Small neighborhood preschool center

Parents of children roughly 2 to 5 years old, and in some states government child care subsidy programs for approved providers.

Monthly tuition per child for half-day or full-day places, plus registration fees. Income grows as enrollment fills toward your licensed capacity.

• Early childhood education knowledge
• Managing and training staff
• Budgeting and parent communication

• State licensing, including director qualifications, staff ratios, background checks and facility inspections
• Zoning, fire marshal and building code requirements for the space, and lease terms
• Fit-out costs for the space (child-sized bathrooms, safety features, fencing, flooring) can be large, so get contractor quotes before signing a lease
• General liability and workers' compensation insurance, plus possible abuse and molestation coverage
• Health department rules if you serve meals, and any food program requirements
• Slow early enrollment while fixed costs like rent and wages continue, so keep several months of operating cash in reserve

Startup costs are typically estimated at around $80,000 to $300,000, depending on the space, lease terms and fit-out. Child-sized bathrooms, safety features, fencing and flooring can be large, so get contractor quotes before signing a lease.

Monthly revenue is typically estimated at around $8,000 to $40,000, depending on enrollment and fees. Early enrollment can be slow while rent and wages continue, so keep several months of operating cash in reserve.

Check state licensing, including director qualifications, staff ratios, background checks and facility inspections. Also check zoning, fire marshal and building code requirements for the space, insurance, and health department rules if you serve meals.