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Daycare Providers Need to get Paid Too Collecting for your Services

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[youtube]http://www.youtube.com/watch?v=qkMMfk5Oy9Q&feature=youtu.be[/youtube]

One of the major issues that daycare providers must content with is collection problems.  With the more traditional methods such as using cash or checks, parents are sometimes late and occasionally write checks that bounce.  To combat late payments and bounced checks, many providers turned to using payment coupon books or automatic processes such as automatic withdrawals, PayPal, or credit card.

Checks or Check

Before the advent of many of the automated processes, the only way for a customer to pay daycare providers was with cash or a check.  Unfortunately, this created all kinds of collection problems.  A receipt had to be generated to show payment, the parent might struggle with on-time payments, or they might even write checks that had insufficient payments, which could result in penalties assessed to the day care.

Payment Coupon Books

Payment coupon books are booklets set up with reminder slips that include the name, amount, and date due. Though it helps some parents to stay organized there are still a host of problems.  First, these do require the daycare providers to pay to have these printed.  It also does not alleviate some of the other collection problems such as checks with insufficient funds.  Plus, it doesn’t work if parents don’t use it.

Automatic Withdrawals (ACH)

To combat late payments and bounced checks, many daycare providers turn to automatic processes such as automatic withdrawals from bank accounts (ACH).   With this method, receipts and late payments are eliminated because parents instruct their banks to allow the daycare to make automatic withdrawals for the specified amount at regularly scheduled intervals.  However, though the daycare does not have to deal with bounced checks, insufficient funds can still be a problem.

PayPal

Some daycare providers are looking to PayPal to also help solve some of these problems.  The customer can use a PayPal account to pay on-line, which is a huge convenience factor for some parents.  Obviously, there is no need for a receipt and insufficient funds are usually not a problem.  If funds are not available in the PayPal account, the difference is drawn from the bank account or from a credit card account.  Like the automatic withdrawal, parents can also schedule the payments in advance.

Credit Cards

Finally, some daycare providers allow for their customers to pay using credit cards.  This can be done in person or on-line.  It eliminates bounced checks, but a customer can have a credit card rejected due to credit limits.  Like automatic withdrawals and PayPal, credit cards do not require a receipt and can be regularly scheduled to avoid late payments.  There is, however, a small fee associated with each transaction for the vender – usually around two percent.

Over the years, daycare providers have learned that automated processes such as automated withdrawal, PayPal, and credit cards have solved many of their collection problems.  Unlike with cash or checks, late payments and insufficient funds are greatly reduced.  However, no method is perfect, and daycare providers must weigh the benefits of each before choosing the preferred.  They should also be prepared to accept more than one method.

Child Care Providers Commit to Nurturing the Relationship with your Customer

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[youtube]http://www.youtube.com/watch?v=ptwk-5QJYhk&feature=youtu.be[/youtube]

Once parents have enrolled their child, a child care center may make the mistake of thinking their marketing effort is done.  It is not; you as a child care provider must nurture the relationship with the customer by engaging parents in a variety of ways such as hosting events or providing invaluable information.  You can also cross-sale products and even up-sell services providing customers with desirable products and services and the center with additional income.

Parent Engagement

As a child care provider, you must actively seek to build a relationship with parents through activities designed to make parents feel like they are a part of their child’s life.  Event announcements and email updates on a child’s progress, along with pictures or videos of the child engaged in an activity can be very powerful.  Your center’s website could also host a forum that could build community among the parents and staff.  Additionally, your center should invite parents in for events such as breakfast with their child.

Hosting Events

Another way to engage parents is to host events that provide a service for the parents or children.  Experts can be invited to present seminars on hot topics such as ADHD, child predators, on-line safety or even fire safety.  You the child care provider could even offer kits for child identification purposes.  Your center could also offer a parents’ night out during December to provide parents with some much needed shopping time.

Establish Expertise

Parents must feel like they can trust their child care provider.  Maintaining a website or handing out newsletters with informative articles can go a long way to reassuring parents regarding the competency of the staff.  Additionally, the center can invite experts to write articles on a variety of topics such as immunizations or potty training.  As a result, the child care center will be the first thing a customer thinks about when looking for information or help.

Cross-sell Products

A child care provider can also cross-sell products that are convenient and desirable for the customer.  Not only does this help cement the relationship with the parents, but it can provide additional income for the center.  Some examples of products could include book clubs, educational toys, or even environmentally friendly or kid safe cleaning products.  Your center could also partner with the local YMCA to provide children with swim lessons during the day.  What parent doesn’t want that?

Up-sell Programs

Another way to increase the life-time value of the customer is to up-sell services.  Many child care providers make the mistake of offering one flat rate for their services.  Instead consider offering bundling them into packages with catchy names such as “The Little Einsteins” for a program for gifted children.  Other additional services could include programs for children with disabilities, child transportation, extended hours, or a sick care child program in case a child has a mild illness.

Ultimately, as a child care provider, you must seek to actively build a relationship with parents because this ensures customer loyalty and can provide additional income for your center.  Parental communication, hosting events, providing useful information can all help build this relationship.  Cross-selling and providing additional services can also make the center invaluable to the customer and can even provide the center with an additional source of income.

Why is running my Preschool more Difficult than I imagined when I Started

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Opening any new business can prove far more difficult than predicted; this is especially true of opening a preschool, because you, the owner, are often being driven by a desire to work with children. However, after the initial excitement, the owner can be swamped with stress and steep learning curves in terms of licensing requirements, staffing, finances and marketing. As a result, there may be little business growth which further exacerbates the problems.

Stress

A new preschool owner may not be prepared to handle the daily stress brought on by a new business. The pace is often much more hectic than imagined and is complicated by dealing with difficult situations such as discipline and unhappy parents or staff. Money concerns and steep learning curves in terms of administrative duties can truly leave owners feeling like they are in way over their heads.

Licensing Requirements

Licensing requirements can be one of the most difficult things to master and can have the most dire consequences if the owner fails to be thoroughly knowledgeable in this area. The process is often very complex and varies from state to state. Failing to follow the guidelines can result in a preschool being sanctioned or even shut down. As a result the preschool can lose the trust of parents or even be sued if a child is hurt while attending the preschool.

Staffing

Managing staff can also be much more difficult than imagined. First, you have to attract and retain highly qualified staff members, because this is the most important factor in attracting and retaining parents. You must also make sure that background checks are performed and must deal with a variety of scheduling conflicts. You must also learn to delegate so as not to be totaling overwhelmed – not an easy task for those who like to be in control.

Marketing

Those owners who attempt to open a preschool without some understanding of marketing will see very little business growth. It is true that word of mouth is the most effective tool in a preschool’s arsenal. However, that is not true in the beginning and you must be prepared to aggressively market using a variety of tools such as mass e-mailing and Social Networks like Facebook. As an owner, you must also understand how to track marketing results in order to make informed decisions.

Finances

Ultimately the success or business growth of any preschool is measured in terms of finances. This too can come with a steep learning curve and managing finances may require the help of an expert or the need to learn special software. Then, there are cash-flow problems. Start up costs can require almost three months of operating cost without any incoming money. Also, deadbeat parents must be dealt with, which is often hard for those who are tender-hearted.

As a result of these issues, it is simply not enough to be passionate about children. Preschool owners, like yourself must be knowledgeable about licensing requirements and must be able to handle staffing, marketing, and financial issues. Unfortunately, these are often underestimated by owners who are experiencing the thrill of opening a new business. However, failure to get a handle on them can result in a great deal of stress for you, the owner and perhaps even ultimately failure.

Competitor Analysis What Child Care Business Owners Need To Know

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Why should you a Child Care Business Owner worry about performing a Competitor Analysis?  Simple – knowing the strengths and the weaknesses of the competition can help a small business gain the upper hand. It allows the child care center to design unique services and marketing techniques that can snatch the attention of potential clients.  Here are the top five things you should know about your competitors: business profile, customer profile, facilities, services and marketing strategies.

#1: Business Profile

First, when doing a Competitor Analysis consider the business profile.  This information could include ownership, size, history, staffing and management to name just a few points.  For example, if a childcare center is a part of a national chain that has a huge impact on their buying power and advertising dollars.  What about history?  If it has been in business for a number of years it might be possible to gain a competitive advantage by emphasizing the innovating techniques and more modern facilities.

#2: Customer Profile

As a Child Care Business Owner you must also consider the profile of the competitor’s parents.  This information could include the major employers, the income and education level of the parents, and the number of children per family.  For example, are these white collar or blue collar parents? Is this the same market?  Also, take a look at customer retention and satisfaction.  What’s being said by parents on Social Media?  Are there negative comments or positive?  How can this be used?

#3: Facilities

A Competitor Analysis should also take a close look at the facilities.  Such things as spacing, parking, location, and playground equipment might all be factors that could provide a competitive advantage.  For example, does the competitor go above and beyond when it comes to the space required by licensing requirements?  What about the location?  Is the competitor farther away from major employers or is the access inconvenient?

#4: Services

Then the services provided by competitors must be considered and compared to the your own services.  For example, what kind of curriculum is being offered?  Is it new and innovative?  If not, how can this be capitalized on?  Other concerns might be special services such as longer hours, special needs children, sick child care, or after school program.  Also, what are the rates for these services?  The bottom line is provided the parents with the best value!

#5: Marketing

Of course, a Competitor Analysis must include an examination of the marketing strategies being used by the competitor.  What types of media is being employed? …traditional? ….Social Media? …Email Marketing?  Also how does their website hold up when compared to yours?  Can it be improved upon?  Can more useful articles be used to pull in clients?  Don’t forget to look closely at their advertising patterns.  Are they marketing anything new or aggressively?  Be prepared to counter any special offers.

As a Child Care Business Owner you absolutely must perform a Competitor Analysis.  It is the best way to take advantage of your center’s strengths and the weaknesses of the competitors.  In essence, knowledge is power.  To gain that competitive advantage, examine carefully the business profiles, customer profiles, facilities, services, and marketing strategies.  Once that information is clear, use it to determine the service to offer and how best to market them.

Marketing: Why Does It Take So Much Effort To Market My Child Care Center?

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[youtube]http://www.youtube.com/watch?v=rAip-dgEjC8&feature=youtu.be[/youtube]

Choosing the right child care center is never an impulsive decision. It is just too scary to place a child into the hands of an unknown entity. Instead, parents will carefully research their options and will make the decision when they are ready and not necessarily when your center is running a big marketing campaign. As a result, your child care center needs to have an active and continuous preschool marketing plan in place to see the most growth.

Reputation

The reputation of your child care center may be one of its most valuable assets and truly does require concentrated advertising effort to help maintain and spread. This includes marketing effort at retaining the current client base through activities that keep them happy and informed. However, you need to be aware that more is required, because not every new parent comes through word of mouth.

Cautious Parents

Parents tend to be extremely cautious when it comes to choosing the right child care center. They want a center that they can trust and that they know is reliable and respected within the community. A carefully crafted preschool marketing program can help relieve these fears by establishing your preschool as experts on children and it can emphasize your history and standings within the community.

On-going Marketing

Parents make the decision to place a child in a child care center when they are ready to do so and not when your center is running a marketing campaign. However, on-going advertising can help capture the parents’ attention at the right moment; it is a matter of opportunity at the right time. On-going marketing can also create a brand image which can lead a parent to feel familiar with your center.

Perceived Value

Your child care center must also put considerable effort into marketing perceived value. Parents are not necessarily looking for the cheapest preschool; instead, they want quality. Your child care center must find ways to market your uniqueness, convenience, reliability, and other factors that concern parents. Simply put – parents want quality child care and will not settle for an inferior preschool in order to save a few dollars.

Competition

Because parents are so cautious, they will likely spend time researching all of the child care centers in your area. A savvy preschool marketing plan must include taking the time to know what the competition is offering so they can counter. It is not so much the offer will tempt the parents to enroll their child, but that the parents will consider any offers that are out there when they are ready to place their child in a program.

In order to see enrollment increase, your child care center must put a lot of effort into advertising. You must maintain a positive reputation, overcome parental concerns, enhance the perceived value and be keenly aware of the competition.  In addition, your center must engage in on-going marketing so that your name is always the first to spring to mind when a parent is searching for a preschool.