The Child Care Business Owner Institute

Are you thinking about buying or selling a childcare business?

I recently received a flyer in the mail, and it was a full-page list of childcare businesses for sale. I immediately thought, WOW! there has to be over 500 childcare businesses on this list.

Then I reflected back on when I sold my location in St. Louis and how the 6-month process went. I also thought about what it was like when my husband and I purchased a center back in 2016.

Purchasing a childcare business went a lot smoother than selling a childcare business. In fact, buying a childcare business in 2016 took only 45-days and the change of ownership process was a lot simpler. Research has shown that since 2020, more childcare business owners are leaving the business for a variety of reasons including:

• The cost of operating a childcare business
• Burnout
• Staffing issues
• Not enough funding and so many other reasons

I sold my second location back in 2023 because I moved out of state and it was a struggle to find management that was able to handle the issues that came with running a large center. Also, traveling back and forth from Georgia to St. Louis once a month for five years was starting to be exhausting. In fact, I think I’m still recouping from all of that travel, lol!

The business was sold to one of my Child Care business colleagues and the process was very emotional for me and the staff. I was very selective over who I sold the business too, because that facility was needed in that community, and we had a great reputation for the entire 9-years the facility was open.

It wasn’t about the money for me, I just needed a peace of mine and after 25 years of owning a childcare business, I needed to be closer to the business.

Today I want to share with you 10 steps to assuring a successful childcare business sale or ownership change:

1. Keep the sale of your Child Care business quiet until you have told the families and the staff.
2. Contact your local licensing office to find out what it takes to transfer ownership of an already established childcare business.
3. Asses the value of your childcare business to be sure that you are getting what the business is truly worth. Check out this article
4. Write a letter to the families or plan a meet and greet meeting. Operating a childcare business is a very personable business, and it is vital that families get to know you.
5. Meet with the staff as you go through the change of ownership process or business sale. Once the staff get to know you and connect with you, this may help give the staff some peace about a change of ownership.
6. Warning!! Do not make too many changes at once. Go slow and gradual with changes. People tend to run from too many changes. The only changes I recommend is to change the name, logo and go over your policies at ownership change meetings.
7. Be consistent and be present during the business sale or ownership change. Your presences will send the message that you care.
8. Get to know licensing rules and be prepared for licensing inspections and local municipality inspections. ** Be prepared for the cost of improvements.
9. Be sure that you prepare a profit and loss statement for the business. It is vital that you know what it takes to operate the business successfully including: tuition, payroll and operating expenses.
10. Don’t expect the process to be perfect. Prepare for the unexpected.

Operating a childcare business is a very rewarding business and if you have the mindset that you will succeed, you will. However, if you feel that your season is up, it may be time to sell the business.

A childcare business is a very profitable business and is still in demand. The childcare industry needs more childcare business owners who are passionate, resilient and are fearless leaders. I know firsthand that when you get tired, you lose your edge and passion for the business!

If you are wanting to buy a childcare business or sale your childcare business and you need a business coach, contact me today. I would love to coach you through the process. Click here

With your success in mind,

Dr. Shiketa Morgan

Get my new book, Child Care Business Success Habits