January 2019 Newsletter - Issue #57
How to Handle a Minimum Wage Increase in the Early Education Industry

As payroll costs are the single largest expense in a childcare center or school, many company owners and executives are concerned with the potential increase in the minimum wage. No one likes to see increases in expenses without corresponding increases in revenues and profits. Here's a few ways to deal with an increase to the minimum wage.
  1. Don't panic. This wouldn't be the first time our industry has seen an increase in the minimum wage. It's not fatal. It's just an adjustment.
     
  2. Do the math and determine how much your expenses will increase with the wage increase. Don't forget to include the corresponding increase in payroll taxes. If you know the amount of the increase in your expenses, you'll be better at making up the difference...maybe more.
     
  3. Raise your rates. The minimum wage increase won't be a secret to your parents. You can raise your tuition rates (and other fees like Registration, Supplies, Fieldtrip...etc.) to cover some or all of the wage increase. It is more difficult to raise rates in some centers than others. In some cases it will be better if you use smaller, but multiple rate...Read More

(Legal disclaimer: Always consult the proper professionals before taking action. By and before the use of the information provided herein, reader agrees that BFS ® is not responsible for viewer's actions related to said information.)

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If you ever have questions, please call us at 800-467-1774, contact us at info@bfsinc.net or visit us at www.bfsinc.net. All communication with BFS® is strictly confidential. Again, we want to be the primary resource for you and your early education company. If you know anyone else who could benefit from this information, feel free to share. As always, we hope it helps. 
Brad Barnett, President BFS®

See What Others Are Saying

Brad Barnett of BFS ® was our broker for selling our business and property, a private school and childcare facility. We chose Brad because he not only had tremendous experience in selling schools and childcare businesses, it is his exclusive domain. BFS ® had effective systems in place to ensure that the marketing and sell of our business was very discrete and allowed us to screen all inquiries. This was a very high priority for us.

Brad was very patient with us and spent as much time as was needed with us and potential buyers in order to sell our business. We found him to be professional, organized and responsive. He was easily accessible by phone or email. Brad, himself, is very personable, diplomatic and an effective communicator. These traits are important in guiding negotiations smoothly. We highly recommend Brad and BFS ® to anyone who is considering selling a school or childcare business.

Sincerely,

Laura Witmondt, Former President 
Richard Witmondt, Former Secretary / Treasurer 
Village Montessori School of Roswell, Inc. 
Roswell, GA



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About BFS

Founded in 1993, BFS®  is a consulting firm with a long-standing Better Business Bureau A+, references from early education professionals all over the U.S. and licensed professional brokers in 42 states.  We specialize solely in the early education vertical.  We have assisted thousands of day care centers, childcare centers, preschools, Montessori schools and private elementary schools with Financing, Management, Evaluations, Buying, Selling, Sale and Leaseback Transactions and more. 


 
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