Overview

Child care feasibility studies provide information critical to evaluating the potential of a new child care center, based on a complete review of the market dynamics, services, customers, competition, and pricing. This information can be used to determine if a child care center is feasible, and if so, what type of center to build, services to offer, and pricing levels.

Since no two child care centers are the same, Perspectives Consulting Group, Inc. focuses on identifying and providing relevant information for each center using a customized research process. Our research process includes telephone interviews, contacting various city and state agencies, and researching the child care industry as a whole. Once the information is obtained, Perspectives Consulting Group, Inc. analyzes the information and provides direction for making effective and efficient decisions.

Child Care Feasibility Studies

Although each child care center under consideration is unique, generally, child care feasibility studies profile five areas:

• Market Dynamics - General information on the child care market
• Services - What type of child care services are being sought out
• Customers - Who currently purchases child care services
• Competition - Who provides the current child care services offered
• Pricing - What pricing levels are there for child care services

Often, the most productive information is found by talking directly to customers and competitors in the market. Customized surveying and interviewing of customers and competitors provides enhanced information to meet the needs of the client. Perspectives Consulting Group, Inc. also uses information sources such as trade periodicals, databases, government statistics, news publications, and industry association reports to uncover basic information about the child care industry.

Child Care Feasibility Study Outline

The following outline lists information provided in a typical child care feasibility study:

Market Dynamics

• Overall market size
• Market activity - growth/decline/stagnant
• Information about industry changes in your state  

Services

• Types and usage of services
• Key attributes such as transportation, technology, special needs offerings, etc.
• Interest in potential new services
• Ranked importance of key attributes

Customers

• Satisfaction with current child care services
• Current spending on child care services
• Willingness to switch child care services
• Demographic information - age, income, ethnic background, etc. 

Competition

• Primary competitors - number, names
• Types of services provided
• Number of children and openings

Pricing

• Customer price sensitivity
• Price levels and structures for current services