How I Built A $300K/Month Childcare Management Software
Hello! Who are you and what business did you start?
Hello, my name is Simon Ho. I am the founder of 1Core Solution (“1Core”), based in Cupertino, CA, the heart of Silicon Valley. This is a 25 year “starter” story.
1Core is a cloud-based, SaaS, all-in-one management application platform for the childcare/preschool industry. We have served childcare providers of all sizes. In addition to the commercial childcare, we also work with the Department of Defense (DoD). Our platform is used by the U.S. Air Force and Navy Child and Youth Program, serving tens of thousands of families in military bases around the world.
What's your backstory and how did you come up with the idea?
The backstory of 1Core has three key components: my daughter Cassie, my career in management consulting, and the influence of Silicon Valley.
1Core was born out of my need as a parent to find peace of mind for my daughter, Cassie, who has special medical needs. My experience in management consulting with PricewaterhouseCoopers provided me with a strong foundation in strategic thinking and problem-solving, which was crucial in launching the startup.
Lastly, living in Silicon Valley during the dot-com boom (2000) exposed me to the innovative spirit and the can-do belief that technology can change the world which inspired me to take the startup plunge.
My daughter Cassie was born with a congenital liver disorder called Biliary Atresia with no known cure. My wife stayed home to take care of Cassie for the first two years. After Cassie’s health stabilized, we decided to put her into childcare so she could socialize with other children and my wife could return to work.
As first time parents, my wife and I quickly became aware just how important high quality child care was to working parents. We embarked on an extra deliberate search for the right child care for Cassie. I soon discovered how much technology was lacking in the industry.
This sparked further research which eventually led to a decision to leave my senior consulting position and launch a startup to develop technology that could deliver peace of mind to parents like us and for all those involved in the industry of childcare.
The 1Core motto is that we listen, we solve and we elevate. Part of our business DNA is to always listen to our customer needs in enhancing our existing solution or in building out new solutions.
Take us through the process of building the first version of your product.
Back in early 2000, childcare software was all desktop based with siloed back office functions and limited consumer facing interfaces. I noticed a gap in the market and saw the potential for cloud-based software that could fundamentally change how software could be developed, delivered and supported in the childcare industry.
My consulting experience working with Fortune 500 companies taught me the importance of good business processes and provided the framework to develop the first version of the software.
Being a parent looking for childcare really helped me understand the need to have peace of mind since my child is the most precious ‘asset’ I have, whom I have to drop off everyday. Interacting with the childcare directors, owners and staff also helped me appreciate the amount of stress they experience while running the childcare business and this motivated me to make sure the application is designed to bring peace of mind to them as well.
1Core had a very promising start and was well received by the industry. I decided to grow the business organically and not seek any outside funding. Four years in, the business was acquired by KinderCare, the largest childcare provider in the world at the time. It took a lot of hard work to get to that point but it was tremendously satisfying for me and my team to know that the technology was valued by such a reputable organization.
Fast forward three years later, the new KinderCare management decided to divest from operating a software business. We made a pitch and were successful in reacquiring the business back from KinderCare for a very attractive price.
This somewhat unusual mergers and acquisitions experience prepared us well as we entered into the next phase of the business as we continue to make an impact in the childcare industry.
Describe the process of launching the business.
We built the first version of our solution by working with a few childcare providers in Silicon Valley.
A critical factor for 1Core’s success is my fortuitous meeting with my cofounder, Swami, our CTO. Swami is one of the most brilliant technologists I know. Our business plus technology combo are critical to our business success. I feel so lucky to have found a perfect business partner and am still working together after a quarter of a century. Swami not only drives our product strategy but manages the remote team from India.
Since launch, what has worked to attract and retain customers?
With our bootstrapped approach, 1Core pursues a gradual organic growth. We leverage primarily word of mouth from our existing customers and partners.
The 1Core motto is that we listen, we solve and we elevate. Part of our business DNA is to always listen to our customer needs in enhancing our existing solution or in building out new solutions. Everyone in our organization is encouraged, in fact required, to always listen to our users: directors, staff and parents. This model ensures that we are always attuned to what the industry needs.
With this continuous improvement strategy, we are able to build a super sticky solution with over 96% retention rate.
1Core had the foresight at the beginning to architect our solution to take advantage of cloud computing. We were cloud before cloud was a thing. That positioned us well to capture some early adopters as well as the DoD contracts.
Startups are incredibly challenging. Passion will drive you to work 10-12 hours a day, likely 7 days a week. Without a clear reason why you're doing it, it’s easy to doubt yourself and be tempted to give up.
How are you doing today and what does the future look like?
A few years ago, we went through a rebranding exercise to come up with a brand that captures our true essence. The name 1Core represents our vision of creating an all-in-one solution, to serve our users so we can all create a brighter future for children.
1Core is doing well and has established a solid and trusted brand in the industry. In 2023, 1Core won the Small Business of the Year award from Small Business Expo.
Another key strategy is to pursue integration with strategic partners to build out “ a system vs. a point” solution for the industry. One area we are particularly excited about is the integration to assess and measure the child’s brain development as well as providing personalized guides to childcare teachers and parents, leveraging the exciting emerging Gen AI technology.
Beside our growth in our original market, the commercial childcare, we strive to serve the Department of Defense and other government agencies. With our DoD work, we are so proud that we can contribute to the defense readiness of our country.
After a quarter century in the business, clearly thinking exit strategy is in the equation. One option we are evaluating is turning 1Core into an evergreen company.
I feel quite privileged to have experienced all the previous major compounding technological waves from the Internet, cloud computing, mobile and the latest Gen AI. That experience helps us make good and strategic decisions for the business.
I am so proud of the solution 1Core has built to help my daughter Cassie is now available to her to use when she has children of her own in childcare.
Through starting the business, have you learned anything particularly helpful or advantageous?
Our 25-year startup journey wasn’t always straightforward, and like many other startups, 1Core experienced its share of ups and downs. Here are some meaningful lessons we’ve learned along the way:
- Bootstrapped Model: Bootstrapping worked well for us based on our philosophy. Being scrappy helped us maintain full control over our destiny. While we haven’t raised any money so far, we’re now considering growth capital, as our key competitors are venture or private equity-backed.
- Aligned Team: Finding co-founders and team members who share our vision has been crucial. It not only helped the business survive and thrive but also made the journey more enjoyable and rewarding. Life is short, It does not make sense to work with people you don’t like or respect.
- Patience and Long-Term Vision: Few businesses are overnight successes. Treating my startup as my life’s work has been incredibly rewarding. Patience and commitment to a long-term vision are vital.
- Authentic Branding: Creating an authentic brand is critical. To do this well, we need to continuously improve our storytelling skills.
What platform/tools do you use for your business?
We are a cloud-based business so we rely heavily on various hosting and online services from Amazon Web Services (AWS). For online payment processing, we partner with a couple of top-tier payment processing companies.
We use a number of best-in-class online tools: Zoom, Box, Calendly and Freshwork.
What have been the most influential books, podcasts, or other resources?
Following are a few influential books I have read:
- The Checklist Manifesto: How to Get Things Right
- The Gardener and the Carpenter by Alison Gopnick
- Power and Prediction: The Disruptive Economics of Artificial Intelligence
Currently I am reading a fascinating book named Unit X: How the Pentagon and Silicon Valley Are Transforming the Future of War. The book cover gives you an idea what’s contained in the book..
Few of my favorite podcasts:
- Founders - David Senra
- Moonshoots with Peter Diamandis
- The Prof G Pod - Scott Galloway
Advice for other entrepreneurs who want to get started or are just starting out?
Here are some pieces of advice I wish someone had shared with me when I started my entrepreneurial journey:
- Know Your Why: Startups are incredibly challenging. Passion will drive you to work 10-12 hours a day, likely 7 days a week. Without a clear reason why you're doing it, it’s easy to doubt yourself and be tempted to give up.
- Think Long-Term: Creating something worthwhile takes time. Be patient and focus on the long-term vision.
- Impact on Family: Starting a business will significantly impact your family life, especially your spouse. Have a heartfelt conversation to ensure you're both on the same page and ready to face the challenges together.
- Satisfaction of Entrepreneurship: Entrepreneurship is deeply satisfying because it allows you to create something from nothing. When done right, it gives you the freedom to manifest your life’s purpose.
Are you looking to hire for certain positions right now?
1Core is looking to grow our brand and market share.
We are looking for brand ambassadors and business development evangelists to spread our vision of creating a brighter future for children.
We are also looking for individuals with a great product management mindset.
Where can we go to learn more?
You can learn more about my background and 1Core Solution:
1Core sponsors a Youtube channel called The ChildCare Channel, a safe space designed to Inform, Inspire, and Innovate in the childcare industry.
My daughter Cassie and I started a not-for-profit foundation called My New Liver to raise awareness about living liver transplantation and save lives. This foundation was inspired by our personal experience, and it's our way of giving back.
Another AI native not-for-profit project I started recently is called 1Blosm. Our moonshot vision is creating a world where each child can reach their full potential and blossom into the person they came to be.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
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