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SETUP A DAYCARE
Preparing A Budget For Your New Daycare Setup
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Preparing a Daycare Business Budget
You’ve drawn up your day care business plan, decided on your daycare marketing plan and even detailed your daycare operations plan. Now you need to sit down to calculate how much money you will actually need for your daycare business. But how would you know how much you will need if you do not know what sort of cost you will incur? Whilst there are many types of setup costs when you start a daycare new businesses, here’s a list of costs that a new daycare business will likely to incur. 1. Set up costs First, let’s look at the physical centre. You’ll need to work out how much the renovations are going to cost you, what sort of furniture and fittings as well as office equipment which you are intending to purchase for your daycare centre. Don’t forget such as fire alarms, smoke detectors, cutlery, mats and decorative items such as notice boards, posters and clocks etc. Sometimes, these small items can add up to quite a lot so be a little careful in that area. Next, think about all the paper work cost such as licenses, permits, setting up of bank account, lease deposit, commission paid to property agent for helping you secure your centre. Basically any administrative cost. 2. Staff costs Based on the findings, calculate what you are intending to remunerate your day care staff. Next, you will need to look into the auxiliary cost such as health insurance, medical benefits, taxes, sick or vacation leave and bonuses. On average, such cost will be about 15-20% of salary. 3. Operating cost Drawing up budgets is an exhausting affair but a good budget and forecast is absolutely necessary as it helps the owner to anticipate the amount of capital and operating cost he/she will need to set aside for a smooth running of the daycare business, be it a daycare facility of home daycare. Happy budgeting!
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