Daycare Business in BC: The Real Costs, Profits & Numbers You Need to Know (Surrey Example)

The Real Numbers Behind Running a Daycare in BC

If you’ve ever thought about opening or buying a daycare in British Columbia, it’s important to see the business for what it truly is  a rewarding venture with incredible potential, but also one that requires solid planning, patience, and a good understanding of the numbers.

Let’s take Surrey, BC as an example. It’s one of the fastest-growing cities in the province and home to thousands of young families which means demand for licensed childcare has never been higher. The challenge? The supply still hasn’t caught up.

That’s why Surrey has become a hot spot for:

• Entrepreneurs ready to launch a daycare, and

• Investors looking to purchase well-run childcare businesses with steady cash flow.

Across most age groups — especially infants and toddlers — waitlists stretch for months or even years. The opportunity is there, but success depends on understanding what really goes into building or buying a daycare that works.

What It Actually Costs to Get Started

1. Building or Setting Up

• Construction or leasehold improvements: Expect anywhere from $150–$450 per sq. ft., depending on finishes and licensing requirements.

• Licensing and zoning: Plan for weeks — sometimes months — of back-and-forth with inspectors and city staff.

• Furniture and supplies: Around $30,000–$80,000, depending on the ages you serve.

• Professional setup (legal, consulting, marketing): Roughly $10,000–$20,000 to launch properly.

💡 If you’re buying an existing daycare, remember to budget for upgrades — even licensed centres may need improvements to meet newer BC childcare standards.

2. Monthly Operating Costs

Your biggest expense will always be educator salaries, typically 50–60% of your total revenue.
Other common costs:

• Rent or mortgage: $5,000–$12,000+ per month

• Supplies, food, insurance: $1,000–$3,000 monthly

• Utilities, marketing, software: $500–$1,500 monthly

With strict staff-to-child ratios (for example, 1:4 for infants), payroll is both your biggest challenge and your key to delivering quality care.

3. Revenue & Profit Potential

• Average childcare fees: $1,100–$1,500 per child, per month.

• 40-child centre: $45,000–$60,000 in monthly gross revenue.

• Net profit (well-run centre): $8,000–$15,000 per month.

📈 The biggest profit driver? Full enrollment. Even a few empty spots can cut thousands off your monthly bottom line.

4. The Reality Check

Every successful daycare has three things in common:

1. Strong systems for management and retention.

2. Low staff turnover, which keeps consistency for children and stability for licensing.

3. A strong community reputation — because parents buy trust, not just tuition rates.

New operators often underestimate how long licensing takes and how hard it can be to find the right staff. Sellers, on the other hand, sometimes overprice their centres without solid financial proof.

Smart Tips for Buyers and Sellers

If You’re Buying:

• Review the last 12 months of financials and licensing reports.

• Confirm current enrollment and payroll details.

• Check lease terms — some landlords have strict daycare clauses.

If You’re Selling:

• Get your books and licensing in order before listing.

• Keep staff stable — high turnover lowers value.

• Focus on presentation and full occupancy; it can boost your sale price.

If You’re Advising or Consulting:

• Lead with transparency and data — not hype.

• Teach clients how ROI, compliance, and scalability work together.

• Use visuals, charts, and success stories to build trust.

Why Now Is the Time

With BC’s $10-a-day childcare initiative rolling out and more funding being directed toward licensed facilities, there’s never been a better time to own or expand a daycare.

Operators who understand costs, licensing, and property positioning will be the ones who thrive — or sell at a premium when the timing is right.

Final Thoughts

Running a daycare isn’t just about passion — it’s about precision.
When you know your numbers, understand your local market, and run an efficient operation, you set yourself up for long-term success.

Whether you’re buying, selling, or scaling your daycare, having accurate insights and expert support can make all the difference between building a thriving business or facing unexpected challenges.

Want to Take the Next Step?

If you’re thinking about opening, buying, or selling a daycare in BC, visit daycaresinbc.com.

You’ll get access to:

• Current listings and off-market opportunities

• Market insights and sold-business data

• Free business evaluations and consultations

Let’s help you make informed decisions — and build something meaningful for your community.