Post-Thanksgiving Blues: It seems that the days right after the holiday, some folks get a little down. Family and friends get together. Then they have to leave. Some family discussions may have gotten a bit heated and then each feels a bit guilty. Some of us may have overeaten, and now have to get extra steps in to sweat out the gravy. Unless you’re a billionaire that decided to eat the banana from your $6.2M piece of art. It sounds like Justin Sun didn’t get enough pumpkin pie on Thanksgiving and decided to “gobble” the expensive piece of art the day after. I wonder if you feel more guilty after a silly family argument or, well, eating $6.2M worth of bananas.

Post of The Week: 🚶🏽‍♀️ 🚶🏽‍♂️

Couldn’t agree with this more. Whether you wake up a bit early so you can get outside and move before work, take a couple minutes during your lunch break, or carve out some time after dinner to get your steps in, the habit of setting aside time to move is Ecential! Moving = Medicine For the Soul!

THE BIG IDEA

Finance Water Cooler Talk Cont’d:

We get it—business topics can sometimes feel as exciting as watching paint dry. But trust us, nailing these basics is the secret sauce to running your childcare business like a total rockstar (or at least like the most profitable businesses out there). Last week, we shared five foundational concepts to help you channel your inner private equity mogul. Now, as promised, here’s the other five!

6. Cash Flow Management

• Why it matters: Positive cash flow ensures you can meet financial obligations and reinvest in the business. Buyers will assess cash flow stability to gauge risk.

• Key point: Create accurate cash flow projections and maintain reserves for unexpected expenses.

7. Valuation Multiples

• Why it matters: Childcare businesses are typically valued using a multiple of EBITDA or revenue. Understanding industry averages helps set realistic expectations.

• Key point: Research local market benchmarks to estimate your business's valuation.

8. Debt-to-Income Ratio

• Why it matters: High debt levels can deter buyers, while a low ratio makes your business more attractive.

• Key point: Minimize unnecessary debts and consider refinancing to improve your financial standing before a sale.

9. Real Estate Considerations

• Why it matters: Owning vs. leasing affects the business's valuation. Buyers often prefer businesses with stable and long-term leases or owned properties.

• Key point: Secure favorable lease terms or consider the value of selling the business with the property included.

10. Financial Documentation and Transparency

• Why it matters: Buyers need detailed financial records to evaluate the business. Inconsistent or unclear documentation can reduce perceived value.

• Key point: Ensure accurate records of income, expenses, tax filings, and licensing compliance

Demonstrate competency and understanding in these 5 principles (plus the 5 from last issue) and you will be on your way to managing your center like the best in the biz!

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?