Once you’ve decided that daycare is your business, you need to decide how you plan to do it. There are a few options you can take to get your day center up and running.
1. New start-up
You can consider setting up your nursery from scratch. You will have to do a lot of homework and put a lot of effort and hard work in the preparatory stages, such as getting a location, planning your nursery layout, supervising the renovations, furnishing your nursery, etc. The process can take a long time, but if you are a very meticulous, resourceful and organized person, doing it yourself can save you a lot of money. There are plenty of websites that can provide you with the essential information and resources to get you started.
2. Buy over an existing daycare
You will probably save a lot of time and planning compared to a new company. However, there are other concerns that you should take note of. First, you need to make sure that the condition of the existing daycare is good or satisfactory; not only the physical perspective, but also the business operations. Take a good look at the state of the premises (do you need minor reforms?), the state of the company’s assets (is it reusable?), assess the location (is it ideal?), ask to see the accounts and the rental contract, etc.
You will also need to examine the financial status of the business to assess the financial health of the business; how the existing daycare business is doing, is enrollment stable or declining. That will help you determine how much you are willing to offer.
Take your time to get to know your customers better. Survey your customers to understand them better. Find out if parents are satisfied with current services being provided. What is the reason(s) your children are still enrolled in the current day care?
Gather as much information as possible about your competitors. Calculate how many nurseries are within 500 meters of them. Know what their charges are and preferably how many children they are caring for. Are they successful? What kind of value-added services they provide that you should take note of.
You will also need to make sure that all legal aspects such as contracts, agreements, licences, creditors, etc. can be easily resolved.
3. Buy a franchise
Alternatively, you can consider purchasing a franchise from a daycare franchisor. There are numerous benefits to be gained from purchasing a daycare franchise as opposed to a new start-up or purchase of an existing business. For example, the chances of success, while not guaranteed, are good since the franchisor of the daycare would have established a set of proven practices and operations. Training will be provided and, as a result of the transfer of management experience, the learning curve for running a day care center will be significantly shorter.
You’ll also achieve significant savings on items such as the cost of developing a curriculum and marketing that is typically borne by the franchisor and distributed among all franchisees.
However, there can be some downsides to buying a franchise, such as the prohibitive franchise fee, lack of flexibility in operations, or lack of support from the franchisor. Additionally, there is a chance that the promotional programs implemented by the franchisor may not be suitable for your local market.
In conclusion, which option will clearly depend on what you are looking for in the business and the amount of time and resources you have. If you’re low on funds but willing to put in the hours, a new venture is best for you. If you’re less risk-taking, you’ll most likely take over an existing daycare or buy a daycare franchise, depending on how many resources you have and how much freedom you expect.