Daycare Center Business

[Anonymous]

Hi are Daycare Center Business always profitable. What are the risks associated with it ? If the location is favorable will it run successfully under good management? Any inputs.

[Anonymous]

Um, no.

Most operate on razor thin margins and have trouble finding qualified staff who will accept the low pay.

[Anonymous]

You've posted this on so many forums. You need real help. Talk to a bank or a lender. They will usually help you analyze the business side of things.

[Anonymous]

I agree with previous poster. It is a tough job with little pay and long hours. The government has a ton of regulations so the daycares spend a lot of money on licensing and paperwork. Parents complain about high tuition rates but that's just how much things cost. If the government were to subsidize certain aspects of running a daycare center, the whole landscape would be different. But sadly, that is not the case.

Home based daycares may be a little more profitable but some parts of the DMV is saturated with them. I don't even know if most home daycares hit maximum enrollment six months out of a calendar year. Just go on craigslist and search daycares and there's over a dozen at any given time seeking enrollment.

[Anonymous]

Our daycare was a federally subsidized center (meaning it received space, utilities, and janitorial services), and even so, looking at the budget, it was pretty clear that the infant room was a loss leader. The staffing ratios required meant that they were not making money on infants, even though that was the most expensive tuition. They did turn a profit on the older kids, particularly those in the threes and fours room. Location, utilities, supplies, staff salaries and benefits, admin costs (including costs of compliance), and training and programming expenses eat up money at a well-run center.

[Anonymous]

Post your email and I will help you privately.