Before you can grow your childcare business, as the owner you must take into consideration the many challenges and benefits of expanding your business. It is not just a matter of providing additional business to a greater number of children.

You must carefully plan the expansion while weighing personal and facility capacities. Also, some market research is always helpful. Failure to do this could risk the overall success of your center.

Personal Concerns

Consider the personal impact on you and your time.  If you’re not much of a risk-taker, an expansion might cause undue stress.  Also, can the extra workload be easily incorporated into the day, will new staff be required, and are you prepared to work longer hours?

Do you struggle with delegating jobs and authority?  Also, would any additional business require new skills that would have a steep learning curve?  Answer these questions truthfully before you want to grow your childcare business.

Evaluating the Child care center

Are you ready to expand the business?  As the child care center owner, you must carefully evaluate the current financial capacity of the business.  Is the current client base holding steady or declining? A declining enrollment could indicate major problems that you should solve before there is any talk of expansion.

Market Research

Your market research must be current.  Many owners, unfortunately, rely on the information from when they opened the business.  This is a dangerous strategy because much of that information will be outdated.

Local businesses could have closed or changed shift hours, thereby changing the needs of your potential clients.  Also, the competition may have made significant changes that can have a drastic impact on the expectations of parents.   Do your market research!


Once the marketing research has been completed, you must carefully consider how growth in capacity or business could be met by the child care center.  Staffing, class sizes, and the available spacing would all need to be planned out carefully.

You must also keep in mind the state requirements that must still be met or risk losing your license.

Financial Implications

Finally, what are the financial challenges for the growth of your child care center?  Like any business, you must carefully calculate expected expenditures in terms of hiring additional staff, building additions, and implementing new programs.

Then, you must decide where to come up with the necessary money.   Does the capital already exist or would it require taking out a loan?  The bottom line? the projected income must outweigh the expected costs.

Final Words

Expanding your child care center comes with many unique challenges, but can result in a considerable increase in income.  Just make sure to carefully consider personal issues, the current financial stability of the business, marketing research, necessary facility changes, etc., against the potential rewards.

Doing so will ensure an expansion rate that is appropriate for your child care center.