Understanding the Community

Determining Need

The first step in starting a new center is determining the need in the community for child care. First, find out what types of child care are currently available in your community, by talking with us, as well as town or city government offices, or the state licensing office. Informally, you can check your local Yellow Pages, parents' newspapers, and other publications for advertisements that will give you an idea of how many centers are already in business.

When gathering this information, you should focus on:

• Total number of centers in the community, and ages of children being offered care
• Hours offered by other centers, whether early morning or evening care is offered, and availability of part-time or flexible care
• Whether centers have waiting lists or a lot of vacancies
• Location of available centers

Options in a Competitive Environment

If you discover that other centers have many vacancies -- or, conversely, are experiencing difficulty in hiring qualified staff -- you may then revise your business plan to address the competitive environment.

Options to differentiate your program include:

• Providing care in a different community with higher demand and lower supply (where centers have a low vacancy rate)
• Providing non-traditional hours of care not offered by other centers (e.g., evening/weekend care, or overnight care)
• Providing higher quality care and paying higher wages than other centers (e.g., hiring well-educated, experienced staff)