Resource Guide - Start-up Phase
MONEY NEEDED DURING THIS STAGE:
Equity
Phase in Staffing and Children
The Start-up phase is the time to launch the program, or the expanded
services, once the facility project is complete.
If the business is just starting, or if it is just completed an expansion,
it is important to remember that the program will need to build capacity. In
other words, you won't start with a full staff or full enrollment the day
you open.
One way to encourage enrollment early is to start up in either early fall
(August/September) or January, because these are the times of year when
parents are most likely to make changes in care arrangements since they
correlate with breaks in the school schedule.
Make sure that you create parent/provider contracts in order to lay out in
advance all expectations and responsibilities for both you and the parents
whose children are enrolled in your child care program.
As enrollment builds up it is imperative to maintain your program’s image
and publicity even after the facility is up and running. For example, bring
business cards with you whenever you go out with the children, make T-shirts
for the children to wear on field trips, and make sure your services are
well known throughout the community.
If the program does reach full enrollment, a waiting list should be
established because child care enrollment can fluctuate easily and you will
want to fill vacancies as quickly as you can to ensure regular cash flow.
Program Sustainability
Even after the facility project is complete, it is essential to maintain
relationships with funders and build relationships with new funders
consistently. This is important even when you don't need money, because down
the road it will be easier to raise money based upon preexisting, or
maintained relationships rather than on new ones.
To ensure sustainability of a program:
-
Establish an operating reserves budget so that you are prepared for
unexpected expenses and cash flow inconsistencies.
-
Be realistic about the fees you charge and adjust them over time as your
expenses change, but always give parents advance warning of these
changes.
Above all, balance your service obligations with your business obligations.
If you don't attend to the business matters of your child care program you
won't be able to provide high quality services.
Though the financial piece plays a particularly large role in the facilities
development process, without maintaining and continuing to develop the
financial side of a child care program once it is up and running, it won’t
survive as a viable business.
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