Managing enrollment

Step 1: evaluate demand 

The most important step is figuring out how much demand there is for your child care services. For example, if you create more slots for preschool-age kids and older, but most people in your area need care for infants, you would not be successful. You can learn about demand in a few ways. Families might ask about your services or want to be on your waiting list. You can also ask other child care businesses they’re at full capacity and which age groups have the most or least openings. Find out what types of services they offer. For example, you might find that no one in your area that offers overnight care or care for infants. Changes in your community can show demand for certain age groups or services. Maybe a child care center in your area is closing, or the only other child care business, aside from your own, is located near the elementary school. You might find out that people need for child care within a specific price range. You would need to decide if you're able to offer high-quality care at those rates. Look at your own enrollment to see which ages or services fill up quickly and which ones don't. Knowing what's needed for different age groups and services will help you understand if your enrollment needs to change.

 So, does your enrollment need to change? Think about the following: 

• Are there indicators that moved you to think of increasing enrollment?
• Is there a common percentage of unfilled slots across all age groups?
• Are there particular age groups that tend to fill up more quickly than others?
  • Maybe you often have to turn families away with children of a certain age. You might need to consider expanding or changing your capacity for that age group.
  • Maybe you haven't gotten as many children enrolled you want because there's already a lot of child care available for the age range you offer.

Reviewing your current situation will help you know if you want to fill the slots you have, create more slots, or adjust the age groups you're caring for.

Keep in mind that demand and the market may change over time. Researching changes in your community, like new industries or housing, can help you see how much demand there is. Make sure your research is recent and that you check demand regularly.

Step 2: determine the number of slots needed 

When planning to increase enrollment you'll have to figure out the number of slots you need to fill. To find out how many slots you'll need to fill, you'll want to check your budget and cash flow. Your budget will make sure your expenses are accounted for. Your cash flow will determine how changes impact your business' sustainability. For example, determine if the costs of enrolling four more children is less than the extra money you'll make from the new enrollments. As a good business practice, you should know how many children you need each month and year to cover your costs and make a profit. 

Step 3: how will changes in enrollment affect staffing? 

Remember that changing your enrollment can change your staffing. Staffing changes can have both financial and operational impacts to your business. You'll need to decide if you can afford to hire more staff. Make sure you know the child-to-caregiver ratios required by licensing. Compare your current staffing to those requirements and see if you need more staff. Finding staffing can be challenging for child care providers today, don't assume you'll easily find more staff. Refer to your budget and cash flow to make any adjustments confirm that you'll remain profitable even with higher personnel costs. 

Step 4: attracting families 

To increase your enrollment, you need to effectively reach the families you want to serve. Creating a sales and marketing plan will help you to connect with these families and get them interested in your business. As you develop your plan, consider:

• Your business’s brand and identity
  • What is your value proposition?
  • What makes your program different from other programs?
  • What unique needs do you meet?
  • What are your business’s values?
• The marketplace your business exists in
  • Do you understand your competition’s pricing and services?
• Your budget
  • How much money can you spend on marketing?  
• Your timeline
  • Considering demand, how long will it realistically take to achieve your enrollment goal?  

You have options for attracting new families to your program. You could ask your current families for referrals or recommendations. Open houses let families see the environment and the care you provide. Networking with your local child care community and online groups can help you connect with potential families and learn new ways to grow enrollment. Consider using social media, creating a custom website and printed promotional materials.

Step 5: maintaining and tracking enrollment 

Once your level of enrollment meets your financial and operational needs and you feel satisfied with the number of children in your care, focus on keeping it that way. Planning is essential to maintaining the number of children in your care. Many things can cause your enrollment to fluctuate throughout the year. Maybe you care for children whose parents don't work during the summer, like teachers. Be aware of how enrollment changes will affect you at those times. Keep track of children who might be “aging out” of your program or reducing hours because they're starting school full-time. These slots may now become available for other children. Remember, temporary enrollment changes will affect your income, so plan for them. You might need to adjust your budget. Watch expenses carefully during that time. It will help to have extra cash saved up periods that your enrollment fluctuates.

An excellent practice for your business is to keep a waitlist. Have a standard procedure for updating your waitlist. Make sure you record important information, such as parent contact information, child’s age, any special needs requests, and when they want to enroll in your program. You might create a template or spreadsheet to maintain your waitlist to keep track of this information. This list will ensure that if a slot opens up, you'll have the information you need to contact families who are interested.

As you maintain enrollment over time, check your rates regularly. For example, if you've been charging less than the market rate, raising your rates will help you make the most of your ideal enrollment . However, be mindful about not setting your prices so high that families either don't enroll or leave your program. Balance setting rates that reflect the quality of care you provide with setting rates that are attractive and encourage enrollment.

There are many ways to track enrollment. If your enrollment is small, keeping a journal of weekly enrollment may suffice. You should use a method that allows you to easily identify and understand changes. This could be computer spreadsheet updated weekly, which will help you keep a running tally of your enrollment while showing changes from week to week or season to season. A more advanced option is to invest in a Child Care Management System (CCMS.) Using a CCMS allows you to track enrollment, daily attendance, billing, and provides a means of communicating with parents. Using these systems to create reports is a great way to use of the data you’ve collected. It gives you an accurate and concise way to understand how enrollment trends affect your business.

Adding a CCMS requires a financial investment. Research different systems to determine which is best for your business. Talk to other child care providers of similar size to discuss the CCMS they use. They can give you first-hand insight into features and benefits. You may want to ask other child care providers in your area about their experiences with the CCMS they use, ask in an online networking group, or you can read online reviews. 

Disclaimer

The information contained here is for educational purposes only and is not intended to constitute legal, tax, or financial advice.