Excellent Business Idea for Singapore: Childcare Center
Singapore is known to be one of the richest countries in the world. As a matter of fact, it is also considered as home to most of Asia’s millionaires and billionaires. But despite all the statistics and ranks, did you know that even though most Singaporeans enjoy high standards of living, they do not actually feel rich?
To put it more simply, those who we would normally deem as ‘already wealthy’ in Singapore still belong to those people who continue to work hard and succeed further in their respective professions. Yes, the wealthy get even wealthier. And because of this, the parents (men and women) of these households continue to live busier lives than ever - regardless of the number of kids that they have.
These wealthy families then continue to build the pressing need for additional family support just like child and infant care. And because parents are so busy with their demanding careers, childcare centers and tutors Singapore are considered as in-demand and highly profitable businesses today. The demand for this business is continuing to grow because women are being encouraged by the Singaporean Government to go back to work after giving birth and it even gives subsidies for parents to be able to afford quality childcare.
Now if you’re thinking just the same, let your friends here at Enterprise Assurance PAC help you out with that endeavor. As we have been providing accounting and company incorporation services to Singapore startups for many years, we ought to provide you some of the most important things you need to know about opening your own childcare center in Singapore.
Apart from having a unique business idea, considering the viability of the business you’re about to start is also of utmost importance. So to know if starting a childcare center is really viable, you would have to do a cost analysis. If you are basically a newbie, we suggest that you get help from reliable financial consultants to help you out. Together with a finance expert, you have to assess all the costs involved (capital, operational, and indirect costs) as well as the tax implications.
After which, you would also have to consult existing industry players and do your fair share of research on your competitors. See how they’re faring, know how much they earn on a monthly basis, and etc.
According to some research the average cost of starting a childcare center in Singapore is at $50,000. But that amount of course, can go a lot higher, depending on the facilities and childcare methods you will choose for your childcare business. You can look up some of Singapore’s best childcare centers such as the Brighton Montessori, Greentree Montessori, House on the Hill Montessori Pre-School, and Raffles Montessori Kindergarten in order to know how they started and how they become huge players in the country.
LOCATION! LOCATION! LOCATION!
As with any type of business, finding the perfect location for your business is but essential. By choosing the place carefully, you are also positioning your business well amidst the most number of potential customers.
For example, you decided to open your childcare in a private residential area. By choosing that, you should then decide which particular area you want - will it be in The City, The North, The East, The West, or Central Singapore?
Some have even chosen to set up their childcare centers in the Commercial and Industrial areas, simply because of the fact that there might be less competition there.
Bottomline is, whichever area in Singapore you choose for your childcare center, make sure you have done your research and feasibility study and have made your assessment of the location. Once you’ve proven that it’s a strategic spot, then grab the opportunity while it’s there.
Of course, just like any kind of business, besides setting up and incorporating your company, you would also have to secure specific licenses and fulfill certain requirements for your childcare center to operate smoothly and legally. Here are some of the things you must keep in mind:
- You need to register the child care business with ACRA (where your accountant or corporate secretary would be able to assist) before you may apply for the child care centre license.
- Submit the license application via License One when you centre has been given the Temporary Occupation Permit or Certificate of Statutory Completion (TOP/CSC).
- If you are setting a child care centre as a community service, you can apply for financial funding.
- When you submit an application for the license, you will get an email from Early Childhood Officer for a pre-licensing visit.
- Your childcare centre should be ready to be visited for pre-licensing.
- Your child care centre license will be issued within 14 working days after submitting complete documents and you will be notified by ECDA.
- No operational activity should take place before the formal approval of the Child care centre license.
- If the person starts regulating the child care centre prior to the approval of the license, he/she will be charged penalty.
- Once the license application is approved, you will be able to administer the Government Child Care Subsidy Scheme for eligible parents.
CONCLUSION: Is it really an excellent business idea?
Gone were the days when working parents are more confident when they leave their kids at home with their housekeeper/s. We’re not really sure if it’s because times have been more different or dangerous. What we know is that the lifestyles of families all over the world, not only in Singapore, are now more diverse than ever. And that’s the reason why the busy parents of today prefer to leave their precious little ones in the hands of professionals. As a matter of fact, according to an article from The Straits Times, in 2016 alone, 390 childcare centers were opened in workplaces, commercial establishments, and even government buildings. This just proves that parents today are wiser than ever - should they really need to entrust their children to professionals, they still make sure that it’s in a place where it’s basically a stone’s throw away from them.
If you’re now more motivated to start your childcare business, let the startup and company incorporation experts of Enterprise Assurance PAC help you out. Speak to us now or send us an email and we’ll gladly assist you with everything you need.