Success Formula Podcast

How EJ Built a $20M+ Childcare Empire Using SBA Loans (Full Breakdown)


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In this powerful episode of Success Formula, host Shawn sits down with EJ, a franchise childcare entrepreneur who has built a multi-million dollar empire by doing one thing differently than his competitors: staying obsessively hands-on. Starting with zero experience in 2018, EJ purchased his first school for $6.45M using SBA financing and a strategic real estate play that most business owners completely miss. Today, he operates multiple locations generating hundreds of thousands in annual revenue while simultaneously benefiting from property appreciation.


But here's what separates EJ from average operators: he's not chasing passive income. Instead, he's invested heavily in top-tier talent, created systems that scale, and maintained the kind of customer service and transparency that turns struggling schools into thriving institutions. In this conversation, we break down the financial mechanics of SBA loans, the dual-profit model of owning both the business and the real estate, why paying premium salaries for exceptional staff actually maximizes profit, and how state regulations impact your bottom line.


We explore EJ's operational playbook for scaling from one location to multiple schools, including how to fill new facilities with families, what to look for when acquiring existing schools, and why the best operators are never truly passive. You'll discover the teacher-to-student ratios that matter, insurance considerations that have tripled in recent years, pricing strategies that work in competitive markets, and the real estate appreciation play happening underneath your business operations.


Beyond childcare, EJ also opens up about his latest ventures: a luxury short-term rental property on four and a half acres in Galveston that sleeps 48 people comfortably, and an upcoming hotel acquisition outside of Round Top, Texas. Whether you're interested in the childcare industry, franchise models, commercial real estate investing, or just understanding how elite operators think, this episode delivers actionable intelligence you can apply immediately.


If you're an aspiring entrepreneur, business owner looking to scale, or investor exploring franchise opportunities, hit that subscribe button and ring the bell for more deep-dive conversations on Success Formula. Drop your biggest takeaway in the comments below and let us know what topics you want covered next.

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