Thinking of Opening a Center but Hear They Aren't Profitable

[LittleScholars]

Is this a myth? I keep running numbers and it seems to be hugely profitable. What am I missing?

[kendallina]

Don't know what you're missing unless we see your numbers.

In my town, a small center will not be profitable. A large center may not get enough business, as we live in a small town. I've run the numbers and thought about it a lot, it just won't work. Your situation may be different.

[storybookending]

The centers in my areas are insanely profitable. That being said it’s still not something I personally would ever consider.

[amberrose3dg]

Originally Posted by storybookending

The centers in my areas are insanely profitable. That being said it’s still not something I personally would ever consider.

Nope staffing the center to me would be a nightmare.

[LittleScholars]

Originally Posted by kendallina

Don't know what you're missing unless we see your numbers.

In my town, a small center will not be profitable. A large center may not get enough business, as we live in a small town. I've run the numbers and thought about it a lot, it just won't work. Your situation may be different.

Of course! I'll post them during nap

[LittleScholars]

Originally Posted by storybookending

The centers in my areas are insanely profitable. That being said it’s still not something I personally would ever consider.

This was the boat I was always in; however, I was presented with a building and a safey net. My husband's family has a vacant property in a strip mall. I could move in rent-free for a few months with a built in safety net. Quickly I would have the same responsibilities as any tenant, but they are offering to provide some cushion. It is a win for them (they get a reliable tenant) and a win for me (loads of savings and a safety net if this doesn't go as planned).

The actual act of owning a center is not super desirable for me, but daycare costs are crazy here ($320/week for infants, $285-$310 for toddlers and preschoolers), so I think the cash flow is there. I'm not dying to do this, but I wonder if I'm passing up a huge opportunity.

I am getting little antsy with my current home daycare situation. I used to be a public school administrator and I think I miss the action. Staffing seems like a nightmare, though.

[Lil_Diddle]

I love children and early childhood education. I used to think I would love running a large center. Until I worked at a few. Staffing and finding reliable and quality staff would be the biggest red flag for me.

[Meeko]

I taught pre-school at a large center for a few years about 22 years ago. We had a male student working there too, who was SOOO great with the kids. He got married and he and his wife ran an in home daycare for a few years. Then they bought a small center in a neighboring town...thinking they were moving up.

I saw them a couple years later in a store and mentioned that we had toyed with the idea of opening a center too.

they said don't do it unless you go big. They had one for about 40 kids and after all the overhead for the building and staff, they were barely pocketing any more than they had been doing large group daycare at home. Yet the work was a lot more. They later expanded and were happy with it, but they has regretted it at first, simply due to not being big enough.
So their advice was go big or go home!

[LittleScholars]

This is all great advice.

So, I found a big glitch that I think is a deal breaker (and, truthfully, I'm a little relieved). When reading over the regulations, I saw centers can't be near gas stations. This property is close to one, so I investigated why. I imagine it is far enough to be approved, but the things I learned made me doubt I'd want to have my own kids there for 10 hours a day.

[Mom2Two]

Originally Posted by LittleScholars

This is all great advice.

So, I found a big glitch that I think is a deal breaker (and, truthfully, I'm a little relieved). When reading over the regulations, I saw centers can't be near gas stations. This property is close to one, so I investigated why. I imagine it is far enough to be approved, but the things I learned made me doubt I'd want to have my own kids there for 10 hours a day.

What is the issue with gas stations? I've never heard that one before.