To work in or manage centres for children, one must have a particular skill set and personality. In addition, it is crucial to build trust with children and their families, rather than just making profits. That’s why it may be challenging for some people to buy into the childcare industry.

But while buying a childcare centre and running it successfully may seem difficult, it is not necessarily impossible. With a bit of good business sense, intelligent choices, and prudence, it is possible to operate a profitable childcare centre.

Below are some key factors you can consider and work on when buying into the childcare industry.

Do you meet the educational and financial requirements?

While a degree may not be essential to own a childcare centre, having a diploma qualification will help you better understand the responsibilities of such a business.

Also, if you plan on teaching at the centre, it will be imperative for you, not just your staff, to have the necessary educational qualifications.

Similarly, you must ensure you have a sound financial plan and backing to take up such a venture. First, you will need to check if there is sufficient capital to invest in purchasing, creating, or franchising a childcare centre.

Next, ensure there are enough enrollments so that you can support staff salaries. Finally, a rough outline of everyday expenses will also come in handy when drafting the budget.

What type of childcare should you pick?


One cannot understate the importance of childcare and the fact that every child has the right to early-age care and education. With this in mind, the childcare industry offers four significant kinds of childcare centres for parents to choose from. Before you buy a centre, read a little more about these so you can make a sound decision.

  1. Long or full-day childcare centres are where folks can leave their children for the entire day.
  2. Occasional care centres offer people the flexibility to use them as and when they need to, instead of forcing the option of a daily care service on them.
  3. After-school care centres keep children safe after school hours until their parents can pick them up on their way back home from work.
  4. Preschool care centres can be full or part-time places that take in toddlers. They may also have kindergarten programs a few times each week.

There is another vital aspect to consider when investing in a childcare centre – Do you wish to buy a centre that is already functional, a franchisee, or create one from scratch?

Choosing the right location

Once you have finalised the type of childcare centre to invest in, finding the perfect location is critical. Typically, the centre should be in a family suburb where several residents have children. This type of neighbourhood will ensure your business runs smoothly as there will be plenty of enrollments, making it easy for you to break even.


Also, another thing to include in your marketing strategy is scouting areas that have the majority of double-income families with children. Since both parents are working, their children will need a safe, clean, and upscale centre while they are at work.

Buying a childcare centre in such a location will let you enjoy higher returns.


Insurance is vital

Since the well-being of children at the centre is a huge responsibility, you must ensure to take as many safety precautions as necessary. This includes having plenty of insurance cover. It protects against thefts, accidents, property damage, personal injury, and other things.

Following are some essential insurance coverages you can consider for your childcare centre.

  • Personal injury/accident insurance for volunteers
  • Property damage
  • Glass insurance
  • Director and officer liability
  • Insurance for electronic equipment
  • Fidelity guarantee
  • Money insurance

Besides getting insurance, ensure you have the necessary license and registration for the centre. Detailed research toward this is key as each territory and state may have different requirements.

If you are buying an already established centre, check if their license is valid before making the final purchase.

A childcare centre is a good business investment

Buying a childcare centre is an excellent investment idea if you want quick and lasting results. There are multiple arguments in favour of the decision.

For one, the childcare industry remains unimpacted with advances in technology because it is a fundamental, hands-on societal requirement. Secondly, the land for childcare centres is kept well-maintained because of the nature of the job. This increases property life and value.

Also, even if property owners don’t know how to run a centre, they can lease it to someone with the requisite qualification and know-how. The lease can be for longer durations, with a steady increase in the annual rent.


About Ambika Taylor

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