Day Care Business Plan 1.
Executive Summary Safe Kids Child Care is a start-up organization that plans to provide day care services to residents of Gulshan, one of the posh areas of Dhaka City. This mid-sized childcare facility serves children from three months to six years of age. Their services are safe and secure, providing the parents with an excellent place where their children can be taken care of. The Market The childcare market in Dhaka is still in the developmental stage. There are hardly any Day care service providers in Dhaka. Currently, the only Day Care Faculty in town is in Niketon, which has a maximum capacity of 20 children. Safe Kids will employ two strategies to differentiate themselves. The first is a pricing structure where Safe Kids' services will be priced at 5%-10% less than the ones already available. The second differentiating effort will be benchmarked customer service. A customer-centric philosophy will be infused within the entire organization. Safe Kids will spend extra money to attract and train the best employees. This is especially important because it is the employees that interact with both the children and parents and will have the best chance to impress them enough to turn them into a loyal customer as well as to be vocal in telling their friends about their positive childcare experience. The Management Team Safe Kids will be lead by two American childcare industry veterans, Andrea Child and Danielle Freelander. Andrea has a sales, marketing, and management background within the industry, having spent seven years at The Toddler Warehouse. During her tenure at Toddler Warehouse, Andrea helped grow the business from $98,000 in yearly revenue to over $4.6 million. Andrea's partner is Danielle Freelander who has a finance and administration background. Previous to Safe Kids, Danielle worked for The Rug Rat Vault, the seventh largest child care corporation in the USA. While Danielle was at The Rug Rat Vault as CFO, she was able to increase operating profits by 12%, an increase that is generally unheard of in this industry. Safe Kids will reach sustainable profitability over the next three years, with $674,000 in sales by year three. Through a combination of well-priced services, outstanding customer service, and a well seasoned management team, Safe Kids will quickly gain market share and a reputation as a premier child care provider.
Safe Kids Child Care aims to offer safe and secure child care at all times. Close personal attention to each child is essential to providing a quality experience for all children;
000 will be required as start-up assets. Company Summary
2. Rheeti and Mr. 3. will handle day-to-day operations of the business and will work collaboratively to ensure that this business venture is a success. The start-up costs are to be financed in equal portions by the owners' personal funds and by a $30. 4.therefore. Maintaining a reputable and untarnished reputation in the community.2 Keys to Success
Keys to success for the company will include: 1. Tuhin. Activity Supplies Food Preparation Supplies First Aid Supplies Cleaning Supplies Nap Time Bedding Other Total Start-up Expenses
$1.000 $350 $100 $250 $300 $200 $150 $250 $400 $3. As the operation grows.2 Start-up Summary
The company founders. An additional amount of $67. whichever will better suit the future business needs. Ms. Flexible hours.
2. It is estimated that the start-up expenses will be $3. adequate personnel will be hired to ensure each child has the proper supervision will in our care. 2.
1.000 5-year loan.
2. and related expenses).000
. Competitive pricing.
Start-up Requirements Start-up Expenses Legal Brochures Stationery etc. owned by its founders. Quality care.1 Company Ownership
This business will start out as a simple proprietorship. advertising. the owners will consider re-registering as a limited liability company or as a corporation.000 (including legal costs.
Hours of operation are from 6:30 A.000 $70.
Total Capital and Liabilities Total Funding
$67.000) $37. to 7:30 P.M.000
Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Owner .000
Services Safe Kids Child Care will offer child care services for ages from 3-month infants to 6 years old.000 $0 $0 $30.Freelander Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital
$0 $30.Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required
$67. Monday through Friday.000 $0 $0 $40.M.000
$3.000 $0 $0 $67.Child Onwer .000 ($3.000 $67.000 $67.000 $70.000 $20.000 $70.000 $0 $67.1 Company Locations and Facilities
Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets
house in a quiet. The facility will originally consist of a 1. Part-Time Workers / Drop-Ins Part-time workers and drop-ins comprise approximately 20% of revenues. consistent revenue base to ensure stability of the business.2 Target Market Segment Strategy
The target market for Safe Kids Child Care is full-time working couples. The house will also contain toys.300 sq. Customer relations are extremely important. The yard will be fully fenced in. and books for the entertainment of the children. one of the most posh areas of Dhaka. The house will be used for rainy-day activities and the serving and preparation of meals. as it is imperative to keep the parents pleased in order to keep their children in the daycare center. Maintaining and further enhancing its reputation in the community is crucial to gaining additional market share of this target market. Children are taken in flexibly on either a full-time or parttime basis. ft. The yard will be furnished with safe. games. residential neighborhood.
. Full-Time Working Couples The company wants to establish a significantly large full-time regular client base in order to establish a healthy. Referral marketing is the key type of marketing strategy utilized. to ensure no one can either come in or wander away. entertaining toys.1 Market Segmentation
Safe Kids Child Care has a focus on meeting the local need for child care services within the 10-mile radius of Gulshan.
4. Market Analysis Summary
4. While this market is not the primary focus. as well as a sandbox. sufficient flexibility to handle this secondary market is important to producing supplemental revenues.Safe Kids Child Care will base its' operations in Gulshan.
and to make it a safe. The company expects to double its' clientele every six months.
5. and intend to capture a share of this market.2. The goals of the center are dual-sided: to help parents feel good about the care of their children. for the first 18 months.
5. and $674. educational.
Strategy and Implementation Summary
Safe Kids Child Care will succeed by offering its clients' children a safe and secure care environment. the company plans to deliver sales of approximately $262.000 in the first year. Even though Safe Kids charges less. it has become necessary for more families to rely on two incomes to survive. We do not foresee this trend turning in the near future. In turn.2 Sales Strategy
Safe Kids Child Care will make a significant profit through the excellent care of children. $515.000 in the second year.1 Sales Forecast
As the following table shows. the company will see profit within the first year due to beneficial word-of-mouth advertising. and close personal attention.1 Competitive Edge
Child care competitive edge is the facility's efforts in obtaining all appropriate licensing and certifications.
5. Additionally. this increases the demand for child care facilities.000 in the third year plan implementation. and fun experience for the child. thorough pre-hire background screenings are performed on all individuals before hired for employment.3 Market Needs
With inflation continuing to increase every year.
These conservative assumptions make for a more accurate estimate of real risk. Tuhin. and by operating expenses.000 $138.
. Rheeti and Mr.000 $0 12 2003 $84.
6. always keeping in mind the number of children in need of care at the center.000 $291.1 Break-even Analysis
The Break-even Analysis is based on the average of the first-year figures for total sales by units.000
Safe Kids Child Care expects to raise $40.1 Personnel Plan
As the Personnel Plan shows. Ms.000 $375. The experience each has will attract new clients. the company expects to make gradual investments in care personnel over the next three years. Freelander has extensive experience in the area of finance and administration. These are presented as per-unit revenue.000 as its own capital.000 $252. and fixed costs.000 $0 13
$210. and management within the child care industry. have impeccable credentials in this industry.
Personnel Plan Managers (2) Care Staff Other Total People Total Payroll 2001 $72. and 2. This provides the bulk of the current financing required. Andrea B. Child has extensive experience in sales. This will benefit Safe Kids Child Care in two ways: 1. Clients will be brought from previous employers. also in the child care sector.Management Summary
The two principals.000 $332. per-unit cost. marketing.000 $0 10 2002 $80. and to borrow $30.
7. Danielle E.000 guaranteed from the SBA as a 5-year loan.
7.10 Estimated Monthly Fixed Cost $22.Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even 222 $23.2 Projected Profit and Loss
As the Profit and Loss table shows. the company expects to continue its steady growth in profitability over the next three years of operations.
Assumptions: Average Per-Unit Revenue $104.03 Average Per-Unit Variable Cost $3.