Just Like Home Child Care BUSINESS PLAN
BUSINESS PLAN PREPARED BY
Lois Banks Owner 456 Pick Up Sticks Lane Anderville, StateA 555-555-5555

DATE PREPARED
December 200B

JUST LIKE HOME CHILD CARE BUSINESS PLAN TABLE OF CONTENTS EXECUTIVE SUMMARY
Venture Venture Venture Venture Venture Venture History Description Organization Market Operations Financing 5 5 5 5 5 5 6 7 7 7 7 8 8 8 8 8 9 9 9 10 10 10 10 10 11 11 11 12 12 12 13 13 13 13 13 14 14 14 14 15 2

MANAGEMENT AND ORGANIZATION
Management Team Compensation and Ownership Board of Directors/Advisory Council Infrastructure Contracts and Franchise Agreements Insurance Employee Stock Option Plan and Other Incentives Organization Charts

PRODUCT / SERVICE
Purpose of the Product / Service Unique Features Stage of Development Future Research and Development Trademarks, Patents, Copyrights, Licenses, Royalties Government Approvals Product / Service Limitations Product / Service Liability Related Products / Services and Spin-Offs Production Facilities Suppliers Environmental Factors

MARKETING PLAN
Industry Profile Current Size Growth Potential Geographic Locations Industry Trends Seasonality Factors Profit Characteristics Distribution Channels Basis of Competition

JUST LIKE HOME CHILD CARE BUSINESS PLAN TABLE OF CONTENTS
Competition Profile Competitive Analysis Grid Customer Profile Target Market Profile Pricing Profile Gross Margin on Product / Services Break-Even Analysis Market Penetration Distribution Channels Sales Representatives / Direct Sales Force Direct Mail / Telemarketing Advertising and Promotion Packaging and Labeling Service and Warranties Trade Shows Future Markets 15 16 17 17 18 18 18 18 18 18 18 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 21 21 21 21 21 22 22 22 22 22 22

OPERATING AND CONTROL SYSTEMS
Administrative Policies, Procedures, and Controls Receiving Orders Billing the Customers Paying the Suppliers Collecting the Accounts Receivable Reporting to Management Staff Development Inventory Control Handling Warranties and Returns Monitoring the Company Budgets Security Systems Documents and Paper Flow Planning Chart Product / Service Development Manufacturing Financial Requirements Marketing Flow Chart Market Penetration Management and Infrastructure Risk Analysis Salvaging Assets

3

JUST LIKE HOME CHILD CARE BUSINESS PLAN TABLE OF CONTENTS GROWTH PLAN
New Offerings to Market Capital Requirements Personnel Requirements Exit Strategy 23 23 23 23 24 25 25 25 25 25

FINANCIAL PLAN
Sales Projections Income Projections Cash Requirements Sources of Financing Projected Cash Flow Statements Projected Year-End Income Statement Projected Year-End Balance Sheet Ratio Analysis

SUPPORTING DOCUMENTS
Historical Balance Sheet Sales Projections Operating Expenses Projections Capital Budget Projection

Appendix

4

JUST LIKE HOME CHILD CARE BUSINESS PLAN EXECUTIVE SUMMARY Venture History
Just Like Home Child Care is completing its second full year of operation. The center has been at full capacity (six children) based on current staffing since month four of business. We are now poised for growth as we look to better serve our existing clientele and fully utilize our child care facility.

Venture Description
Just Like Home Child Care is a licensed family child care center. Children from infancy through preschool are the current population served. Just Like Home provides a safe, fun and stimulating learning environment for children of working parents.

Venture Organization
At present, Just Like Home is a sole proprietorship owned and operated by Lois Banks. It is licensed by Window County and StateA as a family child care center. Within the next four months, all requirements will have been met to upgrade the license to a group child care license. Once this license is obtained, Just Like Home can begin implementing its expansion plans. At this point the center may incorporate.

Venture Market
We serve children from two weeks to five years old. The families we market to are either single-parent or two-income families. The parents of our children tend to be well-educated professionals making over $40,000 per household per year. A market also exists for children between ages five to thirteen in the afterschool and summer care niche. We intend to start serving this market in year three of operation.

Venture Operations
Just Like Home is open Monday through Friday from 7:30 a.m. to 6:30 p.m. The care provider is the owner Lois Banks.

5

JUST LIKE HOME CHILD CARE BUSINESS PLAN EXECUTIVE SUMMARY Venture Financing
Initial financing was provided by Lois and Jack Banks in the amount of $10,000. This investment was used to buy furniture, equipment, toys and to make some minor alterations to the facility. Growth funding is projected to come out of earnings.

6

JUST LIKE HOME CHILD CARE BUSINESS PLAN MANAGEMENT AND ORGANIZATION Management Team
Lois Banks is the owner and primary provider of Just Like Home Child Care—a family child care center. Just Like Home represents a second career for Lois after taking early retirement from the insurance industry. Lois holds an associates degree in general studies from Berkshire County College. Throughout her career and while raising her own children, Ms. Banks spent countless volunteer hours teaching toddler Sunday school and acting as a sponsor for the church youth group. Prior to opening Just Like Home, Lois attended StateA child care training and continues to attend seminars and conferences related to child care. Lois keeps her first-aid training current and is certified in CPR (cardio-pulmonary resuscitation). Three well-qualified people serve as back-up personnel if the owner is ill or needs to be away for personal reasons. Joan Hurst, Peggy Hill and the owner’s husband, Jack Banks, are all CPR certified and meet state regulations for child care workers.

Compensation and Ownership
Ms. Banks is the sole proprietor of Just Like Home Child Care. She takes an owner’s draw of $2,800 per month. The back-up personnel are compensated at $10 per hour. (Jack Banks is not compensated.) The average hourly earnings for workers in the child care industry is approximately $8 per hour.

Board of Directors / Advisory Council
While Just Like Home has no formal arrangement with an advisory council, several people are available for advice and brainstorming. The local Small Business Development Center is available for general business counsel. Lois has developed relationships with two other child care providers who attend statewide conferences each year. The threesome spends an evening together during each conference to exchange information and ideas. The state Division of Child Care Licensing also provides guidance and education.

7

JUST LIKE HOME CHILD CARE BUSINESS PLAN MANAGEMENT AND ORGANIZATION Infrastructure
The following professionals complete the Just Like Home team: Attorney Jake Bernstein Bernstein & Associates 555-555-5555 Accountant Sally Fielding CPA, Inc. 555-555-5555 Henrietta Walker Safe Hands Insurance 555-555-5555 Claude Bains State Bank 555-555-5555

Insurance

Banker

Contracts and Franchise Agreements
A copy of the service agreement each parent signs is included in the Appendix.

Insurance
Just Like Home carries disability insurance on the owner. The center also carries general liability plus supplemental coverage.

Employee Stock Option Plan and Other Incentives
Just Like Home’s current employees work occasionally on an hourly basis. With growth, the center will work to establish job-sharing and flexible hours in order to attract the desired caliber of employee.

Organization Charts
Lois Banks, the owner, is the sole full-time worker and manages the business. Growth may include 2-4 employees who will all report directly to Lois.

8

JUST LIKE HOME CHILD CARE BUSINESS PLAN PRODUCT / SERVICE Purpose of the Product / Service
Just Like Home Child Care provides a safe, fun and stimulating learning environment for children from infancy to school age. Family child care centers provide an alternative to commercial child care centers for families who want their children in a home atmosphere. The standards of service are based on education and research into the child care industry. Lois raised two children of her own and has strong feelings about the level of care and attention children need and deserve. Just Like Home has several goals for two distinct populations: Infants: The goal for infant care is safety, comfort and caring. Babies need to be held and talked to regularly in order to develop properly and feel secure. Toddlers and Preschoolers: The goal for these children is safety, fun and learning (as well as caring.) Safety is a priority. All state regulations are followed, and the environment is constantly monitored for potential hazards. Fun is inspired through one-on-one interaction with children, games, music and stories. Learning is encouraged through individual self-discovery to promote motor skill development, inter-personal skills, creativity and self-reliance.

Unique Features
All family child care providers bring their unique personality and approach to working with children and Lois Banks is no exception. Ms. Banks is in this business because of her love of children and the rewards associated with caring for them and helping them learn. Raising her own children was a joy. Participating in the lives of the center’s children is a bonus. The facility itself is unique and has proven a strong selling point with the center’s existing clientele. The Banks’ home has a finished walkout basement of almost 700 square feet. This entire area is devoted to the child care operation. Three separate rooms (plus a bathroom) allow for quiet nap areas and calm time. One of the smaller rooms is used for two infant cribs and can also accommodate a playpen for a tired toddler who is off the center’s schedule. The other small room is used for watching a special video, reading or other quiet activities. The large open area of around 400 square feet houses learning/play stations and a kitchenette and snack area. The basement center opens up to a fenced yard/play area. Safe, age-appropriate play equipment is in place. The children can enjoy good weather without having to walk to a park near busy streets. The day is structured to provide stimulus and fun while exercising small bodies and developing inquisitive minds. Music, rest time, snacks, free playtime, reading and interactive games are woven into each day. 9

JUST LIKE HOME CHILD CARE BUSINESS PLAN PRODUCT / SERVICE
Additionally, the children own pets at the center—fish and two guinea pigs. Children take turns feeding their pets and continually make up stories and draw pictures surrounding their imagined exploits. The pets help the children connect to the child care experience and look forward to returning each day—especially when they are new to the center.

Stage of Development
Just like Home is finishing its second year of operations. The business successfully completed the start-up phase and is now looking at changes for the future and planned growth.

Future Research and Development
Lois Banks continually reads child development literature to stay on top of current thought and trends. As new methods of teaching or new toys/games are developed for this age group, the center adopts them when it makes economic sense.

Trademarks, Patents, Copyrights, Licenses, Royalties
The Just Like Home logo is federally trademarked and the name has been registered with State A. There are no other proprietary assets at the current time.

Government Approvals
Just Like Home is a licensed facility of Window County, StateA. Family child care centers are highly regulated. Just Like Home is in compliance with all facilities regulations and staffing requirements of the county and StateA. Safety inspections are done on a regular basis. Smoke detectors are on each floor of the house. Emergency plans are posted for tornado, fire, accident and illness. Fire drills are conducted every three months and a tornado drill every spring. Every staff member is CPR certified. There are never more than six children in the center. No more than two of the children are under the age of 18 months, and at least two of the children are over the age of 30 months. Just Like Home is in the process of upgrading to a group child care license. This license will permit it to grow and serve more children.

Product / Service Limitations
Family child care is limited in the number of children it can accommodate. Just Like Home is specifically designed to meet the needs of infants to preschoolers only. The current facilities, toys, equipment, etc. do not yet meet the needs of older children.

10

JUST LIKE HOME CHILD CARE BUSINESS PLAN PRODUCT / SERVICE Product / Service Liability
Caring for children involves risk. Due to their active lives, children have accidents, and injuries. Child care providers also risk being accused of inappropriately handling a child while in child care. Although these risks are great, many precautions can be taken to reduce them. 1) Appropriate counsel is sought from the center’s attorney, and that counsel is heeded. 2) Insurance is used to cover general liability plus supplementary coverage for additional liability. 3) Safety standards are strictly reviewed and enforced. 4) Parents and provider communicate continually to agree on measures to take concerning care of a child. Just Like Home has several advantages over other family centers in the risk department. Lois’ husband is often home during the day working out of his home office. In the event of an emergency or disruption to the normal routine, he provides backup and a welcome second pair of hands. The on-call, back-up staff both live close by and are often available on short notice. The risk of false accusations related to inappropriate handling of children decreases with more than one adult on the premises.

Related Products/Services and Spin-Offs
After-school care is in increasing demand. As the children currently enrolled grow and go to school we will be caring for some of their younger siblings. Parents like to have their children cared for under one roof. Adding after-school care is projected for September 200C. In the following year, Just Like Home will offer summer care for the same population of children. Special music and dance classes are available in the area for ages two to five. As the center grows it may bring in these classes on a regular schedule. Several children’s museums and specialty parks (petting zoos etc.) offer interesting outing opportunities. If we can increase our preschool population and keep our infant population low, we could take advantage of more of these outings.

Production
The owner provides care.

11

JUST LIKE HOME CHILD CARE BUSINESS PLAN PRODUCT / SERVICE Facilities
The basic facility is described in the “Unique Features” section of the plan. Several other details are worth mentioning. Since the entire 700-square-foot basement area is for child care, all furniture used by the children is sized for them. Chairs and tables are small. Well-anchored footstools give toddlers access to the bathroom and kitchenette sinks. The entire area is childproof, containing nothing that poses a threat to inquisitive fingers or toes. Learning/play stations are good quality and well constructed. The “Good Eats Grill” play kitchen allows for endless make-believe menus and methods of cooking including a toddlersized charcoal grill. Our “Tool Time” area includes a large, low surface for building with blocks and working with age-appropriate toy tools. The “Artist’s Corner” has a plastic floor covering so spilled paint is not an issue. Non-toxic finger paints, clay and crayons provide plenty of inspiration for supervised artistic expression by the preschoolers. Outdoor playground equipment is safe, sturdy and regularly inspected. Just Like Home is very careful to buy well-tested, age-appropriate equipment. The preschoolers have the opportunity to climb and slide close enough to the ground to be safe on well-anchored play equipment with no sharp edges. The equipment is confined to an area of the yard that has sand several inches deep for shock absorption. Balls and various push/pull toys make up the balance of the outdoor experience.

Suppliers
Suppliers are the same as most families are using for their child care needs. The local grocery and toy store provide for most of the needs. Lois also frequents the educational materials store to find appropriate fine-motor-skill activities and art supplies. Reading materials are updated constantly.

Environmental Factors
Obviously, our main environmental concerns are safety and cleanliness. Just Like Home has complied with regulations and passed state inspections for fire and health. We have met the standards for group child care licensing for future expansion.

12

JUST LIKE HOME CHILD CARE BUSINESS PLAN MARKETING PLAN Industry Profile
Current Size Annual sales in the child care industry are estimated at $28,855 million (zapdata.com). Three years ago about 605,000 workers held wage and salary jobs in child care establishments. An additional 536,000 self-employed persons worked in the industry; most of the self-employed were family child care providers, and some were self-employed managers of child care centers (The Urban Institute). Nationwide over three-fourths of preschool children with employed mothers are regularly cared for by someone other than their parents. Nationally 48 percent of working families with children under 13 pay for child care arrangements (nonrelative care). StateA closely mirrors national statistics at 47 percent (The Urban Institute). In StateA, fully two-thirds of mothers with children under five are employed. Four out of five children under five with employed mothers are in a form of nonparental child care such as center-based care, family child care centers, or relative care. Two-fifths of children under five with employed mothers are in full-time (35 hours or more per week) nonparental care. Approximately one-seventh of StateA’s infants, toddlers and preschoolers are in family child care centers. Higher income families use family child care centers more often than lower income families (The Urban Institute). Growth Potential Many of the factors affecting society as a whole have established long-lasting trends within the child care field. These trends have created a strong need within America for child care, with no end in sight. Over the last 30 years, the proportion of children living with one parent has grown from 12 percent to 28 percent (Census Bureau’s report on Marital Status and Living Arrangements). Half of all children will witness the breakup of a parent’s marriage. Of these, close to half will also see the breakup of a parent’s second marriage (The Abolition of Marriage by Maggie Gallagher). Even among children living with both parents, the rate of two income families continues to grow. As of March 200A, six out of every 10 mothers of children under age three were in the labor force). Seven of every 10 mothers of children ages three to five, were in the labor force (U.S. Department of Labor, Women’s Bureau). These statistics represent a 7 percent increase over 10 years ago. The need for child care services is clear, and the outlook for the need remains strong. Just Like Home maintains a waiting list of nine children. Inquiries when the waiting list is at capacity are filed for future mailings when the waiting list again has room. Our facility is large enough to accommodate 12 more children (35 square feet per child is required). We intend to expand to service 12 additional children over the next two years.

13

JUST LIKE HOME CHILD CARE BUSINESS PLAN MARKETING PLAN
Geographic Locations Child care centers operate across the nation in every community. Anderville, the county seat of Window County, is thriving. The city has a population of 110,000; the county’s population is over 322,000. The county’s population has grown 14 percent in the last decade. Over 6 percent of the population is under five years old. Over 20 percent of the population are college graduates and the home ownership rate is 60 percent. The median household income is $51,286. Unemployment in the city is less than 3 percent (Anderville Chamber and U.S. Census Bureau). Population in the state is expected to grow by 12 percent over the next three decades and employment will grow by 16 percent. The rate of children under five is expected to remain fairly steady (metcast.org). Anderville has a vibrant economy, high median wage and steady growth. As home to four colleges, including the state university, it experiences a steady influx of young people who marry, have children and stay awhile. While growth in surrounding areas may be primarily in the older populations, the city will always have plenty of children needing care. Industry Trends As the target market’s needs change, the industry adapts. Centers around the country are offering round-the-clock care for children of non-traditional and traveling workers. A trend well established on the West Coast is “occasional care” for the parent whose regular arrangements have fallen through or for the parent who only needs outside caretakers on occasion. This is proving to be a large market; however, these arrangements bring scheduling and staffing challenges with them and must be well thought out before implementation. Seasonality Factors Child care is needed year-round for the infant and preschooler. Older children need care in the summertime when school is out (when we see a lot of self-care) and after school programs during the school year. Profit Characteristics According to RMA (Robert Morris Associates) data, child care centers with under $1 million in annual sales, average a profit before taxes of 6.7 percent. Distribution Channels This industry consists of establishments that provide paid care for infants, prekindergarten or preschool children, or older children in after-school programs. Formal child care centers include nursery schools, preschool centers, Head Start centers, and group child care centers. Self-employed workers in this industry provide care from their homes (family child care).

14

JUST LIKE HOME CHILD CARE BUSINESS PLAN MARKETING PLAN
Basis of Competition While price is a consideration for parents when choosing child care, the quality of care and a location accessible to the parents’ work or home are primary factors. The number-one reason parents give for switching their child’s provider is that they don’t think the provider is responding to their needs as parents. (Family Child Care Council) The hours and days of operation play a large part in the child care decision.

Competition Profile
Direct Competition: There are 16 accredited child care facilities and 101 licensed child care facilities in the city limits. These centers have anywhere from six to 70 children, ranging from newborn to after-school age. Of these centers, three are in the same general area as Just Like Home. Also, two family child care homes operate within a five-mile radius of Just Like Home. Most of these facilities have waiting lists for enrollments. The direct competition has similar hours of operation except that two offer nighttime and sick-child care. Indirect competition: It is more difficult to get a good understanding of the indirect competition in the Anderville area. It includes unlicensed child care providers, family members and friends. We can easily communicate our advantages over unlicensed child care providers; however, we do not try to convince families that we are an advantage over family, friend or parental care.

15

JUST LIKE HOME CHILD CARE BUSINESS PLAN MARKETING PLAN Competitive Analysis Grid
Child Care Centers Service Quality Child Care Fees Experienced Workers Preschool Curriculum Facilities Flexible Hours Development of Reports Clean Environment Physical Fitness Activities Other Related Services Average High No Yes Up-toDate Yes Only for Pre-K Yes Yes No Preschools Varies Moderate Yes Yes Need Upgrade No End of Year Varies Yes No Licensed Home Care Average Moderate Yes Varies Need Upgrade Somewhat No Yes No No Un-licensed Home Care Varies Low Varies No No Facilities Varies No Varies No No Just Like Home High Higher Yes Yes Up-toDate No Yes - Monthly Yes Yes Yes - after school care

16

JUST LIKE HOME CHILD CARE BUSINESS PLAN MARKETING PLAN Customer Profile
Although we concentrate on the needs of the child, the real customer is the person who pays for the services—usually the parent. A “typical” Just Like Home customer has the following characteristics: ✿ Average age from 25 – 40 years old ✿ Starting a family or have one to three children ✿ Work in a professional environment ✿ Need child care services Monday through Friday ✿ Earn $45,000 to $100,000 yearly household income ✿ Interested in the development of their children and wish to be involved in this process. All children seem to thrive in an environment where they receive one-on-one attention, learning tools and safety. However, the facility’s size and number of personnel limit the number of children who can be served by Just Like Home. We seek children who ✿ Come to Just Like Home as infants or under 18 months of age ✿ Enjoy interaction and are naturally curious ✿ Respond well to the environment of family child care.

Target Market Profile
The target market includes: ✿ Families already bringing their children who may be expanding their family ✿ Families who are expecting a baby and live or work within 10 miles ✿ Families who have an infant under 12 months old and live or work within 10 miles. ✿ Families who want full-time (35 hours) of child care each week. We accept only full-time enrollments. Part of our offering is a stable environment with children who are accustomed to one another. Full-time enrollees allow for better staffing availability and better activities planning. We offer Monday through Friday daytime service. Other, larger centers accommodate those with nighttime and weekend needs.

17

JUST LIKE HOME CHILD CARE BUSINESS PLAN MARKETING PLAN Pricing Profile
Just Like Home pricing strategy is to price slightly higher than the average family child care facility due to the uniqueness of the service. The prices will be lower than many traditional child care centers or a nanny. Age Infant (newborn to 11 months Toddlers (12-35 Months) Preschool (3-5 Years) Weekly Rate $175.00 $150.00 $125.00 Extended Hours $5.00 $5.00 $5.00

Gross Margin on Products/Services
Some centers might sell toys or charge for art supplies used or food consumed. Just Like Home includes those costs in the weekly fee charged to our families. We expense our costs under operating expenses not as cost of goods sold.

Break-Even Analysis
Full time enrollments of six children are required to compensate the owner at her desired income level and cover all expenses.

Market Penetration
Distribution Channels When Just Like Home began, enrollment was steady through contacts at Lois Banks’ church. Word of mouth is our strongest ally. Just Like Home now has an adequate number of customers and a waiting list in place. Although our strategy may be slightly different from traditional business, we feel promotion is key to our success. Our primary promotional efforts go toward retaining our existing customers—not seeking new ones. Sales Representatives/Direct-Sales Force Lois Banks is the representative of Just Like Home. Her church and community contacts keep the center fully enrolled. Direct Mail / Telemarketing We stay in contact with our existing clientele and those on our waiting list, through a monthly newsletter. It is mailed to the waiting list and hand-delivered to existing customers. We highlight the children’s activities and accomplishments for the month and pass along worthwhile information from parenting magazines and other sources.

18

JUST LIKE HOME CHILD CARE BUSINESS PLAN MARKETING PLAN Advertising and Promotion
Initially, advertising was done through church publications, but most efforts now focus on relationship building with existing clientele. That effort and reputation building in the community make up the primary promotional thrust.

Packaging and Labeling
We do not sell a traditional product with packaging, but we make sure our correspondence carries with it our lively, colorful logo and fits the image of Just Like Home. We also take care that party favors and other treats a child may take home are of good quality.

Service and Warranties
We do not offer warranties other than to guarantee a safe environment.

Trade Shows
Just like Home does not exhibit in trade shows. Franchise operations can benefit from this type of promotion, but our goals do not include that kind of growth.

Future markets
We intend to offer after-school and summer care to our existing customers as their children grow and their needs change. This service is projected to start in the fall of 200C.

19

JUST LIKE HOME CHILD CARE BUSINESS PLAN OPERATING AND CONTROL SYSTEMS Administrative Policies, Procedures and Controls
Receiving Orders Admission guidelines help to provide adequate communication between the new parents, the providers and Just Like Home. When a new family first contacts Just Like Home, they will receive an information packet that describes the philosophy of child care and the enrollment procedures. Applications are accepted from prospective clients until each age category of the waiting list has three children on it. Applicants are taken from the waiting list on a first-come firstserved basis to fill age slots. Billing the Customers Child care fees are due on the first day of each week. A late fee of $5.00 per day is charged when child care fees are not paid by the second day of the week. Paying the Suppliers All expenses are paid as expenses are incurred. Collecting the Accounts Receivable Just Like Home manages to run without receivables. Parents know we have a waiting list and our clientele can well afford our service. Reporting to Management All rules and procedures are posted for part-time help. Reports are filled out and given to Lois when employees are filling in for her. Staff Development Lois Banks attends a bi-annual statewide conference for child care centers. Part-time teenage help (over 14 years of age) for the additional after-school and summer program will take classes with the local Red Cross paid for by Just Like Home. When we expand in year 200D to six more children and an additional full-time caretaker, that employee will take state training and attend the statewide conference as well. Inventory Control There is no real inventory. Food supplies are budgeted and monitored by Lois Banks. Children do not have access to snacks without adult supervision. Handling Warranties and Returns Not applicable. Monitoring the Company Budgets Lois keeps the books on QuickBooks software. The accountant goes over the books on a quarterly basis.

20

JUST LIKE HOME CHILD CARE BUSINESS PLAN OPERATING AND CONTROL SYSTEMS
Security systems Written emergency plans are posted. Safety locks are in place on doors and outside gates. Childproof cabinet locks and electrical protectors are in place.

Documents and Paper Flow
A document and control system has been developed for Just Like Home. All procedures are either planned prior to the event or a document is completed after the event. This is a critical quality-control process that Just Like Home stresses for the following reasons: ✿ Communication with the parents is critical to the success of the business. ✿ Adherence to state regulations is necessary to keep a license. ✿ Protection of the integrity of the business’ activities may be necessary in case of a lawsuit. ✿ Proving the successful (and potentially marketable) system of child care is essential to the growth of the business. Lois keeps all the required reports and charts on a daily basis. State-required forms for incident reporting are included in the Appendix.

Planning chart
Product / Service Development Our day is scheduled so the children become accustomed to a comfortable routine and know what to expect. A detailed daily schedule is part of the Parent Handbook included in the Appendix. Details concerning center policies covering nutrition, discipline and field trips are also in the Parent Handbook. ✿ After school care to begin in the fall of 200C. ✿ Six more children and a second full time worker to be added in 200D. Summer care for the after school population will also be offered. Manufacturing Not applicable.

21

JUST LIKE HOME CHILD CARE BUSINESS PLAN OPERATING AND CONTROL SYSTEMS
Financial Requirements The older children served by after school care will need different reading materials, toys, a few larger chairs and at least one piece of outdoor equipment geared to older children. We have budgeted $800 for these items. Additional beds, mats, toys, seating will be need for the six additional preschoolers to be added in 200D. Another $600 is budgeted for this addition Marketing Flow Chart The monthly newsletter will continue. Each child’s birthday is on the center’s calendar and an appropriate celebration is planned. Holiday events (which include parents toward the end of the week) are also planned. Market Penetration Efforts to promote to new customers will include: ✿ Being visible through publications, college classes, and local organizations as the family child care expert. Contacts have been established and some guest speaking has begun. ✿ Providing a packet of information to help new parents evaluate their child care needs and find an appropriate provider. ✿ Offering quarterly open houses to potential new parents and free consultations. Management and Infrastructure Lois Banks will remain the owner and manager.

Risk Analysis
The liability issues have already been addressed in the “Product/Service Liability” section. Future business risk exists only if sweeping social change made child care obsolete. The real business risk lies in the possibility that Lois Banks could become unable to care for the children. Personal disability insurance has been purchased for this eventuality. If the facility itself were to become unusable for a time due to fire or other disaster, steps could be taken to temporarily take care of the children in an employee’s home or possibly in church facilities. Licensing issues would need to be addressed in these circumstances.

Salvaging Assets
Used tot furniture, toys, outside equipment and games, etc., make up the assets of Just Like Home. They could be sold for very little on the dollar—a better plan might be to donate them to a charity and take the tax deduction. 22

JUST LIKE HOME CHILD CARE BUSINESS PLAN GROWTH PLAN New Offerings to Market
As already stated in the plan, Just Like Home plans to offer after-school and summer care and expand to six more preschool age children in the next two years. The total population at the end of our two-year growth will be 18 children. Twelve infant to preschoolers and six school age children. Ms. Banks has plans to write articles for publication in local newspapers and trade journals. She has dreams of someday writing children’s books for the preschooler and developing interactive curricula for other child care centers.

Capital Requirements
Over the next two years, we see expenditures of $1,400 to expand our offerings. These expenditures will be expensed at the time of purchase. These additional pieces of equipment will not be carried as capital assets. After school and summer program: ✿ Used swing set ✿ Books ✿ Toys/games ✿ 4 Chairs Six more preschool children: ✿ 6 Mats ✿ Chairs & Table ✿ Toys/games $240 $200 $160 $400 $150 $100 $150

Personnel Requirements
Two to three teenagers will be hired at $6.00 per hour to assist with the after-school and summer program. These teens will essentially job share so that they can continue to participate in their own school and summer activities and still be employed. Several neighborhood teens have already expressed interest in working at Just Like Home. Full-time help will be required in 200D to accommodate six new enrollees. The existing oncall employees have expressed strong interest in sharing this position. This arrangement will provide the ideal flexibility for the employees and for Just Like Home. Through the Banks’ church, other potential back-up workers have been identified.

23

JUST LIKE HOME CHILD CARE BUSINESS PLAN GROWTH PLAN Exit Strategy
Several possibilities exist: ✿ Close the center and sell the used assets or donate them to a charity. ✿ Hire caregivers to run the center while Ms. Banks focuses on her books and curricular endeavors. ✿ Sell the business to one of the employees (problematic since the center is in the Banks’ home).

24

JUST LIKE HOME CHILD CARE BUSINESS PLAN FINANCIAL PLAN Sales Projections
Sales projections are based on the existing six enrollees for 50 weeks each year. Starting in September of 200C we project three after-school enrollees bringing sales for 200C to $47,736. In 200D these three school age children will be in our summer care program. In September of 200D we project having six children in our after-school program. Projections for 200D also include adding another full-time staff member and enrolling six more infant through preschooler age children for the entire year for sales of $103,431.

Income Projections
Projected pre-tax income for 200C is $32,833. The owner plans to take a minimum draw of $2,000 per month. This draw will increase each year. Taxes are not paid by a sole proprietorship. The estimated tax obligation for the owner is projected in the cash flow of the plan but not all of the tax deductions are accounted for here. Lois and Jack Banks take tax deductions for rent and utilities for the day care center so their accountant will determine the actual tax liability. In 200D and 200E pre-tax income increases to $54,890 and $62,849 with the center operating at capacity.

Cash Requirements
Just Like Home will require new equipment in the amount of $1,400 over the next year. Staffing costs will rise with rising enrollment. Some costs such as food will rise in proportion to enrollment, other costs will remain steady.

Sources of Financing
Earnings will provide the necessary funding for Just Like Home’s growth. In the event that enrollment lags behind hiring (which is not expected), the owner will forego her draw until the cash is again available.

25

Just Like Home Child Care Cash Flow Statement (Projected)
200C Cash In Cash Sales Collections from Accounts Receivables Equity Received Loans Received Other Cash In (receipts from other assets) Other Cash In (interest, royalties etc.) Total Cash In Total Cash Available Cash Out Inventory Expenditures Inventory/Raw Material (Cash) Inventory/Raw Material (Paid on Account) Production Expenses Operating Expenses Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Field Trips/Arts & Crafts Equipment/Toys/Books Food & Child Supplies Paid on Account Non-operating Costs Capital Purchases Estimated Income Tax Payments Interest Payments Loan Principal Payments Owner's Draw Other Cash Out Total Cash Out Monthly Cash Flow (cash in - cash out) Beginning Cash Balance Ending Cash Balance Pre Start-up JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

-

3,600

3,870 3,870 7,470

3,870 3,870 7,711

3,870 3,870 8,937

3,870 3,870 10,088

3,870 3,870 8,039

3,370 3,370 8,705

3,170 3,170 6,492

3,270 3,270 5,463

4,644 4,644 6,633

4,644 4,644 6,252

4,644 4,644 7,247

4,644 4,644 8,726

47,736 47,736 51,336

3,600 3,600

15 35 35 50 10 300 160 24 350 50 35 250 40 275 2,000 3,629 241 3,600 3,841

15 35 10 160 24 50 35 40 275 2,000 2,644 1,226 3,841 5,067

90 35 10 160 24 50 35 40 275 2,000 2,719 1,151 5,067 6,218

15 35 40 10 300 160 24 350 50 35 40 275 2,585 2,000 5,919 (2,049) 6,218 4,169

15 35 60 10 160 24 50 35 40 275 2,000 2,704 1,166 4,169 5,335

15 35 50 10 160 24 50 35 250 40 275 2,438 2,000 5,382 (2,012) 5,335 3,322

15 35 30 10 300 1,160 174 175 50 35 40 275 2,000 4,299 (1,129) 3,322 2,193

15 35 30 10 160 24 50 35 40 800 275 2,000 3,474 (204) 2,193 1,989

90 35 10 547 82 50 35 40 300 1,837 2,000 5,026 (382) 1,989 1,608

15 35 60 10 300 547 82 175 50 35 40 300 2,000 3,649 995 1,608 2,603

15 35 50 10 547 82 50 35 40 300 2,000 3,164 1,480 2,603 4,082

15 35 40 10 547 82 50 35 40 300 2,989 2,000 6,144 (1,500) 4,082 2,583

330 35 420 50 260 100 120 1,200 4,468 670 1,050 600 420 500 480 800 3,400 9,850 24,000 48,753 (1,017) 3,600 2,583

Just Like Home Child Care Cash Flow Statement (Projected)
200D Cash In Cash Sales Collections from Accounts Receivables Equity Received Loans Received Other Cash In (receipts from other assets) Other Cash In (interest, royalties etc.) Total Cash In Total Cash Available Cash Out Inventory Expenditures Inventory/Raw Material (Cash) Inventory/Raw Material (Paid on Account) Production Expenses Operating Expenses Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Field Trips/Arts & Crafts Equipment/Toys/Books Food & Child Supplies Paid on Account Non-operating Costs Capital Purchases Estimated Income Tax Payments Interest Payments Loan Principal Payments Owner's Draw Other Cash Out Total Cash Out Monthly Cash Flow (cash in - cash out) Beginning Cash Balance Ending Cash Balance JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

8,514 8,514 11,097

8,514 8,514 12,412

8,514 8,514 15,402

8,514 8,514 18,352

8,514 8,514 16,355

8,353 8,353 19,114

7,203 7,203 15,355

8,153 8,153 15,592

9,288 9,288 18,651

9,288 9,288 17,403

9,288 9,288 20,063

9,288 9,288 23,208

103,431 103,431 106,014

25 35 35 100 15 300 2,047 307 350 50 35 350 65 600 485 -

25 35 60 15 2,047 307 50 35 65 485 -

125 35 15 2,047 307 50 35 65 485 -

25 35 60 15 300 2,047 307 350 50 35 65 485 4,336 2,400 10,511 (1,997) 9,838 7,841

25 35 130 15 2,047 307 50 35 65 485 -

25 35 60 100 15 2,714 407 50 35 350 65 485 4,222 2,400 10,963 (2,610) 10,761 8,152

25 35 60 15 300 3,714 557 175 50 35 65 485 -

25 35 60 15 2,660 399 50 35 65 485 -

125 35 60 15 3,648 547 50 35 65 485 3,070 2,400 10,535 (1,247) 9,363 8,115

25 35 60 15 300 2,594 389 175 50 35 65 485 2,400 6,628 2,660 8,115 10,775

25 35 50 15 2,594 389 50 35 65 485 2,400 6,143 3,145 10,775 13,920

25 35 70 15 2,594 389 50 35 65 485 4,839 2,400 11,002 (1,714) 13,920 12,206

500 35 420 50 620 200 180 1,200 30,753 4,613 1,050 600 420 700 780 600 5,820 16,467 28,800 93,808 9,623 2,583 12,206

2,400 7,199 1,315 2,583 3,898

2,400 5,524 2,990 3,898 6,888

2,400 5,564 2,950 6,888 9,838

2,400 5,594 2,920 7,841 10,761

2,400 7,916 (713) 8,152 7,439

2,400 6,229 1,924 7,439 9,363

Just Like Home Child Care Cash Flow Statement (Projected)
200E Cash In Cash Sales Collections from Accounts Receivables Equity Received Loans Received Other Cash In (receipts from other assets) Other Cash In (interest, royalties etc.) Total Cash In Total Cash Available Cash Out Inventory Expenditures Inventory/Raw Material (Cash) Inventory/Raw Material (Paid on Account) Production Expenses Operating Expenses Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Field Trips/Arts & Crafts Equipment/Toys/Books Food & Child Supplies Paid on Account Non-operating Costs Capital Purchases Estimated Income Tax Payments Interest Payments Loan Principal Payments Owner's Draw Other Cash Out Total Cash Out Monthly Cash Flow (cash in - cash out) Beginning Cash Balance Ending Cash Balance JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

9,288 9,288 21,494

9,288 9,288 23,183

9,288 9,288 26,547

9,288 9,288 29,871

9,288 9,288 27,552

9,966 9,966 31,524

8,066 8,066 27,279

9,766 9,766 28,729

9,288 9,288 31,388

9,288 9,288 28,998

9,288 9,288 31,257

9,288 9,288 34,002

111,390 111,390 123,596

25 35 35 100 15 300 2,047 307 350 50 35 350 65 600 485 -

25 35 60 15 2,047 307 50 35 65 485 -

125 35 15 2,047 307 50 35 65 485 -

25 35 60 15 300 2,047 307 350 50 35 65 485 5,033 2,800 11,607 (2,319) 20,583 18,264

25 35 130 15 2,047 307 50 35 65 485 -

25 35 60 100 15 2,714 407 50 35 350 65 485 5,170 2,800 12,311 (2,345) 21,558 19,213

25 35 60 15 300 3,714 557 175 50 35 65 485 -

25 35 60 15 2,660 399 50 35 65 485 -

125 35 60 15 3,648 547 50 35 65 485 3,813 2,800 11,678 (2,390) 22,100 19,710

25 35 60 15 300 2,594 389 175 50 35 65 485 2,800 7,028 2,260 19,710 21,969

25 35 50 15 2,594 389 50 35 65 485 2,800 6,543 2,745 21,969 24,714

25 35 70 15 2,594 389 50 35 65 485 4,839 2,800 11,402 (2,114) 24,714 22,600

500 35 420 50 620 200 180 1,200 30,753 4,613 1,050 600 420 700 780 600 5,820 18,855 33,600 100,996 10,394 12,206 22,600

2,800 7,599 1,689 12,206 13,895

2,800 5,924 3,364 13,895 17,259

2,800 5,964 3,324 17,259 20,583

2,800 5,994 3,294 18,264 21,558

2,800 8,316 (250) 19,213 18,963

2,800 6,629 3,137 18,963 22,100

Just Like Home Child Care Year-End Income Statement (Projected)
Net Sales (less returns & allowances) Cost of Goods Sold Gross Income Operating Expenses Advertising Bad Debt Expense Bank Charges Depreciation & Amortization Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Field Trips/Arts & Crafts Equipment/Toys/Books Food & Child Supplies Total Operating Expenses Operating Income Interest Expense Other Income (interest, royalties, etc.) Income Before Taxes Income Taxes (if C Corp) Net Income $ $ 200C 47,736 47,736 200D 103,431 103,431 200E 111,390 111,390

$

$

$

330 35 420 50 260 100 120 1,200 4,468 670 1,050 600 420 500 480 800 3,400 14,903 32,833 32,833 32,833 $ $

500 35 420 50 620 200 180 1,200 30,753 4,613 1,050 600 420 700 780 600 5,820 48,541 54,890 54,890 54,890 $ $

500 35 420 50 620 200 180 1,200 30,753 4,613 1,050 600 420 700 780 600 5,820 48,541 62,849 62,849 62,849

$ $

$ $

$ $

Just Like Home Child Care Year-End Balance Sheet (Projected)
200C Assets Current Assets Cash & Equivalents Accounts Receivable Inventory Security Deposits Other Current Assets Total Current Assets Fixed Assets Property, Plant & Equipment Less: Accumulated Depreciation Other Non-Current Assets Total Non-Current Assets Total Assets
2,583 2,583 12,206 12,206 22,600 22,600

200D

200E

$

$

$

$ $

2,583

$ $

12,206

$ $

22,600

Liabilities Current Liabilities Accounts Payable Line of Credit Other Current Liabilities Total Current Liabilities Long-term Liabilities Loans Mortgages Other Non-Current Liabilities Total Non-Current Liabilities Total Liabilities

$

-

$

-

$

-

$ $

-

$ $

-

$ $

-

Equity Equity Investments Retained Earnings Less: Owner's & Investor's Draws Total Equity
10,000 26,433 (33,850) 2,583 10,000 81,323 (79,117) 12,206 10,000 144,172 (131,572) 22,600

$

$

$

Total Liabilities and Equity

$

2,583

$

12,206

$

22,600

Just Like Home Child Care Financial Ratios
200C Profitability Ratios Gross Margin Gross Income Net Sales Operating Income Net Sales Net Income Net Sales Net Income Total Assets Net Income Total Equity 100.00% 100.00% 100.00% 200D 200E

Operating Margin

68.78%

53.07%

56.42%

Net Margin

68.78%

53.07%

56.42%

Return on Assets (ROA)

1271.13%

449.70%

278.09%

Return on Equity (ROE)

1271.13%

449.70%

278.09%

Liquidity Ratios Current Ratio Total Current Assets Total Current Liabilities Current Assets - Inventory Current Liabilities #DIV/0! #DIV/0! #DIV/0!

Quick Ratio

#DIV/0!

#DIV/0!

#DIV/0!

Risk Ratios Debt Ratio Total Liabilities Total Assets Total Liabilities Total Equity 0.00 0.00 0.00

Debt to Equity

0.00

0.00

0.00

Efficiency Ratios Inventory Turnover Cost of Goods Sold Inventory Accounts Receivable Net Sales/365 Net Sales Total Assets #DIV/0! #DIV/0! #DIV/0!

Days Sales Outstanding (DSO)

0.00

0.00

0.00

Investment Turnover Ratio

18.48

8.47

4.93

Just Like Home Child Care SUPPORTING DOCUMENTS

26

HISTORICAL BALANCE SHEET Just Like Home Child Care 12/31/200B Assets Current Assets Cash & Equivalents Accounts Receivable Inventory Security Deposits Other Current Assets Total Current Assets Fixed Assets Property, Plant & Equipment Computer Equipment Equipment/Machinery Furniture & Fixtures Vehicles Leasehold Improvements Building Land Less: Accumulated Depreciation (Do not enter a negative number) Other Non-current Assets Total Non-current Assets

$

3,600 3,600

$

-

Total Assets

$

3,600

Liabilities Current Liabilities Accounts Payable Line of Credit Other Current Liabilities Total Current Liabilities Long-term Liabilities Loans Real Estate Loans Other Non-current Liabilities Total Long-term Liabilities Total Liabilities

$

-

$ $

-

Equity Owners Equity Retained Earnings (Enter a negative number for a loss) Less: Owner's & Investor's Draws (Not for use by C Corporations) Total Equity
$ 10,000 (6,400) 3,600

Total Liabilities and Equity

$

3,600

Appendix

SALES PROJECTIONS Just Like Home Child Care Year 1 Sales Budget Infants Toddlers Preschoolers After-school care Product/Service Category E Product/Service Category F Product/Service Category G Gross Sales Less: Returns & Allowances Net Sales Other Income Total Income Credit Management Sales (cash) Sales (credit) Received on Account Bad Debt Expense JAN 1,505 1,290 1,075 3,870 3,870 3,870 3,870 FEB 1,505 1,290 1,075 3,870 3,870 3,870 3,870 MAR 1,505 1,290 1,075 3,870 3,870 3,870 3,870 APR 1,505 1,290 1,075 3,870 3,870 3,870 3,870 MAY 1,505 1,290 1,075 3,870 3,870 3,870 3,870 JUN 1,505 1,290 575 3,370 3,370 3,370 3,370 JUL 805 1,290 1,075 3,170 3,170 3,170 3,170 AUG 1,505 690 1,075 3,270 3,270 3,270 3,270 SEP 1,505 1,290 1,075 774 4,644 4,644 4,644 4,644 OCT 1,505 1,290 1,075 774 4,644 4,644 4,644 4,644 NOV 1,505 1,290 1,075 774 4,644 4,644 4,644 4,644 DEC 1,505 1,290 1,075 774 4,644 4,644 4,644 4,644 TOTAL 17,360 14,880 12,400 3,096 47,736 47,736 47,736 47,736 -

Year 1 Assumptions Infants Toddlers Preschoolers After-school care Product/Service Category E Product/Service Category F Product/Service Category G Less: Returns & Allowances Other Income Sales (cash) Sales (credit) Received on Account Bad Debt Expense

Two infants at $175 per week less two weeks for family vacations. Two toddlers at $150 per week less two weeks for family vacations. Two preschoolers at $125 per week less two weeks for family vacations. Starting in September, After-school care--3 children at $4.00 per hour for 3 hours daily. This number will grow to six by mid next year.

Appendix

SALES PROJECTIONS Just Like Home Child Care

Year 2 Sales Budget Infants Toddlers Preschoolers After-school care Product/Service Category E Product/Service Category F Product/Service Category G Gross Sales Less: Returns & Allowances Net Sales Other Income Total Income Credit Management Sales (cash) Sales (credit) Received on Account Bad Debt Expense

JAN 3,010 2,580 2,150 774 8,514 8,514 8,514 8,514 -

FEB 3,010 2,580 2,150 774 8,514 8,514 8,514 8,514 -

MAR 3,010 2,580 2,150 774 8,514 8,514 8,514 8,514 -

APR 3,010 2,580 2,150 774 8,514 8,514 8,514 8,514 -

MAY 3,010 2,580 2,150 774 8,514 8,514 8,514 8,514 -

JUN 3,010 2,580 1,150 1,613 8,353 8,353 8,353 8,353 -

JUL 1,610 2,580 2,150 863 7,203 7,203 7,203 7,203 -

AUG 3,010 1,380 2,150 1,613 8,153 8,153 8,153 8,153 -

SEP 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

OCT 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

NOV 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

DEC 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

TOTAL 34,720 29,760 24,800 14,151 103,431 103,431 103,431 103,431 -

Year 2 Assumptions Infants Toddlers Preschoolers After-school care Product/Service Category E Product/Service Category F Product/Service Category G Less: Returns & Allowances Other Income Sales (cash) Sales (credit) Received on Account Bad Debt Expense

Four infants at $175 per week less two weeks for family vacations. Four toddlers at $150 per week less two weeks for family vacations. Four preschoolers at $125 per week less two weeks for family vacations. Three children at $4.00 per hour for 3 hours daily. Summer care for three school-aged children. In September, six children at $4.00 per hour for 3 hours daily.

Appendix

SALES PROJECTIONS Just Like Home Child Care

Year 3 Sales Budget Infants Toddlers Preschoolers After-school care Product/Service Category E Product/Service Category F Product/Service Category G Gross Sales Less: Returns & Allowances Net Sales Other Income Total Income Credit Management Sales (cash) Sales (credit) Received on Account Bad Debt Expense

JAN 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

FEB 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

MAR 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

APR 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

MAY 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

JUN 3,010 2,580 1,150 3,226 9,966 9,966 9,966 9,966 -

JUL 1,610 2,580 2,150 1,726 8,066 8,066 8,066 8,066 -

AUG 3,010 1,380 2,150 3,226 9,766 9,766 9,766 9,766 -

SEP 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

OCT 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

NOV 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

DEC 3,010 2,580 2,150 1,548 9,288 9,288 9,288 9,288 -

TOTAL 34,720 29,760 24,800 22,110 111,390 111,390 111,390 111,390 -

Year 3 Assumptions Infants Toddlers Preschoolers After-school care Product/Service Category E Product/Service Category F Product/Service Category G Less: Returns & Allowances Other Income Sales (cash) Sales (credit) Received on Account Bad Debt Expense

Four infants at $175 per week less two weeks for family vacations. Four toddlers at $150 per week less two weeks for family vacations. Four preschoolers at $125 per week less two weeks for family vacations. Six children at $4.00 per hour for 3 hours daily. Summer care for six school-aged children.

Appendix

OPERATING EXPENSE PROJECTIONS Just Like Home Child Care Year 1 Operating Expenses Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense (postage) Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Field Trips/Arts & Crafts Equipment/Toys/Books Food & Child Supplies Total Operating Expenses Assumptions - Year 1 Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense (postage) Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Field Trips/Arts & Crafts Equipment/Toys/Books Food & Child Supplies JAN
15 35 35 50 10 300 160 24 350 50 35 250 40 275 1,629

FEB
15 35 10 160 24 50 35 40 275 644

MAR
90 35 10 160 24 50 35 40 275 719

APR
15 35 40 10 300 160 24 350 50 35 40 275 1,334

MAY
15 35 60 10 160 24 50 35 40 275 704

JUN
15 35 50 10 160 24 50 35 250 40 275 944

JUL
15 35 30 10 300 1,160 174 175 50 35 40 275 2,299

AUG
15 35 30 10 160 24 50 35 40 800 275 1,474

SEP
90 35 10 547 82 50 35 40 300 1,189

OCT
15 35 60 10 300 547 82 175 50 35 40 300 1,649

NOV
15 35 50 10 547 82 50 35 40 300 1,164

DEC
15 35 40 10 547 82 50 35 40 300 1,154

TOTAL
330 35 420 50 260 100 120 1,200 4,468 670 1,050 600 420 500 480 800 3,400 14,903

Newsletter cost per month plus $75 in March and September to update information packet. Subscription to Parenting Magazine. Premiums to cover liability and owner disability. Yearly licensing fee paid in November. Easter and Christmas parties at $40 each. Six birthday parties at $30 each. Meals during state-wide conferences. Newsletter and communications with clientele and prospects. Average quarterly order from Office Supplier. avg cost of employees for owner sick days & time off, coverage for owner vacation, in September--teenage assistant at $6.00 per hour for 3 hrs/day. estimated at 15% no benefits Accounting fees at $175 per quarter--$350 in April for taxes. Contingency of $175 built in if needed for attorney. Do not pay--take a tax decuction personally based on square footage. Cost of separate phone line. Cost for gas and accomodations for statewide conference. Do not pay--take a tax decuction personally based on square footage. Average cost for field trips and crafts supplies. Swingset, books and games for after-school program. Average food cost for snacks and meals plus cost of diapers, first aid and other disposable items Appendix

OPERATING EXPENSE PROJECTIONS Just Like Home Child Care Year 2 Operating Expenses Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense (postage) Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Field Trips/Arts & Crafts Equipment/Toys/Books Food & Child Supplies Total Operating Expenses Assumptions - Year 2 Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense (postage) Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Field Trips/Arts & Crafts Equipment/Toys/Books Food & Child Supplies JAN
25 35 35 100 15 300 2,047 307 350 50 35 350 65 600 485 4,799

FEB
25 35 60 15 2,047 307 50 35 65 485 3,124

MAR
125 35 15 2,047 307 50 35 65 485 3,164

APR
25 35 60 15 300 2,047 307 350 50 35 65 485 3,774

MAY
25 35 130 15 2,047 307 50 35 65 485 3,194

JUN
25 35 60 100 15 2,714 407 50 35 350 65 485 4,341

JUL
25 35 60 15 300 3,714 557 175 50 35 65 485 5,516

AUG
25 35 60 15 2,660 399 50 35 65 485 3,829

SEP
125 35 60 15 3,648 547 50 35 65 485 5,065

OCT
25 35 60 15 300 2,594 389 175 50 35 65 485 4,228

NOV
25 35 50 15 2,594 389 50 35 65 485 3,743

DEC
25 35 70 15 2,594 389 50 35 65 485 3,763

TOTAL
500 35 420 50 620 200 180 1,200 30,753 4,613 1,050 600 420 700 780 600 5,820 48,541

Newsletter cost per month plus $100 in March and September to update information packet. Subscription to Parenting Magazine. Premiums to cover liability and owner disability. Yearly licensing fee paid in November. Easter and Christmas parties at $40 each. Eighteen birthday parties at $30 each. Meals during state-wide conferences. Newsletter and communications with clientele and prospects. Average quarterly order from Office Supplier. add full-time employee in January, hourly help to cover owner vacation and days off, increased teenage summer and after-school help. estimated at 15% no benefits Accounting fees at $175 per quarter--$350 in April for taxes. Contingency of $175 built in if needed for attorney. Do not pay--take a tax decuction personally based on square footage. Cost of separate phone line. Cost for gas and accomodations for statewide conference. Do not pay--take a tax decuction personally based on square footage. Average cost for field trips and crafts supplies. Mats, chairs and table, toys and games for six additional children. Average food cost for snacks and meals plus cost of diapers, first aid and other disposable items Appendix

OPERATING EXPENSE PROJECTIONS Just Like Home Child Care Year 3 Operating Expenses Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense (postage) Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Field Trips/Arts & Crafts Equipment/Toys/Books Food & Child Supplies Total Operating Expenses Assumptions - Year 3 Advertising Bank Charges Dues & Subscriptions Insurance Licenses & Fees Marketing & Promotion Meals & Entertainment Miscellaneous Office Expense (postage) Office Supplies Outside Services Payroll Expenses Salaries & Wages Payroll Taxes Benefits Professional Fees Property Taxes Rent Repairs & Maintenance Shipping & Delivery Telephone Training & Development Travel Utilities Vehicle Field Trips/Arts & Crafts Equipment/Toys/Books Food & Child Supplies JAN
25 35 35 100 15 300 2,047 307 350 50 35 350 65 600 485 4,799

FEB
25 35 60 15 2,047 307 50 35 65 485 3,124

MAR
125 35 15 2,047 307 50 35 65 485 3,164

APR
25 35 60 15 300 2,047 307 350 50 35 65 485 3,774

MAY
25 35 130 15 2,047 307 50 35 65 485 3,194

JUN
25 35 60 100 15 2,714 407 50 35 350 65 485 4,341

JUL
25 35 60 15 300 3,714 557 175 50 35 65 485 5,516

AUG
25 35 60 15 2,660 399 50 35 65 485 3,829

SEP
125 35 60 15 3,648 547 50 35 65 485 5,065

OCT
25 35 60 15 300 2,594 389 175 50 35 65 485 4,228

NOV
25 35 50 15 2,594 389 50 35 65 485 3,743

DEC
25 35 70 15 2,594 389 50 35 65 485 3,763

TOTAL
500 35 420 50 620 200 180 1,200 30,753 4,613 1,050 600 420 700 780 600 5,820 48,541

Newsletter cost per month plus $100 in March and September to update information packet. Subscription to Parenting Magazine. Premiums to cover liability and owner disability. Yearly licensing fee paid in November. Easter and Christmas parties at $40 each. Eighteen birthday parties at $30 each. Meals during state-wide conferences. Newsletter and communications with clientele and prospects. Average quarterly order from Office Supplier. add full-time employee in January, hourly help to cover owner vacation and days off, increased teenage summer and after-school help. estimated at 15% no benefits Accounting fees at $175 per quarter--$350 in April for taxes. Contingency of $175 built in if needed for attorney. Do not pay--take a tax decuction personally based on square footage. Cost of separate phone line. Cost for gas and accomodations for statewide conference. Do not pay--take a tax decuction personally based on square footage. Average cost for field trips and crafts supplies. Mats, chairs and table, toys and games for six additional children. Average food cost for snacks and meals plus cost of diapers, first aid and other disposable items Appendix

CAPITAL BUDGET PROJECTIONS Just Like Home Child Care Year 1 Capital Budget Owner's Draw Investor's Draw Dividends Paid Security Deposits Amortization Depreciation (existing assets) Capital Asset Purchases Depreciation (new purchases) Land Assumptions - Year 1 Owner's Draw Investor's Draw Dividends Paid Security Deposits Amortization Equipment Equipment Depreciation Furniture Furniture Depreciation Leasehold Improvements Leasehold Depreciation Vehicles Vehicle Depreciation Building Building Depreciation Land JAN 2,000 FEB 2,000 MAR 2,000 APR 2,000 MAY 2,000 JUN 2,000 JUL 2,000 AUG 2,000 SEP 2,000 OCT 2,000 NOV DEC TOTAL 24,000 -

2,000 2,000 Year 1 Total Depreciation

Appendix

CAPITAL BUDGET PROJECTIONS Year 2 Capital Budget Owner's Draw Investor's Draw Dividends Paid Security Deposits Amortization Depreciation (existing assets) Capital Asset Purchases Depreciation (new purchases) Land Assumptions - Year 2 Owner's Draw Investor's Draw Dividends Paid Security Deposits Amortization Equipment Equipment Depreciation Furniture Furniture Depreciation Leasehold Improvements Leasehold Depreciation Vehicles Vehicle Depreciation Building Building Depreciation Land JAN 2,400 FEB 2,400 MAR 2,400 APR 2,400 MAY 2,400 JUN 2,400 JUL 2,400 AUG 2,400 SEP 2,400 OCT 2,400 NOV DEC TOTAL 28,800 -

2,400 2,400 Year 2 Total Depreciation

Appendix

CAPITAL BUDGET PROJECTIONS Year 3 Capital Budget Owner's Draw Investor's Draw Dividends Paid Security Deposits Amortization Depreciation (existing assets) Capital Asset Purchases Depreciation (new purchases) Land Assumptions - Year 3 Owner's Draw Investor's Draw Dividends Paid Security Deposits Amortization Equipment Equipment Depreciation Furniture Furniture Depreciation Leasehold Improvements Leasehold Depreciation Vehicles Vehicle Depreciation Building Building Depreciation Land JAN 2,800 FEB 2,800 MAR 2,800 APR 2,800 MAY 2,800 JUN 2,800 JUL 2,800 AUG 2,800 SEP 2,800 OCT 2,800 NOV DEC TOTAL 33,600 -

2,800 2,800 Year 3 Total Depreciation

Appendix

Sign up to vote on this title
UsefulNot useful