How To Start A Preschool Business | Step-by-step Process

Do you want to start a preschool or kindergarten in your location? Find here a step-by-step process of starting a preschool, day care or a kindergarten in India.

Preschools generally provide early education and care for children aged between three and six years. However, there are some may be licensed to take children from two years of age. Preschools are warm and welcoming community hubs for the kids. Here, children learn to communicate, connect with and how to build the relationship with the others.

Nowadays, preschool business is an emerging opportunity in the Indian education industry. And definitely, the business is very lucrative for the entrepreneurs.

If you are passionate to be with children, then this is the perfect business for you. Additionally, this business is suitable for women entrepreneurs as well as men.

Compared to other educational institutes, preschool is easy to start and it demands less infrastructure. So, it allows entrepreneurs to step down in the education industry with comparatively small capital investment.

Preschool Market Potential


According to the industry experts, the Indian preschool market is set to thrive in India. The market will grow at a CAGR of around 13.5% during the coming five years. And there are numerous factors that are all responsible for the growth of the market. The list includes the rise in disposable income, working mothers, nuclear families, and escalating demand for high-quality preschool education for toddlers.

The current market structure remains highly unorganised. And thus, continues to gain considerable traction among industry players, and attracting investments from new as well as existing players. Also, the proven success of franchising education in India has led to a boom in the number of franchise entrepreneurs. And tier II and tier III cities in the country are the major markets for the preschool business in India.

Preschool Business Plan

In India, you can start this business by two ways. One is as a franchise or starting your own brands. Every business models have their own merits and drawbacks. However, this is one of the most crucial considerations, you need to make in starting this business.

If you determine to go for a franchise, then you will get franchise guidance in every operational aspect. However, if you want to start on your own you will need to manage a lot. In that case, you also have the opportunity for expansion and offering franchise of your own brand.

The crafting of a business plan is the most important aspect of initiating this business. First of all, you must decide the size of your business. Because every another aspect depends on that.

  • Decide how much you will cater.
  • According to that, decide how much space you need.
  • Decide other infrastructural facilities with human resources.
  • According to the above-mentioned points, craft a financial plan.
  • If you are starting the business with your own capital it is good. Otherwise, you must arrange the financial resources from the banks or from other financial institutions.

Registration & Licenses For Preschool

In starting this business first, decide the form of the organisation. Whether you want to start as a ‘non-profit’ or ‘for profit’ organisation. And accordingly, register the business.

In India, ‘Private School Education Act’ regulates the operational aspects of a school. Thus, it is important to have a basic knowledge of the law and its compliances.

If you are starting the business as the for-profit organization, then you will need to comply with the income tax filing after every year of profit. Preschool business doesn’t come under the Service Tax rule in India.

Related: Small Business Registration In India | Basic Guide

Step-by-step Process Of Starting A Preschool

Craft A Name With Catchline

Find a name of your school. Determine an easy memorable and short name for the school. Additionally, choose the color, font, and logo. Add a relatable catchline with the name. You can protect the name with Trademark.

Secure A Location

A preschool demands adequate infrastructure and space for the children. There are a lot of activities for the kids. And you must have enough space for those.

Additionally, location plays an important role in the overall success of the business. Generally, a location nearby residential areas is always preferred for preschool.

If you don’t have your own space, then start the school from a rental location. Don’t purchase a space initially. Because it will enhance your initial investments.

Related: Check Your Product Before Selecting A Retail Space

Build Right Infrastructure

The preschool demands a warm and child-friendly infrastructure overall. Talk to an interior designer who has previous experience in this field. Craft a floor plan. Determine the dedicated places for classes, play zone, space for the teachers and office space.

Procure the equipment carefully. Always give the priority of hygiene and safety measures. Give a vibrant and colorful interior look of your playschool.

Hire Employees

According to your plan hire right academic and non-academic employees. In this type of business, employees are the assets of the organization. Therefore, try to hire experienced and child-friendly employees for your preschool or kindergarten.

Related: Top 50+ Small Scale Business Ideas For Women Entrepreneurs

Fix Curriculum

Fix the curriculum according to your plan. Ask your employees to fix it. However, you must take utmost care in crafting the curriculum of your school.

In starting this business, you must have some promotional policy. It is important to get the target number of students. You can publish advertisement in the local newspapers and magazines. Additionally, you can go for the co-branding with other kids specific brands.