Your Child Care Business

Business Center

[Introduction] [Contacts] [Downloadable Resources] [CCR&R Network] [Getting Started] [Licensing] [Due Diligence] [Business Registration] [Insurance] [Business Plan] [Financial Management] [Child Care Centers] [Starting a Child Care Center] [North Dakota Growth Fund Launches] [Quality First grant/loan] [Marketing] [Provider Rates] [Contracts Info] [Policies] [Permission/Authorization Forms] [IRS Info] [Human Resources] [Funding Sources] [Quality Improvement Programs] [Head Start Partnership] [Food Program] [Health & Safety] [Child Care and ADA] [Emergency and Disaster Preparedness ] [Glossary] [Associations/Organizations][Finding Software] [Acknowledgements]

PLANNING HELP FOR CENTERS

Child care centers, from a business perspective, involve a much more detailed planning process because of the potential cost involved, licensing requirements and governance structure. It is difficult to present a one-size-fits-all business plan or budget for centers, so we put together a list of items you need to include in your planning process. The list is not intended to be inclusive, only a starting point. Also, there are various sections on this website that apply directly to centers or that include references or resources applicable to centers.

You should always start with your county licensing office, carefully read their requirements and make certain you can meet those requirements. Understand those are minimum requirements and you will want to exceed those minimums for quality and marketing purposes.

The information presented below is to assist you in your center budget planning process. You will want to do a 12 month cash flow projection. Remember that you will not be at full pay capacity all the time. As an example, your summer enrollment will likely vary from your school year enrollment in numbers and ages.

Start Up Costs—land, building, playground equipment, office equipment, supplies, furniture and fixtures, bus/van, architect fees, construction cost, city/state licenses/fees, set aside for cost overruns, legal fees, accounting fees, etc.

Revenue—your income will be primarily from fees paid by parents. Determine how many children (full-time, part-time, after-school, drop-in, etc), ages and rates (weekly, hourly). You should inquire about the USDA food program (information on this website) and determine rates for activity fees, enrollment fees, transportation fees, space hold deposits and what you anticipate in donations and fund-raising. Your local CCR&R office has rate information. (see Contact Us page)

Expenses—beyond your start-up costs you will need to plan for employees salaries and benefits (director, teachers, teacher assistants, custodial, van/bus driver, cook and substitute teachers) plus the taxes and withholding associated with employees. Employee training. Consumable supplies, toys, books, health/safety supplies and their replacement. Food products and everything you need to prepare and serve the food. Kitchen and cleaning supplies, consumable office supplies, rent/mortgage, real-estate taxes, utilities, insurances (information on this website), advertising, gas, maintenance, repairs, phone, garbage, lawn care, snow removal, printing, postage, staff training, and allowance for bad debts. Your accountant can help you round out this list.