Husband and wife team Cheryl de Freitas and Marnewicke Loubser know that the financial rewards of growing their Tiny Tots Academy preschool network is still decades away. But when it comes to lifestyle, they find themselves in the pound seats.
“We sleep at home, and live at our schools,” says Marnewicke. There is no greater reward for him and Cheryl than seeing over 300 children flourish and thrive across their three Tiny Tots Academy playgrounds in Roodepoort. Their team of 58 dedicated staff members are far exceeding the required staff-to-child ratios, but it reflects their commitment to prioritising purpose over profits.
The Tiny Tots Academy was started eight years ago when Cheryl and Marnewicke bought an existing playschool in Strubens Valley, Roodepoort. Cheryl, a qualified early childhood educator, had previously successfully built and sold a preschool with the help of bank financing. Given her proven track record, she expected securing funding would be easy.
But the reality was far more challenging.
“It was extremely frustrating and genuinely very hard to just find bankers who understood business finance,” says Marnewicke. “I know they advertise it everywhere, but you go from branch to branch, and because there is equity in the business involved as well as the property, they either revert back to ‘Oh, so you want property finance,” or ‘You want a personal loan’. No one understood and grasped the full picture and it was an absolute nightmare.
Their experience with Business Partners Limited marked a turning point. Unlike traditional lenders, Business Partners Limited understood that the transaction was not only about acquiring property, but a hybrid transaction involving buying a property and a going concern. Furthermore, Business Partners Limited recognized the need for flexible financing to allow for ongoing business improvements, such as property renovations.
The loan Tiny Tots Academy received was not only tailored to the unique needs of the growing business, but Cheryl and Marnewicke discovered a strong cultural fit as well. “Cheryl and I are relationship-oriented people,” says Marnewicke. “With Business Partners Limited there is a human element to their finance.”
That personal touch proved to be invaluable especially during the Covid-19 crises. The first hard lockdown happened two weeks after Cheryl and Marnewicke opened the doors of their second school. They could not expect the parents of their pupils to pay school fees and they faced immense pressure. Thanks to Business Partners Limited’s willingness to offer a repayment moratorium, Tiny Tots Academy was able to weather the storm and continue serving its community.
Building on their positive experience, Cheryl and Marnewicke returned to Business Partners Limited to finance their second school in Wilro Park, and most recently, their third school in Wilgeheuwel. Unlike their previous two schools, the Wilgeheuwel campus was a completely new development, built from the ground up. It marked a significant milestone in their journey, reflecting both their growth and their confidence in the Tiny Tots Academy model.
Marnewicke says the hardest aspect of building a group of preschools such as Tiny Tots Academy is initially finding suitable property and the right kind of financing. But a perennial difficulty for Cheryl and Marnewicke is finding staff members who share their deep passion for nurturing and educating young children. Much of their effort goes into the vetting and training of carefully chosen staff members, which is central to their success.
For now it is unlikely that the Tiny Tots Academy will add additional schools to its stable, says Marnewicke. However, growth will continue through the expansion of existing facilities. The local preschool market is quite saturated and the demand for Tiny Tots Academy high quality care creates constant pressure to accommodate more children, he says.
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