Helping childcare business owners build successful, sustainable businesses through practical strategies, real-life experience, leadership, faith, and encouragement.

Archive for the ‘Budget’ Category

Would You Raise Your Rates or Risk Losing Families?

You don’t have to figure out the childcare business alone. I’ve been where you are. I’ve been a family childcare provider, a center owner, a director, a leader of teams, and a multi-location owner. I’ve made mistakes. I’ve learned. I’ve expanded. I’ve had to rebuild and grow. Now I share what I’ve learned to help you build your childcare business!

I can remember when I used to struggle with the thought of raising my tuition. In fact, I was afraid that if I raised my rates that parents would leave my childcare business. Not anymore! I have found that if a parent truly loves, appreciates and needs the service that you offer, they will pay the increase within reason.

For the past three years I have consistently raised my rates at the beginning of the year. I believe this is a great way to increase your business income every year and keep up with the rising cost of childcare. Moreover over, this is a great way to be sure that you can afford to give your employees an annual pay increase and continue to provide a quality child care program.

Let me tell you how I raise my rates:

  1. I issue and post a notice to families 45-60 days before the rate increase.
  2. I slowly raise the rates of my currently clients. For example, the new rates go in effect in January, however the current families receive a rate increase on their child’s birthday or anniversary or their enrollment date in the year that I increased the rates. This assures that families only pay one increase a year.
  3. My rate chart is updated and posted on our website and parent handbook on January 1st.

Be Honest: Are you afraid to raise your tuition? Why or why not?

Dr. Shiketa Morgan

How to Keep Track of SBA Funds

calculator placed over stack of usa dollars

Photo by Karolina Grabowska on Pexels.com

Have you applied for the payroll protection plan or any SBA Funds for your Child Care Business during this pandemic?

Covid 19 hit the childcare industry and many other industries hard and having financial assistance from the SBA and other agencies is how many businesses are surviving right now. However, it is still vital that you maintain your record keeping in the event of an audit.

Today I want to share some strategies with you that will help you to maintain your current budget plus the additional funds that you receive from the Small business assosciation or Federal PPP funds.

 

 

  1. When you receive SBA funds, keep those funds seperate from other business funds. It may even be helpful to you to start another bank account.
  2. Keep track of how you spend the funds by using a log. (SBA Working Capital form
  3. Only use the funds on monthly operating expenses such as: rent, payroll, food, supplies, utilities, etc.
  4. Using SBA funds frees up your monthly workin capital and allows you to stay afloat during this pandemic.
  5. Finally be sure to keep all receipts.

With your Business Success in mind,

Shiketa

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