There are two reasons ECE leaders get out of bed in the morning: to offer awesome child care to families with young kids and to be a source of community (and jobs) for teachers and staff.
Without one, you can’t have the other.
Today’s leading child care franchises know that if you can improve efficiency while advancing the customer experience, you can maintain healthy margins.
And luckily, there is a whole world of technology designed to help you reach those goals. But before you go signing up for every shiny new tool, beware. Because while the right child care technology can absolutely be used as a force for good, too much tech can drain your profitability.
We know. It’s a minefield. 💣
In this article, we’ll help you break down what profitable child care provision actually looks like and how you can assemble a balanced tech stack for a more streamlined and profitable child care business.
Sound good? Let’s go!
Want to see what MomentPath can do for you? Schedule a free, no strings attached demo and find out how easy it can be to keep your child care business in the green.
A quick note before we get started: While we occasionally use the term ‘daycare’ in this article to reach readers who may be searching for help using this term, we know that this word doesn’t always do justice to the massive impact teachers and child care professionals make each and every day in the classroom.
For more on where we stand with this topic, feel free to check out our article Child Care vs. Daycare: 12 ECE Experts on Why Words Matter.
According to a recent Grand View Research report the US Child Care Market is set to grow from $18B in 2020 to a whopping $73.8B in 2027 (and yes, the report was published post-Covid).
The report attributes this astronomical profit prediction to increased child care demand, new government measures, and service providers’ awesome growth strategies (hats off to you! 👏🏼).
And although there are obvious challenges facing the early childhood education industry, the report shows that technology is the ultimate catalyst for growth.
✨You heard it here first: there is light at the end of the tunnel. ✨
So, what does your child care business need to join the ranks of the most profitable companies come 2027? Two things:
💡Need inspiration? Check out how Lightbridge Academy aced their growth plans during the pandemic.
💡Need inspiration? Read on…
When it comes to choosing the right tech for your child care business, there’s a whole lot to consider—from how much time it takes to set up and roll out, to how well it integrates with existing systems.
But the most important factor is how the tools you choose affect daycare profitability.
Here are a few profitability markers to think about when choosing new tech tools for your child care business:
If you’re still unsure how much tech is too much, here are a few crucial do’s and don’ts to put you firmly on the road to success.
There are approximately a million and one tech options for every child care function—but do you really need that many tools in your life?
Answer: No, you do not. 🚫
We get it. The temptation to replace outdated systems with sparkly new tools is hard to resist—but remember, the more you shove into your toolbox, the harder it’ll be to organize.
Instead, take your time choosing the right tool.
Ben Blake, CIO of Lightbridge Academy explains how he whittled down their burgeoning tech stack in favor of an all-in-one child care management tool, “I worked with Lightbridge to gather over a hundred and ten requirements detailing our needs in that space… We canvassed the market and looked at many, many different applications out there. We compared those to that set of requirements and narrowed it down to five different solutions.”
Let’s break this tech selection process down:
DO: Look for one tool that hits as many of your requirements as possible.
It’s no secret teachers are having a tough time.
In fact, a study from the American Federation of Teachers found that educators have twice as much work stress as the average US employee—and that was before Covid hit.
Teachers have enough to do, so give them a break by cutting down the amount of tech they need to log in and out of. Choose as few tools as you can—preferably an all-in-one tool that integrates with your other systems. 😉
DO: Give your teachers a break by finding one central tool to keep everything organized.
Successful ECE businesses need to focus 100% on investments that pay back fast.
That’s why you need to get your ROI figures straight before hitting ‘sign me up’.
Here’s a quick example of how to work out your ROI on a smart parent engagement tool:
First off, say your average annual revenue per child is $3,000, and the average number of children per family is 2 (this is your potential revenue per family).
$3,000 x 2 = $6,000 per year
With a child care management tool that costs just $3 per child, per month ($156 per year), you could double your revenue and almost 20X your investment. That’s an ROI of 1923% for just one child.
Sounds like a no-brainer to us.
Want to know more about calculating the ROI on your child care management tool? Check out Child Care Management Software: 4 Simple Steps to Calculate the Real ROI.
DO: Take time to figure out whether your new tool is worth investing in before you sign up.
The world is a confusing place right now, and more than ever people want stability and familiarity.
In other words, brand consistency = brand resilience.
To build unbeatable brand consistency, make sure your unique child care philosophy comes through loud and clear in every stakeholder interaction—whether it’s what your parents and teachers see, hear, feel or do.
Here’s how it works:
DO: Follow the see, hear, feel and do checklist to make sure your brand consistency is always on point.
Striking the perfect balance with technology should be top of the agenda for futureproofing your child care business. Get it right, and you can expect a boost in productivity, brand consistency and above all, profitability.
Here’s a final rundown of how to ace that balance:
Remember, there are many valid reasons why too much tech is often just too much to handle—so make life easy for your employees and families and focus on providing the right experience with the right tools. From there, the profitability will follow.