Daycare.com Forum
Daycare Center and Family Home Forum>Risky? Or Great Opportunity?
Sugar Magnolia 01:06 PM 04-01-2013
The house next door to my center is for rent. They are asking $1000 per month rent. I currently don't do infants.....space restraint in my existing building. I have at least one or two calls a week for infants I have to turn down. If I rented this house, I could have 12 infants and hire.3 fulltime and one part time (floater, give breaks) employees. The going rate for infants is $225 per week. I would pay $10 an hour to staff. So weekly income would $2700 per week, staff would.cost $1400 per week. That's monthly profit of $5200 power month, minus rent, utilities and misc. expenses, I'm looking at around $3500 per month take home pay. So that is the "great opportunity" end. But the risks? Low.enrollment? What if the owner cancels the lease? (they know it would be a daycare). What if the.staff was.unreliable? What if the city takes 14 months to issue the zoning permission? (like my center, 14 months!!!) What if it tanks and I still have a lease to pay? Would YOU.take this risk? Is it worth the risk I dunno. If I never took a risk, I would never have had my.center...
Country Kids 01:16 PM 04-01-2013
Originally Posted by Sugar Magnolia:
The house next door to my center is for rent. They are asking $1000 per month rent. I currently don't do infants.....space restraint in my existing building. I have at least one or two calls a week for infants I have to turn down. If I rented this house, I could have 12 infants and hire.3 fulltime and one part time (floater, give breaks) employees. The going rate for infants is $225 per week. I would pay $10 an hour to staff. So weekly income would $2700 per week, staff would.cost $1400 per week. That's monthly profit of $5200 power month, minus rent, utilities and misc. expenses, I'm looking at around $3500 per month take home pay. So that is the "great opportunity" end. But the risks? Low.enrollment? What if the owner cancels the lease? (they know it would be a daycare). What if the.staff was.unreliable? What if the city takes 14 months to issue the zoning permission? (like my center, 14 months!!!) What if it tanks and I still have a lease to pay? Would YOU.take this risk? Is it worth the risk I dunno. If I never took a risk, I would never have had my.center...
The house next door to my center is for rent. They are asking $1000 per month rent. I currently don't do infants.....space restraint in my existing building. I have at least one or two calls a week for infants I have to turn down. If I rented this house, I could have 12 infants and hire.3 fulltime and one part time (floater, give breaks) employees. The going rate for infants is $225 per week. I would pay $10 an hour to staff. So weekly income would $2700 per week, staff would.cost $1400 per week. That's monthly profit of $5200 power month, minus rent, utilities and misc. expenses, I'm looking at around $3500 per month take home pay. So that is the "great opportunity" end. But the risks? Low.enrollment? What if the owner cancels the lease? (they know it would be a daycare). What if the.staff was.unreliable? What if the city takes 14 months to issue the zoning permission? (like my center, 14 months!!!) What if it tanks and I still have a lease to pay? Would YOU.take this risk? Is it worth the risk I dunno. If I never took a risk, I would never have had my.center...
Its sounds great but the first thing I thought of would you even be able to have employees in a totally different building with children. Here we would have to be on premise with the employees. Even though you are next door that just seems like a huge liability.
Also, what would it cost for insurance for the building plus 4 additional employees?
It sounds good but in the end to bring that amount home for 12 infants doesn't sound like much. I bring home close to that with 6 preschoolers and 4 SA.
Also, what happens if you start having a big turnover of employees/infants and your constantly trying to find workers and infants. What happens if you have employees sick, who would fill in?
There are so many variables it seems to childcare and you never know if taking the next step is good or not unless you do it but you risk so much taking it.
AmyKidsCo 01:22 PM 04-01-2013
Don't forget to include liability insurance, utilities, food, supplies, furnishings, background checks (if needed in your state), etc in your expenses. And whether or not you'd have to make any changes/modifications to the house to make it compliant with licensing in your state.
SilverSabre25 01:28 PM 04-01-2013
I think it sounds like a great opportunity for you, even though it's risky. I read this blog and I think they have a similar sort of set-up.
Heck, you could even combine the yards maybe and expand your out door play space!
Heck, you could even combine the yards maybe and expand your out door play space!
Blackcat31 01:30 PM 04-01-2013
Originally Posted by Sugar Magnolia:
The house next door to my center is for rent. They are asking $1000 per month rent. I currently don't do infants.....space restraint in my existing building. I have at least one or two calls a week for infants I have to turn down. If I rented this house, I could have 12 infants and hire.3 fulltime and one part time (floater, give breaks) employees. The going rate for infants is $225 per week. I would pay $10 an hour to staff. So weekly income would $2700 per week, staff would.cost $1400 per week. That's monthly profit of $5200 power month, minus rent, utilities and misc. expenses, I'm looking at around $3500 per month take home pay. So that is the "great opportunity" end. But the risks? Low.enrollment? What if the owner cancels the lease? (they know it would be a daycare). What if the.staff was.unreliable? What if the city takes 14 months to issue the zoning permission? (like my center, 14 months!!!) What if it tanks and I still have a lease to pay? Would YOU.take this risk? Is it worth the risk I dunno. If I never took a risk, I would never have had my.center...
If infant care is in high demand in your area....I would 100% with out a doubt take the chance!!!The house next door to my center is for rent. They are asking $1000 per month rent. I currently don't do infants.....space restraint in my existing building. I have at least one or two calls a week for infants I have to turn down. If I rented this house, I could have 12 infants and hire.3 fulltime and one part time (floater, give breaks) employees. The going rate for infants is $225 per week. I would pay $10 an hour to staff. So weekly income would $2700 per week, staff would.cost $1400 per week. That's monthly profit of $5200 power month, minus rent, utilities and misc. expenses, I'm looking at around $3500 per month take home pay. So that is the "great opportunity" end. But the risks? Low.enrollment? What if the owner cancels the lease? (they know it would be a daycare). What if the.staff was.unreliable? What if the city takes 14 months to issue the zoning permission? (like my center, 14 months!!!) What if it tanks and I still have a lease to pay? Would YOU.take this risk? Is it worth the risk I dunno. If I never took a risk, I would never have had my.center...
I think you have a good thing going and have no issues with backbone and other daycare related things (both business and fun sides) and like you said, if you had never taken a chance, you wouldn't be where you are today!
I think one of the saddest things in life aren't the missed opportunities but the opportunities that were never taken for fear of failure.
Sugar Magnolia 02:59 PM 04-01-2013
Originally Posted by Country Kids:
Its sounds great but the first thing I thought of would you even be able to have employees in a totally different building with children. Here we would have to be on premise with the employees. Even though you are next door that just seems like a huge liability.
Also, what would it cost for insurance for the building plus 4 additional employees?
It sounds good but in the end to bring that amount home for 12 infants doesn't sound like much. I bring home close to that with 6 preschoolers and 4 SA.
Also, what happens if you start having a big turnover of employees/infants and your constantly trying to find workers and infants. What happens if you have employees sick, who would fill in?
There are so many variables it seems to childcare and you never know if taking the next step is good or not unless you do it but you risk so much taking it.
I see your point! I do hold a Directors Credential, I was told by licensing I only have to be on site for 4 hours a day. I will DEFINITELY need to look into that. I do worry about staff turnover to. Thanks for your reply Country!Its sounds great but the first thing I thought of would you even be able to have employees in a totally different building with children. Here we would have to be on premise with the employees. Even though you are next door that just seems like a huge liability.
Also, what would it cost for insurance for the building plus 4 additional employees?
It sounds good but in the end to bring that amount home for 12 infants doesn't sound like much. I bring home close to that with 6 preschoolers and 4 SA.
Also, what happens if you start having a big turnover of employees/infants and your constantly trying to find workers and infants. What happens if you have employees sick, who would fill in?
There are so many variables it seems to childcare and you never know if taking the next step is good or not unless you do it but you risk so much taking it.
Sugar Magnolia 03:04 PM 04-01-2013
Originally Posted by AmyKidsCo:
Don't forget to include liability insurance, utilities, food, supplies, furnishings, background checks (if needed in your state), etc in your expenses. And whether or not you'd have to make any changes/modifications to the house to make it compliant with licensing in your state.
I did include utilities and liability insurance in my calculations. I charge a supply fee, patents would provide food. Hmmm, didn't really consider furnishings or toys though. That is a big expense. Thanks for that important point . The house would need no modifications, its ready to go. Appreciate your input Amy!Don't forget to include liability insurance, utilities, food, supplies, furnishings, background checks (if needed in your state), etc in your expenses. And whether or not you'd have to make any changes/modifications to the house to make it compliant with licensing in your state.
Sugar Magnolia 03:06 PM 04-01-2013
Originally Posted by SilverSabre25:
I think it sounds like a great opportunity for you, even though it's risky. I read this blog and I think they have a similar sort of set-up.
Heck, you could even combine the yards maybe and expand your out door play space!
Good blog! I think it sounds like a great opportunity for you, even though it's risky. I read this blog and I think they have a similar sort of set-up.
Heck, you could even combine the yards maybe and expand your out door play space!
. Oh the combined yards would be heavenly!! That was my first thought! Thanks Silver!
Sugar Magnolia 03:14 PM 04-01-2013
Originally Posted by Blackcat31:
If infant care is in high demand in your area....I would 100% with out a doubt take the chance!!!
I think you have a good thing going and have no issues with backbone and other daycare related things (both business and fun sides) and like you said, if you had never taken a chance, you wouldn't be where you are today!
I think one of the saddest things in life aren't the missed opportunities but the opportunities that were never taken for fear of failure.
Thanks Cat! Infant care is in super duper overdrive demand. Just told.someone no.about.two hours ago. Thank you for the inspiration. If infant care is in high demand in your area....I would 100% with out a doubt take the chance!!!
I think you have a good thing going and have no issues with backbone and other daycare related things (both business and fun sides) and like you said, if you had never taken a chance, you wouldn't be where you are today!
I think one of the saddest things in life aren't the missed opportunities but the opportunities that were never taken for fear of failure.
I do have to figure out the whole Director thing, like Country pointed out. I could do 4 hours at my current center, and 4 hours next door at the Infant Center. Hmmm, then I need another person at the existing site to cover my 4 hour absence. More expense....
As.always, love your input!
itlw8 06:24 PM 04-01-2013
My worry is how close you will cut from profit to a loss if you are not full. Each opening means 1000 less a month but not less staff.
momofsix 06:43 PM 04-01-2013
You've already got the experience of running a center. You've already established a great reputation. Having the infants would pretty much guarantee keeping your first center full as they age out of the infant one. I think if you can make the numbers work then go for it!!!
Holiday Park 06:44 PM 04-01-2013
Maybe you can do month to month rent ? or at least starting out.
Lucy 06:56 PM 04-01-2013
Maybe you could see if your lease agreement would include the right to sub-let. If your infant center tanks, you can sub-let the house to someone else to live in it.
Sugar Magnolia 08:11 PM 04-01-2013
Originally Posted by itlw8:
My worry is how close you will cut from profit to a loss if you are not full. Each opening means 1000 less a month but not less staff.
Yes. This. This exactly is my worry. This scares, me. I needed to hear that from someone else. Thank you.My worry is how close you will cut from profit to a loss if you are not full. Each opening means 1000 less a month but not less staff.
Sugar Magnolia 08:13 PM 04-01-2013
Originally Posted by momofsix:
You've already got the experience of running a center. You've already established a great reputation. Having the infants would pretty much guarantee keeping your first center full as they age out of the infant one. I think if you can make the numbers work then go for it!!!
You've already got the experience of running a center. You've already established a great reputation. Having the infants would pretty much guarantee keeping your first center full as they age out of the infant one. I think if you can make the numbers work then go for it!!!
The Farm Team!
(for you baseball fans)
Sugar Magnolia 08:21 PM 04-01-2013
Originally Posted by Holiday Park:
Maybe you can do month to month rent ? or at least starting out.
You know, I didn't ask. Maybe..... . Great idea! Maybe you can do month to month rent ? or at least starting out.
Sugar Magnolia 08:23 PM 04-01-2013
Originally Posted by Lucy:
Maybe you could see if your lease agreement would include the right to sub-let. If your infant center tanks, you can sub-let the house to someone else to live in it.
I didn't think of that either. Great idea! Maybe you could see if your lease agreement would include the right to sub-let. If your infant center tanks, you can sub-let the house to someone else to live in it.
Wish I could just buy it.
originalkat 06:47 AM 04-02-2013
I think if Infant demand is high it sounds like a great opportunity...except for the zoning part. I recently found this website about a company that does infant care out of homes. It might give you some inspiration
http://www.mybundle-of-joy.com/
http://www.mybundle-of-joy.com/