and requisite staff
- Fee structure
- School Policies.
- Location and Infrastructure
- Hours of operation
- The requirement of funds – loans and grants.
Steps to Establish A Day Care Center Business:Setting up a center to look after and prepare tiny tots for school require a meticulous approach and passion for childcare: The following steps are the bare minimum for setting up a viable unit
- Locate suitable premises: It is vital to get a good number of children to enroll. An ideal place is near a residential locality where it is convenient for parents to drop and pick their wards.
- Obtain appropriate licenses and permissions: It can vary depending on the State. You have to perform thorough research to compile the list and ensure compliance in all respects.
- Hiring Staff: It is one of the crucial aspects of starting a daycare It has the potential to make your business venture a success or failure. Parents are normally inclined to for the best for their children. Finding staff with the right skills with proper background checks is extremely important.
- Devise Curriculum: This can be the factor that discerns your center from the others. Adopting innovative techniques for the tiny tots require great thought, imagination, and
- Marketing: Proper marketing is a vital component for the success of all business ventures. There are several ways to market your center to evoke interest. Some of the effective ways are:
- Circulating print ads.
- Engaging in social media for a vast audience.
- Arrange for listing in local directories.
- Interacting with the parents and reviewing their feedback.
- Arrange regular events for the kids to generate buzz and interest in the neighborhood.
- Raise Funds: As long as you do not have the capital in hand to launch your project, you shall be in a state of flux. The solution is to apply for a loan from a lender. There are some tailored schemes for daycare business in the market. Banks and NBFC is a viable option. Lendingkart, a digital NBFC, offers a host of small business loans to prospective borrowers on competitive terms.
Finance Requirement for Day Care Business:The expenses of this business can be broken up into some key areas for seeking a loan from a lender. The vital areas are:
- Infrastructure: Premises, furniture and fixture, books, and other teaching aids.
- Record Maintenance: You need to maintain a well equipped computerized office to maintain training materials and all other records. It is inclusive of legal compliances.
- Marketing: It is important to sustain a comprehensive marketing campaign.
- Working Capital: Like any business, the daily recurring expenses have to be catered for.
Eligibility Criteria for Day Care Business Loan:The criteria for any Fintech company are normally in this pattern:
- Proprietor, Limited Liability, and Private Limited Company and Partnership.
- Operational vintage for periods specified by the lender.
- Minimum specified turnover over a period of time.
Documentation for Day Care Business Loan:
- PAN card of the promoter and business along with other valid documents for KYC compliance.
- Financial reports and statements specified by the lender.
- Business-related documents, like the incorporation of the enterprise, including a deed.
- Aadhaar card for the promoter.
The application process for Day Care Business Loan:At Lendingkart, the process is accomplished in the following steps in a digital platform:
- Online loan application.
- Upload of documents.
- Await sanction and disbursal.
Fees, Charges, and Other Features:
In a range of 15% and 27% per annum
Upfront processing fee
Maximum 3 years
Monthly and bi-monthly.
Loan for Pre-School Business FAQs:
1. Is GST registration required for a daycare center?
Yes, it is mandatory.
2. What is the rate of GST, and where is it applicable?
The applicable rate is 18% applicable to the following:
- Meals and other catering arrangements.
- Security and housekeeping services for the upkeep of the center.
- Admission and conduct of exams and tests.
3. What is the maximum quantum of loan considered?
At Lendingkart, the maximum amount of small business loans is Rs.2 Cr.
4. What is the turnaround time for a business loan?
It depends on the lender. At Lendingkart, the time is 72 hours.
5. What collateral do you have to provide at Lendingkart for a business loan?
Since business loans at Lendingkart are unsecured, no collateral is required.