Growing By Leaps and Bounds, With Some Help from UCEDC

Lucy Pritzker’s childcare center had grown right out of its business plan. Clients of Just Babies Daycare, LLC were so happy there, they didn’t want to leave after babyhood. 

With the help of UCEDC, Pritzker tweaked her business plan and financed an expansion to accommodate older children. Using a line of credit for small businesses*, Pritzker has ready access to as much as $15,000 for her Westfield center.

 “Like most small businesses, when unexpected costs arise—for example, a broken air conditioner, state regulations requiring expensive environmental testing—the cash isn’t always there to cover the expense,” Pritzker said. “The stress of not having a cushion was really wearing on me.”

 UCEDC Loan Outreach Coordinator Paula Star helped Pritzker through the process, and the money has been used for everything from child-size steps for the sink to playground equipment for older children. It also covers salaries, supplies and other expenses in advance of client payments.

 “I knew I needed flexibility to use the money when I needed it,” Pritzker said. “With a revolving line of credit, I borrow what I need and pay it off, and then I borrow again when I need it and pay it off.”

Westfield-based Just Babies welcomes children from 6 weeks to 5 years old. Children are separated by age—infants, waddlers, toddlers, sugar cookies, smart cookies—and rooms can be modified to accommodate whatever ages are attending at a given time. This flexibility allows children to attend one to five days a week or even intermittently.

Learning the Business of Caring

Pritzker, a former nanny and teacher, has a bachelor’s degree in education and a master’s in counseling. She established her business years ago by caring for children in her home. “We went from five kids in my basement to 40 in this great commercial space,” she said .

 “But my expertise is in curriculum development and child development, not running a business,” said Pritzer. So UCEDC’s Senior Director of Financial Programs Ellen McHenry helped Pritzker write a business plan in 2005, and she was on her way.

 “UCEDC really helped me take my pie in the sky idea and make it into reality. It helped me see if I have x number of children, I will bring in y dollars but will spend z dollars. I had all the numbers floating in my head, but they helped me put everything down on paper. I learned to use a business model that really does work. Six years later I still read my business plan to keep on track of my original goals.”

Expanding to accommodate older children was admittedly not an original goal, but Pritzker realized the move made good business sense. It also allowed her to watch her first clients—who entered Just Babies at 3 months old—graduate kindergarten.

“UCEDC is a great resource,” she said. “I got great information at no charge, and ultimately was able to get the loan I needed.”

 For more information on Pritzker’s business, please visit www.justbabiesdaycare.com.

 *UCEDC’s Line of Credit program is available exclusively to small businesses located in Union County