Inspirational and Empowering Child Care Business Owners To Build Successful Child Care Businesses

How to Increase Your Tuition Rates

08 30 17

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Are you happy with your Business Income? Can you use a rate increase? Has it been over two years since you have raised your rates? Not sure how to go about changing your rates?

If you answered yes to at least 2 of the above questions, it’s probably time for a rate increase!

Many child care providers are afraid to increase their rates because they are concerned that families may leave their program and go to another daycare.

Tip:Before changing your rates, check the rates at surrounding daycare’s. You don’t want to be known as the over priced child care program.

Today I am going to show you how to increase your Business profits and increase your Business Income:

Consider increasing your rates by only $5.00 a week. If you have 10 children this could be a monthly increase of $200 a month. However if you have 100 children, this is a $2,000 a month increase!

Once you make your decision to increase your rates, give parents a 30 day notice to allow time for budget adjustments. The average family will not be affected by a $5 a week increase. In fact, if they love your daycare, they will not have a problem with paying a little bit more per week.

Here is a sample letter: (feel free to copy and paste)

Dear Parents,

This notice is being sent home to inform you of an upcoming rate increase. Our rates will be increasing to $_______ a week beginning on _____________.

Rate increases assure that we are able to buy new items for the program and to be sure that we provide a Quality Program for young children.

If you should have any questions about this notice, please see _____________.

Thanks for Choosing ( Your facility Name)!

Your Name

For more Tuition Tips, be sure to Check out my 5-Day Tuition Policy Makeover eCourse!

Shiketa

Category:

Business Management, Quality Care

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4 Crucial Child Care Business Expansion Tips

08 29 17

Do you have plans to expand your Child Care Business in the near future? Are you afraid of expansion? Don’t know where to start?

If you answered yes to the questions above, this post is for you!

As you may already know, I expanded my Family Home  Child Care Business into a Center in 2003 and in 2014 I expanded again!

My Dream Location!!

On December 1, 2014, I moved into my Dream Location. 6,000 square feet with a large playground and very large classrooms. I could not have asked for a better location.

As I went through the expansion, many providers asked me How I did it. In fact, the top question that I received was, How much did it cost?

Today, I want to share 4  Expansion tips that I believe are a crucial part of the expansion process:

1. As you apply for finances for the expansion, be prepared to issue (2 years) of financials or profit and loss reports to your bank or lender.
2. Be prepared to write a Lease proposal if you really want the building.
3. Before moving into a new location, check the license records on that location (if the building was previously licensed for childcare, particularly the enrollment numbers.) This is a great way to assess the need of the location.
4. Complete a start-up budget for full capacity and a budget that reflects being only filled to 50-60 percent of the capacity. This method will give you a realistic view of how much money the Center will make.

For more Expansion or Start-up Tips, Download a Copy of my Child Care Business Expansion Guide Today!

If you need Start-up or expansion coaching, contact me today! click here

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Much Success To You!
Shiketa Morgan

Category:

Business Expansion, Expansion, Marketing

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