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,…
The financial performance of child care businesses is often “assumed-to-be” far less than businesses in other categories. Although operating a child care business does have it challenges, the growth of child care businesses and annual sales outpaced many other business categories in the U. S. in recent years. According to a June 2014 report by…
While taking the steps to start a child care business, most owners are already dreaming of the day they will sell their center for a substantial sum. The problem is – most owners are so busy running their business little time and effort is spent engaging in activities that improve the value of their business.…
Demographics and market research are not just for large companies. Every business – including child care businesses have much to gain from knowing some basic market area demographics. Demographics are valuable to child care businesses for many reasons here are five: Defining your ideal customer (parent). Can you as a child care owner describe the…
At Solutions 4 Child Care, when we speak with child care owners about marketing, we ask about area demographics, marketing segmentation, the definition of an ideal customer, etc. Although most child care owners have a general idea of “area demographics”, most have limited knowledge or incorrect estimates (guesses) about the demographics of their market area.…
