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Daycare Center and Family Home Forum>No Competition? Not Sure About That...
logged out 09:42 PM 08-11-2011
Just wanted to vent. The substitute at the daycare/preschool I teach at knows that I would be running the daycare I'm at now if the owner decides to give it up (she thinks just a few more months, and then wants to hand it over to me). We do a preschool program, accepting preschool age only. Well, now the sub tells the owner that she has decided, and started the process, to open her own daycare/preschool (where she would only accept preschool age also). Her location would be in the same little tiny town. We don't even have a grocery store we're so small. We have trouble staying full since there just aren't that many children in this area (licensed for 12, only have 8 children enrolled and most only come 2 or 3 days a week). Thing is, her preschool would be on the town's main highway (where everyone would see her sign and go past her place everyday).

She has early childhood education degree, I just have CDA. Anyway, I'm pretty upset with her telling the owner to tell me that "there's no competition". Oh...right...! She'd be taking all the preschool age children we have such a hard time finding (everyone wants infant/toddler care and this sub is really good with them and I'm much better suited to preschool. But she decides to do just preschool like us, instead of taking the age group she could actually get a lot of kids from). So knowing that I would be taking over the preschool she subs at (she is a horrible sub, btw. Doesn't like to stand up and do anything, lets the kids go wild, leaves me to care for ALL but one child while she has one-on-one time the whole time she's there with one child at a time), she decides to get a head start on me and open the exact same type of program we have now. Although at one time she told the owner she should take in some infants and toddlers and hire her full time to care just for them (which shows she enjoys that age), but instead decides to open a preschool like us (when told we couldn't do infants). It wouldn't be any big deal in a bigger town, but when it's so tiny, she already has tried to intimidate me (but acts just SO nice and sweet in front of the owner), and it's the exact same type program as us, I'm almost sure she knows we would be major competitors when she opens hers. I might as well let the owner shut this one down now and I open one in another town. It's the only way I'd be able to make it. So much for my dreams and plans. Have any of you ever had an assistant or substitute open a daycare really close to yours? Did it make it harder for you to stay full and fill openings?
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nannyde 06:34 AM 08-12-2011
I think you should look at it as a blessing that the owner is willing to just turn her business over to you. That's an amazing gesture and if the clients are willing to continue bringing their kids then it sounds like a heck of a great start for you. Few providers start out with this kind of boost.

I wouldn't worry about the competition. She has her own set of plusses (degree and location) and she may draw potential clients becaue of it. It's just life. If she takes over the majority of the business then all you can do is reevaluate if you want to provide services that are within her competition.

Why does she not want to stand up when she's working? I see this a LOT in the center cameras I watch. The employees who do this have very specific avoidance behavior that can easily be seen on cameras. They do stuff like push toys across the floor with their feet, lean over to one side to pick up a kid instead of bending from the middle frontward, specifically positioning themselves to have their backs to the kids who are up and free ranging, positioning themselves to the furthest point of the room away from the kids, drawing out table activities WAY longer than what a kid could do and focusing on one kids "craft", waving kids to come to them instead of going to the kid, disciplining by using their voice only instead of physically going over to the kids to manage what is happening.

The behavior of wanting to one to one one kid is VERY common in centers. It's perfect for the employee who wants a full salary and only have one kid to tend to. It's something that center owners fight pretty much every day. In the infant rooms the baby who won't stop crying unless they have their own adult is a perfect match for the employee that only wants to do one kid. It takes a lot of management intervention to get the employee to stop doing it. The best way to do that is to have the other staff take the one baby who needs their own adult and have the staff who only wants one kid take over the whole rest of the room. Doing that for a week or so will show them that if someone gets to do just one kid it will definitely NOT be her.

If I were you I would just look at the glass half full and realize that you are being gifted an opportunity that few get and make it work until you get a different plan. You may need to relocate if your town can just support one provider doing preschool and the parents prefer the education she has and location.
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Blackcat31 07:09 AM 08-12-2011
A few years back, I had a substitute/assistant that decided to go her own way after working for me for several years. She decided she was going to open child care herself and said she had learned enough working in my program to know what to do and not to do to be successful. While working for me she earned her CDA so was qualified to run her program well. She lived only a few blocks from my child care so she was direct competition.

Anyways, long story short....just because she had the knowledge to run a good business didn't mean she would be good at implementing what she knew. My worries were really for nothing. She was apparently very good at being a sub and an assistant while working for me but was not very good at being an owner/operator.

If I were you, I would continue along with your plans and pay no mind to what hers are. If you have built a reputation for what you do and parents know this, then you will get and keep the kids. IMHO, way too many people spend too much time worrying about what ohters are doing and wasting energy they could be using to better themselves.

Start advertising your talents and the things you will offer. Start using your skills as a teacher to talk with parents and further cement the relationships you have with them already. Parents aren't going to rip their children from a program they know and feel comfortable in just because a new one down the street is all fluffy and sugarcoated. If they really know you...they will stay AND recommend YOU to others. Reputation and the relationship you have built with the current parents you work with says a lot for you. Capitalize on that and stop worrying about what this other gal is going to or not going to do.

You cannot control her. You can only control you. Be proactive. Worrying will get you no where. Good luck! You will be fine! Don't give up your dreams and plans because someone else wants to "borrow" them. ykwim?
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e.j. 03:52 PM 08-12-2011
Originally Posted by logged out:
She'd be taking all the preschool age children we have such a hard time finding (everyone wants infant/toddler care and this sub is really good with them and I'm much better suited to preschool. But she decides to do just preschool like us, instead of taking the age group she could actually get a lot of kids from).
I think NannyDe and Blackcat have both given excellent advice to you. Don't worry too much about your competition. Just focus on doing the best job you can do. Most likely, your reputation will keep you in business.

The original owner has hired 2 assistants: you and your future competitor. Once you become the new owner, will you be hiring an assistant or two yourself? If so, would it be possible to hire 1 or 2 assistants who specialize in infant/toddler care? You've said "everyone wants infant/toddler care" in your area. Frankly, that's the demographic I'd go after, then, especially since your competitor wants to focus only on preschool. If you get them as infants and do an excellent job caring for them, most likely, you'll keep them as they reach preschool age. I would think this would give you an edge above your competitor. Just a thought.
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Sugar Magnolia 05:51 PM 08-12-2011
I'm not trying to rain on your parade, I swear! BUT...

So I'm confused...the current owner is "giving" you the business? You mean, she's giving you the lease on the building? And all the other associated business expenses such as fire alarm maintained, kitchen equipment maintains? The insurance bill, the electric bill, the water bill, the advertising bill, the staff salaries obligation, the liscensure fees.....yada yada yada? Have you had a lawyer or accountant review her profit and loss statements?

I am a center owner/operator. its small, but I have learned a LOT about managing the business end the hard way. Honestly, this woman and her potential daycare that's not even open yet are the last thing you should be worrying about. Mathmatics, my sister, its all about the math. Investigate very closely and carefully any and all costs associated. Rent, insurance, staff, TAXES, maintainace is HUGE. Frankly, if someone is "giving" you the business, I'd be suspicious. I'm not a negative person, really, but IMO, nothing is free. Nothing. I'd hate to see someone "give" you debt, financial obligations, contractual obligations, tax liability and heartache. Procede with caution. If nothing is keeping you in that tiny town, go with your gut and leave and follow your own dreams. I have a competing daycare directly across the street, one 2 blocks away and 3 more within a mile. But I followed my dream and made my own center. So can you!!!
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logged out 04:00 PM 08-14-2011
Originally Posted by Sugar Magnolia:
I'm not trying to rain on your parade, I swear! BUT...

So I'm confused...the current owner is "giving" you the business? You mean, she's giving you the lease on the building? And all the other associated business expenses such as fire alarm maintained, kitchen equipment maintains? The insurance bill, the electric bill, the water bill, the advertising bill, the staff salaries obligation, the liscensure fees.....yada yada yada? Have you had a lawyer or accountant review her profit and loss statements?

I am a center owner/operator. its small, but I have learned a LOT about managing the business end the hard way. Honestly, this woman and her potential daycare that's not even open yet are the last thing you should be worrying about. Mathmatics, my sister, its all about the math. Investigate very closely and carefully any and all costs associated. Rent, insurance, staff, TAXES, maintainace is HUGE. Frankly, if someone is "giving" you the business, I'd be suspicious. I'm not a negative person, really, but IMO, nothing is free. Nothing. I'd hate to see someone "give" you debt, financial obligations, contractual obligations, tax liability and heartache. Procede with caution. If nothing is keeping you in that tiny town, go with your gut and leave and follow your own dreams. I have a competing daycare directly across the street, one 2 blocks away and 3 more within a mile. But I followed my dream and made my own center. So can you!!!
The bills are the monthly costs mainly. Utilities, rent for use of building (would have to switch that over to me, but knowing the landlord, there won't be a problem), insurance, etc are just paid when due. She would pay for that stuff until she leaves, then the bills would be switched over to me (after she has them up to date up to the point that she leaves). Now as for taxes that could be very tricky to figure out how to work that! We don't have any other staff. Just me and her (and sometimes the substitute I was talking about if one of us can't make it in). Obviously the sub won't be here after she starts her own, so there won't be any payroll to worry about. I would start out with the kids we have left and then hire an assistant IF enrollment went up. But since most of the children will be graduating to Kindergarten next year, I'll mostly be starting from scratch with the kids after that. Since it's just preschool age we take, we only have the children maybe 3 years before they leave for Kindergarten, so every year there's more openings and every year it seems we get fewer kids to replace those. Even if the owner didn't hand the daycare over to me, and we kept on like we have been, the sub opening her own is still going to make it harder on us to get the number of children we need. Any same-type businss is going to be competition to the other business. Especially in a small town like this. ANY business we lose is a huge deal to us since we rely on every possible kid to stay in business. If we have to let one go, that's a big deal because it takes SOO long to fill that spot. It would be twice as long with another daycare also trying to stay in business. I know she has just as much right as us to run a daycare, but why would she knowing the trouble we have , and then say "there's no competition" as if it wouldn't affect us at all?
But all of you are right. There's no point in worrying about something that hasn't happened yet. She may take possible kids from us for awhile, but the parents may not be happy with the type of care she provides, Or once the sub finds out she has to actually WORK and get up and move around a lot, she may close down right away. Unless she plans to hire an assistant to do it all, but I can't see them putting up with that... Thanks for all the replies. I feel better. I mainly just wanted to complain
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Abigail 09:52 PM 08-14-2011
I agree with all the previous postings, but if you need to fill more spots you should lower your age range to 18 months. Sure 18-24 months is young and cannot do most of the things you do in preschool, but they're very independent and walking and talking some and can eat normal food. It wouldn't be a huge change in your layout, just toddler proofing is all. You can charge more for those who are 18 months-24 months then lower the rate for age 2 and then have your standard 3-6 year old rate. You could probably double your enrollment by adding 18-36 month olds to your program.
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GretasLittleFriends 07:18 AM 08-15-2011
Originally Posted by e.j.:
You've said "everyone wants infant/toddler care" in your area. Frankly, that's the demographic I'd go after, then, especially since your competitor wants to focus only on preschool. If you get them as infants and do an excellent job caring for them, most likely, you'll keep them as they reach preschool age. I would think this would give you an edge above your competitor. Just a thought.
Originally Posted by Abigail:
I agree with all the previous postings, but if you need to fill more spots you should lower your age range to 18 months. Sure 18-24 months is young and cannot do most of the things you do in preschool, but they're very independent and walking and talking some and can eat normal food. It wouldn't be a huge change in your layout, just toddler proofing is all. You can charge more for those who are 18 months-24 months then lower the rate for age 2 and then have your standard 3-6 year old rate. You could probably double your enrollment by adding 18-36 month olds to your program.
I too was going to suggest building your preschool enrollment by taking the littles (infant/toddlers).
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Sugar Magnolia 10:13 AM 08-15-2011
I would definately consider taking littles!
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logged out 07:07 PM 08-17-2011
Thanks for your thoughts, everyone. I'm just not that good with toddlers. In my opinion, they're a whole lot more work and hassle, require a LOT more time and supervision, etc. Plus there's more risk involved of things that can happen (considering the age and that they're always into everything they shouldn't be . I love children this age, just not being responsible for them. Plus it would really mess up the preschool routine with the diaper changes, potty training, them running around getting into everything while I'm trying t teach the preschoolers... And of course if the preschoolers see one child running around and playing, they decide to try it themselves and don't understand why so and so can, and they can't. Usually the preschoolers start behaving like the toddlers if they're around them too much. (we used to take toddlers, and we had to have two people constantly working. While I did preschool, the other person had to watch the toddlers, but since we don't have a seperate room for preschool, it was way too distracting. And of course we had the toddler biting and other toddler behavior thing, and one parent even pulled her preschool age child out because of it. It just simply didn't work for us having toddlers. Our whole set up and schedule/routine is for preschool age. We take lots of field trips we wouldn't be able to take with toddlers....). I really did think about possibly doing toddlers also (for a minute anyway lol), but my list of cons outweighed the pros by far. The only pros I came up with were maybe a few more children enrolled, but really our calls aren't even that many for toddlers. It's mostly for infants (up to age 12 months usually).
Thanks again for the replies! I think I'll just wait and see what happens before worrying too much more about it.
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Tags:assistant, competition, competitive, supervision, toddlers
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