Metro Vancouver Daycare Startup Guide

From Licences, Grants, Locations, Costs and Profitability

Metro Vancouver has strong, ongoing demand for child care, especially for infant/toddler spaces and out-of-school care, yet many new operators (and buyers) get stuck on the same questions: Which city is best? What capacity is realistic? How much revenue can I generate? What will my margins look like after wages and rent? What licences do I need?

This guide is written by our business writer for people who want to start a daycare or buy an existing daycare in Metro Vancouver and want the numbers, the licensing path, and a practical plan to move forward confidently.

Picture credit: Pexels.com

Metro Vancouver cities to consider 

When choosing where to open or what daycare to buy, start with the reality that municipal rules, leasing costs, zoning, parking, and facility requirements vary by city (sometimes significantly). Metro Vancouver’s own survey highlights how local governments differ in requirements like parking, staffing considerations, and indoor/outdoor space expectations, and notes that some municipalities have additional facility guidelines beyond provincial minimums. 

Common Metro Vancouver cities where StartCan clients often explore daycare opportunities:

'Highest demand' is usually tied to these factors

Instead of guessing demand by “what feels busy,” evaluate:

  • Neighbourhood density + new housing growth

  • Proximity to transit and employment hubs

  • Competition and waitlists (many providers maintain waitlists across the region; this is common for large operators as well) Check out YMCA website to learn more about the waitlists. 

  • What the city will allow in that specific zone/building type - Click the following link 2023 Survey of Licensed Child Care Spaces in Metro Vancouver

Metro Vancouver’s regional reporting also notes persistent demand for new child care spaces as a top challenge identified by municipalities.

 

Start a daycare vs. buy a daycare: which path is better?

Starting a daycare (from scratch)

Best when you want:

  • A clean setup (your brand, your systems, your staffing model)

  • The right facility design from day one

  • Time to build enrolment and stabilize cashflow

Main challenges:

  • Licensing timeline and facility readiness

  • Finding a location that fits both licensing and city requirements

  • Getting a realistic budget and breakeven plan (most people underestimate wages + occupancy ramp-up)

Buying an existing daycare

Best when you want:

  • Existing enrolment and operational history

  • A known location and licensed setup

  • Faster launch (sometimes)

Main challenges:

  • Verifying the real numbers (not “seller stories”)

  • Confirming the licence and what changes trigger re-approvals

  • Hidden risks (lease terms, staffing stability, compliance history, facility upgrades)

StartCan Tip: If you’re buying, you should treat it like a due diligence project, financials, lease, licence type/capacity, staffing, and program eligibility all need verification.

 

Licences you need in British Columbia (the non-negotiable part)

In BC, if you care for three or more children, you typically require a licence (with limited exceptions). Click here for rules for operating a licensed child care facility.

Licensing is governed under BC’s framework and regulation (this is the foundation you must align with).

What this means practically:

  • Your location, floor plan, outdoor space, safety setup, staffing, and policies must align with licensing rules

  • Your local Health Authority licensing team is central to the process (e.g., Vancouver Coastal Health for many Metro Vancouver areas). 

 

Child care funding and ;grants' in BC: what’s real and what’s misunderstood

A lot of new operators hear “government grants” and assume there’s a big blank cheque. In reality, funding often comes through specific programs with eligibility rules and documentation requirements.

Here are the most common starting points:

1) Start-Up Grants (BC)

BC has a Start-Up Grants program designed to support people who want to become licensed child care providers (particularly in-home / personal residence models), with a base amount and additional amounts tied to licensed spaces and participation in certain operating programs. 

2) Child Care Operating Funding (CCOF) and related supports

BC’s Child Care Operating Funding supports eligible licensed providers via base funding and initiatives aimed at affordability and wage enhancements. 

3) Municipal supports (opportunity depends on the city)

Metro Vancouver’s survey also reports that many municipalities provide non-financial supports (and some provide financial supports), including access to municipal building space for child care in certain cases.

The key takeaway are: Funding programs usually require a clean package:

  • Proper licence pathway

  • A credible operating plan

  • A detailed, defensible budget and projections

 

The biggest issue we see: 'No budget sheet' (and no clear profitability picture)

Many daycare founders (and buyers) come to us with:

  • No real startup budget

  • No clear monthly operating budget

  • Uncertainty about capacity vs. staffing vs. revenue

  • A rough idea of rent—but not the full occupancy/breakeven math

That’s risky, because child care profitability is usually driven by:

  • Licensed capacity (and the age mix)

  • Staffing ratio requirements and wage structure

  • Lease cost + facility operating costs

  • Occupancy ramp-up (how quickly you fill spaces)

  • Program participation and fee strategy (where applicable)

Metro Vancouver’s reporting also points to challenges like funding constraints and staffing shortages/wages; which directly impact the numbers. 

 

Step-by-step: how to plan a daycare that actually works

Step 1: Choose a city + neighbourhood based on evidence (not guesswork)

We help you compare areas like:

  • Vancouver vs. Burnaby vs. Surrey vs. Richmond

  • North Shore (North Vancouver / West Vancouver) vs. Tri-Cities

  • Transit-oriented hubs vs. residential pockets

Step 2: Confirm the right daycare model and realistic capacity

Capacity is not a “wish.” It’s shaped by:

  • Licence category, space, and facility layout

  • Outdoor space access

  • Staffing plan and operational hours

  • City and building constraints 

Step 3: Build a full financial model (startup + monthly + 3–5 year forecast)

This is where clarity happens:

  • Startup budget (leasehold improvements, equipment, supplies, licensing prep, professional fees)

  • Monthly operating budget (wages, rent, insurance, food, utilities, software, admin)

  • Revenue model (fee assumptions, occupancy curve, sensitivity scenarios)

  • Breakeven point and profitability targets

Step 4: Funding plan (grant study + financing strategy)

A good funding path is usually a mix:

  • Program eligibility review (grant study)

  • Documentation readiness (budget + projections + business plan narrative)

  • Loan planning if needed (some operators explore programs like the Canada Small Business Financing Program depending on the deal structure and lender requirements) 

Step 5: Operational plan so you can run it (and lead it)

The daycare must be more than a licence—it must be manageable:

  • Staffing plan + scheduling logic

  • Enrollment and waitlist process

  • Parent communication systems

  • Policies, daily routines, compliance readiness

 

Buying a daycare in Metro Vancouver: what you must verify before you pay

If you’re purchasing an existing daycare, we typically help clients assess:

Financial reality

  • Revenue verification (not just 'gross income')

  • Payroll reality (including coverage, substitutes, overtime risk)

  • Lease details (renewal, escalation clauses, assignment conditions)

Licence and capacity

  • Confirm current licence and capacity

  • Understand what changes trigger additional approvals or inspections 

Risk check

  • Staffing retention risk

  • Facility upgrades required

  • Any compliance issues or operational weak spots

 

How StartCan helps daycare founders and daycare buyers (Metro Vancouver-focused)

StartCan Business Consulting is based in Metro Vancouver, and we support clients across Vancouver, Burnaby, Surrey, Richmond, Coquitlam, New Westminster, North Vancouver, West Vancouver, Delta, Langley, Maple Ridge, and beyond.

1) Grant Study (Funding Research & Eligibility Mapping)

We identify realistic funding options and build a clear funding pathway based on:

  • Your licence type and operating model

  • Your location and facility type

  • Your readiness and documentation needs

We previously developed a comprehensive article regarding the grants for daycare facilities under the title Grants and Funding Opportunities for Day Care Start-ups in Metro Vancouver that is definitely worth checking out. 

2) Business Plan Writing (Daycare-specific, lender/grant-ready)

We develop a complete daycare business plan with:

  • Local market and location analysis (Metro Vancouver)

  • Operational plan (capacity, staffing, hours, policies)

  • Launch strategy and enrollment plan

  • Risk management and compliance planning

3) Financial Projections (the part most people are missing)

We build clean, professional spreadsheets including:

  • Startup budget + sources/uses of funds

  • Monthly operating forecast

  • Break-even and profitability analysis

  • Scenarios for different capacities and occupancy rates
    This is the piece that makes lenders, partners, and even landlords take you seriously.

4) Location and Capacity Guidance (practical + numbers-based)

If you’re unsure whether you should choose:

  • Vancouver vs. Burnaby vs. Surrey

  • A small licensed setup vs. a larger facility
    …we model the financial outcomes so your decision isn’t based on guesswork.


FAQs

Do I need a licence to operate a daycare in BC?

In many cases, yes; particularly if providing care to three or more children (with specific rules/exceptions). 

Are there grants for daycares in BC?

There are programs, but they’re eligibility-based and documentation-heavy. Start-Up Grants and operating funding are common starting points. 

What’s the #1 reason daycares struggle financially?

Almost always: wages + occupancy assumptions that weren’t modeled properly plus underestimated startup costs and lease realities.

 

Ready to start (or buy) a daycare in Metro Vancouver?

If you’re serious about launching in Vancouver, Burnaby, Surrey, Richmond, Coquitlam, New Westminster, North Vancouver, West Vancouver, Delta, Langley, Maple Ridge, or White Rock, StartCan can help you go from idea → location plan → licensing pathway → business plan → full financials → funding strategy.

 

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