If you desire is to own a child care center, you basically have three options to accomplish this goal: buy an existing center, convert a space or building into a child care center or build a new center from the ground up. Buying an ongoing center with children enrolled and monthly revenue is normally the…
Understanding Break-Even Break-even is the minimal amount of income/revenue a child care center must earn to cover all expenses without losing money or making money. Therefore, all income above the break-even point would be profits. To calculate your center’s break-even, add up all of the operating expenses for a month, i.e. labor, supplies, rent, insurance,…
What Does a Lender Look For? The 5 C’S of Lending Lenders and investors look not only at the business numbers when making a loan but also take into consideration intangible things. These intangible considerations are often referred to as the five C’s: 1. Character – it is important to the lender that the borrower…
Increasing Cash Flow Successful cash flow management requires managing the money that comes in and flows out of your child care business. The goal is to maintain smooth, consistent cash flow. Large increases in expenses and drops in revenues create uneven cash flow situations. It is important to predict and operate your child care business…
Preventive Maintenance – A Cost or a Savings? Preventive maintenance is planned or scheduled maintenance with the goal of preventing breakdowns and failures by keeping things repaired and in good working condition. Preventive maintenance in a child care business would include regular evaluation and service/repair of all mechanicals. Mechanicals being, the heating and air condition…
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