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| ProfessorF wrote:
Ok. I don't have kids, so I can't really comment on how much they cost me to keep them alive. And outside school hours is precisely what's being talked about here, isn't it?
Let's look at this.
You've got kids who need care - you need somewhere appropriate to keep them. You need qualified staff to look after them. You need insurance. You need heat and light. You need materials to keep the horde amused. You might need to feed them too, and if that's the case, we can probably assume you'll need people with the appropriate qualifications, some form of food prep area and all the cost of getting that up to grade. I suspect though, that many don't.
And let's not forget, this isn't a public service or a charity, so there needs to be some mark up, and as we're all in this together, profits must be made.
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OK, let's do a back of the fag packet calculation.
900 quid per month. per child. of course it's not as if there'll be two or three children. In the place my brother took his son to before he was old enough for proper school, there were 2 groups of 12 children, with three staff per group. Thats.. £216,000 a month gross income. Say you're closed over Christmas, and you take in that * 11.5 a year, a total income of £2.48m a year
Say you pay each of the staff £25K a year - you don't, the job doesn't pay near that much, but say you did. Say you also have two kitchen staff who you pay £30,000 pounds a year. You don't, but anyway.. And as a rough estimate that each employee actually 'costs' twice what they earn, your total yearly staff costs are £420,000 a year. Say you buy a property to house your business that costs £400K - you could do that easily in Manchester, which is where the example I'm talking about is. And say you spend another 100K fitting it out in the correct way, buying furnishings and 'stuff'. You'll need to find £100K of that yourself for a commercial mortgage, but the monthly repayment on a £400K mortgage at commercial rates is about £2400 a month, or another £28.8K. let's call that £30K.
Add in food for each infant, say £4 per infant per day five days a week 50 weeks a year, or another £2400 per year.
So your rough major expenses are £(420K+30K+2.4K) or just over £450K a year. Tell you what, let's assume we massively underestimated all costs and double that and add a bit more, so your total business expenses are
one million pounds a year. In that case your gross yearly profit is a measly £1.4 million pounds. On a £100K investment.
You're damn right there's a profit to be made.
