What are the Challenges?
Finding and retaining staff
Staffing issues are responsible for some of the largest financial challenges faced by owners. After all, your school is only as good as the staff who is responsible for taking care of the children all day. Finding and training qualified and motivated staff is difficult by itself, and retaining these essential employees is that much harder in a tight labor market. However, your staff is the face of your school and arguably the largest factor in driving your school’s reputation. Keeping your staff happy and engaged, and showing them a path of growth and enrichment, is critical to your long-term success.
Managing cash flow
Most owners have strong intuition and initiative, but that doesn’t mean they have strong budgeting skills. Managing your school’s cash flow effectively can have significant impact on your bottom line. Labor and food costs, financing/loans, benefits and insurance, marketing, and capital expenditures – it can be a challenge to determine what provides the best return on investment.
Inadequate wealth-building strategies
The common theme between owners with a long career ahead of them as well as those ready to start the next chapter in life is that they feel they have not taken the time to do proper planning. You may think of your school – particularly the real estate – as your nest egg. However, there are tremendous wealth-building strategies and financial planning opportunities for owners regardless of what stage of ownership they are in.
A fresh start + the right track
There are a growing number of owners new to the industry after leaving an old career behind, many times in the form of a husband and wife team. Becoming an owner requires a significant upfront capital outlay. There is also the concern of what to do with other savings, notably money that you have accumulated in a retirement plan with your former employer. Additionally, almost overnight, one or both spouses may transition from a steady paycheck from an employer to relying on the school to provide an income for your family.