Contents
Day Care Business Plan
The increasing number of families relying on dual incomes has created a need for the child care industry. More children require a safe and enriching place to go.
Solution
Safe Kids Child Care will provide children with a safe, secure, and enriching environment. Our center aims to help parents feel confident about their child’s care while offering a fun and educational experience for the child.
Market
Safe Kids Child Care will focus on meeting the local demand for child care within a 10-mile radius of Lynn. We offer flexible options for full-time or part-time care.
Competition
The local area has over 300 child care providers, with larger commercial chain centers like KinderCare dominating the market. Safe Kids Child Care stands out by offering a lower staff to child ratio and maintaining fees 5-10% below the average of large chain centers.
Why Us?
Safe Kids Child Care attracts parents with its lower staff to child ratio and competitive pricing.
Expectations
Forecast
Safe Kids Child Care plans to achieve sustainable profitability in the next three years. Through well-priced services, excellent customer service, and a skilled management team, we aim to become a premier child care provider.
Financial Highlights by Year
Financing Needed
We will invest $40,000 to start our business, with each owner contributing $20,000.
Opportunity
Problem & Solution
Problem Worth Solving
The Boston area has a competitive child care market, with over 300 facilities, including large corporate franchises and smaller, locally-owned centers. Safe Kids Child Care aims to provide excellent care to children, filling a need for safe and enriching environments.
Target Market
Market Size & Segments
Safe Kids Child Care focuses on meeting the local demand for child care within a 10-mile radius of Lynn. We cater to full-time working couples and part-time workers/drop-ins. Customer satisfaction is crucial to retaining clients.
Competition
Current Alternatives
With over 300 child care providers in the area, larger commercial chain centers like KinderCare dominate the market. Safe Kids Child Care appeals to parents with its lower staff to child ratio and competitive fees.
Our Advantages
Safe Kids Child Care stands out by obtaining all necessary licenses and certifications. We also conduct thorough background screenings for our staff.
Keys to Success
Keys to Success
To succeed, our company must maintain a reputable reputation, provide quality care, offer competitive pricing, and have flexible hours.
Execution
Marketing & Sales
Marketing Plan
We differentiate ourselves through our benchmark customer service, investing in the best employees who interact with children and parents. Our social media campaign on platforms like Facebook and LinkedIn allows experts to answer child care questions, building trust and confidence.
Sales Plan
Safe Kids Child Care will see profits within the first year through word-of-mouth advertising. We expect to double our clientele every six months for the first 18 months.
Operations
Locations & Facilities
Our initial facility is a 1,300 sq. ft. house in a quiet residential neighborhood. The yard is fully fenced and furnished with safe and entertaining toys, including a sandbox, to provide a safe environment for children.
Milestones & Metrics
Key Metrics
Our key metrics include Facebook page views, Twitter re-tweets, new potential clients referred by current clients, the number of children in our care daily, monthly sign-ups, and staff training to ensure minimal incidents.
Company
Overview
Ownership & Structure
Safe Kids Child Care will start as a proprietorship, with the possibility of re-registering as an LLC or corporation in the future to meet business needs.
Team
Management Team
Safe Kids Child Care will be led by industry veterans Andrea Child and Danielle Freelander. Andrea brings sales, marketing, and management expertise, while Danielle has a background in finance and administration.
Personnel Table
| Expert Consultants | $89,400 | $45,000 | $45,000 |
| Care Staff | $246,000 | $374,400 | $467,256 |
| Managers | $135,000 | $185,400 | $190,962 |
| Totals | $470,400 | $604,800 | $703,218 |
Financial Plan
Forecast
Key Assumptions
Our key assumptions are:
- Families require child care due to both parents working or needing to work.
- Parents may need emergency child care services.
- The community appreciates available resources and expert advice.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Our start-up expenses amount to $3,000, covering stationery, activity supplies, food preparation supplies, first aid supplies, cleaning supplies, and nap time bedding.
Sources of Funds
Both owners will contribute $20,000 each, totaling $40,000.
Statements
Projected Profit & Loss
| Revenue | $696,000 | $875,000 | $1,092,000 |
| Direct Costs | $117,240 | $80,000 | $88,680 |
| Gross Margin | $578,760 | $795,000 | $1,003,320 |
| Gross Margin % | 83% | 91% | 92% |
| Operating Expenses | |||
| Salaries & Wages | $381,000 | $559,800 | $658,218 |
| Employee Related Expenses | $76,200 | $111,960 | $131,644 |
| Leased Equipment | $1,800 | $1,800 | $1,800 |
| Certifications | $2,400 | $2,400 | $2,400 |
| Utilities | $1,800 | $1,800 | $1,800 |
| Insurance | $3,000 | $3,000 | $3,000 |
| Rent | $24,000 | $24,000 | $24,000 |
| Startup Expenses – Listed in Use of Funds | $3,000 | ||
| Total Operating Expenses | $493,200 | $704,760 | $822,862 |
| Operating Income | $85,560 | $90,240 | $180,458 |
| Interest Incurred | |||
| Depreciation and Amortization | |||
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $6,845 | $7,219 | $14,437 |
| Total Expenses | $617,285 | $791,979 | $925,979 |
| Net Profit | $78,715 | $83,021 | $166,021 |
| Net Profit/Sales | 11% | 9% | 15% |
Projected Balance Sheet
| Cash | $139,493 | $168,779 | $190,402 |
| Accounts Receivable | $0 | $0 | $0 |
| Inventory | |||
| Other Current Assets | |||
| Total Current Assets | $139,493 | $168,779 | $190,402 |
| Long-Term Assets | |||
| Accumulated Depreciation | |||
| Total Long-Term Assets | |||
| Total Assets | $139,493 | $168,779 | $190,402 |
| Accounts Payable | $0 | $0 | $0 |
| Income Taxes Payable | $3,689 | $1,766 | $3,570 |
| Sales Taxes Payable | $17,089 | $15,277 | $19,075 |
| Short-Term Debt | |||
| Prepaid Revenue | |||
| Total Current Liabilities | $20,778 | $17,043 | $22,645 |
| Long-Term Debt | |||
| Long-Term Liabilities | |||
| Total Liabilities | $20,778 | $17,043 | $22,645 |
| Paid-In Capital | $40,000 | $40,000 | $40,000 |
| Retained Earnings | $28,715 | ($38,264) | |
| Earnings | $78,715 | $83,021 | $166,021 |
| Total Owner’s Equity | $118,715 | $151,736 | $167,757 |
| Total Liabilities & Equity | $139,493 | $168,779 | $190,402 |
Projected Cash Flow Statement
| Net Cash Flow from Operations | |||
| Net Profit | $78,715 | $83,021 | $166,021 |
| Depreciation & Amortization | |||
| Change in Accounts Receivable | $0 | $0 | $0
Business Plan Outline
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Hello!
I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
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