AM4: Program has a business sustainability plan.
Michigan lost 637 child care programs statewide during the COVID-19 pandemic, dramatically limiting child care options. A successful child care business is one that meets families’ needs and provides a safe place for children to learn and grow among other children and trusted adults. That success also depends on business management practices ensuring the program’s financial stability.
A business sustainability plan allows programs to plan for their future, including how to keep the doors open if we experience another life-altering event like COVID. Creating a business sustainability plan helps administrators ensure their program is set up for continued success, and that children have continued access to high quality care.
Consider the following key points when creating your business sustainability plan to ensure your business model is equitable:
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Bring key stakeholders and partners to the table. This might include children and schoolagers, families, community members, accountants and area businesses to ensure your program meets the needs of those you are serving, both now and in the future.
- Create transparency with customers about the progress your program hopes to achieve.
- Ensure goals are prioritized based on the program’s — and stakeholders’— values.
- Prioritize the health and safety of staff, children, and families. Ensure your business model encourages these best practices.
- Remember: A sound, sustainable business model and plan can lead to increased and sustainable wages for staff, which also leads to improved staff retention.
Wondering what to include in a business sustainability plan? Some topics to consider include, but are not limited to:
- Budget planning
- Cost-reduction strategies
- Financial reporting
- Maintaining program services
- Marketing
- Staff recruitment and retention
Don’t forget to continuously monitor your plan to ensure you are on track to meet your goals, or to make adjustments as needed.
For more information about this indicator, review the Quality Indicators Guidance Document and Quality Indicators FAQ.
If you have questions, please reach out to validation@ecic4kids.org.
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