How to Grow Your Daycare or Childcare Business
Growing an early childhood education (ECE) business is one of the most rewarding and strategic steps an owner can take, but there’s not a one-size-fits-all approach to expansion. There are four main ways to grow your childcare business: maximize your current center, buy another center, build a new one, or bring on an investor. Here’s how each one works.
1. Expand Your Current Center
Increase enrollment: Aim to reach 90%+ of your licensed capacity, which is where early learning centers not only cover costs but also maximize profit.
Add or expand age groups: Introducing an infant room or pre-K classroom can increase lifetime customer value and diversify your enrollment pipeline.
Repurpose or expand your facility: If you have a consistent waitlist, consider reconfiguring underutilized space or expanding your footprint with added classrooms.
Partner with local employers: Corporate care contracts, shared staffing models, or on-site care solutions offer recurring revenue with low marketing costs.
Launch new programs: After-school, summer camp, digital, or enrichment options (e.g., STEM, art, language) can boost both revenue and retention.
Improve the customer experience: Deliver high-quality care, keep parents informed, collect feedback to improve services and retention, and offer discounts or perks for family referrals.
Market your business: Build a strong website with programs, pricing, and testimonials. Stay active on social media and consider running targeted advertisements. Share your wins and get involved locally.
2. Acquire an Existing Center
Buy an existing daycare center: Buying an existing early education center is one of the fastest and most strategic ways to grow, giving you immediate access to an established operation.
Understand valuation metrics: Purchasing a school means you’re buying a cash-flowing asset. Price is based on EBITDA and adjusted financials, not just real estate or square footage. HINGE Advisors performs in-depth valuations to ensure early education owners buy or sell smart.
Step into a running school: Acquisitions often reduce risk compared to starting from scratch. You inherit existing staff, enrolled families, and reliable cash flow from day one.
Focus on culture and communication: Culture, staff stability, and parent communication are critical. A smooth transition protects enrollment, boosts morale, and helps secure your investment.
3. Build a New School
Brownfield development: Renovating an existing structure (church, retail space, office) can be cost-effective but comes with licensing and layout constraints.
Greenfield development: Starting from raw land gives total design control, allowing you to build a purpose-built facility, but at a higher capital cost.
Model your tuition to support your build: Rent or mortgage will be one of your largest costs. Make sure tuition rates and anticipated enrollment can cover your monthly expenses and generate a strong margin.
4. Partner with an Investor
Bringing on a capital investment partner is another powerful avenue for growth, especially for owners who want to scale, maintain control, and stay active in the day-to-day business.
Accelerate your growth with strategic capital: The right partner can fund expansion, program enhancements, or facility investments, giving you the financial runway to grow your brand while staying focused on your mission.
Get investor-ready with expert support: HINGE Advisors helps early education owners attract the right capital partner by preparing compelling offering materials, identifying key areas for value creation, and guiding negotiations at every stage.
Find a partner who shares your vision: Our network includes investment groups and private equity firms that understand early education. We help you connect with partners who are aligned with your values and bring both capital and strategic insight to the table.
Choose the Growth Strategy That Matches Your Goals:
No two early education operators are the same. Choosing the right path means weighing your appetite for risk, access to capital, staffing strategy, and long-term vision.
Best for stability: Organic growth
Best for speed: Acquisition
Best for control or branding: Development
Contact HINGE Advisors to Grow Your Childcare Business
Learn more about how to grow your daycare business with HINGE Advisors. We have helped hundreds of ECE owners grow, whether through expanding their current center, buying another, building from scratch, or bringing on an investor.
With over 600 buyer relationships and 300+ years of combined childcare experience, we know what works and how to make it happen. Contact us online, call (864) 664-3877, or email info@hingeadvisors.com to get started.