Homebased Childcare Software Case Study
Carol runs a home-based childcare business where she used to type each individual child, caregiver and parent information in to a spreadsheet. The calculations were very complicated and there was a concern that it could create many mistakes that will cost the business. If the process could be easier then Carol will be able to pass the job on to the area managers.
At the time Carol spent about three full days changing this information each week.
Her goal was to expand the business into four branches in year one, around the country, but to get each manager to run an easy to use system. She needed a system desperately otherwise her workload would increase to 12 days each week. If she had the same goal the following year then 24 days a week.
We worked collaboratively to write a system that allowed the full maintenance of children, caregivers, parent/guardians, printing of letters and printing of reports. As an added benefit a document management system was created so branches around the country can securely access information.
Carol’s current spreadsheet process was costing her about $24,000 per annum. To expand to four areas would be $96,000 per annum. Year three could of been $384,000 per annum.
The software was released in small phases so Carol could look at expanding her business sooner. While the software was developed two branches were open and a third one after the software was completed.
The project was very large so it was decided to take it out on a 4 year progressive payment term at $2,395.83 a month. Totalling $115,000. Although this seems a lot, remember the customer was able to secure three more branches rapidly bringing in additional income, at least $90,000 per annum. Year two most likely will bring in at least $120,000 per annum.
Note: The progressive payment term is a very unique thing that only few software companies provide.
Projected total costs for five years
Projected time in labour for next five years
Overall senior executive statistics for project
|Cost of the project||$115,000|
|(Optional) Monthly support||$2,395.83|
|Savings (without project costs)||$24,000 to $960,000 per annum|
|Non-monetary benefits |
|1. Dramatic savings on time |
2. Easier & quicker to train
3. Easier to use
4. Reduction in errors
5. Added benefit of a Document Management System
6. Ability to pass work on to others
|Monetary savings in first year||$39,250|
|Monetary savings in second year||$64,250|
|Monetary savings in year five||$228,000|
|New asset value||$92,000|
|Release time |
1. 3 months
2. 3 months
3. Each phase after this was on average one month
If you would like to discuss doing something similar for your business then contact us now.