For today’s proven management solution, I want to talk to childcare business owners about the most important information that you must gather in your business. So if you’re looking for ways to run your business more like a CEO, continue reading this blog post.
I am so excited because the all-new Learn New Systems webinar is now live. You can click this link to secure your spot.
We have owners from all over the nation come into the learning systems webinar. I don’t want you to miss your spot. So be sure to get yours today!
In this training, you’re going to discover more than one way to take your business to the next level.
Today, let’s talk about one of those new systems that I believe is a game changer for childcare business owners, especially if you want to manage your business more like a CEO. If you have multiple childcare locations, and you’re not doing this step, then that’s where your problem is.
One of the realizations that I came to work on in multiple locations is that I have to run my business with NUMBERS. Now the reason why I say that is because when I first got started in childcare, it was from passion.
It was from love. Like many of you, I was willing to do whatever it takes to see my vision come to pass. But now when I look back and track my efforts, I realized that when I started tracking my business and when I started having data, I started running my business based on data that was a game changer for me.
So let me go through our Learn New Systems document, Key Performance Indicators (KPI)
KPI’s are the standards that you set for your organization and it includes your expectations so that your team can meet what you require in your organization. So what you require is what your team will provide for you.
So here’s my story. When I got started in childcare, I used a local accountant, and there was no data given to me. There were no strategies for managing my finances. Basically, I was told to keep up with your receipts. And then along my journey as I began to duplicate locations, I was trying to figure out how much of this money that I’m making should go towards food and how much of this money that I’m making should go towards consumables. The reason why I had to ask myself that question is because if I don’t have a limit, I’ll keep spending. What about you?
And so because I didn’t have the right information, it caused me to go on a search. So I started searching what would be an industry norm for a childcare my size for a business that generates this amount of revenue. And so that we study in that direction, I discovered that there are some performance indicators that one must understand in order to set this up.
So many of you may own multiple locations that you have no clue on how to set your standard. But what I do want you to walk away with is that when you come to the Learn New Systems webinar, I’ll teach you an introductory way of setting those standards, and so here are some of the criteria that you need in order to set that particular standard.
But I want to change that mindset because if you’re thinking that way, nine times out of 10 you’re leaving hundreds of 1000s of dollars on the table because you have spaces that you’re not working towards filling in because maybe there’s a lack of marketing, a lack of automation, a lack of staff, a lack of systems, but in order for you to really produce on the level that you have the capability for. It says if you weren’t capable, you wouldn’t have that capacity that you’ve been licensed for. So that’s zero excuse because you have it, you’ve been given it. But you must shift your mindset to that zero excuse approach and say what can I do to fill this spot in my business?
So in order for you to have a key performance indicator, your budget is going to be based on 85% of your capacity. So that means that if you walk through any of your classrooms and your classrooms are not at 85% then your business is not performing according to your standard. And then that’s when you have to find the problem. What’s the problem with why my enrollment is not at the place it should be? Once you go through the process of finding the problem. Now you’re able to implement the strategy to help you move forward in the right direction.
If you were to do that assignment with me today, what would you tell me the difference would be in money. So to get to the difference and money you would take your current enrollment number of children currently inside of your business versus or minus the capacity, the amount of children that that building is actually licensed for and what would that number be that number is… I have an enrollment of 100 children. I have a capacity of 150 so that means you have a difference of 50 students that you need to bring into your business. And so then you would take your average weekly rate and multiply it by 50.
Once you do that, some of you may notice that man, I have $5000 $10,000 $12,000 each week that I could be generating from those spaces if I was to feel my capacity to full enrollment.
And then once you multiply that by four, let’s just multiply 4 by 5000. That’s $20,000. And then when you multiply 20 by six, that’s $120,000 and then when you multiply 20 by 12, that’s $240,000 that your business has the capability of generating.
But you have a few mindset pieces that’s keeping you from going into your next to a quarter of a million dollars is a big difference between a millionaire and a six six figure earner. So you either are going to move into your millions or move into your eight figures.
You know, a quarter of a million dollars is a difference between 1.7 and 3 million, 4 million 5 million, 6 million 10 million 11 million so you have to think differently about your potential.
And so in my closing guys, there’s so much more that I’m gonna go through. We’ll do a video series so that I can continue to help you capture the right information from your business. But in my closing is this type of mindset and this type of thinking that causes you to take a look at the man and woman in the mirror and decide what is keeping me from my full potential and what’s keeping me from operating on a level I should?
If it’s because you don’t have the right systems in place and you’re not tracking like this. Let me pour more into you join me in our webinar, www.LearnNewSystems.com
You’ll get an opportunity for me to go deeper and you’ll get the worksheet.
I hope to see you on the webinar.
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