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Odd Lots

The Economics of Building a Childcare Business

Nov 6, 2023
46:49
Snipd AI
Matt Bateman, member of the founding team at Higher Ground Education, discusses the challenges and opportunities in building a childcare business. Topics include the cost and scalability of childcare, changing regulations and subsidies, insurance for preschools, private equity's interest in the industry, rising costs of childcare, and expanding capacity in the sector.
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Podcast summary created with Snipd AI

Quick takeaways

  • The childcare industry in the US is mainly composed of mom-and-pop establishments with limited margins, making it challenging to expand capacity and attract talent.
  • Preschool education involves significant costs, with pricing competition and limited public funding, making it difficult to provide affordable and high-quality education.

Deep dives

The Challenges of Early Childhood Education

Early childhood education faces challenges in terms of cost, labor, and business models. The industry is mainly made up of mom-and-pop establishments with limited margins. Expanding capacity is difficult due to regulatory requirements and the labor-intensive nature of the work. The status and perception of the field also contribute to the difficulties in attracting and retaining talent. Ensuring that early childhood education is of high quality is crucial but presents its own set of challenges.

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