business plan examples for preschool

Preschool Business Plan Template

Written by Dave Lavinsky

Preschool Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their preschool companies. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a preschool business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Preschool Business Plan?

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

Why You Need a Business Plan for a Preschool

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

Sources of Funding for Preschool Businesses

With regard to funding, the main sources of funding for a preschool business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for preschool companies.

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How to write a business plan for a preschool business.

If you want to start a preschool business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your preschool business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of preschool business you are running and the status. For example, are you a startup, do you have a preschool business that you would like to grow, or are you operating a chain of preschool businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the preschool industry.
• Discuss the type of preschool business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of preschool business you are operating.

For example, you might specialize in one of the following types of preschool businesses:

• Parent co-op preschool : Preschools that offer lower-cost enrollment in exchange for the volunteer work of a parent on a regular (typically weekly) basis. This type of preschool employs a teacher and an aide, but also includes parents, which reduces the payroll costs considerably.
• Academic/play-based preschool: Preschools that stress learning via a number of experiences in academic introductions. Play-based learning is also introduced in math and pre-reading games and other forms of learning-while-you-play interactions.
• Religious preschool: Preschools that adhere to the religious practices and beliefs of the parents in teaching, while including academic and play-based experiences for preschoolers.
• Learning system preschool: Systems of specific teaching theories, such as Waldorf and Montessori, are offered at this type of preschool. These preschools are based on proven structures for learning.
• Development-interaction preschool: Preschools that offer a holistic approach to preschool, focusing on the emotional, intellectual, social and physical growth of each preschool child.

In addition to explaining the type of preschool business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of programs offered, the number of preschool graduates, reaching X number of preschool locations, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the preschool industry. While this may seem unnecessary, it serves multiple purposes.

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

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your preschool business plan:

• How big is the preschool industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your preschool business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your preschool business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: parents, grandparents, children, and churches, and schools.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of preschool business you operate. Clearly, parents would respond to different marketing promotions than churches, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

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

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Competitive Analysis

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

Direct competitors are other preschool businesses.

Indirect competitors are other options that customers have to choose for their preschoolers that aren’t directly competing with your service. This includes private tutors, public schools, nannies and babysitters. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of families do they serve?
• What type of preschool business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for translation services?
• Will you offer family-discounts that your competition doesn’t?
• Will you provide better playgrounds and amenities?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

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Marketing plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a preschool business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of preschool company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide developmental, religious, academic or play-based learning systems?

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

Place : Place refers to the site(s) of your preschool(s). Document where your company is situated and mention how the sites will impact your success. For example, is your preschool business located in a new, master-planned community, near a business district, or in a standalone building?  Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your preschool marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your preschool business, including answering calls, placing preschoolers into programs, meeting with parents, planning and providing teaching sessions, billing and collecting revenue, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to open your fifth preschool, or when you hope to reach $X in revenue. It could also be when you expect to expand your preschool business to a new community in your city.

Management Team

To demonstrate your preschool business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing preschool businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a preschool business or successfully leading as a principal of a public elementary school.

Financial Plan

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 revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you open a new preschool every two years, or offer summer school and daycare sessions? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your preschool business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a preschool business:

• Cost of classroom furniture, equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of parents who have enrolled their children on contract for the next two years, or the waitlist of parents who want their children to attend your preschool.

Writing a business plan for your preschool business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the preschool industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful preschool business.

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Other Helpful Business Plan Articles & Templates

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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Preschool Business Plan

Starting a preschool business is not for the faint of heart. Even if you love the idea of working with children, reality often differs dramatically. The stress of the actual operations is even wildly different from the stress you get just preparing everything from the ground up. To help you stay on top of everything, you need a proper preschool business plan on hand. Documents like a kindergarten  business plan , and a play school business plan, among others, will help you survive the initial onslaught of the endeavor while guiding you for months or even years to come. Scroll on to learn more and to find some of the best preschool business plan examples anywhere.

Preschool Business Plan Examples & Templates

1. preschool business plan template.

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2. Simple Preschool Business Plan

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3. Preschool Business Plan Sample in PDF

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4. Free Preschool Business Plan

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5. Preschool Business Plan Template in PDF

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6. Basic Preschool Business Plan

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The Importance of a Preschool Business Plan

Like any business, a preschool comes with numerous requirements for you to meet. You will need funding, marketing strategies, materials, and equipment . With all of those variables mixing into one big goal, you need a guide. You will need something to help attract investors if necessary. This is where a preschool business plan comes into play. Sure, you can still plan things out if you don’t have one. However, there is a detail of organization that you won’t get using anything else.

Tips for Writing a Preschool Business Plan

Those with experience in writing business plans will know all about the nuanced nature of the document. Whether you are looking to create a non profit daycare business plan or one that’s for profit, the little details and the approach are all bound to change. Rather than get a free sample school business plan, here are some tips to help you in the event that you need to write your own business plan from scratch.

Tip 1: Keep it Short

It benefits you more to keep things as short as possible. Yes, there are many aspects of the preschool business to plan for. However, your expression of those plans do not have to be overly long or complicated. Be concise with your plan and you can be guaranteed that your readers will find it much more effective.

Tip 2: Keep Your Audience in Mind

With preschools, your audience should be parents with children of a specific age range. It is important to take note of that because what you offer will center around them. Your strategies, your branding , your methods, and the rest of your plans depend on your audience. Keep them in mind when planning for greater odds of success.

Tip 3: Don’t Let Fear Hold You Back

Starting any kind of business is going to be daunting. There’s no shame in admitting that some aspects of your endeavor may feel intimidating at times. However, you can’t allow that to hold back your plans. You need to recognize your goals and objectives so that you can plan around them. Never plan around the fears that grip you.

Tip 4: Be Timely and Realistic

As much as we like to say that you should shoot for the stars, it would be bad advice to leave all pragmatism behind. Your goals and objectives need to be firmly rooted in reality. Don’t let fear hold you back, but at the same time, you must acknowledge where your capabilities remain. Once you learn that, be sure to set a timeline for yourself. That way, you can ensure greater productivity.

What are the six components of a business plan?

First, there is the executive summary , followed by sections that dictate the opportunity and the execution. From there, you have the company and management, the financial plan, and lastly, the appendix.

Is it acceptable to have a professional write your business plan for you?

If writing a preschool business plan is too much for you, or if you lack the time, then you can always recruit a business consultant to help you with it.

How long should my business plan be?

The proper answer for that is as long as you need it to be. It does not have a required number of pages, as long as everything necessary for the execution of your startup is included and explored adequately.

Learning about how to write a proposal for a daycare center or finding the best preschool business plan ppt templates are among the things anybody should do before anything else. By researching the best methods of moving forward, you can avoid the pitfalls and accomplish your desired goals sooner than anticipated. Having learned as much as you can from this article, you may take your new knowledge and apply it when you decide that starting a preschool is your calling. Just remember to choose wisely and act boldly when that time comes!

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How to Write a Preschool Business Plan

Are you thinking about starting your own preschool? If so, it’s crucial to create a plan before you open your school. There are many factors that go into running a successful preschool. Your plan’s action items will depend on the specifics of your vision for your business.

In this blog post, we’ll discuss the steps that go into writing a comprehensive business plan for a preschool business. We’ll outline the essential components of a solid business plan. And we’ll also provide some helpful tips so you can write your own!

Ask yourself: What will the purpose of your preschool be?

One of the first steps of outlining your preschool business plan is determining your preschool’s purpose. Creating your mission statement will help guide you through all aspects of running your preschool. It ensures that your mission’s intended purpose is aligned with your vision.

There are a number of different types of preschools out there. Whether you’re looking to create an inclusive school environment or you intend to open an all-day preschool that caters to children who have autism or other special needs, it’s important to identify what type of preschool you intend to run before moving forward.

Determine the costs & revenue for your business plan

The next step in writing your preschool’s business plan is to determine the cost of starting your preschool. This includes the most common expenses. For example, monthly rent or mortgage payments, equipment and furniture, registration fees, and advertising/marketing materials (like flyers or brochures).

All of these expenses add up fast! You’ll want to do some research into the tuition prices of similar schools in your area. This will not only give you a helpful benchmark but can also give you a competitive edge as well.

Additionally, it’s essential to consider potential preschool or daycare business tax deductions for your center. Many expenses related to running a preschool, such as supplies, food, utilities, and even a portion of your home if you’re operating from there, may be tax-deductible. Understanding these deductions can significantly impact your overall financial planning and profitability.

Examine your market needs

Next, you’ll want to examine your market. This includes looking at the size of your target demographic and who they are. It also includes children’s age range and where your prospective families live in relation to where you plan to open up shop.

You’ll also need to develop a  grasp of the types of families that might be interested in enrolling their children at your school so that you can tailor your marketing materials specific to them.

If you don’t complete this step first, it will be hard to know how much time or money you’ll need to allocate toward advertising or how to determine your school’s enrollment fees. No preschool business plan is complete without this very important step!

Establish policies and procedures

Your next step in outlining your preschool business plan is establishing the policies and procedures you plan to implement. The best way to communicate your policies and procedures to new families and employees is through handbooks.

For employees, you need to ensure that you include information in your handbook about policies and procedures for requesting time-off, reporting children’s absences, your dress code if applicable, and more!

For new families, their handbook should include information about the registration process, pick-up and drop-off times, student attendance policies, and whom to contact if there is a problem with your services or facilities, for example. All of these little things go a long way with new parents and employees.

Promote your new preschool

Nowadays, most businesses have a website so people can find information including that business’s location, contact details, and what types of services they provide. Preschools are no exception. Make sure that when you set up your website , it is user-friendly, loads quickly, and reflects your preschool’s core values.

Not only does a stellar website legitimize your preschool in the eyes of prospective parents, but it also acts as a hub for all of the other channels to which you need to promote your preschool… which brings us to our next mode of promotion: social media!

If your social media presence is lacking (or even worse, nonexistent), you are almost guaranteed to be missing out on reaching an entire audience of prospective families in your area. We recommend you start by establishing pages on platforms like Facebook and Instagram.

Make sure that you post regularly (about three to five times per week), and ensure that your content is consistent across the board. With the availability of new automation tools that can help you schedule your posts, not having enough time is no longer an excuse!

While online marketing initiatives make it easier to measure your results, it’s also wise to incorporate some more traditional marketing methods as well. Hanging flyers at local businesses and organizations is an easy, low-cost way to get the word out about your school.

Once you start gaining enrollments, you can even offer parents incentives if they make referrals to their friends and family!

Conclusion:

Your preschool business plan needs to be clearly outlined before you open your doors. This will ensure that everything goes as smoothly as possible, in both the short-term and long-term. You’ll need to make decisions regarding costs, operating policies, and procedures, examine your market needs, and develop an effective promotion strategy for attracting families.

From there, your main focus will be driving and retaining enrollments so that your preschool can thrive!

Are you thinking about opening your own preschool? Contact No Joke Childcare today for a free consultation!

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Home » Sample Business Plans » Education » School

How to Write a Preschool Business Plan [Sample Template]

Do you want to start a preschool and need to write a plan? If YES, here is a complete sample preschool business plan template & FREE feasibility report. There are various business ideas that you may want to start.

However there are some businesses that guarantee good returns on investment. Chief amongst it is the preschool business. One of the reasons why this business is good is the point that you are able to help mound lives whilst you are making good money.

Why Start a Preschool?

Running a preschool can be a very rewarding and profitable venture. An entrepreneur who is interested in children education and also having a business might find that opening a preschool would meet both desires. Before starting a preschool, one must be prepared by ensuring that they carefully plan out the venture from the beginning, by researching on local and state laws that govern pre – school education business.

What Does It Take to Start a Preschool Successfully?

There must also be planning as regards space, getting insurance, developing a curriculum, hiring additional staff, advertising and registration of children. A pre – school program is a business that requires that no details be overlooked.

The first thing that needs to be done before starting out is in contacting the local governing body of child care for relevant information regarding the opening of a preschool. When approaching the governing agency, ask to meet with the administrators, so as to discuss your business idea, and get information on how to become a licensed preschool program provider.

After gathering all the information that you would need including written literature, you would need to contact the local government as regards getting a license to start. Depending on the state you will be operating in, you might be required to register and pay a fee to obtain licensees.

You will also need to ensure that the property you intend to use as a facility is in an acceptable area from which the business can be started, even if it is a section of your own residence, this can be done by contacting the zoning department of your local government, and if the area you choose is not suitable, you will be advised on suitable areas.

After applying for a business license as required by the state and meeting any other special requirements needed in order to become a preschool, you should then consult with insurance agencies regarding the right coverage for your facility. Ensure you choose a plan that will adequately cover you, your clients, as well as your business.

Lastly, ensure that you prepare your location for safety inspections, while ensuring that your facility has emergency evacuation plan in place for any unforeseen circumstances or disasters. Also prepare a curriculum for your pre – school program.

You can either choose an established program from a particular publisher or choose various materials from several publishers, while not forgetting that you have an option of creating your own curriculum. Do not also forget to hire qualified staff after running background checks, and marketing your school.

A Sample Preschool Business Plan Template

1. industry overview.

The Preschool industry operators provide day care services for children under the ages of three and four to prepare them for kindergarten.

The dispersion of the preschool programs reflects in the geographic distribution of the children, which is also influenced by the cost and supply of pre – school programs, income and housing affordability patterns, labor, and child care subsidy policies. Also, varying state and local regulations and licensing requirements affect employment in this industry.

According to research and statistics, this industry generates $53 billion annually, and is projected to have an annual growth rate of 2.5% by 2016. The number of business in this industry amounts to 768,021, employing 1,664,311 people.

There are about 53,000 commercial facilities, plus about 21,000 facilities run by non-profit organizations. The industry is highly fragmented as the top 50 companies generate less than 20% of revenue for the entire industry.

Preschool programs became popular especially as more percentage of women in the workforce grew by nearly 71% in 2007. According to the Bureau of Labor Statistics (BLS), 28% of mothers with young children worked in 1975, which has more than doubled by 60% by 2013.

Over the same period, employees in the daycare industry increased by nearly 250%. The bureau also noted that investment in childcare by non-profit and government agencies, as well as new tax credits, also helped to fuel the industry’s growth.

According to the Child Care Aware group, about 11 million children under the ages of 5, spend an average of 35 hours a week in childcare. Infants in center-based care had an average annual cost that ranged from $5,496 in Mississippi to $16,549 in Massachusetts; 4 year olds had care in a center ranging from $4,515 in Tennessee to $12,320 in Massachusetts; with the quality of care and degree of regulation varying widely.

Also, childcare workers were seen to be paid the lowest wages in any professional field, $21,490 on average. However, the recovery of the economy is already impacting greatly on the preschool market.

Parents and especially mothers are going back to work, thereby causing the demand for preschools and preschool services to grow. This means that disposable income will increase which will let parents especially women put more resources towards child care like the high value early educational programs.

Even though this might seem like a saturated field, it isn’t, as there is always a constant demand for parents to prepare their children for proper schooling. The incentives in venturing into or starting a pre – school are having an impact on toddlers who are struggling academically and getting them engaged so that their parents will carry out their businesses or other activities.

2. Executive Summary

Future Stars® Pre – School is a standard and well – equipped pre – school that will be located in a well – populated residential estate in Ashville – North Carolina, united states of America. We are a preschool that provide day care services for children under the ages of three and four to prepare them for kindergarten.

Aside from the fact that we will operate a preschool center, we will also engage in home tutoring – we will go to the homes of our students as demanded by their parents.

Future Stars® Preschool is a client-focused and result driven preschool that provides day care services and broad-based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients (parents).

We will offer a standard and professional pre – school daycare and teaching services designed for toddlers in a highly secured, neat and conducive learning environment. We will ensure that we work hard to meet and surpass all our parents’ expectations and educational goals whenever they enroll their kids in our pre – school.

At Future Stars® Preschool, our kids’ and their parents’ overall best interest would always come first, and everything we do is guided by our values and professional ethics.

We will ensure that we hire professional educationist and care – giver who are well trained to handle kids that are of pre – school age in various kids development learning areas who are well experienced and passionate in imparting knowledge to toddlers at various learning ladder (potty training, rhymes, walking, dancing and talking et al).

Future Stars® Preschool will at all times demonstrate her commitment to sustainability, both individually and as an educational organization, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our clients’ (parents) needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our students.

Our overall business goal is to position Future Stars® Pre – School to become the leading Pre – School brand in the educational industry in the whole of Ashville – North Carolina, and also to be amongst the top 50 pre – schools in the united states of America within the first 10 years of operations.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are enthusiastic and confident that Ashville – North Carolina is the right place to launch our pre – school; they have the right demographic composition that can support and sustain our business model.

Future Stars® Preschool is founded by Mrs. Clara Jake – MacPherson. She has a Degree in Education with bias in children education and she has well over 16 years of experience in the educational industry in the United States of America. She will be bringing in her wealth of experience to help build Future Stars® Pre – School to enviable heights.

3. Our Products and Services

The Future Stars® Preschool is going to offer daycare services within the scope of the education board in the United States of America. Our intention of starting our pre – school is to soundly prepare toddlers who are under the ages of three and four for kindergarten and of course to make profits from the education industry and we will do all that is permitted by the law in the US to achieve our aim and business goal.

Our service offerings are listed below;

• Provide daycare services for children under the ages of three and four to prepare them for kindergarten.
• Running a Standard and licensed Daycare Center
• Offering Home Tutor Services for toddlers as requested by their parents
• Retailing of Kids Educational Books and Materials

4. Our Mission and Vision Statement

• Our vision is to build a highly competitive pre – school / daycare center that will become the number one choice for parents in the whole of Ashville – North Carolina.
• Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission is to provide professional, safe and conducive daycare and learning environment to toddlers.
• Our overall business goal is to position our tutorial college to become the leading pre -school brand in the educational industry in the whole of Ashville – North Carolina, and also to be amongst the top 50 preschools / daycare center in the United States of America within the first 10 years of operations.

Our Business Structure

Future Stars® Pre – School will build a solid business structure that can support the growth of our pre – school. We will ensure that we hire competent hands to help us build the business of our dream. The fact that we want to become the leading pre – school / daycare brand in the educational industry in the whole of Ashville – North Carolina makes it highly necessary to deliberately build a well – structured business from the onset.

At Future Stars® Preschool we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our long serving senior staff members and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Head of The Pre – School (Daycare) / School Coordinator

School Administrator

• Tutors for Various Learning Areas
• Nannies / Caregivers / Aux Nurse

Marketing and Sales Executive

Accountant / Bursar

• Client Service Executive / Front Desk Officer
• Security Officer

5. Job Roles and Responsibilities

Head of the Pre – School / School Coordinator:

• Responsible for providing direction for the pre – school / daycare center
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for handling high profile clients and deals
• Responsible for fixing fees and signing business deals (partnership)
• Responsible for signing checks and documents on behalf of the tutorial college
• Coordinates all arms of the pre – school
• Evaluates the success of the pre – school / daycare center
• Reports to the board of the pre – school / daycare center
• Responsible for overseeing the smooth running of HR and administrative tasks for the pre – school
• Design job descriptions with KPI to drive performance management for all staff members
• Regularly hold meetings with key stakeholders (parents and member of the school board) to review the effectiveness of the schools’ Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversee the smooth running of the daily activities of the tutorial college.

Tutors for Various Learning Areas for Toddlers

• Effectively teach subject / subjects as assigned by the school coordinator
• Access the progress of kids under their care
• Ensure that kids participate in learning activities such as potty trainings, rhymes and dancing et al
• Contributes his / her quota towards growing the pre – school
• Receives complaints from parents and channel it to the appropriate quarters
• Handle any other duty as assigned by the school coordinator.

Nannies / Caregivers / Aux Nurses

• Responsible for changing diapers for kids and cleaning them up when they messed up themselves
• Responsible for feeding toddlers
• Ensures that toddlers sleep as at when due and help calm them when they are crying
• Goes the extra mile to ensure that toddles are comfortable and well taken care of.
• Contributes his / her quota towards growing the pre – school / daycare center
• Handles any other duty as assigned by the school coordinator.
• Identifies, prioritizes, and reaches out to new parents, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represents the company in strategic meetings
• Help increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the tutorial college
• Serves as internal auditor for the tutorial college

Client Service Executive

• Welcomes toddlers and their parents by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with parents (e-mail, walk-In center, SMS or phone) provides them with a personalized customer service experience of the highest level
• Through interaction with parents on the phone, uses every opportunity to build their interest in the school’s products and services
• Manages administrative duties assigned by the school coordinator in an effective and timely manner
• Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries
• Receives parcels / documents for the Pre – school
• Handles any other duties as assigned by the school authority
• Maintain a clean daycare facility by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
• Ensures that toiletries and supplies don’t run out of stock
• Responsible for handling laundry

Security Officers

• Ensure that the daycare facility is secured at all time
• Control traffic and organize parking
• Give security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submit security reports weekly
• Any other duty as assigned by the school coordinator.

6. SWOT Analysis

Future Stars® Pre – School engaged the services of a core professional in the area of business consulting and structuring to assist our pre – school in building a well – structured educational business that can favorably compete in the highly competitive education industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Future Stars® Pre – School. Here is a summary from the result of the SWOT analysis that was conducted on behalf of The Future Stars® Pre – School;

Our core strength lies in the power of our team; our workforce. We have a team that has the right passion and drive for taking care of toddlers, a team with excellent qualifications and experience in daycare / pre – school education. We are well positioned in a community with the right demographic composition and we know we will attract loads of parents who would want to enroll their kids from the first day we open our doors for daycare services.

As a new pre – school / daycare center in Ashville – North Carolina, it might take some time for our organization to break into the market and gain acceptance in the already saturated pre – school / education industry; that is perhaps our major weakness. Also we might not have the required money to pump into advertising and promoting our brand the way we would want to.

• Opportunities:

The opportunities in the pre – school / education industry is massive considering the number of parents who would want their kids under school age to be in safe place and to get them prepared for kindergarten. As a standard, safe and highly comfortable daycare center, we are ready to take advantage of any opportunity that comes our way.

Every business faces a threats or challenges at any part of the life cycle of the business. These threats can be external or internal. This shows the importance of a business plan, because most threats or challenges are to be anticipated and plans put in place to cushion what effect they might bring to the pre – school.

Some of the threats that we are likely going to face as a pre – school operating in the United States of America are unfavorable government policies that might affect daycare centers, the arrival of a competitor within our location of operations and global economic downturn which usually affects spending / purchasing power. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

• Market Trends

The trend in the pre – school / daycare center line of business is that the keys to attracting parents to enroll their wards is the safety, cleanliness, location and of course the overall comfort of their toddlers.

The trend in the daycare center industry is such that players in this industry can now comfortably start their daycare business in an business district; a place where it is easier for working class parents to take advantage of their launch breaks and even tea breaks to dash down to breast – feed and cuddle their children before dashing back to work.

The demand for pre – schools is driven by the fact that most parents work or are engaged in businesses that takes them away from their kids that are under school age and one of the options left is to enroll such kid in a daycare center.

The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of early education. The areas you would need to spend heavily on is in ensuring that your school is up to standard, is the facility, your advertisements, and insurance.

8. Our Target Market

As a standard preschool / daycare center, Future Stars® Pre – School offers a wide range of pre – school services hence we are well trained and equipped to services a wide range of kids are different growth level irrespective of any challenges et al.

Our target market as a preschool / daycare center cuts across parents with kids under school age of different class and people from all walks of life.

We are coming into the pre – school / education industry with a business concept that will enable us work with the toddlers at different learning stages. Below is a list of the parents / toddlers that we have specifically design our pre – school services for;

• Working class parents with toddlers under school age
• Parents with toddlers under school age who run their own business and are too busy to take care of their wards during business hours

Our Competitive Advantage

This field is a highly intense one because of the level of quality service offerings by the pre – schools, who are more pressured to deliver better services. Due to this pressure, there is a jostling amongst the different pre – schools to get more parents to enroll their toddlers in their daycare center, thereby increasing their earnings as well.

We are quite aware that to be highly competitive in the preschool / education industry means that you should be able to deliver consistent quality service, parents should be able to experience remarkable difference and improvement in their toddlers and you should be able to meet the expectations of the educational governing board in the United States of America.

Our competitive advantage lies in the power of our team; our workforce. We have a team that has the right passion and drive for taking care of toddlers, a team with excellent qualifications and experience in daycare / preschool education. We are well positioned in a community with the right demographic composition and we know we will attract loads of parents who would want to enroll their kids from the first day we open our doors for daycare services.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups pre – school / daycare center in the United States) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Future Stars® Preschool is established with the aim of maximizing profits in the preschool / education industry and we are going to go all the way to ensure that we do all it takes to attract parents on a regular basis.  Future Stars® Preschool will generate income by offering the following services;

10. Sales Forecast

One thing is certain; there would always be parents who may want their kids under school age to be in safe place and to get them prepared for kindergarten. As a standard, safe and highly comfortable daycare center, we are ready to take advantage of any opportunity that comes our way.

We are well positioned to take on the available market in Ashville – North Carolina and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the pre – school and our student base.

We have been able to critically examine the preschool / daycare center market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Ashville – North Carolina.

Below is the sales projection for Future Stars® Pre – School, it is based on the location of our daycare center and of course the wide range of pre – school services that we will be offering;

• First Year-: $75,000
• Second Year-: $150,000
• Third Year-: $350,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. So, there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there is stiffer competition amongst pre – schools / daycare centers in the United States of America hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Future Stars® Pre – School. We want to build a standard and first – class pre – school / daycare center that will leverage on word of mouth advertisement from satisfied parents

Our goal is to grow our preschool to become one of the top 50 pre – schools / daycare center in the United States of America which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in Ashville – North Carolina but also in other cities in the United States of America.

Future Stars® Pre – School is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our pre – school / daycare center by sending introductory letters alongside our brochure to parents / household and key stake holders in Ashville – North Carolina.
• Print out fliers and business cards and strategically drop them in religious centers, libraries and public facilities.
• Use friends and family to spread word about your pre – school / daycare center
• Post information about our pre – school / daycare center on bulletin boards in places like churches, maternity clinics, parks, libraries, and local coffee shops et al
• Place a small or classified advertisement in the newspaper, or local publication about our pre – school / daycare center
• Leverage on referral networks such as agencies that will help match parents with toddlers under school age with our pre – school/ daycare center.
• Join relevant association or body that will enable you network and meet others in same industry.
• Advertising online by using an advertising platform such as Google Adwords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
• Advertise our pre – school in relevant educational magazines, newspapers, TV stations, and radio station.
• Attend relevant educational expos, seminars, and business fairs et al
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied parents

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both parents and students in the whole of Ashville – North Carolina which is why we have made provisions for effective publicity and advertisement of our pre – school / daycare center.

Below are the platforms we intend to leverage on to promote and advertise Future Stars® Pre – School;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around Ashville – North Carolina.
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations by calling them up and informing them of our pre – school / daycare center, and the advantage we over the others.
• Passing general information via our social media handles like twitter, Facebook, Google hangouts etc.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.

12. Our Pricing Strategy

Generally for pre – school and daycare services flat fees on a weekly or monthly basis is what is obtainable. As a result of this, Future Stars® Pre – School will charge our parents who enrolled their toddlers in our daycare center flat fees except for few occasions where there will be need for us to charge special students on hourly basis.

At Future Stars® Pre – School we will keep our fees below the average market rate for all of our students by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals.

We are aware that there are some kids that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such kids’ needs.

• Payment Options

At Future Stars® Pre – School, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up a pre – school business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a higher amount of capital as you would need to ensure that your employees are well taken care of, and that your pre – school’s environment is conducive enough to keep kids.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a pre – school business; it might differ in other countries due to the value of their money. However, this is what it would cost us in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring a facility / property that will accommodate the number of kids that we want to take care of for at least 6 months (Re – Construction of the facility inclusive) will cost – $35,000.
• Equipping the office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
• The budget for paying staff members and utility bills for at least 3 months – $70,000
• The budget for start – up inventories (toiletries, toys, cots, and mats et al) – $2,500
• Launching an official Website will cost – $500
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand (250,000) U.S. dollars to successfully set – up a medium scale but standard and well equipped pre – school / daycare center in the United States of America.

Generating Funding / Startup Capital for Future Stars® Pre – School

Future Stars® Pre – School is a private business that will be owned by Mrs. Clara Jake – McPherson and family. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to offer a wide range of tutorial services and other related services to high school students, students with disabilities and elderly students (adult education).

We know that if we continue to deliver excellent daycare services, there will be steady flow of income for the organization. Our key sustainability and expansion strategy is to ensure that we only hire competent and selfless staff members, create a conducive working environment and employee benefits for our staff members.

In the nearest future, we will explore the options of either selling out franchise or expanding our scope beyond Ashville – North Carolina to other major cities in the United States of America. We know that if we implement our business strategies, we will achieve our business goals and objectives in record time.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the start – up capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Pre – Schools’ Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Pre – School: In Progress
• Creating Awareness for the pre – school in Ashville – North Carolina: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the education industry: In Progress

More on School

Child Care Director Resources How to Make a Preschool Business Plan

How to Make a Preschool Business Plan

11th August 2020

An important early step for starting any new business is to make your business plan. Starting a preschool is no different! What expenses do you need to take into consideration? How can you think about setting your pricing? What ages should you take? What hours should you operate? Here’s how to think through each of these decisions to form your preschool business plan.

Preschool Business Plan Basics: Wonderschool’s Iron Triangle of ECE Finance

Before you think through specific business decisions you’ll need to make, it’s important to understand what you’re striving for. Meet the iron triangle. For a preschool business to be financially stable, the iron triangle must be met:

• Full enrollment: ensure that all of your spaces are full.
• Full fee collection: ensure that you are collecting all of your tuition and on time.
• Revenue covers real cost-per-child: you need to ensure you are priced in such a way that your revenue is truly covering the cost of caring for each child.

Important Business-Related Decisions You’ll Need to Make

Type of license: Most states have at least two options for in-home child care licenses . Often there’s a “small” license and a “large” license, with a large license allowing you to have more children. If you’re just getting started you’ll have to choose which type of license you want. There are usually different requirements for each. For example, in California, to obtain a large license for up to 14 children, your home must meet certain fire safety requirements like number of exits and you need to have previous experience working in a licensed child care program.

One thing to keep in mind is that just because you have a license for a certain number of children, does not mean that you need to fill all of those spots. If you qualify for a larger license, you can get it and still only serve 6-8 children if you so choose.

Regardless of what you choose to do, you’ll want to make sure you understand the details of your particular license. How many children can you have at one time? What ratio of staff to children are you required to maintain?

Hours of operation: Do you plan to run a full day program? Or a half-day program? Will you operate a more “normal” school day schedule and offer before and after care for an extra fee?

Families need all sorts of care options. Think about your immediate community when thinking about your hours of operation. If you have a lot of stay at home parents, a part-day program might be perfect. If you have a lot of dual-earning parents who commute a long distance to get to their workplaces, you might need to offer extended hours.

Keep in mind that what you decide on initially does not have to be set in stone. You can always change it later, if needed. You’ll know if you’re not offering a good match for what the families in your community need if you’re not getting much interest, or if families aren’t enrolling once they tour.

Schedules you’ll offer: Related to your hours of operation, you’ll need to think about what schedules you’ll make available. Will you allow parents to enroll part time? Or do you only want full time enrollments? If you have part time schedules available, what does that look like? Is it Monday, Wednesday, Friday? Or is it half days?

Keep in mind that you can charge a higher rate for part time spots because it can be very hard to fill the alternative spots, plus the added paperwork for you. That said, not everyone wants to offer part time care.

Ages you’ll enroll: Deciding who you’ll enroll will depend on your comfort and background. If you have a lot of experience caring for and educating a specific age group, that might be your starting point. Most in-home programs serve a variety of ages, so even if your experience is with preschoolers, you may want to consider branching out from that. If your goal is to fill up quickly, infant care might be your ideal starting place, because that is an age group that is in constant high demand.

The ages you enroll will also dictate what you can charge. Because of the lower ratios required for infant care, you can charge more for infants. Often programs have separate pricing for children under 2 and children over 2.

Meals or other things you’ll offer: Will you provide snacks or meals? Or will you ask parents to provide those every day? Will you hire a yoga teacher to come once a week? Will you provide diapers, or will parents provide diapers? These are all expenses you’ll need to account for in your tuition pricing. Remember that one part of the iron triangle is ensuring your pricing covers the actual cost of care per child. These expenses should be taken into account.

Your plan for hiring staff: You may not need to hire staff until your enrollments surpass a certain number. Determine what that number is for you– do you feel comfortable caring for three children alone, but not four? Decide at what point you’ll hire help, and how many hours you intend for them to work. Will you have a full time assistant? Or two part time assistants?

Decide on how many hours per week you will need to pay your staff, and then determine what you can afford to pay them. Researching on Indeed can be a great way to get a sense of pay scale for assistant teachers in your area. Keep in mind that paying a higher amount will likely yield more higher quality and more reliable candidates. If you’re priced too low you either won’t find anyone, or will have to deal with increased staff turnover.

Your vacation policy: You’ll want to think through your vacation policy, both for time you take off, and for time your families take off. Will parents need to pay while they’re on vacation? Or will you give them a discount? Will parents need to pay while you’re on vacation? Or will you give them a discount? There are pros and cons however you do it, but you’ll want to think this through and include your policy in your parent handbook so the expectations are set from the start. However you structure it, you deserve to get paid vacation, so if parents aren’t continuing to pay while you’re closed, you’ll want to make sure that gets added to your tuition calculations.

Use the Above Information to Determine Your Pricing

Pricing can be a bit of trial and error. Generally, it can be a good idea to price yourself a bit lower when you’re just getting started. Then, when you’re full, you can gradually increase your prices.

To determine your starting point, add up all of your anticipated monthly expenses. You’ll need to price yourself to make sure you cover those expenses, and also pay yourself. Keep in mind that as a business owner, you’ll be responsible for paying your own taxes. You can generally expect to pay 30% of your revenue to taxes.

Keeping it All Organized

Pricing might feel like a bit of a puzzle that needs to be fit together, and it should. You want to make sure your pricing reflects your real costs as a business owner. The final piece to your business plan is that you’ll want to make sure you figure out how you’re going to track all of your business expenses. This will make it easier when it comes time to pay taxes, but it will also help you keep an eye on the health of your business. There are a variety of tools available to purchase to track this stuff, or you can start out with your own spreadsheet or pen and paper system. Whatever works for you is fine, just set it up and use it. Sometimes our tendency with money is to bury our heads in the sand, but that won’t help you make informed decisions down the road.

Starting a new business always comes with a certain amount of risk. By thinking through all of the different facets of your child care business, you will better be able to mitigate that risk. It can be scary to stand up and say “this is what my time as an early educator and care provider is worth,” but your business plan should give you confidence to do just that. Good luck with your successful and sustainable child care business!

Essential reading

How to get parents using the wonderschool app.

11th February 2022

Once you begin using Wonderschool you will want to engage ...

Why you should be using an app to communicate with your parents

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Maryland family child care licensing: An overview

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Dreaming of opening up your own in-home preschool or child ...

Meredith Downing

Meredith Downing is the Curriculum Lead at Wonderschool, where she supports directors to build high-quality programs that help students grow and succeed.

Preschool Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Education Sector » Schooling

Preschool industry operators provide daycare services for children under the ages of three and four to prepare them for kindergarten.

The dispersion of the preschool programs reflects in the geographic distribution of the children, which is also influenced by the cost and supply of preschool programs, income and housing affordability patterns, labor, and child care subsidy policies.

Also, varying state and local regulations and licensing requirements affect employment in this industry. Preschools are under the Early Childhood Learning Centers Industry and the market size, measured by revenue of the Early Childhood Learning Centers industry is $10.7bn in 2023. The industry is expected to increase by 4.6% in 2023.

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Executive summary.

Auntie Lavendar® Preschool, Inc. is a standard and well–equipped preschool that will be located in a well-populated residential estate in Ashville – North Carolina, USA. We provide daycare services for children under the ages of three and four to prepare them for kindergarten.

Aside from the fact that we will operate a preschool center, we will also propvide in-home tutoring – we will go to the homes of our students as demanded by their parents. Donald Derrick is the founder and CEO of Auntie Lavendar® Preschool, Inc.

Company Profile

A. our products and services.

Auntie Lavendar® Preschool, Inc. will provide a wide range of services that revolves around providing daycare services for children under the ages of three and four to prepare them for kindergarten. Our services are designed to give early childhood education to kids under the age of 4 and also help provide relief to parents when they need to be away from their kids for a period of time.

b. Nature of the Business

Auntie Lavendar® Preschool, Inc. will operate the business to consumer business model (B2C).

c. The Industry

Auntie Lavendar® Preschool, Inc. will operate under the Early Childhood Learning Centers Industry.

d. Mission Statement

Our mission is to provide safe and secured daycare facility and services geared towards educating and taking care of kids of a certain age. We are all out to prepare kids for kindergarten.

e. Vision Statement

Our vision of establishing our preschool is to grow the business to be amongst the top three preschools in the whole of the United States of America.

f. Our Tagline (Slogan)

Auntie Lavendar® Preschool, Inc. – Rasing and Educating Golden Kids!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Auntie Lavendar® Preschool, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ personal assets from claims against the business, including lawsuits.

h. Our Organizational Structure

• Head of Preschool (President)
• Preschool Administrator
• Account Officer
• Early Childhood Educators
• Front Desk Officer
• Cleaners and Nannies
• Security Guards

i. Ownership/Shareholder Structure and Board Members

• Sophia Lavendar (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
• Solomon Lavendar (Board Member) 19 Percent Shares
• Adrain Lavendar (Board Member) 10 Percent Shares
• Larry Brad (Board Member) 10 Percent Shares
• Lauren Williams (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal Location for preschool business
• Highly Experienced and Qualified Employees and Management
• Highly Secured and Clean Facility
• Highly structured programs aimed at giving kids early childhood education and to prepare them for kindergarten.

b. Weakness

• Financial Limitations
• Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• Growth in per capita disposable income influences demand for early childhood learning centers. Households with higher disposable income are more likely to be able to afford higher-quality child care and, thus, will be more likely to demand higher-cost services. Per capita disposable income is expected to increase in the coming year, presenting an opportunity to the industry.

i. How Big is the Industry?

The early childhood learning industry is indeed a big industry. The market size of the is projected to be over $10.7 billion in 2023.

ii. Is the Industry Growing or Declining?

Available statistics point to the fact that the industry is presently not growing and revenue for the industry has been adjusted from an increase to a decline.

Please note that from 2022 the revenue of the industry is anticipated to start growing as the economy recovers and COVID-19 (coronavirus) cases subsequently drop in line with the nationwide vaccination rollout. As a matter of fact, available data shows that the industry is projected to grow by 4.6 percent in 2023 recovering from a decline of -3.8 between 2017 and 2022.

iii. What are the Future Trends in the Industry

The early childhood learning centers industry is changing, and players in the industry are improvising. No doubt, technology, kids-friendly legislature and customized software will change the landscape of the industry going forward.

iv. Are There Existing Niches in the Industry? If YES, List them

No, there are no niche ideas when it comes to preschool line of business.

v. Can You Sell a Franchise of your Business in the Future?

Auntie Lavendar® Preschool, Inc. has the plans to sell franchise in the nearest future and we will target major cities with a growing numbers of parents in the United States of America.

• Lack of support from stakeholders and the government
• Unfavorable government policy and regulations.
• Community resistance (May not want such facility to be located in their community)
• Liability problems
• Arrival of competitors within our market space.

i. Who are the Major Competitors?

• The Episcopal School
• Pacific Northern Academy (PNA)
• Westside Neighborhood School
• Lowell School
• East Linn Christian Academy
• Cambridge-Ellis School
• Saint Ann’s
• The Children’s School.
• Germantown Friends School
• Beyond ABCs
• Mary Institute and Saint Louis Country Day School
• Avenues World School
• National Child Research Center
• Wetherby-Pembridge School
• University of Chicago Laboratory Schools
• Greenhill School
• Presidio Knolls
• Ecole Bilingue de Berkeley
• Gems World Academy
• Bank Street School.

ii. Is There a Franchise for Preschool?

Yes, there are franchise opportunities for preschool and here are some of them;

• Genius Kids (Initial investment: from $122,000)
• KLA Schools (Initial investment: from $1,100,000)
• Adventure Kids Playcare (Initial investment: from $385,000)
• Primrose Schools (Initial investment: $652,000)
• Discovery Point (Initial investment: from $405,570)
• Lightbridge Academy (Initial investment: from $581,000)
• Building Kidz School (Initial investment: from $214,000)
• KidsPark (Initial investment: from $261,000)
• Montessori Kids Universe (Initial investment: from $424,000)
• The Goddard School (Initial investment: from $698,000)
• Kiddie Academy (Initial investment: from $400,000)
• The Learning Experience Academy of Early Education (Initial investment: from $544,000).

iii. Are There Policies, Regulations or Zoning Laws Affecting Preschools?

Yes, there are county or state regulations and zoning laws for preschools, and players in this industry are expected to work with the existing regulations governing such business in the county or state where their business is domiciled.

For example, the designated area for children’s activities should contain a minimum of forty-two square feet of usable floor space per child. A usable floor space of fifty square feet per child is preferred. However, you may be subject to local permits depending on how you plan to operate your preschool.

Marketing Plan

A. who is your target audience.

i. Age Range

We will admit children between the ages of 2 and 4 years old.

ii. Level of Educational

We don’t have any restrictions on the level of education of those we will admit their kids to our preschool.

iii. Income Level

We don’t have any cap on the income level of those we will admit their kids in our preschool.

iv. Ethnicity

There is no restriction when it comes to ethnicity of the people we are looking forward to admit their kids in our preschool.

v. Language

There is no restriction when it comes to the language spoken by the people we are looking forward to admitting their kids to our preschool, however, we will prefer people who speak the English language.

vi. Geographical Location

Any parent from any geographical location will be welcome to enroll their kids in our preschool.

vii. Lifestyle

Auntie Lavendar® Preschool, Inc. will not restrict any parent from accessing our facility and services based on their lifestyle, culture or race.

b. Advertising and Promotion Strategies

• Host Themed Events That Catch The Attention of Parents.
• Tap Into Text Marketing.
• Use FOMO to Run Photo Promotions.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels Into a Resource
• Develop Your Business Directory Profiles
• Build Relationships With Other Parent Associations in our Area

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage on direct sales, direct mail (postcards, brochures, letters, fliers), referral (also known as word-of-mouth marketing).

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing.
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our clients.
• Create an efficient content marketing strategy.
• Create a community for young parents and intending parents.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Auntie Lavendar® Preschool, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package. In all our pricing strategy will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, parent clubs, and clinics to help refer parents to us.

Auntie Lavendar® Preschool, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted.

b. Inventory Strategy

The fact that we will need toiletries, change of beddings, supplies and food per time means that Auntie Lavendar® Preschool, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Auntie Lavendar® Preschool, Inc. will make available to her donors and contributors;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Return Policy, Incentives and Guarantees

At Auntie Lavendar® Preschool, Inc., we offer services, and the nature of the services we offer does not accommodate return policy, but we will guarantee parents that their kids will get the best of early childhood learning and education.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer’s feedback. This will help us provide excellent customer service to all our customers, it will help us to first understand their needs, experiences, and pain points. We will work with an effective CRM software to be able to achieve our aim of surpassing our customer’s need.

On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales and operations component. The operations component of the plan would include attracting more customers and additional service offerings that will enable the organization to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at a Preschool?

• The facility is open for the day
• The facility is cleaned and prepared for the day’s activities
• Parents are welcome and their kids are received from them
• Early childhood learning activities, as well as playing with kids to encourage mental and physical stimulation are carried out as required
• Administrative works are done
• Parents come to pick their kids and the facility is closed for the day.

b. Production Process

There is no production process when it comes to a preschool.

c. Service Procedure

There is no service procedure when it comes to a preschool.

d. The Supply Chain

Auntie Lavendar® Preschool, Inc. will rely on parent associations and other stakeholders in our city to refer parents to us. So also, we have been able to establish business relationship with wholesale supplies of beddings, toiletries, and other supplies.

e. Sources of Income

Auntie Lavendar® Preschool, Inc. make money from;

• Providing daycare services for children under the ages of three and four to prepare them for kindergarten.
• Offering home tutor services for toddlers as requested by their parents
• Retailing early childhood learning materials.

Financial Plan

A. amount needed to start our preschool.

Auntie Lavendar® Preschool, Inc. would need an estimate of $250,000 to successfully set up our preschool in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation and the renting of our operational facility.

b. What are the Cost Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $1,300.
• Marketing, Branding and Promotions – $3,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $120,000.
• Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $30,000
• start-up inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing and Equipping – $45,000
• Website: $800
• Opening party: $3,000
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Auntie Lavendar® Preschool, Inc. will not build a new facility for our preschool; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Preschool?

• Cost of stocking up supplies such as toiletries, change of beddings, and other supplies
• Utility bills (gas, internet, phone bills, signage and sewage et al)
• Salaries of employees

e. What is the Average Salary of your Staff?

• Head of Preschool (President) – $45,000 Per Annum
• Preschool Administrator – $36,034 Per Annum
• Account Officer – $35,000 Per Annum
• Early Childhood Educators – $33,300 Per Annum
• Front Desk Officer – $28,000 Per Annum
• Cleaners and Nannies – $22,000 Per Annum
• Security Guard – $22,000 Per Annum.

f. How Do You Get Funding to Start a Preschool?

• Raising money from personal savings and sale of personal stocks and properties
• Applying for a loan from your bank/banks
• Pitching our business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from our family members and friends.

Financial Projection

A. how much should you charge for your service.

At Auntie Lavendar® Preschool, Inc. it is important to note that we will charge $4,460 to $13,158 per year ($372 to $1,100 monthly) on average, depending on the services involved.

b. Sales Forecast?

• First Fiscal Year (FY1): $250,000
• Second Fiscal Year (FY2): $350,000
• Third Fiscal Year (FY3): $450,000

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1): (65 percent)
• Second Fiscal Year (FY2): (45 percent)
• Third Fiscal Year (FY3): (50 percent)

d. Profit Margin of a Preschool Product/Service

Auntie Lavendar® Preschool, Inc. will work towards achieving between 25 percent to 45 percent.

Growth Plan

A. how do you intend to grow and expand by opening more retail outlets/offices or selling a franchise.

Auntie Lavendar® Preschool, Inc. will grow our preschool by first opening other outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchise from the sixth year.

b. Where do you intend to expand to and why?

Auntie Lavendar® Preschool, Inc. plans to expand to Dallas – Texas, New York City – New York, Sumter – Florida and then to Liliano – Texas, Lancaster – Virginia, Alcona – Michigan, Los Angeles – California and Catron New Mexico.

The reasons we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest number of people with kids below the age of 5 in the United States.

The founder of Auntie Lavendar® Preschool, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.

Preschool Business Plan Template [Updated 2024]

Preschool Business Plan Template

If you want to start a Preschool business or expand your current Preschool, you need a business plan.

The following Preschool business plan template gives you the key elements to include in a winning Preschool business plan.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of a Preschool business plan example:

Preschool Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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How to Develop a Business Plan for a Preschool

My Kid Reports

Are you planning to start a preschool? A business plan is essential for the success of your venture. In this, we’ll go over how to develop a comprehensive business plan that will help you launch and grow your preschool.

Starting a preschool can be a rewarding and profitable venture. However, it’s important to have a solid business plan in place to ensure the success of your preschool. In this post, we’ll go over how to develop a comprehensive business plan for your preschool.

👉 Executive Summary: The executive summary should provide an overview of your preschool and the key elements of your business plan. This includes your mission statement, target market, competition, and financial projections.

👉 Market Analysis: Conduct a thorough market analysis to understand your target market, competition, and industry trends. This will help you identify your unique selling proposition and develop a marketing strategy to attract and retain customers.

👉 Business Model: Define your business model, including your revenue streams, pricing strategy, and cost structure. This will help you determine your pricing strategy and ensure that your preschool is profitable.

👉 Operations Plan: Develop an operations plan that outlines how your preschool will operate on a day-to-day basis. This includes staffing, curriculum, scheduling, and facilities management.

👉 Financial Plan: The financial plan should include detailed financial projections, including revenue, expenses, and cash flow. It should also include a break-even analysis and funding requirements.

👉 Marketing Plan: Develop a marketing plan that outlines how you will attract and retain customers. This should include a marketing budget, target market, marketing channels, and a timeline for implementation.

👉 Implementation Plan: The implementation plan should outline the steps you will take to launch and grow your preschool. This should include a timeline, milestones, and metrics to measure success.

By following these steps, you can develop a comprehensive business plan that will help you launch and grow your preschool. Remember to revisit and revise your business plan regularly to ensure that it remains relevant and effective.

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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.

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.

Financial Plan investor-ready personnel plan .">

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

Important Assumptions

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

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

Key Financial Indicators

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

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

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

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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Education/Childcare/Child Enrichment Business: Example Business Plan

Interested in setting up your own daycare or child enrichment program? We’ve created and example business plan to help you get writing!

Are you a early childhood educator with a passion for working with children? Do you have a strong interest in maintaining cultural heritage amongst youngsters? Writing a business plan will help you to identify your ideal customers and make clear your specialized services.

To help you get started we’ve created an example business plan for a childcare business. Our example focuses on a company that offers a daycare enrichment program, but it will work as a framework no matter what childcare services you are offering. Click the ‘Download Tool’ button to gain access to the word document.

You can also find the same example in the Business Plan Writer , our free online tool that guides you through the process of starting your business. Just select “Education/child care/child enrichment” as your industry when you register.

Good luck and happy writing!

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Whether you are running a restaurant or a preschool it is important to have a business plan. If you are just starting one then you will probably be requiring funds. When you approach an investor for the funds the first thing he or she is going to want from you is a solid preschool business plan . That will give him an idea of whether you know what you need to do and if it would be a good idea to invest money in your venture.

Step 1: Create the Cover Page

Step 2: create a summary of what you want to build, step 3: give an analysis of the market, step 4: propose how you wish to achieve your goals, step 5: calculate and estimate the costs.

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FREE 10+ Preschool Business Plan Samples in MS Word | Pages | Google Docs | PDF

Inspiring a love of learning is one of the known benefits of attending preschool, according to ourkids.net. Indeed, children ages 4 to 5 can have lots of opportunities to grasp new knowledge, skills, as well as socializing better when enrolled in preschool. Just like any other businesses, opening or franchising a preschool will get competitive since it’s one of the most lucrative businesses related to education and childcare. So, if you want to succeed, then you need a solid preschool business plan right now! Read on to discover what it is, and how you can make one with ease.

Preschool Business Plan

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A preschool business plan is a type of document that preschool owners and managers create to record business and school strategic plans to stay on top of the childcare industry. The document must detail the actions to take and includes the possible risks accompanying each action. Above all, the involved parties should discuss the plan so that there will be brainstorming of ideas and suggestions.

Besides being an early learning ground, preschools also have a later-life benefit for a child. According to the Early Childhood Education Zone , a child who goes to preschool is being less likely to be a high school drop out and more likely to own a house. But, a preschool center will only be effective in giving opportunities and nurturing a child if it’s well-structured. And that is why you should keep the following tips in mind as you create a solid preschool business plan for your preschool center:

You are not alone in the childcare industry and preschool business. Therefore, you must acknowledge that there are other preschool centers in your area. Conducting  business research can be effective to know your competitors and what you can do better. You can also look for concerns and issues that your preschool attendees and school staff have raised so that you can identify solutions for each of them.

To whom are you sending or sharing your preschool business plans? Is it the bank so you can get a loan, or is it the rest of the preschool administrators to establish new school operational plans ? Regardless of who your audience will be, you should focus on how you communicate the plan to them. Make sure that you use the right terms and words. Also, disclose information relevant to them. Doing this will help you get their attention and support for your business plans .

You must include details in your preschool business plan, especially in the execution and financial plan  sections. There should also be supporting information for your plans, such as survey reports, business history, and other data that you can use to prove that your plan is the best option to take.

Opening, establishing, and managing any business will always entail setting realistic and specific goals. And that goes to your preschool business as well. You have to make a plan and state your objective while making sure that it is within a realistic timeline. Doing this will allow you to see and celebrate milestones that you’ve had during the execution of the plan. Also, you can opt to include a business calendar for your timeline. This document will help you plot your aim and achievements.

You must deliver your ideas and plans well, and you should avoid lengthy sentences and inputting pieces of information that are not relevant. Also, consider keeping the page count within 30-50 pages, and not to beyond, since it’s already a lengthy piece of document to have.

According to Entrepreneur , business companies take almost a year to execute changes and keep it running. With that in mind, expect the same time frame. However, it still depends on the project, changes, or subject to address in your business plan. For example, if your plan focuses on the profit and loss of your preschool business, expect it to take many months before you see its actual effects.

You don’t have to hire anyone to help you make a preschool business plan, but you do need to involve the members of your preschool business in the planning session. Consider hearing their thoughts, voices, ideas, alternative plans, and what they can say about your plan to improve the business.

You can use our preschool business plan templates by simply choosing which among the templates suits your needs, and then clicking the download button of it. After that, you can edit the template using a program that’s compatible with it. Lastly, you can save, print, and deliver your completed plan to your audience.

Preschool business plans are essential for those who are managing a preschool center or working in a preschool center. It helps you communicate and deliver what you perceive would be the best option for the preschool business. And also, it documents the steps towards meeting your goals. Therefore, don’t waste any more time and download any of our free sample forms and templates today!

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Preschool Business Plan Sample

Published Oct.11, 2013

Updated Sep.15, 2024

By: Jakub Babkins

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Table of Content

Do you want to start a Preschool business plan?

Are you thinking of drafting a business plan for a preschool? If you want to know how to write a business plan for a preschool, you can refer to business plans like the one presented here.

Starting a new business can be hard, especially in the education sector but it can also be very rewarding. So, if you want to know how to develop a business plan for angel investors that will get them excited and interested in your business, then start by following this document. 

Here, we will be presenting a preschool business plan with a focus on tutoring business ideas .

Executive Summary

2.1 what is the business.

This document contains the sample business plan for preschool that will be called LearnALot. LearnALot will be a preschool/ daycare center operated and managed by Theodore Krasinski. It will offer parents a chance to make their kids have fun in a safe environment. Besides, the kids will also be taught the basics.

2.2 Management of Preschool

Starting a preschool business plan can be hard. But the process to plan and manage the business becomes easier if you split it into smaller and more manageable parts. If you want to make a business plan for a preschool center , the first thing you need to do is to draft everything. 

In this business plan for a preschool pdf, we will plan out all the necessary details of LearnALot one by one. If you want to write a business plan for preschool, you can follow the guide. You can also hire business planning services to get a professional business plan written for your startup.

2.3 Customers of Preschool

The customers of LearnALot will belong to all kinds of family backgrounds. Due to our daycare services, parents or families with small or special needs children will make a major customer group.

• Working Parents
• Single Parents
• Concerned Parents
• Families with special needs kids

2.4 Business Target

The target of LearnALot is to become a reliable daycare and educational center for the residents in Florida. We aim to cater to healthy and normal children as well as those with special needs. 

The financial targets that LearnALot wants to achieve within the first three years of operation are demonstrated below:

Company Summary

3.1 company owner.

Theodore Krasinski will be the owner and manager of LearnALot. Theo got his master’s in education three years ago after which he served as a teacher for two years and as a principal in the third year. However, he always felt a need to do more so he decided to open a special preschool himself. 

3.2 Company History

Theo noticed that though public schools were trying their best, they didn’t focus on acquiring the tools to cater to children of different needs. There was also a lack of preschools and daycares in the surrounding. To eradicate this issue, Theo decided to open a preschool that would prepare students of all kinds to keep up when they got into school. 

3.3 How the Preschool will be started

Step1: Evaluate Goals

Starting up a preschool business or any business in that domain requires a lot more than money. Before you start a business, you need to be sure about the goal you want to achieve via it. The goal can be scaling up the business, earning profits or increasing the well-being of the community, or anything else. But there needs to be a solid goal to direct your operations.

In this open driving school business plan , we will list the SMART business goals adopted by LearnALot.

Step2: Plan the Business

Once you are sure about the goals of your business, you can start developing a business plan template for preschool. If you are not sure how to develop a business plan, you can take help from preschool business plan examples like this one to learn how to write a business plan for a preschool. 

Step3: Plan Structure and Logistics

Now that you know the base details of the business, you will be able to sort out the finances. This will include estimating the costs that will be involved in starting the business. 

Step4: Get Funding

Any business needs money to start and function before it can become self-sustaining. To get the initial funding for LearnALot, Theo decided to write up a strong business plan that would wow the investors. 

Step5: Find a Physical Space

Every business, big or small, needs space to function. Therefore, to start a preschool, you will need a building to set up everything. Theo decided to rent out a building with some space in the front so that he could develop an outdoor play area as well. 

Step6: Promote and Market

The final step of the business is to develop a marketing plan to promote the business both in the online and physical realm. Theo will hire a marketing plan specialist to develop a marketing plan that can be easily followed to bring more customers to the business.

All business plans including business plans for preschools include details of what services or products the business will provide. Deciding these things ahead of time allows you to develop a preschool business proposal more efficiently. 

A preschool business plan like an e-learning business plan will help you map your business in detail. That will, in turn, allow you to manage it in a better way and gain more funding. 

In the case of this preschool business plan template, Theo decided to include all the major services that he will offer to the customers through his business. 

• Day Care Services

The primary service provided by LearnALot will be daycare. The business will offer daycare services for all types of parents. This will include parents who just want to drop their kids temporarily for a few hours while they get done with their day-to-day tasks. The other option will be for parents who want to entrust their kids regularly as they are off to work. 

• Special Education Services

LearnALot will also cater to families and parents who have special needs children. This can include children who need help with physical activities or children, who, perhaps have a different way and speed of learning. 

As Theo wants to offer a one-place-for-everything business, there will also be some learning activities for the kids to learn as they play. Parents will have the choice of opting their kids out of these activities. However, Theo will try to encourage parents to allow their children, a free environment so they can adjust better when they get into school later. 

• Transportation

LearnALot is primarily a business for children with parents who are busy working for a living. So keeping their busy routines in mind, the business will also offer ‘pick and drop’ services to facilitate such parents. 

Marketing Analysis of Preschool

Excellent work.

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Even though opening a preschool business may look like an easy task, it can be very taxing if not planned properly. To start any business, even a preschool business, you need to thoroughly research the market and understand it. 

The best way you can learn about your target market is to do market analysis as a part of your business plan for preschool center. The marketing will help you understand the past, present, and future conditions of the market, what the gaps are, and where you can fit in. 

If you are thinking of running a preschool business, you will need to learn all about your target market. This will include both your customers and competitors. Learning these things will help you develop a preschool marketing plan targeting your customers. You will not only be able to attract customers in a better way but will also be able to find ways to stand out among others. 

If you want to develop a preschool business plan sample and you don’t possess enough knowledge, you can follow this sample preschool business plan for LearnALot. 

5.1 Market Trends

Daycare and Preschool services are booming services in the US. According to IBISWorld, daycare centers have a market share of around $54 Billion. And according to Bplans, 84% of startups in daycare services succeed enough to make a good profit within the first year. Therefore, opening a business in this domain is very rewarding. 

5.2 Marketing Segmentation

The customers of LearnALot will belong to the following groups:

Business plan for investors

5.2.1 working parents.

Our main customers will be working parents living in and around Florida. These parents usually have eight-hour jobs that keep them busy. Therefore, they are expected to utilize our services most often. We will offer them a place where they can leave their children without any worry. At us, they will have a space where their kids can play and learn new things and skills. 

5.2.2 Single Parents

Our second target customer will be the single parents who need as much help as they can get. Single parents usually have to manage everything on their own. Therefore, a service of this sort will be of great help to them. By entrusting their kids to us, they will be able to do daily chores and relax for a while. 

5.2.3 Concerned Parents

A lot of parents usually get concerned that their children are not learning as fast as they could. For these parents, our educational services will be the most attractive. We will offer learning sessions in several niches so that parents can choose what they want their kids to learn. 

5.2.4 Families with Special Care Kids

Lastly, LearnALot will cater to those children as well who don’t learn at the same pace as other students. Parents can bring their children to get assessed and our preschool will try its best to cater to the children in the most helpful way.

5.3 Business Target

The target of LearnALot is:

• To become a safe and reliable place where parents can drop off their children regularly. 
• To become the best preschool/ daycare center in Florida.
• To expand the range of services we offer.
• To earn a profit margin of $10k/month after the first two years to sustain the business.

5.4 Product Pricing

Our prices for specialized cleaning are a little higher than those of our competitors. However, our other offerings are available to our customers in a similar price range as that of our competitors.

Marketing Strategy

To develop a preschool marketing plan template that will help you succeed, you will need to develop strategies that will work for your market. A good marketing plan is a part of every business plan. Therefore, you will need it for your daycare and preschool business plan as well. In this business plan for preschool pdf, we are providing the preschool business plan sample for LearnALot. 

If you are also offering physical training and game sessions, you can also see the marketing strategy for karate center business plan .

6.1 Competitive Analysis

• We have versatile offers and services to cater to parents who want to drop off their kids for different periods. 
• Our customers can directly contact us in case they need any special services.
• We are offering pick and drop service to facilitate the parents even more.

6.2 Sales Strategy

• We will advertise through local news channels, posters, and social media posts.
• We will offer discounted rates to the first 15 customers.
• We will offer different types of affordable packages to parents so that using a preschool doesn’t break their bank.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

A business plan preschool like any other business includes the strategy to hire the employees for your business. To get an idea of how many employees you may need, you may consult a business plan for language school sample . In this preschool business plan pdf we are providing the employee list made by Theo to run the preschool.

7.1 Company Staff

• 5 Trained Teachers
• 1 Sales Executive 

7.2 Average Salary of Employees

Financial Plan

When you look at preschool business plan examples, you will notice that all of them outline their finances in one way or another. Financial information is always a part of every preschool business plan sample pdf. Accurate financial planning enables you to fund your business, and earn revenue.

Due to the immense importance of financial planning in a business, it is advisable to not experiment with developing a financial plan. Financial planning is of utmost importance and it impacts the sustainability of a business in the long term. Keeping it in mind, you should hire a professional financial planning expert for the task. Various business frims would do the task for you even online.

Below, we are providing the financial analysis for LearnALot. You can follow this template to do financial analysis for your martial arts business plan as well. 

8.1 Important Assumptions

8.2 Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

• Are preschoolers profitable?

Opening a preschool business can prove profitable if you do a financial analysis to make sure that the cash flows are managed well.

• How can I grow my preschool business?

You can grow your preschool business by reading preschool business plans for preschools that are running successfully.

• What are the steps to start a preschool?

The first step is to make starting up a preschool business plan and then deal with every aspect of your business including the finances, marketing, and services you will offer. 

• How do you write a preschool proposal?

You can write a business plan for the preschool center by following the template provided above.

Download Preschool Business Plan Sample in pdf

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• drskids , Franchise

How to do a Preschool Business Plan

• November 20, 2021

INTRODUCTION

1. executive summary -.

- The first and crucial step of preparing a preschool business plan is to start with an executive summary. The executive summary must consist of your objective and unique selling point. It should talk about the aspects that make your preschool stand out from the rest.

- DRS Kids aims to function as a fun and nurturing play school for children from 1.5 - 6 years. We stand out as we provide a rich, stimulating environment to satisfy the learning needs of children. We strive towards the development of their social, emotional, physical, and academic skills.

2. ABOUT YOU -

- Yes, you need to talk about your preschool in the plan. Mention what, when, how, and every other possible question, but briefly. Firstly, the organization itself needs to understand what they are. Then comes the plan on how they plan to execute their identity to the general public.

- DRS Kids, a preschool chain, provides a joyous learning environment. The curriculum provided is scientifically researched to maximize the development of children. The preschool environment is safe, educational, and nurturing. The creche cum daycare facilities and market segmentation makes DRS Kids feasible for urban as well as rural areas.

3. MARKETING PLAN -

- Marketing is an integral part of business. The extent to which you market your business is what determines your success. It aims at building brand awareness using various ways. One is even open to select the type of marketing they wish to do for their business. The requirement is to strategize the further proceedings of their plan based on that.

- We, at DRS Kids, provide major support to our preschool franchises when it comes to marketing. We plan a customized marketing strategy for them and provide them with all the marketing collateral required. We also offer them training for admission counselling as a part of marketing. Additionally, we do national brand marketing through televisions ads, official websites, social media platforms, etc.

4. OPERATIONAL PLAN -

- The functioning strategy of your business is it's operation plan of actin. Mention the location of your preschool and the number of employees that you plan to employ. Make sure to form the departments that will exist in the organization. Specify the possible division strategy of employees into each department. Ensure that the operational plan has a list of the tasks assigned to each department or each member. The list should also mention the deadlines of each task.

- We, at DRS Kids, make the whole process of operational planning easy for our preschool. We provide them with the operational expenditure plan, the staff recruitment plan, and the student enrollment plan. We even provide them with a welcome and consolidated kit that consists of essential manuals & documents.

- Team is the core aspect of a business, both in the plan and in the implementation. A business is highly dependent on the team that works to build it. Mention all your team members in the business plan. It should include all the members from all the departments.

- DRS Kids provides overall support to our clients to recruit the entire team for their preschool.

6. PROJECT STARTUP COSTS -

- Plan your finances and lay down the same plan firmly. It familiarizes you with the expenses that await you shortly. This way of strategizing helps in the proper implementation of your plan and promotes organized spending.

- DRS Kids preschool franchises are affordable as they do not burn a hole in your pockets. We provide our clients with a revenue projection list, which is a part of our business proposal. We currently have a zero franchise fee offer which further adds to our clients’ savings.

Also Read:- How to start a preschool in india

7. projected profit & loss statement -.

- The profit gained out of a business is the definition of its success. Profit and loss statements help in target setting and better functioning. Similarly, loss will possess this application too. Hence, while making a business plan, it is important to add a combined projected profit and loss statement

- The DRS Kids business proposal shares a project feasibility report with the franchisee. This way the process is hassle-free for them. The business proposal provided is completely informative in itself. We simplify the process for making business plan for clients.

• CONCLUSION -

- So far it is clear that a preschool business plan is a written document. It consists of the organization’s business-related activities and goals. It also gives information about how it wishes to execute its plan to achieve the mentioned goals. The business plan document is not supposed to remain constant. This is mainly because growth and evolution are important aspects of a business. Hence, as the business grows, the modification of information in the document is important too. In simpler words, we can say that it is a document that develops and evolves as your business grows. At DRS Kids, we provide you with a business proposal that satisfies all the above-mentioned requirements. The process of building a business with us is effortless.

Mr. Garv Agarwal

• Curriculum for preschool , Government permission to open a preschool , How much area is required for preschool , How much investment to start a preschool , How to start a preschool , How to start a preschool in India , How to start playschool & daycare , Legal procedure to start a preschool in India , Open a preschool , Permission to start a preschool , Permission to start a preschool in India , Preschool affiliation in India , Procedure to start a preschool , Process to open a Playschool in India , Registration of a playschool

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