Managing enrollment

Step 1: evaluate demand 

The first 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 wouldn't be successful. 

There are several ways to learn about demand: 

• Families may ask about your services or want to be on your waiting list. 
• Ask other child care businesses if they’re at full capacity and which age groups have the most or least openings. 
• You may discover that no one in your area offers overnight care or care for infants. 
• Changes in your community 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 is located near the elementary school. 
• You may find out that people need child care within a specific price range. You'd 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.

Does your enrollment need to change? Think about the following: 

• Are there indicators that prompted you to think about increasing enrollment?
• Is there a common percentage of unfilled slots across all age groups?
• Are there age groups that fill up more quickly than others?
• Do you have to turn families away often with children in a certain age group? If so, consider expanding or changing your capacity for that age group.
• Maybe you haven't enrolled as many children as 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.

Remember that demand and the market are everchanging. 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 by checking your budget and cash flow. Your budget will make sure expenses are accounted for and cash flow determines how changes impact your business' sustainability. For example, determine if the costs of enrolling four more children are 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. Make sure you know the child-to-caregiver ratios required by licensing (HHSC CCR). Compare your current staffing to those requirements and see if you need more staff. Look at your budget and cash flow to make any adjustments and then confirm that you'll remain profitable with higher personnel costs. 

Step 4: attracting families 

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

• 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?
• Marketplace
  • Do you understand your competition’s pricing and services?
• Budget
  • How much money can you spend on marketing?  
• Timeline
  • Considering demand, how long will it take to achieve your enrollment goal?  

There are many ways to attract new families to your program: 

• Ask your current families for referrals or recommendations
• Schedule open houses to let families see your environment
• Network with local child care community and online groups 
• Use social media, create a custom website, and print promotional materials

Step 5: maintaining and tracking enrollment 

Once your level of enrollment meets your financial and operational needs and you're satisfied with the number of children in care, focus on keeping it that way. Many things cause enrollment to fluctuate throughout the year, such as parents who don't work during the summer, like teachers. Be aware of how enrollment changes will affect you during 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 can be made available for other children. Remember, temporary enrollment changes affect your income, so plan for them. Watch expenses carefully during these times. It helps to have extra cash saved up for periods when your enrollment fluctuates.

It's an excellent practice to offer a waitlist and have a standard procedure in place for updating the waitlist. Gather important information, such as family contact information, child’s age, special needs requests, and when they want to enroll in your program. Use a template or spreadsheet to maintain your waitlist and keep track of this information. If a slot opens up, you already have the information you need to contact families.

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 don't enroll or leave your program. Set rates that reflect quality of care and encourage enrollment.

There are different ways to track enrollment: 

• If your enrollment is small, keep a journal of weekly enrollment may suffice. Use a method where you easily identify and understand changes. This could be a computer spreadsheet updated weekly, which helps 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 way to communicate with families. Using a CCMS 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.

Please note that adding a CCMS requires a financial investment. Research different systems to decide which is best for you. Talk to other child care providers of similar size to find out which the CCMS they use. They can give you first-hand insight into features and benefits. You can also ask in an online networking group or read online reviews. 

Disclaimer

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