Buying a daycare center can be a daunting enterprise. Besides having a love for children, you must have money to invest it, whether that funding comes from grants or from your own pockets. You must be in reasonably good health, and much business sense. You must know the bylaws that involve the operation of daycare facilities in your state, and you must know how to treat your parents, who are your customers. Furthermore, the state can shut you down if you cannot afford the funds to comply with their strict laws.
Take a look at your criminal history. In most states, in the presence of one felony, especially one involving children, the laws will not permit you to work with children at all.
Read up on all state and federal laws governing the operation of daycare centers. This is so that you can compare the laws to the building you wish to buy. If they are not up to code, prepare to spend a significant amount of money towards bringing the building into a licensable state.
Look at the indoor/outdoor space. According to Liifund.org, the Community standard is 35 square feet of indoor space per kid and 75 square feet per child outdoors. Keeping in mind that these are California figures, the minimum amount of legal square footage can be even greater.
Consult a business advisor and/or attorney. As Liifund.com points out, it is important to enlist the help of a professional to help you to review all legal and historical documentation pertaining to the site. Have state inspectors written that particular facility up for safety violations? Prepare to ask the difficult questions.
Contact an appraiser. As Liifund.com says, a professional will help you determine if the asking price for the facility is reasonable. An appraiser can give you such information as if the property has appreciated or depreciated, and if the rent or mortgage on it is more or less than the building is worth.
Decide how you wish to fund your daycare. Be realistic in answering whether you can afford the out-of pocket expense, or if you may need government assistance. According to the United States Small Business Administration, making yourself a not-for-profit can actually alleviate the pain of the expenses involved in buying and operating of a day care. Indeed, declaring tax-exempt status can make it much easier to apply for grants.
According to the United States Small Business Administration, declaring yourself a not-for-profit can actually alleviate the pain of the expenses involved in buying and operating of a day care. Declaring tax-exempt status can make it much easier to apply for grants.