The financial performance of child care businesses is often “assumed-to-be” far less than businesses in other categories. Although operating a child care business does have it challenges, the growth of child care businesses and annual sales outpaced many other business categories in the U. S. in recent years. According to a June 2014 report by Sageworks, a financial information company, despite the recession, sales (gross revenues) for child care businesses grew by 6% – 7% annually between 2008 and 2012. For the twelve months period from June 2013 – June 2014 sales for child care businesses grew nearly 9%.
The increase in gross revenues is good, but profits are most important. During 2010 – 2011 average net profit margins for child care business were less than the average for all business industries. However, for the period of June 2013 – June 2014 child care business net profits rebounded to 8%. Libby Bierman, a Sageworks analyst, described the child care industry as having somewhat consistent sales growth and healthy net profit margins.
Sageworks is a Raleigh, NC based financial information company.