How To Buy A Day Care Center
Investors that are looking for new business opportunities in the modern marketplace tend to go for the more obvious business opportunities in retail and finance, but sometimes the more obscure investments can reap bigger and better rewards. The personal services industry can be especially lucrative if wise investments are made and buying a day care center can indeed be a wise investment. Day care centers are highly sought after today in the business marketplace because they can be extremely profitable owing to the demand for such services. If you are looking into how to buy a day care center the following information will come in handy.
Types Of Day Care Center
There are several types of day care center that you could invest in but the two most lucrative are the seniors’ day care center and the child day care center. The former is for adults that need care for various disabilities but still live in their own homes, and the latter is to provide children with adequate care and stimulation whilst their parents are at work. Before you look to buy a day care center, you should decide which one of the two you would prefer to invest in. However, it must be said that the latter generally tends to be more profitable.
Day care centers for sale are often highly profitable. Many have net profits of less than $100,000, but this can rise to above $300,000 if the correct management is in place. You do not have to take a hands-on role to get results though because management positions in such a business are highly desirable and existing businesses will often come complete with a full quota of staff and management as well. A good accountant will be able to assess the cash flow of a good day care center and report in the affirmative if the business is a sound investment.
However, if you intend to make the most of the opportunity to buy a day care center then you should formulate a business plan that can dramatically increase revenue and, in terms of profitability, there are several easy ways to do that such as providing transport services, offering meals, opening earlier and closing for the day later and so on. A five-day week of after-school care alone, meaning up to three or four hours at the end of the school day, can generate $65 per child, with full days inclusive of school hours, bringing in three times that amount, so the potential for profit is huge.
Location And Property
The location of the business is crucial when buying a day care center because it has to be accessible to any parents that may need your services. Of course, a good day care center will already have an established list of clients to ensure future revenue, but the potential to expand should be in place too. Good local transport links are essential for ease of access. A location in the proximity of a school is also highly desirable but this is not necessarily vital in ensuring the future success and profitability of the business.
In terms of the safety of the children that will be in the care of the business, you also have to assess other factors that are associated with the day care center for sale, such as a location slightly off the main street, which makes it much easier to monitor the comings and goings. There are also other accessibility issues regarding buying a day care center, such as an accessible and adequate parking lot. However, you should avoid inner city areas wherever possible as a result of the lower gross income and the average family’s affordability.
Insurance And Regulations
Finally, there are always insurance costs to think about and plenty of regulations to research and adhere to. Both of those factors should be referred to your lawyer alongside the contract details as he or she will be able to have the building and business fully assessed before any offer is made. This is a must. Of course, the regulations change from state to state and country to country so you must be fully informed of them and the status of the day care before you invest. However, when you look at how to buy a day care center, all this will become apparent as a result of the paperwork that it is necessary to file, which your lawyer will of course be able to help with!