example of a business plan for a daycare center

The Daycare Business Plan Blueprint (Examples + Template)

April 14, 2022

Adam Hoeksema

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

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

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

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

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

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

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

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

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

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

How to Create a Daycare Business Plan 

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

• Business Description
• Market Analysis

Business Model

• Location and Facility
• Marketing Plan
• Financial Plan

Executive Summary

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

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

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

Create a Compelling Business Description

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

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

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

What's your Curriculum Based On?

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

When describing your curriculum, make sure to include:

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

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

How Big is Your Facility? 

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

This section of your business plan may include: 

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

Who Is Your Target Market? 

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

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

“ABC Daycare is a small, home-based daycare located in San Francisco, CA. We cater to children aged 0-12 years old and offer full-time, part-time, and drop-in care. 

Our curriculum is based on the Reggio Emilia approach, emphasizing hands-on learning and collaboration. Activities and programs include arts and crafts, music, and outdoor play. 

Our facility can accommodate up to 12 children at a time. We have a staff of four employees who are all CPR and First Aid certified. 

Our target market is working parents in the city who need quality child care but can't afford the rates of larger daycare centers.  We've created an affordable subscription-based pricing model for our target market to fulfill the demand. We generate revenue through monthly subscriptions and have low operating costs due to our small size. 

Our suppliers are local businesses that provide us with food, toys, and other supplies.” 

Do a Thorough Market Analysis

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

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

Keep these things in mind when doing a market analysis:

The Size of Your Market

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

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

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

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

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

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

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

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

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

“The daycare will be open Monday through Friday from six in the morning to six at night. We will offer care for children ages six weeks to twelve years old. 

Our rates will be $50 per week for one child and $40 per week for each additional child from the same family. We will offer a discount of $20 per week for families who enroll their children for an entire year. 

We will generate revenue by charging weekly rates for our services. Our operating costs will include rent, utilities, supplies, and salaries for our employees. Also, we will acquire customers through online advertising and word-of-mouth.” 

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

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

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

“The daycare will be located at 123 Main Street in a commercial space currently leased by the owner. The lease agreement is for three years with an option to renew for an additional three years. The monthly rent is $2000, and the security deposit is $3000. 

The daycare will have exclusive use of the main floor, including a large open play area, a small kitchen, two bathrooms, and four classrooms. The daycare will also have access to the outdoor playground.

80% of our space will be used for childcare, with the other 20% used for our administrative offices and staff lounge. 

We have chosen this location because it is close to several residential neighborhoods and has easy access to public transportation. The space is also large enough to accommodate our future growth.” 

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

Daycare Marketing Plan

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

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

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

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

"Our target market is working for families with children between six weeks and five years old. We will reach our target market through online and offline marketing efforts. 

Some of the offline marketing strategies we will use include print advertising, flyers, and word-of-mouth referrals. We will use a mix of SEO, content marketing, and social media for online marketing. 

We have set aside a budget of $500 per month for our marketing efforts."

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

Daycare Financial Plan

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

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

This section should include projected costs for:

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

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

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

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

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

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

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

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

Let’s dive into some key questions. 

How much does it cost to start a daycare? 

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

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

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

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

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

How much revenue can a daycare business make?

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

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

How much does daycare cost?

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

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

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

The typical child to staff ratios for a daycare are:

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

Source - Childcare.gov

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

What are the typical operating costs for a daycare? 

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

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

Other operating costs for a daycare center include:

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

How much profit can a daycare make? 

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

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

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

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

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

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

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

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

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

What Are The Benefits of Creating a Daycare Business Plan?

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

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

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

Gives You a Roadmap to Follow

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

Helps You Secure Funding

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

Ensures Your Daycare Business is Feasible

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

Final Thoughts

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

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

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

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

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

You can get the Daycare Facility financial projection template here!

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

The daycare business projection template includes:

5 Year Daycare Facility Pro Forma Financial Statements

CPA Developed & Completely Customizable

Free Support & Projections Review

Compatible with Google Sheets

Free expert review of your completed projections

The template is easy to use and you do not need to be an excel wizard to fill it out. Editable cells are highlighted in blue, a video guide is included, and our team is available to answer any questions you have.

You can see the complete walkthrough and demonstration of the daycare business forecast template here:

Get the template today for just $79

If you have any questions before purchasing, please feel free to begin a live chat or email us at [email protected]

100% money back guarantee in accordance with our terms and conditions

‍ Photo by Pixabay

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 40,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Daycare Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

Daycare Business Plan

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

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

How To Write a Daycare Business Plan & Example

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

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

Next Section: Executive Summary >

Daycare Business Plan FAQs

What is a daycare business plan.

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

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

What Are the Main Types of Daycare Businesses?

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

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

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

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

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

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

What are the Steps To Start a Daycare Business?

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

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

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

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

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

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

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

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

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

Learn more about how to start a successful daycare business:

• How to Start a Daycare Business

Where Can I Get a Daycare Business Plan Example PDF?

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

Daycare Business Plan Template & PDF Example

• September 4, 2024

Creating a comprehensive business plan is crucial for launching and running a successful daycare. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your daycare’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a daycare business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the service industry, this guide, complete with a business plan example, lays the groundwork for turning your daycare business concept into reality. Let’s dive in!

Our daycare business plan is thoughtfully developed to encompass all crucial aspects required for an in-depth strategic plan. It outlines our facility’s operations, marketing strategies, market dynamics, competitors, management team, and financial projections.

• Executive Summary : Offers an overview of your Daycare’s business concept, including the innovative learning environment, market analysis , management team, and financial strategy.
• Building & Location: Describes the Daycare’s modern, child-friendly design, its central location, and amenities such as indoor and outdoor play areas, sensory rooms, and nap zones.
• Pricing & Educators: Lists the services provided by your daycare, including full-time and part-time care options, the educator-to-child ratio, and pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the Daycare market.
• Key Trends: Highlights recent trends affecting the childcare sector, such as the increasing demand for early childhood education programs and technological integration.
• Key Competitors: Analyzes main competitors nearby and how your daycare differs from them, focusing on aspects like curriculum quality and additional services.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis tailored to the daycare business.
• Marketing Plan : Strategies for attracting and retaining customers, including branding, local advertising, online presence, and community involvement.
• Timeline : Key milestones and objectives from the initial setup through the first year of operation and beyond.
• Management: Information on who manages the daycare, detailing their roles, experience in early childhood education, and business management.
• Financial Plan: Projects the daycare’s 5-year financial performance, including revenue projections, profit and loss statements, cash flow analysis, and balance sheet, aiming for significant growth and profitability by the target year.

Daycare Business Plan Template (Download)

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary serves as the gateway to your daycare business plan, providing a succinct overview of your daycare center and its offerings. It should highlight your market positioning, the variety of child care and educational services you provide, its location, size, and a sketch of daily operations.

This section should also delve into how your daycare will integrate into the local community, including an analysis of the number of direct competitors in the area, identifying who they are, along with your daycare’s distinctive features that set it apart from these competitors.

Moreover, you should incorporate details about the management and co-founding team, outlining their roles and contributions to the daycare’s success.

Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be included here to offer a clear vision of your daycare’s financial strategy.

Daycare Business Plan Executive Summary Example

Business Overview

In the  business overview  section of a daycare’s executive summary, it’s vital to present a comprehensive picture of the daycare’s operations.

This includes the facility’s location, size, amenities, the qualifications of the educator team, child capacity, and pricing structure. Key aspects to highlight are the features that contribute to a nurturing and educational environment, such as indoor and outdoor play areas, sensory rooms, and nap zones. The qualifications and number of educators are crucial for ensuring quality care and education.

This section should also outline the daycare’s capacity to accommodate children and the  pricing strategy , reflecting its commitment to providing accessible and high-quality childcare services.

Example: Little Explorers Daycare, located in [Location/City/Neighborhood], spans 5,000 sq. ft. and offers a stimulating learning environment with dedicated play and learning zones. The daycare boasts a team of 5 certified educators, ensuring a low child-to-educator ratio. Licensed for up to 60 children, the facility provides flexible childcare options with competitive rates, catering to the needs of the community.

Market Overview

The  market analysis  section should include an assessment of the childcare industry’s size, growth trends, average costs, and key  market trends .

This part of the executive summary is crucial for understanding the industry’s dynamics and the daycare’s position within it. Trends such as the rising demand for early childhood education programs and employer-sponsored daycare benefits are important to highlight, as they indicate evolving consumer preferences and potential growth areas. An analysis of the  competitive landscape  is also vital for identifying the daycare’s unique selling points and potential areas for differentiation.

Example: The US childcare market, valued at $60.4 billion, is characterized by its essential demand for quality services. With approximately 600,000 daycare centers nationwide, Little Explorers Daycare competes in a robust market. Its focus on specialized curriculums and child development tracking sets it apart in an industry where differentiation is often based on curriculum quality and additional services.

Management Team

This section introduces the key figures leading the daycare, highlighting their educational background and experience.

The management team’s expertise in early childhood education and business management is critical for the daycare’s operational success and strategic direction. This part of the summary should instill confidence in the team’s ability to provide high-quality childcare and effectively manage the business.

Example: The Director, a co-founder with a Master’s in Early Childhood Education and 10 years of teaching experience, oversees the educational program. The Business Manager, also a co-founder with an MBA and expertise in entrepreneurship, handles the operational and financial aspects of the daycare.

Financial Plan

The financial plan overview provides insight into the daycare’s financial goals and projections.

This section outlines the revenue targets and profit margins, reflecting the daycare’s financial health and potential for profitability. It includes specifics such as aiming for $1.9 million in yearly revenue and an 18% profit margin by 2028.

This section should demonstrate how the daycare plans to achieve these financial objectives through strategic enrollment growth, operational efficiency, and quality service provision.

Example: Little Explorers Daycare aims to achieve $1.9 million in annual revenue with an 18%  EBITDA  margin by 2028. This goal will be supported by expanding enrollment, maintaining high standards of childcare, and implementing efficient business management practices to optimize costs and enhance revenue.

For a Daycare, the Business Overview section can be effectively divided into 2 main components:

Building & Location

Briefly describe the daycare’s facility, focusing on its safety, child-friendly design, and the stimulating environment that it offers to children.

Mention the daycare’s location, emphasizing its accessibility and the convenience it brings to parents, such as proximity to residential areas or ease of drop-off and pick-up. Explain why this location is beneficial in drawing your target clientele, particularly parents who prioritize convenience and safety in their choice of daycare.

Pricing & Educators

Detail the range of childcare and educational services provided, from basic care for infants to preschool programs and after-school care for older children. Outline your pricing strategy , ensuring it aligns with the quality of care and education provided and is competitive within your market segment.

Highlight any special programs, discounts for siblings, or membership deals that offer additional value to families, fostering long-term relationships and loyalty among your clientele. Discuss the qualifications, experience, and approach of your educators and staff, underlining their role in creating a nurturing and educational environment for the children.

Industry size & growth

In the Market Overview of your daycare business plan, start by examining the size of the childcare industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying opportunities for expansion, particularly in regions with increasing numbers of working parents or areas underserved by quality daycare facilities.

Key market trends

Proceed to discuss recent market trends , such as the growing demand for early childhood education, the importance of developmental programs, and the preference for daycares that offer flexible hours and holistic child development approaches.

For example, highlight the need for services that cater to different developmental stages and incorporate educational curriculums, alongside the rising popularity of daycares that focus on sustainability and health, such as offering organic meals or eco-friendly play areas.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your daycare in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your daycare’s unique selling points, essential for differentiating your business in a competitive market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying and Categorizing Competitors

Initiate the competitive analysis by cataloging various local childcare services. Beyond traditional daycare centers, include in-home childcare providers, preschools, Montessori schools, and specialized educational programs focused on early childhood development. Also, consider alternative childcare solutions like nanny services or after-school programs, as they might indirectly compete for parental trust and enrollment.

Leverage digital platforms and online tools to map out the geographical presence of these competitors. Extract insights from customer reviews available on platforms such as Google Reviews, Yelp, or dedicated childcare review websites. Positive reviews highlighting a competitor’s dedicated staff or emphasis on a nurturing environment signal  strengths  in their service offerings.

Daycare Competitors’ Strategies

A meticulous examination of various aspects of competitor operations is imperative:

• Educational Philosophy and Curriculum:  Evaluate the educational approach and curriculum structure. A daycare center with an emphasis on bilingual education or a holistic developmental approach might attract parents seeking specialized learning opportunities for their children.
• Staffing and Qualifications:  Assess the qualifications and certifications of daycare staff. Highlighting a team of experienced and well-trained early childhood educators can be a significant competitive advantage in assuring parents of quality care and education for their children.
• Pricing Models and Services:  Conduct a comparative analysis of pricing models and the spectrum of services offered. Does a competitor provide additional services such as transportation, meal plans, or extracurricular activities as part of their package?
• Marketing and Outreach Strategies:  Analyze the effectiveness of competitors’  marketing strategies . Evaluate their online presence, community engagement initiatives, or collaborations with local events aimed at engaging parents and attracting prospective clients.
• Facilities and Amenities:  Consider the facilities and amenities offered. A daycare center with secure outdoor play areas, advanced security systems, or partnerships with extracurricular activity providers may stand out from competitors.

What’s Your Daycare’s Unique Value Proposition?

Reflect profoundly on what sets your daycare apart. This could be innovative teaching methodologies, a focus on environmental sustainability, or specialized programs catering to children with diverse needs.

Gather insights from parent feedback, industry trends, and  market research  to identify gaps in the market. For example, if there’s an emerging demand for daycares focused on mindfulness and emotional intelligence, consider integrating such practices into your curriculum.

Tailor your daycare’s services and facilities to match the demographics and preferences of your location. An urban daycare might prioritize flexible schedules and proximity to workplaces, whereas a suburban daycare might emphasize larger outdoor spaces and nature-based learning experiences.

First, conduct a SWOT analysis for the daycare , identifying Strengths (such as a qualified and caring staff, comprehensive educational programs), Weaknesses (like limited space or high operating costs ), Opportunities (for instance, a growing demand for quality early childhood education), and Threats (such as changes in government regulations or competition from new daycares).

Marketing Plan

Next, formulate a marketing strategy that details how to attract and retain families through targeted outreach, referral incentives, a strong online presence, and participation in community events.

Marketing Channels

Employ a mix of marketing channels to reach potential parents and engage effectively with the community.

Digital Marketing

• Social Media Presence:  Leveraging various platforms like Facebook, Instagram, LinkedIn, and Twitter allows you to share engaging content showcasing daily activities, educational insights, testimonials from satisfied parents, and detailed information about your programs and events.
• Website and SEO:  Maintaining an informative, user-friendly website that provides comprehensive details about your daycare’s philosophy, curriculum, staff qualifications, enrollment procedures, and upcoming events. By optimizing your website for local SEO, you enhance visibility in online searches, ensuring that interested parents find your center easily.
• Email Marketing:  Implementing an effective email marketing strategy allows you to regularly communicate with parents, providing updates about enrollment, upcoming events, educational resources, parenting tips, and testimonials. This strategy fosters engagement, builds trust, and maintains a consistent line of communication with parents considering your daycare services.

Local Advertising

• Community Engagement:  Foster connections within the local community by participating in neighborhood events, sponsoring school activities, or organizing open houses and tours to showcase your daycare’s facilities and programs.
• Partnerships:  Collaborate with local businesses, pediatricians, schools, or community centers to establish referral programs, joint events, or educational workshops, thereby increasing your daycare’s visibility and credibility.

Promotional Activities

• Special Enrollment Offers:  Create promotions like ‘Early Bird Registration Discounts,’ ‘Sibling Discount Programs,’ or ‘Refer-a-Friend Incentives’ to attract new enrollments and encourage parent referrals.
• Open House Events:  Host periodic open house events inviting prospective families to tour your facility, meet staff members, and learn about your curriculum and approach to childcare.

Sales Channels

Implement effective sales strategies to convert inquiries into enrollments and ensure customer satisfaction.

Consultative Selling

• Tours and Information Sessions:  Offer guided tours of your daycare center, allowing parents to experience the facilities and interact with teachers. Conduct informative sessions addressing parents’ concerns and questions about your programs, curriculum, safety measures, and daily routines.
• Personalized Approach:  Tailor your communication with parents based on their specific needs and concerns. Highlight how your daycare meets their child’s developmental needs and addresses any apprehensions they might have.

Enrollment Process Efficiency

• Online Enrollment:  Simplify the enrollment process by offering an intuitive, user-friendly online registration system accessible via your website. Ensure it provides all necessary information and offers secure payment options for a seamless experience.
• Enrollment Incentives:  Provide incentives like waived registration fees, trial days, or discounts on the first month’s tuition to encourage parents to enroll their children at your daycare.

Retention Strategies

• Parent Engagement:  Foster a sense of community by organizing family-friendly events, parent-teacher conferences, workshops on child development, and educational seminars. Encourage parental involvement through volunteering opportunities or participation in daycare activities.
• Quality Service Delivery:  Focus on delivering exceptional childcare services, ensuring the safety and well-being of children, providing engaging learning activities, maintaining open communication with parents, and offering regular progress updates about their child’s development.

Strategy Timeline

Lastly, draft a precise timeline that marks crucial milestones for the daycare’s launch, marketing initiatives, enrollment targets, and growth plans, ensuring the business progresses with clear goals and intent.

The Management section focuses on the daycare business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the daycare business toward its financial and operational goals.

For your daycare business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your daycare business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your daycare business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Daycare Business Plan Template

Download our template and create a business plan for your daycare!

Updated September 22, 2023 Reviewed by Brooke Davis

When you are ready to start a daycare business, you need an effective plan outlining how to get there. High-quality child care is in high demand, but you must be prepared for the challenges of starting a new business.

A solid business plan will get you off on the right foot before you even open the doors of your new facility.

With these helpful tips, you can learn how to make a business plan for a daycare center. Whether you are looking to watch over young children or even need a dog daycare business plan, Legal Templates is here to help you get started.

Why You Need a Business Plan for Your Daycare Business

How to write a business plan for a daycare.

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Daycare Business Plan Sample

A business plan sets the stage for how you will operate your business and how you will get it running. A daycare is no different. Opening a daycare requires intensive planning, legal compliance, and understanding of your market.

A daycare business plan template walks you through the steps to build a proper path forward. Every successful business is planned correctly, not as you go along.

A sample daycare business plan pdf or Word document lays it out for you. You can learn how to put it together and what you must include. Many business plans help you understand what you must do to prepare.

Some are designed to recruit potential investors to your cause. Either way, you need a business plan to prepare you for the challenges and successes ahead.

Knowing how to write your daycare business plan can be tricky without some help. You may not have done this before, but a daycare business plan example can help.

Follow these writing tips in each section to create a strong business plan for your future daycare.

1. Executive Summary

The initial section of your business plan is the executive summary. This part of your plan is an introduction for whoever reads it. It is designed to offer an overview of the remaining sections. It should be concise and add only summary details—this is not the section for intensive information or data.

The executive summary will highlight what your daycare business will look like and the most crucial section of your entire plan.

This section may provide information such as:

• A business address
• Phone number, email address, and other contact information
• List of owners
• Banking information
• Start date for the daycare
• Client base
• Market niche
• Factors for success

The executive summary lets you make a case for why your particular daycare will be successful and competitive. It is also the section that helps you sell yourself and your business to potential investors who may play a critical role in starting your daycare.

Provide a mission statement that reflects your goals for the daycare and your motivation for starting your business.

2. Management Team

Your daycare business plan should include important information about your management team. The first part of this section may address ownership of the business itself. It should outline all essential ownership details, such as:

• Legal names of every owner
• Each owner’s proportionate share
• The format of ownership percentage (i.e., stocks, capital investments, etc.)
• The format of the business (Corporation, LLC, etc.)
• Contact information for each owner

You want everyone who reads this business plan to know who has a stake and how their interests are represented. These details are a crucial part of business formation and preventing costly legal disputes in the future.

The management team section should also include the profiles of your management staff. These people will run the business daily, and they should be properly vetted before being put in charge.

Your business plan should list the management teams’:

• Names and positions
• Summary of responsibilities
• Credentials and education background
• Prior employment or experience
• Early childhood education licensing or other credentialing
• Management experience
• Salary and benefits
• Past success in a similar role

This information should demonstrate why these are the right people for the job. Not only does it help you know how your business will run, but it also shows others you have a proper plan in place for your daycare.

3. Products and Services

This section lets you talk about why you are starting this business in the first place. You will outline the services or products you intend to sell to consumers. For a daycare, it should outline the following:

• Who is being cared for: Children, elderly adults, or pets?
• Business hours
• Staff costs and required credentials
• Will you offer food, diapers, and other child-care products?
• How will you measure sales metrics

Daycare is typically considered a service, but product sales are also often a part of this model. Your plan should adequately account for how you will handle this dual purpose and how it fits into your business model.

4. Customers and Marketing

You must identify your market and how you will get customers into your daycare. This section will focus on your area’s need for daycare services and the types of customers you expect to get.

Identification of customers is a vital part of a business plan and should include details like:

• How many parents need childcare services?
• What costs can families be expected to pay for your services
• The community you will target
• Demographic data for potential customers

With your customers in mind, you can focus on your marketing strategies. You want to differentiate yourself from competitors and ensure the community knows your new business. The daycare business plan must outline how you will achieve these goals.

A marketing strategy should combine both traditional and digital marketing methods, including:

• Open houses
• Word-of-mouth advertising
• Advertisements in the paper or yellow pages
• Billboards or other ads
• Television, radio, or internet advertisements
• Social media pages

5. SWOT Analysis

A SWOT analysis will address your daycare’s strengths, weaknesses, opportunities, and potential threats. This analytical method examines your company and how it will operate.

It puts each of the four metrics into a visual matrix to help prospective business owners quickly identify favorable and unfavorable factors that may affect their business venture.

A SWOT analysis should focus on how your daycare services can perform against competitors. It may address factors like:

• Any threats the daycare may face
• Competitive advantages and why they would be successful
• Areas that may be improved over time
• Technology or resources the company may use to increase efficiency
• Internal factors that may affect economic success

Detailed SWOT sections show investors you have done your homework and give you valuable data to make informed business choices.

6. Financials

A business plan should address the unique financial situation you face. Your daycare business plan should demonstrate your break-even amounts and expected profit margins.

It will also address the costs and the areas of revenue you expect. You will want to address the following:

• Enrollment fees
• Payment plans
• Cost of supplies and materials
• Employee costs
• Regulatory costs
• Additional program offerings and revenue
• Necessary loans or capital improvements

A well-developed budget can demonstrate expected cash flows versus expected expenditures. Knowing how to handle these costs will be incredibly helpful in starting your daycare.

7. Operations

Your operational plan should outline specific procedures your business and staff will follow. It will list employees and those in management positions and their responsibilities.

As in your management section, a detailed “chain of command” is essential. Staff are an important part of your operations and should be detailed here.

One of the most important aspects of a daycare operation is its location. It would be best if you addressed the following:

• The facility’s address
• The type of area it is in (residential, commercial)
• The space available and amenities
• Why is it a prime location
• Accessibility to the community for drop-off

You should also list your business hours and the services you will have available at different times. Child daycare centers differ in when they offer care—whether during the day, evenings, or even on weekends.

If you are doing other forms of daycare, you may even utilize late or overnight hours. You can decide how you run your business, but operations should be clearly outlined in your business plan.

8. Appendix

The appendix section allows you to include other documents that add to your business plan. They may include legal documents like licensing credentials, insurance information, and business formation documents.

Additional documents in this area are meant to support your business plan. The appendix might also include the following:

• Reference letters
• Photographs of the facility, locations, or general area
• Market research data
• Compliance Requirements

The appendix is a flexible section that lets you add supporting documents and other relevant information. Only add details that are helpful to your business plan. The appendix does not need to be lengthy or filled with fluff.

Legal Templates has the daycare business plan sample you need to construct your plan. With this sample at your disposal, you can formulate a business plan for your daycare to show to investors or for your purposes.

You may also use a business plan builder template to help you construct your daycare business plan step by step. See the sample below to help you get started.

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Daycare Business Plan

Looking to open a daycare center? Check out this sample daycare business plan and use the free template provided as a guide. This resource will offer valuable insights at every step of the way.

Did you know that the daycare industry in the United States reached a staggering $59.87 billion in 2023 ? With more parents joining the workforce, the demand for high-quality childcare continues.

Having a daycare center isn’t just about childcare—it's about creating a nurturing environment where children can learn, grow, and thrive. So if you're someone passionate about childcare and considering starting your own daycare center, you're in the right place.

In this article, we’ve provided a practical daycare business plan example that can assist you in developing an effective plan today.

Excited to start? Let’s go!!!

Daycare Business Plan Example

Launching and growing a successful daycare business depends on a well-crafted business plan —the only way to ensure your business grows.

Let's get into the Little Stars Daycare Center Business Plan and gain practical insights for drafting each section of your plan.

Executive summary

Little Stars Daycare Center operates as a Limited Liability Company (LLC), providing legal protection and flexibility. It is solely owned and managed by Sarah Thompson, ensuring personalized and dedicated leadership.

Little Stars Daycare Center is dedicated to providing a nurturing and educational environment for children aged 6 months to 5 years. Located in Springfield, our daycare center offers a comprehensive curriculum.

We combine play-based learning with structured activities designed to promote cognitive, social, and emotional development.

Mission statement

Our mission is to create a supportive and stimulating environment where children can develop essential skills, build confidence, and cultivate a lifelong love for learning.

Market analysis

The daycare market in Springfield and surrounding areas targets working parents and guardians seeking reliable, educational, and safe daycare solutions. The industry is seeing increased demand as more households have both parents working.

Key competitors include several established daycare centers, but Little Stars Daycare Center plans to stand out through its holistic child development approach, experienced staff, and commitment to a safe, inclusive environment.

Products and services

Little Stars Daycare Center offers:

• Flexible care options to accommodate different family schedules.
• Comprehensive educational programs that create cognitive, social, and emotional development.
• Safe and engaging environment for school-aged children during after-school hours.
• Fun and educational summer programs to keep children active and learning during school breaks.
• Classes in music, art, and languages to enhance children's learning experiences and creativity.

Marketing and sales strategy

• Marketing plan: A mix of online (social media, website, local parenting groups) and offline (flyers, brochures, open house events, local collaborations) efforts.
• Sales strategy: Personalized tours, referral programs, and trial periods to attract and retain families.
• Pricing strategy: Competitive pricing, flexible payment plans, and discounts for siblings and referrals.
• Distribution channels: Direct enrollment through the website or in person, as well as community partnerships for wider reach.

Financial highlights

Our detailed financial projections illustrate our path to profitability within the first year, with significant growth in net profit over the following two years.

Funding request

We are seeking $150,000 in funding to cover essential expenses including facility renovations, licensing and permits, staff training, educational materials and equipment, marketing efforts, as well as initial operational costs.

This investment will ensure we provide a high-quality, safe, and engaging environment for our community.

Business description

Business concept.

Little Stars Daycare Center is a premier facility in Springfield. We serve children aged 6 months to 5 years. Our center is easy to reach from residential neighborhoods and business districts. This prime location is convenient for working parents. We offer a mix of play-based learning and structured educational activities.

Our goal is to create cognitive, social, and emotional growth. Our curriculum meets the needs of different age groups, providing the right level of stimulation and challenge for each child.

Background information

Sarah Thompson, the founder of Little Stars Daycare Center, brings over a decade of experience in early childhood education and daycare management. Driven by her passion for nurturing young minds, Sarah established Little Stars to provide a high-quality, holistic approach to early childhood education.

Recognizing the growing demand for reliable daycare services in Springfield, she envisioned a center that not only offers exceptional care but also prepares children for future academic and life success.

Vision statement

To be the leading daycare center in Springfield, known for our commitment to quality care, innovative programs, and the holistic development of every child in our care.

Business goals & objectives

• Provide exceptional childcare promoting cognitive, social, and emotional development.
• Build a strong community presence and establish a trusted brand.
• Achieve financial sustainability with high enrollment and optimized operations.
• Increase enrollment by 20% in the first year.
• Ensure ongoing staff training and development.
• Achieve a 95% parent satisfaction rate.
• Complete facility renovations within six months.
• Introduce three new enrichment programs in the first year.

The daycare industry in the United States is experiencing significant growth driven by the increasing number of dual-income households and the rising awareness of the importance of early childhood education.

According to industry reports, the U.S. childcare market size soared to USD 59.87 billion in 2023 . The demand for high-quality daycare centers is at an all-time high, with parents seeking reliable and educational environments for their children.

The industry is expected to continue growing, with an emphasis on programs that combine care with structured learning activities.

Target market

Little Stars Daycare Center's primary customers are working parents and guardians in Springfield and nearby areas. They seek a reliable, educational, and safe daycare solution for their young children.

Our target market includes:

• Dual-income households
• Single parents
• Guardians who are responsible for young children
• Families who are looking for early childhood education programs

Competitor analysis

Our daycare business faces competition from several well-established businesses in this childcare industry. The key competitors are:

1) Bright Beginnings Daycare

This daycare center is well-established and has a strong reputation in the community.

Strengths: 

• Established reputation
• Comprehensive play-based curriculum
• Strong parent engagement

Weaknesses: 

• Higher child-to-caregiver ratios
• Limited availability due to high demand

2) Sunshine Kids Learning Center

This center focuses on bilingual education and boasts modern facilities.

• Focus on bilingual education
• Modern facilities
• Flexible hours.

Weaknesses:

• Higher fees
• Less emphasis on individualized care

3) Happy Hearts Preschool

Happy Hearts Preschool emphasizes early childhood education with experienced staff and positive reviews.

• Emphasis on early childhood education
• Experienced staff
• Positive reviews
• Limited outdoor play areas
• Smaller facilities lead to longer waitlists.

SWOT Analysis:

Organization and management

Little Stars Daycare Center will operate as a Limited Liability Company (LLC). This structure provides flexibility in management and helps protect personal assets from business liabilities.

Ownership structure

Sarah Thompson is the sole owner and director of Little Stars Daycare Center. As the owner, she is responsible for overseeing all aspects of the business, from daily operations to long-term strategic planning.

Profiles of key management team members

Sarah thompson, owner/director:.

Sarah Thompson brings over 10 years of experience in early childhood education and daycare management. She holds a degree in Early Childhood Education and has worked in various capacities within the daycare industry, from teacher to director.

Sarah is passionate about creating a nurturing and educational environment where children can thrive. Her leadership and vision drive the center’s mission to foster a love for learning and holistic development.

Emily Martinez, Assistant Director

Emily Martinez has 8 years of experience in daycare administration and a background in child psychology. She supports Sarah in daily operations, staff training, and curriculum development.

Emily’s expertise ensures the implementation of effective educational programs and maintains high standards of care. Her commitment to child development and administrative skills are crucial to the center’s success.

Jessica Lee, Lead Teacher

Jessica Lee is a certified early childhood educator with 5 years of teaching experience. She specializes in play-based learning and developmental activities that cater to young children’s needs.

Jessica’s passion for education and her creative approach to teaching help children achieve their cognitive, social, and emotional milestones. Her role involves designing and implementing the curriculum, as well as mentoring other teachers.

Michael Green, Operations Manager

Michael Green has a background in business administration and 7 years of experience managing daycare facilities. He oversees the operational aspects of the center, including budgeting, maintenance, and compliance with safety regulations.

Michael’s organizational skills ensure the smooth running of the daycare’s daily activities and contribute to a well-maintained and efficient facility.

Here’s our organizational chart of Little Stars Daycare Center:

Organizational chart:

Full-day and half-day childcare services

Little Stars Daycare Center offers flexible childcare options to accommodate the varying needs of parents. Our full-day program runs from 8 AM to 6 PM, providing comprehensive care and education throughout the day.

The half-day program, available in morning (8 AM to 12 PM) and afternoon (1 PM to 5 PM) sessions, is designed for parents seeking shorter childcare hours.

Early childhood education programs

Our early childhood education programs are tailored to different age groups, promoting cognitive, social, and emotional development through a blend of play-based learning and structured activities.

These programs are designed to prepare children for future academic success and foster a lifelong love for learning.

After-school care:

Little Stars Daycare Center provides after-school care for children up to 5 years old. Our after-school program includes a variety of activities such as homework assistance, arts and crafts, and physical play, ensuring a safe and engaging environment for children after their regular school hours.

Summer camps:

Our summer camps offer a mix of educational and recreational activities to keep children engaged during the summer break. The camps include themed weeks, outdoor adventures, and special guest visits, providing a fun and enriching experience for all participants.

Enrichment activities

To further enhance the learning experience, we offer a range of enrichment activities, including:

• Music classes: Encouraging creativity and self-expression through musical exploration.
• Art classes: Developing fine motor skills and creativity through various art projects.
• Language classes: Introducing basic language skills and cultural awareness.

Unique selling points:

• Holistic development focus: Emphasis on cognitive, social, and emotional growth, ensuring a well-rounded approach to early childhood education.
• Qualified staff: Experienced and certified educators and caregivers dedicated to providing high-quality care and education.
• Safe and inclusive environment: A nurturing setting that prioritizes the safety and inclusivity of all children.
• Flexible scheduling: Offering both full-day and half-day options, as well as after-school care, to meet the diverse needs of parents.
• Enrichment programs: Additional activities such as music, art, and language classes to enhance the overall learning experience.

Marketing Plan

1) online marketing:.

• Social Media: Engage on Facebook, Instagram, and Twitter with photos, videos, educational tips, and testimonials to build a strong online presence and community engagement.
• Website: Serve as a hub for information, featuring staff profiles, enrollment procedures, and a blog on early childhood education and parenting tips to improve SEO and drive organic traffic.
• Local Parenting Groups: Participate in local parenting groups on social media and forums to offer insights and promote services, building trust and reaching potential customers.

2) Offline marketing:

• Flyers and Brochures: Distribute in strategic locations like community centers, pediatrician offices, workplaces, and libraries to highlight our unique selling points.
• Open House Events: Host events for parents to tour the facility, meet the staff, and learn about programs, fostering relationships with the community.
• Local Collaborations: Partner with local businesses for cross-promotions to reach a wider audience and increase visibility.

Sales strategy

• Personalized Tours: Offer tours for families to experience the environment and ask questions.
• Referral Program: Implement a program where current families receive incentives for referring new families, leveraging word-of-mouth marketing.
• Trial Period: Provide a trial period for new families to experience our services before committing long-term, building trust, and showcasing

Pricing strategy

• Competitive pricing: Our pricing will be competitive with other local daycare centers, ensuring affordability while reflecting the high quality of care and education we provide.
• Flexible payment plans: Offering flexible payment plans, including monthly and bi-weekly payment options, to accommodate different financial situations of families.
• Discounts: Providing discounts for siblings and referrals to encourage family enrollments and word-of-mouth promotion.

Distribution channels:

• Direct enrollment: Families can enroll their children directly through our website or by visiting the daycare center in person. Our user-friendly website will facilitate online registrations and provide all necessary information.
• Community partnerships: Collaborating with local businesses and community organizations to distribute information and attract enrollments through shared networks.

Financial projections

Financial outlook: Our detailed financial projections illustrate our path to profitability within the first year, with significant growth in net profit over the following two years. The projections are based on conservative estimates of enrollment growth and expense management.

Revenue Projections

Expense Projections

Profit and Loss Statement

Financial strategy: The financial strategy focuses on maintaining a balance between revenue growth and expense management. Key elements include:

• Enrollment growth: Gradually increasing enrollment through effective marketing and community engagement.
• Cost control: Managing operational costs carefully while maintaining high standards of care and education.
• Reinvestment: Reinvesting profits into enhancing programs, facilities, and staff development to ensure sustained growth and quality.

Use of funds: The initial funding of $150,000 will be allocated as follows:

• Facility renovations: $50,000
• Licensing and permits: $10,000
• Staff training: $20,000
• Educational materials and equipment: $30,000
• Marketing efforts: $20,000
• Operational costs: $20,000

By following this financial plan, Little Stars Daycare Center is poised for steady growth and long-term success, fulfilling its mission to provide exceptional early childhood education and care.

Download the Daycare business plan template

Are you ready to create your daycare business plan but need some guidance? We've got you covered! Download our free daycare business plan template PDF and begin your journey now.

This template offers clear instructions and examples, helping you to build a strong and effective daycare business plan. Plus, it's customizable to suit your unique requirements.

Now, you’re aware of the sections and how to frame your business plan for the daycare center. But, it’s not easy to show how you’ll take responsibility for impressionable kids while running a profitable business, especially if you’ve never done this before.

But not to worry; you can consider using Bizplanr—an AI business plan generator to create business plans more efficiently.

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Frequently Asked Questions

What types of programs should I offer to attract my target market?

You should consider offering the following types of programs to attract your target market.

• Infant care
• Toddler care
• Preschool programs
• After-school care
• Summer camps
• Special needs programs

What should be included in the operations plan of my business plan?

You should include the following key components in the operations plan section of your business plan:

• Daily operational processes
• Staffing requirements
• Curriculum and program structure
• Facility management
• Health and safety procedures
• Equipment and supplies

Can I use free business plan templates for my daycare business plan?

Absolutely! You can use free business plan templates to create your daycare business plan effectively. Customize it according to your business-specific needs and preferences.

As the founder and CEO of Upmetrics, Vinay Kevadiya has over 12 years of experience in business planning. He provides valuable insights to help entrepreneurs build and manage successful business plans.

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Daycare Business Plan

As a lot of toddlers turn to preschool age, the number of enrollees in daycare also increases. As a businessman, you should see this as an opportunity. Parents spend a great deal of time selecting the best daycare for their sons or daughters. Composing a daycare business plan will keep you one step ahead of your competitors.

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What Is a Daycare Business Plan?

A daycare business plan is a written document that enumerates the goals of a childcare business and specifies the methods to accomplish them. It also includes the marketing strategy to promote the daycare and a framework detailing how they can set their daycare apart from similar businesses. This business plan prioritizes services that focus on teaching and securing the safety of the children. 

How To Compose a Productive Daycare Business Plan

Preschool parents are hard to impress. They are very critical in scrutinizing every daycare they come across. To hook these parents, devise an impressive daycare business plan that would make them choose your daycare. Taking care of children is a significant task. To make sure you can cater to the children’s needs, be careful in creating your business plan.

1. Make a Plan Outline

Start your plan outline by including a list of your goals and the corresponding procedure you plan to follow in achieving them. Your outline would serve as your draft. That said, you can list everything that comes to mind and come back to review and omit the items that don’t contribute to the effectiveness of your plan. There are available sample outline formats and templates online.

2. Study Your Market

The people you’re offering your services to are both the children and their parents. You should focus on that fact the entire process of your plan-making. You should always ask yourself, “will it be the best for the children?”, “will it satisfy the parents?”. The best way of data-gathering is by conducting an interview and through market research .

3. Run a Competitor SWOT Analysis

Aside from your market, also research your daycare competitions. What are their strengths? What about their weaknesses, opportunities, and threats? You will find out by conducting a competitor SWOT analysis on them. The data you can gather will help you to find out what your advantage and disadvantages over them are. 

4. Formulate Your Marketing Strategy

In creating your marketing strategy plan , it is advisable to appeal more to the parents because they are the ones who would decide on the final call regarding their daycare choice. Despite that, it is essential to keep your content strategy and designs child-friendly. Some marketing strategies you can try out are posting a flyer or creating an infomercial about your daycare business. 

What are the parts of a business plan?

The title page, executive summary , marketing strategy plan, business description, competition analysis, operation plan, design plan, and business budget are the parts of a business plan. Each segment of this document is necessary for ensuring the accomplishment of your objectives. Tailor your business plan depending on the nature of your business.

How can I attract parents to my daycare?

Promoting your daycare on social media is a clever way of spreading awareness about your daycare. Another way is to depend on peer-to-peer (P2P) marketing. This type of marketing entails asking your existing customers to recommend your daycare to other parents they know. Parents tend to trust other parents more when they see good results.

What are the various types of business plans?

The types of business plans vary on their purpose and on the mediums used in creating them. The miniplan, the first type, is like a summary of the whole business plan. It focuses on the top priorities of the business. The second type of plan is the presentation plan, which uses PowerPoint presentations. The third one is the working plan, and the last one is the what-if plan.

Parents want the best for their children. Now, your job is to prove that you are the best, and they would naturally pick your daycare. Proving to be the top in offering childcare services is not fun and games. It requires the best daycare business plan. Win the hearts of the parents and prepare to receive several  daycare application forms  by the start of the enrollment period. 

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Daycare Business Plan Template

It’s no secret—the demand for quality childcare is on the rise due to more parents heading back to work.

So, if you’ve ever thought of providing a safe and nurturing environment for children, now is the right time for you to start a daycare center!

However, establishing a successful daycare business takes more than just a passion for childcare. Well, it takes a solid business plan to stand out in the crowd and make it thrive as there are 568,000 daycare centers in the US alone.

Wondering how to create a daycare business plan?

Explore this daycare business plan template that walks you through all the key steps to draft an effective business plan for your daycare.

But first, let’s understand…

What is a daycare business plan?

A daycare business plan is the equivalent of a detailed blueprint for your business journey. This document clearly summarizes what your daycare stands for and outlines the strategies to launch childcare services.

Typically, it includes all the key elements of your daycare business, such as its concept, goals, target audience, marketing strategies, management structure, and financial projections.

Overall, this plan serves as a guide to establish, manage, and grow your daycare center effectively as well as ensures what you’re getting yourself into.

Why is a daycare business plan important?

A well-crafted daycare business plan is essential as it helps you add substantial value to your business at every stage. Here’s how it can make a difference:

1. Gives you clear direction

Starting and growing a daycare involves making several decisions, from choosing a location to deciding on the services you’ll offer.

Creating a business plan forces you to evaluate the right options, make informed decisions, and track progress over time. Plus, it helps you turn conceptual goals into definite objectives.

2. Helps you understand the target audience

For a successful daycare, you must understand the needs of parents and children in your community. Writing a business plan lets you organize your research and know your target market better.

Additionally, your plan ensures that you fulfill the needs of the families you serve, whether it’s infant care or after-school programs.

3. Lets you analyze the competition

While operating in the competitive market, you need to know what other popular daycare centers in your city offer. Developing a detailed business plan allows you to identify what your competitors do well and where they fall short.

Further, it helps you specify areas where you can stand out and position your daycare effectively by providing extended hours or unique programs.

4. Attracts and convinces investors

If you want to secure funding for starting and growing your daycare services, a business plan is crucial. A well-written business plan provides detailed financial projections and illustrates how your daycare will make money.

It also showcases the financial viability of your daycare services to potential investors or lenders and makes it easier to gain their support.

Simply put, preparing a detailed daycare business plan isn’t just a formality. But it’s a clear roadmap to navigate the intricacies of running a successful daycare, from startup to expansion.

How to write a business plan for daycare?

Preparing a good daycare business plan consists of a certain number of well-defined sections to articulate your childcare services.

Here’s a step-by-step guide to writing an excellent business plan.

1. Executive summary

An executive summary is one of the most important sections of your daycare business plan that serves as a pitch for potential investors who can provide you with funds for your childcare center.

Generally, it concisely summarizes your entire daycare business and previews everything you lay out inside the plan. Here’s what your daycare executive summary will include:

• Registered business name along with its location
• Daycare business concept and goals
• Mission-vision statements
• Target market & competition
• Marketing efforts & USPs
• Financial highlights

Overall, your plan summary provides a high-level overview of your daycare services and captures readers’ interest. So, be sure to make it short, simple, and persuasive as well as aim to keep it under two pages.

2. Company overview

The company overview section provides an in-depth understanding of your daycare business and its core values.

It covers all your business-specific details and foundational elements, from the daycare concept to its growth potential and future plans. This will help readers or investors better understand your daycare and make informed decisions.

To plan this section, you should consider emphasizing on the following:

• Type of daycare center you run (in-home, center-based, pre-school, after-school care, or daycare franchise)
• Legal structure (limited liability company, partnerships, or sole proprietorship)
• Location and reason for choosing that place
• Vision and mission statement
• Background history or milestones achieved (if any)
• Short-term goals & long-term objectives

Besides that, discuss any regulatory requirements and legal compliances involved in starting a daycare center. Also, ensure you follow health & safety policies, such as childproofing measures or illness prevention.

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3. Market analysis

The market analysis section provides a comprehensive overview of the childcare industry, its target audience, key competitors, and local market trends.

So, first, you’ll need to conduct thorough market research and explore the specific market niche in which your daycare intends to operate. Doing so will help you understand the demand for childcare services and the clients you will serve.

For instance, your target customers could be parents or guardians who consistently need safe and reliable daycare for their kids while they’re working or occupied with other duties.

Here’s a list of primary customer segments for a childcare business:

After that, shed light on the competition in your chosen area and evaluate the strengths & weaknesses of the other childcare centers.

Further, clearly articulate the competitive advantages and explain how your daycare stands out in the market. If required, perform a SWOT analysis to identify the internal & external factors that might affect your daycare.

4. Services offered

This section offers a detailed description of all the services your daycare will provide. It helps you demonstrate how your daycare will meet client needs and preferences.

For example, highlight all your child care services like infant care, full-day care, half-day care, after-school care, or special needs care.

If applicable, consider outlining any unique programs, such as educational curriculum, language classes, early childhood education, STEM (science, technology, engineering, and mathematics) activities, or arts & crafts.

Moreover, don’t forget to describe your operating hours, days of operation, and pricing strategies for each service offering.

5. Sales and marketing strategy

Your sales and marketing strategy outlines how you’ll promote your childcare business and reach your target customers.

It covers all the traditional advertising methods and digital promotional techniques you might use to attract families or working parents. This will help you build your brand’s identity and sustainable value in the market.

Here are some strategies you might include in your daycare marketing plan:

• Social media marketing (Instagram, Facebook, YouTube)
• Email marketing campaigns
• Collaborations or partnerships with local businesses
• Offline advertising in local newspapers or radio stations
• Loyalty programs or community events
• Regular communication & personalized customer service

Simply put, your marketing plan allows you to focus more on building and maintaining a loyal customer base as well as ensuring your daycare’s long-term success.

6. Management & organizational structure

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

So, introduce the daycare owners, key managers, the team of childcare providers/caregivers, and administrative members in this section. Include their roles and responsibilities, educational qualifications, skills, as well as industry experience.

Furthermore, explain how each member fits their role and how their expertise benefits your business’s growth and success.

Then, try to create an organizational chart that illustrates how your team is structured and the relationships between key roles. Here’s an example:

You can also explain the compensation plan as well as mention advisory board members if your team is lacking. Highlight their specific expertise in providing strategic guidance to your childcare.

7. Operations plan

The operations plan provides a quick overview of the day-to-day activities and procedures required to run your childcare business smoothly and efficiently.

A well-written operations plan will help you and your team define the responsibilities and manage everyday processes. This will also allow you to meet business goals and client commitments while ensuring optimal results.

So, consider including the following details in your business operations plan:

• Staffing requirements & training
• Daily operations (opening/closing procedures, child drop-off & pick-up, meal times, activity schedules)
• Daycare facility and ambiance
• Cleaning schedules & equipment maintenance
• Customer service protocols

In short, this section presents your childcare’s operational intricacies and clarifies how they directly impact your service quality. So, don’t skip any essential points.

8. Financial plan

Financial planning is mandatory while writing a childcare business plan as it helps you lay a strong foundation for the financial health and sustainability of your daycare.

So, in your daycare financial plan , provide a detailed analysis of your financial projections for the next 5-7 years.

Consider incorporating these key financial statements and reports:

• Startup costs
• Revenue forecasts
• Operating expenses
• Cash flow estimates
• Break-even analysis
• Funding needs and sources
• Contingency plans

By developing realistic and comprehensive financial projections, you show potential investors or lenders that you have a solid understanding of the financial requirements and challenges of running a successful daycare.

Further, it helps you build confidence and credibility as well as increases your chances of securing the necessary support for long-term success.

For instance, you may consider formulating the key financial projections as shown below:

Income statement

Cash flow statement

Balance sheet

Download a sample daycare business plan template

So, ready to kickstart your daycare business plan writing? But need more assistance? Well, here you go; download our free daycare business plan PDF to get started.

It’s a modern business plan template that has been designed specifically for daycare businesses. It comes with step-by-step guides and examples to help you develop your own plan.

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Daycare business plan summary

Now that we’ve discussed all the key sections of a daycare business plan and how to draft them, it should be much easier for you to write a professional business plan.

However, if you’re still confused or need extra help in presenting your plan, consider using modern business plan software . It helps you create an actionable and comprehensive business plan more effectively and quickly.

So, wait no longer; start planning today!

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Frequently Asked Questions

What are the key factors investors look for in a daycare business plan.

The following are the key factors that investors look for in a daycare business plan:

• Market research & competitive landscape
• Financial performance and projections
• Unique Selling Propositions (USPs)
• Relevant experience in the childcare industry
• Funding requirements and use of funds
• Marketing plan

What to include in your daycare business plan?

While writing a solid daycare business plan, consider including the sections mentioned below:

• Executive summary
• Business description
• Daycare industry and market research
• Service description
• Sales and marketing plan
• Management team
• Operations plan
• Financial projections

How long should my daycare business plan be?

The length of a detailed daycare business plan might be 15-30 pages that cover all the essential elements like business goals, target market, services offered, operations plan, marketing strategy, and financial plan.

However, the business plan length may vary depending on the complexities of your services and the level of detail required.

How to make a childcare business plan?

Follow these steps to make a childcare business plan:

• Provide a brief summary of your childcare business, including its mission, vision, goals, and strategies to achieve them.
• Describe your business concept, child care services, and unique offerings.
• Analyze the local market and identify the target audience, key competitors, as well as the demand for childcare.
• Outline the business structure and shed light on the management team, including roles & responsibilities, qualifications, and experience.
• Highlight strategies you’ll use to attract and retain clients.
• Include financial needs, startup costs, revenue forecasts, and operating expenses.
• Discuss day-to-day operations, staffing & training, regulatory requirements, and childcare facilities.

How often should I update my daycare business plan?

It’s important to review and update your daycare business plan regularly, at least once a year, or more often as your business evolves. Additionally, you may update your business plan whenever significant changes happen in the regulatory environment or competitive landscape.

About the Author

Upmetrics Team

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

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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.

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

Important Assumptions

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

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

Key Financial Indicators

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

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

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

Break-even Analysis

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

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

Projected Profit and Loss

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

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

The detailed monthly projections are included in the appendices. 

Projected Cash Flow

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

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

Projected Balance Sheet

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

Business Ratios

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

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