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

Posts tagged ‘How to Start a Daycare’

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

Are You Meeting the Demand For Child Care in Your Community?

Michelle Wanwimolruk and daughter Mei-Mei

(Photo credit)

Do you know what the demand for childcare is in your community? In fact, Have you noticed an increase in parents needing early morning, evening or weekend Care?

Are you willing to change your program hours to meet the demand for childcare in your community?

When I first entered the child care industry in 1998, most families worked a 9-to-5 job, now many families are working evenings and weekends in order to survive in a tough economy.

Furthermore, their childcare needs are changing.

According to John Yang of NBC, “ As parents take jobs with odd hours to stay afloat in a difficult economy, their daycare needs go beyond the typical nine to five.’

Moreover, according to the Census Bureau, “Like most service sectors, child care primarily serves local demand.” So what is your local demand?

Is there a demand for more preschool care? Is there a demand for School-age Care? Are parents inquiring about part-day versus full-day?

It is vital that you know the demand for Child Care in your Community. In fact, when you know the demands of Child Care in your area, you could easily fill your enrollment slots.

Here are 5 ways to discover the Demand for Child Care in your Community?

1. Pay close attention to the questions that parents are asking when they inquire about childcare.

2. Contact your local Child Care Resource and Referral agency to find out the childcare needs of the families in your community.

3. Be flexible. When printing flyers, advertise Part or full-time care. If you open before 6:00am or close later than most daycare’s; be sure to indicate that information on your flyers.

4. Some daycare providers are willing to share , so don’t be shy. Contact surrounding day cares to find out how they seek to meet the need or demand of Child Care in the Community.

5. Contact Businesses in the surrounding community. Find out the hours of the Businesses, then find out how much of their workforce consists of working families. Then, cater to the Child Care needs of those families.

I would love to read your thoughts about this blog post, feel free to leave a comment below and I will join the discussion.

With your success in mind,

Shiketa

Resource: Daycare on Demand, click here

Marketing or Enrollment Building tips, click here

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