For those that think daycare goes away when your kids start school - think again.
If both spouses work full time, you still need care in the summer when they aren't in school, unless you are fortunate enough to have a relative watch them or you have an educator in the family. Throw in you are probably going to have some before and after school care unless you can make your schedules work to avoid this.
And don't forget summer camps - those aren't cheap either.
Yeah, our 10 year old still does the summer care, but it's less than half what the 2 year old cost is. And it's only for 3 months. We've had before/after school care to this point, too, but that's only ~$300/mo - wayyyy cheaper than the $1,000 daycare bill. Next year (5th grade) she'll start bussing, maybe I'll get a new car (I won't, but more college can get prepaid).
As far as daycare profits, most of the employees don't make much. You have the teens making $8-10/hr, but I don't think even the full-timers typically make much. When my wife was laid-off last year she considered trying childcare as she'd enjoy that more than insurance, but the pay she was seeing was like $15-16/he. I think they do ok profit-wise.