Challenges Child Care Center Owners Face in Managing Their Wealth

Child care center owners in Georgia spend their time educating our children and fostering the growth of future generations. Their success comes from their desire to provide exceptional care and learning opportunities for children, with a commitment to employing a dedicated staff to promote a balanced learning curriculum. Creating such an enriching environment often leads to a demanding schedule that often precludes them from devoting the same time and attention to their own personal financial situations.

It is exciting to know that there are opportunities to take an educational, balanced and wholesome approach to addressing their financial challenges while still providing extraordinary care in a world-class learning environment.

 

We conducted in-depth research with experts in the industry (owners, business brokers, insurance agents, bankers and more) selected for his or her ability to provide insights into the financial issues that owners face in today’s environment.


 

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.

 
 

Teaching a Wholesome Approach

While these issues can pose significant challenges for many child care center owners, they can be systematically addressed to help increase the likelihood of achieving one’s goals. Consider this the ultimate curriculum:

To define wealth management, we use this formula:
WM = IM + AP + RM

The first element of wealth management (WM) is investment management (IM). Think of this as knowing how to make smart decisions about your money. Appropriate investment management can be the foundation for the owner’s ability to address their most important goals.

However, many owners need more than just assistance in managing their investments. This is why the advanced planning (AP) piece is so critical. It includes:

  • Wealth Enhancement – planning cash flow & savings, mitigating taxes

  • Wealth Transfer – helping to ensure heirs are taken care of

  • Wealth Protection – protecting loved ones and preserving assets

  • Charitable Giving – maximizing the impact of charitable gifts

This brings us to the third element of wealth management, relationship management (RM). To fully understand their clients’ most important goals, values and challenges – now and long into the future – wealth managers must cultivate personal, consultative relationships with those clients. In addition, the wealth manger’s relationships with other advisors and industry experts ensures that all challenges are identified and addressed.

Taken together, these three elements comprise a wholesome, systematic approach that can help many child care center owners make informed financial decisions for themselves and their families.

 
 
“Education is the most powerful weapon which you can use to change the world.”
— Nelson Mandela

As a child care center owner, the success of your school directly impacts your long-term financial success. Though the two are strongly intertwined, planning for one often far outweighs planning for the other. A wholesome approach that addresses your entire financial picture can increase the probabilities of achieving all that is important to you.

We’re here to help you change the world, by teaching you a better approach to wealth.