Why childcare centre owners need to have an exit strategy ready

Having an exit strategy worked out in advance lets you maximize your profits when you sell your business

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.

Lastest Listings

Related Articles

How You Can Raise Your Childcare Rates

March 16th, 2018|

Childcare services are indeed a blessing in disguise for those of us that regularly spend long work hours away from home and are unable to spend enough time with our little ones. That said, childcare providers have countless issues of their own such as striking a positive balance between cash inflows and resource expenses and ensuring that they are able to provide high-quality services to their clients

All You Need To Know About The Child Care Policy Revisions By The Federal Government

March 27th, 2018|

Are you ready for the New Childcare Subsidy Changes starting in July 2018? The new CCS will replace the Child Care Benefit (CCB) and the Child Care Rebate (CCR) and will be paid directly to Early Childhood Education and Care (ECEC) services on behalf of families.

Childcare Property Sales, Specialising in Childcare Centres for Sale – 0421 289 818 | 0425 219 355

Over 25 years experience in childcare sales, industry knowledge and marketing