Building A Healthy Business Model

“A successful mission and business model in the early childhood business entails delivering engaging, meaningful experiences for children, peace of mind for parents, and a workplace where staff thrive. Each of these initiatives requires resources. Mission and money can appear as opposite sides of a big divide. However, money does not diminish mission and mission does not negate the necessity of a strong financial foundation. In fact, our sense of mission helps us to recognize and communicate the need for strong finances,” writes Karen Foster-Jorgensen. She encourages programs to develop a healthier relationship with their business model, with this guidance: Know the full cost to deliver each early childhood ‘slot.’ “This information proves vital in identifying priorities for policies, revenue, tuition rates, and operating costs.” Maximize capacity and revenue, looking at “market trends, discount policies, service offerings, and mix of age group programming to arrive at enrollment levels and space usage that deliver the highest quality with the most efficient expense model.” Rethink the definition of full enrollment, addressing gaps caused by part-time enrollment and shifts as children move up. Reset the compensation model to compete for and retain highly effective staff. Construct an intentional staff engagement model based on joy—the non-monetary success factor. Dive deeper into these approaches with Karen Foster-Jorgensen in a live Engaging Exchange on "Mission, Mindset and Money" on October 25, with Exchange Press hosts Pam Boulton and Kirsten Haugen.

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