Are you planning to set up your own preschool, or do you intend to renovate your current preschool? It doesn’t matter which one you are doing. A budget plan is essential for setting up a business or renovating the premises. The first thing you will need to do is create a detailed budget plan. This is to plan your expenses carefully.
If you have never done a budget plan before, you may feel that it is pretty hard with it. In this article, we will be covering what you should take note of on a budget plan. You will learn the basics of doing a budget plan and ensure you are not missing anything for a first-timer.
Why Do You Need A Budget Plan?
Image Credit: Canva
No matter what business you are in. Creating your own budget plan is a necessary step for you to open and operate your business. You will have to secure some funds to renovate your preschool. If you intend to fund from a financial institution, you will need to develop a budget plan on how you spend the money and how you will repay in the future. It will help you to understand your business more.
Here’s some reason why a budge plan will help you:
- Understand and prepare the various types of expenses that you need for your setup
- Quantify the resources that you need for the renovation
- Ensure that you have sufficient funds to sustain your business
- Understand the steps you need to take for set up
How To Craft Your Budget Plan?
Budget Plan #1: Understand The Cost
Image Credit: Canva
Before you start doing your budget plan, you will want to understand the costs and expenses associated with renovating your preschool. There are a few types of expenses that you will want to understand. This will help you better know what costs and expenses to include in your budget plan.
Expenses can include capital expenses and operating expenses. At the same time, costs include fixed costs and variable costs. Operating expenses are ongoing costs. This contains the daily function of your preschool. Capital expenses are the asses that you purchase for your preschool over time that will benefit your preschool.
Fixed costs are expenses that don’t change much from month to month. Variable costs will vary in proportion according to the activities involved in your business. For example, your monthly internet bill will be a fixed cost regardless of how many people are there in your preschool. While variable cost refers to, for example, providing meals for the kids, meals are considered a variable cost. This is because the meals will be provided according to the child you have in the school. The more children you have, the more you will need to spend on meals.
2. What Cost To Include In Your Budget Plan
Image Credit: Canva
So you will be wondering what kind of cost you should include in the budget. What costs are associated with your business? You will have to identify the essential items that should be included in your budget to set up your preschool.
Licensing cost is one of the main costs you will want to include in your budget. No matter setting up what kind of business, each business will have to hold a valid license. According to local regulations, the license must be renewed each year in most cases.
Facility and renovation costs are other costs that you will want to include. You will have to find an appropriate space to set up your preschool. You will need to renovate the preschool according to your need before operating it. If you’re operating in your own home, costs will be lower. But If you’re purchasing or renting a commercial property, you will probably have to renovate it, and the cost will be higher.
Image Credit: Canva
You will need furniture and fittings for your preschool. Furniture such as tables, chairs, and cabinets is essential for a preschool. Draw out the floor plan and think carefully about what kind of furniture you will need to make most of the space. Do a budget on individual items.
You can’t forget the cost of the utilities. Utilities such as water and electricity are monthly costs for your preschool. The costs depend on the size of your preschool. The bigger the space, your electricity cost will be higher. Water bills depend on the amount of kids you have in the preschool. Internet bill will be fixed and depend on the plan that you choose.
Preschool supplies such as books, toys, and educational material are inevitable. You will need it to entertain the kids and support learning outcomes. Once the preschool is operating, you’ll need to allocate some budget each month to purchase new supplies or replace old ones.
Depending on your need, you may need to hire reception staff, administrative staff, and other staff. Anticipate how many employees you will need depending on your requirement. You can use online resources to find out the average salary for the role you want to employ.
3. Bring All Together In Budget Plan
Image Credit: Canva
Once you have done your research and collected all the data you need, you can create a simple spreadsheet to summarize your budget. You can do it in categories and create an itemized list for each category. Decide how many you need to purchase and how much you expect it to cost.
A budget plan is something that you draft out and manage your budget in it. If you think any changes are needed, you may amend the budget accordingly. But try to manage your budget in the amount you expect to invest. Overbudgeting may cause you to overspend and doesn’t have enough funds.
Once it is done, use your budget plan to secure financing for your business, optimize your spending and understand your operating costs. Based on your budget plan, you can determine how many enrollments you need before you can get your investment back.
Speak with The Experts
Planning to get started at your kindergarten but have no idea about it?
Childcare Center Renovation Singapore is a reliable company for renovation and interior design. They have about ten years of experience in this field and also have a good reputation from customers.
Call us now to get your desired kindergarten design ideas now!
