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The Economics of Building a Childcare Business

Odd Lots

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The Cost of Starting a Preschool Center

Parents paying for child care wonder where their money is going. The economics of an early childhood center are simple: tuition minus labor minus rent. However, the numbers don't seem to add up. Teachers should be paid more, but many factors affect the pricing. Discounts are given, and there is overhead in the business. Mom and pop centers face more regulatory overhead compared to chain centers.

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