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B2C2 Expansion Toolkit

Module 1 - Part 2 - Information Gathering

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Knowing the environment you are working in and the direction of potential shifts will help you understand potential risks associated with your expansion project.  Your information gathering should identify both internal and external factors that influence your organization or a particular project. Before writing a strategic plan you need to determine:

  • if your organization is financially stable enough and organizationally prepared to take on an expansion project,
  • the external factors at play and how they impact your plan.
More details

Financial Stability

Demonstrating that your organization has  well grounded financial practices and  is financially ready to take on an expansion project is an important consideration for any current or potential funders. 

In terms of financial stability – together with your Board ask yourself: 

  • Do you have a healthy balance sheet and a balanced budget?  
  • Do you have more revenues than expenses? 
  • Do you have adequate financial reserves? (3 to 6 months is typical)
  • Are the funding sources that you have for operations secure and dependable?

 

Capacity and skill to manage a project

Part of the information gathering within your organization will include determining how an expansion project will be managed, including the role of the board and Executive Director/designate in decision making. 

Some things to consider when determining how the project will be managed include:

  • Determine what internal structure will work best within your organization to lead and guide the project through to completion.
  • Do you have the proper employee in place to act as Project Lead?
  • Do you need to go externally to hire a project lead (like B2C2)?
  • Decide who and under what conditions decisions are made and create policy to support them.
  • Ensure that the project doesn’t negatively impact your current programs.
More details

Canadian government context

The way that licensed child care in Canada is funded has dramatically shifted with the introduction of the Canada-wide Early Learning and Child Care (CWELCC) system. Each province and territory (excluding Quebec) have agreements and action plans in place for how CWELCC will be rolled out to the year 2026. Families will pay on average $10/day by 2026.

Ontario government context

In Ontario, unlike other provinces and territories, the government designates local governments as the Service System Manager (SSM) for early years and child care services and flows funding to them, who then direct it to service providers.

The Ministry of Education has provided each SSM with “directed growth” targets as and targets for non-profit spaces created. 

Local government context

There are 47 SSM’s in Ontario who play a central role in the planning, funding, administration and operation within each of their service areas. They are required to engage in system-wide planning and setting strategic priorities for the coming years. How each SSM plans to meet their provincially directed growth targets and non-profit proportions will be embedded in their plans.

As a non-profit child care organization, your relationship with the SSM is of utmost importance. Not only are they your key funder, they also decide if you will get CWELCC funding or any other available funding for any kind of expansion. Therefore the information included in their service system plan and alignment with your organization’s concept will be key to your decision about your expansion plans. 

More details

Activity 1: Watch a video about PESTLE analyses

A PESTLE analysis studies the key external factors (Political, Economic, Sociological, Technological, Legal and Environmental) that influence an organisation.

A thumbnail of the PESTLE analysis template document

Activity 2: PESTLE analysis template

A PESTLE analysis studies the key external factors (Political, Economic, Sociological, Technological, Legal and Environmental) that influence an organisation.

Thumbnail of activity document

Activity 2: See an Example of A “Landscape Summary”

In some cases child care centres don’t need a full PESTLE Analysis. This is an example of the types and level of information used before briefing the board of directors and creating a strategic plan.

Part 1 - Getting Started With Your Board

Part 2 - Information Gathering

Part 3 - Strategic Planning

Part 4 - Assessing Risks

Part 5 - Collaborations and Relationships

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Continue to Part 3
Module 1 Progress
Amount Completed 40%

Knowing the environment you are working in and the direction of potential shifts will help you understand potential risks associated with your expansion project. Your information gathering should identify both internal and external factors that influence your organization or a particular project. Before writing a strategic plan you need to determine:

  • if your  organization is financially stable enough and organizationally prepared to take on an expansion project,
  • the external factors at play and how they impact your plan.

Using this information, conduct a risk assessment to identify, communicate and develop mitigation strategies for potential risks associated with expansion. Together with your board do a SWOT analysis. Use the tips below to assess if you are informed and ready to move forward. 

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Financial Stability

Demonstrating that your organization has  well grounded financial practices and  is financially ready to take on an expansion project is an important consideration for any current or potential funders. 

In terms of financial stability – together with your Board ask yourself: 

  • Do you have a healthy balance sheet and a balanced budget?
    • These will be demonstrated in your annual audits and any regular reports that the board receives from staff.  
    • The audit will show your year-end assets/liabilities and revenues/expenses – it will show that you have adequate accounting procedures and internal controls and a history of good financial practices and performance.
  • Do you have more revenues than expenses?
    • For example, do you have sufficient cash on hand to support your existing ongoing operations?
  • Do you have adequate financial reserves? (3 to 6 months is typical)
    • Do you have access to financing in case of an emergency (e.g. a line of credit)
  • Are the funding sources that you have for operations secure and dependable?
    • Have you applied for or have you received notice that you have been approved for CWELCC funding for your new build or addition?
    • Is your enrollment stable?
    • Do you have a waiting list that showcases the need for care in the community that you would like to expand?

 

Capacity and skill to manage a project

Part the information gathering within your organization will include determining how an expansion project will be managed, including the role of the board and Executive Director/designate in decision making. 

Some things to consider when determining how the project will be managed include:

  • Determine what internal structure will work best within your organization to lead and guide the project through to completion.
    • This may include a project committee of Board members and/or staff.
    • Identify who in your organization has the time and interest to dedicate to the project and would like to participate in a subcommittee.
  • Do you have an employee who has the experience, skill and time to act as the project lead (point person) who will liaise with the many outside professionals involved?
  • Do you need to go externally to hire a project lead (like B2C2)?
  • Decide who and under what conditions decisions are made and create policy to support them.
    • This supports planning for the unexpected
    • Some potential roles/rules for decision makers include:
      • required project decisions that are within the approved budget (including contingency) can be made by _____?
      • Required decisions that influence schedule delay less than 2 weeks can be made by __________?
      • Any project cost decisions that increases the budget must be referred to the project team
      • Any schedule increases greater than two weeks must be reported to the project team
  • Ensure that the project doesn’t negatively impact your current programs.
Close

Canadian government context

The way that licensed child care in Canada is funded has dramatically shifted with the introduction of the Canada-wide Early Learning and Child Care (CWELCC) system. The federal government now provides system level policy and significant funding to reduce fees, expand access and inclusion and increase quality in partnership with the provinces, territories and indigenous communities across Canada. Each province and territory (excluding Quebec) have agreements and action plans in place for how CWELCC will be rolled out to the year 2026. 

Prior to the introduction of CWELCC, the child care system was primarily funded through parent fees. This has changed significantly as public funding now replaces parent fees as the main funding source. This is good news for families who will pay on average $10/day by 2026. It is also good news for licensed child care programs who are enrolled in CWELCC as it provides a steady and dependable source of income. 

In December 2022, Bill 35 was introduced to parliament.  If passed, it is in 3rd reading,  the bill would enshrine the principles of a Canada-wide early learning and child care system into federal law. This would include a commitment to maintain federal funding for provinces, territories and Indigenous peoples to support the provision of early learning and child care under a Canada-wide system. However with a change in Government it is uncertain what changes could take place.

The next Federal election will be held on October 20, 2025

 

Ontario government context

Funding under the Ontario – Canada-Wide Early Learning and Child Care (CWELCC) Agreement aims to increase quality, accessibility, affordability, and inclusivity in early learning and child care in the following ways;

  • Provide a 25 per cent base fee reduction retroactive to April 1, 2022, building to a 50 per cent reduction in average base fees (based on 2020 levels) for licensed early learning and child care by the end of calendar year 2022 and reaching an average base fee of $10 a day by 2025-26 for licensed child care spaces;
  • Create 86,000 new high-quality, affordable licensed child care spaces relative to 2019 levels) and predominantly through non-profit space.
  • Address barriers to provide inclusive child care; and
  • Workforce development.

In Ontario, unlike other provinces and territories, the government designates local governments as the Service System Manager (SSM) for early years and child care services and flows funding to them, who then direct it to service providers.

Ontario through the Ministry of Education has provided each SSM with “directed growth” targets as well as targets regarding the portion of non-profit spaces created. Ontario’s agreement states that the proportion of non-profit licensed child care spaces for children aged 0 to 5 must be maintained at 70% or increased by the end of the CWELCC agreement.

It is unknown what the next phase for expansion will include beyond 2026.

Local government context

There are 47 SSM’s in Ontario who play a central role in the planning, funding, administration and operation within each of their service areas.  In their role they are required to engage in system wide planning for early years and child care programs serving families with children birth to 12 years old. This involves extensive research and analysis, including consultation with a broad range of stakeholders. Based on their findings they set strategic priorities for the coming years. How each SSM plans to meet their provincially directed growth targets and non-profit proportions will be embedded in their plans.

As a non-profit child care organization, your relationship with the SSM is of utmost importance. Not only are they your key funder, they also decide if you will get CWELCC funding or any other available funding for any kind of expansion. Therefore  the information included in their service system plan and alignment with your organization’s concept will be key to your decision about your expansion plans.

 

Support from your SSM and alignment with their priorities

  • Gather as much information as you can about your SSM’s directions. This can include;
    • Early Learning and Child Care Service System Plan
    • Municipal Council reports
    • Identified priority neighbourhoods
  • Inform your SSM  that you are interested in expanding and get their support to proceed.
  • Research funding opportunities through your SSM, like grants or loan guarantees.
  • Keep informed of application and approval process to obtain CWELCC and expansion funding.
  • Map out key dates for any kind of application process, like Expression of Interest(EOI) or Request for Proposal (RFP)
  • If you are in a number of different service areas with different SSM’s be aware that each will have different processes and priorities.

The Government of Ontario has a unit, Infrastructure Ontario, which does provide funding for bricks and mortar to specified public services and businesses but child care is not on the list – we’re now beating the drum to persuade the government that Infrastructure Ontario should be extended to child care. 

 

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