Quick - what is the single largest expense for your center? If you didn't answer "payroll" pull out your financial statements and study them! Your staff is your most valuable asset but can also be the biggest and fastest drain on your cash. Do you know what your payroll is as a % of your tuition income? Working "on" your business means you track this expense each and every week and study why is varies from your budget or plan. You should set some operational guidelines for what that % should be (most schools run at or under 50%). If it varies on the high side you should immediately evaluate why and how and make corrections in your staff schedule.
There are only two ways to reduce the % - reduce staff costs or increase income. The challenge is to do this while offering the best possible care for the children and families you serve. Analyze your numbers.....
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