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Budgets

 

For most providers the thought of setting up a budget is a very complicated thing. Putting a budget plan together can be rather simple, and a very important business decision.

If you think of a budget in terms of incoming and outgoing funds it might be the easiest way to explain it. There are monthly expenses you are going to accrue as a provider. Some of those expenses will be the same each month. For example: Utilities, advertising, phone.

There will be expenses that fluctuate depending upon the number of children you have in care. Such as gasoline for transporting children, food, supplies, equipment.

If you get yourself a ledger book ( fancy programs will work too, but you should always have a paper copy to back up your records)
write down all of the funds that you will take in for a particular month. Including registration and supply fees,food program checks, state subsidies, and regular tuition. I don't generally recommend you figure in late fees or bank charges because you hopefully will not have to deal with too many of those.

On the left side of your ledger book mark down the income. On the right side of the book, you will note your expenses. Do not panic if you have more expenses than you have income. This just means that you need to adjust the belt a little bit.

By conserving materials, bulk purchasing, and limiting spending for the first year of business.. you will find that as you get established you will have more income and less expenses. The first 3 years are typically the hardest to break even.

If you plan ahead a month or so for what you are going to need to purchase, you will be able to save money because you aren't doing so much impulse buying. If you make more than one trip to the store a week, you are more than likely spending $10 - $20.00 more than you would have spent had you did a monthly shopping.

Budget tips will be coming soon! :)


 

 
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