3. Introduction
• Understanding that a Child Care
Center is a business
• What we know and what we think
we know about operating a
business
• Turning telephone inquiries and
walk in visitors into revenue
• Employee proficiency
• The Bottom Line
4. Topics of Discussion
• Revenue minus Expenses
• Where revenue comes from
• Expenses
• Budget Process
• Hiring Process
• Hiring the right people
• Selling your services
5. Understanding a Business
• Profit vs. Non
Profit
• Child Care as a
Business
• Marketing
• Awareness in the
Community
• Profit Margin
• Working with a
budget
• Including staff in
budget process
• Cutting expenses
• Sales training for
employees
6. Where Revenue Comes From
• Tuition
• Registration Fees
• Activity Fees
• Fundraising
• Donations
• Grants
• Classroom Revenue
7. Tuition is established by the following formula:
– Multiply the Tuition Rate by the # of Children in a
particular age group
$150 x 10 toddlers = $1,500 per week x 52 weeks =
$78,000 per year
Do this for every age group and every room
Establishing Tuition
8. Expenses
• Salaries
– benefits and taxes
• Rent
• Utilities
• Food
• Supplies
• Equipment
• Insurance
• Transportation
• Facility
• Public Relations
• Professional
Development
• Property Taxes
• Accounting and
Legal Fees
• Advertising
9. Budget
• How to begin?
• Involve employees in budget process
• Is it time to increase your tuition rates
• Controlling expenses
• Justification of new purchases
• Monthly review of budget variances
• What does each child represent for your
center
10. Jan - Mar 13 Budget $ Over Budget % of Budget
Ordinary Incom e/Expense
Incom e
1715 · Regular Incom e
1718 · Tuition Incom e 74,475.55 83,500.00 -9,024.45 89.19%
1717 · School Readiness Subsidy 5,220.85 4,386.14 834.71 119.03%
1716 · VPK Incom e 30,476.84 32,150.00 -1,673.16 94.8%
1714 · Grant Incom e 0.00 1,179.83 -1,179.83 0.0%
1720 · Returns & Allow ances
1724 · Return Checks -560.00
Total 1720 · Returns & Allow ances -560.00
Total 1715 · Regular Incom e 109,613.24 121,215.97 -11,602.73 90.43%
Total Incom e 109,613.24 121,215.97 -11,602.73 90.43%
Expense
6311 · Maintenance
6312 · Janitorial Exp 314.58 269.50 45.08 116.73%
Total 6311 · Maintenance 314.58 269.50 45.08 116.73%
6100 · School Expenses
6104 · School Supplies 954.29 714.64 239.65 133.53%
Total 6100 · School Expenses 954.29 714.64 239.65 133.53%
6291 · Waste Collection 249.00 241.02 7.98 103.31%
6275 · Training 180.00
6000 · Advertising 300.00
6120 · Bank Service Charges 27.00 12.00 15.00 225.0%
6180 · Insurance
6185 · Liability Insurance 1,532.78 1,500.00 32.78 102.19%
Total 6180 · Insurance 1,532.78 1,500.00 32.78 102.19%
6550 · Office Supplies 43.31
6301 · Salary Costs
6167 · Em ployee Wages 80,761.35 86,525.74 -5,764.39 93.34%
6165 · Em ployee Health Insurance 3,069.48 5,525.68 -2,456.20 55.55%
6169 · Payroll Taxes & Workm an's Com p 11,544.61 11,000.00 544.61 104.95%
6163 · Payroll Delivery Fees 90.00 90.00 0.00 100.0%
Total 6301 · Salary Costs 95,465.44 103,141.42 -7,675.98 92.56%
Total Expense 99,066.40 105,878.58 -6,812.18 93.57%
Net Ordinary Incom e 10,546.84 15,337.39 -4,790.55 68.77%
Net Incom e 10,546.84 15,337.39 -4,790.55 68.77%
11. 6:30 a.m. 7:00 a.m. 7:30 a.m. 8:00 a.m. 8:30 a.m. 9:00 a.m. 9:30 a.m. 10:00 a.m.
CLASSROOM –
Teacher/Child Ratio
INFANTS
TODDLER
2 YEAR OLD
3 YEAR OLD
4 YEAR OLD
SCHOOL AGE
Daily Teacher/Student
Schedule
12. Marketing your Center
• Hiring the right people
• Selling your services
• Understanding the importance of a
telephone inquiry or a walk in
prospect
• Close the deal
• The importance of staff moral
• Sell your employees on selling the
center
