It seems like every other day a new child daycare center is opening up. Ambitious entrepreneurs all over the country have followed their gut and invested in themselves by building their dream childcare facility. When millions of parents place the care of their little ones in the hands of strangers, one must ensure that if they are entering into this very sensitive industry, all their ducks are in a row. It is no surprise to anyone then that the childcare industry is ripe with obstacles that are fairly unique to itself, which daycare center owners must address in order to operate. And much like most industries, operating costs are often high and regulations plentiful. Matters are not helped by the fact that child daycare centers are notoriously under-funded and sadly, under-staffed.
It is fairly common for daycare centers to face financial problems, which often requires some monetary nurturing. Overlooking these variables is the difference between staying open or closing indefinitely. That is why many business owners look for some relief by way of a business loan, a cash advance or daycare center business line of credit to stay afloat in a highly competitive and challenging industry.
Just some of the issues to keep in mind:
- Low tuition
- Lack of sufficient supplemental funding
- High overhead; including rent, utilities, administrative costs
- Employee salaries