As a family child care provider, making sure your business is financially sustainable has to be a priority.
Taking the time to input your expenditures and income into a spreadsheet like this one will help to tell you when you’re on the right track or when you need to make changes to your business practices.
Keep these budget sheets as historical records; compare how you’re doing now to last month, six months ago, last year, and longer. Set a goal and work backwards: how much do you need to earn, and how can you get there?
Look ahead: what do you want to save for? More materials? Landscaping? A remodel? Retirement? Envision your five- and ten-year plans, and break that down into steps. How much would you need to put aside each month to make your dream a reality in five years?
Looking at finances can be intimidating, especially in a field that operates on such a small margin. But as the saying goes, “knowledge is power!” and the more you know about the financial health of your business, the better prepared you are for your future and for the children in your care.
Are you saving for retirement? As the owner of a small business, you should consider your options for retirement savings. Tom Copeland offers information about the benefits of Roth IRA in comparison to other options and eligibility requirements for starting this type of retirement account. You can see the blog related to this topic here, and information about a variety of other business and personal financial concerns at Tom Copeland’s Taking Care of Business site.