Daycare Providers Need To Get Paid Too: Collecting For Your Services
One of the major issues that daycare providers must content with is collection problems. With the more traditional methods such as using cash or checks, parents are sometimes late and occasionally write checks that bounce. To combat late payments and bounced checks, many providers turned to using payment coupon books or automatic processes such as automatic withdrawals, PayPal, or credit card.
Checks or Check
Before the advent of many of the automated processes, the only way for a customer to pay daycare providers was with cash or a check. Unfortunately, this created all kinds of collection problems. A receipt had to be generated to show payment, the parent might struggle with on-time payments, or they might even write checks that had insufficient payments, which could result in penalties assessed to the day care.
Payment Coupon Books
Payment coupon books are booklets set up with reminder slips that include the name, amount, and date due. Though it helps some parents to stay organized there are still a host of problems. First, these do need the daycare providers to pay to have these printed. It also does not ease some of the other collection problems such as checks with insufficient funds. Plus, it doesn’t work if parents don’t use it.
Automatic Withdrawals (ACH)
To combat late payments and bounced checks, many daycare providers turn to automatic processes such as automatic withdrawals from bank accounts (ACH). With this method, receipts and late payments are eliminated because parents instruct their banks to allow the daycare to make automatic withdrawals for the specified amount at regularly scheduled intervals. However, though the daycare does not have to deal with bounced checks, insufficient funds can still be a problem.
PayPal
Some daycare providers are looking to PayPal to also help solve some of these problems. The customer can use a PayPal account to pay on-line, which is a huge convenience reason for some parents. Obviously, there is no need for a receipt and insufficient funds are usually not a problem. If funds are not available in the PayPal account, the difference is drawn from the bank account or from a credit card account. Like the automatic withdrawal, parents can also schedule the payments in advance.
Credit Cards
Finally, some daycare providers allow for their customers to pay using credit cards. This can be done in person or on-line. It eliminates bounced checks, but a customer can have a credit card rejected due to credit limits. Like automatic withdrawals and PayPal, credit cards do not need a receipt and can be regularly scheduled to avoid late payments. There is, however, a small fee associated with each transaction for the vender – usually around two percent.
Over the years, daycare providers have learned that automated processes such as automated withdrawal, PayPal, and credit cards have solved many of their collection problems. Unlike with cash or checks, late payments and insufficient funds are greatly reduced. However, no method is perfect, and daycare providers must weigh the benefits of each before choosing the preferred. They should also be ready to accept more than one method.
Take advantage of Jeff’s extensive internet marketing knowledge visit Local Child Care Marketing today to receive 11 Essentials To Marketing Your Child Care Business Online.Be sure to stay up to date on current internet marketing strategies by visiting Jeff’s Blog.
Why Is Running My Preschool More Difficult Than I Imagined When I Started
Opening any new business can prove far more difficult than predicted; this is especially true of opening a preschool, because you, the owner, are often being driven by a desire to work with children. However, after the initial excitement, the owner can be swamped with stress and steep learning curves in terms of licensing requirements, staffing, finances and marketing. As a result, there may be little business growth which further exacerbates the problems.
Stress
A new preschool owner may not be prepared to handle the daily stress brought on by a new business. The pace is often much more hectic than imagined and is complicated by dealing with difficult situations such as discipline and unhappy parents or staff. Money concerns and steep learning curves in terms of administrative duties can truly leave owners feeling like they are in way over their heads.
Licensing Requirements
Licensing requirements can be one of the most difficult things to master and can have the most dire consequences if the owner fails to be thoroughly knowledgeable in this area. The process is often very complex and varies from state to state. Failing to follow the guidelines can result in a preschool being sanctioned or even shut down. As a result the preschool can lose the trust of parents or even be sued if a child is hurt while attending the preschool.
Staffing
Managing staff can also be much more difficult than imagined. First, you have to attract and retain highly qualified staff members, because this is the most important factor in attracting and retaining parents. You must also make sure that background checks are performed and must deal with a variety of scheduling conflicts. You must also learn to delegate so as not to be totaling overwhelmed – not an easy task for those who like to be in control.
Marketing
Those owners who attempt to open a preschool without some understanding of marketing will see very little business growth. It is true that word of mouth is the most effective tool in a preschool’s arsenal. However, that is not true in the beginning and you must be prepared to aggressively market using a variety of tools such as mass e-mailing and Social Networks like Facebook. As an owner, you must also understand how to track marketing results in order to make informed decisions.
Finances
Ultimately the success or business growth of any preschool is measured in terms of finances. This too can come with a steep learning curve and managing finances may require the help of an expert or the need to learn special software. Then, there are cash-flow problems. Start up costs can require almost three months of operating cost without any incoming money. Also, deadbeat parents must be dealt with, which is often hard for those who are tender-hearted.
As a result of these issues, it is simply not enough to be passionate about children. Preschool owners, like yourself must be knowledgeable about licensing requirements and must be able to handle staffing, marketing, and financial issues. Unfortunately, these are often underestimated by owners who are experiencing the thrill of opening a new business. However, failure to get a handle on them can result in a great deal of stress for you, the owner and perhaps even ultimately failure.
Take advantage of Jeff’s extensive internet marketing knowledge visit Local Child Care Marketing today to receive 11 Essentials To Marketing Your Child Care Business Online.Be sure to stay up to date on current internet marketing strategies by visiting Jeff’s Blog.
Selling Your Business | Six Key Factors To Think About Before You Sell
Maybe you’re selling your business to retire or you’re handing over ownership to a successor. Or perhaps your business has become a financial burden and you feel it’s time to let go. Whatever the reason for selling your business, consider all your options, along with the benefits, consequences and costs.
Preivously, we’vd discussed the most common mistakes business owners make in selling their business. Transferring business ownership is often a complicated process, with rules and regulations to follow. Here are six things to consider before you sell:
1. Exit Strategy. Selling your business starts with a plan, advises the U.S. Small Business Administration. You need steps to navigate the process. Given the complexities of ownership transfer, the SBA also recommends having a lawyer and business specialist involved.
2. Regulations. Exiting your business comes with legal, regulatory and tax obligations you must meet. After the exit strategy, state and federal taxes and regulations top the list of things to consider. For help with federal guidelines, see the IRS guide for closing your business and the IRS checklist.
3. Business Structure. Sole proprietors may decide on their own how to exit their businesses. However, collective owners of partnerships, limited liability corporations and corporations must agree on a strategy, which usually is written in their rules and bylaws, and comply with state and federal regulations. Contact your state secretary’s office and revenue services department for help.
4. Type of Sale. Personal and financial situations help determine the best type of sale for your business. Here are options to consider:
- Outright sale. This is a full and immediate transfer of your business and assets. Consider this option for a quick and complete transfer of ownership.
- Gradual sale. If you’re not ready to give up the revenue your business generates but don’t want the full, everyday responsibility of ownership, a gradual sale might be a solution.
- Family sale. When passing the business on to a relative through a family sale, understand the gift and estate taxes involved – they affect both buyer and seller. The SBA recommends creating a succession plan for this type of ownership transfer.
- Liquidation sale. If you don’t plan to keep your business’s furniture, supplies and equipment, you might think about liquidating these assets. A “retail” or “going out of business” sale is one option. The SBA describes more options – click here.
If you’re forced to liquidate your assets through bankruptcy, consult your lawyer.
5. Customer Protection. No doubt you’re concerned about the sale’s effect on your customers. Bill Whitehurst, a certified business broker, says that minimizing any damage that public exposure of the sale might have on customers, employees, competitors and suppliers should be part of your exit strategy.
Protecting customers’ personal and financial information, such as credit card and banking data, is vital. The new business owner wants your customers — they might have been a major incentive for the sale. But unhappy customers won’t stay and might even sue. Get information from the SBA on protecting and securing customer information.
6. Employee Preparation. You likely plan to stay on a while to oversee the business’s transition to the new owner. You may need the managers and staff who remain with the company to help, as well. Make preparng employees for the transition one of your exit strategies. Otherwise, you might need to stay on longer than you planned.
Bill Whitehurst has been engaged as a Texas business broker for the past 15 years and has over 100 successfully closed transactions. He has both MBA and BBA degrees and is a certified Business Intermediary with the International Business Brokers Association.
Are You Making These Mistakes At Your Website?
Is your website bringing you all the sales and opportunities you want?
Over the years as I have studied marketing best practices and mentored thousands of women entrepreneurs in marketing and growing their business, I have observed what works and what doesn’t work in creating effective websites that sell.
All too often I have seen entrepreneurs and professionals spend thousands of dollars on pretty but ineffective websites. They pay someone for a lovely design but that person may not know the basics of how your website needs to be designed so that you get more leads and more sales.
Here are the mistakes I see and the steps to fix them:
Mistake 1: No Way to Capture Leads
The number one goal of your website should be to capture names and email addresses of prospects so you can get your message in front of them over and over. You’ll want to automate this system with one of the many services that will do this for you.
Mistake 2: Opt-In Box and Call to Action Not Visible
Your opt-in box for your free offer and to subscribe to your list needs to be at the top of every page of your website. Top left is ideal, or in the header or top right are excellent too. All too often, these boxes are hidden far down the page. Make it very easy for people to find it as soon as they come to your site. A call to action is what tells people what to do next. Don’t assume they will know. Say “click here now to get your free report” or “enter your name to receive your free gift instantly”.
Mistake 3: No Compelling Offer to a Specific Target Audience
This is the biggest mistake I see. There are two aspects to this. First, the target market is too broad or general. Second, there is nothing offered that is compelling enough for these ideal prospects to exchange their name and email address for. It’s not enough now to say “sign up for my newsletter”. You need to make it much more enticing. Offer something that will solve a problem for your marketplace. Offer something they’ll get instantly such as a special report, tips lists, audio class or e-course, a quiz or assessment, a CD or a video – and let them know they’ll also receive your ezine or weekly tips.
Mistake 4: A Homepage That Is All About You
When someone visits your website, the first thing they want to know is “what’s in it for me?” They want to know that you understand them and their challenges before they want to know about you. The mistake I see too often is the website owner’s mission statement or vision or credentials first thing on the homepage. Make the beginning paragraphs about your prospects, not about you. Show them that you identify with them and understand their frustrations, and only then let them know how you can help them.
Mistake 5: No Compelling Headline on Each Page
A headline serves two purposes: to capture people’s attention so they will want to read more, and to tell the search engines what your site is all about. Search engines look for key words or phrases in your headlines and first two paragraphs of text, and so do people. When prospects see that you understand them and you’re talking to them, they’ll want to read more.
Mistake 6: No Clear Path for Prospects to Follow
Keep your navigation at your site very simple and guide people through so they aren’t overwhelmed at your home page by too many options. The main goal of your website should be to get people on your list. Once they are on your list, you will have multiple opportunities to sell to them. Many entrepreneurs make the mistake of trying to sell high-end services too soon before prospects get a chance to know you and appreciate your expertise. Get them on your list first, and then as they come to appreciate you as a resource and trusted advisor through your articles and tips, start telling them gradually about your services and products.
Here are six steps you can take right now to shift your website from ineffective to a continual sales generator:
1. Have a way to automatically capture prospects names and email addresses. There are many excellent services that can automate this for you.
2. Make sure your opt-in box and call to action to capture leads are at the top of every page.
3. Create an enticing offer that prospects will clamor to get and will gladly give you their name and email address to receive.
4. Review your homepage to ensure that it’s mainly about your prospects and their challenges and not all about you.
5. Write a compelling headline using your keywords for each page of your website.
6. Develop a clear path for prospects to follow from the initial subscription to your list to something free or low-cost, then on up to medium and higher priced products and services. This is often called your “marketing funnel”.
Do all these things, and you should start seeing more subscribers added to your list and more sales at your website.
Jan Marie Dore is the founder of Femalepreneurs.com a coaching and training company dedicated to teaching women how to consistently attract more clients, make more money, and have more freedom in their business. For marketing and sales strategies to turn your expertise into profitable new income streams and build a solo business with a global reach, visit http://www.femalepreneurs.com
5 Key Business Resolutions For The New Year
As we begin the new year, it is a good time to set some business resolutions, in addition to the resolutions you might have set in your personal life. Resolutions are a good way to create a framework for results you’d like to create this next year.
While there are many possible resolutions you might set, the following five will help you chart a strong course towards a healthier business for this new year and beyond.
1) Resolve to work more fully in your areas of brilliance.
It can be tempting to take all the business that comes in, and to try and make clients “fit” when they just do not seem to- but the problem is that each time you try and make something work, you may be moving farther away from your own areas of brilliance and unique talent. We each have a few areas in which we absolutely shine, as well as some areas in which we’re really good. Of course, as a multidimensional person, it’s very likely that you can do many things well- but what if you do fewer things brilliantly? Clients will pay more for brilliant results.
2) Resolve to select for your ideal clients.
So much has been written about targeting your ideal client that I will not be spending much time on that here. There is a key distinction between knowing your ideal client and actually selecting for your ideal client. The first step is to identify who your ideal clients are, and the second step is to take regular and consistent action to find and select them. This means that you focus on marketing specifically to them, and marketing as widely as you can to attract many of them. It means that you keep marketing even when your business is full, so that you can be free of the cycle of ‘feast or famine’ that plagues many small business owners. Also in this resolution is the idea that you will remove or reduce from your client load any clients who do not fit your ‘ideal client’ profile. Think about the clients you like best, and work the best with. Try to bring in more people like them.
3) Resolve to raise your fees related to your experience.
The new year is a good time to examine your fee structure. Chances are that you are more skilled this year than you were last and therefore it might make sense to raise your fees. Even a modest increase can make a difference to your bottom line, and be a subtle- yet powerful- signal to your clients that you are becoming more valuable in your skills and assistance with each passing year. Knowing that you will raise your fees may entice your clients to retain you for longer term contracts, which can further improve your cash flow.
4) Resolve to streamline your expenses.
Streamlining your expenses can be a good way to retain more profit in your business. After all, it makes little sense to raise your fees, and generate more income, just to have all that surplus exit your business just as quickly. Streamlining your expenses means that you reduce where you can, without sacrificing necessity. It is likely that you are maintaining at least some services and subscriptions that you are not using fully. This might be the time to reduce or eliminate these completely. It’s also a good idea, where you can, to negotiate for better rates on your usual expenses. Can you receive early payment discounts? Can you bundle services together to save money? Can you pay for your business expenses by credit card, perhaps earning points, cash back, or other perks for bills you were going to pay anyway?
5) Resolve to improve your expertise.
The new year is a good time to ascertain how you might become more skilled and more valuable to your current and future clients. Can you add a new skill? Offer a new service? What would your clients be thrilled if you could do for them? Alongside this, also look at where you might be able to let go of some services or lines of business. If you focused all your efforts on the most lucrative areas of your business, you’d find it easier to accomplish all the goals- big and small- that you have for your business.
Again, while there are many resolutions you might choose to focus on, these five are key strategies for improving your business in the new year, and, quite possibly, having your best year ever.
Dr. Rachna Jain is a content marketer and traffic generation specialist who helps her clients become more profitable and more popular online. Learn how you can get the right kind of attention to become liked and rich by requesting your own copy of the 7 Keys to Profitable Popularity