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Friday, October 18, 2013

How to set up a Creche/Day Care School in Nigeria

A day care or crèche is a place where babies, toddlers and young children are kept during the daytime while their parents are busy with work. It’s a sort of playground/classroom setting where these younglings hang out, play, rest and are taking care of by trained handlers so that later in the day after work the parents can come pick them up.

The Opportunity

There is a high demand for Creche and day care schools in our urban centers in Nigeria. Why do I say that? How many working class mothers do we have in many of our cities? How many of them have nannies to look after their kids? Fact is toddlers can be a big distraction in the workplace and many mums know this hence why they choose to enroll their darlings in Creches and day care centers. This is the reason many primary schools set up nursery arms to serve as day care centers.

Who is the business for?

If you love children and you’re very good at looking after them then you may want to consider going into this business. However the challenge is always keeping your kids in safe hands and making sure that nothing bad happens to any of them. If you’ve handled children in Sunday school or have taught in a nursery school or have looked after children before then give it a try.

Marketing

This is a business you can start from your home informally approaching nursing or working mothers in your neighbourhood, at church or any other gathering letting them know what you do. If you wish to rent it makes sense to pick a room in a strategic location which is easy to access by your target group. You can later start printing fliers when you have attracted a small number of clients. Even if you can find 4 or more people initially it’s worth it, make do with that and as you become more consistent and better at what you do, you’ll gain more customers.

Requirements

To set up something like this you’ll need the following;
Mini Flat – N800,000 per annum
12 Small Chairs – N24,000
3 Small tables – N24,000
Toys – N40,000
TV set – N40,000
VCD player – N15,000
Book shelf – N60,000
Kiddies books and stationery – N30,000
Others – N500,000
Total: N1,533,000

How profitable is the Creche Business in Nigeria?

Like all businesses that depends on many factors but considering that parents pay N30,000 per term for nursery schooling you could charge each parent say N5,000 per month. Let’s assume you have 12 enrollments multiplied by 5 that’s N60,000 for the first month.

Breakdown first year (this is an estimate)

50 enrollments X N60,000 = N3 million
Running expenses (rent, salary, electricity etc) = N2.4 million
Profit before tax = N600,000
Return on Investment = 40%
Pay Back Period = 2 to 3 years

This is a business you can run for years without approaching banks for loans as it can expand on it’s own. It’s a cash cow.
Good luck.

If you need a well written business plan but don’t have the time or expertise you can contact a specialist business plan writer to do a detailed analysis of a business opportunity or market survey. Simply call: 0803 206 4106

22 comments:

  1. check the calculations again please. it is suppose to be 50 enrollments x N5000 per month which is equal to N250,000 and not N3,000,000.

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    Replies
    1. Multiplied by 12 months in a year = N3 million!

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  2. Paul, are in Port Harcourt?

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  3. Need your help on business plan for nursery/primary school. Can you help,its a bit urgent?

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    Replies
    1. Sure I can my email is: paulonwueme@gmail.com or you could call me for details: 0803 206 4106

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  4. hi i'm interested in starting a creche/daycare in calabar. do you know if there are any qualifications required. also i need help with a business plan.

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    Replies
    1. There are but it varies from State to State

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  5. hi, am interested in starting a day care in a abuja but not in the town, in the satellite village. what do i nned to do and are there laws to look out for?

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  6. what about beddings,cots and mats for babies?

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  7. Pls in wch city or state is mini flat N800,000, pls recheck ur findings

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    Replies
    1. In Abuja where I stay for instance some flats go as high as N3 million per annum, so that amount is a realistic figure but it depends on the city you reside!

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    2. Hello, please I want to start a daycare center at home how do I start

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  8. can you provide consultancy services for a propritor who is currently setting up a schol in abuja. with all necessary guides, materials needed, e.t.c. you can reach me on yemiaribo@gmail.com

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  9. Thank you for this write up, very insightful. Are there no regulatory guidelines to look out for. Such as the Child Right Policy. Which govt agency is responsible for the regulation of this type of service delivery. I am interested in setting up a Cresh in the near future

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  10. This comment has been removed by a blog administrator.

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  11. Please I want to know the rules and regulations guiding running a creche the Fct

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  12. Please I noticed that you assumed 12 enrollments for the first month, you then used 50 enrollments in your calculation, kindly enlighten me how you got 50.

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  13. Please I notice that you assume 12 enrollments for the first month but used 50 in your calculation, kindly shed more light.

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  14. Plans are in place to set up a creche in ogun state. Will I need to register d creche name at CAC?

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  15. Nice write Sir. I do want to start a cretch business in Ikorodu Lagos next year. Could you help me with a business plan?

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