Is it time for you to grow your finances and finally begin building your wealth? One of the reasons I set up Childcare Ninjas – my mission if you will – is that I really want to encourage everyone in this community to become financially literate in their childcare business. I want women like YOU to be bringing in the money you want to make.
For years, money has been a taboo subject – particularly for women – and I want to make sure that doesn’t get in your way! It’s a topic that often makes us feel stressed or uncomfortable, so the more we talk about it the less hush-hush it’ll be.
In this blog I’m going to share with you some of the things you need to consider when it comes to finances. Because when we KNOW, we can GROW!
Why do we need to learn about finances?
Rather than just spending up your check when it comes in, we need to learn what to do to make the money work for us! We want to manoeuvre ourselves into a place where we start to become wealthy, where we don’t just strive but get to thrive financially in our business and our lives.
In order to do that I believe there has to be a learning curve, to seek out the education that shows us how to use our finances in a positive way and be able to continue growing them. Oftentimes that isn’t the information that’s handed down, you need to be purposeful about seeking it out.
Many of us received the opposite, growing up with negative thoughts and ideas about money and wealth. This takes time and effort to unpick and unlearn.
When it comes to finances in business, I was (once upon a time) the kind of person who’d throw all my receipts and invoices in a drawer and “deal with them later”…and then the drawer got all jammed up because it was overflowing with paperwork…I wonder if that’s ringing any bells for you there, Ninja?
The trick when it comes to great financial management is consistency and small, simple systems. This took me so long to figure out, and that is why I am super excited to be giving you this guidance, so you don’t have to waste time figuring it out!
But why do you need to grow your finances?
And the reason this matters is that money is not shared equally across the globe. Nope. Did you know that the world’s richest 1% – those with more than $1 million – own 43.4% of the world’s wealth? And of those, men have more of a share than women, and there is massive inequality in terms of race, language, religion.
So when a load of us women in childcare start growing our businesses and creating WEALTH for us and our communities we are rocking the boat! We are shifting the wealth share and making the lives of people in our areas better! What’s not to love, Ninja?!
I want to encourage each and everyone of us to build our wealth and create overflow and abundance in our lives!
Figure out the language of finance
Part of the reason we shy away from talking about money is that the finance industry bamboozles us with words that we don’t understand. So before you get started with trying to sort out your finances, I’d recommend getting familiar with the language.
There’s absolutely no shame in googling words you don’t recognize or listening to some finance books on audiobook. You could even reading a paper copy and have a thesaurus handy for any unfamiliar words.
We weren’t taught this stuff in school, so it’s time we took things into our own hands! Let’s grow your finances together!
What do we know about finances already?
Take a minute to sit and figure out what you DO know. You might already know how to pay in checks and cash them, for example. You may be au fait with internet banking. How about pay roll and taxes?
Perhaps you ran a product-based business before you decided to open a daycare, or maybe you were the treasurer for the PTA and kept immaculate records on spreadsheets for the bake sales and jamborees. Whatever your experience, don’t belittle it! You’ve picked up skills over the years and you can flex those muscles again, just in a different way.
Once you know what you DO know, then you can start to look and learn the things you DON’T yet. And it’s okay to admit that we don’t know stuff!!
Time to separate your money
Don’t mingle your money! Especially if you’re an LLC. You need an EIN to set up your own business account. Do it in your name or under a business name – doesn’t matter! But you need it separate. Lots of first time business owners make the mistake of using their day-to-day accounts when they start up, and it just creates utter chaos when you are trying to figure out incomings and outgoings.
Keep it simple. One account for the childcare business, and another for your personal business. Read about the way you can manage finances and the Profit First method here.
Create financial goals to grow your finances
So I know you’re probably familiar with the idea of goal setting – “In 5 years I’d like to have a second daycare”, “In a year I’d like to build an extension onto my current childcare space”, “By the time I’m 40 I want to have a new home, car and at least 30 employees”… And these are great. Being ambitious and stretchy in our goal setting is AWESOME! However, you want to be ultra specific with financial goals.
Make sure you set income goals because you want your business journey to be focused and not meandering all over the place. Attach a number to your goal. For example, “In a years time I want to be bringing in $60,000 so I can build that extension and develop my childcare space”. You don’t wanna travel without a destination!
Break down your financial tasks
Daily, weekly, monthly and quarterly. Keep track of receipts, keep track of all incomings and outgoings on a daily basis. Weekly – on a Friday – you can get your financial tasks done (like filing those receipts!). Your accountant will love you for it. Build these tasks into your workflow!
Get some financial help!
I cannot emphasize this enough: get an accountant and a book keeper. They’re not the same thing!
Your accountant can support you with taxes and figuring out your financial journey. I tend to check in with mine and update them on new things I’m doing in case that impacts my taxes. But at the end of the tax year is when they work their magic. And the bookkeeper makes sure all your expenses are accounted for and you work together all year long. They’re financial fairy godmothers who can help you stay on top of things!
Build relationships with people at your bank. Talk to the teller and the bank manager, and don’t feel intimidated by anyone. It’s key to connect, so that you can ask questions and learn from them as experts about how things work.
When you have a new project coming up or are looking to expand, their expertise can be so valuable to decision making.
Do not be afraid of asking for help.
Hopefully after reading this blog post you’re feeling a bit more confident about money and talking about how to grow your finances. I mentioned earlier that I use the Profit First method and have been since reading the book, but I’d love to know what money, finance, or business books have made an impact on you? Share your resources in the comments below or come and join in the conversation over on Facebook!
To get you started on managing your finances effectively and efficiently, here’s an extra helping hand from me to you, Ninja:
If you want to hang out with like-minded and aspirational childcare business owners, come and get involved in the community over on Facebook! Join us for more tips on how to make your childcare business the success it deserves to be! Or if you prefer Instagram, we share ideas and tips there too. We’re an army of childcare professionals who are sharing ninja-sharp skills to transform our businesses into childcare empires! This is Childcare Ownership all Grownup!
None of us go into the childcare business lightly. And we certainly don’t tend to enter this industry if we lack passion for children and families! We love the kids we work with, right? To a point, the job itself is a reward. But what are the other rewards of being a childcare business owner?
There are plenty of reasons —outside of the families we work with— that make owning a childcare business awesome. I wanted to share them with you because I think sometimes being a childcare owner is underrated and underestimated! Not only do we get to have fun occasionally, but the potential to make more than just a decent living.
So what are the top 5 rewards of being a childcare business owner? Read on to find out…
Reward 1: Family
I’d bet my bottom dollar that you and I both share our why. Is your raison d’être family too? My family was the the spark that lit the fire in my belly and kept me pushing through the challenges. As a single parent, I knew I needed to build a stable life for them. I wanted to be at all of their sports games, attend every recital — I didn’t want to miss a thing! And because I started my day care instead of slaving away in a low wage desk job, I was able to do just that! I could treasure family time.
Coming back to your why is incredibly powerful. When you have a strong why, you have the strength to persevere. You have a motivator that makes you try that little bit harder! If you haven’t watched these two TED talks, here and here, I highly recommend you do.
I honestly believe that starting your own day care business gives you the flexibility and freedom you deserve to have with your family. I want that flexibility for you too, Ninja! Which leads me nicely to the second reward of being a childcare owner…
Reward 2: Flexibility
Being able to enjoy your family and put them front and center is top of the agenda, but to do more of that we need more time. And that is a huge factor that you can gain once your childcare business is up and running.
Y’all know that time is precious. In fact it’s the most priceless commodity we have. What would you give to gain more time with your family, and doing the things you love? Of course there are challenges to get to the stage where you’ve got more free time, but when you get there it tastes so sweet! Trust me!
In my Facebook group you’ll find that I’ve shared how I overcame the challenges to get to where I am today. Do you want flexibility too?
Reward 3: Financial freedom
Here’s the tea: It’s hard to get wealthy just with a job by itself. When I was working my 9-5, the thing that stood out to me was that I earned a set wage. I could work harder and be more productive with my time, but it would still be the same. If I was lucky I’d maybe get a 3-5% increase and the odd bonus on occasion. I didn’t want to be stuck in a job I hated struggling to get by, knowing that my daughters were missing out on the things they wanted.
When I started my childcare business (almost 15 years ago!) this is something I desperately wanted and needed! I barely thought about anything else but FREEDOM! So, I wonder if you dream of FREEDOM? Freedom to set your own schedule? Freedom to take time off knowing your income isn’t just relying on you? Freedom to spend money on what matters, when it matters? Freedom to go to your kids school events without asking for time off?
Earning more and having these opportunities has been another wonderful benefit of being a childcare owner. With hard work and self-belief, my business grew and became more successful. Holidays, nice clothes, or a spacious home weren’t an option before I started my biz.
I’m here reminding you today that it’s really possible to OWN your finances! YOU can determine your income. If I can do it, I know you can too. You got this!
Reward 4: Legacy
One of the biggest reasons I started this business was to leave a legacy for my girls. I wanted to create something amazing that I could pass down to my children. Something that they can inherit and build upon. Something successful that enables them to live a fulfilling life that they love too!
I am driven by a passion to pass on generational wealth, which is POWERFUL. Particularly as women. And even more so if you’re a woman of color. These things matter! Leaving a legacy is a massive reward of being a childcare owner.
Dunno about you, but I never want my kids to burn out working a depressing 9-5. I don’t want to see them busting their gut all day long just to put food on the table. I want more for my kids. Don’t you?
Do you have a legacy to leave to your children yet, Ninja?
Reward 5: Empower women
It is an absolutely amazing feeling when you get to a stage in your business where you literally have EVERYTHING you want. The house, the car, the money, the freedom, flexibility…I mean EVERYTHING just falls into place. The peace of mind, the security — it’s nothing short of life-changing. As my business shifted a few years back to this new place in the grand plan, I just knew I had to give back. I had to pay it forward so other women could also live a life like this!
My team is made up of brilliant women. I love working with them and providing them with the tools they need to excel. But I craved being able to help more women. Women like you. Women with a dream of something bigger. It’s why I began working on group programmes and now I’m opening my Ninja membership – so I can support more women to achieve what I’ve done!
Which rewards of being a childcare owner are you looking forward to most?
It is an absolutely amazing feeling when you get to a stage in your business where you literally have EVERYTHING you want. The house, the car, the money, the freedom, flexibility…I mean EVERYTHING just falls into place. The peace of mind, the security, it’s life-changing.
As my business shifted to this place I knew I had to give back. I had to pay it forward so other women could also live a life like this! This is why I have created my Club membership for Childcare Ninjas. It is all the learning you need to start and grow your childcare business, all the inspiration, motivation, and kick in the butt you need to keep going, and it is direct access to me so you are not alone.
I am also offering the Founding Members lifetime access at this incredible price of just $28 per month!
Yaaassssssssssssssss!! You did indeed read that correctly!! You ought to snap this incredible offer up pronto! We kick off on 1st June so hurry scurry now! Invest in yourself as a founding member…
If I asked you right now what your profit was going to be at this moment, would you know? Have you got a system in place to give you a birds-eye view of what’s going on in your childcare business finances right now?
It’s important that you nail this as soon as possible, so you can see at a glance what you’re making and how much profit you’ve got.
I’ve spent the last few years really honing in on making sure I have a cash flow system within my financial system that allows me to see what’s really going on – so I can see what my profit truly is.
Read on for tips on putting profit first and making your childcare business more streamlined financially.
So why do we need to know about profit?
When it comes to finances, you want to be able to get a quick and easy-to-understand overview. This is so you can actually pay your bills on time, not miss essential payments because you’ve prioritized things, and – vitally – you won’t have so many Childcare biz surprises!
One thing I’ve looked at and has helped me a lot is the “profit first” system of cashflow. I’ve also written more about profit here and lessons I learned from watching The Profit!
How does “Profit First” work?
I read the book “Profit First” by Mike Michalowicz and boy oh boy it was a game changer! A massive help. It’s helped me see where I’m making a profit easily, where things are going more clearly. Which means I have a much better handle on payroll – which my staff appreciate! – and obviously this helps me keep the whole taxes thing under control too.
Profit First is based on a waterfall system where all income flows into your top income account, and then on the 10th and 25th of every month, this cash is allocated out to the other accounts – based on your current allocation percentages. So you can have accounts for Tax, paying yourself, profit and expenses, that you put money into twice a month. It’s flexible to suit your needs and definitely worth looking into!
Getting finance systems in place!
Creating a system doesn’t have to be hard to understand, and I love the way the author, Mike, broke it down in a very simple manner. It really helped me get a better grasp of where my money’s going and I’d love for you to have the same.
The earlier in your business you can do this, the more ease you’ll find in your business regarding finances.
I’ll be going Live tonight in my Facebook group, talking about, “Creating a cash flow system that’s simple”. Do come and join me, I’d love to share the process I use and how I adapted Mike Michalowicz’s book “Profit First” model to work for my Childcare business. I’ll be discussing how to create a system where you can be clear on your profits and expenses and easily get a ‘snapshot’ of your finances at any given time.
There’s going to be some super tips that you’ll want to implement! Never miss a bill again or find yourself short at the end of the month!
So pop it in your diary, tonight 8 PM EST in my group. Join the FB group here. If you think any of your Childcare Biz owner friends would also love it, send them the link!
Have you read the book “Profit First”? How did you find it?
If you haven’t had a chance yet, I’d love for you to read the book, and put together a simple cash flow system that is easy for you to follow. Are there any other money books that have helped you in your business or life? I’m always looking for recommendations – hit me with your lists in the comments!
Come and let us know over in the Childcare Ninja Facebook group! We’re an army of childcare professionals who are sharing ninja-sharp skills to transform our businesses into childcare empires! This is Childcare Ownership all Grownup! Interested in becoming a part of the community? Join us for more tips on how to make your childcare business the success it deserves to be! And don’t forget to follow us on Instagram!
This week my blog post isn’t so much about strategy, but reflecting and sharing on the freedoms of being a Childcare boss. This is certainly one of my most favorite perks of being a Childcare Business Owner!I’m guessing that you wanted to become a childcare business owner because you dreamed of helping families but I bet there’s another key reason – you wanted freedom and flexibility!
I want to share with you what I mean by “freedom” and why it matters, and how I got to a place where I had room to breathe and space to fill with things other than work!
It started with a chat…
Last week I was talking with some of my girl friends, and we were all sharing how things are going for us. You know, the kind of chat where everyone has a little boast but usually backs it up with something silly that’s happened? And we were all laughing about whatever it was my friend said. Along the lines of how busy the store was and how she wishes she could go at a different time. She doesn’t want to do it when every other working mom is in there buying her groceries!
I grimaced. It’s fair to say that sometimes I really do tease my friends that I have the luxury of freedom when it comes to making my own schedule. I can do what I want, when I want. At least most of the time, anyway! So I piped up, “You probably oughta start a Childcare, because I get to go to Walmart or the grocery store early in the morning, when everyone else is on their daily commute!”. I got a couple of eye rolls and a “maybe I will!” hollered back at me!
How is it possible?
Having my Childcares all running smoothly, with my team in place – like a fine-oiled machine! Which has given me the freedom that my old 9-5 didn’t. Gone are the days where I needed permission to take my mother to a doctor’s appointment! I no longer have to wait for my holidays to come before I can take a day off. So when I’m in need of some time to myself, I can just note it in my calendar and things carry on without me for a day.
I don’t need to be “on” 24/7
One of the major blessings I’ve been given is that I’m not always needed in any of the facilities nowadays. I can make my own schedule. I don’t always have to be hands-on deck, and I don’t need to be in the office all the time – they’ve got that covered!
It’s truly one of the best perks about being a Childcare boss, I’m very appreciative and very grateful. However, I also know that I’ve worked hard to get to this point and it didn’t start out this way!
Freedom works both ways
When we’re thinking about freedom, we tend to think about freedom to have time off. But on the flipside, it means we’ve got the capacity to be the helping hand to others when it’s needed. Recently, one of my team members needed to take time off short notice for an appointment. I had the freedom to cover her, so I said, “no biggie”, and was able to pop into the facility while she was out. When she got back I headed off again to do my own thing.
How did I get to this stage of freedom?
This perk of being a childcare business owner didn’t come immediately. Don’t be fooled into thinking that overnight I created a crazy successful business and suddenly took days off and long lunches and spa trips. Nope.
Freedom has come about with hard graft. It’s been possible because of the systems I’ve put in place (y’all know I love a system!). Creating freedom through the investments I made when it came to training my staff. Now they can run the day care centers without me. And you’d better believe that I’ve also taken time, energy and spent money on coaching. Mostly to fix my mindset around controlling every little thing! (Clue: you don’t have to!)
Put the foundations in sooner rather than later
Taking those steps early on in your business will give you freedom to do other things later on. What will you do with all that freedom? Maybe you’ll develop a second childcare center or perhaps you’ve got hobbies you’d like to pursue? I can think of thousands of ways you could use that flexibility! I bet you can too!
Now, I didn’t write this blog post to show off (although I’m proud of what I’ve achieved and have the audacity to say so!). I wrote it to show you how it’s possible for you too! I’m so thankful and grateful for the freedom being a childcare business owner gives me. And I want you to have that freedom as well!
In case you’re looking to grow as a childcare business owner, I thought I’d let you know about my latest program! The doors are open to my group coaching program “The Simple Childcare Ownership Program”!
This 10-week coaching program is perfect for you, if you…
🟣 Believe working with children is fulfilling, and there’s no other job in this world that you would rather do!
🟣 Are ready to step into your power and develop your leadership skills.
🟣 Want to make the ultimate change and start the childcare business of your dreams, so you can live life on your terms.
🟣 Are fed up on the 9-5 rat race and want finances and flexibility
🟣 Are tired of getting in your own way and READY to start your Childcare boss journey
IT’S TIME FOR YOU TO BECOME THE CHILDCARE BOSS YOU’VE ALWAYS WANTED TO BE AND BREATHE LIFE INTO YOUR DREAMS “THE SIMPLE CHILDCARE OWNERSHIP PROGRAM“!
The first 2021 Program kicks off Monday, February 15 @ 8pm EST. We’ll be having weekly training with me Nyckie B in my private Facebook group with 2 weeks for implementing everything you’re learning. On the program I’ll be covering:
✨ MINDSET & GOAL PLANNING ✨ LICENSING & REGISTRATION ✨ FABULOUS FINANCES ✨ PROGRAM & CURRICULUM ✨ OUTSTANDING OPERATIONS ✨BUILDING A TERRIFIC TEAM ✨ MARKET LIKE A NINJA ✨ BUILD YOUR LEGACY
Sound good? You can sign up right now! Just click here.If the program isn’t for you, I’d still love to invite you to join us in the Childcare Ninja Facebook group where we’re all sharing ideas and learning from each other. We are an army of childcare professionals who are honing ninja-sharp skills to transform our businesses into childcare empires! This is Childcare Ownership all Grownup! Interested in becoming a part of the community? Join us for more tips on how to make your childcare business the success it deserves to be! And don’t forget to follow us on Instagram!