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After-School Program Business Plan

After-school programs are advantageous for both working parents and kids looking for extracurricular activities that match their interests. In fact, they are a fantastic approach for educators to increase their audience and generate more cash with additional activities.

Are you looking to start writing a business plan for your after-school program business? Creating a business plan is essential to starting, growing, and securing funding for your business. We have prepared an after-school program business plan template for you to help in start writing yours.

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Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write an After-School Program Business Plan?

Writing an after-school program business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, management team:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Home-based childcare:, child care center:, preschool child care:, school-age child care:.

• Company structure of your after-school program business whether it is LLC, partnership firm, or others.
• Location of your after-school program and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your after-school program business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your after-school program business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan.

4. Products And Services

The product and services section of an after-school program business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the services:

Give a thorough explanation of the after-school program services provided in this section. The particular activities that will be offered, such as:

• Help with homework,
• Extracurricular activities,
• Enrichment activities,
• Social & emotional support, and
• Other potential programs

Describe each service: For each service, provide a detailed description of what it entails, the time required, and the qualifications of the professionals who will provide the service.

Provide information on staff and facilities:

Give a succinct description of your staff’s credentials, mentioning both their training and pertinent work experience. Additionally, give details about the program’s facilities, along with any tools or materials that will be required.

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP):

Determine your pricing strategy:, marketing strategies:, sales strategies:, customer retention:.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Hiring plan:

Operational process:, curriculum:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your after-school program business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the after-school program business. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe the key personnel of your company and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your business should only include relevant and important information that supports the main content of your plan.

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

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

This after-school program business plan sample will provide an idea for writing a successful plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready business plan to impress your audience, then download our after-school program business plan pdf .

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Frequently asked questions, why do you need an after-school program business plan.

A business plan is an essential tool for anyone looking to start or run a successful after-school program. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your business.

How to get funding for your after-school program business?

There are several ways to get funding for your after-school program business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your after-school program business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your after-school program business plan and outline your vision as you have in your mind.

What is the easiest way to write your after-school program business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any after-school program business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Sample After School Program Business Plan

We welcome you to read this guide on how to write your after-school program business plan.

After-school programs have grown in popularity over the years. These schools not only keep kids engage in useful activity but teach vital skills to kids of all ages.

If you’re reading this article because you wish to start one, you’re at the right place.

AFTER-SCHOOL PROGRAM BUSINESS PLAN SAMPLE

Unlike the complex stuff you’ve probably heard about tutoring service business plans , we’ve simplified the process to help with easy comprehension.

We’re certain that as you read on, you’d find all the information you need to write a good plan for your after-school program business.

Incorporating Key Elements

The journey to writing an effective plan starts by connecting or including the constituent parts to form a whole. In other words, certain elements of your after-school program business plan must be included if you’re to come up with a great plan.

These key elements or sections include the executive summary, the company description, as well as the products & services sections. Others are the market analysis section, strategy & implementation, organization & management team, and the financial plan & projection sections.

All of these elements combined to make a great after-school program business plan. However, the contents of these sections are equally important. You’ll need to provide certain basic information for each of them.

Let’s take a look at what’s contained under each section of the plan.

i. Executive Summary

The name says it all!

The executive summary section of your after-school program business plan is a summary of your plan. It’s meant to provide brief, yet quality information about your business, the problem it solves, your target market as well as financial highlights.

This appears first in the plan. It’s positioned that way to help the reader get an idea of what the rest of the plan is about. Although this section is placed at the beginning of the plan, it should be written last.

This is important as it helps you include all the information contained in the other sections.

An executive summary should include certain basic components. These include your business name & location, services offered, mission & vision statements, and the objective or purposes of your plan.

Business Name & Location

Your after-school program should have a name. This is what gives it an identity. Under this section, you’re expected to include information on the name as well as where the program will be located.

You’ll need to be clear and concise here as you’re writing an executive summary. Finer details can be supplied in other sections of the plan.

Services Offered

An after-school program is service-based. As such, you’ll need to list the range of services being offered. This will include programs and curriculum as well as skills being imparted.

Do such services have any real impact on the development of kids? Include such in brief.

Mission & Vision Statements

Writing this section of your executive summary will include clearly stating your mission and vision. For your mission statement, should be brief and must explain your program’s goals and what it does for kids as well as the business.

Your after-school program’s vision statement should be able to clearly depict where you want your business to be at a certain point in the future. This can be termed your goals and aspiration for the after-school program.

Objective or Purpose of the Plan

Every business plan must have a purpose and so should yours. Clearly state such plan(s) for the business. In some cases, such a plan may be to either secure investment or to achieve set strategies.

ii. Company Description

This is the next section of the plan that must also be clearly written. Here, you basically need to provide information on who you are, you’re your after-school program operates and the goals you intend to achieve.

The key information here includes your legal structure, history, and if there are demands for after-school programs in your community. What are your services like?

Also, provide a summary of the growth of your program with special reference to the market and financial details.

iii. Products & Services

After-school programs are basically service-based. The focus should be on how kids will benefit from the program.

You’ll need to explain your program’s market role. Are you researching better ways to ensure service excellence? What are they?

iv. Market Analysis

Writing the market analysis section requires thorough research. Here, you’re expected to show an appreciable level of industry experience. You may want to include all findings in an appendix.

Contents of the market analysis section should include a targeted customer segment sketch.

Such a sketch should include details about size and demographics. This shouldn’t be much work as your after-school program is meant for kids and adolescents. Also include industry description as well as outlook. Marketing data on past, present, and projected operations should be added.

What other after-school programs are there in your vicinity? These are your competitors. Evaluate their strengths and weaknesses.

v. Strategy & Implementation

One of the key things you’ll need for a successful takeoff of your program is an implementation strategy. A lot of explanation is required on how you intend to launch and market your after-school program.

Also, you’ll need to provide details on pricing, costs, and promotions.

Will your after-school program need the services of employees now or in the future? Include such information here.

vi. Organization & Management Team

If you’re the sole owner of the after-school program, include basic information such as your name, extent of involvement, biography, skills, and background. The same goes for multiple owners.

Provide a profile of your management team.

Such profiles will include information on their names, responsibilities, and experience. Any board members or advisors should be added as well.

vii. Financial Plan & Projections

This section will require the input of a financial expert.

Here, you’ll need to include historical financial data. This is for after-school programs that have been in existence for some time. Details of the financial data include balance sheets, cash flow statements covering a 5 year period, and income statements.

You also need to add projected financial data. This should be realistic or achievable. It includes details such as forecasted income statements, balance sheets, capital expenditure, and cash flow statements.

This is the format your after-school program business plan should take. We’ve added key sections that are indispensable to coming up with a great plan.

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What to Include in Your After-School Program Business Plan

To start a successful afterschool program, you first need an effective business strategy, which starts with a good business plan

A high-quality afterschool program business plan is essential. It provides a comprehensive overview of your program by running it through multiple types of analyses, approaches, and perspectives.

After all, just like any other business, an after-school program has a leadership structure, offers a service to paying customers, has competition to outperform, and a budget to adhere to.

A business plan should consider how all these factors come together to form a cohesive and effective structure.

In this article, we go over the elements comprising a typical business plan and the most optimal way to approach writing each of them.

Elements of an After-School Program Business Plan

So, which elements should you include in your after-school business plan?

Of course, there is no single definitive answer. Business plans are used by private companies and organizations alike, regardless of size, and they can be tailored to internal or external use.

However, there are still many common components most business plans will include.

These elements form the basic business strategy stress test, which will help you polish your after-school program ideas .

Executive Summary

To start, your after-school program business plan must include an executive summary.

An executive summary is to a business plan what the business plan is to the business itself—a brief and clear synopsis of the most relevant information, written to entice the reader to invest.

The main purpose of an executive summary is to grab the reader’s attention. It should be clear and concise and serve as a highlight reel of the strongest points from the remaining sections of a business plan.

It usually includes the following:

Illustration: Regpack

Because you need to flesh your ideas out before summing them up, the executive summary should be the last section you write.

However, it is the first one people will read.

Therefore, you need to make a strong first impression.

Remember, investors often have dozens of business plans to pick from. If they are not hooked by the end of the executive summary, they can easily decide to move on to the next one.

In short, the starting page of your after-school program business plan should contain an executive summary, a short and to-the-point representation of the business plan and its main ideas.

Business Description

The next element to include in your after-school program business plan is the business description.

This section should briefly convey to the reader what the program is about and what its purpose is.

For the first part, provide basic information such as the program’s name, business model, industry, key personnel, history, and planned opening date.

Next, write your program’s short-term and long-term goals.

Whether you strive for 60 sign-ups in a month or two student groups by the end of the year, it is important to choose goals that fit the acronym SMART—smart, measurable, attainable, realistic, and time-bound.

Your objectives should align with your program’s mission, vision, and value statements. These make up the essence of your program and the driving force behind it.

The mission statement has to sum up the purpose of your after-school program in one to two sentences.

Here’s a good example from Urban Youth Harp Ensemble:

Source: Urban Youth Harp Ensemble

A business description should also include a vision statement. This is an aspirational description of the program’s desired academic enrichment in society.

In the case above, it might be: “To raise a musically literate generation.”

All in all, a business plan should include a description of what your after-school program does, why it exists, and its plans for academic achievement.

Description of Services

After defining what your after-school program is generally about, it is important to provide a detailed description of its services.

Begin by defining the educational focus of the program. Are you planning to teach one subject in depth, provide various extracurricular activities, offer homework assistance, or present professional development skills?

Or do you envision a less-focused, more entertaining environment to keep children busy while their parents work?

Elaborate with more specific details about the service.

For example, the students’ age, the location, and the size, length, and frequency of the classes. Include anything you think would be relevant to a person interested in the program.

Take a look at a service section from the Trackers organization:

Source: Trackers After School Basecamp

Ultimately, a good service description is necessary for an after-school program business plan because it provides a clear plan of the program’s real-world application process.

Organizational Structure

The next section to include in your after-school program business plan is the organizational structure.

List out all the people involved or required to run the program. Begin with yourself.

Write your name and position in the program, then provide a short biography, listing relevant skills and a background check.

Do the same for the other team members . In case you don’t have any partners or employees yet, name and describe the positions you plan to fill with future candidates. Also, add your proposed salaries for each position and include them in your financial projections.

When applicable, highlight your or the staff’s experience compatible with your program, like in this example:

Source: Workshop Houston

Workshop Huston offers creative, artistic programs for their students, which is reflected here—the CEO is a musician, and the program director is a multimedia artist.

The involvement of experts gives the program stronger legs to stand on, making it more possible for an interested party to invest or enroll .

In summary, the organizational structure is an overview of the job positions that make up the inner workings of your after-school program, providing insight into the people who fill those positions and their skills.

Operations Plan

The operations plan is the logistical strategy for your after-school program, making it a key element to include in your business plan.

In it, describe in practical terms what your program’s day-to-day operations look like.

Specify what it takes to run the program in terms of finances and resources, and your plan on securing them.

In other words, explain your idea of how to manage the program for it to stay operational and achieve set goals.

The type of questions the operations plan needs to cover include:

• What is the weekly schedule?
• How many groups of students will there be?
• Which teacher will be running which group?
• What will be the staff-to-child ratio?
• Does the program require props or materials, and where will you get them?
• What does the registration process look like for students and parents?
• Will the program be for high school or middle school students?

Also, don’t forget to research city and state legal requirements for working with children. You can usually find it on your state’s government website.

Ensuring you have a compliant system in place will protect the children from potentially dangerous conditions and help you avoid fines or even closure.

In conclusion, an operations plan should be included in your business plan to explain how you intend to fulfill the various requirements of running your after-school program .

Market Analysis

This section of the business plan should provide an overview of the market conditions for your after-school program.

To begin, do in-depth research into the state of the industry and the competition.

Look into the number of programs on a local and national level and extrapolate any noticeable trends regarding growth in recent years. Are after-school programs on the rise or decline?

Find out how your city or state compares to the others in the number of programs to assess the need for one in your area.

If you’re unsure where to find the answers, the Afterschool Alliance offers a lot of useful resources to help you start:

Source: The Afterschool Alliance

Find after-school programs in the vicinity and do a so-called SWOT (strengths, weaknesses, opportunities and threats) analysis. Do the same program evaluation for your own, and then compare the results.

To have a chance of succeeding, you have to stand out from your competitors by utilizing your strengths and compensating for your weaknesses.

Once you define the competition’s weak spots, you can carve out a place in the market by offering a better value for money, providing unique enrichment activities, or catering to a specific niche audience.

Overall, the market analysis should illustrate how your program plans to succeed in the context of direct competition and the industry as a whole.

Marketing Strategy

After an exhaustive analysis of the market conditions, your business plan should map out the marketing strategy for the after-school program.

Research different marketing channels to decide which one best fits your needs.

You can pass out flyers, take out ads in the paper, use social media advertising, or use legacy media to market your program. You should come to a decision based on your budget and the target audience.

There are many free and paid solutions that can help you efficiently spread the word, each with its upsides and downsides.

For example, a radio commercial on the local station during rush hour is expensive, but it could also reach many working parents in the area.

Social media is cheap and allows you to market to target audiences, but, depending on where you live, it’s possible that relatively few working adults use it.

All in all, your business plan needs a marketing strategy that can reach the most amount of people by using the limited resources available to the program.

Pricing Strategy

The pricing strategy for your after-school program is vital for its financial stability and eventual success in the real world.

The pricing strategy is firstly informed by market analysis.

For example, if comparable programs in your vicinity charge an average 100$ per week, you should either price gauge them or match their price, but stay in a 100$ ballpark.

If necessary, seek the advice of a financial expert who can carefully go over your projected costs and earnings and set a balanced price.

Next, you have to figure out how you will manage payments. Are you going to charge on a daily, weekly, or monthly basis?

When deciding on payment management, consider using a registration service like Regpack for your program.

Regpack offers an automated billing feature that is easy to set up and simple to use.

Source: Regpack

This is a practical solution that saves you time and energy in collecting payments.

In conclusion, the pricing strategy of an after-school program should outline how much you intend to charge for the service and your method of managing payments.

Financial Plan

In the last section of the business plan, you need to provide all the financial information regarding your after-school program.

Since you are just starting out , this data will be largely theoretical. However, mention the numbers you do have, such as your starting budget proposal, expenses, and any additional investments you have so far.

For the rest, use the financial estimations from previous sections to come up with projected earnings and expenses.

To approximate expenses, add up all the costs of running the program. These include the salaries, the rent for the location, the cost of marketing, and the price of materials you will need.

A simple way to calculate projected earnings is by multiplying the number of students by the monthly price of admission per student.

By juxtaposing earnings with expenses, you can make a better case for the sustainability or growth of your program.

To sum up, a financial plan should contain all the costs and expenses for operating an after-school program, and make reasonable goals and projections based on the numbers.

Your after-school program business plan provides detailed insight into your program services, operational strategies, business goals, funding sources, and finances.

It should include every piece of information that is pertinent to the program’s success in the market and the enrichment opportunities for the students.

The research you do will help you sharpen up your business strategy and convince others of your after-school program’s potential.

Therefore, whether you are looking for investors or just hammering out your plans, write a business plan that follows the route outlined in the article, and by the time you’re finished writing, you will have a stronger after-school program for your school district.

Asaf, Founder and CEO of Regpack, has extensive experience as an entrepreneur and investor. Asaf has built 3 successful companies to date, all with an exit plan or that have stayed in profitability and are still functional. Asaf specializes in product development for the web, team building and in bringing a company from concept to an actualized unit that is profitable.

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• October 25, 2022

6 Steps to Start an After School Program

After school programs provide many benefits for children and their families. While they enable parents to maintain regular workdays, they provide kids with structure and enriching activities once the school day is done. A quality program provides a safe, nurturing environment where school-age children can participate in activities, receive guidance with homework, and engage in safe social interactions.

For these reasons and more, starting a successful after school program is a profitable venture for many childcare professionals and daycare directors. However, starting one is no easy feat. It requires a lot of thought and planning to build a solid foundation. If starting a successful after school program is a dream of yours, follow the steps below to learn more about how to achieve it. 

Secure a Space to Host Your Program

One of the first steps in considering how to start an after school program is understanding how to secure a space to host it. The top two factors to keep in mind when choosing the ideal location are travel and convenience. 

The best locations are ones that are conveniently accessible to parents and within close proximity to the school where your prospective students are enrolled. Consider scouting affordable spaces like local churches, libraries, schools, and recreation centers. 

Conduct Research

Starting an after school program is always going to seem essential, but before you proceed with plans to start one, you should conduct research to determine whether it’s a truly feasible venture. Many factors can impact the success of your program as well as its profitability. As you conduct research, consider the following questions:

• What do parents and students desire to see in an after school program in your area?
• How high is the demand for an after school program in your area?
• How much commercial space is available for an after school program in your area?
• Are there enough qualified childcare professionals in your area to staff your after school program?
• Are there local businesses in your area that you can collaborate with to offer a range of services?
• How large is the school district in your area?
• Is it feasible to offer unique services like bilingual tutors or computer programming classes in your after school program?

Take your research a step further by conducting a needs assessment through interviews, surveys, and focus groups to understand what types of programs are needed in the community. These assessments can also show you where to leverage existing resources and how to identify and establish additional systems and supports.  

If, after conducting the relevant research, you find that your after school program can fulfill a significant demand in your area and has a unique edge over any local competition, you can feel confident that you’ll be able to build a solid foundation.  

Create a Business Plan and Set Goals

Learning how to create an after school program also requires you to understand how to create a business plan and set goals. During this phase, you’ll develop policies, curriculums, values, objectives, and more to help solidify your program’s foundation and set it up for success. 

Before you create your business plan and start setting goals, it’s important to research the market. By analyzing the competing after school programs in the area and assessing their curriculums, you can get a better idea of the community’s needs. Local parents can be a valuable resource for information about what’s missing in the local market. 

Once you’ve gathered all the information you need to make your after school program a success, you can start planning its essential components and create your business plan or proposal. This is a necessary first step for sharing your ideas with public and private investors. Consider the following details when creating your business plan and setting goals:

• Program design, including location, staffing, administration, transportation
• Core values 
• Mission statement
• Policies and procedures 
• Legalities, including insurance, licensing, reporting

Make a Budget

Figuring out the startup costs for any business is a challenge. Chances are that you’ll need some startup funding to get your after school program up and running. With the right investors and an accurate budget that’s strictly maintained, your program is sure to enjoy long-term success. While adding an after school program to an existing daycare won’t be as expensive as starting one from scratch, anyone planning to start an after school program will need to create a detailed budget. When creating yours, consider the following startup and operational costs:

• Location and whether you’re renting or purchasing
• Professional third-party fees, including construction, lawyers, printing
• Licensing and permit fees
• Training costs 
• Materials and equipment costs
• Hiring costs and salaries
• Maintenance
• Third-party services and vendors 

It’s helpful to look into local, state, and federal funding as well as private donations designed to support after school programs . 

Hire Experienced Employees

One of the most important steps in understanding how to open an after school program is learning how to hire experienced employees. A high-quality program doesn’t stop at hiring experienced personnel but also has systems in place to provide ongoing training and consistent communication for staff after they’re hired. Continued education and training help ensure your staff feels empowered and encouraged to be the best. Consider offering ongoing training and education benefits, such as bonuses for staff who gain advanced degrees or complete additional training programs. 

Hiring a qualified and passionate team is essential for instilling confidence in parents that their children are receiving an outstanding level of care. In your search for the best educators, consider targeting staff members and teachers at local elementary schools who may be looking for part-time after-school positions. 

Your program and the people you hire to staff it must be properly licensed and satisfy state regulations. Be sure to research your state’s specific requirements and keep up with new laws, policies, and regulations to ensure that your program provides the highest level of care. 

Maintain a Positive Environment

After school programs should provide a secure environment for kids, which is why it’s crucial to enforce safety policies and security measures while setting students up for success. Consider security solutions like electronic check-in with fingerprint pads, secure door controllers, and keyless entry to control unauthorized access. 

Provide all staff members with a detailed copy of your program’s policies and procedures. Ensuring that all staff members are aware of the policies and understand the procedures is critical to maintaining your program’s security and success. It’s a good idea to hold regular meetings to ensure everyone is updated and on the same page.   

While it’s easy for founders of after school programs to feel overwhelmed by all the duties and essential tasks that come with running one, starting a program doesn’t need to be overwhelming. Follow the tips above to start a successful after school program. 

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How to Start & Run a Successful Afterschool Program

As the American workforce continues to grow, the demand for afterschool programs will too. Understanding the best practices of running an afterschool program is essential, whether you are a professional looking to start your own afterschool program or a seasoned expert with an established program. This guide will answer the question of how to run a successful afterschool program, including everything from founding to daily operations. Let's dive in!

Starting an Afterschool Program

Starting an afterschool program is the dream of many young child care professionals. It can also be a profitable venture for a daycare director. However, it's a move that requires a lot of thought and planning . Having a solid foundation will enable you to make an informed decision on the matter.

1. Conducting Research

The first stage of starting an afterschool program is determining whether it's a feasible venture. Child care is indeed an essential service, but that doesn't mean it will always be profitable. Many other factors will influence the success of your afterschool program. Here's everything to research before starting an afterschool program.

• Is there a demand for an afterschool program in the area?
• What commercial space is available to house an afterschool program?
• How will you staff your afterschool program? (i.e., are there enough child care professionals in the area?)
• Can you work with local businesses to offer collaborative services?
• How large is the school district?
• Can you offer something unique in your afterschool program? (Ie. Bilingual homework tutors, computer programming classes, etc.)

Ideally, your afterschool program will fulfill a significant childcare demand in the area and offer a unique edge over current competition. If you fulfill all these requirements, you'll have a solid foundation to launch from.

2. Planning Your Afterschool Program

Once you are confident in your afterschool program's chances of success, you can move forward with the project. Now is the time to begin planning the key components of your program. This can also serve as a starter for your business plan or proposal that you may share with private and public investors. Here are some details to attend to during this stage.

• Core values, mission or objective statement.
• Program design, including staffing, location, administration, transportation and more.
• Curriculum.
• Policies and procedures.
• Legalities (licensing, insurance, reporting and more).

3. Budgeting

Handling the startup costs of any business is challenging. With a strict and accurate budget, you can ensure that your afterschool program enjoys continued success in the long-term. If you already have a daycare, adding an afterschool program won't be as expensive as someone starting from scratch. However, you'll need to create a budget, as well.

To ensure that your budget is accurate, you'll need to research the startup costs related to your business, many of which will vary by location. Here are some startup costs to consider:

• Location (purchase or rent).
• Third-party professional fees (lawyers, construction, printing, etc.).
• Training costs.
• Licensing and permits fees.
• Equipment costs.

Don't forget to find an answer to the question, "How much does it cost to run an afterschool program." Don't just focus on startup costs. The daily related operating costs shouldn't be overlooked. Here' are some operating costs to budget for:

• Maintenance.
• Transportation.
• Third-party vendors and services.

Run a Successful Afterschool Program

Starting a successful afterschool program is hard, but managing one is an even more challenging task. Fortunately, there are a few very simple tips that will ensure your afterschool program's success.

Establish Strong Policies

These guiding principles and protocols are the foundation of any successful afterschool program. Being proactive when it comes to addressing the potential situations that arise when running an afterschool program can help you avoid costly missteps in the future.

Be sure that all staff is provided with a copy of the afterschool program's policies and procedures. It’s essential all staff are aware of these policies, so be sure to hold regular meetings to ensure everyone is on the same page.

Provide Ongoing Training

Child care best practices are consistently evolving. You and your staff need to keep up with new trends and supporting research to ensure you provide the best care.

Don't grow stagnant and fall behind the competition. You'll need to ensure that staff feels empowered and encouraged to continue their training and education. Not only does this provide a competitive edge for your afterschool program, but it means you'll be employing experts in the field. Consider offering benefits, such as bonuses for staff who complete training programs or gain advanced child care degrees.

Prioritize Communication

Communication is the key to success for any collaborative project, and nothing requires a more collaborative effort than providing child care. An afterschool program works in collaboration with a child's school staff, family, coaches and more to provide the best care possible. Keeping the lines of communication open between all parties can ensure the child benefits from consistent care.

Your staffing can help you achieve effective communication. Hiring an experienced front office manager and secretary can ensure all communication is promptly addressed.

Choosing the Right Child Care Management Software

As the founder of an afterschool program, it's easy to become overwhelmed by all the essential tasks and duties that come with managing a program. That's why an efficient and powerful child care management system is vital to your afterschool program's success.

The right child care management software can support your business's success by streamlining all the administrative tasks of an afterschool program.

Vanco's Smartcare software is one of the leading child care management software systems. Everything from scheduling staff to managing payments from parents is easy with the Vanco's Smartcare .

Explore the advantages of Vanco's Smartcare Platform. Request a demo today !

Discover the Secrets for Simpler Afterschool Program Management!

Download our free eBook with expert tips that will not only help you improve your afterschool program, but show you how to simplify its management, so you and your team can enjoy a much needed breather. 

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How To Start An Afterschool or Extended Care Program

How To Start An Afterschool or Extended Care Program:

A step-by-step guide.

There is a need for afterschool and extended care activities in your community, and you have just the solution. Perhaps you would like to tutor students in academics, offer foreign language, art, music, or dance classes. In addition, sports programs serve as a healthy outlet for excess energy.

How to start an afterschool program necessitates step-by-step planning, and we want to help you get started. Read on.

Before Starting An Afterschool or Extended Care Program

When starting an afterschool program, keep in mind that it is a business, and success depends on taking the right steps. Even if you operate as a non-profit, the rules of business apply. You have chosen the service you want to provide now you need a plan.

1. Define Your Goals

What is your vision for this afterschool or extended care program?

What professional achievements are you looking forward to accomplishing?

What benefits do you hope to bring to the children and community with your program?

What is your financial goal?

Define your answers to these questions in writing. It would help if you had a clear visualization of your goals to create a strategy that leads to achievement.

During your program, you will want to revisit these goals periodically to make sure you are still on track to achieve them.

2. Make A Written Business Plan

No matter how simple your afterschool or extended care program seems, you still need to put it in writing and answer the critical questions. Do your research and be sure your answers are accurate. Don't let your enthusiasm overwhelm the financial facts.

• How big is the market for your afterschool program?
• How much up-front funding will you need?
• Where will those funds come from?
• How many participants can you accept per class session?
• What will you charge per student to cover operating expenses and still show a profit?
• Is there likely enough demand for your services at the rate you will need to charge?
• Will you be able to pay additional employees if needed?
• Can you afford adequate liability insurance?

Business Plan Forms are available online to guide you through the process and answer the right questions. Then, if the plan is valid, you can turn your enthusiasm loose and move forward.

3. Choose The Location For Your Afterschool or Extended Care Program.

You can make plans and preparations for starting an afterschool or extended care program from your home office. However, the location you choose to conduct your classes should be safe, easily accessible to all, and priced within your budget.

The location you choose may need to meet state and municipal child health and safety requirements. The rules vary by state and community, so check your local requirements to ensure the location you select is compliant.

Schools, community centers, and park districts are popular choices for afterschool programs. These facilities are already state and municipally approved. In addition, such venues are in a position to help you promote your program to your target clientele.

You want to lease the space you need for the time you use it. Existing facilities like schools and community centers make this possible. They also help keep your lease costs down compared to leasing full-time private space like a storefront or commercial business space.

You can operate your afterschool program from your private residence if it meets state and local regulations. However, remember that you will likely need to significantly increase your homeowners' liability insurance policy.

4. What Will You Name Your Afterschool or Extended Care Program?

We recommend you choose a name that flows and is easily remembered. Keep the name short but descriptive of your program. Do a Google search of the name and if someone already has registered a business with that name, choose another, avoid conflicts, and cease and dissent letters.

You will want the domain name as well for your website. Again, Go-Daddy can help you sort through and select what is available.

One way to keep your name selection original and straightforward is to incorporate your own legal name or your community's name.

Keep your options open for future expansion and change. For example, if you are teaching hip-hop, refer to your program as 'Dance,' leaving the door open for other dance styles. You might teach basketball skills but refer to your program as 'Sports Skills.' I'm sure you get the idea.

5. Register Your After School or Extended Care Program As A Business

Your city may or may not require you to register your afterschool or extended care program as a business and secure a license to operate. Check with administers to know for sure.

If you receive payment for goods and services, the state and federal governments are interested. Therefore, you need a federal and state identification number. You can use your social security number, but we like to keep business and personal separate.

Besides, it's quick and easy to go to IRS EIN to register for the federal ID number, and your state will have a comparable website. Most afterschool program start-ups are sole proprietorships.

In addition, your state may require licensing for your afterschool program. Start with youth.gov. That will help determine the specific guidelines for your state.

6. Now You Need A Business Bank Account

All of your afterschool and extended care program operations will be carried out under your business name and your registered EIN.

Your business bank account will reflect that information. In addition, all business transactions will use your unique identifiers.

7. Will You Need Additional Employees And Volunteers?

Whether you hire employees or accept volunteers, a clean background check is required to work with children. For the safety of the children and the peace of mind for parents, let your potential staff know that they must be willing to submit to an extensive background check and make sure yours is up to date.

Safety Zone is a helpful article published by AmTrust Financial that is worth reading. The report covers the reasons for background checks for children's programs and an extension that you may want to include.

Some afterschool programs may be exempt by your state from some background check elements. However, for the children's safety in your program and your reputation, consider your responsibility and your liability carefully when hiring staff.

8. Promote Your Afterschool and Extended Care Program

Advertising and promotion are critical as you learn how to start an afterschool and extended care program.  Program success depends on getting the word out and filling the class spaces.

Afterschool Alliance offers many helpful tips on their website about starting a successful afterschool program, including promotion ideas.

Make up some take-home flyers promoting your afterschool program. Ask the local schools to send the brochures home with each student. Then, post the flyers in other places like churches, park districts, and community bulletin boards.

Create or hire a professional to create an attention-getting and fun-looking website. Promote your website on social media like Facebook. Digital ads on your local community websites are often cost-effective. Direct contact with your sphere of influence is constructive, so always have a few flyers handy.

9. How Will You Organize and Manage Your Afterschool or Extended Care Program?

You could hire an office manager to handle class registrations, collect payments, refund cancellations and manage the bookkeeping and payroll. Parents will have questions you will need to take time to answer. You might find that student follow-up evaluations are beneficial as well.

For an afterschool program, the time required would be minimal. If you have the skills, you might want to do that work yourself. If not, this is not the time to self-teach yourself. A successful afterschool or extended care program needs to operate smoothly and efficiently without confusion.

Another option for organized management is a software program like Curacubby that manages your tasks digitally using your computer or smartphone. For example, the program can handle registrations and payments and produce multiple reports and evaluations.

To manage the financial process, Curacubby integrates with QuickBooks. Now you can track your income and expenses, create financial reports, manage payroll, calculate your profits and pay your taxes.

In Conclusion:

It may seem that all these steps to start an afterschool or extended care program complicate your simple idea of teaching an actual class. In actuality, the steps are easily accomplished and only need doing once. You can achieve the tasks in a week.

The results of afterschool programs are gratifying for you, your students, and your community. Read through the list of benefits at Youth.gov. and be inspired.  

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Child Care Business Plan Template

Written by Dave Lavinsky

  Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their child care centers. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a child care business plan template step-by-step so you can create your plan today.

Download our Ultimate Child Care Business Plan Template here >

What is a Childcare Business Plan?

A business plan provides a snapshot of your child care business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan as a Childcare Provider

If you’re looking to start a childcare business or grow your existing one you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your child care in order to improve your chances of success. Your childcare business plan is a living document that should be updated annually as your business grows and changes.  

Source of Funding for Child Care Businesses

With regards to funding, the main sources of funding for a child care business are bank loans and angel investors. With regards 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 confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a child care is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.  

Finish Your Business Plan Today!

How to write a business plan for a childcare business.

A childcare business plan should include 10 sections as follows:

Executive Summary

• Company Overview

Industry Analysis

Customer analysis, competitive analysis, marketing plan, operations plan, management team, financial 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 type of child care facility you are operating and the status; for example, are you a startup, do you have a child care that you would like to grow, or are you operating a chain of child care businesses.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the childcare industry. Discuss the type of child care you are operating. Provide key details regarding your direct competition. Give an overview of your target audience. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will describe your business concept for a child care business that you are currently operating or plan to open.

For example, you might operate one of the following types:

In addition to a business description, the Company Analysis section of your business plan needs to provide background on the business. Include answers to question such as:

• When and why did you start the business?
• What is your mission statement?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new program offerings, etc.
• Your legal structure. Are you incorporated as an S-Corp? A Limited Liability Company? A sole proprietor? Explain your business structure here.

In your industry analysis, you need to provide an overview of the child care business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the child care industry educates you. It helps you understand the local market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards child care that includes transportation, it would be helpful to ensure your plan calls for such a service.

The third reason for market research 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:

• How big is the child care business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the target market?
• What trends are affecting the child care 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 market for your child care. You can extrapolate such as 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 must detail the target customers you serve and/or expect to serve.

The following are examples of customer segments: working parents, young families, baby boomers caring for grandchildren, etc.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most child care businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your potential customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.  

Finish Your Childcare Business Plan in 1 Day!

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With Growthink’s Ultimate Child Care Business Plan Template you can finish your plan in just 8 hours or less!

Your competitive analysis should identify the direct and indirect competitors your business faces and then focus on the latter.

Direct competitors are other child care businesses.

Indirect competitors are other childcare options that customers have that aren’t direct competitors. This includes keeping children at home and/or after school programs among others.

With regards to direct competition, you want to detail the other child care businesses with which you compete. Most likely, your direct competitors will be child care centers located within the same residential neighborhood or very close to your local area.

For each such competitor, provide an overview of their businesses 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 customers do they serve?
• What child care services do they offer?
• What times are they open?
• 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.

The final part of your competitive analysis section is to document your unique value proposition. For example:

• Will you provide superior child care services?
• Will you provide child care services that your competitors don’t offer?
• 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 child care business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of child care that you documented in your Company Analysis. Then, detail the specific services you will be offering. For example, will you over technology or exercise classes to the children?

Price : Document the competitive pricing strategies you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the menu items you offer and their prices.

Place : Place refers to the location of your child care. Document your location and mention how the location will impact your success. For example, is your child care located next to a heavily populated office building, or gym, etc. Discuss how your location might provide a steady stream of customers.

Promotions : the final part of your child care marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some marketing efforts you might consider:

• Social media marketing
• Reaching out to local bloggers (particularly “mommy” bloggers) and websites
• Local radio advertising
• Banner ads at local venues

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 child care such as discussions with prospective new customers, procuring supplies, cleaning and sanitizing the facility, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th child, or when you hope to reach $X in sales. It could also be when you expect to hire your 4th employee or launch a new location.

To demonstrate your child care’s ability to succeed as a business, 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 the child care business. 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 like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in childcare businesses and/or successfully running retail and small businesses.

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.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your ongoing expenses to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 10 children per day or 50? 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 : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your childcare center, that 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 bank writes you a check for $100.000, 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 forecast will help determine how much money you need to start or grow your business, and make sure 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. For example, let’s say a company approached you with a massive $100,000 childcare contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your financial projections be sure to include several of the key start-up expenses needed to open a childcare center:

• Center build-out including design fees, construction, etc.
• Cost of fixtures like tables, chairs, couches, etc.
• Cost of equipment used like computers and televisions
• Staffing costs for support staff members
• Business insurance
• Taxes and permits
• Legal expenses

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 childcare center design blueprint or location lease.

Free Business Plan Template for Childcare Providers

You can download our child care business plan PDF .

Childcare Business Plan Summary

Putting together a business plan for your childcare facility will improve your company’s chances of success. The process of developing your plan will help you better understand your target market, your competition, and your customers. You will also gain a marketing plan to better attract families, a business operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Growthink’s Ultimate Child Care Business Plan Template allows you to quickly and easily complete your Child Care Business Plan.

Additional Resources For Starting a Childcare Center

• Opening & Running a Child Care Center
• Marketing Your Child Care Program
• Childcare Licensing and Regulations

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 our professional business plan writers can create your business plan for you.

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How to Start an Afterschool Program

Last Updated: September 20, 2023 References

This article was co-authored by wikiHow Staff . Our trained team of editors and researchers validate articles for accuracy and comprehensiveness. wikiHow's Content Management Team carefully monitors the work from our editorial staff to ensure that each article is backed by trusted research and meets our high quality standards. There are 12 references cited in this article, which can be found at the bottom of the page. This article has been viewed 80,735 times. Learn more...

Afterschool programs can help meet your community’s needs. [1] X Research source Some are academically-focused on building skills like reading, math, and language. Others may highlight outdoor play, art, sports, or music. To set up an afterschool program, consider where you will run it, what staff you’ll need, and where you’ll find funding for supplies and food. Any program that cares for young children may also have to comply with national and local government guidelines.

Researching and Planning

• If you’re a teacher, consider whether your students could benefit from an extended-day program.
• If you’re a parent or community leader, think about a childcare solution close to home where the kids in your neighborhood can safely spend a few hours.
• If you’re a student yourself, consider proposing a program that provides a unique opportunity for yourself and your peers.

• Involve the people who will use the program from the beginning so you can build it to meet their needs.

• For example, some afterschool programs simply provide an environment that is safe and comfortable, where kids can play and hang out with adult supervision while their parents work.
• Other programs set educational goals to improve reading skills or math scores for students who are struggling academically.

• If you’re setting up a program at a school that already has other afterschool programs in place, model your organization around these.
• Ask for volunteers from the community to help you meet your staffing needs.

• It is possible to run a program outdoors, but you will also need to make sure students have access to restrooms, shade, and adequate protection from weather extremes (like heat, cold, rain, etc.)
• Try to choose a space that is accessible and inclusive for students regardless of their ability.

• In other countries with more centralized educational programming, check your government’s website for a section on childcare and education. For example, in the UK, visit https://www.gov.uk/after-school-holiday-club .
• Reach out to the contacts listed for your state or local agencies by email and phone to discuss the specific requirements for your program.

Funding Your Program

• When setting your tuition cost, consider the needs of the community your program serves. If the fees are too high, you may not be able to reach to the population you want to help. [8] X Research source

• For example, if you need funds to purchase arts and crafts supplies, you can look into the Arts Learning Program of the National Endowment for the Arts. [10] X Research source
• There are also numerous Federal and state funding programs in the U.S. that specifically fund programming in Science, Technology, Engineering, and Mathematics. [11] X Research source

• Material donations like crafts and food from local businesses can help reduce your financial burden.
• Community funding agencies are often helpful in providing much-needed money for overhead costs like rent and maintenance.

Implementing the Program

• Set-up stations for students like an arts and crafts station, a building station, a games station, and a reading station. This allows students to choose between a variety of different options within an organized structure. [15] X Research source

• Ask parents and students about any food allergies your students may have before offering snacks.
• Fruits, like apples, whole grains crackers, and protein, like cheese, nuts, or hummus, are great options.
• Avoid foods that are high in sugar as these cause an initial spike in energy levels, followed by a steep decline.

• By allowing them to participate in this way, you’ll help create a stronger sense of community and belonging in your students

• For example, one theme you could explore might be “spring.” Your arts and crafts activities could revolve around making flower and gardening-themed projects. You might offer building activities that include making birdhouses or terrariums. You can learn songs, games, and dances related to the seasonal change, as well.

Expert Q&A

You might also like.

• ↑ https://youth.gov/youth-topics/afterschool-programs/benefits-youth-families-and-communities
• ↑ https://www.thirteen.org/edonline/concept2class/afterschool/exploration_sub3.html
• ↑ https://www.thirteen.org/edonline/concept2class/afterschool/exploration.html
• ↑ http://www.njsacc.org/pdfs/imagine.pdf
• ↑ https://www.wallacefoundation.org/knowledge-center/Documents/The-Cost-of-Quality-of-Out-of-School-Time-Programs.pdf
• ↑ http://www.afterschoolalliance.org/fundingForum1.cfm
• ↑ https://youth.gov/youth-topics/afterschool-programs/starting-and-operating-afterschool-program
• ↑ http://www.afterschoolalliance.org/stemfunding.cfm
• ↑ https://www.thirteen.org/edonline/concept2class/afterschool/implementation.html
• ↑ http://www.sedl.org/afterschool/practitioners_guide_to_afterschool_programs.pdf
• ↑ https://www.thirteen.org/edonline/concept2class/afterschool/implementation.html#asbs

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Child Day Care Services Business Plan

Start your own child day care services business plan

Kid's Community College

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Keys to Success

The keys to success for KCC are:

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

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

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

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

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

Start-up Summary

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

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

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Company Locations and Facilities

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

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

Company Ownership

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

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

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

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

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

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

Service Description

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

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

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

Competitive Comparison

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

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

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

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

Sales Literature

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

Fulfillment

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

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

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

Future Services

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

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

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

Market Segmentation

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

Full-Time Working Couples

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

After School Care

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

Part-Time Workers/Drop-Ins

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

Target Market Segment Strategy

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

Market Growth

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

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

Market Needs

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

Market Trends

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

Service Business Analysis

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

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

Competition and Buying Patterns

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

Main Competitors

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

Business Participants

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

Strategy and Implementation Summary

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

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

Value Proposition

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

Competitive Edge

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

Marketing Strategy

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

Promotion Strategy

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

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

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

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

Marketing Programs

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

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

Positioning Statement

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

Pricing Strategy

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

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

Sales Strategy

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

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

Sales Forecast

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

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

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

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

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

Sales Programs

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

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

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

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

Strategic Alliances

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

Web Plan Summary

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

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

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

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

Website Marketing Strategy

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

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

Development Requirements

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

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

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

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

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

Organizational Structure

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

Management Team

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

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

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

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

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

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

VP of Education Operations – Nitika Steverson-Kilpatrick

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

Management Team Gaps

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

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

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

Personnel Plan

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

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

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

Important Assumptions

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

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

Key Financial Indicators

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

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

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

Break-even Analysis

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

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

Projected Profit and Loss

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

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

The detailed monthly projections are included in the appendices. 

Projected Cash Flow

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

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

Projected Balance Sheet

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

Business Ratios

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

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How to Write a Business Plan for Daycare and Preschool

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

What do daycare investors want?

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

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

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

Most investors look for:

Industry background and experience

Financial performance and promise.

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

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

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

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

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

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

Writing a daycare business plan

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

Business description

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

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

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

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

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

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

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

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

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

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

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

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

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

Your business is ready!

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

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

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How to Start a Daycare Business Plan 

A Step-by-Step Guide for Childcare Planning with Tips to Help Entrepreneurs Start Their Daycare Business

Table of contents

What is daycare and why should i start one.

• Types of Daycare Providers
• Before Starting Your Daycare Business Essential Planning Steps
• Decision Journey Map Definitions

Assess the Competition

How to start your daycare business.

• The Importance of an Execution Plan
• Execution Plan: Marketing and Sales
• Form Your Daycare Business

Get Familiar with Daycare Licensing Requirements

• Choose Your Insurance and Liability 
• How to Gain Enrollment at Your Daycare  
• Invest In Childcare Experience Software to Build Your Daycare with Less Work

Build an Expert-Level Business Plan for Daycare

The childcare industry is full of passionate, hard-working individuals. Entrepreneurs just like you are starting a daycare from the ground up. In this guide, we'll give you guidance and provide templates to build a solid daycare business plan.

According to Forbes , daycare businesses were projected to have some of the fastest employment growth of all industries through 2020. Starting a daycare is a great opportunity for aspiring business owners who have a passion for early childhood education and child development.   

‘Daycare’ is an umbrella term for various childcare options (such as Montessori, head start programs, preschool, and many more) where parents and guardians drop their children off and leave them in your care to...  

• Socialize with other children in their age group  
• Learn basic fundamentals for future academic success  
• Reach important developmental milestones

Is Starting a Daycare Business Worth It?

Starting a childcare business or franchise is profitable, emotionally rewarding, and sustainable – the need for committed childcare entrepreneurs has never been greater.   

As of 2021, there were 856,238 childcare centers in the United States. The growing popularity of childcare centers comes from the demand. Parents will always need a form of care for their kids. Plus, there’s a necessity, especially beyond COVID-19, to socialize children in an environment that fosters development.  

Types of Daycare Providers 

• In-home daycare  
• Relative care  
• Preschool  
• Independently-owned daycare
• Daycare franchises  

The Difference Between Individual Centers and Franchises  

An independently-owned daycare often has an individual owner, a center director, and possibly a few other administrative staff members – along with teachers, cooks, bus drivers, etc. The owner is typically an individual who puts their own money and savings into opening the daycare, so all business rights (name, branding, etc.) belong to them.  

Alternatively, a daycare franchise falls under a corporate brand that has made an agreement with an individual to legally establish a business – using the company’s brand or trademark. In this scenario, the franchisee usually pays an initial fee, as well as ongoing royalties to the corporate franchisor. In return, the franchisee gains the use of a trademark, support from the franchisor, and the right to use the franchisor's system of doing business (including unique business policies and procedures, such as their method for advertising or enrollment). This model can be particularly beneficial for individuals who are passionate about early childhood education but don’t know how to get started on their own.  

For example, Kids R Kids and Kiddie Academy are both successful daycare business plans in the United States. Each center operates similarly, has the same name (aside from a unique location number or city/county name), and the same branding as all locations fall under the franchisee umbrella.  

Daycare Franchise Terms

• A franchisor is a daycare company that provides its services, brand, and business operations to the individual. This may also be known as a ‘ franchise system ’.  
• A franchisee is an individual owner that is being supported by the company (franchisor). Buying into a daycare franchise makes you the franchisee.  
• The franchise refers to the legal agreement between the company and the franchisee.  
• The franchise disclosure document is the legally binding contract between the company and the individual.  

Essential Planning Steps Before Starting Your Daycare Business

1) conduct market research.

When it comes to starting your childcare center, relying on assumptions about your customers and competitors leads to wasted time, money, and effort. In contrast, businesses that conduct regular market research improve customer retention and are 76% more likely to see an increase in revenue.  

Market research is a data collection process that evaluates both consumer behavior, competitor habits, and industry trends to determine the viability of your center and build a foundation for future business operations.  

Prepare for success upfront by conducting thorough market research to understand your competition, improve communication with your target audience, and identify new market opportunities. This research should result in actual data that you can use to drive your business and marketing strategies as you launch your center.  

There are a variety of tools available to help you conduct market research - all from the comfort of your own office. Gone are the days of hiring team members with clipboards to approach consumers face-to-face. Survey Monkey, Attest, and Sprinklr all offer digital market research tools to help guide you through the process of understanding your audience, your competitors, and your industry.  

2) Determine Your Target Market

A market segment is a group of consumers that could potentially enroll at your childcare center. First, identify your daycare target market segments and determine how big each segment is.  

Be careful not to fall into the trap of defining your market as “everyone in your community.” This often leads to a ‘spray and pray’ approach to your marketing and as we know, a message for everyone really speaks to no one. When you generalize your advertising in favor of not isolating a potential consumer, you aren’t able to effectively communicate with your ideal customers – forgetting to recognize how your childcare center can appeal to them and their needs.  

A classic example is a shoe manufacturer. While it would be tempting for a shoe company to say that their target market is anyone who has feet, realistically they need to target a specific segment of the market in order to be successful. If they sell adult athletic shoes, they should be building their message to target athletes or individuals who enjoy staying active and exercising. Likewise, if you offer programs for children aged 6 months to 4 years old, you should prioritize advertising toward young adults in their 20s and 30s.  

A common strategy when identifying target markets is to use the TAM, SAM, and SOM approaches to look at market sizes from a top-down approach as well as a bottom-up approach.

Target Market Terms

This should include everyone you wish to reach.  

Example: Your entire local community.  

SAM: Your Segmented Addressable Market or Served Available Market 

This is a portion of the TAM you will specifically target because they align with your offerings.  

Example: Families with young children.  

SOM: Your Share of the Market 

This is the group of your SAM that you will realistically reach—particularly in the first few years of your center’s opening, as you may expand and grow your service over time.  

Example: Families with young children who make at least $65,000 each year in household income.  

For childcare organizations with multiple brands, schools, or programs - increasing revenue and keeping families happy is vital for growth. Your Millennial parents need a uniform, high-quality experience, regardless of location.

Standardizing business processes has a significant impact on time savings, costs, and most notably quality. In fact, standardization improves quality by   61.9% ,  on average. Create consistent  enrollment processes across all your franchise locations to ensure every family has a great experience and a positive association with your brand – leading to higher conversion success and profitability.   

To achieve consistency, your franchisees’ marketing approach and advertising material must follow all your corporate brand guidelines. Your organization should have a lead management system that supports your childcare franchise staff as they  guide families through   the decision-making journey  while also ensuring each location is delivering a consistent parent experience.  

3) Develop Your Buyer Personas

Before you begin writing your daycare marketing plan, make sure you’ve defined your market and buyer personas. Without a deep understanding of whom you’re speaking to, a daycare marketing plan will have little value.    

Audience personas allow you to dive even deeper into your target market and help you understand more than just who your customer is. These identities inform you how to communicate with your customers in a way that relates to their pain points and needs.  

Building a daycare business plan is no joke! Check out childcare business tips at a glance . 

When you understand your customer’s motivations, you can uniquely address their concerns and questions in your marketing materials - leading to increased tours, enrollments, and revenue.   

Start by listing out the various kinds of programs and classes you’d like to offer at your center.  

Then, determine who the primary decision-maker is and who the primary influencers might be in each scenario.   

Primary decision-maker : typically the individual(s) taking financial responsibility and remitting payment at your center.   

Primary influencers : are  also crucial in the purchasing process as they often have the ability to sway decision-makers.  

For example, imagine you’re promoting availability for Summer camp programs at your center. In this instance, the primary decision-maker might be the parent(s) or guardian(s) whereas the primary influencer would likely be the child who’s deciding what kind of activities they want to do this Summer.  

Audience Overview

List the audiences, personas, or segments that you want your center’s marketing and messaging efforts to reach.  

Select one audience from above and describe it to the best of your knowledge. Go beyond the traditional persona to consider motivations & behavior.  

Identify the key stages in your audience’s enrollment journey from beginning to end, knowing there may be multi-dimensional steps within a stage. Complete the table for each journey at the individual stages from the specific audience’s point of view.  

Decision Journey Map Terms & Definitions 

Stage : This refers to each stage of the enrollment journey - awareness, consideration, action, and advocacy.  

Awareness : This is when a family is first learning of your center and your brand. They are researching multiple daycare centers and eventually send an inquiry to tour your facility or learn more.   

Consideration : During this stage, a family is touring your center and may be deciding between you and 1-2 other providers. Tip: Proactively equip your staff with key talking points so they can highlight your unique center features.  

Action : This is when a parent decides to register their child for care, pay fees, and is either placed on your waitlist or enrolls.  

Advocacy : After a successful, happy experience, this parent or guardian has become an advocate for your business. They’re telling friends and family about your center. This is vital for your word-of-mouth marketing strategy.  

Emotion : Identify what the persona is feeling at each stage of the customer’s journey. They may be anxious, curious, excited, or satisfied at various points. Put yourself in their shoes.  

Key Actions : What actions would a consumer take at each stage? For example, during the awareness stage, they may see your ad on Facebook, look you up on Google, or visit your website. In the consideration stage, they may call your center to get more information, look at your services online, or read reviews.  

Questions : What questions is the consumer asking in each stage? These are the questions you need to be answering for them in your advertising and marketing efforts.  

Competitive research helps you understand why customers choose your center over other alternative care options. This information provides you with insight into how your competition is marketing their services and over time, this can help you improve your own marketing campaigns and business offerings.  

Look up similar daycare centers in your area, and see what programs they offer, the type of facilities, their capacity, and their curriculum. Then, highlight the features that make your center stand out. Showcase your selling points in all marketing and advertising efforts.  Get started with these key questions...

• Who are my direct competitors and what do they offer?
• Who are my indirect competitors
• What does my competition's pricing look like?
• Do they offer promotional pricing or payment plans?
• What do they do best?
• What do they do poorly?

Download the guide to stay up to date on the latest industry news, trends and best practices for growing and managing your childcare business.

Download the Guide

Build a Daycare Business Plan

A good business plan will guide you through each stage of starting and managing your childcare organization- including how to structure, run, and grow your new business.  

There’s no correct or incorrect way to write your business plan. What’s most important is that you identify your business objectives and use this document as a roadmap for how to achieve these goals.  

A strong business plan can help you recruit business investors, gain funding, or find new partners. Prospective investors want to feel confident they’ll see a return on their investment and your center’s business plan is the perfect tool to assure potentials that working with you — or investing in your business— is a smart and profitable decision.  

Write a Day Care Executive Summary (Daycare Business Plan Outline)

Although this section is the first thing people will read, it’s advised that you write it last, once you know the details of your business inside and out. At this stage, you will be able to articulate your business more clearly and summarize all the information in a succinct, concise manner.  

Ideally, your executive summary will be able to act as a stand-alone document that covers the key highlights of your detailed business plan. In fact, it’s common for investors or loan providers to ask for just the executive summary when they start evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation, and more in-depth daycare business plan financials.  

As your executive summary is such a critical component of your business plan, you’ll want to make sure that it’s as clear and concise as possible. Cover only the essential components of your daycare, ensuring your executive summary is one to two pages maximum. This section is intended to be a quick read that hooks your potential investors’ interest and excites them to learn more.  

The executive summary is a tell-all first paragraph that details...  

• The city and state of your center (you can decide on the exact location later)  
• A potential open date  
• A projected enrollment count (number of full-time enrollments)  
• Programs you plan to offer  
• Ages you hope to serve  
• A quick financial summary (based on grants, funding, and potential revenue from projected enrollments)

This may seem like a lot of information upfront, but it’s simply a high-level overview of your plan.   

Conduct an Opportunity Analysis 

The opportunity section of your business plan includes information about:  

• The problem that you’re solving within your community
• P rograms and classrooms   do you plan to market your center(s) to
• How your daycare facility fits into the existing competitive landscape  

Opportunity Analysis: An Example 

The opportunity analysis portion of your business plan is important for outlining what distinguishes your daycare from your direct and indirect competitors. It details how you can continue to expand and grow your center in the future.  

Use your previous competitive research to determine your daycare business’s competitive advantage and position. Analyze potential strengths, weaknesses, opportunities, and threats. 

Problem and Solution

Describe the problem that you are solving for your customers. Childcare centers are need-oriented, meaning your consumers have tangible pain points that you must resolve to be successful.   

So, what is the primary pain point for them? Maybe it’s that busy, working parents need a caring, safe place for their child during the day, or perhaps families are seeking after-school care options for their elementary-aged children, or maybe parents need 24-hour childcare options when they’re traveling or working odd hours.   

Now, assess how they are solving their problems currently and where there’s room for improvement. If there's only one childcare center in your community and it has no open seats, you could be the solution. Or maybe there are lots of existing care providers in your city but they’re expensive or have rigid pickup and drop-off times that working parents have trouble meeting. Or perhaps there aren’t any existing childcare businesses within a reasonable driving distance of where you’d like to place yours.  

Defining the problem you are solving for your customers is by far the most critical element of your business plan and is crucial for your daycare business’ success. If you can’t pinpoint a problem that your potential customers have, then you might not have a viable business concept.  

To ensure that you are solving a real problem, try conducting your own survey with potential customers to get a better understanding of their needs and validate that they have the problem you assume they have. Then, take the next step and pitch your potential solution to their problem.

Do they agree that it’s a good fit or does it seem to fall flat?  See how to come up with a strategic plan for your business.

The Importance of Creating an Execution Plan

The execution chapter outlines how you’re actually going to make your childcare center work . You’l l address your marketing and enrollment plans, operations, success metrics, and any key milestones that you expect to achieve.  

Execution Plan: Marketing and Sales  

The marketing and sales plan section of your business plan details how you propose to reach your target market segments, how you plan on converting those target markets, what your pricing model looks like, and what partnerships you may need to make your center a success.   

Your Positioning Statement

Once you understand your audience, the first part of your marketing and sales plan is your positioning statement. Refer back to your value proposition to create a simple, straightforward sentiment, explaining where your company sits within the competitive landscape and what differentiates your venue from the alternatives that a customer might consider. This statement should be written for an investor or loan provider, rather than for your customer.  

One daycare business plan example - a positioning statement for a 24-hour childcare center in Austin, Texas may look like this:

“For the Austin-based family who is seeking childcare around the clock, Jenny’s 24-Hour Daycare is a safe option for young children with nutritional meals, best-in-industry sleeping arrangements, a clean outdoor play area, and highly trained care professionals. Jenny’s 24-Hour Daycare is the first center of its kind within 30 miles of the Austin metroplex and offers competitive pricing and tuition payment plans.”  

Use this formula to develop a positioning statement for your center: 

Your Mission Statement

Your mission statement is a scaled-down version of your positioning statement. This should be just one or two sentences that are geared toward your target consumer and describe what your business plans to accomplish. This statement usually includes company core values that explain your daycare’s purpose and how you serve your audience.  

For example, Cadence Education is a leading early childhood education provider with the mission of “providing parents with peace of mind by giving children an exceptional education every fun-filled day in a place as nurturing as a home .”  

Pricing 

Your positioning strategy will typically determine how you price your memberships and packages. There are some basic rules that you should follow when deciding on your price point:  

• Cost-plus pricing : For the most part, you should be charging your customers more than it costs you to host them at your center to ensure your venue is profitable and appealing to investors.  
• Market-based pricing : Look at what your competitors are charging and then price based on what your audience is expecting.  

Strategic Alliances

As part of your marketing plan, you may wish to collaborate with other organizations such as local camps, after-school programs, pediatricians, or even other childcare centers that don’t offer the same activities that you do.   

This partnership should benefit both of you – it may help provide access to a target market segment for your venue while allowing your partner to offer a helpful recommendation to their customers. If you’ve already established an alliance, it’s important to detail that in your business plan.  

The operations section is all about how your business works. This portion details the essential logistics such as staffing and sourcing and fulfillment. But remember, your goal is to keep your business plan as short as possible, so too much detail here could easily make your plan much too long.  

Milestones and Metrics

It’s critical that you take the time to look forward and schedule the next critical steps for your business. Investors will want to see that you understand what needs to happen to make your plans a reality and that you are working on a realistic schedule.

Then, determine how you will measure the success of each milestone by listing out the key performance indicators and metrics needed to see progress. These will be the numbers you monitor on a regular basis to evaluate the trajectory of your business. For example, you may look at how many families tour your center each week, how many children you enroll each month, or the amount of revenue you bring in per quarter.  

Company and Management Summary

The structure of your staff and teams sets your daycare up for success. In a new daycare center, there’s typically an owner (or franchisee), a center director, staff members, an enrollment or marketing team, accounting/administration, teachers, assistants, cooks, bus drivers, and janitorial staff. For example, the average small daycare business plan includes 8-10 fully licensed and/or certified early education teachers.

Financial Forecasts  

A typical financial plan will have monthly sales and revenue forecasts for the first 12 months, and then annual projections for the remaining three to five years. Break your sales forecast down into several rows, focusing on just high-level buckets at this point.   

Knowing how much your daycare will cost to open ahead of time can save you money, stress, and time. Daycare business plan start-up expenses vary by size, enrollment capacity, and miscellaneous needs.

Keep in mind that you can save on staffing costs and cut down on overhead with technology that helps to streamline your center’s operations. After all, 40% of Millennials prefer self-service over human contact when interacting with businesses.   

It’s essential that you find ways to enable families to book tours and enroll online without ever having to make a phone call to the center- reducing time spent on necessary-but-manual tasks for both your staff and inquiring families.  

Finally, articulate your profits and losses based on the data from your sales forecast and your personnel plan plus a list of all your other ongoing expenses associated with running your childcare center.  

See this Formula for Financial Forecasts

Step 1 : Average cost of tuition per child x your expected enrollments x 12 (annual revenue – assuming each family enrolls their child in one of your summer programs).  

Step 2 : Daycare businesses make around 16% profit from their overall revenue, after daycare expenses. Multiply your number from step 1 by .16 to get your predicted profit.   

Example : Let’s say you plan to charge families an average of $315 per week for childcare. With that, your goal is to enroll 60 students by the time your daycare center opens. Multiply $315 x 60 x 12 (annual revenue). This should come out to $226,800. Lastly, multiply your revenue of $226,800 by .16, which equals a net profit of $36,288 per year.  

Consider Various Funding Sources

Depending on your situation, there’s both loan and grant funding in childcare. Between state tax credits, loans, and grants – there are financing options for a variety of situations.  

Review Your Tax Deduction Options

Collecting tax credits is one way to receive an annual deduction on daycare costs. Based on your state, you can claim tax credits for...  

Collect Daycare Grants for Your Business

Often, startup costs for opening a daycare are high. Certain states and counties offer grants for new daycare businesses. There are several grant options, depending on your child and family details.   

For example, there’s a Preschool Development Grant Program and a Head Start/Early Head Start grant to provide funding that expands early childhood centers and developmental programs.   

Know Which Loans Are Available to Daycare Business Owners

While grants are a wonderful option for freshly opened daycare businesses, loans are occasionally easier to come by. They’re offered widely and often have fewer requirements to qualify. Check out a few loan examples for your daycare center.   

• SBA Loans , otherwise known as Small Business Administration loans, have exceptional rates, low interest, and flexible repayment options.  
• SBA 7(a) Loans are beneficial for covering pricier equipment funds and real estate. Loans of up to $5 million are available to daycares.  
• SBA 504 Loans – these are wonderful for business expansions and involve a loan for 50% of the project cost.  

Take Actionable Steps to Bring Your Daycare Business to Life

Both Limited Liability Companies and Incorporations offer the significant legal advantage of helping to protect assets from creditors and provide an extra layer of protection against legal liability.  

The main difference between an LLC and a corporation is that an LLC is owned by one or more individuals, and a corporation is owned by its shareholders. In general, the creation and management of an LLC are considered simpler and more flexible than that of a corporation.  

Find the Right Vendors

Choosing the right suppliers for your business is essential. If your vendors aren’t reliable or don’t deliver quality products, your new center will struggle to attract families. As a childcare provider, you will likely need the following vendors at one point or another:  

• Electrician 
• Plumber  
• Food and Beverage Supplier 
• Educational Materials Supplier  
• Substitute Staffing Provider 
• Accountant  
• Childcare Licensing Consultant 
• Cleaning & Maintenance  
• Childcare Management System (CMS) 
• Customer Relationship Management (CRM) Software  
• Digital Payments Provider 
• Online Forms Software  
• Childcare Experience Software  

All states have different daycare licensing requirements. Generally, you'll follow the steps below.

1) Take a Course

Attend and complete a pre-application course (you’ll receive a certificate at the end – remember to save it).  

2) Submit Your Application

Submit your online licensing application. It'll ask for details about your business that were outlined in the executive summary.

3) Pay Fees

Pay your application fees. The fee depends on your center's capacity or the number of children you plan to enroll.

4) Complete Inspections

An inspection of your business property must be conducted.

5) Submit Your Service Payment

Register and pay for the inspection.

6) Conduct Background Checks

Submit background checks (this may also be an additional charge).

For More Information on How to Operate In Licensing Excellence, Listen to the Podcast Below

Choose Your Insurance and Liability

• Provide general liability – stay covered if your center has any property damage or injuries to third parties (children).  
• Abuse coverage protects your childcare business or franchise. If employees turn out to be abusive towards children, this policy covers defense costs and defends you against financial losses.  
• Professional liability insurance provides coverage for your business and workers if there is a neglect claim.  
• Hired and non-owned auto liability ensures everyone is covered if there is a pick-up/drop-off vehicle accident.  

*Liability requirements may vary by state.

How to Gain Enrollment at Your Daycare

From a business owner's perspective, the next step after successfully starting your daycare is to grow your center and gain enrollments.   

Begin by building a strong company culture, actively marketing your daycare center, and finding the right childcare technology to optimize your enrollment process and save time.  

See how to elevate your business plan for daycare with better waitlist management.

Create a Culture Where Staff Want to Work

A daycare center that stands out from the rest has happy staff members that want to work hard. Create a diverse employee culture that feels comfortable openly talking about situations. Provide support, patience, and room for growth. See more tips for creating a healthy and positive culture for your daycare staff .  

Market Your Center

A daycare marketing strategy starts with an achievable goal. Do you want to fill your enrollment spots? Do you want to build a waitlist? Should you focus on scheduling more tours or gaining new leads ?   

Choose a goal with measurable results. That way, you can track and analyze your marketing performance. When it comes to how to promote daycare business, marketing helps families realize you're the best childcare center on the block. Promote your centers through...

• Social media (especially Facebook – 83% of Millennials have a Facebook account).  
• Landing pages and contact forms on your website  
• Listing directories  
• Email and text marketing campaigns  
• Referrals  
• Digital advertisements  
• Flyers  
• Word-of-mouth marketing  

Tip: childcare experience software that automates the reports you need helps you to save time and improve your return on investment (ROI).  For example, a  Source of Families report shows you where your leads are coming from to optimize your efforts.

Invest In Childcare Experience Software to Build Your Daycare with Less Work  

LineLeader is revolutionary childcare software that automates lead capture, follow-up, scheduling tours, and reports. Craft  beautiful, personalized marketing campaigns to continually grow your business.  Plus, easily manage your curriculum, attendance, and billing with automated center management

Get more from your marketing while saving franchisees 10 hours every week with LineLeader. Automate everything from lead capture and reporting to center management—all from one place.

Download Your Guide

Resources to help you run your childcare business.

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Additional resources.

For more information on specific childcare resources regarding marketing tools, campaigns, tips, and best practices - see below.

1. Learn hidden secrets no one tells you about starting a childcare business .

2. See how to operate in childcare licensing excellence to boost enrollment.

3. Beth Fiori of Tiny Treasures provides expert tips. check out ways to improve your business plan for daycare with enhanced waitlist management.

4. Discover tips to maintain the best childcare center on the block.

5. Gain advice for strengthening your daycare staff culture. 

6. Learn the benefits of building a daycare business plan , at a glance. 

LineLeader Video Resources

How to start an After School Program in California: Step-by-Step Guide

Starting an afterschool program in California can be a rewarding experience, both personally and financially. California has a high demand for afterschool programs in addition to regular school hours due to the number of working families in the state.

Before setting up your afterschool program, you need a comprehensive business plan that reflects your operating costs, marketing strategy, and considers the legal requirements of the state of California.

By providing a safe environment, for young people, that follows California’s legalities, your afterschool program can contribute significantly to the well-being of children of all ages.

Afterschool Program Legal Requirements in California

Before starting an afterschool program in California, you need to understand the legal requirements. Predominantly these involve:

• Licensing requirements
• Staff-to-chid ratio requirements
• Staff qualifications

Do Afterschool Programs Have to be Licensed in California?

Afterschool programs in California require licensing by the California Department of Social Services (CDSS). CDSS Child Care Licensing ensures that the program meets minimum safety and health policies and requirements set by the government. To start a child care licensing application, you will need to complete a form, provide documentation of your program's health and safety practices, and pay a fee. Visit the CDSS website to learn about how to get a child care license in California .

What is the Staff-to-Child Ratio in California for after school programs?

California has specific requirements for the number of staff members that must be present in a quality afterschool program based on the number of children enrolled.

Title 22 Child Care Licensing Regulations

Title 22 is the set of regulations that govern childcare centers in California. These regulations define the staff-to-child ratios for an afterschool program. When determining these ratios the age of the child, their safety and the type of child care being offered were considered. Depending on the children’s age, there are different staff-to-child ratios.

• Infants (birth to 18 months old) - 1:3 adult-child ratio, 1:18 teacher-child ratio.
• Toddlers (18 months to 36 months old) - 1:4 adult-child ratio, 1:16 teacher-child ratio.
• Preschool (36 months to enrollment in kindergarten) - 1:8 adult-child ratio, 1:24 teacher-child ratio.
• Children enrolled in kindergarten through 14 years old - 1:14 adult-child ratio, 1:28 teacher-child ratio.

Title 22 has deemed these ratios the most effective when delivering high-quality child care, comprised of the necessary attention and supervision required by children of these age ranges.

Learn more about the Title 22 Regulations on California’s Department of Social Services website .

What are the Qualification Requirements for After School Program Staff Members?

The state of California has specific staff qualification requirements for afterschool programs. These requirements ensure that staff members have the necessary training and expertise to provide a safe and engaging environment for young people.

Title 22 Director Qualifications

The afterschool program director must have a Bachelor's degree in child development, early childhood education, or a related field. Alternatively, they can have a Bachelor's degree in another field supported by a minimum of 12 units of coursework in child development, early childhood education, or recreation.

Aides and Staff Qualifications

Aides in afterschool programs must have completed six units of coursework in child development, early childhood education, or recreation. Alternatively, they can have a CDA credential or enroll in a CDA program.

Staff members working in afterschool programs in California need to complete 15 hours of health and safety training before working with children. Within this training, members of staff will cover pediatric first aid. Often these courses will also cover child abuse prevention. Finally, new staff members who intend to work with young people will undergo a background check to ensure they can work closely with children.

How to start an after school program in California: A step-by-step business plan

After solidifying your understanding of California’s legal requirements for opening an afterschool program, the next stage is generating a business plan. This business plan will determine the demand for your program and your target demographic, consider potential sources of federal funding, set your fees, and contain a marketing strategy.

Understand Local Demand and Existing Competition

The first step: understanding demand! When developing your business plan, research the local demand for afterschool programs. You can research this demand by discovering how many employed parents are in your local area and the number of schools already offering afterschool programs.

During this stage of your business plan, we suggest looking into your competition. Understanding your competitor’s pricing and services will allow your afterschool program to stand out from the crowd.

Funding for Afterschool Programs

Within the state of California, there are multiple types of local and federal funding options available. Organizations like the California Department of Education offer grants to start an afterschool program.

In addition to potential grants, you will likely also charge a fee for your program that will cover your operating costs.

It is worth considering scholarships or sliding-scale pricing to make your afterschool program accessible to all families and young people within the community.

We will discuss the grants available in California toward the conclusion of this article.

Set Pricing for Your Afterschool Program

Once you have determined your funding sources, you can set pricing for your afterschool program. Firstly, make sure to consider your operating costs! These include your rent, equipment, staff salaries, and other expenses. Determining your operating costs will help you decide upon a fee.

Finally, consider the pricing of other, local afterschool programs to help set competitive fees. Pricing your after-school club competitively is a great way to increase your enrollment rate. Use these initial, lower costs to gain reviews for your afterschool program. Once you have positive testimonials, you can increase your rates.

Develop a Marketing Strategy

Determining your target audience is the first stage in developing a marketing strategy to attract families to your afterschool program. Although your afterschool program is for young people, your marketing strategy should target the parents and guardians who place the booking.

Social Media Marketing

Your social media marketing efforts should target the child’s parent or guardian. We recommend considering Facebook or Instagram. Adults in this demographic are more active on these two platforms.

By creating a Facebook and Instagram business page, you can share updates on your program schedule, photos, and videos of your activities. If you plan to share photographs of the children (firstly, ask permission!) and subsequently make both accounts private to ensure their privacy and safety.

Partner with local schools or community centers

Partner with local schools or community centers to offer promotional flyers for your afterschool program. An eye-catching flyer that provides relevant information can increase enrollment in your afterschool program. Distribute them in high-traffic areas and consider offering incentives to increase your chance of success.

Choose a Suitable Venue and Equipment

Choosing a suitable venue and equipment for your after-school club is the next stage of your business plan.

Consider the safety and accessibility of the venue, as well as the availability of equipment such as computers, books, and sports equipment, and its position in relation to nearby schools. Is it walkable for the kids in attendance, or will they need to be dropped off?

Managing Bookings and Payment Collection

Managing bookings and payment collection is a key operational element of your business plan. You can do this via a booking system, a spreadsheet, or using pen-and-paper. We’d recommend using an online booking system such as Pembee . This will allow parents and carers to book services online without having to phone or email you, handle the registration process automatically, generate an activity attendance register with live information and ensure that you are running your after school club efficiently.

Hiring staff members

It is essential to hire staff members who are qualified, experienced, and enthusiastic about working with young people to ensure that your after-school club is providing high-quality child care. Depending on your needs and budget, consider hiring a mix of full-time and part-time staff members while adhering to the legal staff-to-child ratios for quality child care.

When hiring new staff members, clearly define the job role, qualifications, and experience required, and advertise through effective channels to attract suitable candidates.

All of your new staff must undergo a background check and have qualifications determined by the state of California. These requirements will ensure the safety and well-being of the young people in your care.

After school club activity ideas

After school club activities delve into subjects and interests absent in a school curriculum. These activities enable them to explore their interests, uncover hidden talents, and apply the knowledge they have gained in school to different areas.

Children can enjoy diverse learning experiences at a quality afterschool club program.

A few after school activity ideas:

• Gardening skills
• Photography workshops
• Drama performances
• Sports days
• Cooking and Baking
• Dance classes

For more inspiration on activities you can explore, check out our blog post after school club activity ideas list.

Grants in California for after school child care

The state of California offers a variety of grants for setting up afterschool programs. These grants support organizations and individuals committed to providing quality afterschool programs to young people state-wide.

California Department of Education After-school Education and Safety Program (ASES Program)

ASES is a state-funded grant program for schools and community-based organizations that provide safe, educationally enriching afterschool programs to children in grades K-12. ASES after school program application criteria focus on integration with the school day and other Expanded Learning opportunities, a safe physical and emotional environment, opportunities for relationship building, and promotion of active student engagement.

21st Century Community Learning Centers (CCLC)

The 21st CCLC is a federally funded grant for afterschool programs that serve high-poverty, low-performing schools. The program focuses on learning programs, literacy, and community engagement.

Child Care and Development Fund (CCDF)

This federally funded program supports afterschool programs that specifically work with and support low-income families and young people with reduced opportunities. CCDF aims to provide affordable child care with an educational theme.

Safe Routes to School (SRTS)

The primary aim of this grant is to encourage children to walk or bike to school. The SRTS federally funded grant provides incentives that encourage children to walk or use their bikes. The end goal of SRTS is to improve physical activity, reduce traffic, and improve air quality.

California Endowment

This private foundation provides funding to organizations that improve the health and well-being of Californians. Specifically, the California Endowment focuses on low-income communities, communities of color, and projects that have these individuals at their heart.

How to apply for these grants:

• Research into each set of eligibility requirements
• Ensure you meet these requirements
• Write and submit a detailed proposal outlining the details of your business plan

We would encourage you to carefully research the eligibility requirements and guidelines as they differ from one grant to another.

Other grants and funding opportunities are available at local and regional levels, so we recommend researching these options!

Other useful resources

Afterschool Alliance : The Afterschool Alliance works with agencies, elected officials, businesses, 50 state afterschool networks, community leaders, and program providers across the nation to expand support for quality afterschool programs and best practices.

The California After School Network : The California AfterSchool Network (CAN) exists to make a difference in the health and well-being of children, youth, their families, and their communities by strengthening access to high-quality programs.

After School Program Grant Proposal Cover Letter : Our comprehensive guide will help you write a persuasive grant proposal cover letter that impresses funders.

In Conclusion

Setting up an afterschool program in California can be a fulfilling and rewarding experience that benefits its local community, provides quality child care, and actively supports the development of young people.

Establishing an afterschool program in California requires careful planning, diligent preparation, understanding of startup costs and grants, and adherence to legal requirements. To comply with California regulations, you must follow specific staff-to-child ratio requirements, complete health and safety training, and undergo background checks. Moreover, you must provide an environment that promotes the safety and well-being of the children in your care.

Aside from the legalities, a concrete business plan is required. Ensure you understand the local demand and existing competition, develop a marketing strategy, determine your operating costs and secure funding through grants or other sources. Additionally, it is essential to choose a suitable venue, hire qualified staff members, and develop engaging activities.

Following the steps discussed in this article, you can create a quality afterschool program for young people that contributes positively to your community's well-being and provides high-quality child care.

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How to start a business in before & after school care.

With the rising need for before-and-after-school-care programs, parents are likely to appreciate the existence of such a program that gives them the flexibility to work. Their children will develop both academic and social skills in a more laid-back atmosphere than the one they are accustomed during school hours. Most of the time, schools are cooperative with after-school businesses, willing to provide space for the students.

Where to Start

First, you must find an existing institution that needs your services such as a church, a school or a child care facility . You're an immense benefit to such organizations as you’re helping them meet the needs of their clientele. Once you find a willing partner, prepare a short, one-page business plan, and ask the relevant executive (pastor, director or principal) to have a look and give you some feedback. You can even check out similar programs such as the YMCA, to get some ideas for how you’ll structure your program.

Gaining Credibility

Start gaining credibility by creating a more comprehensive business plan than the one you presented to your partnering school, child care facility or church. Focus on the important details such as your credentials and experience, the direct services you offer and the school fees. Gain trust by emphasizing your dependability, and make it clear that the safety of their clients' children is your number-one priority. Your marketing shouldn’t be too aggressive since your audience is already interested. Start with a small number of students and grow organically. You should have a full-time site manager who is committed to ensuring the stability of the program.

There are many sources of funding for before-and-after-school-care businesses including business loans and grants from the government. You can visit afterschool.gov for information about all the current sources of funding for such programs. Remember, this is a business, so cash flow is king. The fees paid by parents may not be enough to make your program prosper, so you may need to seek additional capital. You can also design fundraisers, so long as they do not interfere with the plans of your school partner and aren’t overwhelming for parents.

Choose Your Services Carefully

While profit is a priority, it shouldn’t come at the expense of offering quality services. Make sure you have both the skills and experience to provide your services. Next, factor in your expenses, such as training, employee benefits, regulatory fees, accounting and insurance costs. Have a clear fee-collection policy stating the consequences of slow payments, non-payments and gross misbehavior by students.

Keep It Fun for Students

Make your curriculum flexible and fun for students, even if you’re trying to align it with the objectives of the school. Students should be able to release the tension from their school day at your program. Serve nutritious snacks prepared in a food-safety-compliant cafeteria. Keep the parents updated on the progress of their children in the program and remind them of their obligations on a weekly or monthly basis.

A Note on Finances

Liability insurance for your business should be separate from your personal insurance. Consider hiring a licensed accountant to handle your taxes if you’re apprehensive about doing it yourself. Instead of stepping up the program fees multiple times during the first year to meet cash flow needs, charge more fees at the beginning.

Related Articles

Goals & objectives: suggestions for school principals →.

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How to open a church daycare & preschool →.

Interview Tips for a Head Start Teacher's Assistant →

How to start a driver's ed business →.

How to Start a Phlebotomy School →

• Kars 4 Kids: How to Start Your Own After School Program
• Afterschool Alliance: Starting an afterschool program

Nicole LaMarco is a copywriter and content marketing strategist with more than 15 years of experience. See her website at www.NickyLamarco.com

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12 unique daycare business ideas you’ll love.

Looking for unique daycare business ideas that can help you supplement revenue from your existing child care program? Or maybe you’re passionate about working with kids and would love to start a child-centered business that doesn’t follow the typical child care center business model?

In this blog post, we’re sharing 12 of our favorite business ideas for expanding your existing child care operation or launching a new program from scratch.

Our 12 daycare business ideas all have two things in common. First, they all involve working with kids and providing valuable services that support their healthy development and early education. Second, each of these unique daycare business ideas can work as a stand-alone business model or an addition to your existing child care program.

We hope you’ll enjoy reading our list and putting some of these daycare ideas into action!

12 Daycare Business Ideas You’ll Love

Offer a child transportation service.

Parents spend hours of time shuttling their kids around every month – whether it’s to and from school, your child care center or their favorite after school programs. A child transportation service helps relieve that stress for parents, and saves them time.

If you’re currently operating a child care business, you could start by offering to pick kids up from school or their homes, transport them to your program, and return them at the end of the day. You’ll need a drivers license, a safe vehicle with insurance, car seats as needed, a pick-up schedule for parents, and a planned route for the morning (pick-up) and the afternoon (drop-off).

You could even offer a school bus service if there’s sufficient demand in your neighborhood.

Start an Overnight Care Program

Most child care centers are open during the day – typically from 7 a.m. until around 6 p.m – but what about parents who need child care overnight?

There are lots of reasons why parents would want overnight child care: maybe they want to pick up extra night shifts, or perhaps they travel for business. To meet the needs of these parents, you could even offer a weekend care program that extends your child care hours from Friday evening until Monday morning.

An overnight or weekend care program should provide 24-hour care services and a quiet space where kids can enjoy quality sleep.

Free Report

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We conducted an email survey of more than 100,000 child care leaders and teachers. See what they had to say about the current state of the industry.

Start an Evening Care Program

With most child care centers closing by dinner time, many families don’t have reliable access to child care in the evenings – usually after 6 p.m. There’s a huge demand for child care services during this time, as parents may need to attend a work event or travel to a doctor’s appointment.

In some cases, parents just want to enjoy some free time without the kids.

If you’re already operating a child care center, you can start an evening care program by extending your hours until 10 or 11 p.m. on Friday, Saturday and Sunday evenings. If there’s enough demand in your area, you could even offer evening hours care during the week.

Offer Child Care for Travelers/Tourists

Parents take their kids on vacation, often for weeks at a time, but they may also want a break from child care duties so they can relax or visit attractions that may not be kid-friendly.

If you live in a tourist destination, or near a hotel, it might be worthwhile to start advertising child care services for travelers and tourists.

You might be able to form a cross-promotional partnership with a local hotel owner/operator, or even start running a child care operation from inside the hotel.

Start a Baby Clothing Line

Starting a baby clothing line is a great way to supplement your existing daycare business plan.

If you’re running a child care operation that offers infant care service, you’ve already got access to a quality audience for your products, space for retail sales and a child care brand you can integrate into your clothing designs. You could even sell your clothing line to a wider audience using digital channels like social media or an ecommerce website.

Curate and Sell Children’s Books & Educational Products

Engaged parents want to provide their kids with high-quality books, toys and educational products that help their kids grow and develop. As a trusted child care provider, you’re uniquely positioned to recommend books, activities and educational toys that can help each child hone their natural gifts and talents, or shore up areas of weakness.

If you’re the creative type, you could design and market your own educational toys and games, build an early childhood education app or publish a children’s book with the ideas and lessons you feel are most important for kids today.

Start an After School Tutoring Club

An after school tutoring club is a space where kids of all ages can gather to get help with homework, play age-appropriate educational games, or participate in learning challenges and activities.

Your tutoring club could include activities like trivia, word games and math puzzles that encourage kids to develop their general knowledge, vocabulary and teamworking skills. You could hire local high-school kids as tutors, or establish a program where older kids earn volunteer credit by providing free tutoring to younger kids who need extra help to succeed academically.

Offer a Private Sports Coaching Service

There are significant advantages to getting kids started with sports early in life. Early exposure and quality coaching in basketball, baseball, football or soccer can help kids develop a love of sports that leads to healthy lifestyle choices, better self esteem, positive community involvement, and job or educational opportunities.

Your ability to offer private sports coaching depends on your own skill or experience in a popular sport and the resources you have available. You’ll need access to the proper sporting equipment and facilities to ensure high-quality practice in a safe environment.

Expand Your Business into Party Rentals or Event Hosting

Pivoting into party rentals or event hosting is one of our favorite child care business ideas.

If you’re currently operating a child care business, you may know parents who love to throw their child an extravagant birthday party each year. You can get in on the action by offering to host children’s parties at your center, or purchasing extra child care toys and equipment that parents can rent for their child’s party.

Some popular rental items for kids parties could include:

• An indoor or outdoor event space
• An inflatable bouncy castle
• A water gun collection
• Outdoor lawn games
• Carnival games
• Child-friendly furniture
• Decorations

Offer Swimming Lessons

If you love working with kids, are an expert-level swimmer and have access to a pool, you can combine your passions by offering swimming lessons to kids in your area.

Parents recognize swimming as a healthy lifestyle activity and a skill that could potentially save their child’s life in the future. Every kid should have the opportunity to learn basic aquatic skills like treading water, floating, kicking and rudimentary swim strokes that they could use in an emergency situation.

When you’ve got kids around water, safety has to be the number-one priority. Make sure you’ve got adequate supervision for the kids and be clear about the most important safety rules: no running near the pool and no horseplay.

Offer Music Lessons

Studies are conclusive that playing and experimenting with music accelerates brain development in young children. If you love music and want to work with kids, why not offer private music lessons or start a music-focused child care program for kids in your neighborhood?

Here’s why offering music lessons is a winning child care business idea:

• Low Startup Costs – It’s easy to find cheap instruments (recorders, harmonicas, drums, etc.) for kids to start playing with.
• Big Benefits – Kids develop counting, rhythm, abstract thought, musicianship and teamworking skills that can lead to extra credit toward their education, job opportunities and positive community involvement.
• Easy to Market – Kids love to experiment with music, and the benefits of musical education are already well known, so you won’t have too much trouble convincing parents to register their kids.

Start Teaching Computers and Coding

We live in a digital world where some of the best and highest-paying jobs are in software development and IT – so how early should kids start learning to code?

The answer might just be “as early as possible.” Just like learning another language (e.g. Spanish, French, German), kids who start early in life will learn faster and get further than peers in their age cohort. We’ve seen coding programs targeting kids as young as six years old.

Developers have already created apps and software programs that introduce kids to coding with simple, pattern-based drag-and-drop exercises. Your business could provide the space, equipment, expert coaching, community support and unique opportunity for kids to get a head-start learning this vital skill that can prepare them for a successful future.

Grow Your Child Care Business with Procare Solutions

Are you excited about launching your daycare business idea, but worried about handling registrations, student attendance tracking , class schedules, payments and other program management details?

Procare is here to help, with trustworthy, modern and easy-to-use child care management software for your child care center or after school program . Our expertise in child care has helped us create easy solutions for child care billing , attendance tracking, staff management and program registration – everything you need to successfully run your program every day.

Ready to bring your daycare business idea to life with Procare?

Request a Demo

Talk with a friendly Procare expert to get a tailored child care solution for the unique needs of your business.

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Related Resources

Full guide to starting your own in-home daycare.

If you’re interested in starting your own in-home daycare business, this is the guide for you. We’ve created a step-by-step roadmap to help you.

How to Become an After School Program Manager

Are you interested in becoming an after school program manager? We’ve put together this resource with advice on how to do it.

Owning a Child Care Business: What to Expect

Are you wondering what to expect by owning a daycare? Learn about costs, requirements, regulations and more in our out guide to owning a daycare.

How To Start An Aftercare Center In South Africa

What is an Aftercare Center?

The aftercare is a well-established facility with a sound reputation that offers a safe, supportive and welcoming environment for the learners who need after school care and homework supervision.

• Meet with the relevant  Service Organisation :

Before you establish an After School Care Service, you must meet with the relevant  Service Organisation  in your area where the following will be discussed:

• a  form 11 application form
• DSD registration requirements and procedures
• minimum norms and standards and other approvals that will be required such as
• needs assessment form
• business plan
• job description for staff
• clearance certificates as per the National Child Protection Register
• learning programme
• Municipal requirements which include:
• municipal lease/ rental agreement
• zoning certificate
• approved building plans
• health clearance certificate
• Complete the relevant forms and submit it to the relevant  Service Organisation .  
• Site visits will be conducted by the relevant  Service Organisation  and Municipality who will determine: 
• If the physical condition of the centre is satisfactory.
• If administrative and financial systems are satisfactory.
• If the services and programmes for the children are satisfactory.
• If norms and standards are complied with.

Once all the requirements are met, the relevant  Service Organisation  will submit all the documents (portfolio of evidence) to DSD Head Office for the issue of a registration or conditional registration certificate. This certificate may be valid for up to 5 years, thereafter the same process will be followed for the renewal of registration of the facility.

• You have to re-register
• When you move to another building or site.
• When you make changes to the structure to accommodate more children.
• When you sell the business or
• When there is a change of ownership.

Frequently Asked Questions (FAQs)

How does aftercare work?

Aftercare is a plan to support someone in their early recovery, prevent relapse, and help them as they work toward their life goals. An aftercare plan includes activities, interventions, and resources to help a recovering person cope with triggers, stress, and cravings that they may face when treatment is over.

What qualifications do I need to open a daycare in South Africa?

• a business plan containing: the business hours of the partial care facility. the fee structure.
• the constitution containing the: name of the partial care facility.
• an original copy of the approved building plans.
• an emergency plan.
• a clearance certificate.
• a health certificate from the local municipality.

What is the intent of an after school program?

Extracurricular programs are not school and shouldn’t feel like school or homework. They are often spaces where kids can act freely and more open, allowing kids to be themselves and easily meet other like-minded kids. These programs give kids the opportunity to express and practice their social skills

Can schools make a profit from after school clubs?

Schools also receive some financial benefit from hosting out of school clubs. If the school runs the club directly it will obviously receive income from fees, and if the club is provided by a third party then the school can expect to receive rent to cover their costs.

What are the benefits of after school club?

After school clubs, within their fun and dynamism, can forge lifelong character traits such as discipline, time management, thoughtfulness, resilience, determination, fair-mindedness and support for others.

Why should I join an after school club?

Clubs, classes and creative sessions provide fun ways for kids to play, learn new skills and gain fresh experiences. Here’s how… Activities after school don’t just keep restless kids busy or entertained. They can also offer great developmental benefits that will help them academically and socially.

What happens at an after school club?

Your children will be collected from their classes and escorted to the After School Club. If they attend a club after school, they will be collected when the club ends. They will be able to access arts and crafts resources, construction, board games, outdoor games, imaginative play and many other activities.

How do I become a day mother in South Africa?

Ways of obtaining a day-care license South Africa. Pass a Home Inspection. Complete First Aid and CPR Training. Career Advancement. It may take up to three months for your registration certificate to be issued.

How many kids are in the after school club?

We recommend that out of school clubs continue to operate at a ratio of around 1:8 for children up to the age of eight. We recommend a ratio of around 1:10 for children over the age of eight.

Can schools make a profit from after school clubs in South Africa?

How much do nannies get paid in South Africa?

In South Africa, the minimum wage for a nanny is now R15 per hour, so a nanny that works a full 45-hour week will earn just under R675 minimally per week. This is, of course, minimum pay according to the law.

How much does aftercare cost in South Africa?

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• May 10, 2024   •   27:42 Stormy Daniels Takes the Stand
• May 9, 2024   •   34:42 One Strongman, One Billion Voters, and the Future of India
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• May 1, 2024   •   35:16 The New Abortion Fight Before the Supreme Court
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• April 29, 2024   •   47:53 Trump 2.0: What a Second Trump Presidency Would Bring
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Stormy Daniels Takes the Stand

The porn star testified for eight hours at donald trump’s hush-money trial. this is how it went..

Hosted by Michael Barbaro

Featuring Jonah E. Bromwich

Produced by Olivia Natt and Michael Simon Johnson

Edited by Lexie Diao

With Paige Cowett

Original music by Will Reid and Marion Lozano

Engineered by Alyssa Moxley

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music | YouTube

This episode contains descriptions of an alleged sexual liaison.

What happened when Stormy Daniels took the stand for eight hours in the first criminal trial of former President Donald J. Trump?

Jonah Bromwich, one of the lead reporters covering the trial for The Times, was in the room.

On today’s episode

Jonah E. Bromwich , who covers criminal justice in New York for The New York Times.

Background reading

In a second day of cross-examination, Stormy Daniels resisted the implication she had tried to shake down Donald J. Trump by selling her story of a sexual liaison.

Here are six takeaways from Ms. Daniels’s earlier testimony.

There are a lot of ways to listen to The Daily. Here’s how.

We aim to make transcripts available the next workday after an episode’s publication. You can find them at the top of the page.

The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Jonah E. Bromwich covers criminal justice in New York, with a focus on the Manhattan district attorney’s office and state criminal courts in Manhattan. More about Jonah E. Bromwich

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Politics latest: Keir Starmer accused of 'rank hypocrisy' by Rishi Sunak after setting out what he'll do to tackle small boat crossings

Labour leader Sir Keir Starmer lays out his party's plans to try and tackle small boat crossings if it wins power. Listen to the latest episode of the Electoral Dysfunction podcast as you scroll.

Friday 10 May 2024 18:30, UK

• Starmer says small boat crossings 'one of the greatest challenges we face'
• Explained: What's in Labour's plan to try and tackle problem
• Darren McCaffrey: Will Labour's plan cut it with voters?
• Starmer says no flights to Rwanda will take off under Labour
• Sunak accuses Starmer of 'rank hypocrisy'
• Electoral Dysfunction:  Jess Phillips says Elphicke defection like 'being punched in gut'
• UK exits recession | Economy 'returning to full health'
• Faultlines:   Can British farming survive?
• Live reporting by Tim Baker

Across the UK, anger is brewing amongst some farmers.  

Protests have already been held in London, Dover and Cardiff, with more planned - mirroring similar tensions seen across Europe in the last six months.     

They say they’re annoyed about cheap foreign imports and changes to subsidies forcing them to give up land in favour of environmental schemes.    

But what does this mean for the food on our table - and does British produce risk becoming a luxury product for the wealthy only?    

On the Sky News Daily , Niall Paterson is joined by West of England and Wales correspondent Dan Whitehead to find out why farmers are so concerned, and speaks to Liz Webster, the founder of Save British Farming, about why she believes eating British isn't just good for our farmers - it's good for the nation's health, too.   

In response to our report, Farming Minister Mark Spencer, said: "We firmly back our farmers. British farming is at the heart of British trade, and we put agriculture at the forefront of any deals we negotiate, prioritising new export opportunities, protecting UK food standards and removing market access barriers. 

"We've maintained the £2.4bn annual farming budget and recently set out the biggest ever package of grants which supports farmers to produce food profitably and sustainably."

The Welsh government said: "A successful future for Welsh farming should combine the best of our traditional farming alongside cutting-edge innovation and diversification. 

"It will produce the very best of Welsh food to the highest standards, while safeguarding our precious environment and addressing the urgent call of the climate and nature emergencies."

👉  Listen above then tap here to follow the Sky News Daily wherever you get your podcasts   👈

Following the defection of the Dover and Deal MP Natalie Elphicke to Labour, Beth, Ruth and Jess discuss the surprise move and whether it could have been handled differently by Sir Keir Starmer.

They also talk about Beth's interview with the former immigration minister Robert Jenrick and his warnings about Reform UK.

Plus, how significant was the defeat of former Conservative mayor of the West Midlands Andy Street? Beth and Jess were both there to tell the story.

And they answer a question on Labour and the Muslim vote, and what the party can do to restore confidence and trust.

Email Beth, Jess, and Ruth at [email protected] , post on X to @BethRigby, or send a WhatsApp voice note on 07934 200 444.     

👉 Listen above then tap here to follow Electoral Dysfunction wherever you get your podcasts 👈

In January 2023, Rishi Sunak made five promises.

Since then, he and his ministers have rarely missed an opportunity to list them. In case you haven't heard, he promised to:

• Halve inflation • Grow the economy • Reduce debt • Cut NHS waiting lists and times • Stop the boats

See below how he is doing on these goals:

The Sky News live poll tracker - collated and updated by our Data and Forensics team - aggregates various surveys to indicate how voters feel about the different political parties.

With the local elections complete, Labour is still sitting comfortably ahead, with the Tories trailing behind.

See the latest update below - and you can read more about the methodology behind the tracker  here .

Speaking to Sky political editor  Beth Rigby , Sir Keir Starmer has defended his decision to allow Tory MP Natalie Elphicke into Labour.

Ms Elphicke was on the right of the Conservative spectrum, and previously defended her sex-offender ex-husband, comments which she apologised for this week following her defection.

Addressing Tory voters, Sir Keir says he wants Labour to be a "place where they who have ambitions about their families, their communities, their country, can join and be part of what we are trying to build for their country".

Asked by Beth if he was ruthless, Sir Keir said: "Yes, I'm ruthless in trying to ensure we have a Labour government that can change this country for the better.

"Not ruthless for my own ambition, not ruthlessness particularly for the Labour Party - I'm ruthless for the country. 

"The only way we'll bring about a change in this country is if we're ruthless about winning that general election and putting in place a government of public service, that’ll be a major change.

"Politics, I believe, should be about public service, that's what I've been about all my life."

More now from political editor Beth Rigby's interview with Labour leader Sir Keir Starmer.

She reminded him that he previously ruled out doing a deal with the SNP - but has not done so for the Liberal Democrats.

Sir Keir again ruled out a coalition with the SNP - adding that he is aiming for a "majority Labour government".

He says Labour needs "to keep working hard, keep disciplined and getting our message across, which is something fundamental to me".

Pushed on his lack of ruling out a possible agreement with the Lib Dems, Sir Keir says: "I'm going for a majority.

"That's the answer I gave you a year ago. It's the same answer I'm giving you now."

Sir Keir Starmer was earlier today pushed on whether Rwanda deportation flights will take off if he was prime minister - although it was not clear if he would cancel flights which had already been organised.

Sky News understood that previously booked deportation flights to Rwanda would still go ahead if Sir Keir entered Number 10. 

But the Labour leader has now gone further.

Speaking to political editor Beth Rigby , Sir Keir has ruled out any flights taking off.

"There will be no flights scheduled or taking off after general election if Labour wins that general election," he says.

He says: "Every flight that takes off carries with it a cheque to the Rwanda government. 

"So I want to scrap the scheme - so that means the flights won't be going."

Sir Keir says he would rather spend the money on his own measures to counter small boats.

"No flights, no Rwanda scheme. It's a gimmick," he says.

By Alix Culbertson , political reporter

Scotland's new first minister has told Sky News that the controversial gender recognition reforms "cannot be implemented."

John Swinney,  who became first minister this week , has faced questions over his stance on gender recognition after MSPs voted in 2022 to pass a bill to make it simpler for people to change their gender without having to obtain a medical diagnosis.

The UK government blocked the bill from being made into law and the Supreme Court rejected a request by the Scottish government for a judicial review.

Asked if he would be fighting to push the bill through, Mr Swinney told Sky News: "The reality of the situation we face is that the Supreme Court has said that we can't legislate in that area. We can't take forward that legislation."

The UK economy is no longer in recession, according to official figures.

Gross domestic product (GDP) grew by a better-than-expected 0.6% between January and March, the Office for National Statistics (ONS) said.

Economists had predicted the figure would be 0.4%.

Prime Minister Rishi Sunak said it showed the economy had "turned a corner".

He told Sky News's Ed Conway: "I am pleased that while there's more work to do, today's figures show that the economy now has real momentum, and I'm confident that with time, people will start to feel the benefits of that.

"We've had multiple months now where wages are rising, energy bills have fallen, mortgage rates are down and taxes are being cut... I'm pleased with the progress that we're making."

Mr Sunak added: "I am confident the economy is getting healthier every week."

You can read more here:

Rishi Sunak has criticised Sir Keir Starmer's position on Rwanda as "rank hypocrisy".

Speaking to broadcasters, the prime minister says the Labour leader has announced things the government is "already doing".

He gives the example of "punching through the backlog, having more law enforcement officers do more, that's all happening already".

"We've announced all of that more than a year ago," the prime minister adds.

"The question for Keir Starmer if he cares so much about that, why did he vote against the new laws that we passed to give our law enforcement officers new powers? 

"They've now used those to arrest almost 8,000 people connected with illegal migration, sentenced them to hundreds of years in prison.

"And if it was up to him, all those people would be out on our streets, so I think it's rank hypocrisy property of his position."

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