That's a tough question. Is the daycare your only source of income? If so, I guess some consideration should be given to that fact. I suppose you need to weigh out the pros and the cons. I'd be inclined to stay put if I was full, was also turning people away, lived in a nice neighbourhood and so on. However, it is nice to have a bit more space, outside play area, etc. If you're making a good income from it and your expenses are reasonable, maybe you could lay out a very stringent budget and save, save, save for an area you like better? When you move, you can also raise your rates, which will help a bit. So far as beating out the competition if you move to busier neighbourhood, what can you do to make yourself more desirable? I'm currently in the same situation. I'm leaving my rental house and moving into a townhouse in an area with loads more competition. 3 of my clients are following me (great reference in itself), I open an hour earlier than everyone else, am an ECE and am flexible regarding pick up times. Of course, that flexibility is not advertised, lest people take advantage Check out the local competition and see what you can do better. Really pump yourself up and make sure that comes across in your website.

Good luck with a very big decision. It's scary making it, especially given our line of work, but once your decision is made, it's made and you have a path to follow