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Top 10 Mistakes to Avoid When Opening a Preschool

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by Sonali Rai

Published On : 7 Dec | 6 min Read

Top 10 Mistakes to Avoid When Opening a Preschool
 

But if you speak to investors and edupreneurs, you will realise there are many preschool startup mistakes that they can make. Thin during the first year or when opening the preschool. There are quite a few mistakes that edupreneurs make when starting a preschool.  And if these mistakes are not addressed from the beginning, they can delay profits, create daily operations issues and damage the school’s reputation.

What Are Things to Avoid When Opening a Preschool? 

Many centres do not fail because there is less demand for preschool, but because of such preschool start-up mistakes that could have been avoided. If you are an investor or planning to invest in this sector, this blog will help you become aware of the costly mistakes that you could avoid.

Table of Contents

10 Common Mistakes to Avoid When Opening a Preschool

Before we talk about growth strategies, let us identify the most common mistakes made during preschool launches. Sometimes, avoiding one major error is more powerful than adding new strategies to an existing plan.

1. Starting Without Proper Market Research

This is one of the biggest things to avoid when opening a preschool. Many edupreneurs choose a location only based on:

  • Low rent
  • Availability of space
  • Personal convenience

What things go unanswered are:

  • What kind of fee-paying capacity does the neighborhood have?
  • How many competitors are within 2 km of the location you are planning to finalise in?
  • Are both parents typically working in the area?
  • What age group density exists in the area?

Here’s a simple comparison:

Factor

Wrong Approach

Better Approach

Location choice

Cheapest available

Does the area have the right kind of families to support your preschool?

Competition

Ignore

Study their fee & positioning

Parent profile

Assume

Survey 30–50 local families

A preschool in a premium area cannot operate like one in a mid-income residential pocket, or vice versa. Alignment matters.

2. Underestimating the Capital Buffer

Most articles talk about the setup cost. But what is ignored is the cash flow timing that one should know about. The reality is: 

  • Admissions grow gradually.
  • Salaries are fixed monthly.
  • Marketing is continuous.
  • Utilities and consumables add up.

You should ideally be ready with a cash flow to have 6 to 9 months of operational buffer beyond the setup investment. This single step makes a lot of difference. You can invest in the right teachers and staff from the beginning so that even with a few students, you can afford the best staff. So the experience and testimonial of the first few students will bring in more.

3. Overspending on Interiors, Ignoring Curriculum 

Bright walls attract students and parents, and the set up will be attractive to them in the beginning. But what helps retain the students is strong academics.

Parents may initially be impressed by:

  • Flooring
  • Furniture
  • Décor themes

But within 3–4 months, they will start asking:

  • Is my child progressing?
  • Is there a defined framework that the school is following?
  • Are the teachers trained?

One of the most overlooked preschool startup mistakes is prioritizing aesthetics over academic structure.

4. Hiring Without a Training System

Preschool quality is synonymous with the quality of Teacher they have.

Common hiring mistakes are:

  • Recruiting based on the lowest salary expectation.
  • No structured onboarding.
  • No classroom observation.
  • No regular training.

High teacher turnover creates instability. Parents notice an inconsistency immediately.

Instead:

  • A budget should be allotted for training from day one.
  • Build daily routines for teacher prep and teaching.
  • Conduct performance reviews every term.
  • Tie up with franchises/non- franchises that have proper teacher training courses offered, like Teeny Beans.

5. Launching Everything at Once

Many investors want to launch their:

  • Preschool
  • Daycare
  • Afterschool programs
  • Activity centre
  • Even teacher training

All in year one.

Operationally, this is risky, and a phased approach always works better. First, focus on one part of the business and move over to the other only when that is properly set up.

Phase

Focus

Phase 1

Core preschool operations

Phase 2

Add daycare or afterschool

Phase 3

Expand into diversified services

Growth should be stable and not rushed.

6. Weak Branding 

Without clear positioning, parents compare only on price.

Common branding errors:

  • A random name
  • A basic logo
  • No clear mission and vision
  • No clear message

Ask yourself:

  • Who exactly am I targeting?
  • What makes this preschool different?
  • Why should a parent choose this centre over another 500 metres away?

Clarity about these questions in your advertising and counselling makes a difference. Teeny Beans gives you guidance and training for all these, too. Along with professionals helping you with your branding requirements. 

7. No Structured Admission Funnel

Admissions do not happen automatically. You need a proper, structured plan for this to avoid preschool startup mistakes. Many preschool owners think:

“We’ll open first. Admissions will come automatically.”

But admissions don’t just happen. What you need for this is:

  • A way to record every enquiry.
  • A follow-up plan (call, message, visits scheduled).
  • A clear counselling process.
  • Someone responsible for admissions.
  • Monthly review of conversion numbers.

Many preschool/daycare mistakes occur because:

  • Enquiries are noted casually; there is no proper CRM.
  • No follow-up reminders exist.
  • No data tracking is maintained.

Without systems, admission leakage happens silently. Teeny Beans supports you with a proper CRM and one-pager website so that easy tracking and recording of leads and enquiries take place.

8. Ignoring Compliance and Safety

Safety is not optional. Some state governments have proper preschool regulations that have to be followed. A checklist that you can follow is:

  • Fire safety compliance
  • CCTV coverage
  • Child-safe furniture
  • Verified staff documentation
  • Clear child protection policy
  • Health and hygiene 

One incident can permanently damage a reputation. Investors often underestimate how quickly word spreads within parent communities.

9. No Technology Backbone

Today’s parents expect transparency in everything, especially their children. They prefer to be updated by the schools at regular intervals:

  • App-based updates
  • Structured communication
  • Fee reminders
  • Digital reports

From an operational perspective, technology helps:

  • Track attendance
  • Monitor fee collection
  • Manage leads
  • Store documentation

Technology reduces manual errors and improves professionalism.

10. Thinking Only Short-Term

Education businesses are a steady-growth model. So scalability is something you should keep in mind. Other sources of revenue should also be kept in your growth plan.

So ask yourself:

  • Where will this preschool be in 5 years?
  • Is expansion possible?
  • Is the model scalable?
  • Is the system replicable?

Plan accordingly!

Final Thoughts

Opening a preschool is not just about setting up the infrastructure. It is about building strong systems, investing in proper teacher training, having a clear long-term vision and maintaining financial planning properly. Before you launch, pause and evaluate whether these foundations are in place. With structured teacher training through the International Institute of Montessori Teacher Training, and technology-enabled curriculum support via aKadmy, you don’t have to build everything from scratch or learn through costly mistakes. Teeny Beans provides you with everything from set-up to admissions and operations. The right guidance helps you avoid the wrong moves at the right time. And Teeny Beans gives you the best.

 

FAQs

1. What are the biggest things to avoid when opening a preschool?

What you must avoid when opening a preschool is skipping research, underestimating capital needs, ignoring teacher training, and launching without a proper operating system and routine in place.

2. How much operational buffer should I keep?

Ideally, 6–9 months of fixed expenses beyond your setup cost should be well planned for during setup.

3. What are the most common preschool startup mistakes?

Overspending on interiors, weak admission planning, and no structured curriculum framework are some of the preschool startup mistakes.

4. How can I avoid daycare mistakes in the first year?

Start focused, train your team properly, build clear communication systems, and avoid over-expansion in the first year. But plan for scalability.

5. Is technology really necessary for a preschool?

Yes. It increases transparency, improves efficiency, and enhances parent confidence. So technology in your everyday operations and administrations is a definite USP your preschool can have

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