Everyone Wants to Buy a Daycare. Few Are Ready to Run One.
Earlier this year, I helped a family sell their daycare in British Columbia. The business was rock solid. Fully licensed, well-run, and genuinely loved by the community and the owners made a modest salary. The kind of small business that takes years of sweat to build.
We packaged it up, priced it fairly, and listed it.
And then the floodgates opened.
I knew demand for daycares was high, but this was next level. It felt like trying to sell a house during the peak of the COVID real estate frenzy — bidding wars, dozens of inquiries, people pulling out all the stops.
We had seasoned daycare operators and families fresh out of corporate life, all fighting for a shot.
We had to quickly change our tactics and it became a sorting process. Not everyone who wants to buy a daycare is ready to run one. And getting that match right mattered just as much as getting a good price.
Why Daycares Are So Hot Right Now
If you’re a parent, it’s not a surprise that daycares are in short supply and high demand. Across Canada, most centres run on waitlists. Parents are desperate for reliable childcare, and it’s only getting worse as our population grows and workforce participation rises.
That demand has created a gold rush of interest from buyers.
To many, daycares look like the ideal small business:
Stable revenue
Consistent demand
An essential service that’s not going away
Government subsidies that help secure payment
From the outside, it looks like a safe bet. But the majority of serious buyers weren’t investors, they were young families. Parents looking to leave their corporate 9–5s in search of something more meaningful. A place where their kids could grow up alongside their work.
That’s a beautiful motivation, but it doesn’t always line up with the reality of the business. And that’s where things get complicated.
The Reality of Running a Daycare
Through working with multiple childcare clients, one thing has become crystal clear: running a daycare is anything but easy. It might look like a cozy business from the outside with finger paints, story time, nap mats. But behind the scenes, it’s one of the most demanding small businesses you can run.
Yes, the demand is there. Yes, parents will line up. But that doesn’t mean this is a passive or easy investment. Quite the opposite.
Here’s what most people don’t see:
Regulatory Burden
Daycares are one of the most tightly regulated industries out there, and for good reason. As an owner, you’re on the hook to make sure your centre is 100% compliant at all times. That means writing and enforcing detailed policies, maintaining exact staff-to-child ratios, keeping licenses current, and passing regular inspections.
Fall out of compliance and you can be shut down overnight. No exceptions.
Staffing Headaches
Staffing is a constant challenge in this industry. Margins are tight, wages are often below what you’d want to pay, and burnout is high. It can take years to build a dependable, qualified team, and even then, turnover can blindside you.
Most owners I’ve worked with will tell you: the stress of finding and keeping great staff is the single biggest challenge they face.
Operational Load
Daycares aren’t 9-to-5. Many centres open before the workday starts and stay open well after it ends. As an owner, you’ll likely be working early mornings, late evenings, and weekends, especially if you're short-staffed or still ramping up.
It’s a hands-on, high-touch business that often leaves very little room for time off, even if you’re buying an existing operation.
Limited Scalability
Even if your daycare has a waitlist a mile long, that doesn’t mean you can grow. You’re constrained by your space, your licensing, and your staff qualifications.
Want to add an age group? That might mean expensive renovations and months of back-and-forth with licensing. Expansion is possible, but it’s slow, costly, and heavily regulated.
Who Should and Shouldn’t Buy a Daycare
With all the demand we saw, it became obvious that not everyone looking to buy a daycare actually should.
Some people were chasing a dream. Others were chasing a safe investment. But this business isn’t for everyone — and that’s okay.
If you’re considering buying a daycare, here are a few green flags and red flags to gut-check your motivations:
Green Flags
You feel called to the work. You’re passionate about early childhood education and see this as a mission, not just a moneymaker.
You’ve spent time researching different childcare models and frameworks — and already have ideas about what kind of environment you want to create.
You’re ready to be present. You plan to spend real time at the centre and be a visible leader for both your team and the families you serve.
Red Flags
You’re treating this as a hands-off investment. You think the staff will just “keep running things” while you stay in the background.
You’re mostly motivated by the idea of having a place for your own kids but haven’t thought through what that means for the rest of the business.
You’re strapped for time and know you won’t be able to be consistently available to support the team or manage the day-to-day.
Advice for Aspiring Daycare Owners
If you’re still feeling pulled toward this path, that’s a good sign. But before jumping in, make sure you’ve done your homework. This is important work, and it deserves a thoughtful, well-laid plan.
Start by asking yourself:
What kind of childcare philosophy or framework do I want to run with?
How involved do I plan to be, day-to-day?
Am I ready for the reality of licensing, staffing, and regulation?
If your own kids are part of your motivation, make sure their ages align with the daycare’s license. Adding new age groups often requires renovations, new certifications, and long timelines. It’s not as simple as just opening your doors.
Also, don’t expect this to be wildly profitable, especially early on. Most daycare owners make a modest salary and work hard for it. You’re not buying a passive income stream. You’re buying a full-time job with real responsibility.
The best advice I can give is this: go in with your eyes wide open. Ask questions. Talk to other owners. Learn the regulations inside and out. The more prepared you are, the more trust you’ll earn from staff, parents, and even the seller.
In fact, when we sold our last daycare, the buyer who won out wasn’t the one who offered the most money. It was the one who came to the table the most prepared.
Buying a daycare isn’t just a business decision. It’s a commitment to showing up for families every single day.
