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The Toddler Warehouse is a full-service child care/development facility that cares for toddlers from age three to five. The Toddler Warehouse will be concentrating on the upper end of the market: double-income professional parents. These personally ambitious parents are typically eager in terms of their children's development and will be willing to pay to have their children attend the best facilities. Through specialized training of the staff and innovative learning systems, The Toddler Warehouse is cutting edge in terms of child development. This curriculum, coupled with a custom designed facility and a low teacher: student ratio ensures a top shelf service for the children and the parents.
The objectives for the years of operation include:
To create a service based operation whose primary goal is to exceed customer's
The utilization of The Toddler Warehouse by at least 40 different families in the
first eight months.
To increase the number of client's served by 20% each year. To develop a sustainable, profitable, start-up business.
The Toddler Warehouse's mission is to provide top level child care. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
UTU Company Analysis The Toddler Warehouse. Company Ownership The Toddler Warehouse owned by Nikunj Tanti. large muscle group activities. will offer child care services for kids between the ages of three and five. The Toddler Warehouse will offer services from 6 a. and general learning. OR. 2 .Faculty of management. but will offer a low student to teacher ratio and well trained staff. to 7 p. The children will be exposed to a wide range of activities including arts and crafts. The Toddler Warehouse will be priced out of some people's budget.m. soon to be located in India. socialization.m.
UTU Idea Generation The Toddler Warehouse's start-up costs include: The purchase of a four bedroom house and the appropriate renovations to bring it up to code in reference to bathrooms and kitchen Tables (depreciated) Office furniture (depreciated) TV and VCR (depreciated) Sleeping mats and pillows (depreciated) Outdoor playground set (depreciated) Storage bins (depreciated) Laundry facilities (depreciated) Computer system with printer.000 100 350 150 3 . Brochures Art supplies 1. and Internet connection (depreciated) Copier and fax machine (depreciated) Art supplies Toys Medicine kits Kitchen supplies Brochures Cleaning supplies Legal fees Advertising costs Start-up Requirements Start-up Expenses Legal Stationery etc.Faculty of management. CD-RW.
250 0 33.150 49.Faculty of management.250 0 49.000 Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities 0 0 0 0 0 4 2.850 85.250 82.150 82.850 85.600 49.600 82.000 33.850 . UTU Kitchen supplies Cleaning supplies Medicine kits Matts and pillows Other Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements 200 100 100 150 0 2.
and innovative learning programs. The two income families have children.150) 82. the target customer. This is not a baby sitter facility. The Toddler Warehouse is an innovative solution that acts as virtual parents. UTU Capital Planned Investment Investor 1 Investor 2 Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding 85.850 85. yet both parents work. The Toddler Warehouse offers a low teacher to student ratio.000 (2. The children are engaged throughout the day. broadening the children's skills during the day. learning new skills and reinforcing already acquired ones. custom facilities. The Toddler Warehouse hours will be a bit wider rage than normal business hours to accommodate the working parents.850 82.Faculty of management. 5 .000 0 0 0 85.000 Operation plan Services The Toddler Warehouse offers Salem an upper-end child care facility for toddlers age three to five.
and is willing to spend a little extra to get a higher level of care. 6 .Faculty of management. not allowing them time to raise their child during the day. singing. and 2) are ambitious in terms of their children's learning and development. This would explain why the parents 1) have the money for more sophisticated child care. The Toddler Warehouse will be targeting double income professional families who. they would like the children to be enrolled in a program that offers development of many different skills including: socialization skills. Parents who are professionals. UTU Market plan The Toddler Warehouse will be offering child care/development for toddlers age three to five. etc. arts and crafts. who are ambitious by nature themselves. This group of families has both parents working. This customer group is typically made up of two professional parents. The Toddler Warehouse will continue to develop the children's skills. The Toddler Warehouse will be targeting families that are interested in something more than simple baby-sitting facilities. Market Segmentation The Toddler Warehouse is targeting one specific customer group. This customer segment has already begun teaching its child advanced concepts like reading. large muscle group workouts. do not have the time during the day to care for their child. numbers. etc. the middle to upper class. because of work obligations. are typically eager for their children to move ahead and are willing to pay for the best development care services for their children. reading. two income professional families. socialization. This group has the money for child care.
68% 6. appreciate the advanced learning and development The Toddler Warehouse has to offer. Relatives are great for nights out or weekends. and lastly are a growing segment of our society. but they do not compare to a structured program when it comes to the learning 7 . With both parents working. our targeted group prefers a more structured learning environment.000 6.00% 6. UTU Market analysis Potential Customers Two income professional families Other Total 0% Growth Year 1 Year 2 CAGR 9% 12.68% 12.000 12. While the Department of Labor indicates that over 50% of children are cared by relatives compared to 29% for a commercial day care center.000 Target Market Segment Strategy The Toddler Warehouse intends to concentrate on the double income working professional families because they are the segment that can most readily afford day care.000 12.Faculty of management. this segment needs some sort of provisions for the care of their child.68% 0 0 0. are the ones who need day care because of their work obligations.
In addition. child care centers. Tours in the industry are pretty standard. These competitors are people that have a child care facility based out of their house. The Toddler Warehouse will only detail the direct or reasonably direct competitors. The direct competitors are: 1. some are great. 3. they are ambitious with the development of their child and are willing to pay to get the best program for their prodigy. These are typically independently owned facilities. others will specialize with a specific age group.Faculty of management. Established. With this in mind. Some of these will handle a wide range of ages. The number of children serviced is usually quite large. Medium sized companies. The Toddler Warehouse's facilities are so good that 8 . 2. Competition and Buying Patterns There are many different competitors in the child care space. often franchised. Small. If the targeted parent hears and understands these advantages. What will be communicated are The Toddler Warehouse's competitive advantages: specialized training of the staff and innovative learning programs. some are subpar. they will more likely be willing to switch to The Toddler Warehouse's service. The Toddler Warehouse will be using tours of the facilities to sell its services. UTU and development that occurs at The Toddler Warehouse. These are typically larger facilities that offer care to a wide range of ages. The Toddler Warehouse must then carefully communicate it's services if the company is to be patronized by this target segment. The child care is adequate. The quality of these ranges considerably. Having both parents as professionals. home based child care. Strategy and Implementation The Toddler Warehouse is targeting a very specialize niche in child care space. Most parents want to see a facility before they will send their kids there. although somewhat impersonal by virtue of its large size. and will not detail the myriad of other service providers that offer some sort of child care option.
and Matt's specifications. Matt will be finishing up the training program and manuals. These facilities were custom designed to achieve very specific educational goals and The Toddler Warehouse is immensely proud of the facilities. These families have the money to spend on child care and these parents are much more likely to appreciate the advanced learning systems taught at The Toddler Warehouse based on Matt's thesis. This will serve to build a trust bond between The Toddler Warehouse and the parent who naturally is cautious about leaving the child with strangers to have the child cared for and taught the entire day. this is entirely possible. 9 . Therefore. The tours typically occur during the day and this becomes a perfect opportunity for the potential customer to view the care as it is occurring. both for the state health and license codes. In addition to one on one explanation of the program and its merits. During this time. Because of the high level of service. the prospective parents will be given tours of the facilities. The sales strategy will be based on a communication effort to explain the virtues of the program and how time at The Toddler Warehouse can speed up the children's development considerably. Sales Strategy The Toddler Warehouse's sales strategy will be targeting double income working professional families. he is re-working it so it is custom designed for his new facility.Faculty of management. Sales Forecast The first two months will be spent renovating the house and bringing it up to specifications. In essence. 2. The tour of the facility will serve two purposes: 1. The tour will be used as a way to impress the prospect of the facilities that The Toddler Warehouse has. it will be a priority to get the parents to view the facilities and that will convince them. Although Matt had designed an entire training program as part of his Master's in Education. The Toddler Warehouse is letting the facilities and teacher/student interactions speak for themselves. UTU they speak for themselves.
254 0 351.709 351.489 335.025 0 7. It is anticipated that the facility will be under-utilized until the eighth month. From month seven on.425 0 174. By the middle of the third month The Toddler Warehouse will begin accepting children for care.709 0 6.425 Year 1 3. incremental increase in sales.489 0 3.025 Year 2 Year 3 10 . word will have spread and the classes will be filling up quite nicely. UTU The first week of the third month will be used for training of the staff. there will be a steady.Faculty of management.458 0 335.458 Year 2 6. Sales Forecast Year 1 Sales Two income professional families Other Total Sales Direct Cost of Sales Two income professional families Other Subtotal Direct Cost of Sales 174. By then.254 Year 3 7.
in a training and leadership role for the organization. UTU Personnel Plan The staff will consist of Matt working full-time. Profit and Loss The following table will indicate projected profit and loss.000 Financial Plan The following sections will outline the important financial details.000 24.000 36. 11 .000 20.000 15.000 24.Faculty of management.000 18. and a general help person who will help out with custodial. two more assistants will be hired.000 24. By month seven. two assistants.000 8 216.000 24.000 Year 2 30.000 30.000 8 163. and laundry tasks.000 30.000 12. During month three. the following staff will be brought on board: two teachers. Personnel plan Matt Teacher Teacher Teaching assistant Teaching assistant General help person Teaching assistant Teaching assistant Total People Total Payroll Year 1 24.000 12.000 36.000 20. cooking.
000 1.458 6.000 0 0 1.614) -27.709 0 6.512 37.19% 12 .00% 163. UTU Profit and loss Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Licenses Utilities Mortgage Insurance Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Year 1 174.049 50.000 32.200 2.425 3.489 170.537 11.700 50.000 3.049 0 12.800 216.550 (48.937 98.450 0 219.000 3.614) 0 0 (48.87% 0 1.100 24.614) (48.749 98.00% Year 2 335.000 24.709 328.400 0 278.100 24.489 0 3.200 2.Faculty of management.
UTU Balance Sheet The following table will indicate the projected balance sheet.237 39.596 85.906 $0 44.733 0 0 6.537 71.233 0 6.506 71.600 0 33.506 Year 2 5.773 13 .600 0 33. Balance sheet Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth Year 1 Year 2 6.833 34.733 0 $6.596 0 0 5.833 Year 1 33.150) (48.596 0 5.Faculty of management.614) 34.600 39.764) 37.000 (2.906 33.600 78.000 (50.237 6.233 44.773 78.733 85.
supplies and a marketing budget. Once established. which includes not only more children but the possibility of additional buildings. Single parents are usually workers who need child care. there is also the strength of having potential funding from local or federal government agencies eager to help improve access to quality child care.Faculty of management. be objective about the potential weaknesses of your business model. insurance. especially from companies that offer in-house child care. Weaknesses In your SWOT analysis. Don't forget to include the daily costs of running the business. In terms of personal satisfaction. the maintenance of the center can be expensive with painting. state and federal laws. Finally. Start-up costs can be exorbitant. as they include a building with a kitchen. In terms of a start-up. which could help ensure that you'll receive full payment. Opportunities The potential opportunities associated with a day care business can be exciting. There is always the potential of growth. replacement furniture and other supplies. It is also feasible for you to provide care for children whose low-income families benefit from government programs. strength of this type of business is that it provides a creative aspect for the owner who is able to develop the theme and early childhood curriculum to be used. This strength works hand in hand with the contribution to the community you provide when you offer quality child care that enriches the lives of your charges. which can happen even in the best-run and -staffed facilities. and there are many marriages in which both people work and are in need of day care for their children. Threats The threats aspect of a day care center should focus on competition. UTU SWOT Analysis Strengths The strength portion of a SWOT analysis needs to discuss the demand for the center's services. including utilities and food. This will help you prepare for challenges and avoid pitfalls later in the process. There is also the possibility of lawsuits for alleged cases of neglect or abuse. repairs. the opportunity exists to partner with businesses in the area who could potentially subsidize the cost for employees who use your center. 14 . You must also obtain licensing to run the operation and be in compliance with all local. There is also the risk of high employee turnover and difficulties in finding qualified staff members.
15 . but in-home day care centers must still ensure the safety. UTU Government Approval Home daycares are ways of creating work-at-home businesses. Taking care of children from your home can be profitable and will create a warm. DCF. According to Wisconsin's Department of Children and Families. The Maine government requires that several steps take place before it will certify and license your home daycare facility. family child-care licenses are usually issued within 60 working days after receipt of a complete application. health and well being of every child in their care. satisfactory department investigation and approval. you can legally turn your home into a childcare center to open your business quicker and drastically cut the required start-up capital. The process for opening a family child-care center isn't as involved as opening an outside child-care center.Faculty of management. If you want to start a daycare in Wisconsin. homelike environment for children to learn and develop in. Completing these steps will help you create a Maine government-approved daycare within your own home.
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