"Unviable" Ex-ABC CentreProfitable within eight weeks
Terese Bretag, Director of Topsy Turvy Child Care in Murray Bridge South Australia bought an 'unviable' ex-ABC Learning Centre and turned it into a profitable business within eight weeks.
Terese took ownership of her new centre in May 2009 and had not owned a child care service prior to that. This is her story:
What is your professional background?
I started as a relief worker at the Community Child Care Centre in Murray Bridge in 2001, when my first child was almost one.
I worked in relief across all age groups and then started as a special needs support staff member in the 3-5 age group. I worked in this position until mid 2003 when my twins were born. When the twins were around 10 months old I returned to work part time.
I then became fully qualified and was offered a position in a brand new purpose built centre in Murray Bridge. I started as team leader in the nursery then eight weeks later moved to the kindergarten room and was promoted to the position of assistant director.
After 18 months as assistant director I was offered the director's position. At this time occupancy was 27 per cent in a 105 place centre. I remained in this role to see the centre grow to 90 per cent occupancy with 22 staff.
What prompted your decision to buy an 'unviable' ABC centre?
In early 2009, the ABC2 group of centres were open for registrations of interest. These centres were deemed unviable by the receiver and were the first lot to be sold off.
I originally registered so I could keep my finger on the pulse of what was happening in the area. Being the director of another local centre, I was interested in being involved in what was about to unfold and was curious about who would buy the centre. I never thought I would be me!
After the receiver wrote to advise me I was the successful candidate
I had to present mountains of evidence regarding how I would run the centre, how it would be staffed, how it would be financed, if I would be a part of it etc.
The receivers wanted assurance that whoever took over these centres would be successful. I started collating the necessary information and got really inspired and motivated into building this venture.
Had you been looking to buy a centre prior to this?
Yes. I had approached my previous employer about buying that centre, but they declined.
In your opinion what caused the collapse of the ABC centres?
There were too many centres. I believe it is impossible to maintain a personal interest in so many centres and staff. I like to know who works for me and what is happening daily both in my centre and my local community. There is more accountability when you are personally involved.
What changes did you make?
We changed the name to "Topsy Turvy", and of course all the associated signage. We also painted the interior bright funky colours.
Being a near new purpose built centre it was basically ready to go, we just had to put our personality into it.
We chose not to keep existing staff, as we were not in a financial position to take on entitlements etc but we made sure they knew they were welcome to apply for available positions.
Our settlement was Friday May 15 2009, and we advertised an open week between 18 May and 22 May giving families the opportunity to visit us, have a look at the centre, meet staff and enroll if they chose to do so.
We enrolled 39 families in that week. We also did a promotional radio campaign with our local station for our first two weeks of operation.
Did you retain many of the families using the centre?
We had no families on the books on the first day of our open week. This was because enrolled families did not know if the centre was staying open beyond June 09 and most had moved to other centres in the area or made other child care arrangements.
As I was director of another centre at the time, I could not disclose that I was actually the buyer of the ABC centre without compromising my current employer and myself until my purchase of the service was announced by the receiver nationally.
How is your centre doing now?
We are running at 90 per cent!!! I cannot take any more children aged above 15 months until June this year. I have 14 full time staff and two trainees.
How quickly did you turn the centre around?
It took eight weeks for us to be running without needing to use our overdraft money.
Why is your service succeeding while the ABC centre failed?
This centre was relatively new (under two years) when ABC folded, but there was a lot of rumour and uncertainty for a long time prior to this and I think that families did not want to commit to taking a spot in a centre that was not guaranteed.
Also because the ABC head office was interstate, the local staff were excluded from the decision making process and had little or no freedom to operate as individual centres.
I like to be involved in my community, I live here, work here and my children attend school here, so I take an active role in being involved in committees that affect the community, as well as sponsoring local sporting associations and shopping with local suppliers before anyone else.
What lessons did you learn going through this process?
I learnt to draw the line with friendships. It was interesting how many people had an expectation that I would employ them just because I knew them.
But on the other hand, the loyalty of the families I have been a part of over the years was overwhelming. A lot of families followed me across to my new venture without question and with full faith in me and my staff.
It was a real eye opener to see that I do have the respect of the community that I work so hard for.
I also learnt that things just don't happen, you have to believe in your own abilities and make things happen.
What would you do differently if you went through this process again?
I would have had more time than a week in between settlement and reopening to organise everything.
I was inundated with enrolments, staff applications, parents, suppliers, licensing etc. I really did not think it would be that busy so quickly. I thought I had a lot of time to settle in and I didn't get that time.
Did you purchase one of the 'unviable' ABC2 centres? If so drop us a line at editor@careforkids.com.au we'd love to hear your story.
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