Childcare Center Success: How To Maximize Profits and Minimize Mistakes

By Grafton Milne

Are you ready to succeed?

This book contains insights and examples of what successful childcare centers do that sets them apart. You might read every chapter or go straight to the chapter with the insights and examples you need to create and maintain a successful childcare center. Author and childcare real estate expert Grafton Milne share

• Language: English
• Publisher: Grafton D Milne, PLLC
• Release date: May 10, 2023
• ISBN: 9798985438116

Grafton Milne

Grafton Milne has worked with many different childcare owners and directors throughout the childcare industry. In writing this book, he had the pleasure of working with childcare experts across the country to learn about Childcare Center Success. As a result, he provides a unique perspective from a 30,000-foot view of what it takes to run a successful childcare center. Grafton has earned his Certified Commercial Investment Member (CCIM) and Society of Industrial and Office Realtors (SIOR) designations, signifying that globally, he is among those at the top of his field in commercial real estate. With a one-of-a-kind niche in childcare real estate, Grafton is affiliated with and involved in many national and local early childhood organizations. He's an Ironman Triathlete and enjoys scuba diving and anything else that lets him experience the world with the people he loves. Grafton lives in Phoenix, Arizona, with his wife, Laurisa, and their four amazing children.For more information, you can contact Grafton at: graftonmilne.com [e-mail]

Book preview

Preface

As we entered the childcare center, something felt off. I’ve been in many low-income, low-budget childcare centers in several different markets, but this one was different. A local real estate owner asked me to stop by their shopping center that had a childcare center in it to see what would happen if the current childcare ever vacated.

As I’ve done many times, I engaged a local licensing consultant to join me to review the property’s condition from a licensing standpoint. We were both taken aback by what we found.

The facility looked and smelled like it had never been cleaned. There was food spilled everywhere and dirty dishes piled high. Children were walking around with soiled diapers. My heart ached for these sweet children and their families who probably didn’t think they had other options for childcare.

The sweet, little old woman who owned the center got very nervous about showing us one of the classrooms. As she tried to get us to keep walking, I gently pushed open the door to the classroom, and my heart stopped.

I saw a full bedroom setup with a grown man’s wardrobe spread across the floor. I had a sick feeling in the pit of my stomach as I saw a handgun and a lighter with what appeared to be drugs sitting on the counter less than ten feet from a room full of beautiful, innocent little children.

We called the police and waited for them to arrive. We left once we were sure things were properly handled.

That was the moment I knew I could make a difference helping providers understand the importance of having a safe, clean, beautiful childcare center. I know what that kind of center can do for a community and for the owner and staff.

When COVID hit in March of 2020, I felt like I was working triage in an intensive care unit for businesses. The childcare industry faced a tornado of new challenges, restrictions, and regulations. I received countless phone calls from clients, friends, vendors, owners, and directors throughout the industry. They were seeking advice and perspective on how to navigate those interesting times.

We discussed real estate strategies related to the mortgage or lease of their center. We also discussed business and marketing strategies, staffing strategies, and a whole list of other things. After a few weeks of this, I decided it might be time for me to write a book to serve as a resource for others who might be facing similar challenges. This book is the result.

I wanted to communicate to others how successful childcare centers succeed. I reached out to successful operators and childcare experts from around the country. They graciously shared their experience and knowledge with me. My experience in working with numerous childcare clients at a 30,000-foot-view gives me a unique perspective.

This book is by no means an all-encompassing guide to everything related to the childcare industry. But it is full of principles and wisdom gleaned from many successful childcare centers in many markets from across the country. I hope you’ll benefit from my experience and expertise and learn from Childcare Center Success: How to Maximize Profits and Minimize Mistakes

—Grafton Milne

Phoenix, Arizona

September 2021

Introduction

Success leaves clues.

—Jack Canfield, co-author of the Chicken Soup books and author of The Success Principles

What is a successful childcare center? This is one of those questions where you should take the long view. It’s easy to think a center is successful when enrollment is high, you’ve had a good year or two, and you have a one of a kind program and business strategy. In my experience, truly successful centers have two things in common.

A way of elevating and inspiring everyone around them. The children they’ve cared for use what they’ve learned in childcare throughout their educations and throughout their lives. Truly successful childcare centers enrich families, and communities as well. You’ll discover how successful centers do it in the pages ahead.

Truly successful childcare centers are well run. They comply with the array of licensing regulations with little pushback. Taxes are paid on time. The center is well maintained. Truly successful childcare centers make enough profit to pay the owners and teachers a sustainable income. They have a sufficient business acumen so the center can deliver quality childcare year after year. It’s not easy, but you’ll learn how successful centers do it.

Is This Book for You?

I wrote this book for people who are passionate about childcare and who want to own a childcare center. Some are new to the industry. Take Ted Batycki and his wife, Genna.

They own Natural Choice Academy in Phoenix. Before they opened their center in 2011, Ted was an experienced commercial banker. Ted says that they absolutely went into owning our childcare business because we wanted something for our own children.

Ted had a full toolbox of analytical tools from his education, and experience as a banker. His challenge was to learn to use those skills in a childcare center. If you’re like Ted, coming from business to childcare, that will be your challenge. I’ll show you how tools like budgeting and facilities management can be used successfully. You’ll also learn about some of the regulatory and operational requirements that are unique to childcare.

I also wrote this book for people who were experienced in the childcare industry but maybe have never run a childcare center before. Barbie Prinster is now the program manager at the Arizona Early Childhood Education Association. She describes an experience early in her career, when she became an assistant director in a childcare center, this way:

When I took over as an assistant director, I knew childcare. I could go into any classroom and make it work. But now, I’m in charge of a business. And now, I have labor percentages to work with. And now, I have a budget, and I have all these different line items. And I had to learn how to do all of that.

If you’re in a situation like Barbie’s, where you know the childcare part but not the business part, I wrote this book for you.

Simple Truths

If you’re looking for riches or easy money, you need to try another field. Barbie Prinster says she sees too many people who think that childcare is easy, like babysitting. You can make a decent living from childcare. The psychological rewards can be great. But if you’re thinking about making millions, your odds are probably better if you buy a lottery ticket.

Childcare is about caring for and educating children. If you believe that, you will probably gravitate toward the childcare tasks of your center. It’s important to do that well.

But if you don’t pay attention to fundamental business practices, you’ll have a hard time and may wind up without a center to run. You won’t be able to have a truly successful center unless you take care of the business.

You must manage the accounting so that taxes and fees are paid on time. You must deal with licensing issues and facilities management. You must learn to hire and supervise well. You must hire excellent teachers and pay them competitively. You must master the basics of marketing, otherwise, your center won’t be around for very long.

Four Important Concepts

I packed a lot of information and knowledge into this book. You’ll find many topics, ideas, and suggestions, but there are four important concepts that run through the book. You’ll come upon them again and again.

Children come first. This is childcare, and children are the most important part of it. They’re why we do it. Ted Batycki said this much more eloquently than I could. Here are his words:

What’s right for children is right for our business. We ask ourselves that question all the time. And so, we talk about our business. We understand the finances, we understand how to make money in this business. But we always ask