How to Successfully Run and Grow a Childcare Centre in Victoria
Opening a childcare centre in Victoria is a significant achievement.
But long-term success is not determined by construction completion or regulatory approval. It is determined by how well your centre performs operationally, commercially and strategically over time.
In our experience at Mollard Property Group, the centres that thrive are not simply compliant – they are well-positioned, well-led and financially resilient.
Here is what truly determines whether a childcare centre succeeds long term.
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Stay Ahead of Compliance – Don’t Just Meet It
Approval under the National Quality Framework is only the starting point.
Ongoing success requires proactive compliance management across:
- Educational programs and practice
• Children’s health and safety
• Staffing arrangements
• Leadership and governance
• Physical environment
• Family and community relationships
Assessment and Rating outcomes materially impact reputation, occupancy and long-term viability. Strong internal systems, clear documentation and leadership accountability are essential – not optional.
High-performing centres treat compliance as a strategic priority, not an administrative burden.
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Build Governance That Supports Scale
Behind every sustainable service is disciplined operational structure.
This includes:
- Defined leadership roles and reporting lines
- Robust policies and procedures
- Clear financial oversight and performance tracking
- Systems for enrolments, attendance and parent communication
Centres that lack structure often struggle when occupancy fluctuates or staffing pressures increase. Governance reduces risk and enables growth.
For multi-site operators, governance maturity becomes even more critical.
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Invest in Leadership and Team Stability
Educator quality and retention directly influence centre performance.
Stable teams lead to:
- Stronger Assessment and Rating outcomes
- Better family retention
- Higher community trust
- Reduced recruitment and onboarding costs
Workforce instability is arguably the single biggest operational threat to a centre’s performance and reputation.Successful operators prioritise culture, professional development and leadership capability – not just minimum staffing compliance.
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Deliver a Distinctive Educational Offering
While all Victorian centres operate under the national Early Years Learning Framework (EYLF), the market does not reward generic positioning. Victorian services also benefit from the detailed Victorian Early Years Learning and Development Framework (VEYLDF), which helps create a curriculum that truly resonates with local families.
Families increasingly look for:
- Clear educational philosophy
- Consistent program quality
- Transparent communication about child development
- Alignment with school readiness outcomes
- Specialised programs (e.g., Bush Kinder, STEM focus, language immersion) or premium services like on-site cooks and extracurriculars.
Your program is part of your brand. Centres that articulate their value clearly attract stronger enquiry and higher retention.
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Understand Your Market and Occupancy Drivers
This is where many operators underestimate risk.
Before focusing on growth, ask:
- What is the competitive supply within a 3–5km radius?
- Are neighbouring centres operating at 70% or 95% occupancy?
- Is there pipeline development approved nearby?
- What are the demographic trends in your catchment?
- How have work-from-home trends affected local demand on certain days of the week?
Occupancy is not simply a function of “good management.” It is deeply influenced by location, visibility, access, parking, and population growth.
At Mollard Property Group, we regularly analyse competitor performance, planning pipelines and demographic data before advising on new developments or acquisitions. Many centres struggle not because of poor operations – but because of oversupply or flawed site selection.
Understanding your market is a commercial necessity.
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Protect and Enhance Your Physical Asset
Childcare is both an operating business and a property asset.
The physical environment affects:
- Family perception
- Staff attraction
- Maintenance costs
- Long-term valuation
Consider:
- Presentation and street appeal
- Functional layout and supervision sightlines
- Outdoor space quality
- Car parking efficiency
- Future adaptability
Centres designed without operational insight often face inefficiencies that affect staffing ratios and margins. Asset performance and operational performance are closely linked.
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Prioritise Financial Discipline
Sustainable centres actively monitor:
- Occupancy trends by age group
- Revenue per place
- Staffing ratios and wage percentage of revenue
- Cost control and supplier contracts
- Cash flow resilience
Growth should be strategic, not reactive. Expanding into a new site without deep feasibility analysis can dilute performance across your portfolio.
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Commit to Continuous Improvement – Strategically
Continuous improvement is not just about a Quality Improvement Plan.
It includes:
- Regular performance benchmarking
- Monitoring competitor movements
- Reviewing fee positioning
- Assessing asset value uplift
- Planning for long-term exit or expansion strategies
Operators who think like asset owners make better decisions.
Final Thoughts
Running a successful childcare centre in Victoria requires far more than meeting minimum standards.
Long-term success depends on:
- Strategic location decisions
- Strong governance and leadership
- Stable, high-performing teams
- Market-aware occupancy management
- Financial discipline
- A well-designed and well-maintained physical asset
Childcare is both a community service and a commercial property investment. The centres that truly thrive understand both sides of that equation.
