According to our textbook, Administration of programs for Young Children, “Start-up costs are those expenditures that must be made during the initial stage of planning, before enrollment and before any money comes in (pg. 328).” Since start up costs occur before any money comes in, time must be spent figuring out what items will be needed to open a child care center. Along with start-up costs there are also ongoing costs. Ongoing costs should be covered by tuition. Below is a brief description of some of the items that make up start-up and ongoing costs and ideas on how to raise the money needed for these costs.
In order to open a child care center a director/business owner must spend time figuring out what will be needed and what the cost of such items will be. This is called start-up costs. Start- up costs are usually one-time expenses. Some items that are included in the start-up costs are educational supplies, equipment, toys, classroom materials, books, business cards, flyers, space, indoor/outdoor furniture/equipment, housekeeping equipment/supplies, office furniture, phone, license fees, salaries, and insurance deposit. Also if food will be proved the center will need a kitchen and kitchen supplies. Some of these items are expensive. Therefore, directors need to think of ways to help to minimize these costs.
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It is important when starting a business that the director estimates the ongoing costs. This will help the director to determine how much money must be made from tuition to cover such costs. Ongoing costs include items such as rent, insurance, phone, insurance, salaries, food (if it is provided), maintenance, cleaning, postage, and supplies. Ongoing costs are usually the monthly bills incurred by the
You have decided that this is a good opportunity to expand your day care business as you have received many inquiries for childcare. In order to comply with your home state regulations, you will require a larger facility and will need to hire additional staff in order to sustain the larger demand for day care. This staff will consist of five (5) Certified Day Care Professionals, one (1) Registered Nurse Professional, five (5) After-School Assistants and one (1) Office Support Paraprofessional. You have secured approval for a bank loan and qualify for future loans for future expansion if your current endeavor is successful. Meanwhile, the state in which you operate has requested that you provide a staffing plan before it will issue licensure for your expanded capacity.
In general, the first operational year of any business can be stressful and a bit perplexing. In most circumstances, the first year for any new daycare center will be a period of low enrollment. This means we may be facing insufficient income to meet your expenses. Yet, the budget had not taken into consideration any potential loss in the income that might happen. Nevertheless, according to the loss scenario, we face a significant loss in the income about 44,740$ less than the anticipated income, which causing a shortage in the budget about 18,452$ less than the anticipated spending. Eventually, this shortage in the income would certainly has a significant effect on the cash flow for the rest of the year. Indeed, if the administrator does not
It is becoming more common for corporations to provide daycare facilities as a fringe benefit for their employees. What has evaluative research found regarding the costs and benefits of these facilities?
to 5:00 p.m.). Fees do not vary if less than a full day or less than a month of daycare is used by the parents. Based on projected demand, it is expected that the daycare center will open in January 1997 with 120 children. Ms. Nemet has been successful in negotiating a ratio of 6 children to 1 daycare worker for the first year of operation. Daycare workers earn $6.50 per hour. They work from 9 to 5 and get paid for eight hours. Children get a snack and lunch. The food cost is $3.00 per child per day. The cost of supplies is $1.50 per child per day. The City of Northville has purchased certain equipment (such as cots and desks) for the first 120 children. However, these costs are estimated to increase by $50 per child as the enrollment at the daycare center goes up. For the first four months, it is expected that the number of children will grow by 10 percent, beginning in February 2000. Beginning June 2000, the monthly growth is expected to be 5 percent. Parents pay $200 per month per child. In the first year, Northville is "donating" space and utilities. Ms. Lux says that this city contribution is worth $2,000 a month. Mr. Legato says that the union will contribute to the cost of the city's new daycare center by providing $1.00 per child per day for the children of union members. It is estimated that 70 percent of the children will be children of union members. The state has a subsidized daycare start-up grant for the first year of
In a regular day to day basis businesses must face a great deal of external and internal forces. Businesses have many different aspects of external and internal forces they must face in order to be successful. External forces, internal forces and trends continually make the pathway for where a business is headed and where a business stands currently. Organizations should do a SWOTT analysis to examine business potential and business risks so that if any action needs to be conducted it can be done before any unwanted events occur within the business (Robinson, Pearce, 2004). United Daycare has several forces and trends that potentially affect the overall business. Nevertheless, in order for any business to function properly the business
This business plan will explain the opportunity and the business case for starting and operating our new independent day care facility, and details the need for $75,000 in investment capital in order to properly fund the operations and provide an attractive return to investors.
Although there will be an inevitable exposure to liabilities, there are ways to decrease the amount. Some liabilities observably entail issues such as injuries to a child while attending the daycare. These liabilities can be minimized through the legal structure of the daycare and also how organized the operation is arranged, purchasing liability insurance when licensing the daycare, and making the daycare clear of any objects which may result in injury. Fortunately, there are also three other types of liability options to explore:
The location we would like to start our child care center in is 6800 Shakespeare Rd, Columbia, SC 29223 Columbia, South Carolina. There are 13 licensed centers in our community within our local zip code with an average capacity of 20-240 children. There are 7 Head Start programs and no Early Start programs that operate in the community. The Head Start programs do not specify how many children they serve. Our community has 1 faith-based program. These faith based programs are not exempt from licensure and they serve 100-238 children. Our local public schools offer head start in the whole county for pre-Kindergarten aged children. There is no YMCA in our community.
The purpose of this paper is to provide a staffing plan for Guardian Angel Daycare center. Although, we are a small business I will provide information that will show with the right amount of employees, possessing the knowledge, skill, and ability (KSA) skill sets we can maximize efficiency and meet the critical business needs at the appropriate times. In order for us to secure the licensure needed for our future expansion.
This memorandum provides a detailed analysis on the day-care center program including projected advantages, projected risks, and cost structure based on Cost Volume Profit (CVP) analysis. In the end, the memorandum also has a recommendation for Mr. Schaefer to polish the proposal in better preparation for the board meeting.
Where as a facility has set hours that they are open in the week so you are guaranteed to get your hours in. If I were to own a daycare there is no telling how many hours I would work a week since I would not be setting my own hours. Lastly I looked at the investment I would have to make in order to work in a facility or own my own daycare. If I were to work at a facility the expenses are already set up so I would not have to make my own investments. As for owning my own daycare I could end up making an investment from as little as $500-$100,000. The cost of starting an in-home daycare goes based on how much remodeling is needed. There is a lot of equipment I would want to have in my daycare such as: toys, nap mats, bedding, playpens/cribs, art and craft supplies, first aid kit, child size furniture, and so much more. The equipment needed for a daycare can get expensive.I would not want to invest so much money into an in-home daycare that I have no guarantee that business will be good, or what my hours will be, or how much I would be
The Business Plan outlines the marketing, growth, contingency plans and the forecasted financials. La Bambinière hopes to fund the initial $8,160 required to start with the owner’s resources and the incentives provided by the NCDCDEE to launch the business in September of this year. La Bambinière plans to become a 5 star rated Child Care Service within the first 18 months of
An increase in baby booming makes it tougher for working parents to find daycare. The facts prove that having children come with a true price. Even so it doesn’t change the issues of finding child care or makes them go away. When parents work, quality child care is a necessity. And it does not come cheap. For families with more than one child, child care can eat up one salary, leaving parents wondering both working is worth it. When thinking of child care there are some options to consider like choosing a child care center, the costs of child care centers, and waiting lists.
The day-care center will save and make the company money. The day-care center will keep money inside the company.
establishing favorable locations where to set up the daycare and presentation of proposals to the administration