Dear Pam,

I have an in home daycare that I’m thinking about expanding. I’ve been open for a little over 2 years and during that time I have went from having just a few children to more than 25 children. We have added an addition to our home but we are still busting at the seams. If we had the space we could take care of more children but because we don’t, we have had to turn them away. We need more space but I’m not sure if I should just buy a larger home or if I should consider moving into a commercial space. Please give me your thoughts.

Signed, Out Of Space

Dear Out Of Space,

That’s not a horrible problem to have because that means that business is thriving! As far as deciding what to do about your space there are a couple of things to take into consideration. If you plan to continue to expand then you may want to consider looking at a commercial building or space. If you are content with being in a home setting and you prefer that environment then you may want to consider upgrading to a larger home. Based on the details that you have provided, my thoughts are that it’s time to move into a commercial space.

In the last 2 years you have went from providing care for 3-4 children to now over 25 children which means that your business is steady, stable and each year you are increasing at a fast pace. If you have had to turn away children then there is obviously a high demand for your services which is great. From the information that you’ve provided, it sounds like you shouldn’t have any problems filling up a larger location.

For commercial space, especially considering that you will have a day care facility, you want to look for an owner that will work with you and allow you to modify the location. As you are probably already aware, there will need to be changes made to accommodate smaller children in order for your day care to meet state licensing codes. I would first contact a commercial real estate agent and express to him your concerns about your current situation and see if he can help you locate the perfect location. My guess is that it will need to be some place where there is plenty of space for children to play and room for your business to continue to grow.

After speaking with an agent, put together a budget and plan of action to make sure that the new location will work for you financially. Once you work through all of the kinks, expect to sign a lease for at least 3-5 years. I’m sure that in your type of business location is very important so it also wouldn’t hurt to find a building where the owner may be willing to sell it to you at a later date. Whatever it is that you’re doing, keep doing it because you must be doing it right!  Good luck with your expansion. I’m certain that you’re heading in the right direction.  

To Your Success!

Pam Lawhorne

Pam Lawhorne is a business strategist and marketing consultant with over a decade of experience in small business development, sales, marketing and management.

She empowers individuals with the skills that are necessary to successfully launch, expand or increase sales for their business.

For more information on starting your own business please order her new book “From Minimum Wage To Getting Paid - How To Become A Successful Entrepreneur With No Money, No Education Or No Experience!”

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