How to Open a Daycare in Washington State: Complete 2025 Guide

Why Washington State Needs More Childcare

Washington State faces a significant childcare shortage. According to recent data, 63% of Washington residents live in "childcare deserts" — areas with limited or no access to licensed childcare. This presents both a community need and a business opportunity for entrepreneurs looking to make a difference while building a sustainable business.

The demand for quality childcare continues to grow, driven by working families who need reliable care for their children. If you've been considering opening a daycare, now is an excellent time to start planning.

Step 1: Understand the Types of Childcare Licenses in Washington

Washington's Department of Children, Youth, and Families (DCYF) oversees childcare licensing. Before you begin, you need to understand which license type fits your vision:

Family Home Child Care — Operate from your home, caring for up to 12 children. This is the most common starting point for new providers and requires less capital investment.

Child Care Center — A facility-based program that can serve 13 or more children. Centers require a dedicated commercial space and more extensive staffing, but offer greater capacity and revenue potential.

For this guide, we'll focus primarily on opening a childcare center, as it typically involves construction or significant facility renovation.

Step 2: Create Your Business Plan

Before diving into licensing and construction, develop a solid business plan. Your plan should address the following questions:

Market Analysis: What's the demand in your target area? Research existing childcare options, waitlist lengths, and demographic trends. Talk to local parents about their needs and price sensitivity.

Capacity Planning: How many children will you serve? This affects everything from facility size to staffing requirements to revenue projections. Washington requires specific square footage per child (35 square feet indoor, 75 square feet outdoor for centers).

Financial Projections: What are your startup costs? Operating expenses? Revenue expectations? Childcare centers typically need 6-12 months to reach profitability, so plan your funding accordingly.

Staffing Plan: Washington has strict staff-to-child ratios. For example, infant rooms require 1 staff member for every 4 children. Your staffing plan directly impacts your capacity and operating costs.

Step 3: Secure Funding — The ELF Grant

Here's where Washington offers a significant advantage: the Early Learning Facilities (ELF) Program provides grants and loans to help build, renovate, or purchase childcare facilities.

What is the ELF Grant? Administered by the Washington State Department of Commerce, the ELF program has distributed substantial funding since 2017 to address the childcare shortage. Grants can cover facility construction, renovation, equipment, and more.

Who Qualifies? Priority is given to projects serving low-income communities and areas with limited childcare access. Nonprofit organizations often receive preference, but for-profit providers can also qualify.

How to Apply: Applications are typically accepted during specific funding rounds. The process involves submitting detailed project plans, budgets, and demonstrating community need. Working with someone experienced in ELF applications can significantly improve your chances.

We recommend starting your ELF research early — the application process takes time, and grant cycles may not align perfectly with your project timeline.

Step 4: Find and Evaluate Your Location

Location is critical for childcare success. Consider these factors when choosing a site:

Zoning: Not all properties allow childcare facilities. Recent Washington legislation has relaxed some zoning restrictions, but you'll still need to verify that your intended use is permitted. Check with your local planning department.

Accessibility: Parents need convenient drop-off and pick-up. Consider traffic patterns, parking availability, and proximity to residential areas or employment centers.

Building Requirements: DCYF has specific requirements for childcare facilities, including minimum square footage, outdoor play space, bathroom facilities, and safety features. It's often easier (and sometimes cheaper) to build new than to retrofit an existing building.

Environmental Factors: Sites must pass environmental review. Former industrial properties or locations near certain hazards may be problematic.

Step 5: Design Your Facility for Licensing

Your facility design must meet DCYF requirements from day one. Key considerations include:

Indoor Space: Minimum 35 square feet per child of usable indoor space. This doesn't include bathrooms, kitchens, hallways, or storage areas.

Outdoor Space: Minimum 75 square feet per child of outdoor play area. The space must be fenced, safe, and age-appropriate.

Classrooms: Design rooms for specific age groups with appropriate furniture, storage, and supervision sight lines. Infant rooms have different requirements than preschool rooms.

Bathrooms: Number and placement of bathrooms must meet code. Younger children need toilets accessible from classrooms; older children may use centralized facilities.

Kitchen/Food Service: If you'll prepare meals on-site, your kitchen must meet health department standards. Many centers opt for a warming kitchen and contract with food service providers.

Safety Features: Fire safety systems, emergency exits, secure entry, and child-safe fixtures are all required. Work with contractors who understand childcare requirements.

Step 6: Navigate the DCYF Licensing Process

Getting your DCYF license involves multiple steps:

Orientation: Complete DCYF's licensing orientation. This introduces you to Washington's childcare regulations and licensing requirements.

Application: Submit your license application with required documentation, including your business structure, policies, and facility plans.

Background Checks: All staff and household members (for family childcare) must pass background checks through DCYF.

Training: Directors and staff must complete required training hours. Washington requires ongoing professional development for all childcare workers.

Facility Inspection: DCYF will inspect your facility to ensure it meets all requirements. It's wise to do a pre-inspection review to catch any issues.

License Issuance: Once everything is approved, you'll receive your license. Licenses must be renewed annually and require ongoing compliance.

Step 7: Construction and Timeline

Building a childcare facility typically takes 12-18 months from planning to opening. Here's a realistic timeline:

Months 1-3: Business planning, site selection, preliminary design, funding applications.

Months 4-6: Final design, permit applications, contractor selection, financing finalization.

Months 7-12: Construction. Timeline varies based on project size and complexity.

Months 13-15: Final inspections, DCYF licensing, staff hiring and training, enrollment marketing.

Month 16+: Soft opening, ramp up enrollment, full operations.

Weather, permit delays, and supply chain issues can extend these timelines. Build buffer time into your plans.

Step 8: Estimate Your Costs

Childcare facility costs vary widely based on location, size, and whether you're building new or renovating. Here are rough estimates for Washington State:

Construction/Renovation: $200-400+ per square foot for new construction. Renovation costs depend heavily on the existing building's condition.

Land: Highly variable based on location. Urban areas cost significantly more than rural sites.

Equipment and Furnishing: $50,000-150,000+ depending on capacity and quality level.

Licensing and Permits: $5,000-15,000 for various fees and requirements.

Working Capital: Plan for 6-12 months of operating expenses while enrollment ramps up.

A typical 5,000 square foot center serving 75-100 children might require $1-2 million in total startup costs. Smaller projects can be done for less; larger facilities cost more.

Common Mistakes to Avoid

Having worked with many childcare entrepreneurs, we've seen these mistakes repeatedly:

Underestimating timeline: Everything takes longer than expected. Don't sign a lease or commit to an opening date before you have permits in hand.

Skipping market research: Assuming families will come because you build it. Know your market before investing.

Designing without licensing input: Building first and discovering DCYF issues later is expensive. Involve licensing early in design.

Underestimating operating costs: Staffing is your biggest expense. Washington's staff-to-child ratios are stricter than some states.

Going it alone: Childcare construction has unique requirements. Work with professionals who understand the industry.

Why Work With Childcare Construction Specialists?

Opening a childcare facility involves construction, licensing, business planning, and operations — each with its own complexities. Working with specialists who understand all aspects can save time, money, and frustration.

At Childcare Builder, we're childcare operators who also build childcare facilities. We understand DCYF requirements because we've navigated them ourselves. We know what makes a facility work operationally because we run childcare programs every day.

If you're considering opening a daycare in Washington State, we'd love to talk. We offer free consultations to discuss your project, answer questions, and help you determine if childcare ownership is right for you.