Now more than ever it is crucial that you strive to differentiate your childcare centre from others in the industry. When considering the potential sale of your property, it is essential that you focus upon accentuating and creating selling points that distinguish your centre above all others.

 

Increased competition

After the global financial crisis in 2011, investors were lured by the historically higher profit margins and longer-term tenancy agreements of the childcare property industry. The appeal of these potentially profitable properties led to what may be described as an investment frenzy. Between 2011 and 2017, the number of childcare centres across Australia has increased by over 16%. Meanwhile, the number of children under the age of 5 only increased by around 3% in the same period.

As a result, there are simply not enough children to fill all of Australia’s childcare centres. This increased supply, and drop in demand, has transformed the childcare industry into on which is more competitive, ground-breaking, and dynamic than ever.

Due to this oversupply, and the consequent competition, is absolutely essential that you ensure your centre stands out from the rest when you consider selling.

 

Market and branding

When selling your centre, it is important that you consider the effectiveness of the facade you present to potential clients, investors, and the world at large. First impressions truly do matter – so why not ensure that you present the best version of your childcare centre possible?

Investment in quality marketing and branding campaigns can breathe life and personality into a dated centre. Whether you require a website revamp, a logo redesign, a more effective means of letting the public know what you’ve got, or an entirely new approach to presentation promotion- the quality of your centre’s marketing and branding could be the factor that seals the best sale.

 

Improving and maintaining occupancy levels

For obvious reasons, improving and maintaining the occupancy levels at your centre will only serve to improve your eventual sale price. From an investor’s perspective, a child care centre with high occupancy rates will offer a more profitable investment, as it is indicative of a desirable, maintained environment, and promises better long-term revenue. Invest in the quality of your centre’s equipment, repairs and staff, as well as making your centre more visually appealing and exciting. In such a competitive market, investors are bound to be more interested in a centre that parents and children love to be apart of. This promises long term success and revenue, in a market which is somewhat tumultuous. Leaving this impression upon investors guarantees you a higher profit margin in the ultimate sale of your centre.

Parent relations re referrals

In the childcare industry, your reputation precedes you. Word of mouth is one of the most powerful methods of spreading awareness about your centre. Consistent parental referrals can ensure that your centre stands out – for better or for worse. As parents are only interested in centres which are the most beneficial to the personal growth of their children. It is essential that you ensure the quality of the service and atmosphere you provide is unsurpassed by other childcare centres in your area, or on a national scale.

Purchasing a somewhat unknown or underwhelming centre is an unappealing prospect to many investors, as it means that they must work to build a reputation themselves, post-purchase.

Buying into a centre which is the buzz of the town? That is an offer most investors would love to take advantage of. Make your centre one that your clients recommend to other parents, and you increase occupancy, revenue, and ultimately the value of your property.

 

It is never a better time to ensure the efficiency, appeal, and smooth operation of your centre than when you are considering selling. At Childcare Concepts, we understand the difficulties of selling, and increasing value, in such a competitive industry. We strive to ensure our clients are able to capitalise upon these golden opportunities as much as possible.

 

Contact us today to see how we can help you maximise your sale price.

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