Inspirational and Empowering Child Care Business Owners To Build Successful Child Care Businesses

Archive for the ‘Start a Child Care Business’ Category

3 Things That You Must Do Before Choosing A Location

Childcare care center- ahec.edu

According to the United States Small Business Association, Choosing a business location is perhaps the most important decision a small business owner or start-up will make, so it requires precise planning and research.

It involves looking at demographics, assessing your supply chain, scoping the competition, staying on budget, understanding state laws and taxes, and much more.

There are 3 things that you must do, before choosing a Location for Your Child Care Business:

  1. Check the Demographics. Are there working families with young children living near your center. Get demographics here, click here (simply enter your zip code to get demographics)
  2. Check out your competition. Are they filled to capacity? What are their rates? Are they Accredited? How long have they been in Business?
  3. Do you need professional help? Should you hire someone to write your Business Plan? Do you need a Business Coach? Don’t try to do it all yourself, hire help if you need it!

For more Start-up or Marketing tips, download my ebook: 10 steps to Starting a Child Care Business.

To Your Success,

Shiketa

For Start-up Coaching Contact me Today!

To Lease or To Buy?

rent-vs-buy

Do you own a Child Care Center? Are you leasing or buying your Building? I signed a lease my first Child Care Center in 2003. In fact, at the time that I was searching for a building for my first Child Care Center  and  I preferred to lease.

Leasing just seemed to be an easier route for me back in 2003. There was no closing cost and I didn’t have to put down 20% of the price of the building.

Furthermore, if I discovered that my first location was not great, I could leave at the end of my lease and not worry about having to sell the building.

After leasing the building for 11 years, I have decided to buy the building. It has been established that the location is profitable and also, after speaking with a banker and doing lots of research on the owning the building, it is in the best interest of your business to own the real estate.

Furthermore, after doing the math, owning the real estate increases the value of your business and it makes sense in the long run to buy the building.

For example, for 11 years I paid over $24,000 a year to lease my building. However, I have discovered that a mortgage could save me $12,000 a year! Now that makes sense to me and I could use another $12,000 a year in my budget!

If you have been leasing your building for at least 5-10 years, its probably time for you to buy your building and increase the value of your Business. In the event that you decided to sell your Business, you will get more for the business, if it comes with the real estate!

Are you currently looking for a building? Not sure if the location is a profitable location? I’m not a real estate expert, however, I believe that it is safe to say that you may want to lease the building for at least 3- years, before you commit to buying it.

Do you Lease or Do you Own Your Building? Leave your thoughts below…

Shiketa

Think about expanding? Schedule your Expansion Coaching Session with me today! 

Resource Articles

http://www.bizfilings.com/toolkit/sbg/office-hr/your-workplace/business-facility-lease-or-buy.aspx

http://www.inc.com/guides/2010/07/how-to-purchase-commercial-real-estate.html

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