Paying attention to enrollment figures is one of the most critical elements of the budgeting process for child care providers. The income – expense ratio is most affected by the amount of debt a provider takes on relative to the number of families a center has enrolled. True enough, there is only so much cost cutting a provider can engage in before the center cuts into the overall operational effectiveness of the business. That is why enrollment growth and retention of existing families is essential to the long term viability and sustainability of any child care center.
Coupling enrollment growth with other program offerings that specifically interest families will enable providers to boost their income. The flip side of this is that providers must also control costs and put distance between their desire to take on additional debt. The combination of enrollment growth and cost containment ultimately provides a positive cash flow scenario for child care providers.