Paying Employees When You First Open

[danthony]

I am at a lost. I am trying to figure out how to pay employees. I have a building, I have equipment. I just don't know if what I get in tuition and fees initially will cover the cost of paying my childcare workers. Can anyone offer some advice on this please? I would like to know how you all did it. Did you take out a loan, did tuition make enough to pay your workers, etc. ? Thanks in advance.

[Michael]

Welcome to the forum!

[mjaddi]

Originally Posted by danthony

I am at a lost. I am trying to figure out how to pay employees. I have a building, I have equipment. I just don't know if what I get in tuition and fees initially will cover the cost of paying my childcare workers. Can anyone offer some advice on this please? I would like to know how you all did it. Did you take out a loan, did tuition make enough to pay your workers, etc. ? Thanks in advance.

I know what you are going through. It is really hard at first, but what I plan on doing is making sure I have enough startup money to pay employees. It could take a while before you see a profit from the center. Also, any friends that are licensed to work can help you out at first till things get going.

Those are my thoughts I'm sure others will have better advice for you.

[Heidi]

First, I would think that part of your initial business plan would calculate those costs: Your income and expenses. Your expenses have to be covered until the income is there; so that means out of your pocket, however that may be. IF you don't have a solid business plan, you need to get one. There is an agency called S.C.O.R.E that has volunteer retired executives who can help with that. Check to see if there is something similar in your area. Another resource may be the small business administration. http://www.sba.gov/

Many of us here charge tuition in advance. Most of us after years of practice have found it's the best insurance against getting ripped off. Many providers and centers also charge a one-time registration fee or materials fee of $50 or more.

[missy]

I second the business plan, you definately need a loan. My actual "start-up" costs to open my doors is like $10-15k--but I needed a loan for $50k just to cover expenses until I at least hit a break even point. Your business may take off and you won't need it all, but imagine running out of $ after all the work you went through.

Good luck:-)

[missy]

Plus keep in mind it can take 6-8 weeks to receive your money from an SBA loan.

[danthony]

Thank you!

[danthony]

I am actually employed full time as a school administrator so some of the expenses such as rent, utilities and food will mostly come from that check.