How To Start A Quality Daycare

membership ________
Audit
________
Annual payment on start-up loan
________
Total expenses
________
Income
Fees (Assess 90% enrollment**; no. of children x
enrollment % cost/week x no. of weeks) ________
Fund-raising/donations
________
Total income
________
* To cut operating expenses, you may be able to find
volunteer aides through local community youth
employment programs.
**Since enrollment is rarely a consistent 100 percent,
it is safer to start estimating at 70 percent and
work up to 85-90 percent.
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Monthly Operating Expenses
The primary source of income for your center will be fees. It is important to determine if this income
will be enough to pay each month's bills. An estimated cash flow projection, such as the one in Table
3, will help you make this determination. In this sample, all income is generated by monthly tuition
fees.
Also, be sure to complete a cash flow sheet for each month. This will enable you to maintain an
accurate record of business income and expenditures for projection and tax purposes. If you are
operating your center from home, such a record is especially important to keep track of in-home
deductions (see page 8 under Tax Laws).
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Table 3 -- Estimated Cash Flow Forecast
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Cash
in bank
(first
month) 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |etc.
_____________|________|___|___|___|___|___|___|___|____
| | | | | | | | |
Total cash | | | | | | | | |
(first | | | | | | | | |
month) | | | | | | | | |
_____________|________|___|___|___|___|___|___|___|____
| | | | | | | | |
Expected | | | | | | | | |
tuition | | | | | | | | |
fees | | | | | | | | |
_____________|________|___|___|___|___|___|___|___|____
| | | | | | | | |
Total | | | | | | | | |
receipts | | | | | | | | |