Home Hot Topics Articles Directors' Choice Awards About Us / Contact Us Activities & Curriculum Activities for Outcome-Based Learning Arts & Crafts Music for Learning Recommended Reading Sharing Boards: What Do YOU Think? NEWSlink Current National News Conference Calendar Topics In Early Childhood Education Art and Creativity in Early Childhood Education Job Sharing Board State Licensing Requirements Stay Connected! Each month we'll send you an email filled with articles and ideas for your classroom. Subscribe Now Date: 12/9/2004 10:42:00 PM Author: Center Director (g.still@verizon.net) Subject: Jenny, Congrats on getting your degre... Jenny, Congrats on getting your degree! Starting a childcare in your home is probably a good place to start. It'll give you a chance to grow slowly and work out any issues that arise and trust me there will be issues. As far as tax benefits, they are GREAT when you are an in home facility. All monies that are direct expenses are write offs. In addition, you get to write of portions of your mortage utilites etc. based on the percentage of your house that you use and your hours of operations. The average in home provider can average a gross profit of $30,000-$42,000 per year depending on their capacity, rates and nutriton reimbursement amounts. My figures are based on the conservative side of 6 children at $400.00 per month per child and an average of $300 per month (total) on USDA reimbursement. If your capacity is higher then you would clearly make more income. Your net profit will fluctuate depending on your start up costs, average overhead, and how much you reinvest to build your business. After the tax benefits, you still come out ahead. As far as a childcare center goes, your initial investment and risk is ALOT higher. In order to operate at a break even point you need a minimum of 30 children and truthfully 50-60 to see a consistent small profit. That is assuming you will be paying on start up loans for a period of a few years. For myself, our longest term loan is for 7 years and once all of the loan amounts are paid I will begin to see a profit. I have calculated that a center with a capacity of 75-85 children can make a decent profit and not have sooo many children that you lose the personal touch that a quality center would need. Hope this info helps! Name: Email: Subject

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