Feature-Childcare-Slider

This story originally appeared in print as part of “Money in the Crib”

When seeking out child care, parents value two factors most frequently and in about equal measure: quality and affordability. But, with child care centers already operating at minimal profit, how can they maintain quality without also maintaining their prices?

More state assistance would help. Missouri ranks 38th in the nation in public pre-kindergarten funding, according to 2014 figures compiled by Raise Your Hands for Kids, a campaign working to pass an amendment to the state constitution that would raise Missouri’s tobacco tax rate with all revenue going directly back into improving the state’s early childhood education.

Carol Scott, CEO of Child Care Aware of Missouri, also thinks the system would benefit from a changing business model. “Most of the managers of these programs, they come into that job because they are the teacher who’s been there the longest when the last director has left,” Scott says. “They’re good at teaching young kids, designing a classroom and a curriculum. They don’t know business management in general, let alone financial planning.

“If you ask the majority of child care center directors, ‘What’s your break-even point on infants?’ they don’t even know what you mean,” Scott says.

Since the state makes it easier to open smaller centers than large ones, Scott says, she’s a proponent of bringing multiple smaller centers in an area together under one umbrella. Then, using organizations such as Child Care Aware to run the financial side of things, they can admit more students and cut down on revenue inefficiencies. A typical center runs at about 15 percent vacancy and 15 percent revenue loss through parents and the state not paying expected fees, Scott says, and consolidating and letting an agency with more financial know-how run the back office could cut those figures down to less than five percent.

“Then the director can start focusing on how good the teachers are and interacting with kids, which is what makes for a quality program,” Scott says.

Recent News

What We Get When We Embrace the Artisans

  The multi-year process of rewriting the city’s development code caused a significant amount of sturm und drang, especially among the downtown folks, but...

Intro to Co-working

This article appeared in print as part of “Remote Control”   You’ve heard of co-working, but what is it exactly? And is it for...

Your Guide to Driving Electric in Mid-Missouri

This appeared in print as part of “Not Quite Flying Cars.”   Columbia has limited charging options for electric vehicles. Here’s where to plug...

Could You Go Pro?

This article appeared in print as part of “Remote Control”   With a growing gig economy, remote work isn’t just for employees. Think you...

Women Entrepreneurs: Building the Team

This post is the final in a four-part series about creating a new entrepreneurship program, the Missouri Women’s Business Center, while simultaneously helping entrepreneurs...