Child Care and the Lack of Business and Financial Management Training

Like most college degree programs, an Early Education degree often includes little, if any, training in business and financial management. Most degree programs provide specialized knowledge, training, and skill sets to allow individuals to develop expertise in a specific area. Such is the case with a degree in Early Childhood Education, where the required courses focus on child development, classroom management, early literacy, special needs, curriculum development, assessment, evaluation, and practical application of knowledge and skills in a child care environment.

Yes, most undergraduate Early Childhood Education Degrees will also include at least one course in program administration. This course will include sections on leadership, program management, working with families, and communication. It prepares individuals to lead and manage early childhood education programs. Sometimes, a high-level overview of budgeting and financial management may be touched on, but little in-depth training or practical application is included.

It is estimated that only about 22% of child care business owners have an undergraduate degree in business administration, and only a very small percentage have earned a graduate degree in business administration or an MBA.

Of course, formal education is not the only way to obtain the business and financial management knowledge and skills needed to manage a child care business successfully. However, most adults do not seek additional formal or informal training or invest in self-learning that focuses on business management. Yes, most states require continuing education hours yearly for child care licensing. Unfortunately, the courses and workshops offered regarding the business and financial management of a child care business are limited. And, even if offered, a small percentage of child care business owners will participate. Most child care business owners will opt for leadership training, culture development workshops, team building seminars, and similar training. These topics are important, but should not be considered a substitute for business and financial management training.

82% of small businesses, including child care businesses, fail due to a lack of financial resources and management. It is estimated that as many as 60% of all small businesses are not profitable. I have seen these statistics first-hand, providing financial management consulting for child care business owners for almost 30 years. Child care businesses fail and go out of business, not because they do not offer great early education programs, not because they do not have an excellent reputation in their community, and not because there is not enough demand for child care in their area. The number one reason child care businesses fail is a lack of financial management.

Sound financial management has always been critical to the survival of a child care business. However, in recent years, the complexity of financial management has increased due to changes in public funding, ongoing inflation, the declining ability of parents to pay rising tuition rates, and shifting markets with more public offerings of preschool and after-school programs.

Some child care owners, seeing the continued decline in their business financial performance, adapted quickly, obtained the financial management training they lacked, and made hard but necessary changes to keep their child care business open and provide an appropriate level of personal income and business profitability to ensure the long-term success and sustainability of their business.

Other child care owners are still struggling financially and not taking steps to learn how to manage their child care business financially. Their lack of action is for many reasons: confusion as to what is included in sound financial management, fears about not being able to learn financial management and work with numbers and math, and continuing to hope and pray that there is another grant program, or federal or state program, on the horizon that will provide the financial funds they need to keep their child care business open.

Child care is a business, and financial management is the number one aspect of a successful business, no matter the industry. Whether you plan to only operate your child care business for a few more years or many years into the future, to have a successful business, you must learn how to manage your child care business financially. The good news – going back to college or taking an expensive MBA program is not required.

The ChildCareOwner—CEO Certification Program provides specific knowledge and skills in the child care business and financial management that anyone can learn. It will result in a profitable, sustainable child care business when applied consistently.

• No, you do not have to be a math whiz – only be able to do basic math – add, subtract, and divide – and a simple calculator can help make this easy.
• No, you do not need any advanced analytical skills – just the ability to think and apply common-sense principles.
• No, you will not have to lock yourself in an office and pore over financial spreadsheets for hours daily to create a financially healthy, profitable child care business.

The ChildCareOwner – CEO Certification Program will provide the financial management basics you need, not over months, but in one week of highly focused and specialized training. Not lectures and theory but hands-on application, case studies, small group exercises, and activities designed to help you apply the information and implement the knowledge gained to your child care business.

As a child care business owner, you determine your future and the future of your business. Our job at ChildCareOwner is to help you create a successful, financially healthy, and sustainable child care business. We hope you will join us for a learning experience you will never forget and one that will create the highest return on any investment in education and yourself you will ever make as the owner of a child care business.

https://childcareowner.com/child-care-owner-ceo-certification/