Water Coolers + Turkey Day!

Stuff Not to Do:

Passwords Are Important: 4.2m+ people using “123456” as the password for their personal and corporate accounts really need to understand this. Is this a one-time thing? Nope: The password has topped the charts for five out of the last six years, being ousted only once by “password.” Let’s get creative, people!

Don’t be a Bear: The California Insurance Department said four Los Angeles residents were arrested in connection to “Operation Bear Claw.” This was an insurance scam that raked in over $140k with a fake bear attack. These folks dressed up as bears and took videos of them entering and damaging a Rolls Royce and a couple of Mercedes. A state biologist concluded that the beast was “clearly a human in a bear suit.” I wonder if they left honey all over the leather seats.

On the pod: Big Blue Marble CEO Jeff Wahl on The Inspire Care 360!

Worth Considering

Agree or disagree with ⬆️? We’re firmly in the agree ✅. Sure, everyone loves saving a buck (who doesn’t?), but let’s be real: your team is the heartbeat of your business, your brand, and maybe even your sanity.

High performers will not only cover their cost but grow your business in ways you’ll thank yourself for later. Meanwhile, low performers? Well, managing them feels like herding cats—except the cats are cranky, the customers notice, and you're left holding the bag of frustration.

So, go ahead—invest in the best, and let them help you manage the rest. Your future self (and your customers) will thank you.

CLASSROOM LIFE HACKS:

Let’s face it, we all can use some tips on how to simplify our lives. As an ecential teacher, you probably can use more tips and tricks to manage your days, well, because you do waaaaay more. And we’re not talking about useless life hacks, such as these (though they are funny) That’s why we wanted to gather and share some classroom hacks other teachers have shared with us. Maybe you know these, maybe you don’t, but feel free to share with other teachers that can benefit from these hacks!

• No!!!! They got the Sharpie Again! Did the kids write with the Sharpie on the whiteboard? Now it’s ruined! But, alas, no it’s not! To get a permanent marker off a whiteboard, draw over the permanent marker with a dry-erase marker and wipe it off. Both the dry-erase marker and permanent marker will erase. Don’t believe me? Just watch.

• Sing a Song to Move: We all know that getting kids to transition from one room to another or one activity to another can be a pain. But have the kids sing a song for each transition. So if you know you’re going outside, assign a song for that transition. It worked for the seven dwarfs in Snow White.

• Assign Classroom Jobs: Ownership of responsibilities can start at an early age. Kids love being in the classroom and love even more being able to help out. The attention is fun and they like contributing. This link has some great thoughts on classroom jobs. Focus on age-appropriate responsibilities and let the delegation of tasks begin! Afterall, it’s our job to get them ready for entry-level corporate America.

NEWS TO KNOW

• Pay Raises for Head Start Teachers: Many Head Start educators are set to receive a $10,000 pay increase under a new rule from the U.S. Department of Health and Human Services. This aims to bring Head Start teacher salaries closer to those of public preschool teachers, addressing pay disparities that have impacted recruitment and retention efforts.
  

• Micron's Childcare Center in Idaho: Micron Technology, Inc. is constructing a new childcare center in Boise, Idaho, to support its employees and the broader Treasure Valley community. Operated by the Treasure Valley Family YMCA, the facility will provide STEM-based programming and is part of Micron's commitment to workforce development and community investment. We are hearing more and more employers are considering these types of options in communities across the country.
  

• Kinder Prep Academy in Safford, Arizona: Loretta Desaulniers, a former kindergarten teacher, used a $200,000 infrastructure grant to enhance her child care center. Improvements included doubling outdoor play areas, adding secure exits, and upgrading indoor facilities. These changes have increased the center’s quality and safety while addressing community needs for child care in underserved areas. Desaulniers emphasizes creativity through literacy, music, and art programs for her students, showcasing her dedication to holistic early education​. We love hearing about individual owners just like Loretta who are finding ways to improve their offerings within their community.

THE BIG IDEA

Finance Watercolor Talk:

Last week we covered the trends of private investors buying up childcare centers. There are a lot of great resources we shared plus a TON of others out there for you to tap into. But, what about understanding the basics? What do some of these terms mean? Our aim is to help get you started. Learning what some of the finance geeky terms mean will help prepare you for those conversations, or at least elevate you from losing at Monopoly (*quietly flips the Monopoly board over as the last dollar is paid in rent).

1. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

• Why it matters: EBITDA is a key measure of a business's profitability and cash flow before considering non-operational expenses. For buyers, it provides a clearer picture of the business's operational performance (aka how much are you making).

• Key point: Childcare owners should track and optimize EBITDA to demonstrate profitability. This can include reducing non-essential costs and increasing revenue through occupancy and tuition strategies.

2. Revenue and Revenue Growth

• Why it matters: Consistent growth in revenue signals a healthy and scalable business. It also shows potential buyers that the business can expand under new ownership.

• Key point: Focus on maintaining high occupancy rates, effective tuition pricing, and diversified income streams (e.g., after-school programs or enrichment activities).

3. Profit Margins

• Why it matters: Profit margins reveal how much of your revenue turns into profit. Healthy margins indicate operational efficiency.

• Key point: Understand both gross profit margins (revenue minus direct costs like staffing) and net profit margins (profit after all expenses).

4. Staffing Ratios and Labor Costs

• Why it matters: Staffing is often the largest expense in childcare. Efficient labor management while maintaining quality care is critical for profitability.

• Key point: Know your staff-to-child ratios, track labor as a percentage of revenue, and adjust schedules to optimize costs.

5. Occupancy Rates

• Why it matters: High occupancy is a direct driver of revenue. Buyers often assess how full your classrooms are and the capacity for growth.

• Key point: Track enrollment trends and have a marketing plan to maintain or grow occupancy levels.

Stay tuned for our next issue where we’ll provide 5 additional business fundamentals that you should be familiar with.

YOUR VOICE COUNTS

Is there a topic you want more info on or want to share a funny story? Then let us know! Shoot us a quick email at [email protected]. This newsletter is for you, and well, you should have a say, don't’ you think?