Tips for Buying a Childcare Centre

The demand for quality childcare may be on the increase but doing your homework before purchase is still the key to business success.

 Here’s our Top Tips for Buying a Childcare Centre – what you need to consider before you sign on the dotted line: 

  • Location is everything! What is the demographic of the area, and who and where are your competitors?
  • Understand your staffing situation.  Do you have qualified, committed and driven staff? What is staff turnover like? Parents prefer consistency of care and happy staff means happy clients, (children and parents alike). By 2014, every childcare worker in Australia must have, as a minimum, a Certificate III in Children’s Services. Additionally 50% of the staff must have at least a TAFE childcare diploma and each centre requires a degree-qualified teacher onsite all day.
  • Licensing and Legislative Regulations. Are you able to obtain relevant licences and is the centre compliant with current legislation?
  • Enrolments. Is the centre operating at 100% capacity? Is there a waiting list?
  • Consider what services you will provide and the additional physical, logistical or financial resources required such as meals, nappies or linen. This will undoubtedly affect your charging structure or daily rates.


  • Stable lease agreement (if Leasehold). Ensure your rental terms are realistic and your cashflow can support this. How long is remaining on the lease? If the lease is short-term could you realistically afford to relocate?


  • Safety & Security. Consider whether current security is adequate or if extra locks on doors and windows are required. Additionally outside areas need to be fully fenced to ensure children remain safe and secure. Are current fire safety standards understood and met? If not, how much work will be involved to bring it up to standard?


  • Budgeting. Ensure to budget for toys and equipment, along with general fixed costs.  Consider the amount of children and daily handling and don’t underestimate the frequency of toy and equipment replacement costs. This may include electronic equipment such as smart tablets or even laptops.

If you are considering the purchase of your own childcare centre or related business and simply want some guidance on where to start we encourage you to contact us. Our aim is to ensure you come off the phone with a clear way forward, regardless of whether you require our specialist finance services. Call us on 07 3899 2866 or fill out your details below and we’ll be in touch shortly.



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