Opening a Daycare
Wee Care Childcare Center: Opening and Operating ExpensesOpening a new childcare business is not something that one should mindlessly rush into. To stand a chance of creating and maintaining a financially successful childcare business, one must devote countless hours of research and planning into the developmental stages. Within this paper, not only will the planning of Wee Care Childcare Center (WCCC) be discussed, the 2004 annual cash flow report will be disclosed.In researching the childcare business, I met with Mrs. Billie Martin, owner and operator of Happy Times Daycare in Olive Branch, MS. Mrs. Martin has been in the childcare business for approximately 25 years (Martin, 2004). In addition to Happy Times, Mrs. Martin owns another childcare center in the Desoto County area. Ms. Martin stated, "The key to success is location, securing your capital for start-up expenses and maintaining a balance in your enrollment numbers, building size, and number of employees"(Martin, 2004). After speaking with Mrs. Martin, I felt I needed to divide my planning into various stages. The initial stage was securing funds to cover start-up expenses. Secondly, I began determining what might be the most desirable location.
As shown in Figure 1, during the period of 1960 - 2000, growth in Desoto County, MS, steadily increased. While the overall company profit was $72, 846. Upon examining the fixed expenses, desired profit level and contributions margin/ratio, I was able to determine the number of enrollees needed to make my desired profit level of $5,000. 00 Appendix CWee Care Daycare FY2004 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecCapital Beginning Balance $100,000 Start-up Costs Total Start-up Costs ($39,173) Ending Balance $60,827 $60,827 $60,827 $60,827 $60,827 $60,827 $60,827 $60,827 $60,827 $60,827 $60,827 $60,827 $60,827 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecOperating Cash Flow Beginning Balance $0 $2,036 $5,528 $8,094 $14,007 $21,446 $24,719 $30,742 $38,057 $44,668 $53,951 $63,532 Revenues Memberships Mthly chg New Membership Initiation fee $50 $2,550 $200 $150 $200 $150 $200 $150 $50 $100 Membership monthly dues Infants (max= 10) $538 $2,688 $3,225 $3,225 $3,225 $3,763 $3,763 $3,225 $3,763 $3,763 $3,763 $3,763 $4,300 Toddlers - (max - 24) $473 $7,095 $8,041 $8,041 $8,987 $9,460 $9,933 $8,514 $9,460 $9,933 $10,406 $10,406 $10,879 3-5 yrs (max 30) $452 $8,127 $8,579 $9,030 $9,933 $10,385 $10,836 $9,482 $10,385 $10,836 $11,288 $11,739 $11,739 6-12 (after school; max 35) $280 $3,634 $3,913 $4,193 $4,472 $4,472 $4,752 $4,752 $5,031 $5,031 $5,311 6-12 (summer full-time; max 35) $366 $6,214 $5,483 Monthly Income/Breakfast@ $5. Over a twelve month period enrollment fluctuated, but never enough to generate a loss. Figure 1 Rather than purchasing a building, I began looking for a building to rent within the Olive Branch, MS vicinity. Mississippi state regulations state, when children are placed in groups, the maximum group size shall be determined by the following:Age of Children in the Group MAXIMUM number of Children ALLOWED in a group of children this age MINIMUM number of caregivers REQUIRED for a group of children this age MINIMUM square footage REQUIRED for a group of children this ageInfant(Under 12 months) 10 infants 2 caregivers 40 square feet per childToddler(12 months to under 24 months) 10 toddlers 2 caregivers 45 square feet per child2 years 14 children 2 caregivers 35 square feet per child3 years 14 children 1 caregiver 35 square feet per child4 years 20 children 2 caregivers 35 square feet per child5-9 years 20 children 1 caregiver 35 square feet per child10 years 25 children 1 caregiver 35 square feet per child(Mississippi State Department of Health, 2003)Based on the above information, WCCC provides daycare services that does not exceed the numbers listed in the above table. Thirdly, I had to decide if a building would be purchased or rented.
Common topics in this essay:
Department Health,
Childcare Center,
Membership Initiation,
Children ALLOWED,
Olive Branch,
Expense Full-time,
Ms Martin,
Advertising Expense,
Appendix WCCC,
Expenses Lease,
$1100 $1100,
$1100 $1100 $1100,
$1892 $1892,
$50 $50,
$5500 $5500,
$60827 $60827,
$1892 $1892 $1892,
$5500 $5500 $5500,
$50 $50 $50,
$60827 $60827 $60827,
$7912 $7912,
square feet,
childcare center,
feet child,
wee care,
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