Making a Plan for Program Stability

Child care programs can be one of the most difficult businesses to operate. The needs of children and families are great and the resources for high quality programming are limited. Business development consultation is an important aspect of starting a child care program.

The following lists will help you consider the elements to include in developing a plan for program stability.

Staffing

The abilities and aptitude of the Center Director will make or break a child care center.

The director is the leader of the organization.

the director is the key person to establish and carry out a program's philosophy and mission.

Understanding the importance of building relationships is an important component of success in any business.

Programming

Stability is created by programs which are clearly articulated.

Staff must be able to buy into the program mission and goals.

A clear, concise understanding of what you do and why you do it is essential for communicating your philosophy to others.

Programming can be developmentally appropriate and based on PLAY, and still have an academic focus.

Policies that support quality

Policies should establish a tone for your operations.

Develop policies that say what you mean.

Policies must be enforced.

Written policies should be reflected in daily practice, ie. If you say that you have a high quality program, you need to demonstrate that.

Personnel policies should:

Support staff

Offer competitive salaries and benefits

Allow for paid planning and prep time

Allow staff the freedom to design programs based on their unique interests and talents, and the needs of their group of children

Fee polices should provide the income needed to carry out program philosophies.

Programs need to be able to predict what their weekly, monthly and annual income will be

Strict fee payment and collection policies prevent many avoidable problems

With a small margin between profit and loss, well written policies which are understood and enforced, may mean the difference between success and failure.

Sound financial planning

To succeed in the child care business you need:

Prompt, accurate and appropriate financial information

Bookkeeping and accounting personnel who understand the child care industry

Financial reports every director needs:

Annual operating budget

Budget comparison report

Balance sheet

Break even analysis

Costs per classroom

Accounts payable/receivable

Directors must be able to understand what the numbers on each report mean.

Long range planning

Long range planning is an on-going, never ending process that a center uses to guide growth and development. In order to reach short term and long term goals, a program needs to:

Thoughtful and thorough planning for the future

Research the community

Research recent trends in the child care industry

Be prepared for changes before they happen

Be pro-active rather than re-active

Determine action steps to reach goals

Decide who will be involved

Determine what their responsibilities will be

Set up a time line

Evaluate results

Resources

Wisconsin Professional Credential for Child Care Administrators
(An 18 credit credential designed to support Administrators)
Contact the Registry for more information 1-608-222-1123 or www.the-registry.org)

Managing the Day Care Dollars, A Financial Handbook - Gwen Morgan
Wheelock College
Steam Press Watertown, Massachusetts, 1982

Managing Money, A Director's Guidebook
Child Care Information Exchange
Exchange Press, Inc.
Redmond, Washington 1997

Child Care and Early Childhood Education Program Administration
Diane Adams Prepared for UW Madison Extension Programs, 1996
Describes organizational structures, staffing requirements, budgeting, projecting wages and fees, marketing, family relationships, and more. May be purchased for $10 through the Child Care Information Center.

Child Care Information Center (CCIC)
1-608-224-5388
2109 S. Stoughton Road
Madison, WI 53716
www.dpi.state.wi.us/ccic
A state funded library of books, videotapes, audio cassettes, articles and brochures on all aspects of child care and child development in Wisconsin. Most are free; for books and tapes lent, the only cost is return postage.

Child Care Resource and Referral (CCR & R) Agencies
Wisconsin Child Care Resource & Referral Network
1-888-713-Kids (5437) (toll free)
www.wisconsinccrr.org

The Art of Budgeting - WCCIP Tip Sheet available through (CCIC)
Child Care Information Center (CCIC)
1-608-224-5388
2109 S. Stoughton Road
Madison, WI 53716
www.dpi.state.wi.us/ccic

Rev. 3/26/02

WCCIP • 2109 S. Stoughton Road, Madison WI 53716 • Ph 800.366.3556 • Fx 608.224.6178
These tip sheets developed by WCCIP, March 1998 with funding from the WI Dept. of WFD, Office of Child Care, and DHFS