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Garden Nursery Business Plan
Start your own garden nursery business plan
Rose Petal Nursery
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.
Rose Petal Nursery is dedicated to providing a quality choice for people looking for plant and garden supplies, as well as serving contractors who need a reliable source of products. Our start-up expenses come to $41,500 which includes the cost of the greenhouses ($38,000) and the cost of rent for the land ($1,000). The start-up costs will be financed entirely by Jim and Dan Forester.
We will offer a wide variety of plants, trees, vegetable plants, along with a selection of garden supplies. Most of the plants we sell will be grown in our greenhouses. With a convenient location Rose Petal Nursery intends to successfully market to the residential customer, as well as contractors and renters.
We would like to see a five to ten percent increase in our customer base each year. Our marketing strategy includes providing a knowledgeable staff, affordable prices, a great location, and top notch customer service.
Rose Petal Nursery has been the dream of owners Jim and Dan Forester for many years, and has been a project in the making for the last five years. Jim and Dan will manage all aspects of operations at Rose Petal Nursery. Dan will oversee the staff and be involved with the ordering of merchandise, while Jim will be responsible for the ordering of the garden supplies and tree stock, as well as the maintenance of the greenhouses.
Rose Petal aims to experience a growth rate of 20% in sales for the second year of operation and build upon that as the company grows. With creative marketing, and a quality choice of plants and garden supplies for our customers Rose Petal Nursery intends to make its presence known in the nursery community.

1.1 Objectives
- Maintain an average gross margin at or above 50%.
- Generate an average of $1,000 of sales each business day of each month.
- Realize an annual growth rate of 10% in Year 2.
1.2 Mission
Rose Petal Nursery is dedicated to providing a wide variety of plants and trees in an aesthetic setting. Customer service is extremely important. We want each customer to have a pleasant shopping experience, and it is the intention of our staff to answer questions with expertise and to offer advice when we feel it is needed.
1.3 Keys to Success
The primary keys to success for the company will be based on the following factors:
- Sell products of the highest quality with excellent customer service and support.
- Retain customers to generate repeat purchases and make referrals.
- Continue to expand daily sales by adding to the variety of plants we sell.
- Communicate with our customers through creative advertising.
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How to Write a Business Plan for Daycare and Preschool
- brightwheel
- Running a business
Writing a daycare or preschool business plan is a big task, but due diligence and hard work will help you understand what you’ll need to launch and run a daycare or preschool successfully.
What do daycare investors want?
Your local government will have rules and regulations you’ll need to follow as a small business owner and childcare provider. Start by reviewing the Child Care Aware of America's licensing guidelines for your state and city. Once you’re clear on licensing guidelines, you’re ready to start writing your childcare business plan.
The purpose of a business plan is to help secure funding. You’ll likely need financing to launch your preschool or daycare, especially if you want to avoid the monthly repayment of a loan.
Investors provide businesses with money in exchange for partial ownership. As a result, they expect a larger return on their initial investment. Because many investors work in business, they prefer to invest in an established company.
Most investors look for:
Industry background and experience
Financial performance and promise.
Investors want to make money. Therefore, they are more inclined to work with experienced entrepreneurs and business owners to guarantee a return on their investment.
This might sound discouraging for those with little experience or without a business management background, but the opportunity doesn’t end there. You could consider bringing on a partner with a business background. Additionally, many investors act as a source of business advice.
You need to demonstrate that your business will make money. Investors will likely want to see signs of business growth before they give you money.
Additionally, investors will want to know about your financial stability. Questions an investor might ask are:
- What do you plan to do with the money?
- Has your business been up or down in recent years?
- Is your company losing money? Are there signs of growth for the future?
- How do you plan to repay your investment?
Of course, every investor is different, so they’ll consider various factors. While experience and financial promise are at the top of the list for most investors, they might also look for uniqueness, business readiness, an effective business model, and more.
Writing a daycare business plan
We’ve discussed licensing and investors. Now, you’re ready to begin the framework of your business plan for daycares and preschools. Here’s what you’ll need to get started:
Business description
Needs assessment, insurance policies, operating policies and procedures, marketing strategy.
Start with the basics: what does your daycare do ? Detailing the service you’re offering will help you create a clear business plan. Next, you might want to write some goals or even a mission statement outlining your purpose and motivation.
Start by looking at general daycare or preschool industry trends, then narrow your scope to the preschools or daycares in your local area. Next, you’ll need to figure out who your target customers are and confirm that there is a need for a business like yours in your community.
Are there a lot of young families in your neighborhood? Are you located somewhere convenient for commuting parents? Does your business offer a specific service that your competitors don’t, like early check-in or extended hours?
Also, check out the competition. Research the existing daycare or preschool options in your community. Look at current preschool or daycare business plan samples. What makes your daycare or preschool unique?
Developing detailed budgets will help you run your small business. You’ll need to compare your current cash flow and expenditures to determine whether you’ll make a profit.
Build a budget for unexpected costs. For example, how many children do you need to serve to be able to pay your bills and stay afloat? Child Care Aware offers some terrific budgeting resources for this process.
Depending on the type and size of your preschool, you’ll need insurance policies of several different types, including liability, property, workers’ compensation, and business insurance. Check the licensing requirements for guidance in building this part of your preschool business plan.
Create a comprehensive handbook for families and staff that includes you center's policies and procedures. For instance, you'll need to develop an emergency plan , daycare sick policy , and other safety protocols according to your local childcare licensing requirements.
Your staff handbook should be a helpful resource your employees can reference and include all your employment policies including work and pay schedules, benefits, and information about professional growth and development. You can also include information on your center's philosophy and curriculum, classroom procedures, and expectations for working with children and families.
Your marketing strategy is the key to attracting customers. Decide what type of advertising you will use in front of potential customers. For example, list your school in local directories and participate in parenting and kid-friendly community events. Run a social media campaign focusing on your target population.
Another big part of childcare business marketing is differentiating yourself from other preschools. These days adopting daycare software is a surefire way to attract families with young children. A tool like brightwheel's center management feature will streamline your center's admission process, record keeping, and reporting, saving you up to 20 hours per month.
You can also use brightwheel for recording and tracking daily events and activities, and sending real-time updates to families throughout the day. It also offers secure, digital check-in/check-out and a paperless billing system. This is a great way to keep your families looped in on daily activities and handle all of your administrative tasks in one place.
Your business is ready!
Writing a business plan can be stressful, but it doesn’t have to be. Once you secure the proper licensing, use the information in this article to guide you through creating a solid daycare business plan that drives investors and financing to your business.
These are just the basics to get you started. For further information, the U.S. Small Business Administration’s website has detailed instructions on creating each necessary part of a successful business plan.
Childcare and Preschool Supply List
A list of everything you need to start an early education program.

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A Step-by-Step Guide to Writing Your Nursery Business Plan
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Running a nursery brings its own unique rewards: watching the children in your care grow and flourish as you offer them the very best early years education.
If you’ve got a passion for teaching and nurturing, along with the right qualifications, spending your days with a group of fun-loving toddlers will sound like a dream come true.
And with childcare costs and availability of suitable places an ongoing issue for working parents, demand will never drop off. So, in theory, it’s the perfect start-up opportunity.
But starting a nursery business isn’t all singing songs and sharing cuddles with small people. Along with the daily – and often dramatic – ups and downs of life as a toddler, you’ll have a complex business model to manage.
Rules and regulations, staff training, strategic planning, cashflow monitoring , customer service challenges, reputation management, ongoing marketing: they’ll all require your attention. And don’t forget, you need to do all this with the endless patience and energy every childcare professional must have each day.
Despite the hard work, working with young children as they start their exciting education journey is enormously satisfying. Get your nursery business plan in order from the start and you’ll have taken the first step towards opening the doors to your very first mini-customers.
Why Do I Need to Write A Business Plan?

In the private day nursery industry, it will inform your decisions as you progress through the set-up process. Do you need external investment? Do you need professional advice about the legalities? Do you know how to find and attract the parents of future classmates?
Without a business plan, you’ll be stumbling in the dark. And potential investors won’t take you seriously. Nail it now and get organised for the road ahead.
How to Start A Nursery Business
Step one: write your nursery business plan . This should follow a set structure, divided into clear, information-packed sections.
Here we outline a suggested template that will help you get your dreams out of your head and onto paper. Follow these steps and you’ll have a helpful, relevant document to keep you on track.
1. Executive Summary
This is a grand title for your introduction. Within it, you can summarise the top-line detail about your business including its name, your objectives and goals. This gives you, and anybody else who reads your plan, an overview of your intentions.
Make sure it’s clear, concise and gets to the point. Highlight what you can bring to the business to make it a success: think of it as an elevator pitch. Leave the nitty-gritty until later.
2. Company Overview
The company overview builds upon the executive summary to give further insight into your plans. This is your opportunity to tell your story about why you’re starting a nursery business . Include your motivation, experience and qualifications to sell yourself and your vision.
If you’ve never run a business before, imagine you’re already a successful entrepreneur and channel the confidence you know that will give you.
You’re seeking to impress and convince potential investors and partners to help them to understand your journey and to trust you.
Include a vision statement to really hammer home what success looks like for you. What do you envisage achieving in the next five years? How will you reach those goals?
When setting your goals, remember to follow the SMART guidelines and make them:

- Specific : e.g. to have 40 clients within six months
- Measurable : e.g. to make a £25,000 profit in year two
- Achievable : e.g. to break even within 12 months
- Relevant : e.g. to gain an outstanding Ofsted rating
- Timely : e.g. to have a team of 20 staff within 18 months
Outline who will own and operate the business, including its legal structure (for instance, have you set up a limited company?) and how many committed staff members you already have on board.
3. Services
This might seem obvious, but you need to outline all the services you’ll be covering. Every childcare provider will have a slightly different offering, so think carefully about:
- Opening hours – how flexible can you be?
- Age provision – specify your lower and upper age limit
- Class sizes and ratios – how many children will be in each room? And how many staff?
- Outings – are your premises close to a park, museum or library?
- Activities – will you be offering services by external providers such as swimming lessons or foreign language sessions?
Remember that if you’re not in a position to offer everything on your wish list straight away, you can highlight your future development plans.
Also consider your USP. What will give your nursery that competitive edge you’ll need to thrive? Maybe your premises are located directly opposite a train station, simplifying pick up and drop off for busy parents who commute? Maybe your outdoor space has a wooded area you can market as a forest school?
Whatever makes you stand out from the childcare crowd, shout about it.
4. market research.

The latest government figures , released in 2016, show that there are around 23,500 day care nurseries in the UK. The industry is worth £4 billion, employs over 188,000 people and provides childcare for 1.2 million children.
Since then, and due mainly to the introduction of the 30 hours free childcare policy, the number of childcare providers registered with Ofsted has fallen. Most of those leaving the market have been childminders facing unsurmountable financial pressures .
Among the private nursery market, 841 providers left the sector in the final quarter of 2017 and 772 joined. And while overall numbers may be falling, the number of spaces is actually rising.
Just as you’re doing now, those 772 people made the entrepreneurial leap: after, of course, writing a comprehensive nursery business plan .
You need to know about this competition: who’s already operating in your area, what services they offer and the demand for them, whether they’re sole traders or part of a larger chain etc. Don’t forget to consider playgroups and home-based childminders in this analysis.
Next, shift your attention to your target market. Naturally, they’re going to be parents, but beyond that they can differ widely. Some of those with two-year-olds will be entitled to more government support than others, others will be relying on childcare vouchers from their employers, some will only need a few mornings a week, others will need a full-time place.
Investigate the demographics of your area such as average wage, population levels and fluctuations, and birth rates. Every nugget of information can inform your plans and improve their accuracy.
Crucially, based on your research, you can start to gauge how much you can charge. Prices vary across the country with an average cost of £122.46 for 25 hours of childcare at a private day nursery. You can then factor this figure into your financial planning.
4. Finances

Before you can put a tick next to “write business plan”, there’s some serious number-crunching to do.
A solid business plan should be brimming with informative tables to guide you and reassure your potential investors that you’ve done your sums and are a safe bet. As a bare minimum, you should include a profit and loss forecast and cashflow forecast for the first three years, and a detailed start-up budget.
For a nursery, start-up costs will include equipment ranging from furniture, toys and books, outdoor play equipment, computers and tablets, first aid kits and marketing materials.
Beyond these, some of which will need to be regularly replaced, your highest ongoing cost will be staff wages which averages at 73% of all outgoings for private day nurseries. Add rent or mortgage payments, training and utilities costs, and your profit will quickly be dented.
Then detail your income stream based on estimated numbers and your projected fee structure. To avoid cashflow challenges, consider incorporating a Direct Debit facility for parents to pay their monthly fees. It’ll mean less hassle for them and more certainty for you: you’ll know exactly how much to expect in your business account and when.
Partnering with a Direct Debit bureau such as FastPay will ensure fees are paid upfront, avoiding the administrative headache of gathering payments by cash, cheque or debit card. Your cashflow and your customer satisfaction levels will thrive.
Finally, do you know where your funding is coming from? Be crystal clear in your nursery business plan about cash you’ve already secured (personal savings, soft loans from family and friends etc.) and whether extra capital is required from a business loan, sponsorship or business partner.
5. Premises
Before you start searching for premises, you need to establish how many children you’d ideally like to cater for. This will impact on the size of the property you need, as well as the number of staff and pricing.
Government regulations mean that you must allocate a minimum square footage per child. Calculate your requirements carefully based on these and also consider future expansion plans. The last thing you want is to be a huge hit with local parents and have capacity issues before you’re ready, and financially solvent, to move or extend.
In terms of location, your choice here should be informed by your market research. Will you be filling a gap or saturating an already struggling market?
Key considerations, beyond demand, include:
- transport connections to make pick up and drop off as convenient as possible
- sufficient car parking and outdoor space
- kitchen and bathroom facilities
- with an existing building, its suitability for conversion
Whether you’re renting or buying, adapting a building or moving into purpose-built premises, carefully consider every cost involved in every option.
6. sales and marketing.

Your marketing plan will form an important section of your business plan. Central to it should be a strategy for advertising your nursery before your planned opening date. From traditional methods such as hanging banners outside the building and leafleting local baby and toddler groups to embracing a full social media campaign, you need to go all out.
Tours of the nursery are also priceless. Parents will want to know exactly where they’re leaving their child and who will be caring for them: viewing your premises and meeting your staff will create trust. Whether you hold an open day or welcome potential clients in on a typical working day, this is your opportunity to showcase your facilities and share your personal approach to childcare.
Impressed parents will then spread the word to friends and family, giving you free exposure that could easily translate into clients.
Once you’re up and running, you’ll need to keep attracting clients as children grow and move on to start primary school. Your reputation will speak volumes here, so use this never-ending marketing job as added motivation to provide exemplary service and standards.
7. Rules and Regulations

Your business plan must address that you fully understand these legalities and are taking the appropriate steps.
In order to look after children under the age of eight for more than two hours a day in England, you must be registered with Ofsted (the Office for Standards in Education). For a nursery, you’ll be signing up to the Early Years Register.
There are two preliminary steps:
- a DBS check to assess your suitability based on any previous criminal convictions
- completion of a health declaration booklet , in which you must list any health problems and medications you’re taking
Next, you’ll need to demonstrate to Ofsted that you’ll comply with all their strict standards. These cover a wide range of factors including:
- staff training and vetting
- child group size
- staff-per-child ratios
- space-per-child ratios
- fire safety
- bathroom facilities
- health and safety
- quality of education
- welfare needs
This necessarily comprehensive registration process takes time so make sure you factor in at least six months for it to be finalised. You won’t be able to open without it.
Once you’re registered and up and running, Ofsted will assess your nursery at least once every three years to make sure it conforms with the national standards.
With the prospect of an Ofsted inspection on the horizon, you’ll have the added motivation to make your new nursery business a success.
Starting a nursery business is a slow but ultimately highly rewarding process. Prepare for a steady start and enjoy the momentum building as your reputation establishes itself.
A few years down the line, you could be revisiting your business plan with an eye towards the future. Expansion, perhaps with a second or third site, will require another impressive document to wow your investors.
For now, focus on getting its first incarnation right and you’ll soon be welcoming small, smiling faces through your doors.
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Plant Nursery Business Plan Template
Written by Dave Lavinsky

Plant Nursery Business Plan
Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their plant nursery businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a plant nursery business plan template step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your plant nursery business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a plant nursery business, or grow your existing plant nursery business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your plant nursery business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Plant Nursery Businesses
With regards to funding, the main sources of funding for a plant nursery business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings is the other most common form of funding for a plant nursery business.
How to Write a Business Plan for a Plant Nursery
If you want to start a plant nursery business or expand your current one, you need a business plan. Below we detail what should be included in each section of your business plan:
Executive Summary
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of plant nursery business you are operating and the status. For example, are you a startup, do you have a plant nursery business that you would like to grow, or are you operating a chain of plant nursery businesses?
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the plant nursery industry. Discuss the type of plant nursery business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
Company Analysis
In your company analysis, you will detail the type of plant nursery business you are operating.
For example, you might operate one of the following types of plant nursery businesses:
- Houseplant Nursery : this type of plant nursery business focuses on providing a selection of popular houseplants for indoor growing.
- Landscaping Nursery: this type of nursery focuses on outdoor plants and supplies for lawn care and landscaping.
- Tree Nursery: this type of nursery specializes in providing a selection of trees for purchase.
In addition to explaining the type of plant nursery business you will operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to question such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, number of products sold etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
Industry Analysis
In your industry analysis, you need to provide an overview of the plant nursery industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the plant nursery industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy, particularly if your research identifies market trends.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section:
- How big is the plant nursery industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your plant nursery business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
Customer Analysis
The customer analysis section must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: homeowners, apartment renters and landscapers.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of plant nursery business you operate. Clearly, apartment renters would respond to different marketing promotions than landscapers, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most plant nursery businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
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Competitive Analysis
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other plant nursery businesses.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes landscapers and local plant swaps. You need to mention such competition as well.
With regards to direct competition, you want to describe the other plant nursery businesses with which you compete. Most likely, your direct competitors will be plant nurseries located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- What types of plants do they grow and sell?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide better quality and selection of plants?
- Will you provide services that your competitors don’t offer?
- Will you provide better customer service?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Marketing Plan
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a plant nursery, your marketing plan should include the following:
Product : In the product section, you should reiterate the type of plant nursery company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to a plant nursery, will you provide custom landscaping services, educational programs or any other services?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place : Place refers to the location of your plant nursery company. Document your location and mention how the location will impact your success. For example, is your plant nursery located in a busy retail district or shopping plaza, or is it visible from a busy highway, etc. Discuss how your location might be the ideal location for your customers.
Promotions : The final part of your plant nursery marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:
- Advertising in local papers and magazines
- Reaching out to local websites
- Social media marketing
- Local radio advertising
Operations Plan
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your plant nursery business, including tending plants, growing or transporting plants, and helping customers.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 100th plant, or when you hope to reach $X in revenue. It could also be when you expect to expand your plant nursery business to a new city.
Management Team
To demonstrate your plant nursery business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally you and/or your team members have direct experience in managing plant nursery businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing plant nurseries or successfully running small businesses.
Financial Plan
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your plant nursery business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a plant nursery business:
- Location build-out including design fees, construction, etc.
- Cost of equipment and supplies
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your nursery location lease, blueprints of your nursery design or an inventory list.
Putting together a business plan for your plant nursery business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the plant nursery industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful plant nursery business.
Plant Nursery Business Plan FAQs
What is the easiest way to complete my plant nursery business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your plan.
What is the Goal of a Business Plan's Executive Summary?
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of plant nursery you are operating and the status; for example, are you a startup, do you have a plant nursery that you would like to grow, or are you operating a chain of plant nurseries?
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Other Helpful Business Plan Articles & Templates

- Business Plans Handbook
- Business Plans - Volume 07
- Nursery Business Plan
BUSINESS PLAN WONDERLAND NURSERY
416 S. Turner Street Spokane, Washington 99204
This plan outlines how this business will provide Spokane with a specialty nursery and garden center that is stylish, respected, and consistent, and which is intelligently staffed with caring and well-informed employees. An unusual feature of this nursery is its café. This plan was provided by Ameriwest Business Consultants, Inc.
EXECUTIVE SUMMARY
Objectives & goals, and strategies for achieving them, business description, status, & outlook, management & ownership.
- THE SERVICE (AN UNFILLED NEED) & UNIQUENESS OF SERVICE
MARKET ANALYSIS
Marketing strategies, financial plans, business description.
The purpose of Wonderland Nursery is to provide Spokane with a nursery and garden center that is stylish, respected, and consistent, and which is intelligently staffed with caring and well-informed employees. The atmosphere is friendly and open. The nursery displays a new attitude. It treats customers like first-class citizens and tries to make them feel like they are at home. On the premises will also be a café to help our customers extend and enhance their visit to our premises. We offer a variety of related items such as pottery, specialty decorations, etc. The facility has a first-rate greenhouse. The services are offered at a competitive price and pricing will be reviewed periodically.
The nursery is normally open Monday, Tuesday, Wednesday, Thursday, Friday, and Saturday, from 9:00 A.M. through 5:00 P.M., and 10:00 A.M. to 4:00 P.M. on Sunday. The café hours are 9:00 A.M. to 5:00 P.M., Monday through Wednesday, 9:00 A.M. through 8:00 P.M. on Thursday through Saturday, and from 10:00 A.M. to 4:00 P.M. on Sunday.
CURRENT POSITION AND FUTURE OUTLOOK
The business is in a restructure mode. It is currently past due on its mortgage payment. Plans call for infusion of new investment in the amount of approximately $275,000 and a new loan of $800,000. Operations are conducted on a 5-acre site, located at 416 S. Turner Street, Spokane, Washington. On the average we serve from 10,000 to 12,000 customers per year. With new funding we plan to increase this amount by at least 15% per year in the future. This is a conservative estimate considering the past year saw a 25% increase in sales. To attain these goals we will use a combination of media advertising, flyers, and word-of mouth. Upon securing the new funding, the future appears very bright. The customers are there, the experience and ability are there, and with a restructure of the organization we are convinced the profit would be there. The café will only get better in its second full year of operation.
MANAGEMENT AND OWNERSHIP
The company is set up as a corporation with Susan Smyth and her husband Robert owning 100% of all outstanding stock. Susan serves as president, chief executive officer, and manager. She provides the leadership to run this company. She has over 5 years of experience as owner and operator of a nursery. Her retail sales background will continue to provide the guiding light for the operation. Susan oversees the entire operation and concentrates on advertising, legal matters, banking, insurance, purchasing, equipment purchases, public relations, and labor. Robert Smyth serves as treasurer and handles all maintenance and development. Helen Brown, office manager, handles sales, display, and backs up Susan in banking, purchasing, and planning. The business employs up to ten additional employees. These employees will be involved in cooking in the café, waiting on tables, and working as laborers. They will be a combination of part-time and full-time. When volume picks up, additional part-time or full-time employees will be hired as the workload requires. Ameriwest Business Consultants, Inc. will provide help in additional areas such as planning and general business advising when necessary and to supplement Susan's overall business knowledge. The services of an accountant, attorney, and a qualified insurance agent have been retained.
UNIQUENESS AND DIFFERENTIATION OF THE SERVICE
Wonderland Nursery is a specialty nursery and provides the ultimate in service and advice to customers. We tend to appeal to upper-end clientele, serious gardeners, and gardening professionals. Nowhere else in Washington does an operation combine the services of a nursery along with those of a café.
The idea of nursery and café is to provide customers with a informal, social setting, and atmosphere that does not exist in this part of the state. In addition we will cater to private parties and special groups in the café throughout the year.
The growth potential is virtually unlimited for the greater Spokane, Washington, area. The population is growing at an accelerated rate. It is rare in today's business world to find a true market void. That is exactly what Wonderland Nursery has done. It is a nursery along with a café for nursery customers and others in the community. Our facility has little true competition in Spokane.
FUNDS REQUIRED AND USAGE
Restructuring expenses will be approximately $1,075,0000. New investors will furnish approximately $275,000, and a new loan will furnish the balance of $800,000 in new funding.
The new funding will be used as follows: A) $1,000,000 to repay existing debt, B) $20,000 for paving, C) $5,000 for irrigation improvements, D) $10,000 in new inventory, E) $40,000 for reserves and miscellaneous expenses. The paving will make the property much more attractive to both nursery and café customers. The irrigation will save labor and cut losses. The inventory will bring in new customers and help even out the cash flow throughout the year.

PROJECTED 5-YEAR INCOME STATEMENT SUMMARY

- The most likely case assumes 11,000 customers the first year after the restructuring. The optimistic case assumes revenues and expenses will increase 15% over the most likely case. The pessimistic case assumes revenues and expenses will decrease 15% below the most likely case above.
- Cost of goods sold for the nursery will equal 55% of sales and 35% for the cafe.
- To provide a high quality service so that customers will perceive great value and give them the opportunity to interact with our professional staff.
- To service an average of 12,000 customers in 1999 and increase that by about 15% over the next four years.
- To repay the entire loan amount by the end of the fifteenth year and to provide the shareholders with an exceptionally stable income.
- Our goal is to become the premier nursery destination in Spokane, Washington, during the next two years.
- Wonderland Nursery plans to closely monitor changing technology to be certain that the company is using the latest and most cost effective equipment and that it keeps up with current trends in the marketplace.
When growth has stabilized we plan to add extra services for customer convenience such as organic produce, greater selection of products, especially seasonal, and continued growth of the food operations. In addition to the above goals we will survey our customers and make changes in our programs and add services to meet their changing ideas in the marketplace.
To obtain the first two sets of goals we will try to maximize sales with an extensive campaign to promote our services. We will utilize the radio stations and newspaper along with brochures, media advertising, pamphlets, use of coupons, referrals, and a variety of other advertising and marketing tools to reach the customer base of Spokane, Washington. We expect to flood the market with advertising until consumers become aware of us and more comfortable with our company. As we grow, word-of-mouth referrals will bring in increasing numbers of customers and we will reduce our reliance on advertising.
The dominant driving force behind our company will be profit and income and to provide the best possible related products and service.
To become the premier nursery in Spokane, Washington, we will offer outstanding quality, good hours, exceptional service, and reasonable pricing. We will listen to our customers and conduct surveys.
We will offer frequent user discounts. In the future we may consider diversification and enter new market areas such as providing organic produce.
According to the Nursery Retailer , lawn and garden sales nationwide are expected to top $83 billion in 1999. Of this total, nearly $1 billion will be in Washington. In 1998, lawn and garden sales showed its first slow-down in growth since 1968. Even so, sales still topped the 1997 levels. Most experts attribute this aberrant downturn to one reason, namely El Nino. This year's growth rates are expected to return to normal levels of around 6% to 9%. With Spokane's exploding growth in population that has occurred during the last decade, local nursery sales should continue to be well in excess of national averages. In fact, when most nurseries experienced a flat growth rate in 1998, Wonderland Nursery experienced a 25% growth in sales.
Wonderland Nursery is a full service nursery and combines entertainment and limited dining at a competitive price. We have a bigger selection of products, more specialized plant selection and offer a much higher level of service than do our competitors. We try to promote an atmosphere that gives people a comfortable place to spend their time and money. Combining a nursery with a café is a relatively new concept for this part of the country. Susan Smyth will continue to operate the business as a corporation. The principal shareholders will be Susan and her husband. New investors will be brought on board and will assume up to a 49% share in ownership. With our new equipment, inventory selections, and property improvements we will also have definite market advantages. Ultimately, we will expand the business to achieve its full potential.
The biggest problem we face is restructuring the operation to give us the time and money needed to fully implement our plans and achieve our goals.
To maintain operations, the business maintains a nursery license, scale license, seed dealers license, health license, occupational use license, and sales tax license.
The future holds the promise for almost unlimited growth and income as the business matures and considers other markets and products. Complementary products such as organic produce, water gardening, newsletter, additional seasonal products, dances, and other functions at the café also can be considered in the future in response to customer surveys indicating their wants and needs. Enhanced food services will be offered in the future as the needs are demonstrated.
Susan Smyth once was a gardener for upper-class clients. She used this experience to develop Wonderland Nursery. The business was successful until the lease was lost on its original location. This precipitated a move to our present location. The move caused us to open grossly undercapitalized. We have managed to survive the past couple of years, but the restructuring we are planning will put us over the top toward achieving our full potential.
Wonderland Nursery will supplement its skills by using outside consultants in areas such as legal work, income tax preparation, insurance, and general business advising.
The business was set up as a corporation primarily for liability reasons and makes it easier to secure investors. To continue operation, as many as thirteen full-and part-time employees will be utilized to help in areas such as bartending, waiting on tables, and for labor. As the business grows, additional part-time or full-time employees may be added to handle the increased workload.
THE SERVICE (AN UNFILLED NEED) & UNIQUENESS OF THE SERVICE
The growth in families in Washington state is the ninth greatest in the country. The past decade has seen this segment of the population grow by more than thirty percent. It is growing five and a half times as fast as the general population.
The few existing nurseries that cater to our clientele are not nearly as knowledgeable or service oriented. They pay little attention to detail and customer satisfaction. Wonderland Nursery and its ownership will embrace the concept of trying to become a focal point for our clientele.
The timing for such a business is perfect. Given the proper kind of financial restructuring, a significant window of opportunity exists for Wonderland Nursery to take advantage of the huge growth of the area. This business will be providing the "Right Service at the Right Time."
It is rare in today's world that a true market void exists. Our service will meet the "unfilled need" described above by providing customers with competitively priced, high service nursery facilities combined with the services of a café on the premises. We are unique to Spokane, and indeed all of Washington.
Customers will be attracted to the nursery because our atmosphere, pricing, and facilities. They will be made to feel welcome and as part of the family.
Some major advantages Wonderland Nursery will have over potential competition and conventional nurseries are:
- Larger and newer facility
- Lower operating expenses than most
- Full service café on site (new concept)
- 6,000 name mailing list
- Wonderland Nursery will sponsor ethnic festivals and holidays
MARKET OVERVIEW, SIZE, AND SEGMENTS
This market segment has been relatively stable over the past five years.
The market areas we will concentrate on are Central and Western Spokane, Washington. These areas have been growing rapidly for the past several years and should continue for the foreseeable future. Once the concept catches on locally, we feel the potential is unlimited. As we grow we will have the financial capacity to carry on an advertising campaign on a regional basis.
The economy is in the midst of a particularly strong growth period. Many new jobs are being added to the local community. Ever increasing numbers of Californians are coming to this location. All of these factors are cause for a much greater interest in nurseries. All of this activity can only help our attempts to restructure this nursery.
Listed below are just some of the reasons that the Spokane, Washington, area is growing and why it is a good time to be running any kind of business that caters to this growth:
- The local economy is booming and virtually busting at the seams.
- Spokane, Washington, has become a magnet for religious organizations. More than 65 nationally based Christian organizations are headquartered here.
- Spokane, Washington, has a new airport and a nearby Free Trade Enterprise Zone that should grow and attract even more new businesses.
- The new Seattle Airport is open and provides an economic boost to the entire state, including Spokane, Washington.
- Gambling in nearby Oregon continues to draw many visitors and some new businesses.
- Every week, we see articles in the newspapers of California residents and companies relocating here.
- The world-renowned Five Star Hotel has completed an extensive remodeling.
- MCI and Quantum Electronics are undergoing large increases in their operations here that should add many hundreds of employees.
- Many experts predict Spokane, Washington, will become the second fastest growing city in the state between now and the year 2007.
- King County is predicted to become the largest county in the state by the year 2003.
- The local economy is now more diversified than it was when troubles occurred in the local economy in the late 1980s and early 1990s.
The estimated population of King County in 1999 is 500,000 people. The number of households is approaching 200,000. Currently, this market is growing at an annual rate of 3-5%. Projections see this trend continuing for the balance of this decade.
From the above figures it can readily be seen that the potential market for our services is huge. We feel with our pricing and value we will become a price and industry leader within two years.
CUSTOMER PROFILE
Our surveys have shown the following mix of patrons for our facilities:
- Majority are women
- Income of typical customers is in the $50,000 and up range
- Large numbers of professional gardeners
- Range of age of clientele is 35-75
- Majority of patrons are in the upper-income brackets
- Majority of our customers come from the 12345, 12346, 12347, 12348, and 12349 Zip code areas
Beyond the local market we could eventually tap into a more regional market. The advantage of our service is that it could appeal to all segments of the community. By expanding the role of the café, we can continue to become an even greater focal point for the local community.
COMPETITION
Our primary competition is the nurseries listed below. On a limited basis there are few competitors such as nurseries, landscapers, and related businesses.
The following table summarizes the local competition:

The marketplace is currently shared by the above outlined 3 major participants. This market is stable and increasing about 5-7% per year.
The driving force behind Wonderland Nursery is Susan Smyth. She has able support from her husband, Robert, and from Helen Brown, office manager, and Nancy White, file manager.
Risk Analysis

Identification of Strengths & Weaknesses

We feel we will have strengths in product features, management, marketing, human resources, quality of service, operations, product mix, reliability, desirability, highly trained sales force, pricing, location, and facilities.
We will have low risk exposure in the areas of technology, inflation/interest rates, regulatory environment, management ability, location, facilities, and suppliers.
We perceive medium risk exposure in the local economy, strategy, and vulnerability to substitutes, finance, and planning. We have retained the services of specialists to help in various areas such as marketing, accounting, legal, and general overall business operation advice.
We have a high degree of risk in this overhead and lack of working capital. With our proposed new funding, we should overcome most of our weaknesses.
PRICING AND VALUE
Our intention is to raise the public's awareness of our company. We plan to review our prices and those of our competitors every three months. We will review direct material costs, direct labor costs, and total overhead expenses. We will continually monitor the cost of providing our service to each customer. We will offer various free or reduced rate programs to get customers acquainted with us.
Numerous package deals will be available to customers. The following examples are various marketing strategies we may try:
- Discounts for larger or repeat purchases
- Special party rates for the café
- We will continue the use of our newsletter to help promote value to our customers
SELLING TACTICS
Our company's marketing strategy will incorporate plans to promote our line of services through several different channels and on different levels of use. We will advertise heavily on the popular local radio stations and in newspapers.
We will try to satisfy the market void in this area for indoor entertainment. We will flood the market with advertising and try to go after our specific targets. We will try to capture their attention, pique their interest, and make them feel that they must have our services.
We will offer continuous promotional rates. The results sell themselves. We will offer discounts to frequent users. The more a customer uses our services the cheaper it will become for them.
We also are a MasterCard and Visa charge card merchant which enables us to more readily serve our customers.
In order to market our facility, we shall consider a variety of promotions including:
- Reserve certain hours for unique groups such as children, senior citizens, service clubs, adults, etc.
- Conduct special theme nights, use ethnic holidays, family night, charity promotion night, game night, contest night, etc.
- Cultivate local churches and women's organizations.
- Promote birthday parties.
- Early bird specials.
ADVERTISING, PROMOTION, AND DISTRIBUTION OF SERVICES
We recognize that the key to success at this time requires extensive promotion. Advertising goals include all of the following:
- Position the company as the premier nursery in Central/Western Spokane, Washington.
- Increase public awareness of Wonderland Nursery and its benefits.
- Increase public awareness of our company and establish a professional image.
- Maximize efficiency by continually monitoring media effectiveness.
- Consider a possible credit coupon in some of the advertisements.
- Develop a brochure or pamphlet to explain our service and company.
- Continue use of a distinctive business card and company letterhead.
- Use a mix of media to saturate the marketplace.
PUBLIC RELATIONS
We will develop a public relations policy that will help increase awareness of our company and product. To achieve these goals we will consider some or all of the following:
- Develop a press release and a company backgrounder as a public relations tool.
- Develop a telephone script to handle customer and advertiser contact.
- Develop a survey to be completed by customers to help determine the following:
- 1. How did they hear about us?
- 2. What influenced them to use our service?
- 3. How well did our service satisfy their needs?
- 4. How efficient was our service?
- 5. Did they have any problems getting through to us?
- 6. Did they shop competitors before selecting us?
- 7. How did they initially perceive our company and product?
- 8. Where are most of our customers located?
- 9. Do they have suggestions for improving our service or our approach to advertising?
- 10. What additional services would they like us to offer?
- 11. Would they recommend us to others?
- Maintain membership in the Chamber of Commerce to keep abreast of developments in the community and market trends.
Data Sheet #1
Fiscal Year in which Projections/Calculations are to start ..............................................................................................1999
Number of Months in which Projections/Calculations are to start..........................................................................................1
The purpose for this analysis is Business Start-Up, Expansion, or Review ........................................................... START-UP
Owner's contribution to business (include both cash and time in dollar equivalency) ........................................$6,000,000.00
Indicate below if the figures are actual, annualized, or projected for each year in the analysis:

INDICATE THE TYPE OF BUSINESS ENTITY YOU HAVE IN THE BOX TO THE RIGHT: C

Data Sheet #2

Number of Customers Expected to Serve the First Year: 12,000
Average Income received from each Customer: $77.75

RE-STRUCTURE EXPENSES

Projected First-Year Monthly Budget 1999

Projected Second-Year Monthly Budget 2000

Five-Year Income Statement

Five-Year Balance Statement

Five-Year Cash Flow Statement

Average Monthly Break-Even Analysis 1999

Average Monthly Break-Even Analysis 2000

Break-Even Table Year 1

Break-Even Table Year 2

Rates of Return

Assumptions:
Income figures are after taxes Dividend Payout = 50% of After Tax Income Reinvestment rate = 7%
IRR = International rate of return MIRR = Modified rate of return ROI = Rate of return on owner's investment ROA = Rate of return on total assets
IRR = the interest rate received for an investment and income that occur at regular periods. MIRR = adds the cost of funds and interest received on reinvestment of cash to the IRR.

Loan Compliance Covenants

Annual Projections Summary

Income Statement Chart

Balance Sheet Chart

Growth Trends

Net Income Growth

Composition of Income - First Year

Breakdown of Expenses - First Year

Selected Key Ratios Chart

Ratio Comparison

RATIO ANALYSIS
Current Ratio is an approximate measure of a firm's ability to meet its current obligations and is calculated as Current Assets divided by Current Liabilities. This ratio shows an upward trend and indicates that if the company meets its goals it will be relatively more stable than the industry in general.
Revenue to Working Capital Ratio is a measure of the margin of protection for current creditors. This ratio is on a downward trend and indicates a good level of safety for creditors.
EBIT to Interest Ratio is a measure of ability to meet annual interest payments. Since this ratio is above industry averages, the company should have no problem servicing its debt and can even service greater amounts of debt.
The Current Maturities Coverage Ratio measures the ability to pay current maturities of long-term debt with cash flow from operations. It is calculated as Net Income Depreciation, Amortization divided by current portion of long-term debt. This ratio shows an upward trend which indicates the company should be better to service its debt than the average company.
The Fixed Assets to Tangible Net Worth Ratio measures the extent to which owner's equity has been invested in the business. Since this ratio is on a downward trend, it provides an even larger "cushion" to creditors in the event of liquidation.
The Debt to Equity Ratio expresses the relationship between capital contributed by creditors and capital contributed by owners. This ratio shows a downward trend which would seem to indicate that if the company meets its goals that it will provide greater long-term financial safety for creditors.
The Earnings before Taxes to Total Assets Ratio expresses the pre-tax return on total assets and measures the effectiveness of management in employing available resources. Since this ratio is above industry averages, the company would be more efficient than the industry in its effective employment of resources.
The Revenue to Total Assets Ratio is a general measure of ability to generate revenue in relation to total assets. This ratio is above industry averages which can indicate that the company is efficient in using available resources to generate revenue as compared to the industry.
The Depreciation, Amortization to Revenue Ratio is a general measure of cost to generate revenue under the matching principal. Since this ratio is consistently below industry averages it would seem to indicate that the company is more efficient generating revenue as compared to the industry.
CONCLUSIONS & SUMMARY
We feel that the type of company and service we are proposing is hitting the market at just the right time. We plan to fully repay the loan by the end of the third year. However, we will schedule repayments over ten years to give us flexibility. By applying our conservative projections, income for the first year is expected to be $21,194 after taxes and debt service. This will rise to $76,822 in the second and $124,363 by the fifth year. The business should be open for business by spring of 1997.
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The Daycare Business Plan Blueprint (Examples + Template)

April 14, 2022
Adam Hoeksema
Starting a daycare business can be a daunting task. There are so many things to think about and plan for. You need to find the perfect location, get the right licenses and permits, hire qualified staff, and, most importantly, create a daycare business plan.
Creating a daycare business plan is one of the most important steps in starting your business. A well-thought-out business plan will help you get funding, attract investors, and operate your business effectively.
The bad news is that there is a lot of advice out there on writing a business plan. With so much information and tons of daycare business plan examples to choose from, it can be overwhelming to know where to start.
The good news is, we've got you covered. In this article, we'll give you a comprehensive guide on how to write a daycare business plan. We will also provide some examples and a free daycare business plan template to get you started.
But First...Is a Daycare a Good Business to Start?
Before we talk about how to create a daycare business plan, let's first answer the question: is starting a daycare a good business to get into?
The answer is a resounding yes! The daycare industry is growing rapidly. It is one of the few businesses that are not only recession-proof but also thrives in uncertain economic times.
According to the National Association of Child Care Resource & Referral Agencies (NACCRRA), the demand for child care services has increased by 26% over the last decade. This demand is only expected to grow in the coming years.
When it comes to profitability, the daycare industry is very attractive. According to IBISWorld , the average profit margin for a daycare business is around 15%. That's higher than the average for most other industries!
If you're thinking about starting a daycare business, know that you are getting into a very profitable and in-demand industry. Now let's talk about how to write a daycare business plan that will help you start and grow your business successfully.
How to Create a Daycare Business Plan
A daycare business plan is as simple as a word document with the following sections:
- Business Description
- Market Analysis
Business Model
- Location and Facility
- Marketing Plan
- Financial Plan
Executive Summary
This article will provide context of what to include in each section of your daycare business plan. As you work on writing your business plan, you will want to grab our daycare financial projection template as well in order to complete the financial plan section.
Your daycare business plan should be an elevator pitch in itself. It should be attractive to potential partners and investors. Basically, it should give them a clear idea of your business, where it is located, what services you offer, who your target market is, and how you plan to make money.
Creating a daycare business plan doesn't have to be complicated. In fact, the cheapest and easiest approach is to simply start with a blank word document and work through each of the above sections, it can be pretty easy. Here is a step-by-step guide on how to create a daycare business plan:
Create a Compelling Business Description
Your daycare business's unique selling point (USP) should be the first thing you include in your business plan. What is it that makes your daycare center different from all the others?
This description should be the foundation of your marketing efforts as well.
There are a few questions you should answer in your company description. They include:
What's your Curriculum Based On?
Potential investors, partners, and even customers will be interested in knowing what your curriculum is based on. This will help them understand the environment children will be in a while under your care.
When describing your curriculum, make sure to include:
- What age ranges do you cater for?
- The type of care you offer (full-time, part-time, drop-in)
- Your educational philosophy
- The activities and programs you offer
For example, if your daycare is unique by offering a Montessori curriculum, you will want to highlight that. In fact, you can learn more about how to start a Montessori program here .
How Big is Your Facility?
The size of your facility will say a lot about the type of operation you're running. Are you a small, home-based daycare or a large center with multiple classrooms?
This section of your business plan may include:
- A floor plan of your facility
- The capacity of your facility
- The number of employees you have
- Type of equipment and furniture you have
Who Is Your Target Market?
You can't market to everyone, so you must identify your target market. This will help you focus your marketing efforts and ensure that you're reaching the right people.
Below is a daycare business plan example that shows how your business description should be:
“ABC Daycare is a small, home-based daycare located in San Francisco, CA. We cater to children aged 0-12 years old and offer full-time, part-time, and drop-in care.
Our curriculum is based on the Reggio Emilia approach, emphasizing hands-on learning and collaboration. Activities and programs include arts and crafts, music, and outdoor play.
Our facility can accommodate up to 12 children at a time. We have a staff of four employees who are all CPR and First Aid certified.
Our target market is working parents in the city who need quality child care but can't afford the rates of larger daycare centers. We've created an affordable subscription-based pricing model for our target market to fulfill the demand. We generate revenue through monthly subscriptions and have low operating costs due to our small size.
Our suppliers are local businesses that provide us with food, toys, and other supplies.”
Do a Thorough Market Analysis
After writing a compelling description of your business, you need to do a thorough marketing analysis. This analysis will help you determine your target market, what type of advertising and promotion will work best, and how to price your services.
You should also research the competition and see what they are doing right and wrong. This information will be invaluable as you create your daycare business plan.
Keep these things in mind when doing a market analysis:
The Size of Your Market
This is determined by the number of potential customers in your area who need or want your services.
For example, if you live in a small town with only a few thousand people, there may not be enough demand to support a large daycare facility.
On the other hand, if you live in a city with hundreds of thousands of people, there may be room for multiple daycare facilities.
Your target market is the segment of the population that is most likely to use your services. This includes factors like age, income, education, and location.
After you've identified your target market, you need to show how you plan on fulfilling the demand. This is where your business model comes in.
Your business model is a detailed description of how your daycare will operate daily. It should include:
- How do you plan on acquiring customers?
- What are your pricing strategies?
- How will you generate revenue?
- What are your operating costs?
- Who are your suppliers?
Your business model should be detailed and easy to understand. It should also be realistic and achievable.
Here is a daycare business plan example of a business model for a small daycare center:
“The daycare will be open Monday through Friday from six in the morning to six at night. We will offer care for children ages six weeks to twelve years old.
Our rates will be $50 per week for one child and $40 per week for each additional child from the same family. We will offer a discount of $20 per week for families who enroll their children for an entire year.
We will generate revenue by charging weekly rates for our services. Our operating costs will include rent, utilities, supplies, and salaries for our employees. Also, we will acquire customers through online advertising and word-of-mouth.”
As you can see, a business model is a detailed description of how your business will operate. It's essential to have one in place before promoting and selling your services.
One thing you should not forget to include in your daycare business plan is the location of your business and your rental agreement. If you are renting a space, including the terms of your agreement and how long you have the space. If you are purchasing a property, include information on the property, such as square footage and any special features that will help your business stand out.
This daycare business plan example shows you how to include this vital information:
“The daycare will be located at 123 Main Street in a commercial space currently leased by the owner. The lease agreement is for three years with an option to renew for an additional three years. The monthly rent is $2000, and the security deposit is $3000.
The daycare will have exclusive use of the main floor, including a large open play area, a small kitchen, two bathrooms, and four classrooms. The daycare will also have access to the outdoor playground.
80% of our space will be used for childcare, with the other 20% used for our administrative offices and staff lounge.
We have chosen this location because it is close to several residential neighborhoods and has easy access to public transportation. The space is also large enough to accommodate our future growth.”
There are many daycare business plan templates you can use to help you get started. This is a basic outline of what should be included.
Daycare Marketing Plan
Most daycare business plan templates will include a section for your marketing plan. Most people overlook the marketing aspect of their business, but it is one of the most important pieces of your puzzle.
In your business plan, you need to outline your target market, your marketing strategies, and how you plan on executing those strategies.
You also need to set aside a budget for your marketing efforts. Many people make the mistake of thinking that they don't need to spend money on marketing, but that couldn't be further from the truth.
The following daycare business plan example shows you how you should describe your marketing efforts:
"Our target market is working for families with children between six weeks and five years old. We will reach our target market through online and offline marketing efforts.
Some of the offline marketing strategies we will use include print advertising, flyers, and word-of-mouth referrals. We will use a mix of SEO, content marketing, and social media for online marketing.
We have set aside a budget of $500 per month for our marketing efforts."
As you can see from the example above, your marketing plan should be clear, concise, and to the point. Don't forget to include a budget!
Daycare Financial Plan
Your business plan should include a financial plan section. This is where you'll lay out how much money you need to start or grow your business. Be specific and include dollar amounts. If you're seeking a loan, including information on how much you're requesting and how you'll use the funds.
You should also include a detailed budget in your business plan. Your budget should include all of your projected income and expenses for at least the first year of operation. Creating a budget will help you get a clear picture of what it will cost to start and operate your business.
This section should include projected costs for:
- Rent or mortgage payments
- Advertising and marketing
- Operating expenses such as utilities, supplies, and more.
Startup costs are another vital item to include in your business plan. This is the money you need to purchase equipment, furniture, or any other items to get your business up and running.
If you plan to secure a loan, your lender will want to see a detailed business plan with information on how you plan to use the loan funds. Ensure you include this information in your business plan to increase your chances of securing funding.
If you're seeking funding from investors, you'll need to include information on how they will be compensated. This is typically done through equity, a percentage ownership stake in your business.
For example, if you seek $100,000 in funding and offer a 20% equity stake, the investor will own 20% of your business.
Make sure you use a daycare business plan template that includes a section on funding to ensure you include all the necessary information. If you’re planning to get a loan or seek investment, you’re going to need full financial projections. Our daycare financial model will provide up to 5 years of projected income statements, cash flow and balance sheet forecasts.
Next I want to answer some key financial questions for you as you consider how to forecast your daycare financials. I am going to hit on:
- Daycare Startup Costs
- Daycare Revenue
- Daycare Facility Operating Expenses
- Daycare Profitability
Let’s dive into some key questions.
How much does it cost to start a daycare?
It costs between $10,000 and $50,000 to start an in-home daycare business according to Bizfluent .
It costs between $59,000 and $3 million dollars to start a daycare facility according to Bizfluent .
So obviously this is a huge range in startup costs. The main thing that will determine your startup costs is your daycare facility. Depending on how large your daycare is, whether you are buying, building, or leasing the space, and how much renovation needs to be done, your startup costs can vary drastically.
Some tips to help you estimate a cost of a daycare facility:
- A daycare facility should have 35 square feet of open floor space indoors per child.
- So if you wanted a facility that could care for 100 children you would need 3,500 square feet of indoor space for children, plus additional space for offices, kitchen, bathrooms, etc. Let’s assume that you would need at least 5,000 square feet of space for a daycare facility that served 100 children.
- A daycare center would cost at least $295 per square foot to construct in the U.S. based on data from Levelset .
- Constructing a new 5,000 square foot daycare center would likely cost at least $1,475,000 based on $295 per square foot.
- Now you might not be constructing new, rather you might rent an existing facility which could require renovations. You will need to get a specific quote for the specific renovations that you need for your space.

Download the Daycare 5 year financial projection template
How much revenue can a daycare business make.
A daycare facility can generate $17,680 in revenue per year per child according to Zippia .
A daycare business with 100 children can generate over $1.75 million per year in annual revenue based on our average revenue per child of $17,680.
How much does daycare cost?
The average cost of daycare is $17,680 per year, per child in the U.S. according to Zippia .
This means that the average monthly cost of daycare in the U.S. is roughly $1,475.
What is the typical child to staff ratio for a daycare?
The typical child to staff ratios for a daycare are:
- 1 adult staff for every 4 infants (age 0 to 12 months)
- 1 adult staff for every 6 toddlers (age 1 to 3 years)
- 1 adult staff for every 10 pre schoolers (age 3 to 5 years)
- 1 adult staff for every 12 school aged children (5+ years old)
Source - Childcare.gov
These ratios will help you estimate how many staff members you will need. Our financial projection template makes this easy. Just enter in your ratios and the number of children you expect to have in each age group and the model will automatically calculate the number of staff required to maintain your ratios. See the input daycare staffing table below:

What are the typical operating costs for a daycare?
Your largest operating expense for a daycare facility is likely to be your rent.
It should cost between $20 and $30 per square foot to rent a daycare center space based on available spaces on Loopnet .
Other operating costs for a daycare center include:
You can see how you can enter in your operating costs into our financial model below:

How much profit can a daycare make?
The average daycare profit margin is 6.5% according to Daycare Business Boss .
Once you complete your projections you will want to take a look at our At a Glance tab to make sure that your projected profit margins aren’t way out of line with the industry norms. You can find projected profit margins for your daycare below:

This is an important aspect that you may not find in most daycare business plan templates, but it's still essential. An appendix includes any additional information to help you understand your business plan. This might include things like your:
- Business licenses
- Insurance policy
- Lease agreement
- Sample contracts
- Staff bios
This section adds credibility to your daycare business plan and shows that you've done your homework. Including all of the necessary details in your appendix will give investors peace of mind and show that you're serious about starting a daycare center.
An executive summary is a brief overview of your business plan and is often considered the most important section. It should be two pages long, with a clear description of your business, your goals, and why you will achieve them.
There are several key elements to include in your executive summary:
- Business Name: This is the name you have chosen for your business.
- Location: Include the city, state, and country where your business will be located.
- Business description: Describe what type of business you will be operating.
- Target market : This is the group of people you will be targeting as customers.
- Competition: Who are your competitors, and how will you compete with them?
- Product or service : What product or service will you be offering?
- Sales and marketing: How will you generate sales?
- Financials: Include a five-year income statement, balance sheet, and cash flow statement.
- Management team: Introduce your management team and their experience.
- Exit strategy : This is the plan for how you will eventually sell or otherwise exit the business in case you decide to retire or move on to other projects.
The executive summary is the most crucial section of your business plan because it gives investors and lenders a quick overview of your company and its prospects. Be sure to include all of the key elements listed above, and keep it under two pages in length.
What Are The Benefits of Creating a Daycare Business Plan?
Research shows that a business plan helps business owners make better decisions, turn abstract goals into tangible objectives, and track progress over time. But what does this mean for those who want to open a daycare?
Creating a business plan forces you to think through every step of starting your company. It's a valuable exercise that can save you time and money in the long run. Even if you don't end up following your business plan to a tee, the process of writing it will help you better understand your business and what needs to be done to make it successful.
There are many benefits to creating a daycare business plan, including:
Gives You a Roadmap to Follow
As with any journey, it's always helpful to have a map. A business plan is that map for your daycare business. It will give you a clear idea of where you want to go and how you can get there.
Helps You Secure Funding
A business plan is essential if you're looking for investors or loans. It will show potential lenders and investors that you've put thought into your business and have a solid strategy for making it successful.
Ensures Your Daycare Business is Feasible
When you're starting a business, it's easy to get caught up in the excitement and overlook potential problems. A business plan forces you to take a step back and assess whether your business is truly viable. It also helps you identify any areas where additional research is needed.
Final Thoughts
A daycare business plan is a valuable tool to help you make your business successful.
It is worth noting that your business plan is not a one-time exercise but should be updated regularly as your business grows and changes. This document is meant to be a living document that evolves as your business does.
If you're unsure where to start, there are plenty of resources available to help you, including daycare business plan examples online, books, and daycare business plan templates.
You can also use our daycare projection template to get your financial plan ironed out and ready for your business plan.
The most important thing is just to get started. The sooner you create your business plan, the better prepared you will be for success.
You can get the Daycare Facility financial projection template here!
The template is simple to use and will save you loads of time while still producing professional looking daycare projections. ProjectionHub has helped more than 50,000 businesses create financial projections so you can be confident that you can do it too.
The daycare business projection template includes:
5 Year Daycare Facility Pro Forma Financial Statements
CPA Developed & Completely Customizable
Free Support & Projections Review
Compatible with Google Sheets
Free expert review of your completed projections
The template is easy to use and you do not need to be an excel wizard to fill it out. Editable cells are highlighted in blue, a video guide is included, and our team is available to answer any questions you have.
You can see the complete walkthrough and demonstration of the daycare business forecast template here:
Get the template today for just $79

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Photo by Pixabay
About the Author
Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 40,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.
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IMAGES
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