Many child care centers are started by individuals or groups with limited resources. But the start up periods requires major amounts of capital. Later funding is required for specific equipment like new computers, staff training, etc.
Start up Funding: Startup capital is the money that must be available before the programme begins and the money needed to support the initial programme operation until the flow of tuition and other funds is sufficient to support the ongoing programme.
Money for space, equipment, office supplies, and some staff salaries must be available during these early months before the center opens. The enrollment is low during first few months of operation, cheques from funding sources may get delayed, hence it is wise to have sufficient capital on hand to operate the programme for at least 6 months. Most agency sponsored programmes are non-profit and are eligible to receive funding from other community or governmental agencies once there is an established, ongoing programme to fund.
Operating Funds refer to the amount needed to run the center and must include all the budget items under operating budget. Once the facility is established and the basic equipment has been purchased, income must be adequate to ensure daily programme operation. Many centers have depended heavily on tuition, government funds to provide the operating funds. In determining the amount of funds needed, a breakdown chart is very useful. The director can prepare the chart by first determining the fixed costs of operating the center such as rent, utilities, and director’s salary. These costs remain same.
Variable Costs: These are the costs for operating the programme that change as children are added or subtracted.
Last modified: Wednesday, 8 February 2012, 1:08 PM
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