Early Childhood Education in 2023

It takes a village.

Balancing the needs of students, staff, and stakeholders in operating a private preschool — a turnaround story.

Starting Backwards

A center losing money, one family was ready to take on.

Pee Wee Prep is a private, limited-enrollment child care center in Bayonne, New Jersey. Due to mismanagement from the previous administration, the center was operating at a loss every month — and wasn't even fully licensed for infant care, which kept the client base smaller than it needed to be.

30 years

Aging, under-maintained

Though it had been operating for over 30 years, Pee Wee Prep had fallen into a state of disrepair and had been mismanaged for quite some time.

35 of 41

Occupied, but unprofitable

In spite of its monthly losses, the center had 35 of 41 available roster spots occupied — including numerous contracts with the State of New Jersey.

A Fresh Start

Turning things around, without a childcare background.

Family owned since 1983, I assumed the roles of director and head teacher in March 2016, right after finishing my master's in User Experience Design from Rutgers University. I had (admittedly) no experience in child care, but felt a responsibility to step in on behalf of both my own family and the students, staff, and families who depended on the center.

Balancing Needs

Two problems that had to be solved in tandem.

Resolving these issues required a great deal of planning and balance, as each aspect of the center's operations needed to work with the others. Achieving that equilibrium was — and continues to be — one of my greatest challenges.

#01

Tuition far below market

Pricing hadn't kept pace with Hudson County market rates, and the center was losing up to $5,000 a month on poor collections alone.

#02

A building in need of repair

Furniture, fixtures, classroom materials, and toys all needed to be replaced and replenished before the space could compete.

#03

Understaffed, underpaid

We needed to hire additional qualified staff and raise compensation and benefits to keep them.

#04

Disorganized operations

Existing administrative processes were almost entirely undigitized and hadn't been updated to use current technology.

Strategy & Approach

Reinvest in quality, then let quality justify the price.

Updating the curriculum and training staff ensured Pee Wee Prep had a high-quality program, which in turn justified an increase in tuition. Income was reinvested into staff compensation, renovations, supplies, and the resources needed to license the center for infant care — expanding our clientele.

"In my previous roles, the tech companies I worked for all valued their company culture. As this was my first leadership position, I did my best to integrate what I'd learned and support our staff."
Finance

QuickBooks Online

An affordable, effective system for payroll, invoicing, and tax prep — staff paid weekly by direct deposit, parents invoiced by email.

Licensing

Digitized & secured

Staff and student records reorganized; sensitive information moved to secure filing, with digital copies shared only through approved NJ State access.

Digital presence

Brand, site & scheduling

Designed a logo and brand identity and built a website where parents can schedule tours, register, and learn about the program — plus Homebase and Class Dojo for staff and family communication.

Success Metrics

What we measured, and why.

Given the aspects of the center we were trying to improve, we tracked both qualitative and quantitative measures: total enrollment, length of enrollment, staff retention, tuition income, expenses, and grants and funding.

85%
Enrolled pre-COVID
36 of 41 roster seats, before the March 2020 closure
100%
Full since reopening
Restricted capacity of 30, filled through March 2022
100%
Full with infant care
All roster spots filled since infant licensing, Sept. 2022
Monthly income over time
2020
2021
2022
2023

Tuition rates change depending on several factors, including expenses and local market rates — introduced incrementally, honoring existing contracts at lower rates to ease cost to current families.

Enrollment, Over Time
March 2016

Roster of 35 students with 6 available seats. All 41 spots eventually filled by October 2019.

March 2020

Center closed due to nationwide lockdowns at 36 of 41 seats occupied. Renovated during closure.

July 2020

Reopened under restricted capacity — no more than 10 people per classroom, staff included.

March 2022

Operated at the maximum allotted enrollment of 30 students, supported by grants and funding for added financial stability.

September 2022

Completed licensing for infant care (ages 6 weeks+), quickly filling every available spot in that age group — with several now waitlisted.

Going Forward

Pillars supporting communities.

Early childhood education is a highly necessary but often overlooked field. Quality child care centers truly are pillars of their communities, supporting young students, teachers, and the families that depend on them. Pee Wee Prep began working with Grow NJ Kids, a program providing resources to raise program quality, and continues building on its infant and toddler program as more Pre-K 3 and 4 options become available through public schools.

Pee Wee Prep — Bayonne & Jersey City, NJ
Case study by Marc Pappalardo