Daycare.com Forum
Daycare Center and Family Home Forum>Nervous-- NeedHonest Advice:-)
missy 04:00 PM 12-13-2013
I have been looking for commercial property to start my own center for months now. I finally found the perfect place in an awesome central location in my moderately-sized city. But the financial end is stressing me out!-- it is $3500/mo. for 3500 sq. ft. which is a great price here for the location. I have enough $ (a loan) to open my doors, down posits etc. But what makes me nervous is that my "break even" point is about 30 FT kids 5 days a week. My heart is in this so I don't care if if I don't make a dime off of it the first year or two. But $3500/mo. plus costs every month adds up quick!!! Am I getting in way over my head?? How long should I expect to meet my break even point?? It will fit 60+ kids by state regs.
Blackcat31 04:23 PM 12-13-2013
I wish I had an answer but this business is never a "for sure" thing so it would be hard to say this is a risk or that it isnt.
I also don't know the supply and demand ratios for your area.
Regardless, i am jealous and wish you well!
My dream is to own a center so it sounds fabulous!
Keep us posted on your progress!!
I also don't know the supply and demand ratios for your area.
Regardless, i am jealous and wish you well!
My dream is to own a center so it sounds fabulous!
Keep us posted on your progress!!
missy 04:56 PM 12-13-2013
Thank you!! I am so excited but just wish I had some certainties. But I have decided life is worth a lil risk so I am going for it:-)
MamaBearCanada 05:13 PM 12-13-2013
Originally Posted by missy:
I have been looking for commercial property to start my own center for months now. I finally found the perfect place in an awesome central location in my moderately-sized city. But the financial end is stressing me out!-- it is $3500/mo. for 3500 sq. ft. which is a great price here for the location. I have enough $ (a loan) to open my doors, down posits etc. But what makes me nervous is that my "break even" point is about 30 FT kids 5 days a week. My heart is in this so I don't care if if I don't make a dime off of it the first year or two. But $3500/mo. plus costs every month adds up quick!!! Am I getting in way over my head?? How long should I expect to meet my break even point?? It will fit 60+ kids by state regs.
I have been looking for commercial property to start my own center for months now. I finally found the perfect place in an awesome central location in my moderately-sized city. But the financial end is stressing me out!-- it is $3500/mo. for 3500 sq. ft. which is a great price here for the location. I have enough $ (a loan) to open my doors, down posits etc. But what makes me nervous is that my "break even" point is about 30 FT kids 5 days a week. My heart is in this so I don't care if if I don't make a dime off of it the first year or two. But $3500/mo. plus costs every month adds up quick!!! Am I getting in way over my head?? How long should I expect to meet my break even point?? It will fit 60+ kids by state regs.
I have no idea what is involved in running a center. I am wondering though if you would be allowed to rent out the space evenings and weekends for meetings or kids' birthday parties and if that would help with revenue?
missy 01:32 AM 12-14-2013
Wow, that's a great idea, I never thought of that. It will be vacant all evening. thanks!
Laurel 06:43 AM 12-14-2013
Originally Posted by missy:
Wow, that's a great idea, I never thought of that. It will be vacant all evening. thanks!
I don't know a thing about it all either but I do know that when we wanted a place to hold child care provider association meetings almost everyone told us we would need our own liability insurance. In other words, if you rent it out consider what will happen if someone gets hurt on your property or a fire starts or whatever. I'm not trying to be a downer but just to be on the safe side.Wow, that's a great idea, I never thought of that. It will be vacant all evening. thanks!
My home provider friend used to own two centers. She told us that it is better to find a church that has property that you could put a center in because they are tax exempt and will rent you space for less. She said a commercial center raises rent and if you are only allowed to have X number of children then you either have to charge more or you are stuck.
It sounds like if you can break even with 30 and can take 60 you should be okay though.
Good luck!
Laurel