Circle Time with Tim

How to Start a Preschool: Step-by-Step Guide

Last updated:
November 18, 2025
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10 min read
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About Tim Seldin

Author, Educator and President of The Montessori Foundation

Tim Seldin is an author, educator and the President of The Montessori Foundation and Chair of The International Montessori Council. His more than forty years of experience in Montessori education includes twenty-two years as Headmaster of the Barrie School in Silver Spring, Maryland. He is the author of several books including “The World In The Palm of Her Hand” more

About Lara Hudson

Early Years Leader and Education Strategist

Lara is an early years professional with over 25 years of international experience, including two decades in the UAE education sector. She has held senior leadership roles such as Chief Operating Officer and Country Manager for major training and education groups. She is also a passionate advocate for the power of early experiences in shaping lifelong learning.

Opening a preschool is a beautiful and inspiring journey, and this article serves as the ultimate guide to starting a preschool.

However, before you welcome your first child, you’ll need to navigate two crucial pillars: licensing and compliance, and facility planning. Together, these decisions shape everything that follows: your financial model, staffing plan, and the character of your school community.

In this guide, we will walk through how to open a preschool in ways that are both sustainable and true to your educational vision. Whether you are planning a Montessori program or another approach to early learning, the same principles apply: clarity of purpose, thoughtful preparation, and a deep respect for the children and families you will serve.

Setting the Foundation

Before the first toy is unpacked or the first classroom designed, your preschool begins as an idea; a vision of what you hope to offer children and families. Careful planning at this stage is essential for a successful preschool launch.

This section will help you define that vision and understand the landscape in which your school will take shape.

Step 1: Define Your Preschool Vision and Program Type

Every great school begins with clarity.
Ask yourself:
What kind of program am I creating?

Different states regulate early childhood programs under various categories, and the distinctions matter.

Here are the most common types:

  • Child-Care Center or Nursery School: Typically licensed under child-care licensing laws.
  • Private or Nonpublic Preschool: Often overseen by the US Department of Education, especially for programs serving children over age five.
  • Faith-Based or Exempt Programs: Sometimes eligible for partial exemptions but still expected to meet basic health and safety standards.
  • Montessori or Hybrid Programs: These may fall under one or more of the above depending on age range and operating hours. A Montessori preschool, for instance, might serve toddlers under child-care regulations while its older classrooms fall under private-school guidelines.

Understanding which framework applies to your vision will guide every other decision, from your licensing requirements to your classroom design.


Step 2: Research the Market and Your Community

Once your vision is clear, study your surroundings carefully. A successful preschool meets real needs within its community.

  • Identify Local Competitors: Visit other preschools and childcare centers nearby. Study their pricing, hours, enrollment models, and teaching philosophies. Look at parent reviews and community feedback to understand what families appreciate, and what they feel is missing.
  • Survey Parents: Ask parents what they value most in early education. Do they prioritize safety, small group sizes, a Montessori environment, or flexible hours? Simple surveys or conversations at community events can provide valuable insights. Additionally, connecting with local parent groups can help you gather broader perspectives on community needs.
  • Analyze Demographics: Choose a location where young families are growing in number. Look at nearby housing developments, schools, and commuting patterns.
  • Track Early Education Trends: STEM (Science, Technology, Engineering, Mathematics) integration, bilingual programs, and nature-based learning are increasingly in demand. Knowing where the interest lies helps you position your preschool effectively.

Competitor and community research form the foundation of your future preschool business plan. It gives you a realistic picture of your market and the confidence to move forward knowing exactly who you will serve.


Business Plan and Strategy

Once you have defined your vision and understood your community, it is time to translate your ideas into a clear plan.

A strong preschool business plan gives your school direction and structure. It also becomes the document you will share with partners, investors, and licensing officials. Many factors, such as location, facility type, and curriculum, will shape your business plan and strategy.

Step 3: Create a Comprehensive Preschool Business Plan

Think of your business plan as a roadmap. It does not have to be complicated, but it must be thoughtful and complete.

Key elements to include:

  • Executive Summary: A short statement of your school’s purpose and what makes it special.
  • Market Analysis: Summarize what you learned from your competitor and parent research.
  • Operational Plan: Outline the day-to-day operations of your preschool, including hours of operation, staff roles, and curriculum structure.
  • Financial Plan: Include start-up costs, tuition projections, and a break-even analysis.
  • Marketing Plan: Describe how you will reach families and build trust in your community.

Understanding the Economics of Scale

Smaller schools are often the most personal, yet they can be the hardest to sustain. A preschool with fewer than 75 students may struggle to support a director, administrative staff, and maintenance while still paying fair wages. In most communities, stability begins around 100 to 120 students. At that point, tuition income can cover salaries, training, and reserves for growth.


Step 4: Arrange Capital and Funding

Starting a preschool requires a significant investment. Plan for facility costs, licensing fees, insurance, and classroom materials.

Possible funding sources include:

  • Personal Savings and Loans: Many founders combine personal resources with small-business or SBA (Small Business Administration) loans. You may also consider applying for a small business loan as a financing option.
  • Grants and Community Programs: Some states and educational organizations offer grants for early childhood centers.
  • Investors or Partners: Families, local philanthropists, or mission-aligned investors can help bring your school to life.
  • Crowdfunding: Platforms like GoFundMe or Kickstarter can be effective if you have a strong story and community support.

To set expectations, here are some realistic cost ranges:

Expense Category Typical Range
Lease Rate $18–$35 per sq ft per year ($25–$40 for new space)
Renovation $100–$200 per sq ft
New Construction $250–$400 per sq ft (excluding land)
Playground & Site Work $50,000 – $150,000
Soft Costs (architects, permits, furnishings, materials) +20 – 30%


Even a modest leased facility for 60–80 children can require $250,000–$400,000 to launch.
A larger owned space for 100–120 students may reach $600,000–$900,000 or more.

If capital is limited, build in phases. Start with two classrooms, but prepare plumbing and zoning for future expansion. Plan for growth early — it’s far easier to add later than to rebuild.


Legal and Licensing Essentials

Licensing is often seen as paperwork, but it is really about safety, transparency, and trust.
Understanding your state’s requirements from the beginning prevents costly surprises later.

Be sure to research and comply with preschool licensing requirements specific to your state to ensure you meet all necessary regulations for operating a licensed preschool.

Step 5: Learn the Licensing Rules That Apply to You

Each state or region regulates early childhood programs differently. Licensing will determine staff ratios, inspections, safety standards, and teacher qualifications.

When considering staff-to-child ratios, keep in mind that licensing rules also determine how many children you can enroll based on your facility size and staffing levels.

For example, here are two states with different requirements:

Florida (Child Care Facility Standards):

Age Group Staff-to-Child Ratio
Birth – 1 year 1 : 4
1 – 2 years 1 : 6
2 – 3 years 1 : 11
3 – 4 years 1 : 15
4 – 5 years 1 : 20
5 years and older 1 : 25


Maryland (COMAR 13A.16.08.03):

Age Group Staff-to-Child Ratio Max Group Size
2-year-olds 1 : 6 12
3- & 4-year-olds 1 : 10 20


Montessori classrooms often operate a little differently.
In an authentic environment, children work independently and rely on the prepared classroom rather than constant adult direction.

Typical Montessori ratios are:

  • Toddler Community (18 months – 3 years): 1 adult to 5 – 8 children.
  • Primary (3 – 6 years): 1 adult to 12 – 15 children, sometimes higher when led by an experienced certified guide.

Assistants may support the lead teacher but are not always counted once the class is established.

Always confirm your ratios comply with your state’s legal minimums, even when Montessori practice allows more flexibility.

Licensing usually takes three to nine months. Begin early, and avoid common pitfalls such as signing a lease before zoning approval or assuming Montessori materials automatically meet safety codes. Build relationships with your local inspectors—they can become trusted partners rather than obstacles.


Step 6: Secure the Necessary Permits and Policies

Before your school can open, you’ll need to secure the required licenses and approvals.

The most important is the childcare license, which confirms that your program meets basic standards for health, safety, and education. In California, for example, the Department of Social Services issues this license after inspecting the facility.

You will also need:

  • Zoning Approval: Verify that your property can legally operate as a preschool.
  • Health and Safety Inspections: Fire, sanitation, and building inspections ensure a safe environment.
  • Food Handling Permit: Required if meals or snacks are prepared on site.
  • Documentation and Insurance: Prepare written policies for admissions, health, discipline, and emergencies. Maintain liability, property, and workers’ compensation insurance.

Good documentation protects everyone. It gives families confidence and helps your staff act quickly when challenges arise.


Facility Planning and Setup

A well-designed preschool facility is essential for supporting children's learning and development. The building you choose will shape your daily rhythm and your financial stability. A well-planned facility supports both your educational vision and the comfort of the families you serve.

Step 7: Choose the Right Location

Location is one of the biggest decisions you will make. It affects everything from enrollment to your school’s sense of community.

When evaluating sites, look for:

  • Demographics: Areas with growing numbers of young families are ideal.
  • Accessibility: Ensure the site is easy to reach by car and public transport, with safe parking or drop-off zones.
  • Safety: Choose quiet, low-crime neighborhoods away from busy roads. Make sure the property can be fenced and secured.
  • Zoning: Confirm that your location is approved for educational use before signing any lease or contract.

Lease, Purchase, or Build?
Each option has advantages:

Option Benefits Considerations
Lease Lower upfront cost and faster start-up. Limited control over modifications or playgrounds.
Purchase + Renovate Builds equity, allows customization. May require costly upgrades for ADA compliance and safety.
New Construction Complete design freedom, ideal for Montessori or nature-based schools. Highest cost and longest timeline (12–18 months).


Before finalizing any property, walk through it with your local licensing and fire officials. Their early feedback will help prevent expensive changes later.

Step 8: Plan Facility Size, Layout, and Growth

Most states require a minimum of 35 square feet of indoor space per child and about 75 square feet of outdoor space. Once you add storage, bathrooms, and offices, plan for roughly 60–75 square feet per child overall.

Enrollment Classroom Space (≈35 sf/child) Total Building (≈65 sf/child) Outdoor Play Area (≈75 sf/child)
50 children 1,750 sq ft 3,250 sq ft 3,750 sq ft
75 children 2,625 sq ft 4,875 sq ft 5,625 sq ft
100 children 3,500 sq ft 6,500 sq ft 7,500 sq ft
150 children 5,250 sq ft 9,750 sq ft 11,250 sq ft


Step 9: Prepare and Equip the Facility

Once the walls are up, the details bring your school to life.

  • Classrooms: Choose child-sized furniture, open shelving, and defined spaces for reading, play, and rest.
  • Outdoor Areas: Provide age-appropriate play equipment and shaded rest zones. The National Association for the Education of Young Children (NAEYC) recommends at least one hour of outdoor play daily.
  • Cleanliness and Hygiene: Create a cleaning schedule, install accessible sinks, and maintain good ventilation.
  • Accessibility: Design spaces that are inclusive of all children and meet ADA standards.


Building a Strong Team and Safe Environment


A school is only as strong as its people. The teachers and caregivers you hire will shape the atmosphere every family experiences.

Step 10: Hire and Train Qualified Staff

One of the most important steps in opening a preschool is to hire staff who are both qualified and passionate. Your team should reflect both your philosophy and your commitment to excellence.

  • Qualifications: Check your state’s requirements for early childhood educators. Many states require a bachelor's degree in Early Childhood Education or a related field for lead teachers or directors.
  • Background Checks: All staff members, including non-teaching roles, must pass required background screenings.
  • Professional Development: Encourage ongoing learning. Workshops, Montessori certification programs, and observation visits to other schools can bring new inspiration.


Step 11: Implement Safety, Security, and Emergency Plans

Parents trust you with what matters most in their lives. That trust begins with safety.

Create a security plan that covers:

  • Access Control: Limit entry to authorized parents and staff. Maintain visitor logs.
  • Emergency Procedures: Practice fire, earthquake, and lockdown drills. Review them with your team regularly.
  • Safe Equipment: Inspect toys, furniture, and playground structures frequently. Replace damaged items promptly.
  • Insurance Coverage: Maintain liability, property, and workers’ compensation policies.

Safety is not just about compliance. It is about creating peace of mind — for families, for staff, and for you.

Curriculum and Learning Environment

A school’s spirit comes alive through what and how it teaches. To make sure teaching is done in the right and focused way, it is important to:

Step 12: Choose or Design Your Curriculum

The curriculum gives life to your school’s philosophy. It should nurture each child’s natural curiosity and sense of wonder.

Popular frameworks include:

  • Montessori: Promotes independence, self-paced learning, and practical life skills.
  • Waldorf: Focuses on imagination, rhythm, and creativity through art and storytelling.
  • HighScope: Encourages children to plan, do, and review their own activities.
  • Play-Based or Reggio Emilia: Centers on collaboration and exploration.

A well-designed preschool program is essential for supporting children's development and meeting family expectations.

Even if your approach is eclectic, keep consistency across classrooms. Families appreciate knowing what to expect, and teachers thrive when their structure is clear.


Step 13: Invest in Preschool Management Software

Running a preschool involves many moving parts: attendance, billing, communication, and compliance. Reliable preschool management software can save hours each week by automating these tasks and keeping everything organized.

Platforms like illumine simplify operations by handling attendance, payments, and parent communication in one place. They also help schools stay compliant with documentation and reporting requirements. When administrative tasks run smoothly, educators have more time to focus on the children.

Marketing and Growth

Once your preschool is ready to open, it is time to connect with families.

Marketing helps people discover your story, and steady, thoughtful management keeps that story strong.


Step 14: Market Your Preschool Effectively

Even the most wonderful school needs visibility. Marketing is how families discover your story and begin to trust you.

Consider these strategies:

  • Build a Website: Share your philosophy, staff bios, tuition details, and photos of your classrooms.
  • Engage on Social Media: Use authentic photos and stories. Parents love seeing real moments from the classroom.
  • Join Local Events: Sponsor children’s fairs or parent workshops to meet families in person.
  • Encourage Referrals: Offer discounts or small tokens of appreciation to families who refer new students.
  • Create and Distribute Marketing Materials: Design flyers, brochures, and digital content to showcase your preschool’s unique features and attract families.

Marketing is not about competition. It is about communication — helping families find the environment that best fits their child.


Step 15: Manage Daily Operations and Maintain Quality

The first year will teach you more than any manual. Create systems early that keep your school running smoothly.

  • Use digital tools to track attendance, billing, and communication.
  • Keep financial records up to date and review them monthly.
  • Schedule regular team meetings to discuss what is working and what can be improved.
  • Conduct quality audits of classrooms, safety, and parent satisfaction.

When daily operations are stable, you can focus on what truly matters — building relationships and nurturing growth.

Long-Term Planning

Once your preschool is stable, it is natural to think about growth. Some schools expand by adding new classrooms or age levels, while others replicate their model in new locations. Whichever path you choose, plan carefully so that your values and quality remain intact.

If you are considering franchising, explore it with patience and due diligence. Franchising can open new opportunities but also brings new responsibilities, systems, training, and consistency become even more important.


Final Words: Building a Preschool That Lasts

Opening a preschool is both a business and a calling. It begins with a dream to offer children a place where they can grow with joy and confidence. It also requires clear plans, steady finances, and strong systems.

If you take the time to prepare, to study your community, plan your facility carefully, and build a team that shares your values, your preschool will stand the test of time. Licensing, budgeting, and compliance are not just technical steps. They are the framework that protects your mission.

Remember, every decision you make tells families who you are. A thoughtfully built preschool does more than educate children. It shapes the lives of teachers, parents, and the community around it.

Building a school is, in many ways, an act of love and faith. When done with care, it becomes a legacy.

FAQs

FAQs

How much does it cost to start a preschool?
The cost depends on location, size, and whether you lease, renovate, or build. A small leased center for 60–80 children can range from $250,000–$400,000. Larger or owned facilities may reach $600,000–$900,000 or more.
What licenses do I need to open a preschool?
Most states require a childcare license, zoning approval, and health and safety inspections. If meals are served, a food handling permit may also be necessary. Always check your state’s specific regulations early in the process.
How many children can I enroll?
Enrollment limits depend on your state’s staff-to-child ratios and available classroom space. A general rule is at least 35 square feet of indoor space and 75 square feet of outdoor space per child.
What curriculum should I choose?
Select a framework that reflects your values and supports holistic child development. Montessori, Waldorf, HighScope, and play-based approaches are all respected options. The key is consistency and alignment with your school’s philosophy.
Do I need special training to run a preschool?
While a background in education helps, leadership, organization, and empathy are equally important. If you plan to offer a Montessori program, consider formal Montessori training or hire certified guides to lead your classrooms.
How long does licensing take?
Licensing and inspections can take between three and nine months. Starting early prevents delays and helps you open on schedule.
How can technology help manage my preschool?
Preschool management platforms such as illumine automate daily reports, attendance, billing, and communication. This reduces administrative workload and ensures compliance, allowing educators to focus on children.
FeatureillumineProcareBrightwheelLillioFamly
PricingVaries by planPremiumFreemiumQuote-basedModular pricing
Parent Communication
  • Real-time
  • easy to use
  •  in 20+  languages
Basic messaging toolsQuick updates and messagingDetailed parent updatesFriendly messages in several languages
Billing
  • Easy to use
  • Customizable
  • automated invoices
Deep financial toolsSimple billing in-appBuilt-in invoicesFlexible billing options
Lesson Planning
  • EYFS, Montessori, Reggio, and more!
  • linked to portfolios
  • AI-powered lesson plan creation in less than 5 seconds
May need extra toolsBasic note-takingCurriculum tools includedDaily logs and learning diaries
ScalabilityWorks well for single or many centersGreat for large systemsBest for smaller centersLimited for big organizationsFlexible for different sizes
Data SecurityGlobal encryption standardsUS regulatory focusUS cloud complianceStandard encryptionBuilt with GDPR in mind
Support24/7 help and guided setupTraining-intensiveResponsive, slower for complex issuesTeacher-focused help toolsSupport depends on region