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I know every situation is different, but I was just wondering how long it took before you made money and were able to make a paycheck? In my case, we don't live in building where the daycare is so our bills are higher. Actually it's even more confusing than that. We have one building where no one lives and that's where our infants are, and another two story building as the preschool in the bottom level and I live in the upstairs. So the daycare pays all the bills at one location and half the bills at the other location. The preschool is a brand new building so we had lots of start up costs like furniture and supplies and stuff. We have a total of 25 kids and 3 PT workers bc so many of them are babies. It's taken us longer to make a profit than we hoped. Is it normal? I'm sure when the daycare is in your own home and you are the only worker it's a totally different situation. Sometimes I really hate being the owner and wish someone else could do all the behind the scenes work.
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I only have one building (a single family house) so I understand what you are saying about the financial obligations being different than provider's working out of their homes.
I opened 2 decades ago so again my situation may be unique but I bet it was a full year to a year and a half before I actually started seeing any type of profit.
My DH had a great job when I first opened so he definitely kept us afloat.
After I established the business and it was able to support itself, he quit his job and went into business for himself. I helped keep him afloat until his business was off the ground and running in the black.
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It sounds like you have a really nice set up!
My daycare is in the house I live in, in the lower level. I opened last March, and it was August when I was able to stop spending money from savings. I did put a lot of savings into the start up, and I haven't been able to put that money back yet. Up until December I was zeroing out at the end of the month after all of our bills, car payments, etc. I raised my rates in Jan and was granted 2 more spots, which puts me up 1000 at the end of every month.
So, the short answer is, it took me 10 months to get into the black, but only 6 to zero out.Comment
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I think one of the mistakes providers have made when starting FCC homes here are trying to "hire" employees even if the daycare is in their home. They do not want to work it themselves and I think you have to in order to make money. Mom and I have worked together for over 20 years as a partnership but if she ever retires, I will go to ratio for one caregiver. The taxes, particularly self-employment tax is a killer if you "hire" someone that is not family...I am mentoring a lady right now that I am trying to convince of this very thing! She is always complaining about payroll.
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I think this is true. Atleast for me. I know if I hired some one, it would be all my profit.I think one of the mistakes providers have made when starting FCC homes here are trying to "hire" employees even if the daycare is in their home. They do not want to work it themselves and I think you have to in order to make money. Mom and I have worked together for over 20 years as a partnership but if she ever retires, I will go to ratio for one caregiver. The taxes, particularly self-employment tax is a killer if you "hire" someone that is not family...I am mentoring a lady right now that I am trying to convince of this very thing! She is always complaining about payroll.
I stay in ratios at the maximum enrollment for one caregiver at all times. Works financially for me. I wont lie, I'd love an extra set of hands sometimes but I also appreciate the "flying solo" feeling too.
My DH comes in daily and helps with lunch but doesn't handle anything other than cooking and serving. He doesn't get involved in redirections, reminders or any other basic care duties (diapering, feeding, holding).
He does however engage in some major playtime. He slides, throws snowballs, builds forts, plays catch and tag, has squirt gun fights, pillow fights, digs awesome holes, builds towers and stays in the lines when coloring.
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This is my day, too . :I think this is true. Atleast for me. I know if I hired some one, it would be all my profit.
I stay in ratios at the maximum enrollment for one caregiver at all times. Works financially for me. I wont lie, I'd love an extra set of hands sometimes but I also appreciate the "flying solo" feeling too.
My DH comes in daily and helps with lunch but doesn't handle anything other than cooking and serving. He doesn't get involved in redirections, reminders or any other basic care duties (diapering, feeding, holding).
He does however engage in some major playtime. He slides, throws snowballs, builds forts, plays catch and tag, has squirt gun fights, pillow fights, digs awesome holes, builds towers and stays in the lines when coloring.
It took me a good 6 months from opening as licensed, to justify not getting a ft job outside of the home. In two-three months, I was not spending savings . I was full pretty quickly & have been lucky to stay full,. Enrollment is jkey, obviously. Like bc , I also stay at max capacity .Comment
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I have to say, I have 2 employees and I am still up at the end of the month but,I live in an extremely high cost of living area (DC), and my tuition is high, but I can still pay my assistants $10/hour b/c the centers are paying $8.70, and in this area, without a college degree, you will not find a job for more than $10.
I can have 5 without an assistant, and 12 with (with a special permit). I pay my assistants a total of 1.5 children's tuition, so as long as I have 7 enrolled, I'm still up with an assistant, even after taxes, unemployment, etc. My assistants are here for a total of 50 a week between the two of them. (30 for one, 20 for the other)
All of the providers in my area who have the special permit, also have 2 full time assistant, although not all of them are paying above minimum wage, or paying taxes, I'm sure of that.Comment
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Because we have 7 kids under 16 months, when they are all here at the same time we have to have 3 people working. We have 5 total employees (my mom and I co-own and 3 PT employees who work 20-25 hours per week) in the two buildings with 25 kids total. Right now we can leave the schedule we have, the kids we have and cover the bills and our 3 employee's payroll but not pay ourselves. My husband does okay but since he's on commission it hurts big time when he has a bad month since I don't have any income right now. My goal this year is to find as many cost cutting tips I can as possible that we can use without losing an employee.
I truly don't see how any of you work alone. I wouldn't feel comfortable with the younger kids by myself. Once we have 4 kids under 16 months we have to have 2 people here anyways. Most times I do work alone with kids ages 3-11 and have anywhere from 5-12 kids by myself, but my other building is 50 feet away and a quick phone call and one of my workers or my mom can be over here.Comment
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