Many entrepreneurs in the child care industry are currently asking themselves the same question: which strategic direction is the best fit for my organization?
Child care is in a period of change. The discussion about the future design of the financing system and the possible introduction of a SGEB status are causing entrepreneurs to take another look at their strategy. Where growth and expansion were taken for granted for years, we now see many organizations redefining their position.
During conversations with entrepreneurs, we find that many are in need of more clarity about the future of the industry. This is understandable. At the same time, we see buyers, investors and entrepreneurs already making strategic choices today based on different future scenarios.
This does not mean that every entrepreneur should sell immediately. In fact, for some organizations, continuing to grow or remaining independent may be the best choice. The most important question, however, is whether the chosen course is still in line with developments in the market.
What will your organization look like in the future?
Entrepreneurs who decide to proceed independently would be wise to calculate various scenarios. Consider questions such as:
- What does a change in regulations mean for profitability?
- What investments are needed to enable future growth?
- How dependent is the organization on the entrepreneur himself?
- What risks and opportunities arise under different future scenarios?
Answering these questions in a timely manner provides a better picture of the organization's future viability.
A successful sale starts with good preparation
Entrepreneurs considering a sale also benefit from good preparation. A sales process often takes longer than expected. Moreover, the value of an organization is not determined at the time of sale, but by the choices made in the years before.
We regularly see entrepreneurs only start thinking about their exit when they actually already want to quit. As a result, they lack the time to make improvements that will make the organization more attractive to potential buyers.
Don't wait for complete certainty
The key lesson? Don't wait for complete certainty. That rarely exists. Make sure you understand the consequences of different scenarios and, based on that, determine which strategic route best suits your organization.
Whether that's grow, consolidate or sell: a reasoned strategy ultimately delivers more value than decisions delayed until all uncertainty is gone.
Where will your organization be in five years?
Especially in a sector that may be facing major changes, it is important to regularly reflect on the question: where do I want my organization to be in five years?
The answer to that question is often the starting point for the right strategic choices today.
