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How to Buy a Childcare Centre

Ready to Embrace Your Inner Child? Read this to find out how to buy a childcare centre!

The childcare sector is a unique industry to buy into. Working with children takes a very specific personality and skill set to be successful at not just turning a profit but also building trust with the parents and children you’re interacting with on a daily basis.

Once you’ve decided you’re up for the responsibility of caring for the little munchkins, here are some things to consider as you navigate the buying process.

Education and qualifications

Before buying a childcare centre, take an inventory of your educational background and the qualifications you possess to own a business in this sector.

Having a degree isn’t essential; however, a diploma qualification will better equip you to understand the daily responsibilities of business ownership. It’s also highly beneficial to have gained experience by working in a variety of early childhood settings.

Financial requirements

Financial requirements will vary considerably depending on location and size, and if you buy a pre-existing facility or a franchise. There are pros and cons for each option, but regardless of your decision, the budget can range anywhere from $200,000 to upwards of $10 million.

To gain a better understanding of cost, visit here to see the price range of current childcare facilities for sale. You can also take a look herefor helpful information about securing a business loan for a childcare centre.  

Franchise vs. Independent

First, decide what type of childcare centre you’d like to purchase: an independent site or a franchise. Is your primary interest in creating your own business, or would you prefer to buy a franchise with a well-established company? 

  • Advantages of a pre-existing independent facility: Staff, children, and processes are already established. The majority of the hard work has been done, and all you really need to do is maintain it; however, you’re free to make any changes as you please.
  • Advantages of a franchise: Although you’ll be required to give the franchise a percentage of your profits and to adhere to their standards, you’ll receive a tremendous amount of support from them with regard to documentation, policies, and procedures.

The ideal location 

Ideally, your centre should be located in a family-orientated suburb, near a primary school, or by businesses with employees who might need childcare.

Take time to consider all your options, and be strategic when choosing your location. A thorough understanding of the surrounding community will enable you to develop an ongoing marketing plan that will help you achieve your enrolment goals.

Next, if you decide to purchase an existing establishment, you will need to conduct a thoroughdue diligence, review their current business dealings, and examine their profit statements to confirm the viability of the business.

Talk with the current owner to determine student enrolment, operational costs, and the expenses of maintaining or hiring additional staff.

Facilities, Equipment, Safety, and Security

If you’re purchasing an existing business, hire an expert to inspect the building and any applicable equipment to ensure that everything meets safety standards. 

Consider if security is adequate or if additional locks, surveillance, and protection are needed. Additionally, outside areas should be fully fenced to ensure children’s safety. Carefully evaluate the property, and then determine what additional costs you will incur when updating it.

Licensing and Legislative Regulations  

Each state and territory may vary in their requirements for owning and operating a childcare centre, so do your research and make sure you’re able to obtain relevant licences. If you’re purchasing an existing establishment, find out if it’s compliant with current legislation. 

Keep in mind, required licences cost around $500, and applications can take up to three months to be processed. Once granted, licences typically stay in effect for up to three years.

Additionally, if your centre will be providing transportation and food, there will be other licensing requirements and guidelines that you will need to adhere to as well. 

Another licence to consider applying for is the Child Care Subsidy (CCS) Approval from the Department of Education. Parents are more likely to use a CCS-approved centre because they can claim the benefit for work-related costs. 

Type of Childcare

Finally, you will need to decide what type of childcare services you will provide. Consider the following options and choose the best fit for your personality and lifestyle:

  • A full daycare facility allows for working parents to drop their children off early in the morning until late in the evening.
  • Preschool services are not necessarily full time but can include kindergarten services or programs designed for two or three days per week.
  • Occasional care services allow parents greater flexibility and use for particular circumstances.
  • After-school services give children who are attending a full day of school a safe place to stay during their after-school hours.

Now that you know the ABCs of buying a childcare centre, visit here and let us help you get started on this exciting new adventure! 



Faye Ferris

About the author

APAC Sales & Marketing Director for BusinessesForSale.com, the world’s most popular website for buying and selling businesses globally and attracting over 1.5 Million visitors each month. To contact Faye please email faye@BusinessesForSale.com

@YouAreYourBoss

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