How to Start a Preschool Business in the Philippines

The world currently has a population of 7 billion. In the Philippines, there are 100 million inhabitants in the islands that comprise the country. More and more, the increase of urban development has provided jobs for every adult and has lessened the frequency of being available in taking care of the family.

In every community that can be found almost everywhere now, there is a need for a preschool or day care center, as most of the time both mom and dad are usually busy with work. However unfortunate it may be, that is the reality that children will have to face.

Moreover, when kids are enrolled at elementary schools, they are usually expected to have some kind of knowledge in schooling. This makes preschool a more necessary pre-formal educational experience for children. More than just a day care center, a preschool is where children can learn, experience, and grow by being guided by professional caretakers, to easily digest what is happening around them, and teach good habits and right conduct.

This necessity for preschools has steadily increased in conjunction with the population and has made it one of the most profitable businesses one can establish. If you are interested to start a preschool business in the Philippines, continue reading before you take the giant leap to know what you need to become success with preschool business!


Register your preschool business

First Step in Realizing Your Preschool Business in the Philippines!

Your business is not just a sideline nor something akin to a stall. No, it is a formal business establishment that will have multiple clients that provide profit over time. This makes it important for you to acquire multiple permits, licenses, and certificates, which are as follows:

  • A business registration from the Department of Trade and Industry (DTI) if you are planning on taking the business as a sole proprietorship, or if you plan on having a partnership with someone else or corporation, then you must head on over to the Securities and Exchange Commission (SEC).
  • Educational institutions must get a permit and license to operate from the Department of Education (DepEd) and the Department of Social Welfare and Development (DSWD), respectively.
  • A barangay clearance is also necessary that can be acquired from the barangay nearest to where the business is located.
  • A Bureau of Internal Revenue (BIR) certificate that can be given by the Head Office of the BIR at Quezon City or the nearest office where jurisdiction lies where the business is established.
  • If you have employee(s), then you should explore the options of Pag-Ibig, Phil Health, and SSS, for their benefits.

These requirements are there to ensure that the business is fully licensed and capable of taking care of the growth of children and is legally operating at its location.

Determine the amount of capital to be invested

Money Needed to Start Your Preschool Business in the Philippines

Operating a preschool business means that you will need to have a daily running of utilities (water and electricity) in the premises. Take this into mind while you are determining how much you are going to invest.

A good rule of thumb to follow is to have at least three months’ worth of capital to fully support the business at its initial run. This ensures that you have a backup funding in case of insufficient funds.

The capital is also dependent on how large the area will be, as well as where it will be developed. This includes building the structure such as the classroom and optional facilities like the laboratory, library, play area, clinic, canteen, as well as a separate comfort room for either genders.

Hire the right people!

Teachers, Lunch Personnel, Maintenance, Admin Staff

A school must have values and codes of conduct that is understood by its faculties to ensure the right mindset for teaching children. This is only possible if you interview the person fit for the job. A recommendation is to look for a school administration that has at least a master’s degree in education.

The would be school administrator is responsible for the supervision of curriculum, the school’s budgeting system, policies, disciplinary actions, and as the medium between parents and teachers. Subsequently, remember to hire qualified employees (preschool teachers) that have qualities of a patient, kind, and resourceful teacher to kids.

Develop good relationships with suppliers

The suppliers are responsible for providing stuff such as books, tables, air-con units, uniforms, and such. These are important to the school as they are what makes up a preschool.

Which means it is necessary to get in the good side for these suppliers, as you will be interacting with them in the long run. In such cases, good relations with them will give you discounts.

Market your preschool

Find Your Customers!

Once you have done all of the above, it is time to start marketing your preschool to subdivisions: an ideal location where most of the time, the parents are unable to attend to their kids. It also helps if your location is just nearby as the clients will mark it as an accessible business!

During the initial operations, you should try conducting an open house event where the parents and children can freely attend the school to see what they are going to experience when they eventually enroll to provide a friendlier outlook as a business with empathy that understands the hesitation of most parents!

Photo credit: Iancarg of Wikimedia

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