Childcare Centre Owners Exit Strategy
Every business requires thorough planning and preparation to handle any kind of sudden development. This statement is applicable to childcare centres too. If you are an owner of a childcare centre, you need to have an exit strategy in mind even if you do not have any intention to sell your centre at present. There are plenty of reasons for this:
1. You May Get an Offer
It can so happen that somebody shows interest in buying your centre. In such a case, you need to be prepared with all the information about your childcare centre. You should have a plan ready in your mind to make an exit when you want to. You also need to think of the terms of the exit strategy. For this purpose, it’s better to plan beforehand.
2. Your Business Might Get Affected by the Economy
In times of recession; the childcare sector may take a major hit in terms of revenue. At such a time, if your child care centre also gets affected negatively, you can make a quick exit from the business if you have a plan ready. An exit strategy becomes imperative in order to cut losses and to protect what is left of your capital.
3. You Might Not Be Able to Carry On
There can be many reasons for this. Aging and retirement can compel you to pass on the reins to somebody else. Health issues and medical emergencies can prevent you from performing your management duties. The demographic shift in the locality of your centre may cause a fall in revenue.
The deteriorating condition of your property and the renovation expenses can force you to sell off your centre and get the maximum value out of it when it is available. All these are contingencies for which you need to be prepared.
Things to Keep in Mind While Planning an Exit Strategy
- Your location
- Lease contract
- Value of equipment and assets
- Role and salary of your employees
- Your curriculum and services
- Compliance licenses
- Relationship with parents
- Management policy
When you have all these details hashed out, you can be prepared when the time for an exit presents itself. If that occasion arises, you can get hold of a childcare broker who is an expert in handling childcare sales and make a quick and profitable exit. It is always better to be prepared for all the possibilities rather than being sorry later.