I have been looking for commercial property to start my own center for months now. I finally found the perfect place in an awesome central location in my moderately-sized city. But the financial end is stressing me out!-- it is $3500/mo. for 3500 sq. ft. which is a great price here for the location. I have enough $ (a loan) to open my doors, down posits etc. But what makes me nervous is that my "break even" point is about 30 FT kids 5 days a week. My heart is in this so I don't care if if I don't make a dime off of it the first year or two. But $3500/mo. plus costs every month adds up quick!!! Am I getting in way over my head?? How long should I expect to meet my break even point?? It will fit 60+ kids by state regs.
Nervous-- NeedHonest Advice:-)
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I wish I had an answer but this business is never a "for sure" thing so it would be hard to say this is a risk or that it isnt.
I also don't know the supply and demand ratios for your area.
Regardless, i am jealous and wish you well!
My dream is to own a center so it sounds fabulous!
Keep us posted on your progress!!Last edited by Blackcat31; 12-13-2013, 06:18 PM.- Flag
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I have been looking for commercial property to start my own center for months now. I finally found the perfect place in an awesome central location in my moderately-sized city. But the financial end is stressing me out!-- it is $3500/mo. for 3500 sq. ft. which is a great price here for the location. I have enough $ (a loan) to open my doors, down posits etc. But what makes me nervous is that my "break even" point is about 30 FT kids 5 days a week. My heart is in this so I don't care if if I don't make a dime off of it the first year or two. But $3500/mo. plus costs every month adds up quick!!! Am I getting in way over my head?? How long should I expect to meet my break even point?? It will fit 60+ kids by state regs.
I have no idea what is involved in running a center. I am wondering though if you would be allowed to rent out the space evenings and weekends for meetings or kids' birthday parties and if that would help with revenue?- Flag
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My home provider friend used to own two centers. She told us that it is better to find a church that has property that you could put a center in because they are tax exempt and will rent you space for less. She said a commercial center raises rent and if you are only allowed to have X number of children then you either have to charge more or you are stuck.
It sounds like if you can break even with 30 and can take 60 you should be okay though.
Good luck!
Laurel- Flag
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