2023 Q1 - IACDP Video eJournal

IACDP Video eJournal – Q1 2023

MISSION: "Enhancing the Children's Development Industry by harnessing the collective experience, knowledge and wisdom of the entire community. Facilitated communication (Internationally and Interdisciplinary Sports, Arts, Education), builds our Industry one conversation, one event, one project at a time."

NOTE on the IACDP eJournal articles and video interviews:

The opinions and recommendations in these articles are exclusively those of the author(s). Publication by the International Association of Child Development Programs (IACDP) is not an endorsement. The IACDP strongly recommends that any Member considering implementing the content of these articles first consult with your business attorney, insurance broker and accountant to assess important issues that might affect your business as a result.

HEARTFELT THANKS to the Board of Directors, and ALL of our Guiding Lights, Suppliers, and Associations! Our rich and diverse pool of expertise in the International Association of Child Development Programs gives rise to a fantastic array of short video interviews and articles in each edition.

In the last quarter of 2022, I was fortunate enough to get an invitation to the Institute of Child Activity Programs (ICAP) in the United Kingdom (UK).

It was absolutely lovely to witness first-hand what these creative and entrepreneurial people had developed. Many new friendships blossomed and you can get a feel for the journeys of several of these leaders in the video interviews in this edition!

Note: at the May 2-4, 2023 Conference above, our IACDP Awards Dinner will focus the IACDP SPOTLIGHT on several deserving Members as we honor our first Awards inductees in the categories of Outstanding Contribution, Hall of Fame, and Lifetime Achievement!

Message from the Executive Director Frank Sahlein

CELEBRATE with us in Puerto Rico on May 2-4, 2023, for our “live and in-person” IACDP High-Performance Conference – contact Frank Sahlein with any questions.

For those who are (or are considering) the High -Performance Conference in San Juan, Puerto Rico - this is a very select event with topics that you won't find anywhere else:

• Building the Child of the Future - facilitated by expert Ron Shuali, M.Ed ).

• Business Sustainability for both Social and Profit Reasons (facilitated by Certified BCorp and industry expert Miren Oca).

• Risk Management, Safety & Security (facilitated by industry expert Guy Beveridge).

• The Child Activity Center MetaSphere environment (facilitated by our Metaverse expert Daniel Roopnarine).

• Financial Futures and Private Equity Groups (expert PEG panelists).

• Advanced Business Process Design (facilitated by international consultant www.LuluPDG.com).

These topics (and many more like our GRANTS and SPECIAL NEEDS Workshops by Carmela Solito and Karissa Johnson) will assist you in forming your company strategies, services, and products for the coming years. Not to mention the potential for collaborations and dealmaking!

THANKS awesome Conferece Co-S ponsors - Jackrabbit Class, iClassPro, Tumbl Trak, Inside Publications, 3rd Level Consulting (which now includes the LEAP Learning and Swim Consultant companies), Sweet Peas, Snyder Insurance Services, and more.

If you are not yet a member, join and register at www.IACDP.org. Members can log in and register for the conference.

Fairmont El San Juan Resort BOOKING PASSKEY link: https://book.passkey.com/e/50399059

IACDP DOMAIN THEMES

CHILD ACTIVITY CENTERS - industry global GPS

Where our CAC industry is headed and how YOU can navigate the waters!

Premise: Private Equity Groups (PEGs) have entered our Child Activity Centers industry ocean, and are making significant waves. This trend will continue for the foreseeable future (2-3 years). The child care and swimming industries have large and active PEGs. The gymnastics, cheerleading, ninja, and performing arts industries are next up. This is a very active marketplace with many competing PEGs in the United States, and is also underway in many other countries.

Question: Why are the Private Equity Groups (PEGs) interested NOW? To answer that question, we need a bit of perspective – read on!

Perspective: Historical factors for CAC owners:

• Mission: (Hobby or Passion) Our purposes have been to positively impact the wholistic development of children, to provide great jobs, to enhance the family units, and to be actively involved in our local and global communities.

• Model: (Vocation) Our dual model of (a) developmental instructional classes and (b) recurring revenues (monthly or session-based automatic renewals or re-enrollments) is a classic model for business success.

• Money: (Profession) In the past, the original goal for CAC business owners was to be able to make enough money to be able to provide for our own families. This expanded to the desire to create management positions that also supported their families. Finally, we wanted to grow the business to create a viable exit strategy at some point of our choosing.

• Multiply: (Investor) Many owners opened second and third locations in their local areas. Others have actively opened and/or acquired a chain of 6 -12 or more locations. Some owners explored the potentials of franchising or licensing operations to others.

Observation: It is interesting that for PEGs, the viewpoint is almost completely reversed!

Perspective: Historical factors for Private Equity Groups (PEGs):

• Multiply: PEGs have the need for GROWTH. They are competing with each other in many markets. They may also have the objective to grow enough to then either sell to a much larger PEG or take the company public.

• Money: The #1 priority of the PEGs is, obviously, to generate a profit for the investors. The reason that the PEGS were attracted to the child care industry was the universal NEED for child care AND the economies of scale of running dozens or hundreds of operations from a centralized organization.

In the case of the swimming lessons industry, the Net Profits were high enough to be "investment quality" long ago.

• Model: In this area, the factors are nearly identical. Our dual model of (a) developmental instructional classes and (b) recurring revenues (monthly or session-based automatic renewals or reenrollments) is a classic model for business success. PEGs l ove this model for profit-generation.

• Mission: PEGs can certainly buy into the purposes of positively impacting the wholistic development of children, providing great jobs, enhancing the family units, and being actively involved in our local and global communities.

What can YOU do for future growth positioning?

The main questions that 3rd Level Consulting gets from independent CAC owners are: (a) "what does the future look like in terms of all phases of operations, and (b)"will we be able to compete with the PEGs?".

Answers: (a) CAC owners must continuously strive to improve all phases of operations, starting with their human resources (staffing) systems, education, marketing, technology, financial results, facilities and risk management. It is no easy task, and this is WHY it is imperative to have your business teams aligned both horizontally and vertically (business process design). (b) YES – individual owners CAN compete with the PEGs if step (a) above is the guide!

The main questions that 3rd Level C onsulting gets from the PEGs are (a) what does the future look like in terms of all phases of operations, and (b)"how can we show the CAC owners that they now have viable exit strategies?"

Answers: (a) the answer for the PEGs is nearly identical to the answer for the CAC owners – with the additional imperative of coordinating their talent system-wide. (b) the answer is through both past transactions and proven business broker intermediaries like 3rd Level Consulting. The key is to develop TRUST on both sides of the transaction, which requires specific industry valuation techniques and advanced negotiating skills so that both parties feel that the deal process and structure was fair.

Where do we ALL go from here? Step 1 is staying informed!

www.3rdLevelConsulting.com and www.IACDP.org can help you navigate a course to current and future success, Contact us for a confidential, free, no-obligation discussion of your specific business and personal situation and objectives.

Author: Frank Sahlein

CEO – www.3rdLevelConsulting.com www.3rdLevelSportBiz.com

Executive Director – www.IACDP.org

A New Level Of Performance EPIC SPORTS

It is no secret that our youth these days are dealing with many more stressors than ever before. The academic demand, our online exposure and influence from social media is placing our younger generation in a state of constant fight or flight.

To then place an additional level of pressure to perform in an athletic arena is only compounding the issue. Sports should be a means of joy, excitement and community, not stress, rivalry and self doubt. Join me in my mission to create an environment where young athletes will go from surviving to THRIVING.

Transform from within to reach your fullest potential to then change the lives of those around you. The choice is yours, make the commitment.

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Staff training sessions; get your staff to understand the bigger picture and work together as one unified vehicle, unlock the true power of your

Youth Athletic program development and structure; do your coaching programs need a facelift or is your organization ready to implement an addition to your existing offerings of activities, we provide honest feedback and assistance making your business thrive

Included with all services is our workbook that outlines the S.E.E.D. model. This revolutionary program will provide you with a framework that will assist you with the growth of your inner self while working on your external professional goals.

Update on Special Needs Programs

Karissa Johnson (USA)

Karissa Johnson

KARISSA@SPECTRAPDX.COM WWW.SPECTRAPDX.COM

Spectra Gymnastics is a specialized studio catering exclusively to people with developmental disabilities. Spectra's programs are catered to support each athlete, regardless of where they are at in their journey.

Spectra offerings: Inclusion preschool

Private & group lessons

Sibling lessons Group readiness programs

Speech & ABA Therapy

Meet Karissa

Karissa has 20+ years of experience working with neurodivergent children. She is the founder & owner of Spectra Gymnastics in Portland, Oregon Karissa is driven to promote the acceptance and inclusion of athletes living with developmental disabilities. Karissa has a background in Behavioral Therapy and is highly experienced in applying positive teaching strategies into the gym and other learning environments.

SpectrAbilities was created to provide teacher training for inclusion and special needs programs! As Autism prevalence rates rise at alarming levels, teachers must be trained on how to best work with neurodiverse children & athletes. Our future success depends on it.

Team training & consulting services offered! -onsite -virtual

+44 (0) 7500 772514

Kristine@KristineMonaghan.com www.KristineMonaghan.com

Over the last 11 years in the children’s activity business sector, Kristine has done it all. She has been the director of a London charity, a franchisee, a master franchisee, a franchisor with a fantastic UK wide network, and a children’s activity business coach, all whilst being a mother to 2 young ladies. She even launched a subscription box, a slime lab and starred in her own YouTube show.

Kristine has worked from the ground up and so has experienced first-hand the highs and the lows of business ownership.

Kristine has felt the acute pain of failure and the absolute joy of success. She has worked with the best and the worst, but throughout it all she has made it a key goal of hers to turn every hurdle into an opportunity to learn.

It is this hard won knowledge that Kristine now shares with other likeminded entrepreneurs through her successful Market Like A Pop Star programme.

So whether you’re fresh to the idea of being your own boss and simply looking for motivation and accountability, or you’re a seasoned veteran looking for a fresh pair of eyes and a new perspective, Kristine has the knowledge and experience to get you energised, revitalised and on the right path to realise your goals, ambitions and dreams.

Contact Kristine for a FREE discovery call today and lets see what we can achieve together.

Acro Gymnastics Training

Peter Pearson (UK)