Child Care Director Resources How to Make a Preschool Business Plan
How to Make a Preschool Business Plan
11th August 2020
An important early step for starting any new business is to make your business plan. Starting a preschool is no different! What expenses do you need to take into consideration? How can you think about setting your pricing? What ages should you take? What hours should you operate? Here’s how to think through each of these decisions to form your preschool business plan.
Preschool Business Plan Basics: Wonderschool’s Iron Triangle of ECE Finance
Before you think through specific business decisions you’ll need to make, it’s important to understand what you’re striving for. Meet the iron triangle. For a preschool business to be financially stable, the iron triangle must be met:
- Full enrollment: ensure that all of your spaces are full.
- Full fee collection: ensure that you are collecting all of your tuition and on time.
- Revenue covers real cost-per-child: you need to ensure you are priced in such a way that your revenue is truly covering the cost of caring for each child.
Important Business-Related Decisions You’ll Need to Make
Type of license: Most states have at least two options for in-home child care licenses . Often there’s a “small” license and a “large” license, with a large license allowing you to have more children. If you’re just getting started you’ll have to choose which type of license you want. There are usually different requirements for each. For example, in California, to obtain a large license for up to 14 children, your home must meet certain fire safety requirements like number of exits and you need to have previous experience working in a licensed child care program.
One thing to keep in mind is that just because you have a license for a certain number of children, does not mean that you need to fill all of those spots. If you qualify for a larger license, you can get it and still only serve 6-8 children if you so choose.
Regardless of what you choose to do, you’ll want to make sure you understand the details of your particular license. How many children can you have at one time? What ratio of staff to children are you required to maintain?
Hours of operation: Do you plan to run a full day program? Or a half-day program? Will you operate a more “normal” school day schedule and offer before and after care for an extra fee?
Families need all sorts of care options. Think about your immediate community when thinking about your hours of operation. If you have a lot of stay at home parents, a part-day program might be perfect. If you have a lot of dual-earning parents who commute a long distance to get to their workplaces, you might need to offer extended hours.
Keep in mind that what you decide on initially does not have to be set in stone. You can always change it later, if needed. You’ll know if you’re not offering a good match for what the families in your community need if you’re not getting much interest, or if families aren’t enrolling once they tour.
Schedules you’ll offer: Related to your hours of operation, you’ll need to think about what schedules you’ll make available. Will you allow parents to enroll part time? Or do you only want full time enrollments? If you have part time schedules available, what does that look like? Is it Monday, Wednesday, Friday? Or is it half days?
Keep in mind that you can charge a higher rate for part time spots because it can be very hard to fill the alternative spots, plus the added paperwork for you. That said, not everyone wants to offer part time care.
Ages you’ll enroll: Deciding who you’ll enroll will depend on your comfort and background. If you have a lot of experience caring for and educating a specific age group, that might be your starting point. Most in-home programs serve a variety of ages, so even if your experience is with preschoolers, you may want to consider branching out from that. If your goal is to fill up quickly, infant care might be your ideal starting place, because that is an age group that is in constant high demand.
The ages you enroll will also dictate what you can charge. Because of the lower ratios required for infant care, you can charge more for infants. Often programs have separate pricing for children under 2 and children over 2.
Meals or other things you’ll offer: Will you provide snacks or meals? Or will you ask parents to provide those every day? Will you hire a yoga teacher to come once a week? Will you provide diapers, or will parents provide diapers? These are all expenses you’ll need to account for in your tuition pricing. Remember that one part of the iron triangle is ensuring your pricing covers the actual cost of care per child. These expenses should be taken into account.
Your plan for hiring staff: You may not need to hire staff until your enrollments surpass a certain number. Determine what that number is for you– do you feel comfortable caring for three children alone, but not four? Decide at what point you’ll hire help, and how many hours you intend for them to work. Will you have a full time assistant? Or two part time assistants?
Decide on how many hours per week you will need to pay your staff, and then determine what you can afford to pay them. Researching on Indeed can be a great way to get a sense of pay scale for assistant teachers in your area. Keep in mind that paying a higher amount will likely yield more higher quality and more reliable candidates. If you’re priced too low you either won’t find anyone, or will have to deal with increased staff turnover.
Your vacation policy: You’ll want to think through your vacation policy, both for time you take off, and for time your families take off. Will parents need to pay while they’re on vacation? Or will you give them a discount? Will parents need to pay while you’re on vacation? Or will you give them a discount? There are pros and cons however you do it, but you’ll want to think this through and include your policy in your parent handbook so the expectations are set from the start. However you structure it, you deserve to get paid vacation, so if parents aren’t continuing to pay while you’re closed, you’ll want to make sure that gets added to your tuition calculations.
Use the Above Information to Determine Your Pricing
Pricing can be a bit of trial and error. Generally, it can be a good idea to price yourself a bit lower when you’re just getting started. Then, when you’re full, you can gradually increase your prices.
To determine your starting point, add up all of your anticipated monthly expenses. You’ll need to price yourself to make sure you cover those expenses, and also pay yourself. Keep in mind that as a business owner, you’ll be responsible for paying your own taxes. You can generally expect to pay 30% of your revenue to taxes.
Keeping it All Organized
Pricing might feel like a bit of a puzzle that needs to be fit together, and it should. You want to make sure your pricing reflects your real costs as a business owner. The final piece to your business plan is that you’ll want to make sure you figure out how you’re going to track all of your business expenses. This will make it easier when it comes time to pay taxes, but it will also help you keep an eye on the health of your business. There are a variety of tools available to purchase to track this stuff, or you can start out with your own spreadsheet or pen and paper system. Whatever works for you is fine, just set it up and use it. Sometimes our tendency with money is to bury our heads in the sand, but that won’t help you make informed decisions down the road.
Starting a new business always comes with a certain amount of risk. By thinking through all of the different facets of your child care business, you will better be able to mitigate that risk. It can be scary to stand up and say “this is what my time as an early educator and care provider is worth,” but your business plan should give you confidence to do just that. Good luck with your successful and sustainable child care business!
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Meredith Downing is the Curriculum Lead at Wonderschool, where she supports directors to build high-quality programs that help students grow and succeed.
Preschool Business Plan Template
Written by Dave Lavinsky
Preschool Business Plan
Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their preschool companies. We have the experience, resources, and knowledge to help you create a great business plan.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a preschool business plan step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your preschool business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a preschool business or grow your existing preschool company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your preschool business to improve your chances of success. Your preschool business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Preschool Businesses
With regard to funding, the main sources of funding for a preschool business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for preschool companies.
Finish Your Business Plan Today!
How to write a business plan for a preschool business.
If you want to start a preschool business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your preschool business plan.
Your executive summary provides an introduction to your 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. Explain to them the kind of preschool business you are running and the status. For example, are you a startup, do you have a preschool business that you would like to grow, or are you operating a chain of preschool businesses?
Next, provide an overview of each of the subsequent sections of your plan.
- Give a brief overview of the preschool industry.
- Discuss the type of preschool business you are operating.
- Detail your direct competitors. Give an overview of your target customers.
- Provide a snapshot of your marketing strategy. Identify the key members of your team.
- Offer an overview of your financial plan.
In your company overview, you will detail the type of preschool business you are operating.
For example, you might specialize in one of the following types of preschool businesses:
- Parent co-op preschool : Preschools that offer lower-cost enrollment in exchange for the volunteer work of a parent on a regular (typically weekly) basis. This type of preschool employs a teacher and an aide, but also includes parents, which reduces the payroll costs considerably.
- Academic/play-based preschool: Preschools that stress learning via a number of experiences in academic introductions. Play-based learning is also introduced in math and pre-reading games and other forms of learning-while-you-play interactions.
- Religious preschool: Preschools that adhere to the religious practices and beliefs of the parents in teaching, while including academic and play-based experiences for preschoolers.
- Learning system preschool: Systems of specific teaching theories, such as Waldorf and Montessori, are offered at this type of preschool. These preschools are based on proven structures for learning.
- Development-interaction preschool: Preschools that offer a holistic approach to preschool, focusing on the emotional, intellectual, social and physical growth of each preschool child.
In addition to explaining the type of preschool business you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of programs offered, the number of preschool graduates, reaching X number of preschool locations, etc.
- Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry or market analysis, you need to provide an overview of the preschool industry. While this may seem unnecessary, it serves multiple purposes.
First, researching the preschool industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your preschool business plan:
- How big is the preschool industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential target market for your preschool business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your preschool business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: parents, grandparents, children, and churches, and schools.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of preschool business you operate. Clearly, parents would respond to different marketing promotions than churches, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other preschool businesses.
Indirect competitors are other options that customers have to choose for their preschoolers that aren’t directly competing with your service. This includes private tutors, public schools, nannies and babysitters. You need to mention direct competition, as well.
For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
- What types of families do they serve?
- What type of preschool business are they?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide options for translation services?
- Will you offer family-discounts that your competition doesn’t?
- Will you provide better playgrounds and amenities?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a preschool business plan, your marketing strategy should include the following:
Product : In the product section, you should reiterate the type of preschool company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide developmental, religious, academic or play-based learning systems?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.
Place : Place refers to the site(s) of your preschool(s). Document where your company is situated and mention how the sites will impact your success. For example, is your preschool business located in a new, master-planned community, near a business district, or in a standalone building? Discuss how your site might be the ideal location for your customers.
Promotions : The final part of your preschool marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
- Advertise in local papers, radio stations and/or magazines
- Reach out to websites
- Distribute flyers
- Engage in email marketing
- Advertise on social media platforms
- Improve the SEO (search engine optimization) on your website for targeted keywords
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your preschool business, including answering calls, placing preschoolers into programs, meeting with parents, planning and providing teaching sessions, billing and collecting revenue, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to open your fifth preschool, or when you hope to reach $X in revenue. It could also be when you expect to expand your preschool business to a new community in your city.
To demonstrate your preschool business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing preschool businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a preschool business or successfully leading as a principal of a public elementary school.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you open a new preschool every two years, or offer summer school and daycare sessions? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your preschool business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a preschool business:
- Cost of classroom furniture, equipment and office supplies
- Payroll or salaries paid to staff
- Business insurance
- Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of parents who have enrolled their children on contract for the next two years, or the waitlist of parents who want their children to attend your preschool.
Writing a business plan for your preschool business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the preschool industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful preschool business.
Preschool Business Plan FAQs
What is the easiest way to complete my preschool business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily write your preschool business plan.
How Do You Start a Preschool Business?
Starting a Preschool business is easy with these 14 steps:
- Choose the Name for Your Preschool Business
- Create Your Preschool Business Plan
- Choose the Legal Structure for Your Preschool Business
- Secure Startup Funding for Your Preschool Business (If Needed)
- Secure a Location for Your Business
- Register Your Preschool Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Preschool Business
- Buy or Lease the Right Preschool Business Equipment
- Develop Your Preschool Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Preschool Business
- Open for Business
Where Can I Download a Free Business Plan Template PDF?
Click here to download the pdf version of our basic business plan template.
Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.
We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.
Finish Your Preschool Business Plan in 1 Day!
Don’t you wish there was a faster, easier way to finish your Preschool business plan?
With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how a Growthink business plan consultant can create your business plan for you.
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Preschool Business Plan
If you are planning to start a new Preschool business, the first thing you will need is a business plan. Use our sample 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 preschool business, spend as much time as you can reading through some examples of education-related business plans .
Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.
We have created this sample preschool business plan for you to get a good idea about how perfect a business plan should look and what details you will need to include in your stunning business plan.
Preschool Business Plan Outline
This is the standard business plan outline which will cover all important sections that you should include in your business plan.
- Mission statement
- Vision statement
- Keys to Success
- 3 Year profit forecast
- Startup cost
- Management Team
- Personnel Table
- Funding Required
- Products and Services
- Market Overview
- Market Trends
- Target Market
- Word of Mouth
- Community Involvement
- Public Transport Advertising
- Web Plan Summary
- Sales Strategy
- Personnel Plan
- Important Assumptions
- Brake-even Analysis
- Profit Yearly
- Gross Margin Yearly
- Projected Cash Flow
- Projected Balance Sheet
- Business Ratios
After getting started with Upmetrics , you can copy this sample business plan into your business plan and modify the required information and download your preschool business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.
Download a sample preschool business plan
Need help writing your business plan from scratch? Here you go; download our free preschool business plan pdf to start.
It’s a modern business plan template specifically designed for your preschool business. Use the example business plan as a guide for writing your own.
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How to Start a Preschool at Home | The Ultimate Guide
- Running a business
- The Ultimate Guide to Starting Your Own Preschool
Opening a preschool isn't easy, whether you’re a teacher with a vision or a parent who sees a need. To run a successful preschool, you need expert advice, a clear preschool business plan, and preschool software to help you stay organized and streamline your operations.
Your success in opening a preschool will depend on careful management of the startup process. This guide will explain how to start your preschool, from writing a business plan and choosing a location, to marketing, hiring, and managing your day-to-day operations.
13 tips on how to start a preschool at home
1. learn about preschool licensing requirements.
Your local government will have rules and regulations that govern you as both a preschool and a small business owner. You'll need to comply with both. Start by checking out your state's licensing guidelines for childcare centers , then research your specific area. For example, if you’re in California, the California Department of Social Services has a guide on becoming a licensed preschool . Most states will have something similar.
2. Write a preschool business plan
Writing a preschool business plan is a big task, but due diligence and hard work at this stage will inform the rest of the process. Here you’ll hash out your preschool's name , mission statement, marketing plan, organizational plan, staffing, operations, and budgets. You’ll need to research how much it will cost to launch a preschool successfully. Are you using your own money to fund your business or seeking a small business loan? Have you looked into daycare grants ? For additional help, the U.S. Small Business Association provides detailed instructions on writing a general business plan.
3. Find a location for your preschool
Are you opening a small, home-based preschool, looking to rent an existing preschool facility, or starting a preschool from scratch with a brand new facility? In any case, you’ll need to find a home for your preschool. Check your city’s zoning laws and preschool licensing guidelines when making this decision to be sure your location is compliant.
4. Get insurance for your preschool
Depending on the type and size of your preschool, you’ll need insurance policies . An insurance policy won’t stop risks from happening, but it can protect you from a lengthy, expensive lawsuit. It’s impossible to insure your preschool against all risks, so do your research on what is required. Common insurance policies include liability, property, workers’ compensation, and business insurance.
5. Prepare your preschool facility
If you're getting ready to open a preschool, you'll need furniture and supplies. You’ll also need safety equipment such as fire extinguishers, emergency supplies, and first aid kits. Running your own preschool has many safety issues you’ll want to be prepared for.
If you’re running your preschool at home, this will mean rearranging your home to fit your preschoolers’ needs. Although the appropriate arrangement depends on your philosophy, some areas are non-negotiable. They include:
- Library or literacy area: This area provides a quiet space for children to read or look at books or practice their writing skills.
- Manipulative center: This is an area with objects like puzzles, blocks, and legos that help to build fine motor skills.
- Outdoor space: Spending time outside is crucial for children’s physical development and there are plenty of outdoor activities that can be meaningful educational opportunities.
6. Develop policies and procedures
Working off your business plan, write out policies and procedures and handbooks for your staff and families . You’ll also need to develop an emergency plan and health, safety, privacy, and nutrition protocols, all under the guidance of your local preschool licensing requirements.
7. Hire staff to help you run your preschool
Research has shown that the quality of your preschool teachers is one of the top predictors of success. Verify the preschool licensing requirements for staff ratios and teachers’ educational backgrounds, and be sure to rigorously verify references and education levels. A preschool is only as good as its teachers, so make your preschool hiring decisions carefully.
Continue to invest in and build a qualified, engaged team by supporting your staff’s professional development and growth with regular training and education opportunities.
8. Run a background check on staff members
Besides work qualifications, you’ll need to run background checks on all your employees (permanent and temporary). This is critical because your staff will have unsupervised access to the children. Besides an initial background check , the law requires that you continue doing background checks at least once every five years.
9. Prepare your preschool curriculum
Your preschool's mission statement should guide this step, whether you’re following an existing pedagogy or you have your own vision. A carefully chosen preschool curriculum is crucial to the quality of your preschool program.
- Reggio Emilia
- Parent Co-ops
- Bank Street
10. Seek accreditation
According to the National Association for the Education of Young Children (NAEYC), only one in 10 preschools in the U.S. are accredited. This step is optional, but it will go a long way in your recruitment process, as it gives families peace of mind that your program is high-quality.
11. Invest in preschool software
One of the best ways to start a successful preschool at home is to take advantage of the amazing preschool technology at your disposal. Streamline your administrative tasks, and you’ll have more time to focus on educating your children and providing families with a top-notch preschool experience.
Brightwheel makes easy-to-use preschool software to help you manage your preschool and stay in touch with families. Your staff will use brightwheel for recording and tracking daily events and activities in the classroom, and parents will get real-time updates delivered to their mobile devices throughout the day. This powerful app also offers secure digital check-in/check-out and an automated paperless billing system . This is a great way to keep your families informed about daily activities .
12. Market your preschool and seek applicants
At the very least, you’ll need marketing materials and an online presence to advertise your business. List your preschool in local preschool directories and participate in preschool enrollment fairs in your area. Advertise through local businesses, parent groups, local events, and popular blogs.
Run a social media campaign focusing on your target population, or host a grand open house event to attract prospective families. Once you’ve managed to fill your inaugural student roster, continue with ongoing marketing efforts so that you’ll always be building a customer base. A lot of preschools host community events and open houses throughout the year as a way to build a brand presence.
13. Stay updated on new preschool trends
As a preschool owner, it's crucial to integrate the current trends in early education into your business. Here are the three top preschool trends we've observed:
- Technology use is on the rise. The use of technology in early education will continue to increase. The 2020 pandemic led to the introduction of online platforms and classes, and some parents still prefer that their children continue learning through online platforms. As a preschool owner, you might consider having an online learning package. Check the Montessori School Online Packages to learn more about preschool online learning.
- Health and safety regulations remain a priority. The health and safety of the children in your care is always a priority, but there has been even more focus on this in the last several years. Preschool owners and staff should stay updated on all recommended health and safety guidance and communicate all protocols to the families in their community.
Focus on flexibility. It’s crucial that childcare providers remain flexible in the face of changing government guidelines, best practices, and education trends. Extending flexibility to the families at your center will also set your program apart, as everyone tries their best to maintain busy schedules.
The benefits of opening a daycare center
Operating a daycare business can be challenging yet rewarding work. As an educator working with children daily, you will play an important role in supporting the development of young children and shaping their physical, language, cognitive, and social-emotional growth. For individuals that are passionate about working with children, starting a daycare center can be a meaningful way to have a positive impact in your community.
Another benefit of opening a daycare is regular demand. Working families will always need child care, and having a home daycare business can be convenient for many local families. Operating out of your home also offers a great opportunity for financial freedom, especially because of the tax benefits that can save you money. As a small business owner, you can write off daycare-related or housing expenses such as utilities and supplies.
How much does it cost to start a daycare?
The average daycare costs around $50,000 to open and operate. By running your daycare in your home, you’re already saving on the largest expense of daycare centers—paying rent. While you may not have to pay rent for a facility, you’ll have to pay licensing fees, insurance, and compensation for any employees you hire. You’ll also need to purchase supplies, equipment, and food. Another expense to consider is advertising and marketing costs to help grow your business.
How do I get a license to operate a daycare?
While childcare licensing regulations vary by state, in most states, you’ll need a license to run a daycare in your home if you care for more than a few children that are unrelated to you. There are also requirements you must meet as the provider and requirements your home must meet as the location of your business. The application process varies by location but often requires you to attend specific training, pay fees, and complete a pre-licensing inspection. See your state’s childcare resources to understand the licensing process in your local area.
How much can I charge families?
When setting your tuition rates, consider your operating expenses, such as salaries, utilities, supplies, and food, and how many children you can care for to ensure your prices allow you to be profitable. It’s also helpful to research what your competitors in the area are charging, as many families will likely compare prices. If your tuition rates are a little higher, explain what sets your center apart and the added benefits you have to offer.
How do I communicate with families?
Frequent communication is one of the best ways to build relationships with the families at your center. Daily reports can keep families informed on their child’s progress and build trust with your center. A tool like brightwheel’s communication feature enables teachers to send real-time messages to families, allowing them to stay connected with their child’s learning. Regular preschool newsletters can also simplify communication with your families. You can include announcements about upcoming events, important dates, administrative updates, and learning milestones in a format that families can easily reference.
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Starting a preschool can be a challenging, but ultimately rewarding experience. With careful planning, a great team, and organized operations, your preschool will be a success from day one.
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How to do a Preschool Business Plan
- November 20, 2021
1. executive summary -.
- The first and crucial step of preparing a preschool business plan is to start with an executive summary. The executive summary must consist of your objective and unique selling point. It should talk about the aspects that make your preschool stand out from the rest.
- DRS Kids aims to function as a fun and nurturing play school for children from 1.5 - 6 years. We stand out as we provide a rich, stimulating environment to satisfy the learning needs of children. We strive towards the development of their social, emotional, physical, and academic skills.
2. ABOUT YOU -
- Yes, you need to talk about your preschool in the plan. Mention what, when, how, and every other possible question, but briefly. Firstly, the organization itself needs to understand what they are. Then comes the plan on how they plan to execute their identity to the general public.
- DRS Kids, a preschool chain, provides a joyous learning environment. The curriculum provided is scientifically researched to maximize the development of children. The preschool environment is safe, educational, and nurturing. The creche cum daycare facilities and market segmentation makes DRS Kids feasible for urban as well as rural areas.
3. MARKETING PLAN -
- Marketing is an integral part of business. The extent to which you market your business is what determines your success. It aims at building brand awareness using various ways. One is even open to select the type of marketing they wish to do for their business. The requirement is to strategize the further proceedings of their plan based on that.
- We, at DRS Kids, provide major support to our preschool franchises when it comes to marketing. We plan a customized marketing strategy for them and provide them with all the marketing collateral required. We also offer them training for admission counselling as a part of marketing. Additionally, we do national brand marketing through televisions ads, official websites, social media platforms, etc.
4. OPERATIONAL PLAN -
- The functioning strategy of your business is it's operation plan of actin. Mention the location of your preschool and the number of employees that you plan to employ. Make sure to form the departments that will exist in the organization. Specify the possible division strategy of employees into each department. Ensure that the operational plan has a list of the tasks assigned to each department or each member. The list should also mention the deadlines of each task.
- We, at DRS Kids, make the whole process of operational planning easy for our preschool. We provide them with the operational expenditure plan, the staff recruitment plan, and the student enrollment plan. We even provide them with a welcome and consolidated kit that consists of essential manuals & documents.
- Team is the core aspect of a business, both in the plan and in the implementation. A business is highly dependent on the team that works to build it. Mention all your team members in the business plan. It should include all the members from all the departments.
- DRS Kids provides overall support to our clients to recruit the entire team for their preschool.
6. PROJECT STARTUP COSTS -
- Plan your finances and lay down the same plan firmly. It familiarizes you with the expenses that await you shortly. This way of strategizing helps in the proper implementation of your plan and promotes organized spending.
- DRS Kids preschool franchises are affordable as they do not burn a hole in your pockets. We provide our clients with a revenue projection list, which is a part of our business proposal. We currently have a zero franchise fee offer which further adds to our clients’ savings.
Also Read:- How to start a preschool in india
7. projected profit & loss statement -.
- The profit gained out of a business is the definition of its success. Profit and loss statements help in target setting and better functioning. Similarly, loss will possess this application too. Hence, while making a business plan, it is important to add a combined projected profit and loss statement
- The DRS Kids business proposal shares a project feasibility report with the franchisee. This way the process is hassle-free for them. The business proposal provided is completely informative in itself. We simplify the process for making business plan for clients.
• CONCLUSION -
- So far it is clear that a preschool business plan is a written document. It consists of the organization’s business-related activities and goals. It also gives information about how it wishes to execute its plan to achieve the mentioned goals. The business plan document is not supposed to remain constant. This is mainly because growth and evolution are important aspects of a business. Hence, as the business grows, the modification of information in the document is important too. In simpler words, we can say that it is a document that develops and evolves as your business grows. At DRS Kids, we provide you with a business proposal that satisfies all the above-mentioned requirements. The process of building a business with us is effortless.
Mr. Garv Agarwal
- Curriculum for preschool , Government permission to open a preschool , How much area is required for preschool , How much investment to start a preschool , How to start a preschool , How to start a preschool in India , How to start playschool & daycare , Legal procedure to start a preschool in India , Open a preschool , Permission to start a preschool , Permission to start a preschool in India , Preschool affiliation in India , Procedure to start a preschool , Process to open a Playschool in India , Registration of a playschool
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Whether you are running a restaurant or a preschool it is important to have a business plan. If you are just starting one then you will probably be requiring funds. When you approach an investor for the funds the first thing he or she is going to want from you is a solid preschool business plan . That will give him an idea of whether you know what you need to do and if it would be a good idea to invest money in your venture.
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Preschool Business Plan [Sample Template for 2024]
Home » Business Plans » Education Sector » Schooling
Preschool industry operators provide daycare services for children under the ages of three and four to prepare them for kindergarten.
The dispersion of the preschool programs reflects in the geographic distribution of the children, which is also influenced by the cost and supply of preschool programs, income and housing affordability patterns, labor, and child care subsidy policies.
Also, varying state and local regulations and licensing requirements affect employment in this industry. Preschools are under the Early Childhood Learning Centers Industry and the market size, measured by revenue of the Early Childhood Learning Centers industry is $10.7bn in 2023. The industry is expected to increase by 4.6% in 2023.
Steps on How to Write a Preschool Business Plan
Table of Content
Company profile, swot analysis, marketing plan, sales and distribution plan, operational plan, financial plan, financial projection, growth plan.
Auntie Lavendar® Preschool, Inc. is a standard and well–equipped preschool that will be located in a well-populated residential estate in Ashville – North Carolina, USA. We provide daycare services for children under the ages of three and four to prepare them for kindergarten.
Aside from the fact that we will operate a preschool center, we will also propvide in-home tutoring – we will go to the homes of our students as demanded by their parents. Donald Derrick is the founder and CEO of Auntie Lavendar® Preschool, Inc.
a. Our Products and Services
Auntie Lavendar® Preschool, Inc. will provide a wide range of services that revolves around providing daycare services for children under the ages of three and four to prepare them for kindergarten. Our services are designed to give early childhood education to kids under the age of 4 and also help provide relief to parents when they need to be away from their kids for a period of time.
b. Nature of the Business
Auntie Lavendar® Preschool, Inc. will operate the business to consumer business model (B2C).
c. The Industry
Auntie Lavendar® Preschool, Inc. will operate under the Early Childhood Learning Centers Industry.
d. Mission Statement
Our mission is to provide safe and secured daycare facility and services geared towards educating and taking care of kids of a certain age. We are all out to prepare kids for kindergarten.
e. Vision Statement
Our vision of establishing our preschool is to grow the business to be amongst the top three preschools in the whole of the United States of America.
f. Our Tagline (Slogan)
Auntie Lavendar® Preschool, Inc. – Rasing and Educating Golden Kids!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Auntie Lavendar® Preschool, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ personal assets from claims against the business, including lawsuits.
h. Our Organizational Structure
- Head of Preschool (President)
- Preschool Administrator
- Account Officer
- Early Childhood Educators
- Front Desk Officer
- Cleaners and Nannies
- Security Guards
i. Ownership/Shareholder Structure and Board Members
- Sophia Lavendar (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- Solomon Lavendar (Board Member) 19 Percent Shares
- Adrain Lavendar (Board Member) 10 Percent Shares
- Larry Brad (Board Member) 10 Percent Shares
- Lauren Williams (Board Member and Sectary) 10 Percent Shares.
- Ideal Location for preschool business
- Highly Experienced and Qualified Employees and Management
- Highly Secured and Clean Facility
- Highly structured programs aimed at giving kids early childhood education and to prepare them for kindergarten.
- Financial Limitations
- Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
- Inability to retain our highly experienced and qualified employees longer than we want
- Growth in per capita disposable income influences demand for early childhood learning centers. Households with higher disposable income are more likely to be able to afford higher-quality child care and, thus, will be more likely to demand higher-cost services. Per capita disposable income is expected to increase in the coming year, presenting an opportunity to the industry.
i. How Big is the Industry?
The early childhood learning industry is indeed a big industry. The market size of the is projected to be over $10.7 billion in 2023.
ii. Is the Industry Growing or Declining?
Available statistics point to the fact that the industry is presently not growing and revenue for the industry has been adjusted from an increase to a decline.
Please note that from 2022 the revenue of the industry is anticipated to start growing as the economy recovers and COVID-19 (coronavirus) cases subsequently drop in line with the nationwide vaccination rollout. As a matter of fact, available data shows that the industry is projected to grow by 4.6 percent in 2023 recovering from a decline of -3.8 between 2017 and 2022.
iii. What are the Future Trends in the Industry
The early childhood learning centers industry is changing, and players in the industry are improvising. No doubt, technology, kids-friendly legislature and customized software will change the landscape of the industry going forward.
iv. Are There Existing Niches in the Industry? If YES, List them
No, there are no niche ideas when it comes to preschool line of business.
v. Can You Sell a Franchise of your Business in the Future?
Auntie Lavendar® Preschool, Inc. has the plans to sell franchise in the nearest future and we will target major cities with a growing numbers of parents in the United States of America.
- Lack of support from stakeholders and the government
- Unfavorable government policy and regulations.
- Community resistance (May not want such facility to be located in their community)
- Liability problems
- Arrival of competitors within our market space.
i. Who are the Major Competitors?
- The Episcopal School
- Pacific Northern Academy (PNA)
- Westside Neighborhood School
- Lowell School
- East Linn Christian Academy
- Cambridge-Ellis School
- Saint Ann’s
- The Children’s School.
- Germantown Friends School
- Beyond ABCs
- Mary Institute and Saint Louis Country Day School
- Avenues World School
- National Child Research Center
- Wetherby-Pembridge School
- University of Chicago Laboratory Schools
- Greenhill School
- Presidio Knolls
- Ecole Bilingue de Berkeley
- Gems World Academy
- Bank Street School.
ii. Is There a Franchise for Preschool?
Yes, there are franchise opportunities for preschool and here are some of them;
- Genius Kids (Initial investment: from $122,000)
- KLA Schools (Initial investment: from $1,100,000)
- Adventure Kids Playcare (Initial investment: from $385,000)
- Primrose Schools (Initial investment: $652,000)
- Discovery Point (Initial investment: from $405,570)
- Lightbridge Academy (Initial investment: from $581,000)
- Building Kidz School (Initial investment: from $214,000)
- KidsPark (Initial investment: from $261,000)
- Montessori Kids Universe (Initial investment: from $424,000)
- The Goddard School (Initial investment: from $698,000)
- Kiddie Academy (Initial investment: from $400,000)
- The Learning Experience Academy of Early Education (Initial investment: from $544,000).
iii. Are There Policies, Regulations or Zoning Laws Affecting Preschools?
Yes, there are county or state regulations and zoning laws for preschools, and players in this industry are expected to work with the existing regulations governing such business in the county or state where their business is domiciled.
For example, the designated area for children’s activities should contain a minimum of forty-two square feet of usable floor space per child. A usable floor space of fifty square feet per child is preferred. However, you may be subject to local permits depending on how you plan to operate your preschool.
a. Who is Your Target Audience?
i. Age Range
We will admit children between the ages of 2 and 4 years old.
ii. Level of Educational
We don’t have any restrictions on the level of education of those we will admit their kids to our preschool.
iii. Income Level
We don’t have any cap on the income level of those we will admit their kids in our preschool.
There is no restriction when it comes to ethnicity of the people we are looking forward to admit their kids in our preschool.
There is no restriction when it comes to the language spoken by the people we are looking forward to admitting their kids to our preschool, however, we will prefer people who speak the English language.
vi. Geographical Location
Any parent from any geographical location will be welcome to enroll their kids in our preschool.
Auntie Lavendar® Preschool, Inc. will not restrict any parent from accessing our facility and services based on their lifestyle, culture or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch The Attention of Parents.
- Tap Into Text Marketing.
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels Into a Resource
- Develop Your Business Directory Profiles
- Build Relationships With Other Parent Associations in our Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage on direct sales, direct mail (postcards, brochures, letters, fliers), referral (also known as word-of-mouth marketing).
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing.
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our clients.
- Create an efficient content marketing strategy.
- Create a community for young parents and intending parents.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Auntie Lavendar® Preschool, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package. In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, parent clubs, and clinics to help refer parents to us.
Auntie Lavendar® Preschool, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted.
b. Inventory Strategy
The fact that we will need toiletries, change of beddings, supplies and food per time means that Auntie Lavendar® Preschool, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that Auntie Lavendar® Preschool, Inc. will make available to her donors and contributors;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives and Guarantees
At Auntie Lavendar® Preschool, Inc., we offer services, and the nature of the services we offer does not accommodate return policy, but we will guarantee parents that their kids will get the best of early childhood learning and education.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer’s feedback. This will help us provide excellent customer service to all our customers, it will help us to first understand their needs, experiences, and pain points. We will work with an effective CRM software to be able to achieve our aim of surpassing our customer’s need.
On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
We plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales and operations component. The operations component of the plan would include attracting more customers and additional service offerings that will enable the organization to boost our service offerings and support revenue growth.
a. What Happens During a Typical Day at a Preschool?
- The facility is open for the day
- The facility is cleaned and prepared for the day’s activities
- Parents are welcome and their kids are received from them
- Early childhood learning activities, as well as playing with kids to encourage mental and physical stimulation are carried out as required
- Administrative works are done
- Parents come to pick their kids and the facility is closed for the day.
b. Production Process
There is no production process when it comes to a preschool.
c. Service Procedure
There is no service procedure when it comes to a preschool.
d. The Supply Chain
Auntie Lavendar® Preschool, Inc. will rely on parent associations and other stakeholders in our city to refer parents to us. So also, we have been able to establish business relationship with wholesale supplies of beddings, toiletries, and other supplies.
e. Sources of Income
Auntie Lavendar® Preschool, Inc. make money from;
- Providing daycare services for children under the ages of three and four to prepare them for kindergarten.
- Offering home tutor services for toddlers as requested by their parents
- Retailing early childhood learning materials.
a. Amount Needed to Start Our Preschool?
Auntie Lavendar® Preschool, Inc. would need an estimate of $250,000 to successfully set up our preschool in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation and the renting of our operational facility.
b. What are the Cost Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $1,300.
- Marketing, Branding and Promotions – $3,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $120,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $30,000
- start-up inventory – $15,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $45,000
- Website: $800
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Auntie Lavendar® Preschool, Inc. will not build a new facility for our preschool; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running a Preschool?
- Cost of stocking up supplies such as toiletries, change of beddings, and other supplies
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Salaries of employees
e. What is the Average Salary of your Staff?
- Head of Preschool (President) – $45,000 Per Annum
- Preschool Administrator – $36,034 Per Annum
- Account Officer – $35,000 Per Annum
- Early Childhood Educators – $33,300 Per Annum
- Front Desk Officer – $28,000 Per Annum
- Cleaners and Nannies – $22,000 Per Annum
- Security Guard – $22,000 Per Annum.
f. How Do You Get Funding to Start a Preschool?
- Raising money from personal savings and sale of personal stocks and properties
- Applying for a loan from your bank/banks
- Pitching our business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from our family members and friends.
a. How Much Should You Charge for your Service?
At Auntie Lavendar® Preschool, Inc. it is important to note that we will charge $4,460 to $13,158 per year ($372 to $1,100 monthly) on average, depending on the services involved.
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $450,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1): (65 percent)
- Second Fiscal Year (FY2): (45 percent)
- Third Fiscal Year (FY3): (50 percent)
d. Profit Margin of a Preschool Product/Service
Auntie Lavendar® Preschool, Inc. will work towards achieving between 25 percent to 45 percent.
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Auntie Lavendar® Preschool, Inc. will grow our preschool by first opening other outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchise from the sixth year.
b. Where do you intend to expand to and why?
Auntie Lavendar® Preschool, Inc. plans to expand to Dallas – Texas, New York City – New York, Sumter – Florida and then to Liliano – Texas, Lancaster – Virginia, Alcona – Michigan, Los Angeles – California and Catron New Mexico.
The reasons we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest number of people with kids below the age of 5 in the United States.
The founder of Auntie Lavendar® Preschool, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.
How to Open a Successful Preschool Business: An Essential Guide
Resources on preschool.
- Business Plan
- Value Proposition
- One-Page Business Plan
Starting a preschool business can be a rewarding, yet challenging process. The first step to success is to have a well thought out plan and to be well prepared. The preschool industry has been growing for a few years and it is projected to continue growing in the next few years. According to a recent statistic, the total number of preschool-age children that are enrolled in preschools in the United States has increased by 9.2 percent from 2016 to 2019. It is clear that the demand for preschools is increasing.
This blog post aims to share the essential steps for opening a successful preschool business. The following steps are a guide to help you get started and will give you an overview of what you need to do.
Brainstorm The Concept And Mission Of The Preschool
When starting a preschool business, it is important to first brainstorm the concept and mission of the preschool. This process should involve thinking about the values and goals of the preschool and how they will be used to create a unique learning experience for children. Consider the following when brainstorming the concept and mission:
- The type of preschool you want to create. Will the preschool be a traditional preschool or a more progressive or alternative model?
- The educational philosophies that will be used. What kind of theories, such as Montessori, will be used to teach children?
- The mission statement for the preschool. What will the preschool aim to achieve?
- The goals for the preschool. What do you want the preschool to achieve?
- The values of the preschool. What are the core values that will guide the preschool?
Once these questions have been answered and the concept and mission of the preschool has been determined, you can move on to the next step in starting your preschool business.
Research The Local Regulations And Requirements
It is important for any prospective preschool business owner to understand the local regulations and requirements regarding their school. As each state and local municipality has different regulations, it is important to research the local requirements. Here are some tips and tricks to help you research the local regulations and requirements:
- Start by contacting your local municipality’s business department.
- Review the applicable laws and regulations in your area.
- Contact the state department of education and check for any additional regulations.
- Seek out any professional organizations and associations related to preschools and childcare in your area.
- Connect with other childcare providers in your area for advice and best practices.
- Speak with a lawyer who specializes in local business regulations.
It is important to thoroughly research the local regulations and requirements before opening a preschool business. This will ensure that your business is compliant with all local and state regulations and that you are providing a safe and enriching learning environment for your students.
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Create A Business Plan And Financial Model
Creating a business plan is an essential part of launching a preschool. This plan should include an overview of the business concept, the mission, the market analysis, and a financial model for the preschool. It should also cover the legal requirements, operational plans, and marketing strategies that you will use to launch the business. Here are some tips for creating a comprehensive business plan for a preschool business:
- Gather all the necessary information about the preschool business concept, mission, and market analysis.
- Develop a comprehensive financial model that includes projected revenues, expenses, capital investments, and cash flow projections.
- Consider the legal requirements and regulatory environment of the preschool business.
- Develop a detailed operational plan that covers staffing, curriculum, and other operational matters.
- Outline the marketing strategies that you will use to attract new students and families.
- Enlist the help of a professional business consultant or financial advisor to review the business plan.
Creating a comprehensive business plan and financial model is essential for launching a successful preschool business. It’s important to take the time to carefully research, plan, and develop the business plan to ensure that your preschool business is well-positioned for success.
Secure Funding For The Business
If you are considering opening a preschool, you will need to secure funding for the business. Depending on the size of the preschool, the amount of funding you will need will vary. The amount of money required may include start-up costs, operational costs and any other costs associated with the business.
There are several ways to secure funding for a preschool business. These may include:
- Personal Savings: You can use your own personal savings to fund your preschool business. This is a good option if you want to retain full control and ownership of the business.
- Grants: You can apply for grants from state and local governments, non-profit organizations, and other funding sources. These grants may be used to cover start-up costs, operational costs and other associated costs.
- Investors: You can seek out investors to provide the capital needed to launch your preschool business. These investors may be willing to provide funding in exchange for an equity stake in the business.
- Loans: You can also apply for loans from banks or other financial institutions. These loans may be used to cover start-up costs, operational costs and other associated costs. Be sure to research the terms and conditions of any loan before signing the agreement.
Once you have secured funding for the business, you can begin the process of launching your preschool. Be sure to create a budget and track your expenses to ensure that you are managing your finances in a responsible manner.
File For Permits And Business Licenses
Filing for the necessary permits and business licenses is an important step in the process of launching a preschool business. Depending on the type of business structure you choose, the permits and licenses you require will vary. Here are some tips and tricks to help you get started:
- Research the specific business licenses and permits that are required in your area. Check with your local Chamber of Commerce, city hall or state licensing board for information.
- Have all of the necessary documents ready for filing. This may include proof of business formation, such as Articles of Incorporation, and other documents that are required by the local licensing authority.
- Fill out the business license and permit applications. Be sure to follow all of the instructions and provide accurate information.
- Submit the completed applications and required documents to the local licensing authority. Make sure to include any applicable filing fees.
- Keep track of the application status. You may need to follow up with the local licensing authority if the application is taking longer than expected to process.
Once all of the necessary permits and business licenses have been obtained, you are ready to move on to the next step in opening a preschool business. Good luck!
Hire Key Staff Members
Hiring the right staff members is essential for any successful preschool. The right staff will help create a safe, nurturing, and educational environment that will be beneficial to both the children and the business. When hiring staff, it is important to consider a variety of factors, from experience and qualifications to character and personality.
When it comes to hiring staff for a preschool, it is important to keep in mind the following tips:
- Create a detailed job description that outlines the skills and qualifications needed for the position.
- Conduct background checks and reference checks to ensure that the applicant is qualified and trustworthy.
- Ensure that the applicant has the appropriate certifications or licenses required for the position.
- Choose individuals with strong communication and interpersonal skills, as they will be working closely with children and parents.
- Seek out individuals who have a passion for teaching and working with children, as this will help create a more positive atmosphere.
Hiring the right staff for a preschool is an important step in launching a successful business. By following these tips, business owners can ensure that the best possible staff is hired for the job.
Build Out A Space For The Preschool
Opening a preschool business involves more than just finding a suitable space . It’s essential to build out the space to suit the needs of the preschool. Here are some tips and tricks to consider when building out the space:
- Choose a location that is easily accessible and close to the local community. Consider the safety of the location and the proximity to public transportation.
- Research the local zoning regulations and ensure the space meets all the requirements. This includes making sure it meets the necessary floor area ratio and fire code regulations.
- Design the space to be appropriate for a preschool. This includes creating a safe and comfortable environment for children, with bright colors and plenty of natural light.
- Think about the furniture and equipment needed for the preschool. This includes desks, chairs, toys, and other educational materials.
- Consider the layout of the space. Ensure there is enough room for the children to play and learn, as well as a separate area for staff and administrators.
- Invest in the necessary security measures such as security cameras and alarms to ensure the safety of the children.
- Make sure the space is well-maintained and clean. Hire a professional cleaning service to regularly clean and sanitize the space.
Develop Policies and Procedures
When starting a preschool, it is essential to create policies and procedures that will ensure the safety, security, and well-being of the students and staff. Policies and procedures help to set expectations for students and staff and ensure that everyone is on the same page when it comes to rules and regulations. When creating policies and procedures, it is important to consider the following:
- Safety and security of the students and staff.
- Classroom expectations and rules.
- Disciplinary procedures.
- Cleaning and sanitation procedures.
- Food and nutrition guidelines.
- Emergency preparedness and response procedures.
- Confidentiality and data protection policies.
It is important to involve staff and parents in the process of creating policies and procedures. Additionally, it is important to ensure that the policies and procedures are regularly reviewed and updated as needed. Finally, all policies and procedures should be clearly communicated to staff and parents.
Find and Assess Curriculum Materials
It’s essential to find and assess the right curriculum materials to ensure that the preschool’s educational program and activities are age-appropriate and aligned with the mission of the preschool. Here are some tips to help you find and assess the right curriculum materials:
- Research different curriculum materials and programs available. Consider reading reviews and talking to other preschools in the area.
- Look for materials that are tailored to the preschool’s mission and beliefs.
- Look for materials that are age-appropriate and engaging for the students.
- Consider the cost of the materials and if they are cost-effective for your preschool.
- Assess the quality of the materials and make sure they are up-to-date.
- Make sure the materials are developmentally appropriate and educational.
- Evaluate the materials for any potential safety hazards or risks.
Once you have found the right materials, it’s important to evaluate them to make sure they are the right fit for your preschool. Evaluate the materials by testing them out with the students and observing their reactions and engagement. It’s also important to assess the material’s ability to meet the objectives of the preschool’s educational program.
Market The Preschool To The Local Community
Marketing your preschool is essential to getting the word out and driving interest in your new business. Here are some tips and tricks to marketing your preschool to your local community.
Create A Website
Creating a website for your preschool is one of the most important steps you can take to market your business. Your website should include all the important information about your preschool, such as the mission statement, curriculum, contact information, and the enrollment process. It should also include a blog where you can post updates about your preschool and relevant content for parents.
Advertising your preschool is a great way to reach a wide audience and make sure your business is seen by potential families. There are many ways to advertise, such as through local publications, radio, and television. You can also utilize digital advertising platforms, such as Google Ads and social media ads, to target potential families in your area.
Host An Open House
Hosting an open house is a great way to get potential families in the door and show them what your preschool has to offer. Invite local families to come and tour the facility, meet the staff, and ask questions. Make sure to provide refreshments and giveaways to make the event more enjoyable for everyone.
Partner With Local Businesses
Partnering with local businesses can be a great way to spread the word about your preschool and get more people interested. Reach out to local businesses and offer to provide discounts or other perks for their employees if they send their children to your preschool. This could be a great way to build relationships and drive business.
Participate in Community Events
Participating in local events, such as festivals and fairs, is a great way to get your preschool in front of potential families. You can set up a booth to showcase your preschool and provide information about your business. You can also use these events as an opportunity to network and build relationships with other local businesses.
Utilize Social Media
Social media is one of the most powerful tools you can use to market your preschool. Create accounts on the major social media platforms and start sharing relevant content about your preschool, such as photos and videos of the facility, updates on enrollment, and information about upcoming events. This will help raise awareness and get more people interested in your preschool.
Develop A System For Handling Tuition Fees And Registration
When starting a preschool, it is important to develop a system for handling tuition fees and registration. This system should be organized, efficient, and secure. Here are some tips and tricks to help you get started:
- Create a standard fee structure . When setting up a tuition fee structure, make sure to include a variety of options for families. Consider including a discount for siblings, a payment plan option, and any other discounts or incentives you would like to offer. It is important to create a system that is fair, transparent, and easy to understand.
- Set up an online registration system . Having an online registration system is a great way to make the registration process easier for families. Consider using a service such as SchoolMint or Kinderlime to streamline the registration process and ensure that all necessary documents and fees are collected.
- Find a payment processing solution . You will need to have a way to accept payments from families. Consider using a service such as Stripe or PayPal to make it easier to accept payments online. Additionally, you may want to consider setting up an automated payment system that will allow parents to make payments on a regular basis.
- Develop a system for tracking payments . It is important to have a system in place to track payments from families. Consider using a service such as QuickBooks or FreshBooks to help you keep track of payments, fees, and attendance.
By taking the time to develop a system for handling tuition fees and registration, you can ensure that your preschool is organized, efficient, and secure. This will help you provide a great experience for both families and staff.
Meet With Families And Enroll Students
Once you have established your preschool, it’s time to meet with families and enroll students. To make the best impression on potential families, take the time to plan out a presentation and give tours of the facility. You should also be prepared to answer any questions that families may have about the preschool.
Here are a few tips to keep in mind when meeting with families and enrolling students:
- Make sure you’re well-informed about all aspects of the preschool, from the curriculum to the tuition fees.
- Be prepared to answer any questions about the preschool, such as the safety protocols, the staff qualifications, and the hours of operation.
- Make sure you have a list of all the necessary documents for registration and enrollment.
- Be courteous and friendly, and be sure to give families a chance to ask questions.
- Be clear about the tuition fees, payment schedules, and any discounts or financial aid available.
- Be aware of any regulations or laws regarding preschools in your local area, and make sure you’re in compliance.
- Be mindful of deadlines for registration and enrollment.
By following these steps, you can make sure that you meet with families and enroll students in a professional, organized manner. Taking the time to plan and prepare for these meetings will go a long way in helping you build a successful preschool business.
Starting a preschool business requires a great deal of planning and preparation. Following the steps outlined in this article will help you navigate the process of launching a successful preschool business. First, brainstorm the concept and mission of the preschool. Then, research the local regulations and requirements, create a business plan, secure funding, hire staff members and build out a space for the preschool. You will also need to develop policies and procedure, find and assess curriculum materials, market the preschool to the local community, set up a system for handling tuition and fees, and enroll students.
By following these steps and being well prepared, you will be able to launch a successful preschool business. With the right resources and preparation, you can reach your goals of providing quality childcare and building a successful preschool.
- KPI Metrics
- SWOT Analysis
- Running Expenses
- Startup Costs
- Pitch Deck Example
- Business Model
- Increasing Profitability
- Sales Strategy
- One Page Business Plan
- Rising Capital
- Valuing a Business
- Writing Business Plan
- Buy a Business
- How Much Makes
- Sell a Business
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Home » Sample Business Plans » Education » School
How to Write a Preschool Business Plan [Sample Template]
Do you want to start a preschool and need to write a plan? If YES, here is a complete sample preschool business plan template & FREE feasibility report. There are various business ideas that you may want to start.
However there are some businesses that guarantee good returns on investment. Chief amongst it is the preschool business. One of the reasons why this business is good is the point that you are able to help mound lives whilst you are making good money.
Why Start a Preschool?
Running a preschool can be a very rewarding and profitable venture. An entrepreneur who is interested in children education and also having a business might find that opening a preschool would meet both desires. Before starting a preschool, one must be prepared by ensuring that they carefully plan out the venture from the beginning, by researching on local and state laws that govern pre – school education business.
What Does It Take to Start a Preschool Successfully?
There must also be planning as regards space, getting insurance, developing a curriculum, hiring additional staff, advertising and registration of children. A pre – school program is a business that requires that no details be overlooked.
The first thing that needs to be done before starting out is in contacting the local governing body of child care for relevant information regarding the opening of a preschool. When approaching the governing agency, ask to meet with the administrators, so as to discuss your business idea, and get information on how to become a licensed preschool program provider.
After gathering all the information that you would need including written literature, you would need to contact the local government as regards getting a license to start. Depending on the state you will be operating in, you might be required to register and pay a fee to obtain licensees.
You will also need to ensure that the property you intend to use as a facility is in an acceptable area from which the business can be started, even if it is a section of your own residence, this can be done by contacting the zoning department of your local government, and if the area you choose is not suitable, you will be advised on suitable areas.
After applying for a business license as required by the state and meeting any other special requirements needed in order to become a preschool, you should then consult with insurance agencies regarding the right coverage for your facility. Ensure you choose a plan that will adequately cover you, your clients, as well as your business.
Lastly, ensure that you prepare your location for safety inspections, while ensuring that your facility has emergency evacuation plan in place for any unforeseen circumstances or disasters. Also prepare a curriculum for your pre – school program.
You can either choose an established program from a particular publisher or choose various materials from several publishers, while not forgetting that you have an option of creating your own curriculum. Do not also forget to hire qualified staff after running background checks, and marketing your school.
A Sample Preschool Business Plan Template
Table of Content
1. Industry Overview
3. our products and services, 4. our mission and vision statement, 5. job roles and responsibilities, 6. swot analysis, 8. our target market, 9. sales and marketing strategy, 10. sales forecast, 11. publicity and advertising strategy, 12. our pricing strategy, 14. sustainability and expansion strategy.
The Preschool industry operators provide day care services for children under the ages of three and four to prepare them for kindergarten.
The dispersion of the preschool programs reflects in the geographic distribution of the children, which is also influenced by the cost and supply of pre – school programs, income and housing affordability patterns, labor, and child care subsidy policies. Also, varying state and local regulations and licensing requirements affect employment in this industry.
According to research and statistics, this industry generates $53 billion annually, and is projected to have an annual growth rate of 2.5% by 2016. The number of business in this industry amounts to 768,021, employing 1,664,311 people.
There are about 53,000 commercial facilities, plus about 21,000 facilities run by non-profit organizations. The industry is highly fragmented as the top 50 companies generate less than 20% of revenue for the entire industry.
Preschool programs became popular especially as more percentage of women in the workforce grew by nearly 71% in 2007. According to the Bureau of Labor Statistics (BLS), 28% of mothers with young children worked in 1975, which has more than doubled by 60% by 2013.
Over the same period, employees in the daycare industry increased by nearly 250%. The bureau also noted that investment in childcare by non-profit and government agencies, as well as new tax credits, also helped to fuel the industry’s growth.
According to the Child Care Aware group, about 11 million children under the ages of 5, spend an average of 35 hours a week in childcare. Infants in center-based care had an average annual cost that ranged from $5,496 in Mississippi to $16,549 in Massachusetts; 4 year olds had care in a center ranging from $4,515 in Tennessee to $12,320 in Massachusetts; with the quality of care and degree of regulation varying widely.
Also, childcare workers were seen to be paid the lowest wages in any professional field, $21,490 on average. However, the recovery of the economy is already impacting greatly on the preschool market.
Parents and especially mothers are going back to work, thereby causing the demand for preschools and preschool services to grow. This means that disposable income will increase which will let parents especially women put more resources towards child care like the high value early educational programs.
Even though this might seem like a saturated field, it isn’t, as there is always a constant demand for parents to prepare their children for proper schooling. The incentives in venturing into or starting a pre – school are having an impact on toddlers who are struggling academically and getting them engaged so that their parents will carry out their businesses or other activities.
2. Executive Summary
Future Stars® Pre – School is a standard and well – equipped pre – school that will be located in a well – populated residential estate in Ashville – North Carolina, united states of America. We are a preschool that provide day care services for children under the ages of three and four to prepare them for kindergarten.
Aside from the fact that we will operate a preschool center, we will also engage in home tutoring – we will go to the homes of our students as demanded by their parents.
Future Stars® Preschool is a client-focused and result driven preschool that provides day care services and broad-based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients (parents).
We will offer a standard and professional pre – school daycare and teaching services designed for toddlers in a highly secured, neat and conducive learning environment. We will ensure that we work hard to meet and surpass all our parents’ expectations and educational goals whenever they enroll their kids in our pre – school.
At Future Stars® Preschool, our kids’ and their parents’ overall best interest would always come first, and everything we do is guided by our values and professional ethics.
We will ensure that we hire professional educationist and care – giver who are well trained to handle kids that are of pre – school age in various kids development learning areas who are well experienced and passionate in imparting knowledge to toddlers at various learning ladder (potty training, rhymes, walking, dancing and talking et al).
Future Stars® Preschool will at all times demonstrate her commitment to sustainability, both individually and as an educational organization, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our clients’ (parents) needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our students.
Our overall business goal is to position Future Stars® Pre – School to become the leading Pre – School brand in the educational industry in the whole of Ashville – North Carolina, and also to be amongst the top 50 pre – schools in the united states of America within the first 10 years of operations.
This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Ashville – North Carolina is the right place to launch our pre – school; they have the right demographic composition that can support and sustain our business model.
Future Stars® Preschool is founded by Mrs. Clara Jake – MacPherson. She has a Degree in Education with bias in children education and she has well over 16 years of experience in the educational industry in the United States of America. She will be bringing in her wealth of experience to help build Future Stars® Pre – School to enviable heights.
The Future Stars® Preschool is going to offer daycare services within the scope of the education board in the United States of America. Our intention of starting our pre – school is to soundly prepare toddlers who are under the ages of three and four for kindergarten and of course to make profits from the education industry and we will do all that is permitted by the law in the US to achieve our aim and business goal.
Our service offerings are listed below;
- Provide daycare services for children under the ages of three and four to prepare them for kindergarten.
- Running a Standard and licensed Daycare Center
- Offering Home Tutor Services for toddlers as requested by their parents
- Retailing of Kids Educational Books and Materials
- Our vision is to build a highly competitive pre – school / daycare center that will become the number one choice for parents in the whole of Ashville – North Carolina.
- Our vision reflects our values: integrity, service, excellence and teamwork.
- Our mission is to provide professional, safe and conducive daycare and learning environment to toddlers.
- Our overall business goal is to position our tutorial college to become the leading pre -school brand in the educational industry in the whole of Ashville – North Carolina, and also to be amongst the top 50 preschools / daycare center in the United States of America within the first 10 years of operations.
Our Business Structure
Future Stars® Pre – School will build a solid business structure that can support the growth of our pre – school. We will ensure that we hire competent hands to help us build the business of our dream. The fact that we want to become the leading pre – school / daycare brand in the educational industry in the whole of Ashville – North Carolina makes it highly necessary to deliberately build a well – structured business from the onset.
At Future Stars® Preschool we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our long serving senior staff members and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Head of The Pre – School (Daycare) / School Coordinator
- Tutors for Various Learning Areas
- Nannies / Caregivers / Aux Nurse
Marketing and Sales Executive
Accountant / Bursar
- Client Service Executive / Front Desk Officer
- Security Officer
Head of the Pre – School / School Coordinator:
- Responsible for providing direction for the pre – school / daycare center
- 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 handling high profile clients and deals
- Responsible for fixing fees and signing business deals (partnership)
- Responsible for signing checks and documents on behalf of the tutorial college
- Coordinates all arms of the pre – school
- Evaluates the success of the pre – school / daycare center
- Reports to the board of the pre – school / daycare center
- Responsible for overseeing the smooth running of HR and administrative tasks for the pre – school
- Design job descriptions with KPI to drive performance management for all staff members
- Regularly hold meetings with key stakeholders (parents and member of the school board) to review the effectiveness of the schools’ Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversee the smooth running of the daily activities of the tutorial college.
Tutors for Various Learning Areas for Toddlers
- Effectively teach subject / subjects as assigned by the school coordinator
- Access the progress of kids under their care
- Ensure that kids participate in learning activities such as potty trainings, rhymes and dancing et al
- Contributes his / her quota towards growing the pre – school
- Receives complaints from parents and channel it to the appropriate quarters
- Handle any other duty as assigned by the school coordinator.
Nannies / Caregivers / Aux Nurses
- Responsible for changing diapers for kids and cleaning them up when they messed up themselves
- Responsible for feeding toddlers
- Ensures that toddlers sleep as at when due and help calm them when they are crying
- Goes the extra mile to ensure that toddles are comfortable and well taken care of.
- Contributes his / her quota towards growing the pre – school / daycare center
- Handles any other duty as assigned by the school coordinator.
- Identifies, prioritizes, and reaches out to new parents, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluate new plans for expanding increase sales
- Document all customer contact and information
- Represents the company in strategic meetings
- Help increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the tutorial college
- Serves as internal auditor for the tutorial college
Client Service Executive
- Welcomes toddlers and their parents by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with parents (e-mail, walk-In center, SMS or phone) provides them with a personalized customer service experience of the highest level
- Through interaction with parents on the phone, uses every opportunity to build their interest in the school’s products and services
- Manages administrative duties assigned by the school coordinator in an effective and timely manner
- Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries
- Receives parcels / documents for the Pre – school
- Handles any other duties as assigned by the school authority
- Maintain a clean daycare facility by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensures that toiletries and supplies don’t run out of stock
- Responsible for handling laundry
- Ensure that the daycare facility is secured at all time
- Control traffic and organize parking
- Give security tips to staff members from time to time
- Patrols around the building on a 24 hours basis
- Submit security reports weekly
- Any other duty as assigned by the school coordinator.
Future Stars® Pre – School engaged the services of a core professional in the area of business consulting and structuring to assist our pre – school in building a well – structured educational business that can favorably compete in the highly competitive education industry.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Future Stars® Pre – School. Here is a summary from the result of the SWOT analysis that was conducted on behalf of The Future Stars® Pre – School;
Our core strength lies in the power of our team; our workforce. We have a team that has the right passion and drive for taking care of toddlers, a team with excellent qualifications and experience in daycare / pre – school education. We are well positioned in a community with the right demographic composition and we know we will attract loads of parents who would want to enroll their kids from the first day we open our doors for daycare services.
As a new pre – school / daycare center in Ashville – North Carolina, it might take some time for our organization to break into the market and gain acceptance in the already saturated pre – school / education industry; that is perhaps our major weakness. Also we might not have the required money to pump into advertising and promoting our brand the way we would want to.
The opportunities in the pre – school / education industry is massive considering the number of parents who would want their kids under school age to be in safe place and to get them prepared for kindergarten. As a standard, safe and highly comfortable daycare center, we are ready to take advantage of any opportunity that comes our way.
Every business faces a threats or challenges at any part of the life cycle of the business. These threats can be external or internal. This shows the importance of a business plan, because most threats or challenges are to be anticipated and plans put in place to cushion what effect they might bring to the pre – school.
Some of the threats that we are likely going to face as a pre – school operating in the United States of America are unfavorable government policies that might affect daycare centers, the arrival of a competitor within our location of operations and global economic downturn which usually affects spending / purchasing power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.
7. MARKET ANALYSIS
- Market Trends
The trend in the pre – school / daycare center line of business is that the keys to attracting parents to enroll their wards is the safety, cleanliness, location and of course the overall comfort of their toddlers.
The trend in the daycare center industry is such that players in this industry can now comfortably start their daycare business in an business district; a place where it is easier for working class parents to take advantage of their launch breaks and even tea breaks to dash down to breast – feed and cuddle their children before dashing back to work.
The demand for pre – schools is driven by the fact that most parents work or are engaged in businesses that takes them away from their kids that are under school age and one of the options left is to enroll such kid in a daycare center.
The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of early education. The areas you would need to spend heavily on is in ensuring that your school is up to standard, is the facility, your advertisements, and insurance.
As a standard preschool / daycare center, Future Stars® Pre – School offers a wide range of pre – school services hence we are well trained and equipped to services a wide range of kids are different growth level irrespective of any challenges et al.
Our target market as a preschool / daycare center cuts across parents with kids under school age of different class and people from all walks of life.
We are coming into the pre – school / education industry with a business concept that will enable us work with the toddlers at different learning stages. Below is a list of the parents / toddlers that we have specifically design our pre – school services for;
- Working class parents with toddlers under school age
- Parents with toddlers under school age who run their own business and are too busy to take care of their wards during business hours
Our Competitive Advantage
This field is a highly intense one because of the level of quality service offerings by the pre – schools, who are more pressured to deliver better services. Due to this pressure, there is a jostling amongst the different pre – schools to get more parents to enroll their toddlers in their daycare center, thereby increasing their earnings as well.
We are quite aware that to be highly competitive in the preschool / education industry means that you should be able to deliver consistent quality service, parents should be able to experience remarkable difference and improvement in their toddlers and you should be able to meet the expectations of the educational governing board in the United States of America.
Our competitive advantage lies in the power of our team; our workforce. We have a team that has the right passion and drive for taking care of toddlers, a team with excellent qualifications and experience in daycare / preschool education. We are well positioned in a community with the right demographic composition and we know we will attract loads of parents who would want to enroll their kids from the first day we open our doors for daycare services.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups pre – school / daycare center in the United States) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
- Sources of Income
Future Stars® Preschool is established with the aim of maximizing profits in the preschool / education industry and we are going to go all the way to ensure that we do all it takes to attract parents on a regular basis. Future Stars® Preschool will generate income by offering the following services;
One thing is certain; there would always be parents who may want their kids under school age to be in safe place and to get them prepared for kindergarten. As a standard, safe and highly comfortable daycare center, we are ready to take advantage of any opportunity that comes our way.
We are well positioned to take on the available market in Ashville – North Carolina and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the pre – school and our student base.
We have been able to critically examine the preschool / daycare center market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Ashville – North Carolina.
Below is the sales projection for Future Stars® Pre – School, it is based on the location of our daycare center and of course the wide range of pre – school services that we will be offering;
- First Year-: $75,000
- Second Year-: $150,000
- Third Year-: $350,000
N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. So, there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there is stiffer competition amongst pre – schools / daycare centers in the United States of America hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Future Stars® Pre – School. We want to build a standard and first – class pre – school / daycare center that will leverage on word of mouth advertisement from satisfied parents
Our goal is to grow our preschool to become one of the top 50 pre – schools / daycare center in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Ashville – North Carolina but also in other cities in the United States of America.
Future Stars® Pre – School is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our pre – school / daycare center by sending introductory letters alongside our brochure to parents / household and key stake holders in Ashville – North Carolina.
- Print out fliers and business cards and strategically drop them in religious centers, libraries and public facilities.
- Use friends and family to spread word about your pre – school / daycare center
- Post information about our pre – school / daycare center on bulletin boards in places like churches, maternity clinics, parks, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our pre – school / daycare center
- Leverage on referral networks such as agencies that will help match parents with toddlers under school age with our pre – school/ daycare center.
- Join relevant association or body that will enable you network and meet others in same industry.
- Advertising online by using an advertising platform such as Google Adwords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
- Advertise our pre – school in relevant educational magazines, newspapers, TV stations, and radio station.
- Attend relevant educational expos, seminars, and business fairs et al
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied parents
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both parents and students in the whole of Ashville – North Carolina which is why we have made provisions for effective publicity and advertisement of our pre – school / daycare center.
Below are the platforms we intend to leverage on to promote and advertise Future Stars® Pre – School;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events / programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
- Install our Bill Boards on strategic locations all around Ashville – North Carolina.
- Engage in road show from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- Contact corporate organizations by calling them up and informing them of our pre – school / daycare center, and the advantage we over the others.
- Passing general information via our social media handles like twitter, Facebook, Google hangouts etc.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.
Generally for pre – school and daycare services flat fees on a weekly or monthly basis is what is obtainable. As a result of this, Future Stars® Pre – School will charge our parents who enrolled their toddlers in our daycare center flat fees except for few occasions where there will be need for us to charge special students on hourly basis.
At Future Stars® Pre – School we will keep our fees below the average market rate for all of our students by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals.
We are aware that there are some kids that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such kids’ needs.
- Payment Options
At Future Stars® Pre – School, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
- Payment via mobile money
- Payment with cash
In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.
13. Startup Expenditure (Budget)
In setting up a pre – school business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a higher amount of capital as you would need to ensure that your employees are well taken care of, and that your pre – school’s environment is conducive enough to keep kids.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a pre – school business; it might differ in other countries due to the value of their money. However, this is what it would cost us in the United of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring a facility / property that will accommodate the number of kids that we want to take care of for at least 6 months (Re – Construction of the facility inclusive) will cost – $35,000.
- Equipping the office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
- The budget for paying staff members and utility bills for at least 3 months – $70,000
- The budget for start – up inventories (toiletries, toys, cots, and mats et al) – $2,500
- Launching an official Website will cost – $500
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard and well equipped pre – school / daycare center in the United States of America.
Generating Funding / Startup Capital for Future Stars® Pre – School
Future Stars® Pre – School is a private business that will be owned by Mrs. Clara Jake – McPherson and family. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sale of his stocks
- Generate part of the start – up capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to offer a wide range of tutorial services and other related services to high school students, students with disabilities and elderly students (adult education).
We know that if we continue to deliver excellent daycare services, there will be steady flow of income for the organization. Our key sustainability and expansion strategy is to ensure that we only hire competent and selfless staff members, create a conducive working environment and employee benefits for our staff members.
In the nearest future, we will explore the options of either selling out franchise or expanding our scope beyond Ashville – North Carolina to other major cities in the United States of America. We know that if we implement our business strategies, we will achieve our business goals and objectives in record time.
Check List / Milestone
- Business Name Availability Check:>Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the start – up capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Pre – Schools’ Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Pre – School: In Progress
- Creating Awareness for the pre – school in Ashville – North Carolina: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the education industry: In Progress
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How to Write a Preschool Business Plan
Are you thinking about starting your own preschool? If so, it’s crucial to create a plan before you open your school. There are many factors that go into running a successful preschool. Your plan’s action items will depend on the specifics of your vision for your business.
In this blog post, we’ll discuss the steps that go into writing a comprehensive business plan for a preschool business. We’ll outline the essential components of a solid business plan. And we’ll also provide some helpful tips so you can write your own!
Ask yourself: What will the purpose of your preschool be?
One of the first steps of outlining your preschool business plan is determining your preschool’s purpose. Creating your mission statement will help guide you through all aspects of running your preschool. It ensures that your mission’s intended purpose is aligned with your vision.
There are a number of different types of preschools out there. Whether you’re looking to create an inclusive school environment or you intend to open an all-day preschool that caters to children who have autism or other special needs, it’s important to identify what type of preschool you intend to run before moving forward.
Determine the costs & revenue for your business plan
The next step in writing your preschool’s business plan is to determine the cost of starting your preschool. This includes the most common expenses. For example, monthly rent or mortgage payments, equipment and furniture, registration fees, and advertising/marketing materials (like flyers or brochures).
All of these expenses add up fast! You’ll want to do some research into the tuition prices of similar schools in your area. This will not only give you a helpful benchmark but can also give you a competitive edge as well.
Examine your market needs
Next, you’ll want to examine your market. This includes looking at the size of your target demographic and who they are. It also includes children’s age range and where your prospective families live in relation to where you plan to open up shop.
You’ll also need to develop a grasp of the types of families that might be interested in enrolling their children at your school so that you can tailor your marketing materials specific to them.
If you don’t complete this step first, it will be hard to know how much time or money you’ll need to allocate toward advertising or how to determine your school’s enrollment fees. No preschool business plan is complete without this very important step!
Establish policies and procedures
Your next step in outlining your preschool business plan is establishing the policies and procedures you plan to implement. The best way to communicate your policies and procedures to new families and employees is through handbooks.
For employees, you need to ensure that you include information in your handbook about policies and procedures for requesting time-off, reporting children’s absences, your dress code if applicable, and more!
For new families, their handbook should include information about the registration process, pick-up and drop-off times, student attendance policies, and whom to contact if there is a problem with your services or facilities, for example. All of these little things go a long way with new parents and employees.
Promote your new preschool
Nowadays, most businesses have a website so people can find information including that business’s location, contact details, and what types of services they provide. Preschools are no exception. Make sure that when you set up your website , it is user-friendly, loads quickly, and reflects your preschool’s core values.
Not only does a stellar website legitimize your preschool in the eyes of prospective parents, but it also acts as a hub for all of the other channels to which you need to promote your preschool… which brings us to our next mode of promotion: social media!
If your social media presence is lacking (or even worse, nonexistent), you are almost guaranteed to be missing out on reaching an entire audience of prospective families in your area. We recommend you start by establishing pages on platforms like Facebook and Instagram.
Make sure that you post regularly (about three to five times per week), and ensure that your content is consistent across the board. With the availability of new automation tools that can help you schedule your posts, not having enough time is no longer an excuse!
While online marketing initiatives make it easier to measure your results, it’s also wise to incorporate some more traditional marketing methods as well. Hanging flyers at local businesses and organizations is an easy, low-cost way to get the word out about your school.
Once you start gaining enrollments, you can even offer parents incentives if they make referrals to their friends and family!
Your preschool business plan needs to be clearly outlined before you open your doors. This will ensure that everything goes as smoothly as possible, in both the short-term and long-term. You’ll need to make decisions regarding costs, operating policies, and procedures, examine your market needs, and develop an effective promotion strategy for attracting families.
From there, your main focus will be driving and retaining enrollments so that your preschool can thrive!
Are you thinking about opening your own preschool? Contact No Joke Childcare today for a free consultation!
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Childcare Marketing Playbook
Envision, Execute, Educate: Creating a Business Plan for Your Daycare and Preschool
The importance of a well-structured business plan in the field of early childhood education and childcare cannot be emphasized. Aspiring entrepreneurs and educators who want to open a daycare or preschool face a dynamic and complex landscape that necessitates careful preparation and foresight. A business strategy acts as a compass, illuminating the road toward a sustainable childcare endeavor.
The best way to develop a comprehensive business plan for a daycare and preschool is to meticulously outline the approach and operational strategy for setting up and running a childcare center. It covers objectives, target market, competitive analysis, financial projections, and marketing strategies.
This article goes into the essential components of a thorough business plan for a daycare or preschool. We illuminate the route to developing a safe, supportive, and exciting environment where children can learn, play, and thrive by embarking on this exploration of the aspects that form an effective business strategy.
Table of Contents
Setting Clear Objectives
A vital pillar at the heart of a business strategy is the formulation of specific and attainable objectives. This notion is especially important in the field of childcare and preschool operations, where a careful balance of financial educational excellence must be struck. Crafting objectives that transcend both of these realms is the compass that guides the establishment’s course, assuring its viability and influence.
Setting firm financial goals is critical for the childcare and preschool’s long-term growth. These financial goals range from revenue targets that give a quantitative benchmark for growth to profit margins that define the venture’s financial health and return on investment that justifies the resource allocation to the business. These goals serve as the foundation for financial planning, allowing the organization to allocate resources more efficiently and develop strategies for revenue creation and expense management. They lay the framework for educated decision-making, fueling long-term strategic choices.
However, without recognizing the importance of the educational dimension, the aims of a daycare and preschool are insufficient. Educational objectives encompass the essence of the establishment’s mission: to nurture and support the growth of young minds. Objectives in this arena may include developing a well-rounded curriculum that addresses cognitive, social, emotional, and physical development milestones. They may also include a commitment to maintaining a high standard of care, assuring the safety, happiness, and well-being of the children under the care of the center. These objectives serve as a road map for hiring and training employees, establishing a suitable learning environment, and building meaningful relationships with parents.
The genuine beauty of a daycare or preschool business plan emerges from the convergence of financial and educational goals. By aligning these objectives, decision-makers are better equipped to make decisions that are not only fiscally responsible but also in line with the instructional mission of the institution. Striking this equilibrium creates a virtuous cycle in which financial growth allows for the allocation of resources to optimize educational quality, while achievement of educational goals improves the center’s reputation and financial viability.
Read more about: Designing a Winning Daycare Business Plan Template: Essential Components
Identifying the Target Market
One thread stands out as particularly important in the intricate fabric of business planning: understanding the target market. This careful awareness of the audience serves as the foundation for services that are personalized to meet the unique needs of both parents and children. A complete examination of the local demographic landscape is crucial to this endeavor, revealing useful information to shape a childcare center’s products into a great match for its potential customer.
Through the prism of demographic study, a rich mine of information is revealed that directs the route to a daycare endeavor. Age, income level, and cultural diversity all act as compass points, expressing the community’s preferences and needs. This analytical investigation reveals the core heart of the possible client base. It tells whether there is a sizable population of working parents looking for stable childcare options, or whether there is a desire for flexible timings that meet a variety of work schedules. Understanding the demographic fabric reveals the intricate intricacies that inspire service design, assisting entrepreneurs in crafting a menu of offers that not only serve a need but also resonate with the local community.
This delves much deeper into the community’s cultural tapestry. Entrepreneurs can uncover the secrets to a customized curriculum that goes beyond academic aims by unraveling the threads of educational aspirations and cultural preferences. Is it necessary to respect and include cultural customs in the learning process? Are there unique educational ideologies that correspond with the values of the community? By answering these questions, childcare facility owners may create educational programs that honor the community’s tradition while moving children toward a future filled with study and growth.
With these insights, entrepreneurs may build a childcare center that effortlessly corresponds with their target audience’s requirements, goals, and aspirations. The thorough integration of services and programs with the complexities of the target market results in a resonance that resonates with both parents and children. It forges a more than transactional connection, one that speaks to the essence of what the community needs and values.
Conducting a Comprehensive Competitive Analysis
Few maneuvers in the complicated dance of corporate strategy are as important as rigorous competition analysis. This thorough assessment provides a bird’s-eye view of the existing childcare terrain in the chosen region, providing a guide for entrepreneurs negotiating the numerous routes of market distinction. Business owners, like professional cartographers, examine the environment, mapping out their competitors, their strengths and weaknesses, and the range of services they offer.
The practice of identifying rivals is crucial to this investigation. This requires delving into the market’s ecosystem and identifying the players who have already made their mark. Entrepreneurs acquire insight into the dimensions of the competitive landscape by spotting these rivals. They determine who has previously grabbed a market share and in what capacity. This is the starting point, a snapshot of the battlefield from which business plans will be created.
This analysis goes beyond mere recognition to go deeper into the core of rivals. From the shadows, strengths, and weaknesses emerge each a brushstroke on the canvas of competition. These evaluations reveal the areas where other daycare centers shine as well as the chinks in their armor that could be exploited. Entrepreneurs gain insights into what causes their competitors to prosper or struggle, allowing them to develop a plan that capitalizes on their strengths while exploiting the competition’s flaws.
However, the analysis does not end with dissecting competitors; it extends its tentacles to investigate the tapestry of services they weave. This in-depth investigation reveals the whole range of offerings, from curriculum options to operational approaches. Examining the menu of services available provides business owners with not just inspiration but also opportunities. Hidden holes often exist in the seemingly packed landscape—unmet needs and ambitions that entrepreneurial vision might solve.
The competitive analysis goes beyond emulation and serves as a springboard for innovation. Entrepreneurs extract the ingredients for a distinct value proposition by studying the competitors. This special offering becomes the rallying cry that sets their daycare center apart from the competition. It appeals to parents looking for high-quality, innovative care for their children, working as a magnet attracting them to the establishment.
Projecting Financial Viability
Financial predictions serve as the structural backbone of a childcare and preschool business plan, sustaining the full edifice of the effort. These forecasts, like the plan for large construction, give the framework for entrepreneurs to build a viable and flourishing business. These calculations necessitate foresight and precision, as they involve the interaction of anticipated revenue sources, carefully calculated expenses, and the necessary infusion of capital.
As entrepreneurs embark on this financial journey, their compass points to a broad perspective that includes a variety of factors. The projected revenue streams that would bring the enterprise to life are foremost among these concerns. Consideration is given to the many sources of income, ranging from tuition fees provided by parents to potential collaborations or supplemental offers. Entrepreneurs develop revenue predictions that blend ambition and realism by meticulously analyzing market dynamics and rival pricing, laying the groundwork for long-term productivity.
Simultaneously, the expense ledger emerges, revealing a parade of critical data such as staffing costs, building fees, and investments in equipment and materials. These line items reflect the practical reality of the childcare center. The costs of experienced educators, a compassionate support team, and well-maintained buildings are meticulously sketched on a plan. The financial forecast process necessitates rigorous attention to detail as entrepreneurs compare expenses against revenues, creating a balanced equation that assures economic restraint without sacrificing the quality of care and education given.
However, the financial journey does not end with these preliminary figures. A thorough cash flow analysis acts as a guide for navigating the ebbs and flows of financial tides. This analysis provides a lifeline during difficult times, showing the center’s financial health. It provides insights into situations in which expenses may temporarily outnumber profits and helps entrepreneurs to face these obstacles with resilience. Entrepreneurs may ensure that the childcare center not only grows but also endures by bolstering the center’s financial framework through this study.
These estimates have two functions: they entice new investors and serve as the foundation for prudent financial stewardship. Credible financial projections are like a welcoming hug in the world of investing, offering potential investors a clear image of the venture’s future. Investors are drawn to these estimates because they demonstrate the entrepreneur’s strategic knowledge and dedication to achievement.
These estimates go beyond financial allure, becoming a guiding star for good financial management. Entrepreneurs use predictions to analyze growth, make informed decisions, and re-calibrate strategies like they would a seasoned navigator using star charts. This precise attention to financial detail is what elevates a budding daycare and preschool company into a strong, long-lasting institution.
Read more about: PDF Templates: Your Starting Point for Senior Day Care Business Planning
Crafting Effective Marketing Strategies
The canvas for achievement is painted with the brushstrokes of smart marketing techniques in the dynamic landscape of daycare and preschool businesses. These techniques, similar to the nurturing atmosphere supplied to young minds, tend to the growth of the center by drawing parents and developing a sense of community. This sophisticated dance, tailored to the contours of the target market, covers both traditional and digital channels, orchestrating a symphony of exposure and interaction.
The art of alignment lies at the heart of this endeavor, ensuring that marketing activities resonate perfectly with the sensibilities of the target market. It’s like creating a one-of-a-kind wardrobe that parents can instantly relate to and imagine their children prospering in. To accomplish this, entrepreneurs use a palette that combines traditional and digital channels. While word-of-mouth referrals and flyers in local businesses remain valuable, the digital domain has evolved into a formidable tool. A quality website serves as a virtual front door, allowing parents to quickly learn about the center’s concept and offers. When used correctly, social media platforms may go beyond mere promotion and become opportunities for genuine participation.
The development of a captivating web presence, similar to the magnetic pull of a lodestar, leads parents on a journey to learn about the center’s services, values, and commitment to early childhood education. A virtual tapestry is built that highlights the center’s care, learning, and lively community through colorful images, insightful content, and personal testimonials.
However, the marketing artwork goes beyond the digital canvas. Entrepreneurs understand the importance of personal connections and community involvement. Partnerships with local businesses create synergistic potential for mutual visibility by tapping into existing networks. Participation in community events serves as a showcase for the center’s personality and commitment to the advancement of the community. The nurturing touch extends to enlightening workshops that not only distribute knowledge but also develop friendships and cement the center’s reputation as a beacon of educational excellence.
An effective marketing plan’s artistry goes beyond aesthetics; it’s about the strategic interaction between visibility and engagement. An effective strategy, like a well-tuned instrument, connects with the ambitions of parents, generating an affinity that transcends transactional connections. The symphony orchestrates a regular stream of enrollments, ensuring the childcare center’s financial stability. This influx is more than a numbers game; it demonstrates parents’ faith and belief in the center’s promise of complete development.
Frequently Asked Questions
Why is a detailed business strategy required for a daycare or preschool?
A thorough business plan acts as a road map for developing and running a daycare or preschool. It defines effective marketing strategies, specifies the approach and operational strategy, establishes clear objectives, identifies the target market, assesses competition, projects financial feasibility, and defines marketing strategies. This strategy not only provides a structured framework for the endeavor, but it also assists in attracting possible investors, guiding decision-making, and ensuring the childcare center’s sustainability and profitability while maintaining quality care and education for children.
How do I select my daycare and preschool’s target market?
Identifying the target market necessitates a detailed examination of the local demographic. Consider aspects such as the age of the children, the demands of working parents, income levels, and cultural variety in the neighborhood. Understanding potential clients’ specific wants and preferences allows you to personalize your services, courses, and offerings to meet their expectations. This understanding aids in the development of a daycare facility that appeals to parents looking for dependable and high-quality care for their children.
What should I include in my daycare and preschool business plan’s financial projections?
Financial projections are an important part of your business strategy since they provide information about your childcare center’s financial health and sustainability. Include projected revenue streams, expenses, and funding needs. Consider employee costs, facility expenses, equipment investments, and anticipated enrollment variations. A complete cash flow analysis aids in the proper management of financial resources, ensuring the center’s ability to meet expenses and earn profits over time. Realistic financial predictions not only attract investors but also guide your financial decisions as you set up and build your daycare and preschool.
To learn more on how to start your own daycare checkout my startup documents here.
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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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Preschool Business Plan Sample
Do you want to start a Preschool business plan?
Are you thinking of drafting a business plan for a preschool? If you want to know how to write a business plan for a preschool, you can refer to business plans like the one presented here.
Starting a new business can be hard, especially in the education sector but it can also be very rewarding. So, if you want to know how to develop a business plan for angel investors that will get them excited and interested in your business, then start by following this document.
Here, we will be presenting a preschool business plan with a focus on tutoring business ideas .
2.1 what is the business.
This document contains the sample business plan for preschool that will be called LearnALot. LearnALot will be a preschool/ daycare center operated and managed by Theodore Krasinski. It will offer parents a chance to make their kids have fun in a safe environment. Besides, the kids will also be taught the basics.
2.2 Management of Preschool
Starting a preschool business plan can be hard. But the process to plan and manage the business becomes easier if you split it into smaller and more manageable parts. If you want to make a business plan for a preschool center , the first thing you need to do is to draft everything.
In this business plan for a preschool pdf, we will plan out all the necessary details of LearnALot one by one. If you want to write a business plan for preschool, you can follow the guide. You can also hire business planning services to get a professional business plan written for your startup.
2.3 Customers of Preschool
The customers of LearnALot will belong to all kinds of family backgrounds. Due to our daycare services, parents or families with small or special needs children will make a major customer group.
- Working Parents
- Single Parents
- Concerned Parents
- Families with special needs kids
2.4 Business Target
The target of LearnALot is to become a reliable daycare and educational center for the residents in Florida. We aim to cater to healthy and normal children as well as those with special needs.
The financial targets that LearnALot wants to achieve within the first three years of operation are demonstrated below:
3.1 company owner.
Theodore Krasinski will be the owner and manager of LearnALot. Theo got his master’s in education three years ago after which he served as a teacher for two years and as a principal in the third year. However, he always felt a need to do more so he decided to open a special preschool himself.
3.2 Company History
Theo noticed that though public schools were trying their best, they didn’t focus on acquiring the tools to cater to children of different needs. There was also a lack of preschools and daycares in the surrounding. To eradicate this issue, Theo decided to open a preschool that would prepare students of all kinds to keep up when they got into school.
3.3 How the Preschool will be started
Step1: Evaluate Goals
Starting up a preschool business or any business in that domain requires a lot more than money. Before you start a business, you need to be sure about the goal you want to achieve via it. The goal can be scaling up the business, earning profits or increasing the well-being of the community, or anything else. But there needs to be a solid goal to direct your operations.
In this open driving school business plan , we will list the SMART business goals adopted by LearnALot.
Step2: Plan the Business
Once you are sure about the goals of your business, you can start developing a business plan template for preschool. If you are not sure how to develop a business plan, you can take help from preschool business plan examples like this one to learn how to write a business plan for a preschool.
Step3: Plan Structure and Logistics
Now that you know the base details of the business, you will be able to sort out the finances. This will include estimating the costs that will be involved in starting the business.
Step4: Get Funding
Any business needs money to start and function before it can become self-sustaining. To get the initial funding for LearnALot, Theo decided to write up a strong business plan that would wow the investors.
Step5: Find a Physical Space
Every business, big or small, needs space to function. Therefore, to start a preschool, you will need a building to set up everything. Theo decided to rent out a building with some space in the front so that he could develop an outdoor play area as well.
Step6: Promote and Market
The final step of the business is to develop a marketing plan to promote the business both in the online and physical realm. Theo will hire a marketing plan specialist to develop a marketing plan that can be easily followed to bring more customers to the business.
All business plans including business plans for preschools include details of what services or products the business will provide. Deciding these things ahead of time allows you to develop a preschool business proposal more efficiently.
A preschool business plan like an e-learning business plan will help you map your business in detail. That will, in turn, allow you to manage it in a better way and gain more funding.
In the case of this preschool business plan template, Theo decided to include all the major services that he will offer to the customers through his business.
- Day Care Services
The primary service provided by LearnALot will be daycare. The business will offer daycare services for all types of parents. This will include parents who just want to drop their kids temporarily for a few hours while they get done with their day-to-day tasks. The other option will be for parents who want to entrust their kids regularly as they are off to work.
- Special Education Services
LearnALot will also cater to families and parents who have special needs children. This can include children who need help with physical activities or children, who, perhaps have a different way and speed of learning.
As Theo wants to offer a one-place-for-everything business, there will also be some learning activities for the kids to learn as they play. Parents will have the choice of opting their kids out of these activities. However, Theo will try to encourage parents to allow their children, a free environment so they can adjust better when they get into school later.
LearnALot is primarily a business for children with parents who are busy working for a living. So keeping their busy routines in mind, the business will also offer ‘pick and drop’ services to facilitate such parents.
Marketing Analysis of Preschool
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Even though opening a preschool business may look like an easy task, it can be very taxing if not planned properly. To start any business, even a preschool business, you need to thoroughly research the market and understand it.
The best way you can learn about your target market is to do market analysis as a part of your business plan for preschool center. The marketing will help you understand the past, present, and future conditions of the market, what the gaps are, and where you can fit in.
If you are thinking of running a preschool business, you will need to learn all about your target market. This will include both your customers and competitors. Learning these things will help you develop a preschool marketing plan targeting your customers. You will not only be able to attract customers in a better way but will also be able to find ways to stand out among others.
If you want to develop a preschool business plan sample and you don’t possess enough knowledge, you can follow this sample preschool business plan for LearnALot.
5.1 Market Trends
Daycare and Preschool services are booming services in the US. According to IBISWorld, daycare centers have a market share of around $54 Billion. And according to Bplans, 84% of startups in daycare services succeed enough to make a good profit within the first year. Therefore, opening a business in this domain is very rewarding.
5.2 Marketing Segmentation
The customers of LearnALot will belong to the following groups:
5.2.1 Working Parents
Our main customers will be working parents living in and around Florida. These parents usually have eight-hour jobs that keep them busy. Therefore, they are expected to utilize our services most often. We will offer them a place where they can leave their children without any worry. At us, they will have a space where their kids can play and learn new things and skills.
5.2.2 Single Parents
Our second target customer will be the single parents who need as much help as they can get. Single parents usually have to manage everything on their own. Therefore, a service of this sort will be of great help to them. By entrusting their kids to us, they will be able to do daily chores and relax for a while.
5.2.3 Concerned Parents
A lot of parents usually get concerned that their children are not learning as fast as they could. For these parents, our educational services will be the most attractive. We will offer learning sessions in several niches so that parents can choose what they want their kids to learn.
5.2.4 Families with Special Care Kids
Lastly, LearnALot will cater to those children as well who don’t learn at the same pace as other students. Parents can bring their children to get assessed and our preschool will try its best to cater to the children in the most helpful way.
5.3 Business Target
The target of LearnALot is:
- To become a safe and reliable place where parents can drop off their children regularly.
- To become the best preschool/ daycare center in Florida.
- To expand the range of services we offer.
- To earn a profit margin of $10k/month after the first two years to sustain the business.
5.4 Product Pricing
Our prices for specialized cleaning are a little higher than those of our competitors. However, our other offerings are available to our customers in a similar price range as that of our competitors.
To develop a preschool marketing plan template that will help you succeed, you will need to develop strategies that will work for your market. A good marketing plan is a part of every business plan. Therefore, you will need it for your daycare and preschool business plan as well. In this business plan for preschool pdf, we are providing the preschool business plan sample for LearnALot.
If you are also offering physical training and game sessions, you can also see the marketing strategy for karate center business plan .
6.1 Competitive Analysis
- We have versatile offers and services to cater to parents who want to drop off their kids for different periods.
- Our customers can directly contact us in case they need any special services.
- We are offering pick and drop service to facilitate the parents even more.
6.2 Sales Strategy
- We will advertise through local news channels, posters, and social media posts.
- We will offer discounted rates to the first 15 customers.
- We will offer different types of affordable packages to parents so that using a preschool doesn’t break their bank.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
A business plan preschool like any other business includes the strategy to hire the employees for your business. To get an idea of how many employees you may need, you may consult a business plan for language school sample . In this preschool business plan pdf we are providing the employee list made by Theo to run the preschool.
7.1 Company Staff
- 5 Trained Teachers
- 1 Sales Executive
7.2 Average Salary of Employees
When you look at preschool business plan examples, you will notice that all of them outline their finances in one way or another. Financial information is always a part of every preschool business plan sample pdf. Accurate financial planning enables you to fund your business, and earn revenue.
Due to the immense importance of financial planning in a business, it is advisable to not experiment with developing a financial plan. Financial planning is of utmost importance and it impacts the sustainability of a business in the long term. Keeping it in mind, you should hire a professional financial planning expert for the task. Various business frims would do the task for you even online.
Below, we are providing the financial analysis for LearnALot. You can follow this template to do financial analysis for your martial arts business plan as well.
8.1 Important Assumptions
8.2 break-even analysis.
8.3 Projected Profit and Loss
8.3.1 profit monthly.
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
8.5 Projected Balance Sheet
8.6 business ratios.
- Are preschoolers profitable?
Opening a preschool business can prove profitable if you do a financial analysis to make sure that the cash flows are managed well.
- How can I grow my preschool business?
You can grow your preschool business by reading preschool business plans for preschools that are running successfully.
- What are the steps to start a preschool?
The first step is to make starting up a preschool business plan and then deal with every aspect of your business including the finances, marketing, and services you will offer.
- How do you write a preschool proposal?
You can write a business plan for the preschool center by following the template provided above.
Download Preschool Business Plan Sample in pdf
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Preschool Business Plan Template [Updated 2023]
I. Executive Summary
This Section's Contents
Products served, customer focus, management team, success factors, financial highlights.
[Company Name], located at [insert location here] has been providing quality education to the community’s preschoolers since [year established], [Company Name] has had over 1,200 wonderful and amazing preschool graduates.
We understand that the early years of learning are the most crucial part, therefore in our school, we offer a low teacher to child ratio, where teachers can concentrate on their students well. We offer a fun and safe environment for learning and in our school, we not only value academic excellence but also the social, emotional, and psychological well-being of our students.
[Company Name] offers premium early education at an affordable tuition fee. We provide a fun learning experience for children to explore their true potential and a safe space where they can freely discover and express themselves.
[Organization Name] primarily serves children within a 5 mile radius of [location]. The demographics of these customers are as follows:
- 24,226 residents
- Average income of $44,200
- 61.9% married
- Young couples: 53%
- Median age: 35 years
[Company Name’s] principal is [Founder Name] who has been working as a teacher for more than 12 years. [Founder Name] has successfully led [School Name] for the past 5 years as its principal.
[Founder Name] is supported by a team which includes [Founder 2] and [Founder 3] that have experience teaching students, managing finances, and running businesses. Specifically, our team has solid experience in being effective teachers, connecting to different types of students and achieving key goals.
[Organization Name] is uniquely qualified to succeed due to the following reasons:
- [Location] does not have a lot of preschools that offer affordable, quality education for young children.
- Our teachers are passionate and skillful. They can easily adapt to any learning style a child may have.
- Low teacher to student ratio for better focus
- The management team has a track record of success achieving the goals of our organization and other organizations for which we have worked.
- Members of our community fully support and believe in our mission.
[Company Name] is currently seeking additional donations of $380,000 in order to fulfill our mission.Specifically, these funds will be used as follows:
- Salaries: $80,000
- School Materials (books, toys, desks, chairs, etc): $180,000
- Administrative Expenses: $120,000 to pay for lease costs, ongoing operational expenses, marketing.
Top line projections over the next five years are as follows:
Comments are closed.
Preschool Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
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How to Make a Business Plan (for Kids)
Last Updated: March 21, 2023 References Approved
This article was co-authored by Michael R. Lewis and by wikiHow staff writer, Amber Crain . Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of experience in business and finance, including as a Vice President for Blue Cross Blue Shield of Texas. He has a BBA in Industrial Management from the University of Texas at Austin. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article has 20 testimonials from our readers, earning it our reader-approved status. This article has been viewed 145,945 times.
There are plenty of kids out there running their own successful businesses.To get started, you’ll need a great idea for a business and a solid business plan. Business plans can get pretty complicated, but they don’t have to be. As long as your business plan includes a few crucial things, you’ll have all that you need to get started!
Developing Your Business Idea
- Are you currently busy with school or is it summertime? Think about when the work for your business will be done.  X Research source
- Consider business ideas that are seasonal. For example, if it’s near Christmas, consider ideas that cater to that, like a gift wrapping service or making gift baskets.
- Are you in the middle of a very hot summer? This might be a perfect time to launch a neighborhood lemonade stand.
- Examples of product-driven businesses: baking cookies, building birdhouses, making gift baskets, creating greeting cards, selling candy, making doggie treats.
- Examples of service-driven businesses: lawn care, car washing, computer repair, pet sitting, babysitting, cleaning houses, dog walking, and teaching computer skills to older people.  X Research source
- Are you an animal lover? Consider offering pet sitting services.
- Maybe you’re crafty and enjoy making handmade jewelry or gift baskets. These are great products to sell.  X Research source
- Make sure your business name is easy to pronounce, as well.
- Clever and unique business names work well, just remember that the name needs to relate to what your business entails.
- List any specific objectives and goals for your business, as well.
- Write out what you think makes your product/service unique.  X Research source
Planning Your Business
- If you have a sibling that wants to help out, that would be a good place to start.
- You will be splitting your profits, so you will need to decide how much and when your employees will be paid.
- You could also ask your parents if they’d consider donating some of your future allowance as seed money for your business.
- If you bring them a solid business plan, they will be more likely to help you.
- By adding up your ongoing expenses, you will have a pretty good idea of what it will cost to keep your business running.  X Research source
- Another example – if you’re making cookies to sell, you will need to total up how much the ingredients cost and how often you’ll need to buy them.
- Let’s say that when you add up the cost of the ingredients, it costs you $3.50 to make a dozen chocolate chip cookies. You will want to charge more than that for each dozen in order to make a profit.
- You should also factor in how much time it takes you to make your product/perform your service.  X Research source You can then work out prices based upon how much you want to make. You should also factor in time that you aren't being paid (such as advertising your business or walking to a customer's home).
- For example, if it takes you a half hour to make the chocolate chip cookies mentioned above and another half hour to sell them, you will need to charge an amount that represents the amount of time you spent preparing them. This additional time is your "wage" for preparing them.
- You can work out your hourly wage by dividing your pay for a project or product (minus your expenses) by the amount of time spent working.
- In this case, if you charged $9.50 for the dozen cookies, you would be making $6 for the hour that you spent making and selling them.
- Subtract your expenses from your revenue to get your profit amount.  X Research source
Marketing Your Business
- You should also consider your market area. Unless you have a car (or your parents' help), market area is relatively small. This may include only areas that you can safely walk or bike to.
- These customer types are called customer profiles. Once you have your customer profiles, you will have a better idea of how to market your business to them.
- Different customer profiles sometimes require entirely different marketing strategies.
- You can market most effectively once you know these specific details about your competitors.
- Offering lower prices or providing higher quality products/services are two ways you can compete with them.
- For example, if you start a lawn care business, you will be competing with established lawn care businesses. You can build a customer base by offering better service and encouraging customer recommendations.
- Remember to keep your customer profiles in mind when choosing your marketing strategies.
- For instance, if you’re starting a pet sitting business, you could post flyers at veterinary offices and pet stores, and also hand deliver flyers to people in your neighborhood with pets.
Putting Your Business Plan on Paper
- Write the business name in large letters, or use a large font, and make it bold. It’s the most important thing on the page.
- The description paragraph can be in a normal size or standard 12 point font.
- Owner/Management example: “Kelly’s Doggy Daycare is owned by Kelly Klein. She has several years of experience pet-sitting and truly loves working with and caring for dogs of all kinds.”
- Business History example: "Kelly noticed that most of her neighbors were dog owners who worked long hours every day. Occasionally, they took vacations and/or experienced family emergencies, which could take them away from their pets for days at a time."
- "With her love for dogs, Kelly knew she could provide a pet care service that her neighbors would benefit from, and that’s how Kelly’s Doggy Daycare was born."
- You don’t need to get incredibly detailed – summarize and highlight the most important information for each.
- Example for product/service: "Kelly’s Doggy Daycare will provide hands-on pet care for today’s busy pet owner. The business will offer day rates along with in-house extended stay pet sitting. Walking services are included at no charge with every appointment."
- "It’s her mission to put your mind at ease when you have to be away from your pets. Kelly will make sure your pets are loved and cared for in your absence."
- "An email summary of every pet sitting appointment will always be sent to you via email during your absence or upon your return."
- Example: “Kelly’s Doggy Daycare caters to today’s busy adults. These are business people who work long hours every day and/or travel regularly for work, family vacationers, and anyone who finds themselves in need of last minute pet care."
- "The business has one competitor, Sam’s Sitting Service, but Kelly offers lower pricing and in-house extended stay care."
- "She plans to post flyers about the new business in her neighborhood to promote it. She will also be going door-to-door to introduce herself and inform neighbors of her services.”
- Example: "Kelly will need very few supplies to launch the business – a bag of doggie treats, 1 dog leash for a small dog and 1 dog leash for a large dog."
- "Ongoing expenses will be the replenishment of doggie treats and occasionally dog toys and/or dog blankets. The rate is $5.00 for each hour of pet care provided. The rate for in-house extended care is $25 per day."
- "Customers will need to provide their own pet food or reimburse Kelly for any food she has to purchase during pet care. Profit for each hour is approximately $3.50 after expenses."
- "Profit for each day of extended care is approximately $18.50 after expenses."
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- ↑ http://bizkids.com/wp/wp-content/uploads/Kids-Business-Plan.pdf
- ↑ http://www.wisebread.com/create-a-business-plan-by-answering-4-simple-questions
- ↑ http://www.mikemichalowicz.com/the-37-greatest-business-ideas-for-young-entrepreneurs/
- ↑ http://www.teachingkidsbusiness.com/business-plan-example.htm
- ↑ http://content.moneyinstructor.com/664/kids-starting-business.html
About This Article
To make a business plan for kids, create a cover sheet with the business name in large, bold font and a 5-6 sentence description of the business. Have a logo? Include that, too! Start writing up the company’s management and history on the second page, talking about yourself in 1-2 sentences and how and why you came up with your business in another 2-3 sentences. Then craft 3-4 sentences, each, to describe your product or service, business goals, marketing strategy, and funding needs. To learn more from our Entrepreneur co-author, like how much to charge for your product or service, keep reading the article! Did this summary help you? Yes No
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