How do FDC scheme owners make thier money?

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How can FDC scheme owners make their money?

 

Scheme owners do not get any money from parents, however the educators do. They charge parents a service fee, part of which is covered by the CCB (Child Care Benefit) and the parents pay the gap

The scheme owners do charge the educators an administration fee.

This fee is up to each individual scheme to negotiation the amount.

However it could be anything from 0.50c to $300 p/child, p/hour -roughly

When you first apply for Service approval, scheme owners can apply to have up to 60 educators on their Capacity and then apply for an amendment to increase their capacity after three month of operation.

Below is an estimated calculation of how much money a scheme owner can expect to make within the first three month of operation. 

Figures below act only as an illustration, actual earning will differ between individual scheme owners.

0.70c per hour / per child x 50 hours (maximum hours per week care per child)

= $35.00 per child per week x 7 children (maximum children per educator) = $245.00 per week per educator.(this is how much each educator is to give the scheme owner every week)

$245.00 per educator x 60 educators = $14,700 per week (Scheme owners takings)

General Weekly Expenses:

Nominated supervisor = $1250.00 per week (Inc. super, workers comp etc…)

Co-coordinator (1) = $800 per week (Inc. super, workers comp etc…)

Co-coordinator (2) = $800 per week (Inc. super, workers comp etc…)

Co-coordinator (2) = $800 per week (Inc. super, workers comp etc…)

One week total wages =$3,650

Average rent roughly = $1000.00 per week (please note that you can operate your business from home)

Outgoings (electricity, Phone, Internet, insurance) = $1000.00 per week

Stationary = $150.00 per week

Petrol = $250.00 per week

Advertising = $200.00 per week

Miscellaneous expenses = $500.00 per week

One week total Expenses =$2,850

 Figures act as an illustration of earning potential, earnings will differ between scheme owners

One week total wages $3,650 + One week total Expenses $2,850 = $6, 5000

$14,700 – $6, 5000 = Remaining Profit $8,200 per week

Please note: this amount will vary based on the number of educators you have and the number of children each educator has in their care, these figures are based on the assumption you get 60 educators, all with 7 children in their care and you charge 0.70c per hour for a total of 50 hour care p/wk.

Keep in mind that each educator can care for only 4 children under 5 years old.

There is definitely money to be made but it will take some organising and will take some time to collect the educators. Educators with 7 children can make about $1,500.00 – $3,000.00 per week so it is not a hard sell.

You will also need to keep in mind the initial setup cost which incorporates things such as: computers, desks, printers, cabinets, stationary, website, promotional material, etc.

In my opinion this does sound to me like a lucrative and good business to have and I believe you can make good money if you really get into it.

Good luck in you decision, if you need any further help or assistance in your ideas or setup, VTABS is here to help you out.

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