Boys and Girls Club of Dane County

Sun Prairie Youth Center

Business Plan

5/15/2018
TABLE OF CONTENTS

Executive Summary .....................................................................................................................................................3

Our Organization .......................................................................................................................................................3
BGCDC’s Mission ....................................................................................................................................................3
BGCDC’s Vision ......................................................................................................................................................3
Programs and Services ..............................................................................................................................................3
Marketing Strategy ....................................................................................................................................................4
Target Market ............................................................................................................................................................4
Market Competition ..................................................................................................................................................4
Management ..............................................................................................................................................................4
Operations .................................................................................................................................................................5
Stage of Development ...............................................................................................................................................5
Financials ..................................................................................................................................................................5
Funds Sought and Utilization ....................................................................................................................................6
Company Description ..................................................................................................................................................7
Company Name .........................................................................................................................................................7
Mission Statement .....................................................................................................................................................7
Vision Statement .......................................................................................................................................................7
Form of Business.......................................................................................................................................................7
Programs and Services ..............................................................................................................................................7
Management/Leadership .........................................................................................................................................10
Location and Geographical Information .................................................................................................................11
The Target Market ....................................................................................................................................................12
Demographics/Geographics ....................................................................................................................................12
Lifestyle and Psychographics ..................................................................................................................................16
Member Financial Sensitivities ...............................................................................................................................16
Market Size and Trends...........................................................................................................................................17
The Competition......................................................................................................................................................17
Strategic Position and Legal Risk Assessment ........................................................................................................17
SWOT ANALYSIS .................................................................................................................................................17
Legal Risk Assessment............................................................................................................................................19
Marketing Plan and Sales Strategy ..........................................................................................................................20

1
 Company’s Message ...............................................................................................................................................20
Marketing Strategy ..................................................................................................................................................21
Strategic Partnerships ..............................................................................................................................................21
Operations ..................................................................................................................................................................21
Building and Facilities ............................................................................................................................................21
Labor Requirements ................................................................................................................................................22
Compensation and Incentives ..................................................................................................................................22
Equipment, Furniture, and office furnishings ..........................................................................................................22
Financial Control .....................................................................................................................................................22
Contingency Planning .............................................................................................................................................23
Programmatic Plan ....................................................................................................................................................23
Programmatic Goals and Position ...........................................................................................................................23
Financials....................................................................................................................................................................24
Revenue Forecast ....................................................................................................................................................24
Operating Expenses .................................................................................................................................................26
Net Profit .................................................................................................................................................................27
Financing .................................................................................................................................................................29

2
 EXECUTIVE SUMMARY

OUR ORGANIZATION

The Boys & Girls Club of Dane County (BGCDC) provides programs that promote personal
growth and self-sufficiency among disadvantaged youth. BGCDC is unique in its field in Dane
County, offering a year-round combination of afterschool, weekend and summer programs in
partnership with local organizations, including four school districts. BGCDC’s programs are
grounded in Formula for Impact, a research-based theory of change that describes how to impact
the live of member, particularly those most in need.

BGCDC’S MISSION

Boys & Girls Club of Dane County will be the leader in youth development programs by
developing partnerships to produce positive outcomes for young people, families, and
communities.

BGCDC’S VISION

The Boys & Girls Club of Dane County will inspire and empower all young people, especially
those who need us the most, to reach their full potential as productive, responsible, and caring
adults.

PROGRAMS AND SERVICES

The Boys & Girls Club of Dane County will offer a variety of programs and services for the
people of Sun Prairie. The initial focus will be on providing childcare to children from birth to
four years old from 6:30 a.m. to 6:30 p.m., Monday through Friday. The BGCDC also provides
youth activities immediately after school. Participants are bussed from their schools directly to
our activity center to take part in games, reading, snacks, and other activities. The development
of a Teen Center in an adjoining building will eventually open up opportunities for youth from
14-18 to be involved in afterschool events. During the summers our youth centers offer full-day
participation while on summer vacation, enjoying activities which help keep children active and
engaged, encouraging developing relationships with staff and other attendees, as well as
providing healthy meals and fun activities.

3
MARKETING STRATEGY

The Boys & Girls Club of Dane County will engage in focused marketing in conjunction with
the City of Sun Prairie, the Sun Prairie School District, participating school programs,
neighborhood mailings, and word-of-mouth outreach. We will reach out to a very focused
demographic of parents of pre-school and school age children who are in need of quality licensed
childcare and youth activities.

TARGET MARKET

Our target market is middle to lower socio-economic class mothers and fathers between the ages
of 18 and 45 who have children, are most likely employed in full-time positions during the day
and may not have family members living in the area. This market lives within a three-mile
radius of the center. They are men and women who value safe and quality childhood
development centers, but whose level of income demands judicious use of their income. They
may be the parents, grandparents, or legal guardians of the participants.

MARKET COMPETITION

The Boys & Girls Club of Dane County is well-poised to enter into the Sun Prairie daycare
market. Currently there are around 20 licensed daycare centers in the Sun Prairie area, but many
are not enrolled in Subsidized Childcare programs and demand significant enrollment fees,
pricing them out of the budget of many young families in the area. Sun Prairie is one of the
fastest growing communities in the state, and there is still a growing demand for childcare,
particularly affordable care for children from birth to Pre-K. The demand for affordable
childcare services is so high the City of Sun Prairie director of Economic Development has
reached out to the BGCDC to open this center for childcare services.

MANAGEMENT

The management of the BGCDC site in Sun Prairie will include several officers who will
oversee program management, fundraising, and human resources. Rod Mitchell is currently the
COO and acting CEO and will have oversight of the development of this project and site.
Tommy Walls is Senior Director of Programs/Club Director and will give guidance in the
development of the programming at the Sun Prairie location. The BGCDC Vice President of
Finance, Kelly Kleven, is coordinating the projection of startup expenses, operating expenses,
program revenues, net cost of purchase, and operating surpluses. Assisting in the development
4
of this proposal and ongoing direction is Janine Stephens, VP of Marketing & Special
Events/Chief Development Officer, Laisha Rowell, Human Resources Officer, and Rob
Westerlund, who is coordinating documentation of this business plan.

OPERATIONS

Once the property at 232 Windsor Street, Sun Prairie is acquired there will be many steps to
preparing it for operations. Prior to closing on the property, there will be an assessment of the
property for proper placement of pre-school classes. Development of programs, staff, and
equipment and supplies will be carried out by organizational officers and staff. Curriculum,
marketing, enrollment, building management, community relations, and door-opening will be
carefully planned and executed. After this the site will focus on childcare for pre-school
children, afterschool activities for school-age children, and the development of the Teen Center
which will be created in the adjacent building to the main church building, which was formerly
the parsonage of the church.

STAGE OF DEVELOPMENT

This BGCDC project is in the initial stages of development of this site. The BGCDC has many
other sites carrying out similar programming, providing years of experience in running a club
site and experience in the financial management of this nature of operation. The BGCDC has
been operating youth activities in the Dane County area for more than 18 years and has enjoyed
almost two decades of successful and empowering programming at our youth centers and in
public schools.

FINANCIALS

Our financial plan outlines the first-year forecast covering upfront financing needs, revenue and
cost projections. Based on our initial ramp up to full capacity we project first year registration to
draw over one million dollars in cash flow while expenditures are approximately half a million
dollars.

This equates to approximately $1,000,000 in revenue in our first year of operation, growing to
over $1,200,000 by 2020. Due to the fact that there is currently a daycare operating in the
facility, the operation would be turn-key, requiring a minimal amount of funds to prepare it for
our programming, contributing to a low start-up cost. We project the revenue of the Sun Prairie

5
site to exceed its expenses in the first year of operation by nearly 100%. In the Financials section
we breakdown the costs of purchase and start-up and of our center.

FUNDS SOUGHT AND UTILIZATION

To get this BGCDC center off the ground we will be making an offer for the property in the near
future of approximately $1,140,000. This purchase will require a combination of fundraising,
grant funding, and upfront loan acquisition to cover the purchase price and closing costs.

6
 COMPANY DESCRIPTION

COMPANY NAME

The Boys & Girls Club of Dane County (BGCDC) offers a year-round combination of
afterschool, weekend and summer programs in partnership with local organizations, including
four school districts. The name of the new site is to be determined but will be referred to in this
plan as the Sun Prairie Youth Center (SPYC).

MISSION STATEMENT

Boys & Girls Club of Dane County will be the leader in youth development programs by
developing partnerships to produce positive outcomes for young people, families, and
communities.

VISION STATEMENT

The Boys & Girls Club of Dane County will inspire and empower all young people, especially
those who need us the most, to reach their full potential as productive, responsible, and caring
adults.

FORM OF BUSINESS

The BGCDC was formed in 1999 as a non-profit organization, a 501(c) in order to provide
services to boys and girls in Dane County relying on grants, gifts, and fundraising to provide
funding for our programming

PROGRAMS AND SERVICES

The BGCDC provides programs which promote personal growth and self-sufficiency among
disadvantaged youth. BGCDC is unique in its field in Dane County, offering a year-round
combination of afterschool, weekend and summer programs in partnership with local
organizations, including four school districts. BGCDC’s programs are grounded in Formula for
Impact, a research-based theory of change that describes how to impact the live of members,
particularly those most in need by using five key elements:

1) A safe, positive environment: Supports academic success, good character, and a healthy
lifestyle.

7
2) Fun and challenging activities: test members skills and push beyond behavioral barriers.

3) Supportive relationships: Provide opportunities for family and interpersonal bonding.

4) Clear expectations: In terms of academic success, leadership skills, health and lifestyle
behaviors.

5) Recognition and acknowledgement: Staff support members’ self-worth and accomplishments.

TOPS

The Boys & Girls Club TOPS College Success program (TCSP) which serves first generation,
low-income graduates from the Teens of Promise (TOPS) program (a partnership between
BGCDC and MMSD) is seeking to support its female TOPS Scholars enrolled at Madison
College with career and leadership development particularly targeting exposure to non-
traditional occupations (NTO).

COLLEGE READY SCHOLARS (CRS)

Economically disadvantaged students, many of whom are students of color, face serious
challenges and must have social and emotional support to be successful in school and in the
future. Some students are known to be living with homelessness, domestic abuse and family
instability. Additionally, many economically disadvantaged youth and youth of color are limited
in access to college and success due to scoring below college-ready benchmarks on standardized
tests in Math and/or English. Without access to skilled and trusted Professionals in schools to
help with problem solving and strategies to overcome obstacles, many of these students will
continue to falter academically.

For these reasons, BGCDC established a partnership (College Ready Scholars) to meet the
academic, emotional and social needs of students to move them forward toward college readiness
and success. During the last five years of the greater College Ready Scholars (CRS) program,
more than 500 high school students have been served. Of the participating students, 92% were
eligible for free or reduced lunch, 96% students were of color, and 7% were English Language
Learners.

CRS was designed to improve college preparedness and to diminish the need for disadvantaged,
first generation, or low-income students to be placed in non-credit, developmental math and
English classes once they enroll in college. Currently, CRS students, 74% of whom are from
8
low-income households and 82% are students of color, receive specialized instruction in math
and English to improve and enhance their academic proficiency while also preparing them for
the rigors of college-level coursework. Additionally, CRS staff models how to set college-going
goals, how to navigate the college application and entry process (offering assistance in filling out
applications), and how to balance social and emotional needs in college.

By addressing the needs of underserved and low-income students and students of color, CRS
aims to close the achievement gap that exists between advantaged and disadvantaged students.
The program also meets the goals of Verona Area School District’s school improvement plan
and the school’s strategy to reduce the opportunity and academic achievement gap among
underachieving students of color.

COLLEGE CLUB

College Club is a college prep program that is built on a foundation of academic tutoring,
monitoring, and case management. Focusing on topics like goal setting, college entry,
understanding financial aid, career development, and life skills, College Club creates a safe space
where students can feel validated and recognized as individuals with unique life experiences.
Education Coordinators work with each student to set academic and personal goals to work
toward throughout their time in College Club and beyond. They also connect students’ families
to community resources in the hopes of removing any social and/or economic barriers interfering
with a student’s education. For their active engagement and progress, College Club members are
rewarded with prizes, field trips, and service-learning projects.

The purpose of College Club is to identify and assist students struggling with their grades, school
attendance, and behavior. We wrap them in support services including tutoring, case
management, family outreach, summer enrichment, summer reading instruction, and college
preparation activities.

PROGRAMMING AT THE CENTERS – GENERAL

The Center’s approach to improving health focuses on achieving tangible results and thus
encouraging development of life-long healthy habits. Knowledge-based activities emphasize the
connection between diet and health and exercise and health. These encourage community
members to learn how to prevent and/or manage hypertension and diabetes for themselves and
their loved ones. Fun fitness activities and meal preparation promote movement and healthy
9
eating. Research-proven relaxation techniques promote inner balance and better relationships
with self and others. Participants learn to reprogram their bodies and minds for healthy outcomes
by practicing new behaviors that include exercise, healthy eating, and relaxation.

BGCDC staff, consultants, and partner organizations promote the community centers as
functional fitness and safety destinations. They:

* Expose participants to informative, fun, and challenging learning-and-doing activities

* Foster a family atmosphere and sense of belonging

* Build caring relationships among members through support groups for people with chronic
health challenges (e.g., diabetes, heart disease, asthma, dementia, obesity) and for their
caregivers

MANAGEMENT/LEADERSHIP

While a new youth activity center in Sun Prairie would be a new and invigorating entry into the
northeastern population center of Dane County, the BGCDC has been functioning as one of the
most successful and respected non-profits and caregivers to boys in girls for two decades. The
management in place at the corporate headquarters on the Beltline of Madison is overseeing the
vision-casting, purchase, development, and management of the Sun Prairie Youth Center.

The management of the BGCDC site in Sun Prairie will include several officers who will
oversee program management, fundraising, and human resources, including the following:

Rod Mitchell is currently the COO and acting CEO and will have oversight of the development
of this project and site. It is his vision, leadership, and professionalism which will be the impetus
for launching this new center.

Tommy Walls is Senior Director of Programs/Club Director and will give guidance in the
development of the programming at the Sun Prairie location. His years of experience and
expertise in programming, know the ins and outs of developing new centers and programming,
will lend to the efficient genesis of this endeavor.

The BGCDC Vice President of Finance, Kelly Kleven, is coordinating the projection of startup
expenses, operating expenses, program revenues, net cost of purchase, and any operating
surpluses. Assisting in the development of this proposal and ongoing direction is Janine

10
Stephens, VP of Marketing & Special Events/Chief Development Officer, Laisha Rowell,
Human Resources Officer, and Rob Westerlund, who is coordinating documentation of the
business plan.

The management on-site at the Sun Prairie Youth Center would include a site director and
assistant director who would oversee day-to-day operations, supported by senior administrative
staff in the areas of Volunteer Coordination, Programming, Licensing and Family Engagement,
Club Based Education, Sports and Teen Programs, and Nutrition.

LOCATION AND GEOGRAP HICAL INFORMATION

The Boys and Girls Club of Dane County’s corporate offices will remain in the central location
of 1818 West Beltline Hwy, Madison, WI 53713. The new Sun Prairie Youth Center will be
located in the former Peace Evangelical Lutheran Church and School currently located at 232
Windsor Street in Sun Prairie in the heart of an underserved neighborhood of 532 households.

11
 THE TARGET MARKET

DEMOGRAPHICS/GEOGRAP HICS

The City of Sun Prairie is one of the fastest growing cities in the state of Wisconsin. Since 2010
they have experienced 14% growth, growing from 30,000 to approximately 33,000 in 2018.

“Sun Prairie was one of the fastest growing cities in the state last year, and that growth was very
visible Wednesday as the school district broke ground on two new elementary schools. Dane
County is leading the state when it comes to population growth, according to the latest numbers
from the U.S. Census Bureau. Dane County more than doubled the national growth rate for the
year. Madison, Fitchburg, Sun Prairie and Verona were in the top 10 when it comes to the fastest
growing cities in the state. Officials said the district is the fastest growing in the state, with 100
to 250 kids coming in each year. And the growth isn’t just in seen in the school district. A
number of businesses are deciding to call Sun Prairie home. Mayor Paul Esser said he believes
that’s because of the city’s expedited permit process.” (May 31, 2017 Channel3000.com)

12
The geographic area of focus for the Sun Prairie Youth Center will be the neighborhood
immediately surrounding the property at 232 Windsor St. and the surrounding environs. The
neighborhood is roughly a triangle of over 500 households bounded by Highway 151 to the west
and north, Windsor St. to the south, and Bristol St. to the east, approximately one square mile of
territory. Beyond this there are many schools, neighborhoods, and businesses.

The demographics of the participants will be similar to those of our other two centers in
Madison and Fitchburg. Our target market is middle to lower socio-economic class mothers and
fathers and other family members and legal guardians between the ages of 18 and 45 who have
children, are most likely employed in full-time positions during the day and may not have family
members living in the area. This market lives within a three-mile radius of the center. They are
men and women who value safe and quality childhood development centers, but whose level of
income demands judicious use of their income.

13
The Property marked as “Peace Ev” on the map above is surrounded by several schools,
including Bird Elementary, Northside Elementary, Eastside Elementary, and Patrick Marsh
Middle School. The neighborhoods surrounding this property, U.S. census tract 115.05, is one of
the poorer tracts in the city. While surrounding tracts have a higher median household income,
ranging from $64,000 to $88,000 a year, track 115.05 median household income is $44,000
annually, making it particularly challenging for inhabitants of this area to afford rent or
mortgage, food, clothing, and daycare which can cost, on average, around $1000 a month.

Citydata.com
14
In the map above you’ll see a very light blue-colored wedge, which is where this future youth
center is located. The wedge represents tract 115.05, where the median household income is
$44,000. On the map below, we see the same triangular area where 22% of residents live with
income below the poverty level.

Citydata.com

With a combination of high-growth in Sun Prairie, 100 to 250 children coming into their schools,
and a growing disparity of income in some of their neighborhoods, the is an increasingly urgent
need for services to be provided for those neighbors who are struggling to make ends meet and to
find affordable childcare and afterschool activities.

Demographic data shows that people of color constitute 15% of the ethnic and racial makeup of
combined (5% Hispanic/Latino any race; 6% Black or African American; 4% Asian; 1%
American Indian or other races). Over 80% of the population BGCDC services are people of
color. Many of our members speak a language other than English at home. Close to 90% of
BGCDC’s member are from low-income households, with 74% living at the federal poverty
level. More than 80% qualify for free or reduced-price school meals. According to the U.S.

15
Census American Community Survey 5-Year Estimates for 2008-12, 51% come from single-
parent households.

LIFESTYLE AND PSYCHOGRAPHICS

The psychographics of our typical customer will be a male or female, increasingly dependent on
two incomes, which has created the necessity of the child care industry. The Sun Prairie Youth
Center will focus on meeting the local need for child care services within the 3-mile radius of the
center.

The Sun Prairie Youth Center will establish a significantly large full-time regular client base in
order to establish a healthy, consistent revenue base to ensure stability of the center.

Many of the households our center will be reaching out to will be in the lower half of the
household income segment. While there are many families in Sun Prairie making over $100,000
a year, a full quarter of the population have a household income below $50,000 a year.

Sun Prairie Household Income

$25,000-$34,999 8.9%

$35,000-$49,999 14.3%

$50,000-$74,999 20.9%

$75,000-$99,999 15.0%

$100,000-$149,999 17.5%

MEMBER FINANCIAL SENSITIVITIES

The average parents of our participants are often sensitive to price but are also concerned about
the quality of their children’s caretakers. What is foremost in their mind when they drop off their
children in the morning is ‘Are they going to be safe?’, and then ‘Will they have fun?’ What our
market is most interested in is Safety, Quality, Educational Programming, Reliability of Service,
and Customer Service. What they are less sensitive to is brand name, fancy toys or facilities, and
the prestige of their children attending a exclusive or expensive elite childcare.

16
MARKET SIZE AND TRENDS

The market size of Sun Prairie is literally growing. The city has broken ground on two new
elementary schools, and further growth is on the horizon. There are approximately 200 children
being added every year to Sun Prairie, many of them needing daycare or afterschool care. This
market is not only growing, but as the economy keeps growing and creating new jobs, more
people will be employed, and annual incomes will rise. This makes for a growing market with
great potential for expansion in the near future.

THE COMPETITION

With inflation continuing to increase every year, it has become necessary for more families to
rely on two incomes to survive. In turn, this increases the demand for child care facilities. We do
not foresee this trend turning in the near future and intend to capture a share of this market.
There are a few centers that provide quality care for children in the same area as the Sun Prairie
Youth Center (SPYC). The child care industry is split between large, commercially-run centers,
smaller locally-owned centers, and community-run non-profit centers. The SPYC will compete
with the small care centers, one’s which may offer daycare at a lower price. The BGCDC is
confident that this will be a successful venture because of the growing need for daycare in this
area, the quality of its managers, and the capability of its staff.

STRATEGIC POSITION AND LEGAL RISK ASSESSMENT

SWOT ANALYSIS

A key to determining the strategic direction and positioning for our organization’s programming
is conducting an analysis of any current or future impacts that could affect our desired/projected
outcome. As such, the following SWOT analysis details identified strengths, weaknesses,
opportunities, and threats for our business to consider moving forward.

STRENGTHS

o Single parents are usually workers who need child care, and there are many couples in
which both people work and are in need of day care for their children.
o Provides a fiscally sound business model with which to provide desired services to our
community, thereby making this world a better place.
o New Center is an avenue to fulfill the Mission and Vision of our Club.
17
 o There is the strength of having potential funding from local or federal government
agencies eager to help improve access to quality child care.
o Provides an opportunity to contribution to the community by providing when you offer
quality child care that enriches the lives of your charges.

WEAKNESSES

o Start-up costs can be exorbitant, including bank loans, fund raising, grant requests, and
special asks.
o The need to assure all elements of the facility are in proper order, including the kitchen,
HVAC, roof and parsonage.
o The need to obtain licensing to run the operation and be in compliance with all local,
state and federal laws.
o Day to day costs of running the business, including utilities and food.
o Finally, the maintenance of the center can be expensive with painting, repairs,
replacement furniture and other supplies.

OPPORTUNITIES

o The potential of growth, which includes not only more children but the possibility of
additional buildings.
o The opportunity to partner with businesses and organizations and schools in the area who
might provide avenues of ingress to local schools for starting clubs and AVID/TOPS
programs.
o Partnerships could potentially subsidize the cost for employees who use our center.
o Provide care for children whose low-income families benefit from government programs,
which could help ensure that we’ll receive full payment.

THREATS

o The potential for competition, especially from companies that offer in-house child care.
o The possibility of lawsuits for alleged cases of neglect or abuse, which can happen even
in the best-run and -staffed facilities.
o The risk of high employee turnover and difficulties in finding qualified staff members.

18
LEGAL RISK ASSESSMENT

Risk assessment is an important part of our role as a practitioner working with children and
young people. We use risk assessment to help manage both health, safety, and children’s welfare.
Our managers and other colleagues will have overall responsibility for risk assessments.
However, they will rely on staff to help them to gather information and to recognize hazards and
risks for employees, children and visitors.

Risk is defined as the chance or likelihood that harm will occur from the hazard. The likelihood
is described as ‘the expectancy of harm occurring’. It can range from ‘never’ to ‘certain’ and
depends on a number of factors. Employees need to understand what control measures are, the
measures or actions that are taken to remove or reduce the risk. Whenever possible, the risk
should be removed. When it cannot be removed, measures must be taken to reduce the risk. Risk
assessment encourages managers and key staff to think about what could go wrong, so that they
can control the situation before accidents or ill health occur. By law, formal risk assessments
must be carried out in every workplace. The risk assessors are usually specially trained,
competent managers or supervisors who are familiar with the task being assessed and safety
controls. They must also be up to date with relevant legal requirements.

Numerous legal issues have been examined and addressed during the legal audit process. The
potential legal issues discovered were as follows.

1. Children’s Safety

2. Government Regulations

3. Employee Ethics

In our litigious society, a mindset much more bent on legal action than most other European and
Asian countries, a business which wishes to provide products and services to the public needs to
carefully examine areas in which their organization could have legal exposure. Due to the nature
of our product’s function, we are more likely to be sued due to issues of child endangerment or
inappropriate behavior of our employees.

The single most important element of avoiding any potential lawsuits would be the following
three points:

19
 o Proper vetting of new employees during the hiring process. It is mandatory to run
background checks, both legal and professional, as well as to have drug testing on all
employees.
o Onboarding and ongoing training for all staff working directly with minors to ensure the
proper policies and procedures are followed when children are cared for, when a child is
hurt, and when it appears that a child is suffering abuse at the hands of an adult.
o Training employees and management about government regulations concerning children,
parents, medical conditions, and related legal issues.

MARKETING PLAN AND SALES STRATEGY

COMPANY’S MESSAGE

Since 1999 BGCDC has inspired and empowered young people to reach their potential as
productive, responsible, and caring adults. BGCDC’s target population is at-risk, Black &
Hispanic/Latino youth in Dane County. 90% of our members are minority or low-income
children and many have underachieved in school.

At Boys & Girls Club of Dane County, it is our goal to lead the way in youth development
programs by working together with local businesses, foundations, and community programs to
produce positive outcomes for nearly 6,500 young people and their families. Affiliated with
Boys & Girls Club of America, our Club is led locally by a dedicated team of professionals
specializing in youth development, business management, and community outreach.

Every day, at every club site, we create an unbeatable and memorable experience for 6,500
young people. We strategize to ensure we have enough sites and hours to serve the populations
who need us the most which is why we are opening a site in Sun Prairie in a central location
which easy to access by bus, by foot, and from local schools for afterschool activities. We strive
to foster and leverage value-added partnerships to connect members to meaningful opportunities
in their communities. BGCDC carefully plans to increase and diversify our financial resources
and engage our donors to ensure that our members’ needs are being met. By opening a new site

20
in Sun Prairie, we fulfill our goals to grow infrastructure responsibly to ensure members have the
resources they need.

When you choose the Sun Prairie Youth Center to care for your children, you’re not just
choosing a babysitter, you are joining a family of people who care for your children, for the
community, and for you.

MARKETING STRATEGY

Our marketing strategy is designed to capitalize on the demographics of our customers

and leverage the BGCDC’s connections with local schools and the City of Sun Prairie. The
SPYC will have significantly positive cash flow while providing excellent care of children. Even
though SPYC charges less, the club will see profit within the first year due to beneficial word-of-
mouth advertising and communication with families through their schools.

STRATEGIC PARTNERSHIPS

We will develop a strategic partnership with the City of Sun Prairie, which has already
developed relationships with our administrative headquarters and our officers. The City of Sun
Prairie and city schools offer not only a broad base of contacts with our target market, but they
are very motivated to see us succeed. The City of Sun Prairie, and specifically the Office of
Economic Development, has expressed their interest in the BGCDC in buying this property and
opening a childcare center and to offer our wide variety of programming to the betterment of the
neighboring children.

OPERATIONS
BUILDING AND FACILITIES

The new SPYC will occupy the current building owned by Peace Evangelical Lutheran Church
and School at 232 Windsor St. in Sun Prairie. Once the property is acquired there will be many
steps to preparing it for operations. Prior to closing on the property, there will be an assessment
of the property for proper placement of pre-school classes. Development of programs, staff, and
equipment and supplies will be carried out by organizational officers and staff. Curriculum,
marketing, enrollment, building management, community relations, and door-opening will be
carefully planned and executed. After this the site will focus on childcare for pre-school
21
children, afterschool activities for school-age children, and the development of the Teen Center
which will be created in the adjacent building to the main church building, what formerly was
the parsonage of the church. Our day-to-day operations will commence within the first month
we take possession, around July 1st, with our doors opening August 1st.

LABOR REQUIREMENTS

Our initial labor requirements will require a director and assistant director with a workforce in
direct relation to how many children we have in our daycare. The start-up plan is to open first
for our daycare on August 1st, ramping up to 80 children. A month later, on September 1st, when
school starts, it is our plan to open our youth afterschool programming. Likewise, we would add
additional members to our staff according to the BGCDC standard of adult to child rations which
are higher than those required by legal standards; one adult for every twelve youth.

COMPENSATION AND INCENTIVES

The compensation of our directors, caregivers, support staff, and other employees will be based
on standard corporate salary bases in the United States and as a reflection of our revenues. These
salaries would reflect the current salaries paid to staff at sister centers of the BGCDC.

EQUIPMENT, FURNITURE, AND OFFICE FURNISHINGS

Our business model is focuses less on high-tech and more on durable, kid-friendly equipment.
This equipment must meet safety standards and allow employees to perform their job functions
effectively and efficiently. The required equipment will be tabulated after discussions with the
current owners of this property to understand what elements are considered part of the premises
and which ones they will be taking with them to their future location.

FINANCIAL CONTROL

The financial control methods of BGCDC and SPYC are primarily determined based on the
guidance of Rod Mitchell, COO and acting CEO, and Kelly Kleven, VP of Finance. Kelly
brings substantial finance expertise from her tenure at several non-profit organizations to our
business. While all major financial decisions will be decided on by the Board of Directors of
BGCDC, Rod is the architect of our financial control methods. As part of financial staff’s daily

22
responsibilities, they must ensure our invoicing is correct and timely, while properly handling
accounts payable and accounts receivable.

Kelly is also responsible for providing all pertinent accounting reports to all members of SPYC
and BGCDC senior leadership for routine review. Periodic financial reviews will allow all
senior leaders to review financial results and discuss future actions and any areas of concern.

CONTINGENCY PLANNING

Our business must have contingency plans in place for any unforeseen circumstances that may
potentially put our future business growth and prosperity in jeopardy. In the event of mass
sickness, security issues, severe weather, catastrophic building failure, or crippling personal
shortage, the senior leadership at BGCDC has the staff and experience to address these issues
and a large staff at other centers to draw upon.

PROGRAMMATIC PLAN

PROGRAMMATIC GOALS AND POSITION

BGCDC has 50 full time & 70 part time staff who oversee and/or run programs at our 8 locations
in Dane County, including our Taft Street & Allied Drive clubhouses (as well as our academic
programs at Madison, Verona and Monona Grove middle & high schools). The organization’s
leadership team consists of its CEO, COO, & chief academic & development officers. Program
staff consists of the directors of our 2 clubhouses, director of programming & administrative
staff.

A board of 30 members oversees the organization’s growth, quality of services, adherence to its
mission, and marketing, and is responsible for charting its direction. In 2015, BGCDC moved its
administrative staff to separate offices outside of our Taft Street site to renovate the location as a
Youth & Community Activity & Fitness Center.

The programmatic goals for The Boys & Girls Club of Dane County at the Sun Prairie Youth
Center are laid out according to age and the time of the year. SPYC will offer a variety of
programs and services for the children attending activities at our location, but we will also
eventually expand our services to the schools and people of Sun Prairie. The initial focus will be

23
on providing childcare to children from birth to four years old from 6:30 a.m. to 6:30 p.m.,
Monday through Friday in the lower level of the current church building where they conducted a
pre-school throughout the year. The BGCDC also provides youth activities immediately after
school for 42 weeks a year, activities which include academic support, games and activities, and
healthy snacks. Participants are bussed from their schools directly to our activity center to take
part in supervised and safe activities. The development of a Teen Center in an adjoining
building will eventually open opportunities for youth from 14 to 18 years old to take part in teen
programming in after school events. During the summers our youth center will offer full-day
participation while on summer vacation, enjoying activities which help to keep children active
and engaged, encouraging developing relationships with staff and other attendees, as well as
providing healthy meals and fun activities.

FINANCIALS

REVENUE FORECAST

Our financial plan outlines the first-year forecast covering upfront financing needs, revenue and
cost projections. Based on our initial ramp up to full capacity, we project first year registration to
draw over one million dollars in cash flow while expenditures are approximately half a million
dollars.

This equates to approximately $1,000,000 in revenue in our first year of operation, growing to
over $1,200,000 by 2020. Due to the fact that there is currently a daycare operating in the
facility, the operation would be turn-key, requiring a minimal amount of funds to prepare it for
our programming, contributing to a low start-up cost. We project the site in Sun Prairie’s
revenue to exceed its expenses in the first year of operation by nearly $500,000.

24
 Projected Annual Revenue for Sun Prairie Youth Center

Program by Age - Shares Income Per week Number of weeks Annual

0-4 yrs (FT daycare) $ 10,800.00 52 $561,600.00

5-13 yrs (PT school year) $ 5,625.00 42 $236,250.00

5-13 yrs (FT summer) $ 13,500.00 10 $135,000.00

Total $ 932,850.00

Program by Age - Non- Income Per Number of

Shares month months Annual

0-4 yrs (FT daycare) $ 5,600.00 12 $ 67,200.00

5-13 yrs (PT school year) $ 2,708.33 12 $ 32,500.00

5-13 yrs (FT summer) $ $ 6,250.00

Annual membership fees $ 450.00

Total $ 100,150.00

Total Annual
Revenue $1,039,250.00

This revenue stream is based on a variety of categories of childcare and children’s programming
determined by their age and time of activity.

• Our daycare is designed for children from birth to four years old and runs every week of
the year from 6:30 a.m. to 5:30 p.m., Monday through Friday, except for holidays. The
SPYC daycare will eventually ramp up to 80 children receiving full-time child care.

25
 • The afterschool youth activities are a part-time service provided for school-age children
who are generally bussed from their schools after classes are over directly to our site.
They will attend afterschool activities from around 3:30 to 6:30 until their parents pick
them up.
• For ten weeks after schools have finished their academic school year the center will host
summer programming for those children who generally attend our afterschool activities.
Their programming is day long and includes activities, academic support, and meals.
• After these programs are firmly in place the Club will work on the Teen Center, which
will be created in what is now the parsonage, a house of 2218 square feet, which is
situated next to the main property.
• Another factor affecting the equation of the revenue sources is whether the children
qualify for Wisconsin Shares or if their parents will be paying for daycare and afterschool
activities from their own resources. This influences revenue due to the fact that
Wisconsin Shares generally pays less than our listed fees for childcare.

The total revenue for all these programs for an entire year of programming is projected at
$1,039,250.00. This is the average income for a full year of programming. The fiscal year for
BGCDC runs from July 1st to June 30th, but the programming year follows the school year, so
our first programming year will begin September 1, 2018 and end August 31, 2019.

OPERATING EXPENSES

The primary costs of our business include paying salaried and hourly wages and mortgage
payments, with the balance of expenses spread out across the facilities and food preparation.
The projected expenses for SPYC have calculated based on actual expenses at other BGCDC
club sites. The actual annual total expenses listed here reflecting the differences of the interest
rate for the building loan.

26
 • The Annual Total Expense for Operations with a loan at 5% is $520,044.
• The Annual Total Expense for Operations with a loan at 6% is $524,502.
• The Annual Total Expense for Operations with a loan at 7% is $529,119.

NET PROFIT

The net profit for the SPYC in its first year is also dependent on the interest percentage paid on
the property loan.

• The Total Annual Net Profit at 5% is $519,206, with the Monthly Net Profit at $43,267.
• The Total Annual Net Profit at 6% is $514,749, with the Monthly Net Profit at $42,895.
• The Total Annual Net Profit at 7% is $510,131, with the Monthly Net Profit at $42,510.

27
The revenue to expenses ratio is very strong, allowing for a profit margin of around $500,000 per
year.

28
FINANCING

To get this BGCDC center off the ground we will be making an offer for the property soon of
approximately $1,140,000. This purchase will require a combination of fundraising, grant
funding, and upfront loan acquisition to cover the purchase price and closing costs. These up-
front expenses are expected to total approximately $1,140,000. The BGCDC will be working
with the City of Sun Prairie for financial contributions, as well as a Community Development
Block Grant for which we are requesting $450,000 to contribute to this purchase. This grant,
along with a loan from First Business Bank, will cover the purchasing price of the property.
While the BGCDC will request a $700,000 loan, this number may be mitigated by the
contributions of several entities, including the City of Sun Prairie, the Sun Prairie Business
Community, and other requests for funding.

232 Windsor St. Sun Prairie

• Listing Price: $1,315,000

• Our offer: $1,140,000

• Projected Offering date: May 16, 2018

• 1% earnest money down: $11,400

• 60 to 90 day closing period

BGCDC Sun Prairie Youth Center

Projected Loan Terms

Total Loan amount $ 700,000.00 $ 700,000.00 $ 700,000.00

Interest Rate 5% 6% 7%

Term in months 180 180 180

Monthly Payment $ 5,535.56 $ 5,907.00 $ 6,291.80

Annual Payment $ 66,426.66 $ 70,883.97 $ 75,501.57

29
Potential Purchase Price Funding Sources

Community Development Block Grant $450,000 Submission Date: May 24th

1st Business Bank loan $700,000 Final Approval Pending

$1,150,000

City of Sun Prairie $200,000 Request made to COW in June

Sun Prairie Business Community $200,000 Capital Fundraising Goal

Sun Prairie Bike Ride Teams $25,000 Fundraising Goal - community

partners

$425,000

Total Funding $1,575,000

Offer Price $1,140,000

Balance above Offer Price $435,000

30
 References

SWOT Analysis for a Day Care Center (2010). Chron.com Retrieved from
http://smallbusiness.chron.com/swot-analysis-day-care-center-40710.html

Sun Prairie population growth seen with groundbreaking for 2 new elementary schools May 31,
2017 retrieved from https://www.channel3000.com/news/sun-prairie-population-
growth-seen-with-groundbreaking-for-2-new-elementary-schools/524480499

These Are The 10 Fastest Growing Cities In Wisconsin For 2018 December 17, 2017 retrieved
from https://www.homesnacks.net/fastest-growing-cities-in-wisconsin-127110/

Residents with income below the poverty level % (2018) retrieved 5/14/2018 from

http://www.city-data.com/poverty/poverty-Madison-Wisconsin.html

Multiple sources retrieved on 5/13/2018 from https://www.bgcdc.org/

31