1. It has been said that as an employee rises in a hierarchy, the relevance of non-monetary benefits keeps increasing to motivate the employee. Do you agree with this statement? Explain giving concrete reasons.
2. Frost Shelley
The day care industry has been a big boon that takes care of the increasing need of working couples who work outside the home. Starting a day care centre requires an inventory of one’s skills and resources—physical and human—to ensure one can provide quality service. Irrespective of starting it at home or in a separate building, the time commitment is a crucial factor to be considered. Further, one needs to create a distinction in childcare whereby parents get a feeling that their child would be cared for as well or better than they themselves would have done.
A clear perspective and direction for the type of day care centre helps one in evaluating the need and viability of business. A home day care is a flexible option for those who want to start a smallerscale business. One does have to search for a usable location or pay extra rent for the facilities. The drawback is that one is limited on the number of clients and one’s entire home may feel similar to it being taken over. A day care centre not only requires a larger investment and greater management due to the size, but also allows for a larger client base. Finding a building that will work for the day care is often challenging, depending on the local real estate market. The location plays a critical role in the clientele development for the day care centre.
One may need to be fully knowledgeable or need to take an expert’s help for the regulatory permissions required, if any, depending on the country and state. There are countries that require a license to start a day care centre. Specific steps are required to keep the license secure. As an entrepreneur, one should be sure that one will be able to meet all regulatory requirements.
All other resource requirements for starting a day care centre depend on the size of the business. As the number of children grows, so would the requirement of staff and the other physical infrastructure. The secret of retaining and attracting new clients depends on having experienced, enthusiastic and child-caring staff who not only have expertise in communication but also can inculcate a value system in the children.
The major investment in a day care centre is required upfront and to that extent it involves a greater risk, if the expected clientele development does not take place as envisaged. For an actual centre, the building costs and furnishings that take care of the different age groups of children can eat up a large part of the budget. The monthly payment either on a loan for constructing it or lease rentals, if the building is taken on lease, affects the profitability to a great extent. In some cases, changes are necessary to get the facilities up to date. Once the building is finished, one needs to fill it with furniture, baby gear, toys, books and other activity supplies. Monthly expenses include utilities, food, supplies and insurance. If one has staff members, one has the expense of the wages and benefits one offers. One should consider all the costs necessary and the amount one will bring in from clients to evaluate the financial success of the business.
Management skills and experience with children are key in successfully operating a day care centre. One needs an understanding of child development to create a safe and stimulating environment for the kids. A regular schedule and activities that support child development are also a part of the operation. Advertising is crucial to find clients to fill all one’s open spots for maximum income. One also needs to develop policies and communicate with parents to keep the business running smoothly.1
1. What are the key location issues that need to be taken care of while setting up a day care centre?
2. What are the key considerations for entering into such a business?
3. In case one would like to start a day care centre, indicate in priority the steps that one would take to ensure its success.
4. Collect the information on two day care centres in one of the metropolitan cities and identify reasons for their success or failure.