Payroll?

[danthony]

How did you pay your employees prior to getting enough enrollments to cover? Did you get a loan, government assistance, savings, etc?

[Blackcat31]

I would think that one wouldn't hire employees until AFTER you have enough kids to cover paying their wages.

If you don't need them, why would have them...kwim?

[itlw8]

Normally a business should have operating funds set aside to cover expenses until you make a profit. savings, 2nd mortage on your house Plus you pay employees not yourself.
Truthfully those are the businesses that go out of business within the first year because they did not have the money to fund the business for the first year or two.

[danthony]

Originally Posted by Blackcat31

I would think that one wouldn't hire employees until AFTER you have enough kids to cover paying their wages.

If you don't need them, why would have them...kwim?

Right... This is a commercial property and I will not work there initially, so I will have to hire a Director in the beginning until I decide to take the leap of faith and quit my current career. I was not planning on hiring before I had children, but... If I have two infants at $800/child and I have one teacher in the room with them and a Director, I won't make enough money for the center initially. I was just trying to get an idea of how others worked this part of the business out. Thanks!

[missy]

How big is your center/capacity going to be? Start-up costs are pretty low in child care, compared to other businesses, but a loan is definately needed for "working capital" (keeping it running), that's where all the costs come in. Did you ever do a business plan or make a "break even" analysis? Figuring out your break even point is pretty easy, I am NO accountant, lol, and I did it easily if you need some help. Unless you already have a decent client list, you can't count on a profit for awhile, maybe even several months to a year.

[Annalee]

Originally Posted by danthony

Right... This is a commercial property and I will not work there initially, so I will have to hire a Director in the beginning until I decide to take the leap of faith and quit my current career. I was not planning on hiring before I had children, but... If I have two infants at $800/child and I have one teacher in the room with them and a Director, I won't make enough money for the center initially. I was just trying to get an idea of how others worked this part of the business out. Thanks!

There are two ladies here that went from a FCC of 15 to a center for 24 children. They didn't last a year till they went back down to FCC. The extra 9 kids did not give extra money because of the stiffer guidelines of director at all times, infants cannot ever be combined so if you had one infant, there was one teacher just for them. I would check into the guidelines for your state. When these ladies put it on paper, they made more working themselves in FCC. Just some things to think about!