How Much Should My Major Expenses Be For My School or Childcare Center? 

You may find it surprising to learn that many people in the early education industry have never known how much some of their primary expenses should be.  Oftentimes, we come into the business and we find a way to make it work and then we stop looking for ways to continue improving.  You can use the table below to see if you can improve the performance of your own center or school.  The “Industry Normal” amounts below are based on information gathered directly from centers and schools across the U.S.  To calculate your own percentages, simply divide your expense amount by your Gross Revenue.

Expense Amount as a percentage of Gross Revenues:  Gross Revenue = $_______________

  Actual Industry Normal
  Salaries/Wages for Employees: _____% 45% – Maximum 50%
  Occupancy Cost (Rent or Mortgage): _____% 12%
  Food: _____% 4%
  Utilities: _____% 2% – 3%
       NOTES TO SELF:      

It may help you to know that this simple table has helped countless people improve the profitability of their childcare centers and schools.  Remember, a small percentage change can mean a material improvement in dollars.

What is the major expense in your childcare? Comment below to share your thoughts on this blog post.

I hope it helps.  If you have any questions, you can contact us anytime you like at BFSINC.NET or call us toll-free at 800-467-1774.

Talk with you soon…

Our new book How 1000s of Childcare Centers and Schools Are Making Millions is now available in hardback, Kindle, and Nook so you and your directors can reference the information whenever and wherever you need it. Click Here to order your copy today.

(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.)