They both had passion. They both had experience. And they both put everything on the line—savings, loans, sweat equity—to create a space where children would learn, play, and grow.
But here’s what happened:
One center flourished. It had a waiting list within six months, parents raved about it, and the owner had to expand to keep up with demand.
The other center struggled from the start. Enrollment trickled in painfully slow, expenses mounted, and despite relentless marketing, the rooms remained half-empty. Within two years, it shut down, leaving the owner drowning in debt.
The difference?
LOCATION.
The Fatal Mistake Most Childcare Owners Make
It’s easy to believe that running a successful childcare business is all about providing excellent care, hiring great teachers, and having a warm and inviting space. And don’t get me wrong—those things do matter.
But here’s the harsh truth: None of it matters if your location is wrong.
Most childcare entrepreneurs focus on the wrong things when choosing a site. They fall in love with a building that looks perfect or pick a location that’s close to home. Some find a spot that seems affordable and convenient.
But they never stop to ask the one question that determines whether they will sink or swim:
Is there enough demand in this location to support a successful childcare business?
And that’s where so many people fail.
The Tale of Two Childcare Centers
Let’s go back to our two childcare owners.
The first, Divya, did her homework. Before signing a lease, she dug into the data. She researched how many young families lived in the area, studied income levels, and analyzed childcare supply vs. demand.
She discovered a growing suburban neighborhood with an influx of young families, limited daycare options, and a median household income that supported her pricing model.
She secured a space right where parents needed it the most.
Within months, her enrollment skyrocketed, and her business became the go-to childcare center in the area.
Now, let’s talk about Mark.
Mark followed his gut. He chose a location based on what felt right—an attractive building near a business district.
But he missed one crucial detail.
The families who worked in that district didn’t live nearby. Most commuted from miles away, and by the time they left work, they preferred to pick up their kids closer to home—not near the office.
To make matters worse, the area already had multiple established childcare centers, all fighting for the same limited pool of parents.
Mark’s dream slowly crumbled. Despite spending thousands on marketing and offering discounts, his enrollment never reached sustainable levels.
In the end, it wasn’t about effort or passion. It was about demand.
The Brutal Reality of Childcare Business Failure
Here’s a fact most people don’t want to hear:
Most childcare businesses that fail don’t fail because of bad service. They fail because they were doomed from the start.
The truth is, no amount of great teachers, fancy playgrounds, or stellar marketing can save you if there aren’t enough parents in your area who need childcare—and can afford your rates.
And yet, every year, entrepreneurs pour their life savings into locations that were never going to work.
It’s heartbreaking. But it’s also avoidable.
The Hidden Science of Picking a Winning Childcare Location
Successful childcare owners don’t gamble on location.
They use data.
Before signing a lease or purchasing a property, they ask questions like:
- How many children under five live in a five-mile radius?
- What percentage of parents in this area work full-time?
- How many competing childcare centers exist nearby?
- What’s the median household income, and does it align with my pricing?
- Is the local population growing, or is it shrinking?
These factors separate the winners from the ones who struggle to fill seats.
And if you don’t know how to analyze them, you’re rolling the dice on your future.
Why Most Childcare Owners Get This Wrong
Here’s what I see over and over again:
People assume any location can work if they just market hard enough.
Wrong.
You cannot out-market a bad location. If demand isn’t there, no amount of Facebook ads, flyers, or discounts will magically create it.
Then there’s the “convenience trap.”
Many owners choose a location because it’s close to their home—not because it’s where parents actually need childcare.
Your convenience doesn’t matter. What matters is where families are actively searching for care.
And finally, there’s the “too good to be true” deal.
Some landlords offer cheap rent in struggling areas, and it’s tempting. But ask yourself—why is it cheap? If parents aren’t moving there, working there, or looking for childcare there, then it doesn’t matter how affordable it is.
A bad deal in a bad location is still a bad deal.
Find the Best Location for Your Childcare Center
Choosing the right location is a key step in setting your childcare center up for success. A well-placed center naturally attracts families, making it easier to grow and thrive.
That’s why we created the Location Secrets Course—a step-by-step guide designed to help you confidently select a site that supports long-term success.
Inside, you’ll learn how to:
- Identify high-demand areas for childcare
- Use free tools to evaluate potential locations
- Avoid common pitfalls when choosing a site
- Plan for future growth with smart location strategies
A great location creates a strong foundation for your childcare business. Let’s make sure you get it right!
Click here to access the Location Secrets Course today.
For more expert insights on building a successful childcare business, visit LineLeader—your go-to resource for childcare marketing, enrollment, and operations.
