One of the many things you need to do when you plan to start a child care service is craft your business plan. Keep in mind that original business plans are not absolutely necessary but they should be well thought through and planned. Even though there is no absolute format, you will still want to follow some rules when coming up with this plan. To make sure you don’t put anything in the wrong place, make sure to check out our article on what goes into a business plan.
The business plan for child care guide is a written tool that lets you clarify your objectives as a business owner, develop the different strategies you will use to achieve these objectives and identify the pitfalls you might encounter during the process. Here are some points that describe the importance of having a business plan for your child care center:
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Business plan for child care
LAYERS is a new concept in preschool education. We provide early childhood education and care for children aged 0 to 5 years old. Our programs are designed to meet the individual needs of each child and focus on developing the whole child: physical, social, emotional and cognitive skills. Our goal is to support parents by providing them with access to the highest quality of care for their children so that they can focus on their careers and spend quality time with their families.
Our plan will be implemented over the next three years, with the first year being an incubator year where we will determine if our business model is viable, as well as test different marketing strategies and refine our curriculum. In year two we will begin operating at full capacity with one location and expand into a second location in year three.
We have identified five key stakeholders who will benefit from our services: 1) Parents; 2) Teachers; 3) Community; 4) Financial Investors; 5) Government Agencies
The key benefits of our product include: 1) high quality early childhood education that prepares children for school success; 2) convenient access to affordable daycare services; 3) engaging activities that keep kids active while promoting learning through play
Executive Summary
The purpose of this business plan is to provide a detailed analysis of the market opportunity, including a description of the company, its resources, its current operations, and its planned growth. The business plan also includes a financial section that provides a summary of the company’s projected performance and other key information.
The business plan is divided into three parts:
1) Company Overview – Describes the company’s history, mission statement, objectives and goals.
2) Market Analysis – Analyzes the market for child care services in your community. Identifies customer needs and requirements for child care services. Also analyzes competition in your community.
3) Financial Projections – Provides financial projections for your company over three years (or longer)
Executive Summary
In the United States, the need for child care is growing. The American Academy of Pediatrics (AAP) estimates that 15 million children are in need of care in a given week. This number is expected to increase by 400 percent by 2025 due to the increasing number of children being born as well as an aging population. In addition, more women are choosing to work outside of the home and need reliable child care options.
The U.S. Department of Health and Human Services reports that there are approximately 7,000 child care centers operating in Los Angeles County alone, with over 200,000 slots available each year. The cost per slot ranges from $10,000-$30,000 annually depending upon location and quality of care provided at each facility. The average annual salary for a preschool teacher is $23,850 which means many parents cannot afford private sector child care services without subsidies through government programs such as Head Start or Early Head Start Programs.
As a result, parents are seeking out alternative forms of child care such as nannies or group day cares where they pay less than traditional day cares but still have access to certified teachers in a safe environment where they can learn social skills and develop cognitive abilities through play-based learning activities
Budget for Daycare Business Plan
The following is a budget for daycare business plan. This information is based on a small, local center that does not offer after-school care or summer camp. It is intended as a guide for estimating operating expenses and revenues.
This budget is designed to be used as part of an overall business plan for starting your own child care facility. It includes both the startup costs and ongoing expenses necessary to run a successful child care center.
Startup costs: $15,000-$20,000
Starting a child care business requires startup costs that include equipment, furniture and supplies. These items can cost anywhere from $15,000-$20,000 for a small facility in an urban area to $25,000-$35,000 for a large facility in an affluent suburban neighborhood or rural area. These estimates do not include real estate costs associated with purchasing an existing building or land.
Budget for Child Care Business Plan
The following is a breakdown of the estimated start-up costs for a child care business:
Pre-Opening Costs ($2,000-$5,000)
Business license fee (varies by city)
Insurance (varies)
Child care training classes or certification courses (varies)
Licensing fees (varies)
Startup inventory (examples: paper products, diapers, baby food, toys, books) ($500-$800)**
Post-Opening Costs (Expected to be Varying and Ongoing)**1. Child care training classes or certification courses (continuing education is required in order to maintain your license)**2. Insurance premiums*3. Human resources expenses*4. Payroll taxes*5. Marketing expenses**6. General office supplies*7. Maintenance and repair expenses**8. Utilities*9. Utilities for equipment such as cribs, high chairs, playpens**10. Rental space or building maintenance fees
A child care business plan is a standard part of the process for starting a new business. It is a written plan that outlines the purpose, mission and goals of your business, as well as how you plan to achieve them. A good business plan will also include information about your target market, competition and financial projections.
Child Care Business Plan Sample
The following sample child care business plan provides an overview of how to structure your own plan. The sample has been sectioned into 12 main areas, which are explained in more detail below:
Executive Summary: This section contains three subsections: Mission Statement (1st sentence), Company Description (3rd paragraph) and Company Objectives (5th paragraph). To ensure that the reader understands the goals of your company, it is important that each one be clearly stated here. For example, if you are looking for investors or partners in order to expand your business, this should be stated here. If you have multiple objectives for your business then this should be stated here as well.
Target Market: This section contains two subsections: Target Market Description (1st paragraph) and Target Market Segments (2nd paragraph). It is important that you research potential customers in order to determine their needs and wants before developing a
1.0 Executive Summary
Child care is a growing industry that offers many opportunities for entrepreneurs with the right business plan. With the increased number of dual-income families and single parents, there is a need for more quality child care centers in order to meet this demand. This particular business plan outlines a proposal for an upscale daycare center located in the affluent suburb of Woodland Hills, CA. The center will be operated by a team of experienced child care professionals who are committed to providing quality care for children aged 6 weeks to 12 years old. The proposed center will offer full-time, part-time and hourly care as well as drop-in services and before/after school programs that include transportation options within certain areas of Los Angeles County. This business plan provides an overview of our plans for managing this facility:
The proposed site has been selected based on its proximity to residential neighborhoods, public transportation systems and its visibility from major roads (e.g., Ventura Boulevard). An onsite playground area will be provided for outdoor play during recess periods while indoor recreational activities will take place in designated play areas throughout the facility (e.g., arts & crafts room). A conference room will be available for parent meetings as well as other special programs such as story