Can I own a daycare without working in it every day?
You can, but only if the centre can pay for someone to do the owner’s daily work. Many centres run because the seller covers the floor, the office and the parent calls without a wage. Decide which role you will take, then check that the books still hold up once a director or supervisor is paid to fill it.
Many people picture owning a daycare as a managing job: someone else cares for the children and you run the business. That can work, but it is a choice about who does which job, not a default. Before you buy, decide whether you will be on the floor, in the office or mostly away, and test whether the centre’s numbers still make sense under that choice.
Ask what the seller really does all week
Ask the seller for an honest timetable. Who opens, who closes, who covers a sick educator, who answers parents, who does payroll and the staff schedule? Owners often fill gaps on the floor and in the office without recording it as a wage. Those hours flatter the books, because the centre looks cheaper to run than it will be once you pay someone to do the same work.
Hands-on owner or hired director
A hands-on owner saves a salary but carries long days and the risk that the centre depends on one person. A hired director frees your time but costs real money every month, and the centre needs someone you trust in that seat. Some owners start hands-on to learn the routines, then hand over once a director is proven.
Budget for the person who replaces the seller
Ask your accountant to rebuild the centre’s results with a fair wage for every job the seller now does for free. Ask whether the centre still covers its costs and your financing on those figures, and whether it depends on you working unpaid. Also ask how the seller’s relationships with parents and staff will carry over, since staff may not stay if the owner they know leaves.
Questions to settle before you commit
- Who holds the supervisory or director role today, and will they stay?
- Which seller tasks are unpaid, and what would each cost to replace?
- What does the regulator require of whoever runs the centre day to day?
- How many hours a week do you honestly want to spend there?
For the wider checklist, see what to check before buying a daycare.
Related reading
10 pages on the same subject, grouped by topic.
Buying
- Expert answerWhat should a daycare buyer check in the premises lease?
- Expert answerHow does buying an existing daycare compare with opening a new one?
- Expert answerWill daycare staff stay after I buy the centre?
- Expert answerShould you buy a daycare franchise or an independent centre?
- Expert answerDo I need a lawyer to buy a business?
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 03Business Development Bank of CanadaGovernmentHow to reduce employee turnover
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