Assessing Market Viability for Preschools and Childcare Centers
Starting a preschool is an exciting venture, but it’s critical to assess the market before making any major commitments. In my recent YouTube video, I shared practical tips for evaluating both demand and growth potential to ensure your childcare center has the foundation it needs to thrive.
One key takeaway? Don’t put the cart before the horse. Falling in love with a location and then trying to justify its market can lead to an unsustainable business. Instead, start by analyzing the market itself and let the data guide your decisions.
Narrowing Down Your Demographics
Understanding the families in your target area is essential. Look at factors like:
• Average Age: What is the population’s average age? Mid-thirties to early forties is your sweet spot.
• Income levels: Can the community afford your tuition and program offerings?
A great resource for this research is LoopNet listings. These often include valuable demographic data for 1-, 2-, and 3-mile radii, giving you insight into household income, population breakdowns, and nearby developments. Plus, they can help you get to know microregions better, revealing areas where young families are most concentrated.
Why Growth Matters
Even if an area shows strong demand now, it’s crucial to assess its future potential. A market that’s stagnant or aging may struggle to sustain your business long-term. Look for indicators of growth, such as:
• Upcoming housing developments
• Local infrastructure projects
• Major business development (i.e. – new company headquarters)
An area with consistent growth ensures new families will continue to cycle into the community, keeping your preschool relevant and in demand.
By prioritizing market research, you’ll make informed decisions that set your preschool up for success—not just today, but for years to come.
Want to dive deeper? Watch the full video for more actionable tips and strategies to assess market feasibility for your childcare business!