Preschool Budget for 60 Students?

Question

Hi, I am planning on opening a Preschool and I was wondering if someone can help me with the monthly budget. I am getting confuse with all the payments I have to make and I don’t see any money gain. Please help me!

60 Preschoolers: 3 teachers and 8 assistance salary

Director (my salary)

1 lady for cooking and cleaning

$330 a month per child 7 am to 6 pm

$375 starting fee for each child plus $20 for insurance yearly

$3,600 Breakfast, snack and Lunch ($3.00 a day per preschooler)

1,500 Rent

$1,000- Water and electricity

$600- Loan

$120- Phone and internet

(All of this is without daily activities materials and Puerto Rico’s 7% sales tax)

ALL OF THIS FOR: $330 a month per child 7 am to 6 pm

I guess you are thinking I am crazy for only charging only $330 a month but I called many Preschools and Day Care Center in my area and that’s what they are charging for a 3 year old and even less for a baby. I called one that said they charged $260 a month for 11 hours for preschoolers and $180 for babies. It just doesn’t add up! My calculator keeps giving me negatives!!! This is driving me nuts! I love kids and I want my own business but I can’t live out of love. Can you HELP ME?!!!

Answer 1

Hi

Our school charges children $175 a week for children to attend. That includes breakfast, lunch, snack. It is full day from 7:30-5:30.

Teachers..How many classrooms are you going to have and with how many children in each one? Are you going to seperate the children by age or are you going to have a combined classroom for 2.9-4 and then 4 1/2 and 5 have their own classroom?

You could have the teachers do the cleaning..and hire a cook just for the morning from 8AM-1PM. The cook could cook breakfast and lunch and then you could just throw together a simple snack. Make the juice ahead of time, or have the children make their own snacks (they love to cook).

Are you going to have a dumpster for trash? Don't forget to figure in classroom supplies and trash removal as well as toilet paper, paper towels, soap.

Have you thought about starting out as a home day care and then building up..or starting off with less kids in a smaller house setting...and then building up. Once you get your foot in the door.

Are you going to offer your teachers health insurance, dental, retirement plans, incentinves (trainings, etc.)? If they have children will they be able to attend the school for cheaper prices?

Are you going to charge the infants more (and provide formula, diapers, etc.)

Just some things to think about.

Great idea though....call around ask for prices of supplies, etc.

Answer 2

You are right, the numbers don't add up. Nobody gets rich in this business except the owners of very large day care centers, preferably more than one. Why not try Family Day Care first, build up a reputation and then move on to a Center. Also, I do not know where you are located but those fees are terribly low. In my area full time care for a preschooler is about a thousand a month. Check with your local Resource and Referral Agency.