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To Profit or Not to Profit - That is the Tough Question

by Roger Neugebauer
July/August 1999
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Article Link: http://www.exchangepress.com/article/to-profit-or-not-to-profit-that-is-the-tough-question/5012876/

Two working mothers, Jane and Bonnie, were upset when their family child care provider decided to retire. They were frustrated with the lack of good alternatives they had for the care of their children. And in talking to their friends and community leaders, they found that this frustration was widespread. Many families in their community, some well-to-do, others struggling to get by, were in desperate need of good child care.

Jane, an elementary school teacher, and Bonnie, a middle manager in a Fortune 500 company, decided to do something about this critical community need. They agreed to quit their jobs and start a center that parents could turn to with confidence.

Once they had made this exciting decision, they were confronted with a perplexing choice - should they organize their program as a for profit or a non profit? They consulted a range of early childhood experts on the advantages and disadvantages of the two forms of business and here is the advice they received.

Ease of Start Up

It is nearly always easier and less expensive to set up a for profit child care organization than a non profit one. If an individual, or a husband and wife, are going into business ...

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