Given the high prices parents pay for child care, it is often assumed that child care programs must be very profitable. However, this is almost never the case. In fact, just to break even, a program must operate consistently within the constraints of what child care...
If parent fees plus third-party payments don't equal the per-child cost, an early care and education program is losing money. The Iron Triangle was developed to illustrate how focusing on three key metrics can help care providers think strategically and practice strong fiscal management.
Early childhood care and education providers sometimes struggle financially, often due to challenges beyond their control. Louise Stoney and Libbie Poppick have developed The Iron Triangle which is comprised of three key metrics that can help providers make sound financial decisions for their businesses.
Providing high-quality environments that close the achievement gap for young children can be costly, and as early childhood education (ECE) providers seek to meet quality standards in Step Up to Quality it's important that their businesses possess a sound financial strategy. Here's a look at the Iron Triangle which focuses on three key metrics that make ECE programs financially viable.