Precious Cargo unveils franchise growth strategy

AN AMBITIOUS franchise growth strategy is the next challenge for Precious Cargo childcare centre owner and Telstra SA Business Woman of the Year Cheryl Shigrov.

AN AMBITIOUS franchise growth strategy is the next challenge for Precious Cargo childcare centre owner and Telstra SA Business Woman of the Year Cheryl Shigrov.

Two new Precious Cargo Early Learning sites are planned in South Australia during the next year under the new franchise drive started by the childcare entrepreneur a year ago.

A former director of Ms Shigrov's four childcare centres, that are based on a Montessori model, was planning to open a new Blackwood site in July 2014 while a second Woodville Park building was also likely to open next year.

"We are also negotiating some other sites now in South Australia, we're thinking there will be two to three more in South Australia," Ms Shigrov said.

A further push had been instigated interstate in Sydney and Melbourne with franchises in New South Wales now being advertised for $350,000 each.

Ms Shigrov said extensive work had been completed to create strict guidelines for the new centres including site selection and specific environments to assist children in their learning.

Teachers under the model must also be trained in the Montessori method, that included observing and understanding classroom aims and the needs of each child.

Ms Shigrov was a single mother of two boys aged 10 years and 12 years when she began work on opening her first Precious Cargo centre in St Peters during 2006.

Now there were four supporting 1200 families in Adelaide including in Myrtle Bank, Westbourne Park and Lockleys, with a total of 200 staff.

Ms Shigrov said the business felt well prepared for its next growth phase after working through several challenging business incidents since inception.

Two sites, at Woodcroft and Aldinga, had not worked and were sold.

Ms Shigrov said it had become clear that some regions had greater demand for the "slightly higher" cost of a Montessori-style centre than others.

This had led to further research into targeting key areas that would best suit the childcare model.

"We've gone down the path of a demographer to make sure we get it right in other states in particular," she said.

Ms Shigrov was also particularly cautious about her growth plans after having been burnt when the infamous ABC Learning childcare network went into receivership in 2008.

While many believed it would be a boost to Precious Cargo with new demand from former ABC Learning centre children and parents, it instead created pressure for the entire sector.

Ms Shigrov said Eddy Grove's dramatic fall from grace occurred just before the new Myrtle Bank centre was due to open.

It triggered a loss of confidence in the childcare industry from the financial sector and Ms Shigrov's bank suddenly pulled funding.

"I went to every bank, financial institution, lending agency, loan shark for help and they all said no, this took about a month to six weeks," she said.

Then suppliers involved with the Myrtle Bank development started calling about their outstanding debts.

"I had to be open and transparent, I said I didn't have the money and I could never have foreseen it, could I please go onto a payment plan," Ms Shigrov said.

She told suppliers that she would always be committed to a relationship with those who supported her, and all but one did.

"They are still my suppliers today, I will never forget that loyalty," she said.

"Giving up is not an option, I know what I'm offering the community is something unique and special."

Ms Shigrov also is concerned that promised increased federal funding for staff might be withdrawn by the new government.