GA Day Care Foreclosures

[Unregistered]

Why there are so many foreclosure in Day Cares in GA? I am new member and interested in potentially getting in to Day Care business by purchasing one of the existing centers, but these foreclosures scares me a little bit about trend or profitability of industry. Can Industry vetran highlight reasons behind these and suggest few points to look in existing centers to see it is profitable in coming years.

Thanks

[nannyde]

Why there are so many foreclosure in Day Cares in GA? I am new member and interested in potentially getting in to Day Care business by purchasing one of the existing centers, but these foreclosures scares me a little bit about trend or profitability of industry. Can Industry vetran highlight reasons behind these and suggest few points to look in existing centers to see it is profitable in coming years.

Thanks

Free goverment preschool.

[pmpnbs]

Still why so many Day cares failed as a business in GA

Thanks for your response to my earlier question. I understand availability of state govt. scholarship ( PreK) will help some centers who have GA Prek Classes.

Why still so many Day Care failed and went to foreclosure/short sale as a business.

I am trying to understand reasons, since I want to purchase a Day Care Facility in North Metro Area and looking at so many foreclosures/ closed centers.

[coolconfidentme]

Ask someone who had one. You need to do detective work in your area to find out.

[Heidi]

My guess?

They were big centers run by a corporation or entity that was in it for the money only, and because they provided sub-par care, enrollment eventually declined, or they got sited so often, they were shut down.

If you are considering a child-care center with the idea of it being a big money maker, you'd be better off buying a mall fast-food franchise.

If, on the other hand, you have a ton of experience in childcare or similar, and really want to serve children and their families, AND you know how to work up a business plan and design a program, THEN you'll probably make a living wage.

[Blackcat31]

From my understanding the "education" requirements of the provider (as well as other changing regulations) is making it so that no one wants to continue working in a field where the pay is low, the hours are long and the benefits are non-existent.

Let's not even get into how difficult it can be to manage grown adults within the field and often times that part of the job is what surprises providers the most.

Dealing with whiney, entitled, irresponsible children is one thing but when it is the adults acting that way it's a whole 'nother ballgame and one, not too many college educated folks want to play.

College educated providers can seek employment elsewhere for less hours, better pay and ALOT more respect and appreciation.

[Unregistered]

Ga has taken "Quality" Child Care too far and has pushed most long term Owners out. Private Business Owners can no longer have PRIVATE childcare centers with a community focus, it is all about national statistics, now. The State micro-managing is overbearing, all centers have to be the same or are bullied relentlessly.

All legal childcare in Georgia is now Standardized Government Education, not Childcare. The state took the joy out of this career. The State made this career unprofitable. The State made it just like Public School.

[Heidi]

Ga has taken "Quality" Child Care too far and has pushed most long term Owners out. Private Business Owners can no longer have PRIVATE childcare centers with a community focus, it is all about national statistics, now. The State micro-managing is overbearing, all centers have to be the same or are bullied relentlessly.

All legal childcare in Georgia is now Standardized Government Education, not Childcare. The state took the joy out of this career. The State made this career unprofitable. The State made it just like Public School.

Standardization:

Great for hamburgers. If you go to any McDonald's in the country, you'll get the same Big Mac. Not so great for children.

[pmpnbs]

Is it a good idea and business to buy a day care center in GA

thanks so much for the input.

With all these issues and potential problems still does it make a good business sense to buy and operate an existing operational center at potentially lower price ( mainly because of real estate foreclosure/short sale) and operate it as a good clean day care business in GA in Metro Atlanta area.

Owner will not have any child care background (have significant higher education/university background) but will keep/hire center director and other education staff as needed to operate center efficiently.

[LK5kids]

Interesting.....tons of private centers have popped up on the north side of the smal city I live near ( pop 60,00). Seems to be $$$$$ in it here. My family child care is in another area. I don't live at my FCC.

[Familycare71]

Standardization:

Great for hamburgers. If you go to any McDonald's in the country, you'll get the same Big Mac. Not so great for children.

[NVEKnight]

Buying a Daycare

I have been a daycare owner for years and have own 3, and I have had to shut down one. It has become very hard to pay the bills on a daycare let alone turn a profit. States that are highly regulated are putting private owners out of business. Ratios and higher education requirements mean higher payrolls. Payroll is the quickest way to sink a business. When you look at what you can charge and realistically look at how much your overhead will be it is hard to make it work any longer.
I find that most people grossly underestimate how much the overhead for a daycare will be. For example, I charge an average of 120 a week (my full time rate is $149, but part timers take your average down, so don't base income on your prices). I am licensed for 130 children, but after part time spots I average about 110. I do take in about $56,000 during the school year and $47,000 in the summer. Here's the kicker, my overhead runs about $50,000 a month. Sounds good, but I am my own director, so if you are not qualified, subtract paying someone and remember you need to put up about $5000 a month for off season months. When all is said and done, my daycare took in almost $650,000 last year and did not turn a profit.
Daycare is a labor of love. You have to love what you do and you MUST know the industry or you won't make it. I acquired 2 of my daycare because people who didn't know the industry thought it would be fun and easy to own one. Within 2 years both were bankrupt and I was able to buy them dirt cheap and turn them around. I only profit about $1500 a month each. If you have never owned a business I can tell you that the work and stress that goes into being an owner is not worth $1500 a month unless you love what you do.