In 2025, early childhood education is booming across India. If you’re looking to enter this field, you’re likely wondering: Should I open a preschool or a daycare? This guide compares both the preschool vs daycare business models in terms of investment, revenue, operations, and long-term growth — so you can make an informed decision based on your goals.
1. Understanding the Basics: Preschool vs Daycare
Preschool is a structured early learning setup for children aged 2 to 5, following a curriculum and focused on academic, social, and emotional development.
Daycare, on the other hand, offers extended care for children while parents are at work — with less emphasis on academics and more on supervision, safety, and comfort.
2. Initial Setup and Investment
- Preschool Business: Requires a well-planned curriculum, trained teachers, classroom setup, learning materials, and branding.
- Daycare Business: Needs a safe, child-proof environment, longer operational hours, and staff skilled in childcare.
Verdict: Preschools have a higher initial setup cost, especially if curriculum and branding are involved. However, with models like Chalk n Duster’s franchise-free preschool solutions, setup becomes more affordable.
3. Revenue & Profit Potential
- Preschool: Typically charges higher monthly fees (₹2,000–₹8,000 per child), operates on fixed batches (e.g., 3-hour classes), and has scope to expand with more age groups.
- Daycare: Offers steady, recurring income due to full-day charges, but the pricing is often lower and more competitive.
Verdict: Preschool businesses offer higher long-term revenue per child, especially if scaled with multiple levels (Nursery, LKG, UKG).
4. Staffing & Daily Operations
- Preschool: Needs educators trained in early childhood education, with fixed working hours (usually mornings).
- Daycare: Requires caregivers for full-day shifts, including meal management, nap-time, and hygiene monitoring.
Verdict: Daycare involves more manpower and longer hours, while preschools allow more structured staffing and work-life balance for owners.
5. Long-Term Growth and Scalability
- Preschool Business: Can expand into higher classes (like Grade 1), offer after-school activities, and build a recognizable educational brand.
- Daycare Business: Offers stability but limited growth unless combined with preschool or activity center.
Verdict: Preschool businesses are more scalable and can evolve into full-fledged schools over time.
6. Parental Perception & Demand in 2025
In 2025, parents are increasingly looking for:
- Structured learning aligned with NEP 2020
- Safe and engaging classrooms
- Tech-enabled communication (apps, reports, photos)
Preschools with a defined curriculum and proper branding are perceived as more educational than daycare centers.
Conclusion: Which One Should You Choose?
If your goal is long-term brand building, structured learning, and scalable growth — the preschool business is the clear winner. It requires more planning initially but offers better returns and expansion opportunities.
However, if you’re looking for quick, stable income with flexible services, a daycare model may be right for you.
How Chalk n Duster Can Help
Chalk n Duster offers a franchise-free preschool setup model that gives you:
- A NEP-aligned curriculum
- Classroom setup guidance
- Website, branding & digital tools
- Teacher training & marketing support
Start your preschool under your own brand, with zero royalty — and full support.