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!
Once in a while, I’ll watch a show on T.V that stands out. And it is rare that I sit down and choose something to watch. I mean, seriously…who has time for that?! But occasionally, I’ll come across something that has a dramatic impact on my life or my business. And this was one of those moments. I hadn’t taken on board the importance of storytelling!
I had my feet up and my phone to hand (in case my day care staff needed me) and I was multi-tasking on my laptop as usual. However this episode caught me by surprise. I was totally drawn in.
This particular episode made me stop and think about how I was running my business. It gave me the impetus, the drive and reignited my passion for my childcare business. Strangely, it wasn’t about a woman running a daycare center. It focused on helping a New Jersey pizza shop. The Profit‘s presenter (Marcus Lemonis) needs to help the owner who is struggling with aesthetic issues and stagnant sales.
While watching their journey, I learned 3 things. I thought I’d share them with you!
Tell your story
The importance of telling your story became abundantly clear from watching this episode of The Profit. Marcus finds out that the owner, Alario, opened his restaurant with money his father received from the federal government after Alario’s mom was killed in the 9/11 attacks on the World Trade Center in 2001. After listening, Marcus explains that this is a great backstory, and asks how Alario is sharing this with his customers…
But Alario hasn’t been sharing his backstory with anyone — not even his employees know what he’s been through! And Lemonis points out that this is where his business is going wrong. He explains that it’s actually completely natural to bring certain aspects of your personal life into your business.
“I’m a big believer that in business, consumers will rally around a cause or a story or some personal connection that they have,” Lemonis says on the show. “People like to do business with people. It’s OK that you amplify who you are, that’s how I make a connection with you”.
We know deep down that people buy from people. When you share your story, people buy into that. They want to support you and they become your mini-fans, your champions. They want you to succeed.
So, since watching this – and realizing the importance of storytelling – I’ve been shouting my story from the rooftops!
Be known for something
This episode of The Profit, with Alario’s pizza joint, made me think about what my childcare will be known for. I want my business to be memorable for all the right reasons. I’d love for all my clients to rave about how awesome my childcare is and how they recommend me to everyone they know when they find out they’re expecting!
How do you want people to talk about your childcare business? Is there something specific you want to be known for? Make a list and see if you can weave these into your newsletters, your social media posts, your conversations and your practice.
Storytelling to help someone else
Marcus Lemonis makes a great case for why your business needs storytelling and the importance of bringing the personal to your professional! Your story will resonate with people and they’ll find that they want to support you by buying into your business. But it’s about more than just that.
By telling your story, you will no doubt be helping someone else. Your overcoming adversity to build your business is going to give someone else the strength to keep on pushing forward. It’s going to motivate other childcare owners to persevere despite their circumstances. Because they’ll hear that YOU are building a successful childcare business even though you were in a difficult situation once.
You are inspiring!
These connections, these HUMAN connections are vital for our businesses.
What does your story look like for your childcare business?
Find it, share it, and watch your business stand out!
Are you in the Childcare Ninja Facebook group yet? We are 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!