Is buying an existing nursery the best option?
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 into the preparatory stages, like 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 provide you with the essential information and resources to get started.
2. Buy over an existing nursery
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 must ensure that the condition of the existing nursery is good or satisfactory; not only the physical perspective, but also the business operations. Take a good look at the state of the facilities (are minor renovations required?), the state of the company’s assets (is it reusable?), assess 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 existing daycare business 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 the current services being provided. What is the reason(s) your children are still enrolled in the current daycare?
Gather as much information as possible about your competitors. Calculate how many nurseries there 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 do they provide that you should take note of.
You will also need to make sure that all legal aspects such as contracts, agreements, licenses, creditors, etc. can be easily resolved.
3. Buy a franchise
Alternatively, you may want to consider purchasing a franchise from a day care 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 daycare franchisor would have established a proven set of practices and operations. Training will be provided, and as a result of the transfer of managerial experience, the learning curve for running a daycare center will be significantly shorter.
You’ll also realize significant savings on things like the cost of developing a curriculum and marketing plan that is typically borne by the franchisor and distributed among all franchisees.
However, there may be some disadvantages 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 put in place 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 business and the amount of time and resources you have. If you’re short on funds but willing to put in the hours, a new business is in your best interest. If you’re less of a risk taker, 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.
