In this episode, Jennifer sits down with Matthew Booher, Co-Founder and Partnerships lead at Clad, to talk about something every childcare owner cares about, whether they enjoy talking about it or not: getting paid! You can have strong enrollment, healthy tuition numbers, and even profit on paper, but if parent payments or subsidy dollars are arriving late, it can still feel like you are constantly wondering where the cash went.
With nearly 30 years in the PreK-12 world, Matthew brings a big-picture view of the financial challenges child care businesses are facing right now and some surprisingly creative ways to solve them. Jennifer and Matthew talk about creating more consistent cash flow, taking the uncomfortable job of chasing payments off an owner’s plate, finding capital for things like payroll or a new playground, and even using financial tools to support enrollment growth. Most importantly, this conversation is about giving owners more stability and more time to get back to the reason they opened their doors in the first place: serving children and families.
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Below you can read the key takeaways from this episode:
Key Takeaways:
- [5:18] Matthew shares how nearly 30 years in the PreK-12 industry eventually led him to join Clad and its mission of helping schools and child care centers.
- [7:02] Consistent cash flow can take a major financial and mental burden off owners so they can spend more time focused on children and families.
- [8:10] Late parent payments and inconsistent subsidy dollars are challenges showing up across the industry, so owners struggling with them are definitely not alone.
- [9:30] Matthew says one of the most consistent financial trends right now is actually inconsistency, which makes predictability even more valuable.
- [11:14] Matthew shares how access to short-term capital helped one center cover payroll during a difficult summer and another invest in a new playground.
- [11:45] Clad’s model includes three main areas: consistent weekly cash flow, tools to support enrollment growth, and access to capital for investing back into the business.
- [12:57] Rather than treating every center the same, Matthew starts by understanding the owner’s story, community, and specific financial needs.
- [14:40] Clad began with a former school owner who was tired of spending his time chasing tuition payments instead of doing the work he loved.
- [18:17] Centers can use Clad without replacing all of their existing software, making it more of an activation than a full technology overhaul.
- [19:21] Parent payments and subsidy funds can both be included so owners have a more predictable picture of what is actually reaching their bank account.
- [20:41] Consistent cash flow can give owners the working capital they need to make improvements that help their center stand out and grow.
- [24:18] Matthew encourages owners to take an honest look at whether money is really arriving on time, because a few late payments here and there add up.
- [25:00] Owners should also watch subsidy payments closely and connect with other providers when payment problems may be affecting an entire community.
- [26:16] Jennifer points out that big-hearted child care owners can easily become lenient about tuition without realizing how much those delays impact the business.
- [28:35] The goal of better financial systems is not to give owners one more thing to manage, but to get business tasks out of the way so they can return to their why.
- [30:18] Matthew understands why the model can sound too good to be true and encourages owners to do their homework and talk directly with centers already using it.
- [31:42] Even an owner who thinks cash flow is perfectly fine may discover another opportunity, from funding growth to opening an additional location.
Quotes:
“The one consistency we’re seeing in the trends is that things are inconsistent.” — Matthew [9:30]
“We’ll cover your payroll for a few months. And it saved her business, and it literally saved her.” — Matthew [11:14]
“He spent most of his time as a school owner chasing payments and getting parents to pay on time, and so he was not able to do what his passion was, which is to teach.” — Matthew [14:40]
“Clad is not an implementation; it’s an activation.” — Matthew [18:17]
