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Child Care Center - Business Plan

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BUSINESS PLAN Child Care Centre 􀀐 Prepared by: Kausar Fatima Prince Amir Abbas Yasir Afzal Rajput
Page 1 of 26 Report Topic BUSINESS PLAN: Child Care Centre Submitted by: Kauser Fatima Prince Amir Abbas Yasir Afzal Rajput Submitted to: Sir M. Arshi Wasique Course: Management Information System Specialty: MBA Marketing & Project Management Institute: Preston University, Main Campus, Banglore Town, Karachi Submission Date 18th June, 2017
Page 2 of 26 Table of Contents ACKNOWLEDGEMENT ............................................................................................................................4 Executive Summary................................................................................................................................5 BUSINESS PLAN.......................................................................................................................................6 Founders.................................................................................................................................................7 Financials:...............................................................................................................................................8 Projected Profit and Loss:...............................................................................................................8 Mission: ..................................................................................................................................................9 Objectives:..............................................................................................................................................9 Key Success Factors..............................................................................................................................10 BUSINESS PLAN.....................................................................................................................................11 Start-Up Summary: ...........................................................................................................................11 Start-up Requirements......................................................................................................................11 Start-up Requirements.....................................................................................................................12 LAYOUT DESIGN OF DAY CARE.............................................................................................................14 Services..........................................................................................................................................15 Child Services ....................................................................................................................................15 Other Services...................................................................................................................................15 Vendors:................................................................................................................................................16 Public Relations:...................................................................................................................................17 Industry Analysis:.................................................................................................................................18 Brief History of Day Care...................................................................................................................18 Karachi: The Perfect Launch Market................................................................................................19 Child Development ...........................................................................................................................19 Marketing Strategy ...........................................................................................................................21 Pricing Strategy.................................................................................................................................21 Promotion and Advertising Strategy.................................................................................................21 Online Advertising.........................................................................................................................21 Management and Staffing: ..................................................................................................................22 SWOT Analysis......................................................................................................................................24 Key Competitive Strengths............................................................................................................24 Key Competitive Weaknesses.......................................................................................................24 Opportunities....................................................................................................................................24
Page 3 of 26 Threats ..............................................................................................................................................25 Strategy and Implementation Summary...........................................................................................25 Strategic Assumptions: .................................................................................................................25 Sales Strategy: ......................................................................................................................................25 THANK YOU...................................................................................................................................26
Page 4 of 26 ACKNOWLEDGEMENT We would like to thank Almighty Allah for his countless blessings bestowed upon us. This report is dedicated to our Parents and Teachers, for their continued support and guidance throughout our entire life, for shaping us as true professionals. A big thanks to all those who have generously contributed their knowledge to this report, our teacher Mr. Arshi Wasique, our colleagues and friends at various educational organizations. Without their understanding and support, completion of this report would not have been possible. We hope readers will find this report useful and the subject matter adds to their knowledge and understanding of a Day Care Business.
Page 5 of 26 Executive Summary Child Care Centre is a new Day Care Center in Karachi, located at Clifton and Gulistan-e-Jauhar. It is a Limited Liability Corporation, managed by its owners, who has no previous experience of managing a successful Day Care Business, but they are quite passionate in establishing a profitable Day Care Business. Their knowledge of business will make the transition to owning and running a Day Care a natural step. In Karachi, our potential clientele consists of individual working parents and corporate offices (roughly 1,000 toddlers per year). We expect to easily generate business to existing corporate offices, which will immediately recognize the quality of our services. Marketing to the large local population in Clifton, DHA, Gulistan-e-Jauhar and Gulshan areas to capture new business. Attracting new customers requires a highly-visible location, association with the quaint charm of our town, and effective promotional relationship with other reputable schools and businesses. We have a small number of direct competitors in both Gulistan-e-Jauhar and Clifton areas. A very few can compete with our approach. Karachi’s growing working class works in our favor, as our middle-upper class customer base seeks out a safe and conducive learning environment for their child with value for money in a convenient location.
Page 6 of 26 BUSINESS PLAN Child Care Centre Business Plan explains that each day, hundreds of toddlers attend day care facilities across the city of Karachi. People who would not have dreamed of sending their young ones are gladly paying good amount of money to have their child spend 4 to 8 hours in a conducive learning environment to be able to join a reputable school. Our Child Care is determined to become a renowned quality institution for young minds, at an affordable price. With the growing demand for high-quality service, standard safety measures, quality medical staff, pick and drop services, Child Cam View Option, Child Care Centre will capitalize on its proximity to build a core group of customers at individual and corporate levels. Figure 1 - Map of Karachi showing Day Care Centers The child education business is growing at a healthy pace. During the past 10 years with a sharp increase in demand for Kindergarten and Preprimary Schools, parents are considered to develop key habits through daily engagement of the young brains. With increased traffic and office stress, parents seldom get time for such positive activities on a daily basis. A greater number of working housewives demand quality educational, medical and
Page 7 of 26 parental care for their loved ones, while being at the liberty to view the child with a single click of a button on their personal cell phones. Child Care Centre provides, regular feedback on a daily basis to parents through both email and SMS services, such that all activities of child are reported and the parents don’t feel left out. Furthermore, to assist the parents our pick and drop service can be availed at convenient rates to ease the burden on the parents. Child Care Centre meets the need by offering high-quality affordable service. Furthermore, our high-profile location in Clifton and Gulistan-e-Jauher Karachi provides a mixed customer base that will maintain high levels of business round the year. The same business can be up scaled in future to create a Kindergarten Section. We also tend to offer summer camps and evening classes to children between ages 3 to 5 years. Founders Child Care Centre has two founder who also direct the business at two different locations in Karachi,  Ms. Kauser Fatima Manager, Gulistan-e-Jauher Campus, Karachi  Mr. Yasir Afzal Rajput Manager, Clifton Campus, Karachi
Page 8 of 26 Financials: The company anticipates rapid acceptance of the concept in selected areas, with revenues of 600,000+ in the first fiscal year.Net profit is projected to be approximately 100,000 in year one. Careful estimations suggest a steady increase in Annual revenue over the next three years as per the graphical presentation below. Figure 2 - Financial Forecasts 2016-2018 Projected Profit and Loss: We project high net profits starting in the first year. Our growth rate is based upon industry averages, factoring in the local conditions. We expect growth of 15% annually for the first three years. First fiscal year gross revenues are expected to exceed 600,000 and after-tax net profits of approximately 99, 000—increasing to more than 200, 000 by the third fiscal year-end. Our margins are very good. This is due in large part to the low direct costs as well as the low operating costs in general for Child Day Cares. Higher staff salaries, owner/operator salaries and marketing costs. Rental saving on account of owned property.
Page 9 of 26 Mission: “To become the market leader in Child Care Business” We understand the level of trust placed in us when a child is enrolled in “Child Care Centre”, and we are committed to providing the very best of care and early education possible this child. Objectives:  Make Child Care Centre the number one destination for all toddlers.  Sales of PKR600,000+ the first fiscal year, PKR800,000+ the second fiscal year and PKR1 Million the third fiscal year  Achieve a 15% net profit margin within the first year and 30% by FY3  Achieve a total net profit of 100,000+ in FY1 and 200,000+ by FY3  Create a solid concept in the industry and track performance in order to begin expanding to other markets within two years.  Turn in profits from the first month of operations.  To operate a successful Child Centers in Clifton and Gulistan-e-Jauhar, employing 8 to 10 employees the first year.  To obtain a minimum of 100 regular customers in Clifton / DHA market, in the first year of operation.
Page 10 of 26 Key Success Factors  Service Quality. Providing exemplary services at affordable prices – will create customer retention easy. Each customer child shall be treated as would an honored guest in our homes.  Enough working capital to survive the first year as we build a customer base.  Highly trained and friendly staff.  State of the art class rooms, on-site child health and nutrition specialist.  A relaxing, upscale interior design.  Excellent home cooked food is served to our children. Water is purchased from Nestle “Pure Life” ensuring healthy customers.  Prime site selection with an upscale affluent population, ample parking space, transport facility, a dynamic student population and a concentration of local businesses.  Ongoing, aggressive marketing.  Highly trained and friendly staff using best Management Techniques.  Employee on the job training to ensure the best child care techniques.  Fire Supression and smoke ventilation systems with regular Fire Drills.  State of the art security for all campuses, armed escort for transport services.  Multiple fee payment options, credit card, cash, online banking / bank transfers etc.
Page 11 of 26 BUSINESS PLAN Start-Up Summary: Equipment and Inventory will make up 100% of start-up requirements. The owner is contributing PKR 2.7 million of investment to the business. Child Care Center is privileged to have its owned premises for conducting its business in Clifton and Gulistan-e-Jauhar. Each sites consist of 4500 square feet of dedicated space to support minimum of 150 young children, these centers are equipped with the latest User Accessible Online CCTV Cameras, Multimedia Systems, Toys and Artistic Material to engage the young brains in producing fresh artistic ideas on paper, canvas, rubber dough and stencils. Start-up Requirements The Start-up requirements are listed below; Long Term Assets: PKR 2,120,000/- Amount in Rs. Short-Term Assets: Rs. 13, 000/- Amount in Rs. Tables, Chairs, Furnishings 10,000 Lighting Fixtures 3,000 Suzuki Van (Bolan) 750,000 Toys and Artistic Materials 1,000,000 Medical Supplies & Instruments 45,000 Computer Equipment 175,000 CCTV Cameras, NVR, Cabling and ancillary 150,000
Page 12 of 26 Start-up Requirements Start-up Expenses Amount in Rs. CONSTRUCTION 0 LEGAL 0 Accounting Software 12,000 Legal 1,500 Insurance 150,000 Opening marketing/advertising 6,000 Graphic design for signage, menu boards 4,000 Outside Signage 25,000 Visiting Cards, Brochures 5,500 OFFICE 0 Office equipment 600 Computer, scanner, printer 2,000 Telephones/Fax/DSL 1,500 Stationery etc. 2,000 Gift item displays (3) 1500 Music system 800 Food display case 3,000 Storage room shelving 2,000 Total Start-up Expenses 217,400 Start-up Assets Cash Required 150,000
Page 13 of 26 Start-up Inventory 25,000 Other Current Assets 150,000 Long-term Assets 2,133,000 Total Assets 2,458,000 Start-up Funding Amount in Rs. Start-up Expenses to Fund 217,400 Start-up Assets to Fund 458,000 Total Funding Required 675,400 Liabilities and Capital Liabilities Current Borrowing 0 Long-term Liabilities 0 Accounts Payable (Outstanding Bills) 0 Other Current Liabilities (interest-free) 0 Total Liabilities 0 Capital 2,700,000 Planned Investment Investors 2,000,000 Other Investments 700,000 Additional Investment Requirement 0 Total Planned Investment 2,700,000
Page 14 of 26 Profit at Start-up (242,000) LAYOUT DESIGN OF DAY CARE The above facility layout can accommodate approximately around 100 children which is a quite sufficient space to cater for the next three to five years.
Page 15 of 26 Services We provide state of the art Day Care services to cater to your child needs. Specialized staff helps your child to improve the learning curve as the little hands grow up. Child Services  Pick and Drop Services  CCTV Access to your child  Medical Checkups  SMS Alerts Other Services  Kindergarten Section  Half Day Packages  Corporate Section  Full day package
Page 16 of 26 Vendors:  Toys and Stationary materials are procured from various local vendors.  Drinking water is purchased on contract from Nestle Pakistan.  Air Conditioners for our premises are from Digital World Pakistan (DWP).  LED’s, Computers, Printers and other appliances are provided by DWP.  Suzuki Bolan shall be purchased from Suzuki Riaz Motors.  Gift items are from various vendors.  Lunch is prepared by our own chef’s where basic materials are procured from standard local grocery stores.  Office Furniture shall be purchased from PECHS Furniture Market.
Page 17 of 26 Public Relations: A strong public relations/publicity program uses as its primary “hook” these three main points: 1. Our unique service quality 2. No commitment on quality The goal of the PR/publicity is to achieve local market awareness and establish the brand on a wider scale to set the stage for future expansion. Local market awareness is vital because more than 50% of sales will come from people living within a 5-mile radius of each of the campus . National awareness will help drive the expansion by generating opportunities created by the media buzz and familiarizing people with our brand name. It will help set the stage for future brand identification. Local Media:  Newspaper  Magazine  Posters  TV add  Radio Regional/National Print Media:  Business week  Newsweek  express News  Entrepreneur National Broadcast Media:  8 radio stations nationwide Direct Mail:  Ongoing direct mail generated from our website data  Visa or MasterCard local direct mail program
Page 18 of 26 Industry Analysis: Brief History of Day Care Day care appeared in France about 1840, and the Société des Crèches was recognized by the French government in 1869. Originating in Europe in the late 18th and early 19th century, day cares were established in the United States by private charities in the 1850s, such as the Charity Organization Society founded by Ansley Wilcox. The Fitch Creche in Buffalo, New York was known as the first day center for working mothers in the United States. Another at that time was the New York Day Nursery in 1854. The vast majority of childcare is still performed by the parents, in-house nanny or through informal arrangements with relatives, neighbors or friends. For example, in Canada, among two parent families with at least one working parent, 62% of parents handle the childcare themselves, 32% have other in- home care (nannies, relatives, neighbor’s or friends) and only 6.5% use a formal day care center. However, for-profit day care corporations often exist where the market is sufficiently large or there are government subsidies. For instance, in North America, KinderCare Learning Centers, one of the largest of such companies, has approximately 1,600 centers located in 39 states and the District of Columbia. Bright Horizons Family Solutions another of the largest has over 600 daycare centers. Similarly the Australian government's childcare subsidy has allowed the creation of a large private-sector industry in that country.[6] Another factor favoring large corporate daycares is the existence of childcare facilities in the workplace. Large corporations will not handle this employee benefit directly themselves and will seek out large corporate providers to manage their corporate daycares. Smaller, for-profit daycares operate out of a single location. In general, the geographic limitations and the diversity in type of daycare providers make child daycare a highly fragmented industry. The largest providers own only a very small share of the market. This leads to frustration for parents who are attempting to find quality child daycare, with 87% of them describing the traditional search for child daycare as "difficult and frustrating".
Page 19 of 26 Karachi: The Perfect Launch Market By launching Day Care in Karachi, we maximize our potential for success due to several factors:  The highly affluent local population.  Large number of working women / Single Parents.  Excessive demand for quality education which tends to increase competition for pre-primary and Kindergarten education for young children.  Excellent auto and pedestrian traffic at our locations  Low media costs  Prime site location Child Care Center is located at what is arguably the best locations for a day care in Karachi, Clifton and Jauhar—in the heart of the core residential areas and business district, hence attracting maximum customer base in a very short span of time. Child Care Center has all the ingredients necessary for immediate success. Child Development Independent studies suggest that good daycare for non-infants is not harmful. In some cases, good daycare can provide different experiences than parental care does, especially when children reach two and are ready to interact with other children. Bad daycare puts the child at physical, emotional and attachment risk. Higher quality care was associated with better outcomes. Children in higher quality childcare had somewhat better language and cognitive development during the first 4½ years of life than those in lower quality care. They were also somewhat more cooperative than those who experienced lower quality care during the first 3 years of life. The National Institute of Health released a study in March, 2007 after following a group of children through early childhood to the 6th grade. The study found that the children who received a higher quality of childcare scored higher on 5th grade vocabulary tests than the children who had attended childcare of a
Page 20 of 26 lower quality. The study also reported that teachers found children from childcare to be "disobedient", fight more frequently, and more argumentative. The study reported the increases in both aggression and vocabulary were small. "The researchers emphasized that the children’s behavior was within the normal range and were not considered clinically disordered." As a matter of social policy, consistent, good daycare, may ensure adequate early childhood education for children of less skilled parents. From a parental perspective, good daycare can complement good parenting. A 2001 report showed that children in high-quality care scored higher on tests of language, memory and other skills than did children of stay-at-home mothers or children in lower-quality day care. A study appearing in Child Development in July/August 2003 found that the amount of time spent in daycare before four-and-a-half tended to correspond with the child's tendency to be less likely to get along with others, to be disobedient, and to be aggressive, although still within the normal range.
Page 21 of 26 Marketing Strategy Other Day Cares rely almost entirely on word-of-mouth marketing to generate business. We will engage in an ongoing aggressive marketing program that will help us establish profitability quickly and set the stage for continual growth. Our strategy will be to position the "Quality” of Day Care business, offering a high-quality service at affordable prices to individual and corporate offices, where young brain can learn and develop in a superior environment under trained and qualified staff. Pricing Strategy Child Care Center primarily utilizes competition based pricing, because they believe that the most valuable customer is not influenced by discount programs, instead they focus on the end results, which require specialized care from our workforce at all levels of this service. Promotion and Advertising Strategy Online Advertising Child Care Centre will advertise regularly on popular social media sites, such as Facebook and YouTube. Compared to traditional print advertising, this is a cost-effective tactic that will allow them to reach prospects in a highly-targeted way (e.g., based on criteria such as age, gender, geography, etc.). Web Site – Child Care Center has developed a simple Web site, which can be viewed at http://childcarecentr.weebly.com/ the website shall provide basic information about the services, add-ons, admission and monthly fees and links to their presence on the aforementioned social media channels. The website shall be replaced by an owned domain name in initial 12 months of operations. Radio Advertising - During the first six months of operation radio presence shall be kept at the top three channels to aware the local customer of our services.
Page 22 of 26 Management and Staffing: Organizational Structure: Our organizational structure will be a simple pyramid style with the owners putting in as much work as the employees. Management Team: Yasir and Fatima will share management and supervisory responsibilities equally at their respective centers. As things move on, Junior Managers can be hired in the 2nd year of service and increase in number of Lady Doctors. Staffing: We will hire two inter level students and one lady doctor, these will be recruited from the local Colleges, trained for their respective roles in each center YEAR 1 YEAR 2 YEAR 3 Manager 34,000 35,000 35,000 Junior Manager 0 30,000 30,000 Employee #1 9,600 9,600 9,600 Employee #2 9,600 9,600 9,600 Employee #3 9,600 9,600 9,600 Female Janitor 9,600 9,600 9,600
Page 23 of 26 Female Janitor 9,600 9,600 9,600 Lady Doctor (s) 8,000 15,000 15,000 TOTAL PEOPLE 7 8 10
Page 24 of 26 SWOT Analysis The SWOT analysis examines the strengths and weaknesses that need to be addressed. Further, this section examines the opportunities presented as well as potential threats. Key Competitive Strengths  We are the only full-scale two campuses in Clifton and Gulistan e Jauhar.  We have arranged competitive agreement with local banking companies and high mark brands around Karachi.  We are the only day care offering the CCTV footage of the child during the day such that parents can monitor the activity with ease of their offices.  Our food and eatables are of high quality, hence ruling out any unhealthy activities, all our campuses are smoke free zones.  We are committed to providing only high-quality services, improving and innovating as we move forward to serve. Key Competitive Weaknesses Our primary weakness is that we are a new business competing against established ones, for customers who may not know how great our services are. To significantly build sales, we must not just find new customers - we must take customers away from existing day cares. We can accomplish this only by offering a superior services and a greater marketing effort. Opportunities • The Area demographics support the need for a unique child day care. • Additional opportunities to target the new parents and working women.
Page 25 of 26 • The local child day care market is 10 million Threats • The Morning Child Care is currently for sale; should another independent purchase this toddler care, it could pose significant threat to market share. Strategy and Implementation Summary The Child Care Center uses a strategy of total quality—in its product and service. Our promise is in our location, the service we sell, the people we attract and the atmosphere we create. Strategic Assumptions:  People want a better-standard day care to cater to ever competitive education industry.  Children need a conducive learning environment to enrich their experiences.  The day care industry is largely unaffected by the economy and world events Sales Strategy: Our Sales Forecast depends on establishing a loyal customer base who use our day care; we expect a few committed customers "regulars" who will bring in more rewarding business through word of mouth marketing. In order to achieve this kind of business, each customer, whether on the first visit or their hundredth, will be treated graciously and with respect. Part of our mission is to educate our customers about the awareness of ever increasing competition in the education industry; however, this must only be done in a respectful fashion. Our knowledge is a resource, and must never be used to make a customer feel uncomfortable. Our sales strategy includes:
Page 26 of 26  Staff salaries that are 10% above the industry average in order to attract the best resources.  Hiring for attitude so that we always have a friendly, enthusiastic staff to make customers feel welcome and appreciated; constant staff training to assure the best quality possible  State-of-the-art accounts/receipt system to (A) reduce customer waiting time, and (B) create efficient fee receipts  Create an ongoing awareness program  Conduct a consistent, aggressive marketing program with existing and new customers.  Introducing Customer Rewards, customers that introduce new customers get a reward of 10% reduced rates for bringing in a new customer.  Solicit customer feedback to constantly improve and streamline our operations. THANK YOU

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You know how important it is to plan activities for the kids at your day care? It's just as important to plan for the financial future of your business. These sample business plans for day care centers will help you write a business plan for your business.

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Home » Business ideas » Education Industry » Daycare Business

How to Write a Daycare Business Plan [Sample Template]

Do you want to start a daycare (childcare)? and need to write a business plan? If YES, here is a sample daycare business plan template & feasibility report. Okay, so we have considered all the requirements for starting a daycare center. We also took it further by analyzing and drafting a sample daycare marketing plan template backed up by actionable guerrilla marketing ideas for child care centers.

Table of Content

Why Start a Daycare Business?

What does it take to start a daycare center successfully, 1. industry overview, 3. our products and services, 4. our mission and vision statement, 5. job roles and responsibilities, 6. swot analysis, 8. our target market, 9. sales and marketing strategy, 10. sales forecast, 11. publicity and advertising strategy, 12. our pricing strategy, generating funding / startup capital for our daycare business, 14. sustainability and expansion strategy.

It is the duty of every parent- especially the mothers to see to it that their kids are properly taken good care of. However, there are times when circumstances just makes this totally challenging, as there may not be the luxury of time available to them to sit closely with their children and monitor them.

That is one of the reasons why parents would always want to take their kids to a daycare center. The question therefore is: how reliable are day care centers in seeing that the children are totally given the best of care and attention?

Before the daycare businesses came into existence, parents who could afford the luxury of hiring a home nanny whom they thought were vast and experienced in the care of children. However, as things changed and the crime rates in some areas went haywire-where some folks gained entrance into the houses of people for the sole aim of robbing them, the daycare trend took over.

And ever since the emergence of this trade, we have come to see more and more people who have a penchant for kids, dive into the industry just to tap into the profits that the day care business offers.

More often than not, in some parts of the world we find that some folks begin a day care business after they have been successful with running a school. Conversely, that is not to say that one couldn’t possibly start only a day care business. As a matter of fact, starting first with a day care center, helps to start on a right footing so that you are able to determine whether you will be able to have a school as an addendum business in the near future.

So, if you have scaled the hurdle of being in love with children, then starting your own day care business might be a smart business choice. Having this wish or aspiration as it were on the front burner of your mind, isn’t all that is required. As a matter of fact there are legal necessities that you have got to tidy. As well as draw up a comprehensive business plan that will guide you as you start out and trudge ahead in business.

A Sample Daycare Center Business Plan Template

Day care business is one of the easy businesses that just about anyone who has a flare for kids could readily start. There is no doubt that as the zeal to make more money heightens with parents, then the need for newer and more seasoned day care centers to arise becomes highly important. That is why investors are beginning to leverage on the high demand for day care services, to establish even better ones.

As such, in all of the states of America, there is hardly one neighborhood that doesn’t have a day care centre. The business is indeed a lucrative one and those who are into the trade of establishing them are smiling to the banks every day. However, that is not to water down the fact that loads of work has to be put in place in order to satisfy parents who use these daycare centers.

Whether you are looking to start a small or big one, truth is that there would always be the need to have kids put in these places. This is why some folks who do not have the wherewithal in terms of finance may choose to start from their homes, whilst some may want to start from very little spaces they get.

Over and above one bright ray of light as it concerns the day care business is that there is always room for expansion, as one learns on the job and then improves the services that one renders.

Setting up a day care business means that one would be dealings with little babies, and as such, care have got to be taken in order to hire not just mere employees, but to hire those who are way too vast in the trade and are capable to help the day care business to a great level. There will always be the need to garner plenty of knowledge that would be useful in giving the children the very best of experience.

The returns on investment that one attracts here is so huge that one have just got to keep at doing those things that would continue to guarantee repeat customers as well as give the kids whom are being cared for a growth experience that they wouldn’t forget in a hurry.

2. Executive Summary

Tiny Thoughts ® is a foremost day care center in Ohio, America. It has the best of aims to prepare its pupils to come out tops in all they do- given that they would be the leaders of tomorrow. We propose to achieve this and more by merging an all exclusive curriculum custom-made explicitly for children.

Our type of curriculum is enriched with extra super child care services. This is nothing like what our competitors have to offer because we offer forward-thinking technology plans, after-school training, and activities that help the kids grow better. Activities such as; arts, dance, crafts, gymnastics, theatre, sports, amongst others.

Tiny Thoughts is a privately held establishment run by its owner, Mrs. Mary McGregor. Mrs. Mc Gregor has 10years of Educational training experience. As a matter of fact she is a master’s degree holder of child psychology. So that when it comes to child management and psychology, she is always at the top of her game.

Her advanced degree in child psychology and interest in kids is the driving force behind the establishment of Tiny Thoughts . She will be supported in daily operations by another educationist and psychologist, amongst other employees.

With the inflation bane that continues to affect the American economy, there will always be the need for parents to work more than one job per time for additional income. It is for this reason that there will always be a need for excellent child care services.

With the least population of Ohio which is at 11.59 million people, there will always be the need to have capable day cares to cater for them. That is why we have decided to position our establishment so as to meet the teeming needs of parents who want the very best for their children.

At Tiny Thoughts , we leave no stone unturned to see that we put in place high- quality child care services, thorough bred educated instructors, as well as personal skills that will allow us compete well in our market . We shall also offer competitive price as part of one of our success factors so that we can attract all and sundry to our prestigious day care center.

Furthermore, we know the importance of having an excellent rapport with parents, and the community we serve, which is why we train and even retrain our workforce so that they bring the best of skills and attitude to the table at all times.

With the aforementioned points in place, we therefore do not intend to look for long before we attract customers as we go all-out to build a loyal customer base by offering the kids at the day care a very hospitable- yet educating experience in a comfortable and beneficial environment.

At Tiny Thoughts ®, we are first all about making the day care center a very conducive one. We are aware of the fact that some parents might hold back when it comes to the type of vicinity their kids will be put in; which is why we have taken time to research and learn the various ways to build a world class establishment. This we have done in the state of Ohio. Our services include the following;

Our Business Structure

Big establishments know that one of the greatest selling points is to have the best hands. As such; we plan to only hire the most competent and seasoned employees. This is particularly important since it is uttermost on our minds to run our day care center with an intercontinental approach. This means that we are looking to have all races enroll in our establishment.

We came up with outright buying our own building, instead of having to make do with a leased one. This is why we have resolved to have quite a number of employees to be on our pay roll because of the ample room we have. Therefore, below is the type of structure we look to build our business on;

Administrative Assistant

Toddler Room Supervisor

Preschool room supervisor

Chief Executive Officer – CEO:

Assistant Director:

Accountant / Cashier:

Infant Room Supervisor

Preschool Room Supervisor

Our purpose of starting a day care center is to compete favorably with other schools, and surpass them. We have also decided to have a test run on the business for a period of 5 years. This is to know how we are able to fare during this time, as well as to determine if we are to devote more resources, additional money, for the expansion of the business.

We shall start with just one center for now and then see how we are able to succeed despite the myriad of competition. In arriving at all these, we deemed it fit to employ the services of an expert who has helped us with conducting a SWOT analysis.

It was expedient that we did this, so as to ensure that we have what it takes to run a day care school and perhaps even build more branches. Here is a summary of the result from the SWOT Analysis that was conducted on behalf of Tiny Thoughts;

Our area of strength to a very large extent lies in the fact that the owner of our day center is well versed in child psychology. This is really a positive one for us, because we believe that we shall be able to really handle the kids that are put in our care, unlike some folks who have no background knowledge in education and psychology.

The perceived weakness for our business could be that we are starting out as newbies and it really isn’t easy to convince people to come and enroll their kids at the day care. This is why we have got to really work hard at our advertising strategies, as well as solidify how to seal deal with our potential clients.

Opportunities:

The fact that we intend to lower the fees involved in enrolling a kid at our daycare, seems to be one of the ways at which we will attract all and sundry. We are certain without a doubt that with the quality of our employees and services, we shall attract clients that would be highly satisfied with us.

Some of the threat our business may likely faced with might be a scenario where a kid has an illness and yet comes to the center. There may be likelihood that such an epidemic might spread to other kids. As such; this might not be nice because that might make some guardians want to withdraw their kids to a safer place.

7. MARKET ANALYSIS

Market Trends

In the united states of America, you will quite agree that there are lots of guardians who need to work almost round the clock to eke out a living for them and their families. As such and as stated earlier, the need for someone to care for the kids whilst working in non negotiable.

That is why there will always be the need to have kids at day care centers. Furthermore, there is no indication that the day care trade would plummet anytime soon based on the statistics of parents who work that is found by experts.

There is always a boom in this business all year round, as the weather or state of the economy has nothing to do with it. That is why the services being rendered by us have to be top notch at all times. We do not want to be found wanting in any area, that is why we are sure to invest a lot in training our employees at all times.

Our positioning, as is always the case of determining the amount of customers that patronize a business is of importance to us, which is why we have chosen to start from Ohio.

Despite the fact that there loads of day care businesses who have done so well for themselves in the past, we plan to not leave any stone unturned as we continue to work at better ways to make our services known to people. Part of the marketing and sales strategies to be adopted includes;

When it comes to the day care business, of course our target market is the guardians and parents. That is why we have got to primarily focus on these types of people. The people we intend offering our services to are;

Our Competitive Advantage

Going by the state where we have chosen to start from, we found that there are no day care centers in the vicinity we are, which is why if we are able to do our due diligence, and we are able to attract a crowd of customers there, then there is the possibility of hitting success in the first few years of operation.

We plan to run a standard day care business which is why we hired one of the leading business consultants to work with us in setting up our business. The business consultant we have hired has over 10 years of experience in business management and has successfully opened several day care businesses in major cities across the United States of America.

So far, there are clear indications that with what he has brought up, we shall no doubt do well and even surpass other businesses in the state. We believe that for us to have hired one of the experts in town, without a shadow of doubt, we will do exceptionally well when eventually we kick start.

Sources of Income

Our sources of income for Tiny Thoughts is limited to the services of taking proper care of the children that have been placed in our care. However, we are not relenting when it comes to opening different branches.

It is important to state that our sale forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. Below is the sales projection based on the location (Ohio), which already has an avalanche of day care schools.

200 pupils per session

N.B : Our annual projected sales for TinyThoughts ® is put at about $4,800-$16,500, or $400 -$1,375 monthly per child. Over and above, as Tiny Thoughts gets established, our net profitability will likely witness a boom as that indeed is what we project.

Marketing Strategy and Sales Strategy

Tiny Thoughts will throw a grand opening party when it does start. One of the very unique things that we plan to do on that day is to; unveil some of the professionals and junior employees that we have. That is those who will help us get things started on the right footing. Why is this a big one for us? It is a big one for us because parents will have an opportunity to interact with this people, as well as ask all the questions they want.

The location of our day care center is strategically positioned to attract ample customers with little or no effort from our own part, which is why we do not make provisions for marketing and sales executives in our company’s structure. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate a high number of people;

When it comes to publicity and advertising, we have a low budget for it simply because our business is located in a place that can easily attract the numbers of customers we would need with little or no stress on our own part.

But for the fact that we hope to some day in the near future have more branches, we have decided to create a budget for publicity and advertisement for the major aim of introducing our brand in the market place. Everything that we will do in this regard is geared towards communicating our brand. Here are the platforms we intend leveraging on to promote and advertise our business;

When it comes to fixing prices for our services, we will ensure that we set pricing in line with what is available in the day care trade. We are very aware that we have got to lower our price so that we will be able to attract customers like never before as we seek to gain recognition as newbies. When this is achieved, then bottom line is that our customers will derive real satisfaction when they bring their kids to us.

Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches.

13. Startup Expenditure (Budget)

This is the key area where we will spend our start – up capital;

We would need an estimate of about $100,000 to successfully set up our day care business. The amount includes the salary of all employees and the CEO (Owner) for 3 months.

Tiny Thoughts is a private business that is solely owned by Mrs. Mary McGregor and she does not have the intention of welcoming any external partners except immediate family members which is why she has decided to restrict the sourcing of her start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

N.B : We have been able to generate about $60,000 ( Personal savings $40,000 and soft loan from family members $20,000 ) and we are at the final stage of obtaining a loan facility of $80,000 from our bank. All the papers and document has been signed and submitted, the loan has been approved and any moment from now our account will be credited and we will be able to execute all the things that needs to be executed.

Our plans of establishing Tiny Thoughts is basically to test – run the Day care trade. We have decided to start our first outlet in a competitive location like Ohio. Although we don’t have the intention of running chains of day care centers now, but we have plans to set up branches in years to come. It is pertinent to state that we shall not allow our standard operating process to drop so that we do not lose our loyal customers.

Check List / Milestone

How to Write a Business Plan for Starting a Day Care Center

How to Write a Business Plan for a Salon

What are the key elements of a business plan, how to pitch a business plan.

Writing a business plan for starting a day care center will serve a few different purposes. First, a business plan may help you organize your ideas for launching your business by identifying the steps you need for business start-up. A day care center business plan will also help you stay on track after you've launched your business and as you move toward meeting your goals. A business plan isn't necessarily set in stone, however, and you can adjust it periodically as your business grows or your plans change.

In addition, a business plan demonstrates you have carefully thought through the operations of your daycare business; it can be used to show lenders why they should help you finance your business.

Create Your Company Description

Create a general overview of your day care business plans. Write a brief summary of your goals and include why you think starting a day care business is a good idea. Include a description of your own experience and qualifications as well as your expectations for staff.

Provide A Market Analysis

Include an analysis of the day care center industry. List information about day care industry tends and estimate day care industry revenue. Include information about the needs of your target market and how its day care needs are currently being addressed. Include information about how you will position your day care center business for success despite the competition.

Detail Your Marketing Plan

Include details about plans for pricing and advertising your business. Plan how you will communicate your day care business' benefits to your target market.

Outline Your Organization and Management

Describe the legal structure you will choose for your business. For example, if you will be the sole owner of the day care center, you may start a sole proprietorship. If you will have a partner, however, you will have to form a partnership. You may even choose to establish your business as a separate entity from yourself by forming a corporation.

Add information about managing your business. Include details about hiring and training employees. Make sure to cover the legal necessities of a daycare business, such as site safety, emergency care, staff qualifications, and other requirements in your area.

Lay Out Your Finances

Your plan should include a statement of how the business will run financially. That is, what you anticipate as your start-up and operational costs and the type of income you anticipate from the daycare's clients or from other sources of funding such as grants, donations or community assistance.

Make Your Funding Request

Determine what you will need in terms of financial assistance to get your business off the ground. Include a description of the location you've chosen for your day care center, and the equipment and furnishings you will need.

Lenders will want to review your day care business plan if you apply for a loan. Use your business plan to demonstrate how your business will stand out among your competitors, why you should run it and why now is the right time to start a day care center.

Jordan Meyers has been a writer for 13 years, specializing in businesses, educational and health topics. Meyers holds a Bachelor of Science in biology from the University of Maryland and once survived writing 500 health product descriptions in just 24 hours.

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Longwood Small Business Development Center

Petersburg day care pushes past the odds

Amy Venable, owner of Genesis Learning Center

“I started working for Genesis, a church-operated day care, when I was 21,” she says. Amy completed a degree in early childhood education and then decided to take a job on the West Coast. She was called back to Virginia by the Genesis Learning Center. “The school was failing, and they wanted to see if I could save it,” Amy relates. Three years later, the pastor gave the school to me — I guess you could say I inherited it.”

Since Amy took over the business in 2006, Genesis has expanded to include three locations. “In 2020, we decided to add a fourth location in Petersburg,” Amy says.

Amy had several goals when she contacted Ellen Templeton, Center Director of the Longwood University SBDC — Eastern Region, also known as the Crater SBDC. “I needed to understand the Petersburg market and wanted someone in the area to help me make connections and network,” Amy explains.

Networking began with an SBDC workshop on “How to Start a Business.” At that workshop, Amy made an important connection with Dennis Wagner of the Small Business Administration (SBA). This led to another connection to an executive at a Petersburg hospital looking for a source of quality childcare. “We had identified a location for our school in Petersburg,” Amy relates. “At that point, Ellen encouraged me to contact the SBA for funding.”

To apply for an SBA loan, Amy needed to write a business plan — something she had not done during her 14 years in business. “Ellen walked me through the application process and all the paperwork involved with it,” Amy continues. “We did secure a $900,000 loan for the Petersburg expansion to serve 125 families and provide 25 full-time jobs.”

It seemed like all signs were a “go” for the new location as things continued to fall into place. However, COVID had other plans. The pandemic abruptly halted the forward movement for the newest Genesis Learning Center. “The Petersburg project was put on hold,” Amy reports. “Now, in 2021, we basically have to start over from the beginning.”

Despite such setbacks from the pandemic, Amy is confident about the future. “Because Ellen walked me through the SBA loan process pre-COVID, I’m not afraid to start again post-COVID,” Amy says. “To me, that’s the real value of the SBDC.”

Amy doesn’t hesitate to recommend the SBDC. “I’ve had a wonderful experience with the SBDC and specifically with Ellen,” she concludes. “The SBDC has the experience and knowledge to help any small business owner succeed.”

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Daycare Business Plan
😍 Business plan daycare. A Sample Daycare Center Business Plan Template

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COMMENTS

Child Care Center
Day Care Business Plan, Presentation on Child Care, CCTV Cover, Transportation, Child Development, Summer Camp, School for Young Kids
Day Care Business Plans
Bplans offers free business plan samples and templates, business planning software, free financial calculators, and startup and small business articles
Daycare Business Plan [Sample Template for 2022]
As a matter of fact, starting first with a day care center, helps to start on a right footing so that you are able to determine whether you will be able to have a school as an addendum business in the near future
How to Write a Business Plan for Starting a Day Care Center
Writing a business plan for starting a day care center will serve a few different purposes. A day care center business plan will also help you stay on track after you've launched your business and as you move toward meeting your goals
Creating A Business Plan for a Dog Day Center
You should be able to read through your business plan after you've been in business for a while and see exactly how certain decisions led to specific consequences both positive and negative
Petersburg day care pushes past the odds
Amy Venable-Turner, owner of the Genesis Learning Center, believes learning never stops. She's built a thriving day care business focused on that approach
Business Plan for Adult Day Care Center
This free business plan builder template will help you develop your own Business Plan for Adult Day Care Center. Using the free business plan template tool to create a business plan for an a Adult Day Care Center
Day Care Centre Business Plan
Day Care Centre Business Plan make it a lot easier for you to completely transform your business idea onto a written paper within no time