Entrepreneurs may find that starting a preschool is a very exciting opportunity as they can create a business that has a positive effect on children and work in a rewarding field. But the first decision is determining the kind of preschool system to choose. To start from home or set up a business centre?

When considering opening a childcare business, it is important to understand the difference between a home based preschool and commercial preschool curriculum, as it will help you select the type of business that is best for you, within your budget, goals, space and level of involvement. Both models are about children's learning and development, but may have very different set-up, investment, capacity and operations.

What is a Home Based Preschool?

A residential-based preschool is a preschool that is based in a home, typically having a smaller number of children and a more personalized setting for learning. The preschool owner may run the preschool on their own or with a team of teachers and carers.

This model can be suitable for entrepreneurs who would like to start on a smaller level. A familiar and comfortable environment may also be provided at home for young children.

But, working from home doesn't imply that requirements can be neglected. Entrepreneurs should consider permissions, safety, sanitation, child friendly features, staff, and other requirements for setting up a preschool, depending on the location and regulations that come with it.

What Is a Commercial Preschool?

A commercial preschool is a preschool that runs on a property that has been designated just for the purpose of early childhood education. It tends to have more classrooms, more activity area space, staffing levels and can hold more children.

The commercial centres can be standalone or be part of an existing franchise chain. Are generally more organised with classrooms, reception areas, activity areas, learning resources, outdoor and/or indoor play areas.

The commercial model is typically larger and may be more costly and complex to implement.

Difference Between Home Based Preschool and Commercial Preschool

Let's look at the key points before you make a home based preschool versus commercial preschool choice.

Understanding the Preschool Business Model

Entrepreneurs must know their preferred preschool business model before selecting either of the choices.

Consider: Do you wish to be more involved in the day to day running of the classroom? Do you want a small centre that is community-oriented or a larger centre? What amount of capital can you afford? Have an adequate residential room? Do you prefer to own a business on your own or be a part of a franchise?

Your responses will help identify which of these models you are looking for.

Preschool Set up Requirements to Consider

No matter the model, kids' safety and wellbeing ought to be at the core. Before opening, entrepreneurs must date on the requirements for the setup of preschools to which they can apply.

These include appropriate premises, furniture that is safe for children to use, sanitation facilities, emergency plans, staff qualified to work with children, suitable learning resources, hygiene practices and necessary registrations and permissions.

The requirements may differ according to the position and kind of establishment, so it is crucial to check current local rules before operations commence.

Which of the Two Models Requires More Investment?

Typically, the size of the building, the capacity, staffing, and need for a commercial preschool will mean that a higher investment in the preschool is required.

Someone who is interested in the idea but prefers to try it out on a smaller scale may find it easier to obtain a preschool at home. But a small starting out investment does not necessarily imply a small responsibility. Both models need proper planning, safety, quality education and effective management.

Instead of only the start-up cost, entrepreneurs should make a realistic budget including budgets for continuing costs.

Which Model is Suitable for You?

It is difficult to say for sure, since it will be different based on your goals, resources, location and desired scale.

A home preschool might be suitable for an individual who desires a smaller operation, limited capacity, and more involvement. A commercial preschool may be more appropriate for the individual that is considering a larger centre that may have dedicated infrastructure and higher potential enrolment.

Just make sure to assess your space, budget, experience, demand, and future goals before you make your decision.

Final Thoughts

Deciding between a home based preschool and a commercial centre is a critical decision for anyone who's thinking of a starting a preschool business. There are pros and cons, responsibilities and issues to consider with both models.

By understanding the differences among the various space, staffing, capacity, branding, infrastructure and preschool investment models, you can choose one that aligns with your entrepreneurial vision.

In both home-based and commercial preschools, the key to success is to ensure that children have a safe, nurturing, stimulating and developmentally appropriate setting. Do your research, learn the needs and requirements, develop a reasonable financial plan and design your preschool based on the needs of the child and family.