Childcare facilities are one of the fastest growing industries in the U.S. If you are thinking of breaking ground in a childcare business, you must decide between starting your own facility or buying a franchise. If you opt for franchising, you are backed by the franchisor along the way. Yet, you must prove your background experience in the field and financial capacities. If you are an entrepreneur seeking to work with children, here are five factors to consider before starting a childcare franchise.
Your Values And Beliefs
Before you research different franchise option, outline your beliefs. Out of different franchise options, the childcare facility requires the most monitoring and adherence to policies. Each franchise will have different policies and priorities. Some may not care about your background experience and are ready to give a franchise to anyone with money. On the other hand, there are franchisors who would invest their time in learning about your goals and getting to know you thoroughly before handing the ownership. If you believe in making a positive change in your community through childcare facility, ensure you choose a brand which helps you fulfill that.
Buying a franchise can be expensive. However, you can still learn how to become a millionaire as a franchisee. A childcare franchise can initially cost you anywhere between $60,000 to $3,000,000. Your decision of choosing a franchise brand would also depend on your financial standing. Most franchise owners will work with you to secure your finances. They may help in getting you a Small Business Administration loan through banks. Along with practical help, the franchisor will guide you through the stressful financing period through advice, literature, training, etc. Childcare franchises owners who really care about their franchisors will make themselves available for you anytime you need assistance.
The right franchise brands will stay by your side while selecting the perfect location for you. They will help select the location, assist through the construction process, and negotiate prices on your behalf. Many even offer brilliant franchise ideas for small towns so you can profit anywhere. Moreover, some franchisor will provide you with a demographic description of the location. It will have details such as the area’s population, number of children falling within 1-5 age group, average family income, etc. With the franchisor’s help you can also determine the level of competition in your area. With established brands, you receive immense support. It will not be too difficult for you to open additional locations while working with a well-known childcare franchise.
Advice From Franchisees
Established franchisees in your field will provide the most relevant information for your new venture. Ask them the right questions and they will tell you not just the advantages but also the shortcomings of the franchise option you wish to pursue. You will be making a huge financial decision by buying the franchise so getting to know it thoroughly is an important step in the process. Franchisees who have been in the field for some time now will know the hardships you are facing as a newcomer. If they permit, you can shadow a franchise manager for a few days. Learn as much about the brand before you make your decision.
Training And Marketing
Although training and marketing happens after you make the decision of buying the childcare facility, you must at least learn the franchisor’s policies on these subjects. Get to know what kind of training the franchisor is willing to give. They provide training for hiring new employees, managing a business, running it profitably, etc. The top franchises also offer tips for great customer service training. This is one of the advantages of opening a franchise instead of your own start-up. There are licensed professionals willing to work the way with you. Additionally, franchisors will help you with marketing as soon as you pick a location. Based on demographics, they will assist in structuring the right marketing strategies.
Purchasing a franchise is an important financial decision. Before you make one, scour the various options in childcare business. Choose a brand that best aligns with your belief system. Consider your financial options. The franchise owner will work with you to secure an SBA loan. They will also help you pick the right location based on demographic details. Before you give them your final word, talk extensively with some existing franchisees in your brand of choice. They will reveal minor, but important details you will not find on brand website. Finally, compare different brands based on their investment in training and marketing for your location.