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As a general rule, calculate fees at 70% of license capacity during the first year.
Will you charge a flat weekly rate per child or charge an hourly fee?
Will parents pay for holidays, sick days and vacation?
Will there be a second child discount for children from the same family?
Will you have a sliding fee scale?
Will you charge a fee for a child to be enrolled in your program
Will that fee be per family or per child? Is it an annual or one-time fee?
Will you participate?
Potential income will vary depending upon the income levels of the families you will serve
Will these funds be designated for a particular use or piece of equipment?
What will be your plan to solicit contributions?
Will you do fundraising events?
What will be your staff/child ratio?
What are typical salaries in your area for each position?
Will you offer salaries above the average to
attract the most qualified people? Will you offer paid breaks and lunch periods?
Will you offer paid set-up and close-up time each day?
Will you have 1–2 hours paid planning time per week?
Will you have regular paid staff meetings?
What will you do when you or staff are sick or on vacation?
Will staff be required for cooking, cleaning, or transportation?
Do you have information on:◦ FICA ◦ Unemployment Compensation ◦ Worker’s Compensation
Will you offer additional benefits such as:
◦ Health insurance◦ Tax deferred annuities◦ Child Care◦ Paid Sick Time◦ Paid Holidays/Vacations
Will you offer a percentage of salary for benefits and let each staff pick the one they want?
What insurance will you purchase?
◦ Liability
◦ Building and premises
◦ Personal property
◦ Professional liability
Educational ◦ Will you need additional furniture for the children?
◦ Will you need additional toys/manipulatives for: large and small muscle activity dramatic play creative expression intellectual stimulation
Kitchen ◦ Will you need additional equipment for meal preparation (stove,
pans)?
Housekeeping ◦ Vacuum Cleaners
Office ◦ Will you need additional equipment for the administration of
your center? (computers, desks, copiers, file cabinets, etc.)
Rent/Mortgage
Utilities (Electricity, Heating, Water)
Taxes
Maintenance & Repairs – (Plumbing, Lawn Care, Repairs & Maintenance of Building and Equipment including Air Conditioners, etc.)
Telephone – Land Lines and Mobile Telephones
Licensing Fees Educational - Paper, Paint, Glue, Toys and Games, etc. Kitchen Supplies – Dish Soap, Cleanser, Blender, Paper
Supplies, etc.
Housekeeping Supplies – Paper Supplies, Soap, Toilet Paper, etc.
Office Supplies
Postage Expense
File Folders, Paper, Pens, Ink Cartridges, Toner, etc.
Food - What meals and snacks will you serve?
Will the children bring their lunch or will you serve one?
Will you serve breakfast? (To figure for a meal or snack, multiple the average cost of one serving X the # of children X the # of days)
Will you have a Website?
Will you use social media i.e. Facebook, Twitter
Will you be advertising in the Yellow Pages?
Will you pay for advertising in the newspaper?
Will you distribute flyers and/or brochures?
Will you have business cards?
Will you mail brochures or packets to prospective parents?
Will you email your newsletters to parents or hand them out?
Will you be utilizing any Outside Services?
◦Accounting
◦Legal
◦Transportation
◦Construction
◦Cleaning
What will you or your staff participate in to meet the continuing education requirements?
Will you pay for entry level courses?
Will you pay for registration fees, travel, meals and/or overnight expenses for your staff?
As we said earlier, budgets are made to help
meet objectives. For example, are you trying to minimize costs, increase revenue, gain a higher market share (through increased sales), etc. It is therefore important that you identify your objectives so that you can coordinate the budget to help achieve them.
After you have identified your objectives and determined the period that you will budget for (1 week, 1 month, 1 year, etc), you will need to gather information to guide you when compiling the budget. This will include past and current performance figures obtained from profit and loss accounts, balance sheets and previous cash flow forecasts. This information can then be used to identify likely sales numbers and costs in the future.
LICENSE CAPACITY
FUNDRAISING
ACTIVITES INCOME
OTHER INCOME
Tuition is established by the following formula:
◦ Multiply the Tuition Rate by the # of Children in a particular age group
◦ $150 x 10 toddlers = $1,500 per week x 52 weeks = $78,000 per year
◦ Do this for every age group and every room
SALARY
RENT OR MORTGAGE
INSURANCE
SUPPLIES
MAINTANCE
Jan - Mar 13 Budget $ Over Budget % of Budget
Ordinary Income/Expense
Income
1715 · Regular Income
1718 · Tuition Income 74,475.55 83,500.00 -9,024.45 89.19%
1717 · School Readiness Subsidy 5,220.85 4,386.14 834.71 119.03%
1716 · VPK Income 30,476.84 32,150.00 -1,673.16 94.8%
1714 · Grant Income 0.00 1,179.83 -1,179.83 0.0%
1720 · Returns & Allowances
1724 · Return Checks -560.00
Total 1720 · Returns & Allowances -560.00
Total 1715 · Regular Income 109,613.24 121,215.97 -11,602.73 90.43%
Total Income 109,613.24 121,215.97 -11,602.73 90.43%
Expense
6311 · Maintenance
6312 · Janitorial Exp 314.58 269.50 45.08 116.73%
Total 6311 · Maintenance 314.58 269.50 45.08 116.73%
6100 · School Expenses
6104 · School Supplies 954.29 714.64 239.65 133.53%
Total 6100 · School Expenses 954.29 714.64 239.65 133.53%
6291 · Waste Collection 249.00 241.02 7.98 103.31%
6275 · Training 180.00
6000 · Advertising 300.00
6120 · Bank Service Charges 27.00 12.00 15.00 225.0%
6180 · Insurance
6185 · Liability Insurance 1,532.78 1,500.00 32.78 102.19%
Total 6180 · Insurance 1,532.78 1,500.00 32.78 102.19%
6550 · Office Supplies 43.31
6301 · Salary Costs
6167 · Employee Wages 80,761.35 86,525.74 -5,764.39 93.34%
6165 · Employee Health Insurance 3,069.48 5,525.68 -2,456.20 55.55%
6169 · Payroll Taxes & Workman's Comp 11,544.61 11,000.00 544.61 104.95%
6163 · Payroll Delivery Fees 90.00 90.00 0.00 100.0%
Total 6301 · Salary Costs 95,465.44 103,141.42 -7,675.98 92.56%
Total Expense 99,066.40 105,878.58 -6,812.18 93.57%
Net Ordinary Income 10,546.84 15,337.39 -4,790.55 68.77%
Net Income 10,546.84 15,337.39 -4,790.55 68.77%
