Top 10 Ways to Increase the Value of Your School

Whether you have an imminent exit planned, are adding locations, or simply want to ensure your childcare company’s profitability for the future, HINGE Advisors has determined ten full-proof strategies to help set your school apart from the competition and allow you to sell your childcare business for maximum value when the time is right. 

1. Work Your Way Out of a Job. 
It’s important for your childcare business to be able to thrive without you. And there is no better time than now to start training your staff and handing over the knowledge necessary for your business to run efficiently when you’re not there. 

2. Automate Your Enrollment & Hiring. 
Automating your enrollment and hiring systems will make your life much easier as you prepare to sell your school. Consistently update your hiring ads and employ a CRM system to build your enrollment. 

3. Utilize Up-to-Date Platforms. 
Now is a good time to review your platforms and make sure you’re utilizing all of their current features as well as researching what other platforms could work better for you. 

4. Remodel. Rebrand. Refresh. 
Investing in your facility now will not only allow you to get the work completed within a budget but will save you time later during the selling process. Start small with landscaping, new paint, and signage updates then move to larger projects like flooring, HVAC systems and the roof. 

5. Remove Unnecessary Discounts. 
Monitor your discounts and see which ones you can eliminate now. Free/vacation days and multiple child discounts are no longer common in the childcare industry. Simple eliminations like these can drastically improve your revenue. 

6. Increase Tuition Rates Annually. 
You should increase your tuition rates 5-8% every year. If you have fallen behind in charging the true cost of child care, consider grandfathering current families at a reasonable rate of increase and starting new enrollments at a higher rate. 

7. Add Serious (and Thoughtful) Sizzle. 
How can you make your center stand out from the competition? Anything from an outdoor classroom to foreign language immersion to mindfulness can add a little sizzle to your school. 

8. Be 80-90% Full to Capacity. 
The higher your enrollment, the higher your cash flow (especially if you’ve eliminated most of your discounts). Stay on your enrollment building to make sure you are always above 80% capacity. 

9. Expand Your Facility. 
If you own your real estate and have room to grow, invest in your business by expanding your facility to increase your revenue potential. Facility expansion can mean more opportunity for curriculum offerings as well as service offerings like an afterschool program. 

10. Increase Your Licensed Capacity. 
Increasing your licensed capacity by even 2-3 children can be well worth the investment. While this may take time to plan with licensing and often involves a bit of construction, the end value could provide great potential opportunity. 

If you want more growth strategies for your preschool or are interested in receiving a valuation of your childcare business, please contact our Business Development Specialst Kathe Petchel at kpetchel@hingeadvisors.com.

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Childcare Business Sold in Northern Indiana

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How to Determine the Value of a Childcare Business