What Every Child Care Owner Needs to Know About Succession Planning
This article is an Exchange Owner’s Circle column by Kathy Ligon, Founder & CEO of HINGE Early Education Advisors, providing expert insight on timely childcare business challenges and opportunities. Drawing on trends, research, and decades of industry experience, this monthly column offers practical strategies that empower owners to lead profitable, purpose-driven organizations.
When you’re in the throes of running an early education business, succession planning might be the last thing on your mind. Many owners see it as a task for the distant future or a retirement issue to solve years down the road. Whether you’re knee deep in operations, leading at a strategic level, or approaching a transition, there are two fundamental truths that should be on every owner’s radar.
First, there will come a day when you step away from your school. This can be a tough reality to acknowledge for child care leaders whose passion and profound sense of purpose brought them into the industry in the first place. As someone who shares that deep love for early education, I often joke with my own team that they are going to have to bury me out back. Exiting a business you’ve built with your heart and soul isn’t easy to think about. But it will happen, and the sooner you plan for it, the better off you and the people who rely on you will be.
Second, the most successful transitions are the result of thoughtful, strategic planning, often starting years in advance. Selling your child care business and real estate is one of the biggest opportunities and responsibilities of your career. You’ve devoted years or decades of your life, invested personal resources, and shouldered the inherent risks of ownership to serve your community. Exiting is your chance to not only realize the value of what you’ve built, but also to ensure young children, families, and teachers continue to thrive through your legacy.
Succession planning is the ultimate act of leadership. When done well, it can be a mutually beneficial win for you, your team, and the families you serve. It all starts with having an informed perspective and crafting a forward-thinking roadmap that drives alignment, opportunity, and stability. Drawing on decades of experience guiding hundreds of child care owners through successful school sales, here’s what every child care owner must understand about succession planning.