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.

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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.

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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

2020
2021
2022
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:

  1. Families require child care due to both parents working or needing to work.
  2. Parents may need emergency child care services.
  3. 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

2020
2021
2022
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%
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Projected Balance Sheet

2020
2021
2022
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

2020
2021
2022
Net Cash Flow from Operations
Net Profit $78,715 $83,021 $166,021
Depreciation & Amortization
Change in Accounts Receivable $0 $0 $0Day Care Business Plan Example

Business Plan Outline

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