Managing Enrollment: A Core Skill for Child Care Business Success
Running a successful child care business means wearing many hats. From caregiver to administrator, you must apply a wide range of skills. One of the most essential business skills to master is enrollment management. More than just tracking a waitlist, managing enrollment is an active process that directly supports your program’s financial health and long-term sustainability.
This post outlines five foundational steps to help you build, maintain, and adjust enrollment in a way that supports your business goals.
Step 1: Evaluate Demand
Start by identifying what families in your area need. Enrollment strategies must align with real demand in your community. For example, a program focused on preschoolers may not thrive in a community where families are primarily looking for infant care.
You can assess demand by tracking regular inquiries and waitlist requests or by contacting other providers in your area to learn what age groups or services are in highest demand. You might discover gaps in services such as overnight care or find that certain age groups are consistently full while others remain under-enrolled.
Ask yourself:
Are you turning away families for certain age groups?
Are some slots consistently unfilled?
Have community conditions changed, such as a nearby center closing or new housing developments?
Regularly revisiting demand ensures your services continue to match what families are looking for.
Step 2: Determine the Number of Slots Needed
Once you’ve assessed demand, determine how many additional children you can serve. This step requires reviewing your budget and cash flow to confirm your business can financially support an enrollment increase.
For example, if you plan to enroll four more children, calculate whether the additional revenue will exceed the associated costs. Knowing how many children you need to enroll each month and year to remain profitable helps you make smart, sustainable decisions.
Step 3: Understand the Impact on Staffing
Increasing enrollment often means adjusting your staffing plan. Make sure you understand your state’s child-to-staff ratio requirements and assess whether your current team can accommodate more children. If not, determine if you can realistically and affordably hire additional staff.
Step 4: Attract Families
To reach your enrollment goals, you must actively market your program. A strong sales and marketing plan connects your business to the families who need your services.
Consider these elements:
Your business identity: What makes your program unique? What needs do you meet? What values do you stand for?
Your competition: How do your services and pricing compare?
Your budget: What can you afford to spend on outreach?
Your timeline: How long will it reasonably take to achieve your enrollment goals?
Marketing efforts can include family referrals, open houses, and community networking. You may also consider digital tools like social media and custom websites, or printed materials like flyers and brochures. Whatever you choose, be sure the associated costs are built into your financial planning.
Step 5: Maintain and Track Enrollment
Once you’ve reached your target enrollment, the focus shifts to maintaining it. Enrollment naturally fluctuates throughout the year, due to summer schedules, children aging out, or reduced hours when school begins, so plan accordingly.
Track upcoming changes and be ready to adjust. For instance, if several children will transition to kindergarten, prepare to fill those slots. Keep extra funds on hand to help you navigate periods of lower enrollment.
Family satisfaction is also critical. Regularly gather feedback about what parents and children appreciate most and use it to sustain what’s working well. You can also ask families what additional services they would be willing to pay for. These enhancements can both boost retention and improve your cash flow.
Final Thoughts
Enrollment management is not a one-time activity. It is an ongoing process that connects your mission with your market and supports your financial health. By regularly evaluating demand, aligning capacity, planning for staffing, engaging in targeted outreach, and maintaining strong relationships with families, you can build a thriving child care program for the long haul.