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Daycare Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

  • Daycare Business Plan Home
  • 1. Executive Summary
  • 2. Company Overview
  • 3. Industry Analysis
  • 4. Customer Analysis
  • 5. Competitive Analysis
  • 6. Marketing Plan
  • 7. Operations Plan
  • 8. Management Team
  • 9. Financial Plan

Daycare Business Plan

You’ve come to the right place to easily complete your daycare business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their daycares.

How To Write a Daycare Business Plan & Example

Below are links to each section of your daycare business plan template:

  • Executive Summary – This is a brief overview of your daycare business plan. The executive summary should be no more than 2 pages long, with brief summaries of other sections of the plan.
  • Company Overview – This is where you provide a business description, including your company history, business structure, and any pertinent information about the daycare center.
  • Industry Analysis – The industry analysis describes the daycare industry, including market size and trends.
  • Customer Analysis – This section of your daycare business plan describes your target market and potential customers. You will detail the demographics, needs, and wants of your target audience and how you plan to meet those needs.
  • Competitive Analysis – The competition in your local area will be described here, along with how your daycare business will compete in the market.
  • Marketing Plan – Your marketing plan will describe your daycare’s marketing strategy, including your advertising and promotion plans.
  • Operations Plan – This section of your business plan describes how your daycare will be operated on a day-to-day basis. It may also include your long-term plans for expansion and the milestones you want to achieve to get there.
  • Management Team – The management team section of your business plan should describe the experience and qualifications of your management team including the director, teachers, and support staff.
  • Financial Plan – The financial plan section of your daycare business plan should include your financial statements, such as your income statement, balance sheet, and cash flow statement.

Next Section: Executive Summary >

Daycare Business Plan FAQs

What is a daycare business plan.

A daycare business plan is a plan to start and/or grow your daycare business. Among other things, a good daycare business plan will outline your business concept, identify your target customers, present research about the child care industry, detail your marketing plan, and provide your financial plan.

You can  easily complete your daycare business plan using our Daycare Business Plan Template here .

What Are the Main Types of Daycare Businesses?

There are different types of daycare businesses that parents can choose from for their child's needs. A traditional daycare center is most sought after by working parents since it provides child care during regular work hours. There are also in-home daycare centers that are licensed to provide child care in a home setting with fewer children. Other child care centers provide hourly care services by trusted babysitters or nannies and are operating on an as-needed basis.

What Are the Main Sources of Revenues and Expenses for a Daycare Business?

The primary source of revenue for a daycare business is its child care services.

Some key expenses for a daycare business is rent, salaries for staff, utilities and snacks expenses for the children.

How Do You Get Funding for Your Day Care Business Plan?

A daycare or child care center is typically funded through small business loans, personal savings, credit card financing and/or angel investors. This is true for a business plan for daycare or a childcare business plan.

What are the Steps To Start a Daycare Business?

Starting a daycare can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Day Care Business Plan - The first step in starting a business is to create a detailed child care business plan that outlines all aspects of the venture. This should include market research on the childcare industry and potential target market size, information on the services you will offer, marketing strategy, pricing strategies and detailed financial projections.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your daycare business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your daycare business is in compliance with local laws.

3. Register Your Daycare Business - Once you have chosen a legal structure, the next step is to register your daycare business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your daycare business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Daycare Equipment & Supplies - In order to start your chlidcare business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your childcare   business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising to reach your target audience.

Learn more about how to start a successful daycare business:

  • How to Start a Daycare Business

Where Can I Get a Daycare Business Plan Example PDF?

You can download our daycare business plan PDF template here. This is a business plan template you can use in PDF format.

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How to Start a Day Care: A Step-by-Step Guide

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If you’re a teacher, former teacher, or simply have years of experience caring for children — and an entrepreneurial streak — you might have considered starting your own day care center, either from home or in a dedicated facility. And at an expected job growth of 7% over the next decade, working in child care is a stable career choice. So, if you’re seriously wondering how to start a day care center, you’ve come to the right place.

As is the case starting a business in any industry, however, your passion for your craft alone — or, in this case, your students — isn’t quite enough to ensure that your day care business is copacetic, either financially or legally. You’ll need to do a good amount of due diligence when looking into how to start a day care business, paying special attention to licensing requirements, and ensuring that your facility and program aligns with your state’s health and safety codes.

If you’re a pro at educating, training, supporting and generally corralling large groups of small children, you should be pretty unperturbed by the work it takes to start a day care business. Here’s what you need to know.

business plan for day care centre

How to start a day care business

Although every path toward starting a business looks different for every business owner, there are a few steps that every aspiring day care owner needs to think about when it comes to how to best start a day care.

1. Decide what kind of day care business you want to start

Before you can even get to writing a business plan for your day care business, you need to decide what kind you want to open. Look into whether you want to start a day care business at home, or whether you want a more commercial facility — there might be different permits required in your municipality depending on which you choose. You also need to decide what age groups you want to focus on.

Next up, you'll have to decide on a business entity, which will have huge effects on the way you're taxed and how you operate your day care business. Will you have partners or open your business on your own? Additionally, you'll want to consider whether you want a business entity that offers you some protection. Making your day care center a limited liability company might be a good move, since the business will take on liability should anything go wrong.

You might also decide to buy into a day care franchise opportunity. This option will significantly streamline the steps you need to take in opening your day care.

Once you narrow down these details about your business, you can move on to the next step in starting a day care business: writing a business plan.

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

2. Write a day care business plan

This is a step you have to take when starting any business and it can be quite a bit of work, especially for anyone looking to get moving quickly on their business. When you start writing a business plan, start with an outline of all the things you want to include.

Your plan should include a summary, an overview of the company, a market analysis that includes an assessment of the need for a business like yours, a marketing and sales plan, and a financial plan along with financial projections. Don't worry, though, you can always add to it as your business grows.

One thing you should include, though, is market research. The last thing you want to do is go through all of these "how to start a day care business" steps, only to find that there isn't a market for one or that there are already too many day cares in that area to make it a viable business.

Your business plan should also include a budget. The costs associated with opening and running your day care center can never be accurately totaled, but nailing down a budget will give you some parameters to work within (and some peace of mind).

In your budget plan, don’t forget to factor in:

Your startup costs, including day care equipment, food, toys and educational tools, wages, insurance and licensing.

How much tuition you’ll charge.

Your predicted revenue over the next two to three years.

When you’ll break even.

Also know that day care centers can claim certain tax deductions, which can ease your annual financial burden.

You'll also want to include a marketing plan. If you’re seriously researching how to start a day care business, it’s likely that you’ve already been caring for children in your area for some time and have built up a network of local parents. That’s one valuable method of attracting customers (aka word of mouth) covered. Still, implementing even a basic marketing plan can help define and legitimize your business — and if you need to implement a waitlist as a result, that’s great too!

Your marketing efforts can be relatively simple and low-cost. You can start by creating a Facebook page for your day care center and building a business website, making sure to include your contact information and a little bit about your business. If possible, plan to include pictures of your facilities and testimonials from happy customers.

If you’re a fan of social media, it also can’t hurt to create an Instagram, LinkedIn and/or Twitter account to keep both current and prospective customers updated on your business. Just be sure that once you do, you receive permission from parents or guardians before posting pictures of their children, of course.

Analog marketing techniques would work well here, too. If possible, consider distributing flyers or brochures to nearby libraries, schools, places of worship or any other local gathering spots.

3. Obtain the necessary certification and licenses

You may not need a master’s degree in education to become a day care teacher, but each state does require some combination of licensing and certification when it comes to how to start a day care. Visit your state’s Division of Child Care Services (or its equivalent) to find out the training, experience and credentials you need to legally operate a day care facility.

In New York State, for instance, the head of the day care facility must have one of the following:

An associate degree in early childhood education or an equivalent.

A CDA credential (child development associate) and at least two years of experience caring for children.

A high school diploma and at least three years’ experience caring for children.

You'll probably find that there are some other requirements that usually come up when you're looking up how to start a day care business at home or in another facility. Your state may require that you and any staff you hire are CPR-certified, for one. Another point of safety to remember is that you should be trained in at least basic first aid for children. You and your staff might also need to be fingerprinted and undergo background checks before being cleared for work.

Even if your state doesn’t require that you obtain a license, you should consider doing so, as your licensing course will go over all the boxes you need to check to operate your day care in your state — including health and safety regulations, proper food preparation and the required child-to-adult ratio.

4. Find a (safe) day care facility

In certain states, in order to obtain the proper licenses or registration to start your day care business, you’ll first need to show that your day care facility meets your state’s health and safety requirements.

So whether you choose to open your day care facility in your own home, or buy or lease a new property, you’ll need to make sure your facility meets zoning, fire, and health and safety laws. When it comes to how to start a day care at home, you may need to make alterations to your house to comply with day care requirements in your state, so be sure to factor them into your budget.

5. Get insured

Another requirement for obtaining your license? Getting insured. In certain states, you’ll need to be licensed by the Department of Health and Human Services to run your day care center, but to do so, you’ll first need liability insurance.

The exception is home-based day care centers, which don’t need insurance to be licensed by the DHHS. Still, those opening day care centers at home should seriously consider obtaining small business insurance. You always run the risk of a lawsuit when you’re running your own business, but that risk increases when caring for other people’s children — so protect yourself whenever possible.

There are several types of insurance that cover day care businesses — general liability insurance, workers’ compensation, property insurance, abuse and molestation insurance and others — so contact an insurance broker to help you decide which coverage is best for your business.

6. Get a business checking account and credit card

Get a business credit card and a business checking account early on to help you keep your business expenses separate from your personal expenses when first starting a day care.

It’s crucial to separate your personal and business expenses for many reasons, not the least of which is to reduce your (or your accountant’s) burden come tax season. It’s simply the most professional way to conduct your business, too. Set yourself up for success now by signing up for a business credit card and opening a business bank account, and be diligent about using both solely for your day care’s finances.

Having a business credit card can help you increase your business credit score, too. By paying the card off on time — or early if you can — you can boost your score, which will help you late on when you need a loan or other financing for your day care business.

7. Get financing

Most entrepreneurs bootstrap their businesses at the beginning, as it’s difficult for brand-new businesses with limited credit history to secure a business loan, either from a bank or from an alternative lender.

Your financing options aren’t limited to your own purse strings (or your friends’ and family’s). Here are a few other ways to get funding and loans for a child care business:

SBA microloan

Although most SBA loans are available only to businesses with a few years of experience under their belts, SBA microloans are actually designed to help startups get off the ground. They’re especially accessible to women, veterans, minorities and business owners in low-income areas. And unlike most other SBA loan programs, SBA microloans are disbursed by nonprofit lenders, rather than banks.

As the name suggests, SBA microloans tend to be on the smaller side, with amounts capped at $50,000, but they may be as low as $500. (For more context, the average microloan amount was $14,000 in 2017.) And because microloans are designed for new businesses, business owners with average or even challenged credit may still be accepted, as long as other aspects of their SBA loan applications are in good shape.

SBA community advantage

These loans from the SBA have all of the advantages that come with SBA microloans but the community advantage loans are specifically for businesses that are serving traditionally underserved communities. These loans are generally for a higher dollar amount than the microloans and can go a bit further for your business.

Government grants

You might be able to obtain financial assistance to start and run your day care through state or federal funding programs for early childhood education providers. For instance, you can contact your state’s Child Care and Development Fund Plan to look into startup funds, or your state’s school meal contacts to seek funding for your day care center’s meals.

Take a look at the Administration for Children and Families Office of Child Care’s list for a more comprehensive overview of federal and state financing programs for child care centers .

Business credit card

It’s important to use a business credit card to keep your day care’s expenses separate from your own. Of course, using a credit card is also the most convenient way to pay for your daily expenses. And since credit limits for business credit cards tend to exceed those of consumer cards, you can spend more liberally without worrying about maxing out your card.

Another bonus? Using your business card responsibly (by which we mostly mean paying off your balance in full and on time, every month) can help you build business credit. And with a healthy business credit score, you’re in a better position to secure business loans with great terms down the line.

If you opt for a card with a long 0% intro APR period, you can essentially use that introductory grace period as an interest-free loan. Look into the American Express Blue Business Plus card, which, at 12 months, carries one of the longest interest-free introductory periods in a business credit card right now.

After your 12 interest-free months are up, though, a variable APR kicks in at a rate depending on your creditworthiness and the market. Check the issuer's terms and conditions for the latest APR information.

8. Hire staff

You may be planning on running your day care facility solo, but depending on your state and the number of children you’re looking after, that might not be an option — every state sets a required ratio of staff to children to ensure that every child receives adequate care. They also dictate the maximum number of children permitted in a group.

Adult-to-child ratios and class sizes depend on the age of the children, but they might also depend on the size of the day care facility, or face further restrictions based on municipality. For a day care center in New York state, for example, the state requires one adult for six children under school age. However, in New York City, there must be two teachers or one teacher and one assistant to every six children aged 2 to 3, with a maximum of 12 students allowed in a single group. Your own children may or may not be included in that count, too.

So, while hiring really depends upon your state’s requirements, it makes sense to leave room for hiring staff in your business budget. That way, you’ll be prepared for growth, without worrying about your operation shutting down because you’re not properly prepared for it. (Just keep in mind that any staff you hire needs to be appropriately licensed or trained for it, and potentially undergo a background check.)

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9. Write your day care contract and policies

To further legally protect your business, it’s crucial that you draw up a contract, write out your day care policies, and require that potential clients (or, more likely, the parents of potential clients) review and sign both documents before accepting their patronage.

If you're just starting to read up on how to start a day care business, you might not be clear on the distinction between these two documents. To clarify, your contract is the document stating that you’ll provide child care, be compensated for providing care according to the payment terms you specify, and have the right to terminate providing care.

Your policies, on the other hand, provide parents with important logistical information regarding how you’ll run your day care center. There, you can outline protocol regarding vacation, illness, inclement weather, drop-off and pickup times, curriculum, field trips, and anything else you believe is important for your clients to understand and agree to about your day care center.

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The ultimate guide to starting a daycare business.

The Ultimate Guide to Starting a Daycare Business

Why Start a Daycare?

Advantages to starting a daycare, can you start a daycare from home, how much does it cost to start a daycare, 15 steps to starting a daycare center, resources for daycare owners, bottom line.

Since most parents work outside the home, most preschool aged children receive some form of child care. While many are cared for by nannies, babysitters or other family members, nearly one-quarter (23.4%) of children under age five attend an organized daycare center. 

This presents a world of opportunity for those looking to take the next step and start a child care business of their own. Starting a daycare center can be both personally fulfilling and financially rewarding.

Do you want to open your own daycare center in the U.S.? Follow along with this guide as we reveal the step-by-step process for opening a successful child care business. 

Opening a daycare can be intimidating, but it can also be incredibly rewarding. While there is no blueprint for success, many child care business owners find joy in the journey. So whether it’s your passion for kids or desire to serve parents in your community, there are many valid reasons to open a daycare. 

What’s important is that you also need to consider your own unique reasons for wanting to open a daycare, as these reasons will then motivate you to follow through on your dream. Even though you will face obstacles along the way, the payoff of opening a daycare is certainly worth the struggles.

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Starting your own daycare business can be advantageous on multiple levels. For one, you’ll have the personal satisfaction of starting your own care center from scratch. Then, there’s the joy of spending time with children and learning life-changing lessons along the way.

If you’re still on the fence about starting your own daycare, consider these likely advantages:

  • Emotionally rewarding: Working with kids teaches you to be patient and enjoy the simple things in life. You’ll also have the flexibility of having your own business versus being confined to a traditional day job.
  • Financial freedom: By opening a daycare, you’re in control of your income rather than reliant on a typical paycheck. You can maximize your earning potential and make investments back into your own business.
  • Personal child care: If you have your own child, you can care for them while you’re running your daycare. This will save you money and give your offspring opportunities to make friends with other kids. 
  • Continued education: Opening a daycare can open the door to new opportunities in the field of child care. You may be presented with another job position or choose to pursue additional education of your own accord. 
  • Extra money: Rather than stay home and care for your own children for free (assuming the original plan was to be a stay-at-home parent), why not make some extra money by caring for other children at the same time? 
  • Tax deductions: As a business owner, you can write of certain expenses as business expenses, saving you money on your taxes. These expenses can include a portion of your housing payment (if you have an in-home daycare), your cell phone bill, your vehicle, child care supplies and more. See Tax Deductions . 

These are just a few of the many advantages of starting your own daycare center. Now let’s address some common questions you may have about being a daycare business owner. 

Yes, starting a care center from your home is an option and may even be the more affordable option. This is because there are different options at the local, state and federal level that provide grants and funding to in-home daycare centers.

If you already have the space to run a child care business out of your home, it’s worth looking into Small Business Administration (SBA) loans to help you fund your endeavor. Remember, at the end of the day, you may be eligible for tax cuts and other benefits.

According to small business website bizfluent.com , the average startup cost for a daycare center is $10,000 to $50,000. This can vary widely depending on whether you’re opening a home-based daycare or leasing a separate facility for your care center. 

If you don’t have $10,000+ in your bank account, don’t worry. There are many grants and loans available to child care businesses. In fact, some local businesses will offer financial incentives to support budding child care centers. Consider reaching out to your community for support.

Now, let’s get to the good stuff: how to start your own daycare business from start to finish!

Starting a small business in general is always a journey. While we’ve outlined a few steps to getting your business up and running, know that there is no one “right” way to achieve success. You’ll learn many lessons along the way and are likely to pave your own path.

That said, here are 15 steps to starting your daycare center, even if you have zero experience.

1. Learn About Daycare Licensing Requirements

You might have started off as a babysitter or a nanny, but in order to start a full-on daycare business, you need to meet the proper licensing requirements in order to be legal . That way, your daycare will be legitimate and you won’t run into any legal trouble accepting children into your care. 

A good first step is to contact your state’s Department of Children and Family Services (DCFS) to learn about their specific regulations for child care providers. Another option is your local area’s child care licensing agency. You can usually find this information online. 

To obtain a license to start a daycare center, you’ll also need a current CPR certification, a clean driving record and additional documents that prove your commitment to providing quality child care. Don’t be afraid to ask your local agency questions to ensure you’re satisfying all requirements.

2. Consider Taking Early Childhood Education Classes

While you don’t need to have professional child care experience to start a daycare business, having some understanding of early childhood development is strongly encouraged. You’ll be caring for young lives, so you need to know how to provide the right kind of support and care.

Getting a degree is early childhood education is a good place to start. You can typically find classes in-person at your local community college or online. Through this degree, you’ll gain a greater understanding of how children think and behave, and what they need in order to be properly cared for. 

Beyond that, you’ll have the skills to set your business apart from your competition. You’ll be better prepared to offer the services parents are looking for and keep them coming back time and time again.

3. Create a Daycare Business Plan

In starting any type of small business, it helps to have a business plan. Having a business plan helps you set tangible goals for your business, organize your business structure, outline your services and so much more.

In your daycare business plan, you’ll define your daycare’s mission statement, operations and procedures, staffing and budget. This business plan works to keep you on track and striving toward success. 

Consider how you want your business to be organized for you plan. Will you be solo or hire staff? How will you secure funding? Will you offer services beyond child care (like tutoring)? For help in creating your business plan, check out this detailed guide from the U.S. Small Business Association .

4. Find a Location for Your Daycare

If you plan on running your daycare out of your home, this step should be pretty straightforward. If not, you’ll need to find a location for your child care facility.

Many recreational centers, churches, local businesses and even schools have space available to host a daycare, typically for a monthly fee. Search online, in your local newspaper and within your network to find options in your area. 

Once you’ve found a good fit, you need to check your city’s zoning laws and licensing guidelines to make sure your chosen location is compliant. That way you can avoid some legal headaches down the road. 

Ideally, you’ll need to find a location that’s centrally located, easily accessible and child-friendly. Consider what children and their parents will be looking for in a child care center. You might not find the perfect option, but you can make it work with a little TLC.

5. Get Insurance

Most daycare centers need several types of insurance in order to keep children (and their businesses) protected. These policies typically include liability coverage, property, workers’ compensation and business insurance.

Not sure what type of insurance you need? You can always check with your local child care provider licensing office for guidance.

6. Seek Out Grants and Funding

As we covered already, there are certainly costs associated with starting a daycare. If you don’t have the money you need to cover your initial startup costs, you’ll need to get creative when it comes to acquiring funding.

There are many grants available to help you cover your startup costs. You might also consider taking out an SBA loan or doing community fundraising. Know that the goal is to use these funds as an investment that will yield profitable returns in your business.

Costs Associated with Starting a Daycare

There are several things you’ll need to buy or lease in order to get your business up and running for day one. These expenses include but are not limited to:

  • Renting a daycare space
  • Indoor and outdoor play equipment
  • Art supplies
  • Cleaning supplies
  • Child care supplies (like diapers and wipes)
  • Business laptop
  • Licensing fees
  • Food (for snacks/meals)
  • Bottles, cups, plates, utensils, etc.
  • Car or reliable transportation (optional)

You might think of some additional items you’d like to have at your daycare. Over time, you can use the revenue coming in to help cover these expenses and invest in better equipment/supplies. It’s OK to keep things simple and then scale your way up. 

7. Prepare Your Daycare Center

Once you have a location secured and the proper materials and equipment in place, it’s time to prepare your daycare center.

First, clean your facility and sanitize with an effective disinfectant. Then, take the needed steps to childproof your daycare according to the ages of the children you will be caring for. Follow this childproofing checklist for help.

Finally, set up play equipment and lay out toys. You might decide to use storage boxes to keep everything organized. You can always rearrange your layout according to your needs.

Is your daycare ready for service? Give it another once-over and you’re ready to open your doors for day one of business!

8. Draft up a Contract

As a small business owner, having a contract is always a good idea. The parents that come to your facility are essentially your clients, and you want to have a solid contract in place to protect yourself from any legal issues.

We recommend seeking out a trusted contract lawyer to draft up a contract according to your needs and unique business requirements. Your contract will then be used to outline your expectations for your clients and their children.

Here are some important questions to consider when creating your contract:

  • How do you expect to be paid?
  • How will you handle late payments?
  • What time should parents pick up their children?
  • Are there consequences for late pick up?
  • What services will you provide?
  • What is your policy when it comes to sick children?
  • Do you offer refunds? If so, under what conditions?
  • What happens if a child is injured at your facility?

Whether you seek help from an attorney or write the contract yourself, you should have a contract in place before accepting business. Once signed, you can then send professional daycare invoices to get paid by your clients. 

9. Establish Policies and Procedures

Establish policies and procedures for the families that attend your daycare and your staff. These procedures may include an emergency plan, safety procedures, privacy protocols and rules for your facility.

Having these procedures in place will help you keep the children safe and protect yourself from liability (in some instances). In establishing your policies, be sure to review your local child care licensing requirements to ensure compliance. 

10. Research Possible Tax Credits

If you’re opening an in-home daycare, you may be eligible for certain tax reductions based on the fact that you’re using your residence for business purposes. This means you can essentially write off a portion of your housing cost. This can be the case even if your daycare space serves as a family room after hours. 

11. Hire Staff as Needed

When you’re first getting started, you may just be a company of one, as you might want to save the cost of hiring unnecessary help. But over time, you may need to hire help to take care of the kids during the day.

This is especially true if you find yourself running up against the required ratio of staff to children, as outlined in your local daycare licensing requirements. Be sure to review these to make sure you have enough staff for the number of children you plan on caring for.

Also, make sure all child care staff undergo criminal background checks and provide references to ensure the safety of the children. Make your hiring decisions carefully to keep your facility safe and maintain a stellar reputation.

12. Market Your Daycare

You have your daycare set up and open for business, now how do you get families in the door? As with any small business, you’ll need to market yourself to attract potential clients.

There are many ways to market your daycare. One method is to create flyers and post them around your local community—at businesses, schools and coffee shops. You can also run paid ads on Google or Facebook to draw in families from your local area.

To establish your daycare as a professional business, consider building a website that provides more information about your services. A basic website can cost anywhere from $10 for a WordPress template and set up, to $2,000 or more for a custom design.

With a website, you can then use search engine optimization (SEO) to attract organic traffic from Google. That way, when families search for a daycare near them, your business is likely to show up in the search results.

13. Promote Your Daycare on Social Media

Another effective marketing tool for daycare centers is social media. Platforms like Facebook, Instagram and LinkedIn can be used to promote your business and draw in potential clients.

Create a business Facebook page to post more information about your daycare, collect client testimonials and keep families up-to-date with events at your daycare. You can also post on Instagram and LinkedIn, with targeted hashtags, to attract families in your area.

As your business grows, you might decide to invest in paid marketing services. A digital marketing agency or consultant can help you increase your business’s presence online, outrank your local competitors and attract new clients. 

14. Provide Top-Quality Care

The success of your daycare depends on you providing top-quality care to your families. If the kids at your facility are properly cared for, and, even better, enjoy coming to your daycare, you’re likely to attract more referral business.

Positive reviews can work wonders to attract new clients. Ask families to review your business on Facebook, Google, Yelp and other review sites to improve your daycare’s reputation in your community.

Always look for ways to improve your daycare. Ask families for feedback, invest in additional education and hire fantastic staff to make your daycare the obvious choice for families in your area. 

Hit The Ground Sprinting

15. Manage Your Business Finances

Many small businesses fail due to poor money management. If you want your business to succeed, you’ll need at least a basic understanding of business accounting and how to manage your expenses.

Staying on top of your business finances is more than just tracking revenue in and expenses out. You’ll need to plan for taxes—typically around 30% of your revenue, after expenses—and make informed decisions when it comes to how you’re going to allocate your funds.

Professional daycare accounting software can help you send invoices, track revenue, manage expenses and more. It can even send reminders to parents for late payment and accept credit card payments with ease.

The more you know, the easier it will be to make smart financial decisions. Stay on top of your business finances so your business is not only surviving but thriving . 

Congratulations on taking the first step to starting your own daycare business—reading this guide! By now you have a general blueprint for how to start your own business and get up and running. 

Need more help getting started? Check out these reliable resources for aspiring daycare business owners:

  • Child Care Aware of America: licensing guidelines for child care and daycare providers
  • United States Department of Health and Human Services: childproofing checklist
  • Early Childhood Training and Technical Assistance System (ECTTAS): child care resource guide
  • Office of Child Care: list of state licensing agencies
  • Child Care Resources Inc.: early educator training

Starting a daycare business can be challenging but also incredibly rewarding. The process is made easier by having a general roadmap for how to get started. Hopefully, this guide has provided some guidance on how to get started, plus inspiration for you to finally launch a business of your own.

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How to Write a Business Plan for Daycare and Preschool

  • brightwheel
  • Running a business

People sitting at a table reviewing business graphs

Writing a daycare or preschool business plan is a big task, but due diligence and hard work will help you understand what you’ll need to launch and run a daycare or preschool successfully.

people sitting around a table reviewing a business graph

What do daycare investors want?

Your local government will have rules and regulations you’ll need to follow as a small business owner and childcare provider. Start by reviewing the childcare licensing guidelines for your state and city. Once you’re clear on licensing guidelines, you’re ready to start writing your childcare business plan.

The purpose of a business plan is to help secure funding. You’ll likely need financing to launch your preschool or daycare, especially if you want to avoid the monthly repayment of a loan. 

Investors provide businesses with money in exchange for partial ownership. As a result, they expect a larger return on their initial investment. Because many investors work in business, they prefer to invest in an established company.

Most investors look for:

Industry background and experience

Financial performance and promise.

Investors want to make money. Therefore, they are more inclined to work with experienced entrepreneurs and business owners to guarantee a return on their investment. 

This might sound discouraging for those with little experience or without a business management background, but the opportunity doesn’t end there. You could consider bringing on a partner with a business background. Additionally, many investors act as a source of business advice. 

You need to demonstrate that your business will make money. Investors will likely want to see signs of business growth before they give you money. 

Additionally, investors will want to know about your financial stability. Questions an investor might ask are:

  • What do you plan to do with the money?
  • Has your business been up or down in recent years?
  • Is your company losing money? Are there signs of growth for the future?
  • How do you plan to repay your investment?

Of course, every investor is different, so they’ll consider various factors. While experience and financial promise are at the top of the list for most investors, they might also look for uniqueness, business readiness, an effective business model, and more.

A women using a calculating and holding cash

Writing a daycare business plan

We’ve discussed licensing and investors. Now, you’re ready to begin the framework of your business plan for daycares and preschools. Here’s what you’ll need to get started:

Business description

Needs assessment, insurance policies, operating policies and procedures, marketing strategy.

Start with the basics: what does your daycare do? Detailing the service you’re offering will help you create a clear business plan. Next, you might want to write some goals or even a mission statement outlining your purpose and motivation.

Start by looking at general daycare or preschool industry trends, then narrow your scope to the preschools or daycares in your local area. Next, you’ll need to figure out who your target customers are and confirm that there is a need for a business like yours in your community. 

Are there a lot of young families in your neighborhood? Are you located somewhere convenient for commuting parents? Does your business offer a specific service that your competitors don’t, like early check-in or extended hours? 

Also, check out the competition. Research the existing daycare or preschool options in your community. Look at current preschool or daycare business plan samples. What makes your daycare or preschool unique? 

Developing detailed budgets will help you run your small business. You’ll need to compare your current cash flow and expenditures to determine whether you’ll make a profit.

Build a budget for unexpected costs. For example, how many children do you need to serve to be able to pay your bills and stay afloat? Child Care Aware of America offers some terrific budgeting resources for this process.

Depending on the type and size of your preschool, you’ll need insurance policies of several different types, including liability, property, workers’ compensation, and business insurance. Check the licensing requirements for guidance in building this part of your preschool business plan.

Create a comprehensive handbook for families and staff that includes you center's policies and procedures. For instance, you'll need to develop an emergency plan , daycare sick policy , and other safety protocols according to your local childcare licensing requirements. 

Your staff handbook will be a helpful resource your employees can reference and include all your employment policies including work and pay schedules, benefits, and information about professional growth and development. You can also include information on your center's philosophy and curriculum, classroom procedures, and expectations for working with children and families.

Your marketing strategy is the key to attracting customers. Decide what type of advertising you will use in front of potential customers. For example, list your school in local directories and participate in parenting and kid-friendly community events. Run a social media campaign focusing on your target population.

Another big part of childcare business marketing is differentiating yourself from other preschools. These days adopting daycare software is a surefire way to attract families with young children. A tool like brightwheel's center management feature will streamline your center's admission process, record keeping, and reporting, saving you up to 20 hours per month. 

You can also use brightwheel for recording and tracking daily events and activities, and sending real-time updates to families throughout the day. It also offers secure, digital check-in/check-out and a paperless billing system. This is a great way to keep your families looped in on daily activities and handle all of your administrative tasks in one place.

Your business is ready!

Writing a business plan can be stressful, but it doesn’t have to be. Once you secure the proper licensing, use the information in this article to guide you through creating a solid daycare business plan that drives investors and financing to your business.

These are just the basics to get you started. For further information, the U.S. Small Business Administration’s website has detailed instructions on creating each necessary part of a successful business plan. 

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The Daycare Business Plan Blueprint (Examples + Template)

business plan for day care centre

April 14, 2022

Adam Hoeksema

Starting a daycare business can be a daunting task. There are so many things to think about and plan for. You need to find the perfect location, get the right licenses and permits, hire qualified staff, and, most importantly, create a daycare business plan. 

Creating a daycare business plan is one of the most important steps in starting your business. A well-thought-out business plan will help you get funding, attract investors, and operate your business effectively. 

The bad news is that there is a lot of advice out there on writing a business plan. With so much information and tons of daycare business plan examples to choose from, it can be overwhelming to know where to start. 

The good news is, we've got you covered. In this article, we'll give you a comprehensive guide on how to write a daycare business plan. We will also provide some examples and a free daycare business plan template to get you started. 

But First...Is a Daycare a Good Business to Start? 

Before we talk about how to create a daycare business plan, let's first answer the question: is starting a daycare a good business to get into? 

The answer is a resounding yes! The daycare industry is growing rapidly. It is one of the few businesses that are not only recession-proof but also thrives in uncertain economic times. 

According to the National Association of Child Care Resource & Referral Agencies (NACCRRA), the demand for child care services has increased by 26% over the last decade. This demand is only expected to grow in the coming years. 

When it comes to profitability, the daycare industry is very attractive. According to IBISWorld , the average profit margin for a daycare business is around 15%. That's higher than the average for most other industries! 

If you're thinking about starting a daycare business, know that you are getting into a very profitable and in-demand industry. Now let's talk about how to write a daycare business plan that will help you start and grow your business successfully.

How to Create a Daycare Business Plan 

A daycare business plan is as simple as a word document with the following sections:

  • Business Description
  • Market Analysis

Business Model

  • Location and Facility
  • Marketing Plan
  • Financial Plan

Executive Summary

This article will provide context of what to include in each section of your daycare business plan. As you work on writing your business plan, you will want to grab our daycare financial projection template as well in order to complete the financial plan section.

Your daycare business plan should be an elevator pitch in itself. It should be attractive to potential partners and investors. Basically, it should give them a clear idea of your business, where it is located, what services you offer, who your target market is, and how you plan to make money. 

Creating a daycare business plan doesn't have to be complicated. In fact, the cheapest and easiest approach is to simply start with a blank word document and work through each of the above sections, it can be pretty easy. Here is a step-by-step guide on how to create a daycare business plan: 

Create a Compelling Business Description

Your daycare business's unique selling point (USP) should be the first thing you include in your business plan. What is it that makes your daycare center different from all the others? 

This description should be the foundation of your marketing efforts as well.

There are a few questions you should answer in your company description. They include:

What's your Curriculum Based On?

Potential investors, partners, and even customers will be interested in knowing what your curriculum is based on. This will help them understand the environment children will be in a while under your care. 

When describing your curriculum, make sure to include:

  • What age ranges do you cater for?
  • The type of care you offer (full-time, part-time, drop-in) 
  • Your educational philosophy 
  • The activities and programs you offer 

For example, if your daycare is unique by offering a Montessori curriculum, you will want to highlight that.  In fact, you can learn more about how to start a Montessori program here . 

How Big is Your Facility? 

The size of your facility will say a lot about the type of operation you're running. Are you a small, home-based daycare or a large center with multiple classrooms? 

This section of your business plan may include: 

  • A floor plan of your facility 
  • The capacity of your facility 
  • The number of employees you have 
  • Type of equipment and furniture you have 

Who Is Your Target Market? 

You can't market to everyone, so you must identify your target market. This will help you focus your marketing efforts and ensure that you're reaching the right people. 

Below is a daycare business plan example that shows how your business description should be:

“ABC Daycare is a small, home-based daycare located in San Francisco, CA. We cater to children aged 0-12 years old and offer full-time, part-time, and drop-in care. 
Our curriculum is based on the Reggio Emilia approach, emphasizing hands-on learning and collaboration. Activities and programs include arts and crafts, music, and outdoor play. 
Our facility can accommodate up to 12 children at a time. We have a staff of four employees who are all CPR and First Aid certified. 
Our target market is working parents in the city who need quality child care but can't afford the rates of larger daycare centers.  We've created an affordable subscription-based pricing model for our target market to fulfill the demand. We generate revenue through monthly subscriptions and have low operating costs due to our small size. 
Our suppliers are local businesses that provide us with food, toys, and other supplies.” 

Do a Thorough Market Analysis

After writing a compelling description of your business, you need to do a thorough marketing analysis. This analysis will help you determine your target market, what type of advertising and promotion will work best, and how to price your services. 

You should also research the competition and see what they are doing right and wrong. This information will be invaluable as you create your daycare business plan.

Keep these things in mind when doing a market analysis:

The Size of Your Market

This is determined by the number of potential customers in your area who need or want your services. 

For example, if you live in a small town with only a few thousand people, there may not be enough demand to support a large daycare facility. 

On the other hand, if you live in a city with hundreds of thousands of people, there may be room for multiple daycare facilities. 

Your target market is the segment of the population that is most likely to use your services. This includes factors like age, income, education, and location. 

After you've identified your target market, you need to show how you plan on fulfilling the demand. This is where your business model comes in. 

Your business model is a detailed description of how your daycare will operate daily. It should include: 

  • How do you plan on acquiring customers? 
  • What are your pricing strategies? 
  • How will you generate revenue? 
  • What are your operating costs? 
  • Who are your suppliers? 

Your business model should be detailed and easy to understand. It should also be realistic and achievable. 

Here is a daycare business plan example of a business model for a small daycare center: 

“The daycare will be open Monday through Friday from six in the morning to six at night. We will offer care for children ages six weeks to twelve years old. 
Our rates will be $50 per week for one child and $40 per week for each additional child from the same family. We will offer a discount of $20 per week for families who enroll their children for an entire year. 
We will generate revenue by charging weekly rates for our services. Our operating costs will include rent, utilities, supplies, and salaries for our employees. Also, we will acquire customers through online advertising and word-of-mouth.” 

As you can see, a business model is a detailed description of how your business will operate. It's essential to have one in place before promoting and selling your services. 

One thing you should not forget to include in your daycare business plan is the location of your business and your rental agreement. If you are renting a space, including the terms of your agreement and how long you have the space. If you are purchasing a property, include information on the property, such as square footage and any special features that will help your business stand out. 

This daycare business plan example shows you how to include this vital information: 

“The daycare will be located at 123 Main Street in a commercial space currently leased by the owner. The lease agreement is for three years with an option to renew for an additional three years. The monthly rent is $2000, and the security deposit is $3000. 
The daycare will have exclusive use of the main floor, including a large open play area, a small kitchen, two bathrooms, and four classrooms. The daycare will also have access to the outdoor playground.
80% of our space will be used for childcare, with the other 20% used for our administrative offices and staff lounge. 
We have chosen this location because it is close to several residential neighborhoods and has easy access to public transportation. The space is also large enough to accommodate our future growth.” 

There are many daycare business plan templates you can use to help you get started. This is a basic outline of what should be included.

Daycare Marketing Plan

Most daycare business plan templates will include a section for your marketing plan. Most people overlook the marketing aspect of their business, but it is one of the most important pieces of your puzzle. 

In your business plan, you need to outline your target market, your marketing strategies, and how you plan on executing those strategies. 

You also need to set aside a budget for your marketing efforts. Many people make the mistake of thinking that they don't need to spend money on marketing, but that couldn't be further from the truth. 

The following daycare business plan example shows you how you should describe your marketing efforts:

"Our target market is working for families with children between six weeks and five years old. We will reach our target market through online and offline marketing efforts. 
Some of the offline marketing strategies we will use include print advertising, flyers, and word-of-mouth referrals. We will use a mix of SEO, content marketing, and social media for online marketing. 
We have set aside a budget of $500 per month for our marketing efforts."

As you can see from the example above, your marketing plan should be clear, concise, and to the point. Don't forget to include a budget!

Daycare Financial Plan

Your business plan should include a financial plan section. This is where you'll lay out how much money you need to start or grow your business. Be specific and include dollar amounts. If you're seeking a loan, including information on how much you're requesting and how you'll use the funds.

You should also include a detailed budget in your business plan. Your budget should include all of your projected income and expenses for at least the first year of operation. Creating a budget will help you get a clear picture of what it will cost to start and operate your business.

This section should include projected costs for:

  • Rent or mortgage payments
  • Advertising and marketing
  • Operating expenses such as utilities, supplies, and more. 

Startup costs are another vital item to include in your business plan. This is the money you need to purchase equipment, furniture, or any other items to get your business up and running.

If you plan to secure a loan, your lender will want to see a detailed business plan with information on how you plan to use the loan funds. Ensure you include this information in your business plan to increase your chances of securing funding.

If you're seeking funding from investors, you'll need to include information on how they will be compensated. This is typically done through equity, a percentage ownership stake in your business. 

For example, if you seek $100,000 in funding and offer a 20% equity stake, the investor will own 20% of your business. 

Make sure you use a daycare business plan template that includes a section on funding to ensure you include all the necessary information. If you’re planning to get a loan or seek investment, you’re going to need full financial projections. Our daycare financial model will provide up to 5 years of projected income statements, cash flow and balance sheet forecasts.

Next I want to answer some key financial questions for you as you consider how to forecast your daycare financials. I am going to hit on:

  • Daycare Startup Costs
  • Daycare Revenue 
  • Daycare Facility Operating Expenses
  • Daycare Profitability

Let’s dive into some key questions. 

How much does it cost to start a daycare? 

It costs between $10,000 and $50,000 to start an in-home daycare business according to Bizfluent . 

It costs between $59,000 and $3 million dollars to start a daycare facility according to Bizfluent . 

So obviously this is a huge range in startup costs.  The main thing that will determine your startup costs is your daycare facility.  Depending on how large your daycare is, whether you are buying, building, or leasing the space, and how much renovation needs to be done, your startup costs can vary drastically.  

Some tips to help you estimate a cost of a daycare facility:

  • A daycare facility should have 35 square feet of open floor space indoors per child. 
  • So if you wanted a facility that could care for 100 children you would need 3,500 square feet of indoor space for children, plus additional space for offices, kitchen, bathrooms, etc.  Let’s assume that you would need at least 5,000 square feet of space for a daycare facility that served 100 children.  
  • A daycare center would cost at least $295 per square foot to construct in the U.S. based on data from Levelset . 
  • Constructing a new 5,000 square foot daycare center would likely cost at least $1,475,000 based on $295 per square foot.  
  • Now you might not be constructing new, rather you might rent an existing facility which could require renovations.  You will need to get a specific quote for the specific renovations that you need for your space. 

How much revenue can a daycare business make?

A daycare facility can generate $17,680 in revenue per year per child according to Zippia .  

A daycare business with 100 children can generate over $1.75 million per year in annual revenue based on our average revenue per child of $17,680. 

How much does daycare cost?

The average cost of daycare is $17,680 per year, per child in the U.S. according to Zippia . 

This means that the average monthly cost of daycare in the U.S. is roughly $1,475.

What is the typical child to staff ratio for a daycare? 

The typical child to staff ratios for a daycare are:

  • 1 adult staff for every 4 infants (age 0 to 12 months)
  • 1 adult staff for every 6 toddlers (age 1 to 3 years)
  • 1 adult staff for every 10 pre schoolers (age 3 to 5 years)
  • 1 adult staff for every 12 school aged children (5+ years old)

Source - Childcare.gov

These ratios will help you estimate how many staff members you will need.  Our financial projection template makes this easy.  Just enter in your ratios and the number of children you expect to have in each age group and the model will automatically calculate the number of staff required to maintain your ratios.  See the input daycare staffing table below:

business plan for day care centre

What are the typical operating costs for a daycare? 

Your largest operating expense for a daycare facility is likely to be your rent. 

It should cost between $20 and $30 per square foot to rent a daycare center space based on available spaces on Loopnet . 

Other operating costs for a daycare center include:

You can see how you can enter in your operating costs into our financial model below:

business plan for day care centre

How much profit can a daycare make? 

The average daycare profit margin is 6.5% according to Daycare Business Boss . 

Once you complete your projections you will want to take a look at our At a Glance tab to make sure that your projected profit margins aren’t way out of line with the industry norms.  You can find projected profit margins for your daycare below:

business plan for day care centre

This is an important aspect that you may not find in most daycare business plan templates, but it's still essential. An appendix includes any additional information to help you understand your business plan. This might include things like your:

  • Business licenses 
  • Insurance policy 
  • Lease agreement 
  • Sample contracts 
  • Staff bios 

This section adds credibility to your daycare business plan and shows that you've done your homework. Including all of the necessary details in your appendix will give investors peace of mind and show that you're serious about starting a daycare center.

An executive summary is a brief overview of your business plan and is often considered the most important section. It should be two pages long, with a clear description of your business, your goals, and why you will achieve them.

There are several key elements to include in your executive summary:

  • Business Name: This is the name you have chosen for your business.
  • Location: Include the city, state, and country where your business will be located.
  • Business description: Describe what type of business you will be operating.
  • Target market : This is the group of people you will be targeting as customers.
  • Competition: Who are your competitors, and how will you compete with them?
  • Product or service : What product or service will you be offering?
  • Sales and marketing: How will you generate sales?
  • Financials: Include a five-year income statement, balance sheet, and cash flow statement.
  • Management team: Introduce your management team and their experience.
  • Exit strategy : This is the plan for how you will eventually sell or otherwise exit the business in case you decide to retire or move on to other projects.

The executive summary is the most crucial section of your business plan because it gives investors and lenders a quick overview of your company and its prospects. Be sure to include all of the key elements listed above, and keep it under two pages in length.

What Are The Benefits of Creating a Daycare Business Plan?

Research shows that a business plan helps business owners make better decisions, turn abstract goals into tangible objectives, and track progress over time. But what does this mean for those who want to open a daycare? 

Creating a business plan forces you to think through every step of starting your company. It's a valuable exercise that can save you time and money in the long run. Even if you don't end up following your business plan to a tee, the process of writing it will help you better understand your business and what needs to be done to make it successful. 

There are many benefits to creating a daycare business plan, including: 

Gives You a Roadmap to Follow

As with any journey, it's always helpful to have a map. A business plan is that map for your daycare business. It will give you a clear idea of where you want to go and how you can get there. 

Helps You Secure Funding

A business plan is essential if you're looking for investors or loans. It will show potential lenders and investors that you've put thought into your business and have a solid strategy for making it successful. 

Ensures Your Daycare Business is Feasible

When you're starting a business, it's easy to get caught up in the excitement and overlook potential problems. A business plan forces you to take a step back and assess whether your business is truly viable. It also helps you identify any areas where additional research is needed. 

Final Thoughts

A daycare business plan is a valuable tool to help you make your business successful. 

It is worth noting that your business plan is not a one-time exercise but should be updated regularly as your business grows and changes. This document is meant to be a living document that evolves as your business does. 

If you're unsure where to start, there are plenty of resources available to help you, including daycare business plan examples online, books, and daycare business plan templates. 

You can also use our daycare projection template to get your financial plan ironed out and ready for your business plan.

The most important thing is just to get started. The sooner you create your business plan, the better prepared you will be for success.

You can get the Daycare Facility financial projection template here!

The template is simple to use and will save you loads of time while still producing professional looking daycare projections. ProjectionHub has helped more than 50,000 businesses create financial projections so you can be confident that you can do it too.

The daycare business projection template includes:

5 Year Daycare Facility Pro Forma Financial Statements

CPA Developed & Completely Customizable

Free Support & Projections Review

Compatible with Google Sheets

Free expert review of your completed projections

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How to Write a Business Plan for a Daycare: Complete Guide

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  • January 30, 2023

business plan for day care centre

👇 Check all our resources on daycares 👇

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your daycare, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your daycare business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it’s the summary of the different sections included in your business plan.

Why do you need a business plan for your daycare?

The purpose of a business plan is to secure funding through one of the following channels:

  • Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
  • Obtain private investments from investment funds, angel investors, etc.
  • Obtain a public or private grant

How to write an executive summary for your daycare?

The executive summary of your daycare business plan should include the following important information:

Business Overview

Introduce your company (its name, its mission) and the history behind it: why did you decide to create a daycare in your area today? Why you? 

Also, that’s where you should expand on the business: where will the daycare facility be located? How old are the children you target? How many children will you be able to take care of? What are the amenities (classrooms, playground, cafeteria, etc.)? 

Market Overview

Provide here a deep market analysis that backs your decision to open a daycare business in your area today. Why would your business succeed given current market conditions? 

For example, the market analysis should include information like: what are your competitors in the area? What are their characteristics, strengths and weaknesses? Who are your target audience (parents and children)? Is that in line with the demographics in your area?

Management & People

Who is the management team? What is your/their experience in the daycare industry?

Financial plan

What is your expected revenue and profitability for the next 5 years? When do you expect to break-even? Simply include here a chart of your key financials (e.g. Revenue, Gross Profit, Net profit )

Funding Ask

What loan/investment/grant are you seeking? How much do you need? How do you intend to spend the money?

business plan for day care centre

Daycare Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Daycare Business Overview

The business overview section of the daycare business plan summarizes the basics of your facility, including the background information, business model, services, target audience, and legal structure. 

a) History of the Project

When you launch a daycare business, you want it to grow and even become the best in the region if possible. One small element that can catalyze your company’s growth is its history. You don’t have to exaggerate the information here, but try to include useful details that will make your daycare business stand out. 

For a business as sensitive as daycare, trust overrides anything else. So, make sure to include in your business plan your experience and passion for children to demonstrate to investors you are qualified and the right person to successfully run a new daycare facility.

Also, flesh out the history behind the project: why are you starting a daycare now? For example, you may have noticed a lack of child care services for toddlers and infants in the city.

b) Business Model

Next up is the business model. This is the revenue-generating plan that identifies how your business operates. A daycare business model should be succinct and address specific things about the business. 

For instance, is it a commercial daycare facility or a family daycare? Is it an independent facility or a partnership? And should you opt for a daycare franchise? 

Keep in mind that daycare facilities vary by the target age group. So, you can opt for a childcare center, a family daycare, a kindergarten/pre-school, or a nursery school.

business plan for day care centre

c) Daycare Services

It takes a lot to raise a child. So, be clear on the services you want to offer in your newly founded daycare facility. The quality of services will make your business more attractive. But an even bigger factor will be the type of services you provide at the facility.

Indeed, a lot happens inside a daycare facility, from hands-on learning (classrooms, private tuition) to field trips, games and community events. 

d) Pricing Strategy

Age is a key factor when setting the prices of your daycare services. On average, parents across the US pay about $9,400 per year on child care per child. Of course, the actual figure will vary based on a number of factors, but this is a great starting point when getting into the industry. 

An accurate pricing strategy can help you outshine your biggest competitors. However, don’t forget that setting cheaper prices isn’t necessarily the best strategy, just in the same way overpriced services may turn off potential clients. 

e) Target Audience

Daycare centers are so named because they are about a child’s well-being. However, the final decision rests with the parents, who must buy into your idea and long-term vision for the facility. 

For this type of business, you have a definite target market. And all you have to do is ensure your facility is closer to a busy neighborhood with many children. Find out if the families truly need child care services, why they need these services and the children’s average age. 

Finally, make sure your services are aligned with your target audience. For example, you wouldn’t necessarily succeed with a daycare operating 9am – 4pm in an area where parents typically work long hours in the city and need time to commute back to their neighborhood to pick up their kids.

Same goes for pricing: if you offer high-quality expensive daycare services, make sure your daycare is either located close to offices or in an area where affluent parents work or live.

business plan for day care centre

f) Legal Structure

Finally, your business overview section should specify what type of business structure you opt for. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Daycare Market Overview

In the market overview section of your business plan, you must cover 2 important areas:

  • Market trends : how big is the daycare industry in your area? How fast is the market growing? What are the trends fuelling this growth (or decline)?
  • Competition analysis : how many competitors are there? How do they compare vs. your business? How can you differentiate yourself from them?

a) Daycare Market Trends

How big is the daycare industry in the us.

It’s always helpful to base your business decisions on the latest trends in the US market. For instance, the US daycare market had a value of approximately $54.3 billion in 2019 . And it is projected to grow at an annual rate of 3.9% from 2020 through 2027. 

According to reports, the high number of parents occupying full-time and part-time jobs is a major driving force behind the increasing demand for daycare services. No matter how you look at it, these statistics make the daycare business even more lucrative, provided you get all the basics right through your business plan. 

business plan for day care centre

How big is the daycare industry in your region?

After the US, assess the size of the daycare market in your city or area. Focus on the zone where you plan to offer daycare services.

Naturally, you might not be able to get the data for your specific city or region. Instead, you can estimate the size of your market, for more information on how to do it, read our article on how to estimate TAM, SAM and SOM for your startup . To give you an example, let’s assume you plan to operate in an area where there are already 10 competitors:

As we know the US daycare industry is worth $54 billion today, and there are about 230,000 child care centers , therefore the average annual turnover per child care center is around $235,000.

Now, we can safely assume that the daycare industry is worth $23 million in your area (10 centers).

How fast is the daycare industry growing in your region?

Growth is an important metric for assessing the status of the daycare industry in your region. 

Here if you don’t find information online or via your research, you can calculate growth using the total number of competitors in your area. 

For example, assuming there were 8 daycare competitors in the region in 2018, and 10 in 2022, the annual growth rate is 6% per year.

business plan for day care centre

b) Daycare Competitor Analysis

At the very least, your competitor analysis should answer all the questions below:

  • How many daycare businesses are the area where you plan to open yours?
  • What type of daycare businesses are there: home-based vs. center-based home care, early care vs. early education & daycare, etc.
  • What age range do they specialise in?
  • What services do your competitors offer?
  • What amenities do your competitors have (playground, classrooms, etc.)
  • What’s their average price (daily rate / monthly rate)?
  • What is the child / staff ratio of your competitors?

4. Sales & Marketing Strategy

For some existing daycare facilities, marketing isn’t the most important aspect of running the business. But you’ll probably have to implement a few marketing strategies at the beginning to attract the first families , especially if you’re starting a new daycare facility.

a) Daycare Market Channels

A daycare business doesn’t have diverse marketing channels like retail stores or other businesses. So, this may limit your options when it comes to new marketing channels. 

Apart from word of mouth, other marketing channels include;

  • Social media
  • Online listing (Google business, Facebook business page)
  • Word-of-mouth

business plan for day care centre

b) What are Your Unique Selling Points (USPs)? 

Daycare facilities offer pretty much the same services, and it’s not easy to stand out from the competition. However, a few factors can be useful when evaluating your opportunities in a competitive market, including:

  • Target age group : You may cover a unique age group as opposed to your competitors
  • Opening hours : you may offer longer opening hours to accommodate for different parents’ jobs and availabilities
  • Price : Your services may be cheaper than your competitors
  • Quality & amenities : Quality services and extra amenities (outdoor playground, etc.) will make your daycare facility more attractive vs. competitors
  • Services : Your services may go beyond the standard hands-on learning and kid games 

5. Management & People

The 5th section of your daycare business plan should be about people. It should include 2 main elements:

  • The management team and their experience / track record
  • The organizational structure: what are the different teams and who reports to whom?

a) Management

Here you should list all the management roles in your company.

Of course, the amount of details you need to include here varies depending on the size of your company. For example, a small daycare business run by 1 or 2 persons doesn’t need the same level of detail vs. a large center with 50 children or more.

If you plan on running your business independently, you may write a short paragraph explaining who are the co-founders and/or senior managers (if there are any in addition to yourself). It’s important to highlight their experience in the industry and previous relevant professional experiences.

b) Organizational structure

No matter how many leadership roles there are, you should now explain how you intend to run the company from a management standpoint.

What are the different teams (management, childcare staff, cooking staff, human resources, finance, etc.)?

Note that you should include these details even if you haven’t hired anyone yet. It will show lenders and investors that you have a solid hiring and management plan to run the business successfully.

A great addition here is to add an organizational chart that list all the roles, from Directors to managers, key supervisory roles and employees. Make sure to highlight with reporting lines who manages/supervises whom.

business plan for day care centre

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your daycare is an attractive investment.

There should be 3 sections to your financial plan section:

  • Your historical financials (only if you already operate the business and have financial accounts to show)
  • The startup costs of your project (if you plan to start a new daycare facility, or add capacity to an existing daycare center, renovate your facilities, etc.)
  • The 5-year financial projections

a) Historical Financials (optional)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project.

For a daycare, startup costs are all the expenses you incur before you open the space to your customers. These expenses typically include: renovation costs, equipment and furniture, etc.

The startup costs for opening a child care center depend on various factors such as the location and size of your daycare facilities, the capacity (the number of children you plan to have), the quality of the amenities, etc. 

We’ve identified that it costs anywhere between $130,000 to $490,000 to start a daycare business with 50 children . See below the cost estimates.

Note that these costs are for illustrative purposes and depend on several factors which might not fully apply to you. Let’s first start below with startup costs. 

c) Financial Projections

In addition to startup costs, you will now need to build a solid daycare financial model over 5 years.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

  • How much revenue do you expect to generate over the next 5 years?
  • When do you expect to break even?
  • How much cash will you burn until you get there?
  • What’s the impact of a change in pricing (say 10%) on your margins?
  • What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

  • The number of children over time ;
  • Your expected revenue ;
  • Operating costs to run the business ;
  • Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of members as a small change in these assumptions will have a big impact on your revenues.

When it comes to the costs, consider both startup and operating costs. For more information, read our complete guide here .

business plan for day care centre

7. Funding Ask

This is the last section of the business plan of your daycare center. Now that we have explained what type of daycare services your company would offer, at what price, your marketing strategy, management and people, this section must now answer the following questions:

  • How much funding do you need?
  • What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
  • How long will this funding last?
  • Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

Use of Funds

Any business plan should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment to buy the real estate and do the renovations? Or will it cover the cost of the salaries of your childcare staff and other employees the first few months?

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our daycare financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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Daycare Business Plan

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With the majority of parents staying out of the home throughout the day, the daycare (childcare) business has turned into an extremely bankable one in recent years.

If you have the right resources and more importantly, are good with children. If you have ever dreamt of starting a daycare business , then you are at the right place!

Though certain sections are common to all business plans, you’ll need to customize the outline as per the needs and requirements of your business.

Industry Overview

The U.S. childcare market size was valued at USD 54.3 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 3.9% from 2020 to 2027.

This rise in demand has come from the increasing number of working parents. Earlier parents had to quit their careers to take care of their children, but that has changed due to better daycare facilities.

Now, if you plan on entering this competitive childcare market, you must know that the daycare business is based on the foundation of trust more than anything. Hence, providing quality services and having a clean image in the market is of utmost importance.

Studies show that a lot of daycare businesses fail in their first three years due to reasons ranging from poor management to lagging finances. You can combat all of these and many more troubles if you enter the industry with a well-rounded daycare business plan.

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business plan for day care centre

What is a Daycare Business Plan?

A daycare business plan is an equivalent of a roadmap in your business journey. A plan helps you understand what you’re getting yourself into.

It helps you understand the market, figure out where you stand in it, know your target audience better, and formulate better marketing and financial strategies.

Overall, it makes your decision-making process faster and more effective and prevents you from feeling clueless at any point in your business journey.

Moreover, it also helps you get investors and helps your employees and partners understand what your business stands for. It gives the people in your business a feeling that you have a vision and know what you are doing with your business.

Also, you get to set clear goals that give you a direction to work and put your efforts in.

Why is a Daycare Business Plan Important?

Everything you do for your business should add value to it. And here’s how a daycare business plan can add value to your business:

It gives you a sense of direction

There are several ways you can go with each business decision. A business plan helps you understand what would work best for your business then.

Also, it gives a set of tangible goals to look forward to when you work on your business.

It helps you understand your target audience better

Planning your business gives a better form and structure to your research. Which at the end of the day helps you understand your customers better. It also helps you analyze what it means for your business.

Making and upgrading your product or service for your customers serves the biggest purpose at the end of the day.

It helps you understand your competition better

Imagine there’s a popular daycare center in your city and several parents swear by it. Now, this could mean several things for your business.

You’ll have to pick a different location, know the daycare service’s weaknesses and offer better services by working on that area for your business.

You can also pick the things they are doing right, and inculcate the same in your strategies.

A business plan can help you do all of the above and more through a competitive analysis.

It helps you convince your investors

Though making the right prediction is difficult, having a rough idea of your business’s sales and financial potential is important to get investors on board.

Investors want to know the scalability of your business before they invest in it. A good and realistic prediction of returns makes it easier to convince investors.

And a business plan can help you make realistic financial predictions.

It keeps you updated with the latest business trends

A business plan is a living document that grows alongside your business. It also helps you have a foresight of changing trends and act on time for getting the best results for your business.

This also makes it important for you to keep updating your plan as your business grows.

What does a Daycare Business Plan Look Like?

If you are planning to start a new auto or car repair shop, the first thing you will need is a business plan. Use our sample Daycare Business Plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new auto repairing shop, spend as much time as you can reading through some examples of Children’s & Pet business plans .

Moreover, business plans come in different forms to fit the current state of your business.

Apart from that, there are a few major sections that should be included in every business plan.

Daycare Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

  • Executive Summary
  • Keys to Success
  • Company Summary
  • Timothy Bernard Kilpatrick
  • Start-up Summary
  • Locations and Facilities
  • Service Description
  • Competitive Comparison
  • Sales Literature
  • Fulfillment
  • Future Services
  • Industry Analysis
  • Market Segmentation
  • Market Analysis
  • Market Needs
  • Market Trends
  • Market Growth
  • Business Participants
  • Competition and Buying Patterns
  • Main Competitors
  • Strategy and Implementation Summary
  • Value Proposition
  • Competitive Edge
  • Positioning Statement
  • Pricing Strategy
  • Promotion Strategy
  • Marketing Programs
  • Sales Forecast
  • Sales Programs
  • Strategic Alliances
  • Web Plan Summary
  • Website Marketing Strategy
  • Development Requirements
  • Management Summary
  • Organizational Structure
  • Timothy B. Kilpatrick
  • Carolyn Steverson
  • Candice Harris
  • Management Team Gaps
  • Personnel Plan
  • Projected Profit and Loss
  • Projected Cash Flow
  • Projected Balance Sheet

What to Include in Your Daycare Business Plan?

A good daycare business plan consists of a certain number of well-defined sections, the following sections can help you in writing an excellent business plan.

1. Executive Summary

The executive summary section is one of the most important sections of your business plan because it not only forms the first section of your business plan but also acts as a pitch for potential investors who can provide you with funds for your daycare business.

It consists of your company’s vision and mission, its USP, objectives, and also expected revenues.

Writing the executive summary section of your plan at the very end, so you can sum up your plan properly is a good tip to remember.

2. Services

In this section, you should give out a clear idea of what your services are and whom it caters to. You should define your target market, your niche, the area your services will be extended to, etc.

As a daycare center, you should have a clear idea of the age group you will cater to, what is the preferred location of your target audience, how you come off as a service to your customers, and so on.

3. Market Analysis

Market analysis can be of great help to any business, it can help you understand what you are getting yourself into, who your competitors are, what your client base expects out of you, and where you stand in the current market situation.

Hence, market analysis immensely improves your understanding of the industry you are getting into. In the case of a daycare center knowing the best practices of childcare that exist in the market can be of great help.

4. Web Plan

In today’s internet-based world, most busy parents looking for a daycare center online. Hence, having a strong and reliable web presence is crucial to the success of your daycare business. Thus, including a web strategy in your business plan is necessary.

Always remember, as a daycare service coming off as a trustworthy and reliable institution is crucial for your business to work.

5. Management and Organizational Structure

Having a well-structured management system is especially crucial for a daycare service. It not only helps your business run smoother, but it also makes you look more responsible and reliable in front of the parents or the primary caregivers.

In this section, you should include the structure of your organization, details about people on various levels in your company, a solid system for tracking everyone’s work and progress, the areas your team is excelling at, and the areas your team is lagging in.

6. Financial Plan

One of the chief reasons for several daycare services running out of business is poorly managed finances or running out of funds to keep going.

Planning your finances in the early stages of your business saves you from encountering such a problem later on.

Hence, planning your finances is mandatory while writing a business plan.

Download a sample daycare business plan

Need help writing your business plan from scratch? Here you go;  download our free daycare business plan pdf  to start.

It’s a modern business plan template specifically designed for your daycare business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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Daycare Business Plan Summary

In conclusion, apart from having a good image as an organization, a well-managed team, a clearly defined niche, thorough research of the market and an excellent financial plan is crucial to the success of a daycare business.

After getting started with Upmetrics , you can copy this sample daycare business plan into your business plan and modify the required information and download your daycare business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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How to Write a Business Plan for Starting a Day Care Center

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  • Types of Businesses to Start
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How to Write a Business Plan for a Salon

What are the key elements of a business plan, how to pitch a business plan.

  • How to Write a Business Plan for Starting a Medical Spa Practice
  • How to Write a Business Plan for Indoor Party Centers

Writing a business plan for starting a day care center will serve a few different purposes. First, a business plan may help you organize your ideas for launching your business by identifying the steps you need for business start-up. A day care center business plan will also help you stay on track after you've launched your business and as you move toward meeting your goals. A business plan isn't necessarily set in stone, however, and you can adjust it periodically as your business grows or your plans change.

In addition, a business plan demonstrates you have carefully thought through the operations of your daycare business; it can be used to show lenders why they should help you finance your business.

Create Your Company Description

Create a general overview of your day care business plans. Write a brief summary of your goals and include why you think starting a day care business is a good idea. Include a description of your own experience and qualifications as well as your expectations for staff.

Provide A Market Analysis

Include an analysis of the day care center industry. List information about day care industry tends and estimate day care industry revenue. Include information about the needs of your target market and how its day care needs are currently being addressed. Include information about how you will position your day care center business for success despite the competition.

Detail Your Marketing Plan

Include details about plans for pricing and advertising your business. Plan how you will communicate your day care business' benefits to your target market.

Outline Your Organization and Management

Describe the legal structure you will choose for your business. For example, if you will be the sole owner of the day care center, you may start a sole proprietorship. If you will have a partner, however, you will have to form a partnership. You may even choose to establish your business as a separate entity from yourself by forming a corporation.

Add information about managing your business. Include details about hiring and training employees. Make sure to cover the legal necessities of a daycare business, such as site safety, emergency care, staff qualifications, and other requirements in your area.

Lay Out Your Finances

Your plan should include a statement of how the business will run financially. That is, what you anticipate as your start-up and operational costs and the type of income you anticipate from the daycare's clients or from other sources of funding such as grants, donations or community assistance.

Make Your Funding Request

Determine what you will need in terms of financial assistance to get your business off the ground. Include a description of the location you've chosen for your day care center, and the equipment and furnishings you will need.

Lenders will want to review your day care business plan if you apply for a loan. Use your business plan to demonstrate how your business will stand out among your competitors, why you should run it and why now is the right time to start a day care center.

  • Entrepreneur: Elements of a Business Plan
  • Rasmussen College: Your Step-by-Step Guide to Opening a Daycare
  • Lenders may review your day care business plan if you apply for a loan. Use your business plan to demonstrate how your business will stand out among your competitors, why you should run it and why now is the right time to start a day care center.

Jordan Meyers has been a writer for 13 years, specializing in businesses, educational and health topics. Meyers holds a Bachelor of Science in biology from the University of Maryland and once survived writing 500 health product descriptions in just 24 hours.

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ProfitableVenture

Daycare Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Education Sector

Daycare Business

Do you want to start a daycare (childcare)? and need to write a business plan? If YES, here is a sample daycare business plan template & feasibility report.

Okay, so we have considered all the requirements for starting a daycare center . We also took it further by analyzing and drafting a sample daycare marketing plan template backed up by actionable guerrilla marketing ideas for child care centers.

It is the duty of every parent- especially the mothers to see to it that their kids are properly taken good care of. However, there are times when circumstances just makes this totally challenging, as there may not be the luxury of time available to them to sit closely with their children and monitor them.

That is one of the reasons why parents would always want to take their kids to a daycare center. The question therefore is: how reliable are day care centers in seeing that the children are totally given the best of care and attention?

Before the daycare businesses came into existence, parents who could afford the luxury of hiring a home nanny whom they thought were vast and experienced in the care of children. However, as things changed and the crime rates in some areas went haywire-where some folks gained entrance into the houses of people for the sole aim of robbing them, the daycare trend took over.

And ever since the emergence of this trade, we have come to see more and more people who have a penchant for kids, dive into the industry just to tap into the profits that the day care business offers.

What Does It Take to Start a Daycare Center Successfully?

More often than not, in some parts of the world we find that some folks begin a day care business after they have been successful with running a school.

Conversely, that is not to say that one couldn’t possibly start only a day care business. As a matter of fact, starting first with a day care center, helps to start on a right footing so that you are able to determine whether you will be able to have a school as an addendum business in the near future.

So, if you have scaled the hurdle of being in love with children, then starting your own day care business might be a smart business choice. Having this wish or aspiration as it were on the front burner of your mind, isn’t all that is required.

As a matter of fact there are legal necessities that you have got to tidy. As well as draw up a comprehensive business plan that will guide you as you start out and trudge ahead in business.

A Sample Daycare Center Business Plan Template

1. industry overview.

Day care business is one of the easy businesses that just about anyone who has a flare for kids could readily start. There is no doubt that as the zeal to make more money heightens with parents, then the need for newer and more seasoned day care centers to arise becomes highly important.

That is why investors are beginning to leverage on the high demand for day care services, to establish even better ones. As such, in all of the states of America, there is hardly one neighborhood that doesn’t have a day care centre.

The business is indeed a lucrative one and those who are into the trade of establishing them are smiling to the banks every day. However, that is not to water down the fact that loads of work has to be put in place in order to satisfy parents who use these daycare centers.

Whether you are looking to start a small or big one, truth is that there would always be the need to have kids put in these places. This is why some folks who do not have the wherewithal in terms of finance may choose to start from their homes, whilst some may want to start from very little spaces they get.

Over and above one bright ray of light as it concerns the day care business is that there is always room for expansion, as one learns on the job and then improves the services that one renders.

Setting up a day care business means that one would be dealings with little babies, and as such, care have got to be taken in order to hire not just mere employees, but to hire those who are way too vast in the trade and are capable to help the day care business to a great level.

There will always be the need to garner plenty of knowledge that would be useful in giving the children the very best of experience.

The returns on investment that one attracts here is so huge that one have just got to keep at doing those things that would continue to guarantee repeat customers as well as give the kids whom are being cared for a growth experience that they wouldn’t forget in a hurry.

2. Executive Summary

Tiny Thoughts ® is a foremost day care center in Ohio, America. It has the best of aims to prepare its pupils to come out tops in all they do- given that they would be the leaders of tomorrow. We propose to achieve this and more by merging an all exclusive curriculum custom-made explicitly for children.

Our type of curriculum is enriched with extra super child care services. This is nothing like what our competitors have to offer because we offer forward-thinking technology plans, after-school training, and activities that help the kids grow better. Activities such as; arts, dance, crafts, gymnastics, theatre, sports, amongst others.

Tiny Thoughts is a privately held establishment run by its owner, Mrs. Mary McGregor. Mrs. Mc Gregor has 10years of Educational training experience. As a matter of fact   she is a master’s degree holder of child psychology. So that when it comes to child management and psychology, she is always at the top of her game.

Her advanced degree in child psychology and interest in kids is the driving force behind the establishment of Tiny Thoughts . She will be supported in daily operations by another educationist and psychologist, amongst other employees.

With the inflation bane that continues to affect the American economy, there will always be the need for parents to work more than one job per time for additional income. It is for this reason that there will always be a need for excellent child care services.

With the least population of Ohio which is at 11.59 million people, there will always be the need to have capable day cares to cater for them. That is why we have decided to position our establishment so as to meet the teeming needs of parents who want the very best for their children.

At Tiny Thoughts , we leave no stone unturned to see that we put in place high- quality child care services, thorough bred educated instructors, as well as personal skills that will allow us compete well in our market . We shall also offer competitive price as part of one of our success factors so that we can attract all and sundry to our prestigious day care center.

Furthermore, we know the importance of having an excellent rapport with parents, and the community we serve, which is why we train and even retrain our workforce so that they bring the best of skills and attitude to the table at all times.

With the aforementioned points in place, we therefore do not intend to look for long before we attract customers as we go all-out to build a loyal customer base by offering the kids at the day care a very hospitable- yet educating experience in a comfortable and beneficial environment.

3. Our Products and Services

At Tiny Thoughts ®, we are first all about making the day care center a very conducive one. We are aware of the fact that some parents might hold back when it comes to the type of vicinity their kids will be put in; which is why we have taken time to research and learn the various ways to build a world class establishment. This we have done in the state of Ohio. Our services include the following;

  • Taking care of the infants, toddlers and preschoolers
  • Cleaning the infants and toddlers up whilst they are dirty
  • Have all kids well fed when hungry
  • Keep them active with some extracurricular activities

4. Our Mission and Vision Statement

  • Our vision is to build a most standard day care business, where parents can unreservedly leave their kids in our hands, and be totally satisfied in the long run.
  • To establish an international standard day care center where kids can be groomed and prepared to be leaders of tomorrow.

Our Business Structure

Big establishments know that one of the greatest selling points is to have the best hands. As such; we plan to only hire the most competent and seasoned employees. This is particularly important since it is uttermost on our minds to run our day care center with an intercontinental approach. This means that we are looking to have all races enroll in our establishment.

We came up with outright buying our own building, instead of having to make do with a leased one. This is why we have resolved to have quite a number of employees to be on our payroll because of the ample room we have. Therefore, below is the type of structure we look to build our business on;

  • Chief Executive Officer (Owner)
  • Assistant Director

Administrative Assistant

  • Accountants / Cashiers
  • Infant room Supervisor

Toddler Room Supervisor

  • Preschool room supervisor

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Responsible for providing direction for the business
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals.
  • Responsible for recruitment
  • Responsible for payment of salaries
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Responsible for managing the daily activities in the day care center.
  • Ensures that all orders and guidelines given by the CEO are adequately carried out.
  • Interfaces with other employees
  • Reports to the Chief Executive Officer
  • Attends to Parent’s complaints and enquiries
  • Prepares budget and reports for the organization
  • Responsible for Training and Development in the day care center
  • Any other duty as assigned by the CEO

Assistant Director:

  • Responsible for assisting the director to carry out all that have been assigned by the CEO.
  • Ensures that all employees carry out the agenda of the day care center to the latter.
  • Responsible for quality control
  • Any other duty as assigned by the CEO and director

Accountant / Cashier:

  • Receives payments on behalf of Tiny Thoughts®
  • Issues receipt to customers
  • Prepare financial report at the end of every working Month
  • Handles all financial transaction on behalf of Tiny Thoughts
  • Interfaces with our bankers
  • Responsible for payment of tax, levies and utility bills
  • Any other duty as assigned by the CEO / Director
  • Assists the director in seeing to it that all the kids are thought are line
  • Ensures that all documents are safely kept
  • Handles customers enquiries and keeps all records of kids and employees well
  • Any other duty as assigned by the director

Infant Room Supervisor

  • Responsible for supervising the nannies that take care of the infants.
  • Makes sure that everything is in place
  • Reports to the Director
  • Relates with the nannies and cleaners
  • Carries out any other task as assigned by the superiors
  • Responsible for supervising the nannies that take care of the toddlers.

Preschool Room Supervisor

  • Responsible for all the kitchen activities at the center
  • Attends to the foods of all kids
  • Takes orders that will advance the establishment from the Director, CEO and others.
  • Responsible for cleaning the day care facility at all times
  • Washes the mugs, spoons and other utensils
  • Ensures that toiletries and supplies don’t run out of stock
  • Cleans both the interior and exterior of the daycare
  • Any other duty as assigned by the day care director.

6. SWOT Analysis

Our purpose of starting a daycare center is to compete favorably with other schools, and surpass them. We have also decided to have a test run on the business for a period of 5 years. This is to know how we are able to fare during this time, as well as to determine if we are to devote more resources, additional money, for the expansion of the business.

We shall start with just one center for now and then see how we are able to succeed despite the myriad of competition. In arriving at all these, we deemed it fit to employ the services of an expert who has helped us with conducting a SWOT analysis.

It was expedient that we did this, so as to ensure that we have what it takes to run a day care school and perhaps even build more branches. Here is a summary of the result from the SWOT Analysis that was conducted on behalf of Tiny Thoughts;

Our area of strength to a very large extent lies in the fact that the owner of our day center is well versed in child psychology. This is really a positive one for us, because we believe that we shall be able to really handle the kids that are put in our care, unlike some folks who have no background knowledge in education and psychology.

The perceived weakness for our business could be that we are starting out as newbies and it really isn’t easy to convince people to come and enroll their kids at the day care. This is why we have got to really work hard at our advertising strategies, as well as solidify how to seal deal with our potential clients.

  • Opportunities:

The fact that we intend to lower the fees involved in enrolling a kid at our daycare, seems to be one of the ways at which we will attract all and sundry. We are certain without a doubt that with the quality of our employees and services, we shall attract clients that would be highly satisfied with us.

Some of the threat our business may likely faced with might be a scenario where a kid has an illness and yet comes to the center. There may be likelihood that such an epidemic might spread to other kids. As such; this might not be nice because that might make some guardians want to withdraw their kids to a safer place.

7. MARKET ANALYSIS

  • Market Trends

In the united states of America, you will quite agree that there are lots of guardians who need to work almost round the clock to eke out a living for them and their families. As such and as stated earlier, the need for someone to care for the kids whilst working in non negotiable.

That is why there will always be the need to have kids at day care centers. Furthermore, there is no indication that the day care trade would plummet anytime soon based on the statistics of parents who work that is found by experts.

There is always a boom in this business all year round, as the weather or state of the economy has nothing to do with it. That is why the services being rendered by us have to be top notch at all times. We do not want to be found wanting in any area, that is why we are sure to invest a lot in training our employees at all times.

Our positioning, as is always the case of determining the amount of customers that patronize a business is of importance to us, which is why we have chosen to start from Ohio.

Despite the fact that there loads of day care businesses who have done so well for themselves in the past, we plan to not leave any stone unturned as we continue to work at better ways to make our services known to people. Part of the marketing and sales strategies to be adopted includes;

  • Commencing operation by first having a grand opening. This means that we will have a big party where we can invite those who reside in the neighborhood we propose to start out  from, as well as those from other neighborhoods.
  • Ensure that we have all our professional employees present at the party and if possible show them off.
  • Make use of attractive handbills to create awareness and also to give direction to potential clients
  • Position our signage / flexi banners at strategic places around the vicinity.
  • Advertise our day care center on business directories, magazines and yellow pages.

8. Our Target Market

When it comes to the day care business, of course our target market is the guardians and parents. That is why we have got to primarily focus on these types of people. The people we intend offering our services to are;

  • Corporate Executives
  • Business People
  • Sports Men and Women
  • Government Officials
  • Low class, middle class and high class people

Our Competitive Advantage

Going by the state where we have chosen to start from, we found that there are no day care centers in the vicinity we are, which is why if we are able to do our due diligence, and we are able to attract a crowd of customers there, then there is the possibility of hitting success in the first few years of operation.

We plan to run a standard day care business which is why we hired one of the leading business consultants to work with us in setting up our business. The business consultant we have hired has over 10 years of experience in business management and has successfully opened several day care businesses in major cities across the United States of America.

So far, there are clear indications that with what he has brought up, we shall no doubt do well and even surpass other businesses in the state. We believe that for us to have hired one of the experts in town, without a shadow of doubt, we will do exceptionally well when eventually we kick start.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Our sources of income for Tiny Thoughts is limited to the services of taking proper care of the children that have been placed in our care. However, we are not relenting when it comes to   opening different branches.

10. Sales Forecast

It is important to state that our sale forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. Below is the sales projection based on the location (Ohio), which already has an avalanche of day care schools.

  • 200 pupils per session

N.B : Our annual projected sales for TinyThoughts ® is put at about $4,800-$16,500, or $400 -$1,375 monthly per child. Over and above, as Tiny Thoughts gets established, our net profitability will likely witness a boom as that indeed is what we project.

  • Marketing Strategy and Sales Strategy

Tiny Thoughts will throw a grand opening party when it does start. One of the very unique things that we plan to do on that day is to; unveil some of the professionals and junior employees that we have. That is those who will help us get things started on the right footing.

Why is this a big one for us? It is a big one for us because parents will have an opportunity to interact with this people, as well as ask all the questions they want.

The location of our day care center is strategically positioned to attract ample customers with little or no effort from our own part, which is why we do not make provisions for marketing and sales executives in our company’s structure. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate a high number of people;

  • Position our greeters to welcome parents and the kids as they arrive
  • Create a loyalty plan that will enable us reward our regular customers
  • Position our flexi banners at strategic positions all around the vicinity
  • Advertise our Tiny Thoughts Business on yellow pages magazines
  • Partner with child’/ education agencies to refer parents who are looking for a good day care center

11. Publicity and Advertising Strategy

When it comes to publicity and advertising, we have a low budget for it simply because our business is located in a place that can easily attract the numbers of customers we would need with little or no stress on our own part.

But for the fact that we hope to someday in the near future have more branches, we have decided to create a budget for publicity and advertisement for the major aim of introducing our brand in the market place. Everything that we will do in this regard is geared towards communicating our brand. Here are the platforms we intend leveraging on to promote and advertise our business;

  • Place adverts on both print (travel magazines) and electronic media platforms
  • Sponsor relevant educational community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
  • Install our Bill Boards on strategic locations
  • Distribute our fliers and handbills in target areas where guardians can be found.
  • Position our Flexi Banners at strategic positions around the airport

12. Our Pricing Strategy

When it comes to fixing prices for our services, we will ensure that we set pricing in line with what is available in the day care trade.

We are very aware that we have got to lower our price so that we will be able to attract customers like never before as we seek to gain recognition as newbies. When this is achieved, then bottom line is that our customers will derive real satisfaction when they bring their kids to us.

  • Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

  • Payment by cash
  • Payment via Point of Sale (POS) Machine
  • Payment via online bank transfer (online payment portal)
  • Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches.

13. Startup Expenditure (Budget)

This is the key area where we will spend our start – up capital;

  • The Total Fee for Registering the Business in Ohio: $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,300.
  • Marketing promotion expenses for the grand opening of Coffee4All® in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • Cost for hiring Consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $52,800.
  • Cost for building remodeling – $25,000.
  • Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory – $16,027
  • The cost for office supplies (one month) – $287
  • Daycare hardware ( bins, utensil rack, shelves, food case ) – $3,720
  • Cost for client reception area equipment ( plates, glasses, flatware ) – $3,000
  • Cost for equipment ( cash register, security, ventilation, signage ) – $13,750
  • Office equipment and furniture – $3,600
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
  • The cost of Launching a Website: $600
  • The cost for our opening party: $5,000
  • Miscellaneous: $2,500

We would need an estimate of about $100,000 to successfully set up our day care business. The amount includes the salary of all employees and the CEO (Owner) for 3 months.

Generating Funding / Startup Capital for our Daycare Business

Tiny Thoughts is a private business that is solely owned by Mrs. Mary McGregor and she does not have the intention of welcoming any external partners except immediate family members which is why she has decided to restrict the sourcing of her start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B : We have been able to generate about $60,000 ( Personal savings $40,000 and soft loan from family members $20,000 ) and we are at the final stage of obtaining a loan facility of $80,000 from our bank. All the papers and document has been signed and submitted, the loan has been approved and any moment from now our account will be credited and we will be able to execute all the things that needs to be executed.

14. Sustainability and Expansion Strategy

Our plans of establishing Tiny Thoughts is basically to test – run the Day care trade. We have decided to start our first outlet in a competitive location like Ohio.

Although we don’t have the intention of running chains of day care centers now, but we have plans to set up branches in years to come. It is pertinent to state that we shall not allow our standard operating process to drop so that we do not lose our loyal customers.

Check List / Milestone

  • Business Name Availability Check:>Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Obtaining of health permit : Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Purchasing a building and remodeling it: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • writing of business plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, beddings, toys, electronic appliances, office appliances and other equipment: In progress
  • Creating Official Website for the day care center: In Progress
  • Creating Awareness for the business both online and around the neighborhood of location: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress

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Daycare Business Boss

PDF Templates: Your Starting Point for Senior Day Care Business Planning

Starting a senior daycare center is a noble endeavor with the potential to improve the lives of older people and their families significantly. Embarking on this journey, however, necessitates more than just compassion; it necessitates precise planning, smart thought, and a clear itinerary. This is where the effectiveness of a well-written business strategy comes into play.

To effectively start your business planning process, you should begin by accessing PDF templates from websites like Bplans, Score, and Small Business Administration (SBA). These platforms offer a range of resources to assist in creating a comprehensive business plan tailored to your senior day care center venture.

In this article, we’ll look at how a business plan in PDF format may help guide the formation and growth of senior day care centers, and how these templates can help shape the future of these vital caring institutions.

Table of Contents

The Importance of a Business Plan

PDF Templates: Your Starting Point for Senior Day Care Business Planning

A carefully prepared business plan is the foundation of a senior day care center, providing a detailed blueprint for achievement. This comprehensive blueprint encompasses a plethora of critical components that jointly determine the center’s journey. A well-structured business plan orchestrates all of these facets into a coherent whole, from articulating overarching goals to delineating intricate strategies, from defining the precise target market to conducting a thorough analysis of competitors, from projecting financial trajectories to meticulously detailing operational intricacies.

A strong business plan serves as a constant guiding companion throughout the senior daycare center’s lifecycle, in addition to its immediate purpose of securing funds. It evolves from a static document to a dynamic instrument that enables decision-making, measures progress, and remains flexible to the market’s ever-changing contours. With the ups and downs of the corporate landscape, this blueprint serves as a sentinel, providing a steady point of reference against which adjustments can be calibrated.

Every component of the company plan serves an important purpose. The clarity of expressed goals fuels motivation and direction, strategy definition provides a framework for action, target market identification sharpens focus, and competition analysis findings pave the path for strategic distinction. Financial projections provide tangibility to ambitions and guide fiscal decisions, while operational details guarantee that vision is seamlessly translated into practice.

Read more about: Laying the Foundation: How to Construct a Daycare Business Plan

Starting Right: Accessing PDF Templates

To begin the process of creating a business plan for your senior day care center, you must first equip yourself with the necessary resources. The first step in this quest is to obtain the necessary resources to streamline your efforts. A plethora of websites emerge as invaluable companions in this journey in the digital era, assisting entrepreneurs from many sectors to explain their objectives concisely. Prominent platforms such as Bplans, Score, and the Small Business Administration (SBA) acknowledge the distinct demands of various businesses and provide a profusion of PDF templates precisely crafted to meet these specific criteria.

The usefulness of these templates stems from their ability to distill the complex art of business planning into an organized framework. This not only speeds up the process but also provides a large canvas on which to paint a rich portrait of your senior day care center’s goals. By accepting these templates, you go on a trip with a road map, guaranteeing that no critical aspect is overlooked inadvertently.

These templates help you save time, which is a valuable resource in the world of entrepreneurship. They efficiently divert your efforts away from format structuring and into content production, allowing you to focus your creative energy on developing the intricacies of your senior day care center’s distinct personality.

The commitment of these platforms to assisting entrepreneurs goes beyond basic templates. They frequently offer additional tools, guidelines, and even mentorship possibilities, improving your understanding of the complex environment of company planning. This understanding enhances your capacity to get the most out of the templates, resulting in a business plan that smoothly blends organized professionalism with personalized innovation.

Bplans: Tailored Templates for Every Business

Bplans is a well-known and vital tool that serves as a lighthouse for entrepreneurs looking for a plethora of information to help them streamline their business planning efforts. One of its unique products is a vast collection of PDF templates catering to a wide range of businesses, including the specialist domain of senior daycare. These precisely developed and maintained templates emerge as powerful tools to assist the complex process of company planning, while assiduously addressing the particular requirements of each sector.

Entrepreneurs interested in elder daycare will find a treasure trove of pre-structured templates within the bounds of Bplans’ repository. These templates include not only a practical format but also the priceless value of pre-filled samples and well-articulated guidelines. This combination of structure and content serves a twofold purpose: it not only prepares entrepreneurs to understand the blueprint of a business plan, but it also gives them a tangible, real-world understanding of the complexities involved.

When business owner downloads a senior daycare center business plan template on Bplans, they are greeted with an arrangement of sections that have been precisely chosen to cover the gamut of critical elements. These sections cover the vast landscape of business strategy, including executive summaries that are succinct yet impactful, in-depth market analyses that serve as compasses for strategic navigation, keen insights into competitors that facilitate differentiation, innovative marketing strategies that resonate with the audience, operational complexities that turn vision into practice, and the all-important financial projections that breathe life into aspirations.

The genius of these templates lies in their capacity to serve as nimble launchpads. They release entrepreneurs from the time-consuming work of building the plan itself, allowing them to focus their resources on the fine art of customizing. This artistic endeavor entails painstakingly weaving the various threads of their particular corporate concept into the tapestry supplied by the template.

Score: Expert Mentorship in Template Form

PDF Templates: Your Starting Point for Senior Day Care Business Planning

Score, a nonprofit organization dedicated to the advancement of entrepreneurs, is a steadfast supply of not only tools but also customized mentorship, forming a reservoir of support aimed to guide individuals toward growth in their entrepreneurial efforts. A virtual treasure trove — a collection of business plan templates spanning a wide range of industries, including the specialist domain of senior day care centers — is at the heart of Score’s diverse offers. These templates are not arbitrary constructs; seasoned business executives and mentors have rigorously vetted them to ensure that a solid foundation of knowledge supports your journey.

The intrinsic usefulness of Score’s templates is in their versatility. These templates are more than just placeholders for information; they also function as vehicles for comprehension and empowerment. As you navigate the maze of company planning, you will be met with prompts and elucidations, each meant to reveal the value of each specific section. This pedagogical method is especially useful if you are still in the early phases of your business acumen. The step-by-step direction provided by these templates not only results in a clear business plan but also conveys knowledge, encouraging a comprehensive understanding of the process.

Score’s templates serve as compasses for anyone entering into the uncharted realm of business planning, guiding beginners with steadfast precision. The activity’s intricacy is reduced to small chunks, making the seemingly overwhelming process approachable. The insights generated by the combination of professional experience and mentorship provide a lifeline of confidence and direction. Even if the complexities of writing a business plan remain a mystery, these templates serve as a bridge of understanding, a framework upon which you can safely build your narrative.

Read more about: Inclusive Childcare Training: Childcare Training Topics Explored

Small Business Administration (SBA): Government-Backed Guidance

The Small Business Administration (SBA), a vital United States government agency defending the cause of small businesses and fledgling startups, is an unrelenting supporter of entrepreneurial initiatives. Its internet domain is a treasure trove of materials, and its business plan templates shine as beacons of practical instruction within this treasure trove. In the world of senior day care centers, these templates play a vital role, meticulously created to match industry standards and provide a solid framework for developing your business strategy.

The SBA’s templates are distinguished by their emphasis on financial projections and analysis. The trajectory of any firm is inextricably linked to its financial health, and these templates are aware of this fact. They go beyond typical company plans to guide entrepreneurs to a realm of financial clarity and strategic accuracy. These templates provide a panoramic picture of the financial landscape your senior daycare center will traverse by guiding you through the difficult process of creating realistic revenue predictions, accurately calculating expenses, and conducting complete break-even analysis.

The importance of this financial factor cannot be emphasized, particularly when pursuing possible investors, lenders, or collaborating partners. These stakeholders, who have a vested interest in your enterprise, are looking for more than simply visionary prose; they want clarity on the financial viability and profitability of your senior daycare center venture. The SBA’s templates address this underlying need by giving entrepreneurs the tools they need to describe and substantiate their financial expectations.

Customizing the Template to Your Vision

While PDF templates are available on platforms such as Bplans, Score, and SBA, it’s critical to know that your senior day care center’s business plan must be a direct expression of your unique vision and objectives. These templates are useful guides that provide a structured beginning point, but they should be viewed as changeable frameworks that will be transformed to accurately express the spirit of your endeavor.

The flexibility of these templates is what makes them so appealing. As you engage on the road of customizing the template to fit the identity of your senior day care center, you are challenged with a twin responsibility: to honor the framework provided by the template while imbuing it with the spirit of your particular aims. Every part, from executive summaries to financial projections, has the opportunity to be customized to correspond with the specific services of your center, the nuances of your chosen target group, and the complexities of the geographical area in which you operate.

This customization process is similar to sculpting in that it entails chiseling away the unnecessary to uncover the essential essence of your business concept. Each change to the template should be thoughtful, and motivated by a thorough grasp of your senior day care center’s capabilities, values, and competitive advantage. It’s not just a matter of filling in the gaps, but of breathing life into the template’s structure and transforming it into a live document that pulsates with the energy of your idea.

Expect a dynamic interplay between the template’s structure and your company’s unique characteristics as you go through this customizing process. The template serves as a framework, ensuring that no critical aspect is overlooked, while your thoughts and creativity lift it from a generic outline to a unique tale. This collaboration guarantees that your senior day care center’s business plan becomes a powerful instrument that not only explains your plans and projections but also captures the very essence of your entrepreneurial adventure.

Frequently Asked Questions

PDF Templates: Your Starting Point for Senior Day Care Business Planning

Why is a business plan necessary when establishing a senior daycare center?

A business strategy acts as a road map for the growth of your senior daycare center. It contains information about your objectives, strategy, target market, financial estimates, and operational data. It is critical for collecting finance, making educated decisions, and reacting to market changes, ensuring your venture’s long-term productivity.

How can use PDF templates from websites such as Bplans, Score, and SBA aid in the creation of a business plan?

These platforms provide ready-to-use business plan templates designed specifically for senior daycare centers. These templates provide a systematic framework for you to follow as you go through essential parts like market analysis, marketing strategies, operational plans, and financial predictions. They save you time and ensure that you cover all of the important areas of your company strategy.

Can I modify the templates to reflect the particular concept of my senior daycare center?

Absolutely. While the templates are a good starting point, you should customize them to match your center’s offerings, target demographic, and location-specific characteristics. Customization enables you to highlight your center’s unique assets while also aligning the business plan with your aims and values.

To learn more on how to start your own daycare checkout my startup documents here.

The information provided by DaycareBusinessBoss.com (“The Site”) is for general informational purposes only. All information on the Site is provided in good faith, however, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site. Under no circumstance shall we have any liability to you for any loss or damage of any kind incurred as a result of the use of the Site or Reliance on any information provided on the Site. Your use of the Site and your reliance on any information on the Site is solely at your own risk.

This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs. Terms and Conditions. (https://daycarebusinessboss.com/terms-conditions/)

business plan for day care centre

Meet Shawn Chun: Entrepreneur and Childcare Business Fan.

I’m a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online daycare business resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a childcare business owner, I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.

That’s why I created Daycare Business Boss: I want to help childcare business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.

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Child Day Care Services Business Plan

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Kid's Community College

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Kid’s Community College® aims to prepare its students to excel as young leaders of tomorrow by combining an exclusive collegiate-based curriculum tailored specifically for children with enhanced, first class child care services. Unlike our competitors, we offer advanced technology programs, after-school tutoring, and activities such as arts and crafts, dance, theatre and gymnastics, all in one location.

Kid’s Community College is a privately held corporation run by its owner, Timothy Bernard Kilpatrick, Sr. Mr. Kilpatrick has 17 years of Executive Management (VP) and Budgeting experience, and extensive experience with budgeting methodologies and strategic planning, including the Balanced Scorecard approach. His advanced degree (and interest) in computer science is the driving force behind our technology component. He will be supported in daily operations by an industry consultant, a campus director, and a VP of educational operations, all with extensive experience in child care fields.

With inflation continuing to rise each year, the typical American family now requires dual or supplemental incomes. This trend has created a need for quality child care services. The population growth rate in the Riverview area of Hillsborough County is now over 14.6%, leading us to anticipate expanding market potential for this industry in our local area. Price, service, certification and reputation are critical success factors in the child care services industry. Kid’s Community College® will compete well in our market by offering competitive prices, high-quality child care services, and leading-edge educational programs with certified, college-educated instructors, and by maintaining an excellent reputation with parents and the community we serve.

This is a daycare business plan for Kid’s Community College®, which will focus on two subdivisions: ‘Lake St. Charles’ and ‘The Villages of Lake St. Charles,’ which are new upscale community developments within a 2 square mile radius, boasting over 900 new homes. Our target customers are dual-income, middle-class families who value the quality of education and child care we provide for their children, ages 4 months to 12 years.

We will open for business starting with an initial enrollment of 13 students. We project healthy revenues by the end of the first year, and expect to nearly triple that by the end of Year 3. Our biggest operating expenses will be compensation at industry standard rates for our highly-qualified personnel, and rent on our facilities, improved for our purposes during the start-up period. We would like to grow into four campuses, eventually, but growth is planned conservatively, to be financed from existing cash flow as we go. We anticipate a net profit beginning in our second year.

To these ends, we are putting significant investment in the business, and are seeking a matching amount in the form of an SBA loan.

Child day care services business plan, executive summary chart image

“Some of the best years in life are the time spent as a child and later our collegiate years…” As working adults in a fast paced society, we sometimes forget just how precious and  fleeting those years are.

With that in mind, imagine an alternative to traditional infant, day and after school care that not only met your child care needs, but also provided an activity based learning environment that mirrors those used at colleges, universities and vocational centers around the nation.  A college community of professional care givers with the credentials to not only enhance your child’s early social and motor skills, but to also teach them advanced studies in the arts and sciences found at institutions of higher learning.  A collegiate-based curriculum tailored specifically for children, taught in a fun, nurturing care giving environment.

Now imagine this at a cost less than that of the combination of conventional day care and specific interest based children programs.

Kid’s Community College® is a start-up comprehensive community college exclusively for kids ages 4 months to 5 years and 1st through 5th grades.  The College dedicates its efforts and resources toward ensuring top-rated care giving services coupled with a high-quality activity based learning environment tailored for children in these age groups.  The College will respond to the needs of its parents and students with excellent care-giving and instruction, an advanced curriculum, flexible programs, local community involvement and business partnerships.

The College has a strong commitment to accessibility and diversity.  Its open door policy embraces all who desire to provide a better quality of care, preparedness and education for their children.  The College works to provide affordable, first-class care giving and education by providing a broad range of integrated programs and services and innovative learning approaches.

The College is committed to taking a leadership role in child care services, higher learning, community services and promoting cultural diversity.  Kid’s Community College® directs its activities towards student success.

  • Sales increasing to almost double first year sales by the end of Year 2.
  • Maintain a high raw gross margin by the end of Year 1.
  • Open second campus by the end of Year 1.
  • Begin franchise effort by end of Year 3.

Keys to Success

The keys to success for KCC are:

  • Marketing: differentiating KCC’s care giving and educational services from traditional daycare offerings and interest activity programs.
  • Service quality: care giving and educational programs provided by degreed and certified educators, child care workers, tutors and subject matter industry professionals in a technologically advanced first-class collegiate environment.
  • Reputation: maintaining a highly regarded reputation for excellence in care giving, education and community involvement and being the employer of choice in our market for child care and educational talent.
  • Profitability: controlling costs and managing budgets in accordance with company goals, adhering to strategic business plans for growth and expansion and reinvesting in the business and its employees.

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Company summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

Kid’s Community College® – Lake St. Charles Campus will be located in Riverview, FL.  The College will employ six fundamentals that will serve as the driving force for the services offered:

  • Premier Care Giving Services
  • An Activity Based, Children Structured Collegiate Curriculum
  • Advanced Technology and Developmental Programs
  • Trademarked General and “Continuing” Education Mentoring and Tutoring 
  • Learning Services
  • Community Advancement and Involvement

The Lake St. Charles campus is a newly constructed, 3,600 square foot facility in the Lake St. Charles Medical Plaza and will be developed meeting strict KCC design standards, under close supervision of Hillsborough County child care Licensing.

Start-up Summary

The college founder and president, Mr. Kilpatrick, will oversee fiscal responsibility, employing an independent CPA for financial oversight.  A Campus Director will be hired to handle day-to-day operations of the facility and will work collaboratively with the silent partners and other campus personnel to ensure a successful business venture.

As reflected in the table below, the estimated start-up costs for KCC will be $39,450.  These costs will be financed solely by the owners’ personal cash funds and optional credit lines.  An anticipated $60,000 SBA guaranteed 5-year loan will be used as working capital.  Future expansion, growth and franchising strategy will be self-financed.

Child day care services business plan, company summary chart image

Company Locations and Facilities

Kid’s Community College® will begin with one location – a newly constructed 3,600 square foot campus in Riverview, FL located near the entrance of the upscale Lake St. Charles subdivision.  The campus is in the Lake St. Charles Medical Professional center and will boast separate halls for arts and crafts, theatre and dance, information technology, library and quiet study, tutoring, infant care and a cafeteria.  The play area will be adjacent to the campus and will be securely fenced and furnished with appropriate playground equipment and facilities. 

Three additional campuses are planned in the rural Tampa marketplace over the next four years.  Franchise start-ups will be offered in the Orlando, Miami and Jacksonville marketplace after 2 years of successful operation.

Company Ownership

Kid’s Community College® is a privately-held proprietorship owned in majority by its founder and president, Timothy Bernard Kilpatrick, Sr.  There are also two silent partners, neither of whom owns more than 10%, but will be active participants in daily operations, management decisions and consulting, though they do not own a financial stake in the company.

Once the operation reaches its anticipated growth and profitability goals, the college plans to franchise and will re-register as a limited liability company or as a corporation, whichever will better suit the future business needs. 

Kid’s Community College® offers upscale child care services and an advanced collegiate based curriculum designed for kids ages 4 months to 5 years and 1st through 5th grades.  Normal operating hours will be 6:45am to 6:30pm, Monday through Friday – with observance of all major legal holidays.  Early drop-off service will be offered as needed. 

KCC exists to provide Premier child care services that are aimed at enhancing traditional day care methodologies and integrating extracurricular interests (such as arts and crafts, dance, theatre and gymnastics) into one comprehensive program.  Our activity based collegiate curriculum is specifically tailored for children and mirrors the arts and sciences taught at colleges, universities and vocational schools around the nation.  We offer state-of-the-art technology programs in leading-edge facilities which help prepare students for the technology age in which they live.  Our general and “continuing” education programs help mentor and tutor students through “main school” homework assignments and provide a base of understanding and interaction to ensure success in future educational endeavors.  Finally, our developmental programs reinforce basic social, listening, independence and motor skills and prepare students for future related interaction.

All of our learning and child care services employ technology, partnerships, professional services and other activities that support and promote higher learning.

In addition to the extensive services and curriculum offered, each campus will also offer weekend specialty classes for children and adults and planned family activities in the community it serves.  KCC will also offer children birthday party hosting services, providing great activities for kids and an easy experience for parents.  Activity instructors will be assigned for these events and will lead the activities, ensuring a memorable celebration. 

Service Description

Upon its opening, Kid’s Community College® will offer four basic services in the Lake St. Charles community:

  • Full-time Child Day Care
  • Part-time/After School Care (including drop-off and pick-up)
  • After School Tutoring
  • Drop-In Care

Prior to opening, the college will have a two-month enrollment drive.  Based on the market reaction to the drive, these services may be altered to meet the needs of the community.  The college will always remain nimble enough to respond to the needs of the community in which it serves.

Competitive Comparison

The child care industry as a whole is saturated.  However, based on US Census 2000 data, Hillsborough County Child Care Services provider listings and Hillsborough County building permit records, the city of Riverview, Florida itself is growing and has few licensed child care facilities.  Kid’s Community College® intends to fill this local market need.

The Lake St. Charles and ‘The Villages of Lake St. Charles’ subdivisions have 800 and 100 single family homes respectively. There are only two other child care facilities in the neighborhood. One is in the immediate area, a church based facility and the other is 2 miles away, a facility hosted by a local martial arts academy.  There are also three family child caregivers listed in the area, but none in the immediate community.  Kid’s Community College® will differentiate itself from its local competitors by offering an alternative to these traditional day care approaches. 

The Kid’s Community College® market strategy is based on providing an activity based learning environment that is used in many major colleges, universities and vocational centers around the nation. We will offer a community of professional caregivers with the credentials to not only enhance a child’s early social and motor skills, but to also teach them advanced studies in the arts and sciences found at institutions of higher learning.

Kid’s Community College® will be located in a new medical arts plaza, which has already shown a need and interest for child care services. The center currently has a pediatrics office and fitness center with clientele that has inquired about child care services. By forming collaborative partnerships with these businesses and becoming an active voice in the Lake St. Charles community, the college will position itself as the market share leader in child care services, development and educational offerings.

Sales Literature

A copy of the Kid’s Community College® informational brochure is attached in an appendix at the end of this document.

Fulfillment

The key fulfillment and delivery of services will be provided by the campus director, licensed campus instructors and staff workers. The real core value is the professional strength and industry expertise of the founder and silent partners, staff experience and certifications, education and hard work (in that order).

We will turn to qualified professionals for freelance back-up in tutoring and educational support, which will enhance the core values provided to the clients.

Since the company founder has an extensive Information Technology background, it’s only natural that Kid’s Community College® will employ and maintain the latest technology to enhance its curriculum, office management systems, payment processing and record keeping.

Future Services

Three additional campuses are planned in the rural Tampa marketplace over the next four years. Franchise start-ups will be offered in the Orlando, Miami and Jacksonville marketplace after 2 years of successful operation.

Market Analysis Summary how to do a market analysis for your business plan.">

Kid’s Community College® offers services which are vitally important in today’s fast paced, dual-income world. As an increasing number of families have become dependent on two incomes, the need for quality child care has skyrocketed. According to Florida Business Statistics, 84.6% of licensed child care facilities succeed and make a profit in their 1st year of operation.  Nationally, this number is 66.7%. 

There is no doubt, in the Riverview, FL area, that there is room and a need for Kid’s Community College®.  Market demographics to support this statement can be found below.

Market Segmentation

Kid’s Community College® has a focus on meeting the local community need for child care services within the 10-mile radius of Riverview.  Students will be taken in flexibly on either a full-time or part-time basis.

Full-Time Working Couples

The college will establish a significantly large, full-time, regular client base in order to establish the healthy, consistent revenue base which will ensure stability of the business.  Customer and community relations are extremely important, as it is imperative to keep the parents pleased in order to keep their children in the college.

After School Care

Another large segment of the college’s business will be in the after school care market.  This client base will provide a higher profit for the college since instructor-to-student ratios are higher, and the students require more educational services, which are the primary focus of the college.  By offering tutoring, and advanced studies in technology, theatre, arts and sciences, the college will attract these profitable business clients, producing significant supplemental revenues.

Part-Time Workers/Drop-Ins

Part-time workers and Drop-Ins from the fitness center and locals businesses will comprise less than 1% of the revenues.  While this market is not a primary focus, sufficient flexibility to handle this market is important to the local ‘word-of-mouth’  marketing strategy.

Child day care services business plan, market analysis summary chart image

Target Market Segment Strategy

The target market for Kid’s Community College® is full-time working couples. Referral marketing, direct-mail campaigns and community activity days will be the primary types of marketing strategies utilized. Maintaining and enhancing its reputation with families and in the community will be crucial in obtaining the planned market share growth of this target market.

Market Growth

According to US Census 2000 data, the population growth rate for Hillsborough county is approximately 2%, which is reflected in the market analysis summary. However, the Riverview area of Hillsborough County is experiencing a residential construction boom, yielding well over a 14.6% growth. This is supported by data obtained from the Hillsborough County Building Permits office and is included in the appendix of this plan. This suggests that more families continue to move into the Riverview area, thus becoming potential customers.

In our market analysis, we suggest a modest 6% yearly growth in the number of potential customers.

Market Needs

With inflation continuing to rise each year, the typical American family now requires dual or supplemental incomes. This trend has created a need for quality child care services. We do not see this model changing in the foreseeable future. In fact, based on the growth in the Riverview area, specifically the new Lake St. Charles and Village of Lake St. Charles communities, we expect the need to increase.

Market Trends

Currently there are more family caregivers than licensed child care facilities nationwide. However, this business model can’t keep up with the needs of the growing child care industry. In the family care giver paradigm, space is limited and quality of care is questionable – in many cases viewed as only slightly higher quality than babysitter services.

Service Business Analysis

Kid’s Community College® is in the child care services industry, which includes several models:

  • Licensed Child Care Facilities: Business facilities that offer child daycare services.
  • Family Child Care Homes: Individuals that offer child daycare services in their homes.
  • Specific Interest Based Programs: Businesses that offer specialized instruction such as gymnastics, martial arts and athletics.
  • Church Child Care Facilities: Religious organizations that offer child daycare services in their communities.

Competition and Buying Patterns

Price, service, certification and reputation are critical success factors in the child care services industry. Kid’s Community College® will compete well in our market by offering competitive prices, high-quality child care services, and leading-edge educational programs with certified, college-educated instructors, and by maintaining an excellent reputation with parents and the community in which we serve.

Main Competitors

  • Weaknesses: May not appeal to customers of different religious beliefs. Unlicensed facility.  Non-accredited. 
  • Weaknesses: Location – outside of middle-income market. Non-educational offering.  Building condition – prone to constant flooding. 
  • Family Child Care Homes:
  • Weaknesses: Capacity – only allowed a certain number of children. Non-professional stigma. 

Business Participants

  • Specific Interest Based Programs: Martial Arts America
  • Church Child Care Facilities: Christian Day Academy (not licensed).

Strategy and Implementation Summary

Kid’s Community College® will focus on two subdivisions: ‘Lake St. Charles’ and ‘The Villages of Lake St. Charles,’ which are new upscale community developments within a 2 square mile radius and boast over 900 new homes. 

The target customers are dual income, middle-class families who value the quality of education and child care provided for their children ages 4 months to 12 years.

Value Proposition

Kid’s Community College’s® value proposition is quite clear and quite easily distinguished from others in the market. We offer uniquely premium child care services, as measured by the curriculum and activities offered, experience and educational level of the instructors, community involvement and community college theme. 

Competitive Edge

We start with a critical competitive edge: there is no competitor in our market that is offering our concept, quality of educational program and child care services. Our educational approach is unique and we have a resource with over 25 years of child care expertise and over 17 years of technology savvy. Our positioning on these points is very hard to match, but only if we maintain the focus in our strategy, marketing, business development, and fulfillment. We should be aware that the tendency to dilute this expertise with bargain shopping could weaken the importance of our competitive edge, but we must continue to bolster our value proposition.

Marketing Strategy

Marketing in the child care industry depends largely on reputation and referral. At Kid’s Community College® that reputation will start within our community bolstered by our involved commitment to those we serve. 

Promotion Strategy

We will depend on client referrals, community exposure and direct mail campaigns as our main way to reach new clients.  As we change strategies, however, we need to change the way we promote ourselves:

1.  Advertising –We’ll be developing our core positioning message: “A community college for kids!” to differentiate our service from the competition.  We will be using direct mail campaigns, pre-enrollment drives, and local community newspaper advertising to launch the initial campaign. 

2.  Sales Brochure –Our theme and curriculum will help sell the college to prospective clients. 

3.  Direct Mail –We will send quarterly direct mail campaigns to the housing developments in a 10-mile radius of the campus.  We will also offer monthly calendars for parents and the Lake St. Charles community, noting weekend family days and other open house approaches. 

4.  Community Involvement –We will be active in the Lake St. Charles community, sponsoring events at the community center for families and residents.

Marketing Programs

Catered open houses, parent survival days/nights, clubhouse pool parties and weekend movie matinees are but a few approaches we will utilize to reach out to our community.  We will also develop and maintain partnerships with local businesses that cater to the needs of children. 

Our pre-opening effort will include an application fee waiver, free children ID cards, T-shirts and a community block party sponsored and hosted by Kid’s Community College®.

Positioning Statement

For families who value the importance of higher education and quality child care services, Kid’s Community College® offers a great alternative to traditional child care services and specific interest based programs. Unlike those programs, KCC combines child care services with a modified collegiate level curriculum, just for kids!

Pricing Strategy

Kid’s Community College® must charge appropriately for the high-end, high-quality educational and care giving services we offer. Our revenue structure has to support our cost structure, so the salaries we pay to assure quality services must be balanced by the revenue we charge. 

We will be price competitive in the market we serve; however, we will not subscribe to the “low price leader” concept. The quality of our service will support the prices we charge.

Sales Strategy

Kid’s Community College® will sell its community college theme, services and offerings, separating itself from traditional daycare-only offerings.

We will be a one-stop shop for child care services, advanced learning and specialized program offerings.  We will also be active in the community, building a solid reputation with parents and the community.  By succeeding in these areas, we expect to begin seeing an operational net profit in month nine of the 1st year, while increasing enrollment by 32% monthly for the first 8 months and gradually thereafter, until our maximum allowed capacity is reached.

Sales Forecast

The following table and chart give a run-down on forecasted sales.  A detailed spreadsheet is also included in the appendix of this business plan. 

For the first eight months of operation, Kid’s Community College® has assumed a conservative enrollment due to the fact that school, aftercare and child care placement has already taken place for the school year and most parents will be comfortable with their current arrangements.  Consequently, we expect initial enrollment to be far less than anticipated future year levels. 

A sales increase of approximately 32% each month is expected until the start of the next school term, in August.  While this forecasted  increase seems large by industry standards, it is a good estimate based on initial enrollment.  Going into years 2 and 3, we expect that our presence will be known, convenience factor considered and we will then be a considered as a choice in August 2003.  In fiscal years 2004 and 2005, 80% and 90% of full enrollment is assumed respectively.

We expect to be open for business on January 1, 2003, starting with an initial enrollment of 13 students:

7 Full-time students at $115 each per week.  6 After-school students at $60 each per week and Drop-in revenue of approximately $100 per month. 

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Sales Programs

Sales programs will include incentives for obtaining quarterly financial and enrollment goals, probationary period completion, passing county inspections and maintaining perfect attendance. 

Customer service awards will be provided for those employees who best exemplify the mission of Kid’s Community College® and exceed customers’ expectations. 

The accompanying table highlights important start-up milestones, with dates, completion status, responsible parties and budgets for each.  The milestone schedule indicates our emphasis on planning for implementation. 

What the table doesn’t show is the commitment behind it.  Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections. 

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Strategic Alliances

As mentioned previously, Kid’s Community College® will form professional alliances with Impact Fitness to offer Drop-In child care services while parents work out.  We will also partner with Family Pediatrics to provide referrals of their existing customers.  A discounted rate will be offered in both cases.

Web Plan Summary

The Kid’s Community College® website will be the virtual business card and portfolio for the college, as well as its online “home.”

It will showcase the campus, curriculum and activity calendar for the school.  It will also provide for an Internet background of the instructors, online projects posted by the students, the campus newsletter and online enrollment. 

The Kid’s Community College® website will be simple, yet classy and well designed, but at the same time, in keeping with the latest trends in user interface design.  A site that is too flashy, or tries to use too much of the latest technology can be over-done, and may not be supported by all browsers. 

The key to the website strategy will be presenting a very well designed and informative Web presence that will market the Kid’s Community College® image, service offerings and community commitment.

Website Marketing Strategy

The Kid’s Community College® website will embody the mission of the college.  It will not only offer visitors the opportunity to “look around” the campus, but it will give them a good idea of the level of quality and service they can come to expect from the college.

Mostly informative in nature, the website will be a digital representation of our physical self. 

Development Requirements

The Kid’s Community College® website will be developed by the college founder, Timothy B. Kilpatrick, Sr., who has over 17 years of Information Technology experience.  Formation Technologies will host the site.

The site will be developed using Macromedia Dreamweaver 4, which will allow for support outside of Mr. Kilpatrick’s involvement.  The initial maintenance of the site will be done by Mr. Kilpatrick. 

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The opening management team of Kid’s Community College® will consist of the founder, a silent partner, a campus director and administrative assistant.

As the college grows, gradual investments in the instructional staff will be made over the next 3 years – beginning in June 2003 or as otherwise dictated by enrollment.

Organizational Structure

Kid’s Community College® depends on the founder, silent partner, Campus Director and VP of Education Operations for management in the following roles:

Management Team

Owner/President – Timothy B.  Kilpatrick, Sr.  The Owner/President will have overall fiscal responsibility, ensuring that the business is financially sound and attains its planned goals. 

  • 17 years Executive Management (VP) and Budgeting experience
  • Advanced degree in Computer Science
  • Proven leadership and employee development ability
  • Extensive experience with budgeting methodologies and strategic planning, including the Balanced Scorecard approach.

Industry Consultant – Carolyn Steverson.  The Industry Consultant will be relied upon for her industry expertise, providing valuable insight to rules, regulations and governmental programs that may benefit the college.

  • 25 Year owner of Fat Albert Day Care Center
  • Licensed child care facility owner
  • Vast knowledge of Hillsborough County Child Care Licensing requirements and government supplemental programs

Campus Director – Candice Harris.  The Campus Director will be responsible for daily operations, curriculum oversight and management of all instructors, caregivers and tutors.

  • B.S.  Degree in Education
  • 2 years facilities administration/support experience with the University of South Florida
  • 2+ years Regional Operations Manager
  • 5+ years managerial/supervisory experience
  • 3+ years grant writing, technical writing, workflow and process documentation experience

VP of Education Operations – Nitika Steverson-Kilpatrick

  • Collegiate-level Public Relations education
  • 5+ years customer service experience
  • 8+ years child care industry experience (her mother owns Fat Albert Daycare)
  • Extensive theatre and dance background

Management Team Gaps

The present team requires Child Care Development Associate credentials to support our value proposition and preparation for 2004 Florida child care requirements.  Currently, the Campus Director and Industry Consultant are the only members of the management team who have these credentials.

The Owner/President and VP of Education Operations will be enrolling in January 2003 to complete the six-month course required to obtain these credentials.  Education for these two can’t begin in this area until that time since it is a requirement that the college be open for business before the course work can begin.  Long-term, all full-time instructors will be required by the college (not the State) to obtain this credential.

Regarding financial administration, we will retain a strong CPA to help the owner guard cash flow.  While the owner is well versed in the worries of cash flow, he also has the sense to listen to reason and deal with constraints, as guided by the CPA.

Personnel Plan

The following table summarizes our personnel expenditures for the first three years, with compensation increasing from approximately $57K the first year to about $113K in the third.  We believe this plan is a fair compromise between fairness and expedience, and meets the commitment of our mission statement. 

The yearly figures in the second and third year are assumptions for the Lake St. Charles campus only.  The numbers reflect 100% enrollment, a full staff of instructors and a 5% payroll increase each year – which will include tuition reimbursement, pay increases, vacation pay, bonuses and state required certifications.

Financial Plan investor-ready personnel plan .">

  • Adequate start-up capital is assumed, along with an SBA 5-year guaranteed loan.

Important Assumptions

The Kid’s Community College® financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions.  The monthly assumptions are included in the appendices.  From the beginning, it is recognized that total enrollment is critical, which is a factor that must be influenced immediately.  Interest rates, tax rates, and personnel burden are based on conservative assumptions. 

The most important underlying assumption is that there is a strong need for the business in the Lake St. Charles community. 

Key Financial Indicators

The following benchmark chart indicates the key financial indicators for the first three years.  We foresee a gradual growth in sales (enrollment) and operating expenses into the second and third year.

It is projected that the raw gross margin will remain stable for the first three years since expenses are relatively indirect in the service based course work industry.  Operating expenses increase gradually as enrollment increases.

Enrollment is very important.  We must maintain an average weekly enrollment of 34 students for fixed cost coverage. 

Child day care services business plan, financial plan chart image

Break-even Analysis

For the break-even analysis, start-up monthly running costs assumptions are shown in the the table below, including a three person payroll, rent, utilities and an estimation of other running costs.  Payroll, at median market averages, was presented previously in the Personnel table. 

Based on these assumptions, the chart below shows the enrollment of students per month needed to break-even.  This represents about 46% of our allowable monthly enrollment based on state and county course work guidelines.

Child day care services business plan, financial plan chart image

Projected Profit and Loss

Our projected profit and loss is shown on the following table, with sales increasing from the first year to the third. 

In years two and three, we are projecting full enrollment regarding cost of sales and gross margin.  The investment return in these years supports the goal of opening another campus at the end of the second year and begin the franchise offering by the end of the third year.  Profit from the additional campuses and income from franchising are not included in this business plan. 

The detailed monthly projections are included in the appendices. 

Child day care services business plan, financial plan chart image

Projected Cash Flow

The following cash flow projections show the annual amounts only, significant for the first year mainly in the amounts projected in cash sales and payables. 

Cash flow projections are critical to the success of Kid’s Community College®.  The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other the monthly cash balance.  The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices. 

Child day care services business plan, financial plan chart image

Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and a gradually sufficient healthy financial position.  The monthly estimates are included in the appendices.

Business Ratios

The following table shows the projected businesses ratios for our industry: Child Day Care services, SIC code 8351. Kid’s Community College® expects to maintain healthy ratios for profitability, risk, and return.

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IMAGES

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VIDEO

  1. Type of business plan discussion🔥| How to Start New business in 2024@RupaOdiaKahani

  2. Top 3 Tips For Successfully Starting Your Home Care Business

COMMENTS

  1. Daycare Business Plan Template (2024)

    Written by Dave Lavinsky Daycare Business Plan You've come to the right place to easily complete your daycare business plan. We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their daycares.

  2. How to Write a Business Plan for a Daycare Center

    13 min. read Updated February 7, 2024 Free Download: Sample Daycare Business Plan Templates Working out a business plan for your daycare center can be a challenge. There are many expenses you must calculate—more than you'd think! Projected enrollment growth and market demand can also be tricky to estimate.

  3. How to Start a Day Care: A Step-by-Step Guide

    1. Decide what kind of day care business you want to start Before you can even get to writing a business plan for your day care business, you need to decide what kind you want to...

  4. The Ultimate Guide on How to Start a Daycare Center

    brightwheel Blog Running a business The Ultimate Guide on How to Start a Daycare Center Our guide covers the essential steps to take when starting a daycare center.

  5. How to Start a Daycare Center: 15 Steps for Success

    April 17, 2023 Why Start a Daycare? Advantages to Starting a Daycare Can You Start a Daycare from Home? How Much Does It Cost to Start a Daycare? 15 Steps to Starting a Daycare Center Resources for Daycare Owners Bottom Line Since most parents work outside the home, most preschool aged children receive some form of child care.

  6. Child Care Business Plan Template [Updated 2024]

    Written by Dave Lavinsky Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their child care businesses. On this page, we will first give you some background information with regards to the importance of business planning.

  7. How to Write a Business Plan for Daycare and Preschool

    brightwheel Blog Running a business How to Write a Business Plan for Daycare and Preschool Start running a successful daycare or preschool by writing an effective business plan using the tips in this article.

  8. The Daycare Business Plan Blueprint (Examples + Template)

    April 14, 2022 Adam Hoeksema Starting a daycare business can be a daunting task. There are so many things to think about and plan for. You need to find the perfect location, get the right licenses and permits, hire qualified staff, and, most importantly, create a daycare business plan.

  9. Daycare Business Plan Template & How-To Guide [Updated 2024]

    A good daycare business plan should include the following 10 key elements: Executive Summary Your executive summary provides an introduction to your daycare business plan, but it is normally the last section you write because it provides a summary of each key section of your plan. The goal of your Executive Summary is to quickly engage the reader.

  10. How to Write a Business Plan for a Daycare: Complete Guide

    The executive summary of your daycare business plan should include the following important information: Business Overview Introduce your company (its name, its mission) and the history behind it: why did you decide to create a daycare in your area today? Why you?

  11. Day Care Business Plan Examples

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    Plans starting from $7/month What is a Daycare Business Plan? A daycare business plan is an equivalent of a roadmap in your business journey. A plan helps you understand what you're getting yourself into.

  13. How to Write a Business Plan for Starting a Day Care Center

    Create Your Company Description. Create a general overview of your day care business plans. Write a brief summary of your goals and include why you think starting a day care business is a good ...

  14. PDF Daycare Business Plan Template

    renovations, furniture, kitchen equipment, food, & daycare center supplies, legal fees, working capital, marketing, and personnel.) OR. [No funding is needed at this time. The owners have provided the company with sufficient capital.] Continue reading the business plan below.

  15. Daycare Business Plan [Sample Template]

    1. Industry Overview Day care business is one of the easy businesses that just about anyone who has a flare for kids could readily start. There is no doubt that as the zeal to make more money heightens with parents, then the need for newer and more seasoned day care centers to arise becomes highly important.

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    [Company Name], located at [insert location here] is a new, upscale daycare focusing on offering a safe, play-based, nurturing environment to promote the physical, social, emotional, cognitive and creative development of children and infants through five years of age.

  17. PDF Templates: Your Starting Point for Senior Day Care Business

    Starting Right: Accessing PDF Templates. To begin the process of creating a business plan for your senior day care center, you must first equip yourself with the necessary resources. The first step in this quest is to obtain the necessary resources to streamline your efforts. A plethora of websites emerge as invaluable companions in this ...

  18. Day Care Business Plan Example

    Solution Safe Kids Child Care will succeed by offering its clients' children a safe and secure care environment, and close personal attention. The goals of the center are dual-sided: to help parents feel good about the care of their children, and to make it a safe, educational, and fun experience for the child. Market

  19. Child Day Care Services Business Plan Example

    Services. Kid's Community College® offers upscale child care services and an advanced collegiate based curriculum designed for kids ages 4 months to 5 years and 1st through 5th grades. Normal operating hours will be 6:45am to 6:30pm, Monday through Friday - with observance of all major legal holidays.

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    See other industries within the Health Care and Social Assistance sector: Child Care Services , Community Food and Housing, and Emergency and Other Relief Services , Continuing Care Retirement Communities and Assisted Living Facilities for the Elderly , General Medical and Surgical Hospitals ,

  22. Number Of Company health services in Moscow Oblast

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