Is buying an existing nursery the best option?

Once you have decided that daycare is your business, you must decide how you plan to do it. There are a few options you can take to get your daycare going.

1. New start-up

You may consider building your nursery from scratch. You will have to do a lot of homework and put a lot of effort and hard work into the preparatory stages such as getting a location, planning your nursery layout, supervising renovations, furnishing your nursery, etc. The process can be time consuming, but if you are a very meticulous, resourceful, and organized person, doing it yourself can save you a lot of money. There are a host of websites that can give you the essential information and resources to get you started.

2. Buying over an existing daycare

You will probably save a lot of time and planning compared to a new start-up. However, there are other concerns that you should be aware of. First, you need to make sure that the condition of the existing nursery is good or satisfactory; not just the physical landscape, but also business operations. Take a good look at the state of the premises (minor renovations required?), The state of the company’s assets (is it reusable?), Evaluate the location (is it ideal?), Ask to see the accounts and the lease. agreement, etc.

You will also need to examine the financial status of the business to assess the financial health of the business; How is the current daycare business doing? Is enrollment stable or declining? That will help you determine how much you are willing to offer.

Take the time to get to know your customers better. Survey your customers to understand them better. Find out if the parents are happy with the current services being provided. What is the reason that your children are still enrolled in the current daycare?

Gather as much information as possible about your competitors. Find 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 kinds of value-added services do they provide that you should be aware of?

You will also need to make sure that all legal aspects such as contracts, agreements, licenses, creditors, etc. can be easily solved.

3. Buy a franchise

Alternatively, you may consider purchasing a franchise from a daycare franchisor. There are numerous benefits to be gained from purchasing a daycare franchise rather than a new start-up or the purchase of an existing business. For example, the chances of success, although not guaranteed, are good as the daycare franchisor 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 of running a daycare will be significantly shorter.

You will also make significant savings on items such as the cost of developing a curriculum and marketing that is typically borne by the franchisor and spilled over to all franchisees.

However, there may 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. Also, there is a possibility 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 at your disposal. If you are low on funds but are willing to put in the hours, a startup is best for you. If you are less prone to taking risks, you may want to take over an existing daycare or buy a daycare franchise, depending on the amount of resources you have and the freedom you expect.