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The Economics of Building a Childcare Business

Odd Lots

NOTE

The Challenges of Staffing in the Childcare Industry

In the post-pandemic reality of the childcare industry, callouts and labor crunches have become more common. To address this problem, centers often need to hire substitute teachers or floaters. However, this can be expensive and labor-intensive, especially when considering turnover and training. Some chain companies rely on ARPA money, which is a COVID grant system, to stay cashflow positive. Overall, the childcare industry is a low margin business that faces various challenges.

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