Daycare Business Plan Sample

11/9/2017 Daycare Business Plan Sample | Legal Templates
Daycare Business Plan Sample

BYLEGAL TEMPLATESJANUARY 4, 2016BUSINESS PLAN SAMPLES
Executive Summary
SUMMARY
My Daycare Center is a start-up limited liability corporation

(LLC) owned by Andrea Case and doing business in
Gaithersburg, Maryland. My Daycare Center will offer a secure,
loving environment for children ages three months to six years
and will be staffed by child care professionals trained in early
learning programs and curricula.
CREATE YOUR FREE DAYCARE BUSINESS PLAN
Given our teams professional

training, credentials and
distinguished experience, we will
offer the same quality of day care
services and programs as well as the
accreditations that the large,
national chains do, but at
approximately 25% lower prices.
Concept art for the My
Daycare Center logo
https://legaltemplates.net/blog/daycare-business-plan-sample/ 1/41
We intend to diversify our service offerings after our first year in

business, thereby adding new revenue streams and increasing
operating income.
This document explains the opportunity and business case for

starting and operating our new independent day care facility,
and details the need for $40,000 in investment capital in order to
properly fund the operations and provide an attractive return to
investors.
MANAGEMENT TEAM
Andrea Case is the founder, owner and Managing Member of My

Day Care Center LLC. She will serve as the Center Director
(often abbreviated as CD), and is therefore responsible for all
of the centers operations as well as its chief fiduciary. Ms. Case
has spent her entire professional career in child care and
development, and most recently was the Child Care Teacher at
Gaithersburg Child Care Excellence (an accredited full service
day care center) from 2008 until 2012.
LT TIP
Since Andrea and Ana

formed My DayCare
Center as an LLC, they
decided tosign an LLC
Operating Agreementto
clarify how business
decisions would be
made.
Ana Vieco will serve as the centers Child Care Teacher (as
defined by Maryland state regulations), and will develop the
centers educational programs and curricula and lead the
learning sessions on-site. A native of Colombia, she is a
dedicated, positive and outgoing caregiver who has been
extensively trained in child development and early-childhood
education.
PRODUCTS AND SERVICES
My Day Care Center will be a locally-owned, nationally-

accredited full-service facility, catering primarily to families with
children aged three months to six years (pre-kindergarten) and
who are interested in bi-lingual learning (English and Spanish).
CUSTOMERS
We plan to target working families with young children in the

Gaithersburg, MD area. According to the 2010 U.S. census, there
were approximately 15,900 families and 24,100 households in
Gaithersburg, and we estimate about 20% of the households or
4,800 households have children in our target age range.
Our center will be conveniently located to most of these families,

a significant number of which are Hispanic or Latino, a key
demographic in this community.
REQUIRED FUNDS
The company seeks $40,000 in start-up capital in exchange for

15% of the Member Interests in My Day Care Center LLC. The
funds will be primarily be used to secure the centers lease,
improve the facility, and purchase and lease furniture and
furnishings, including safety and security products.
The company has no loans and, if the $40,000 of equity is raised,

we do not anticipate needing acommercial or personal loan.
Our base case financial projections show about $350,000 in year

three revenue, almost $60,000 in operating income and a
valuation of about $250,000.
CREATE YOUR FREE DAYCARE BUSINESS PLAN
Company and Financing
COMPANY OVERVIEW
My Day Care Center LLC is a single member limited liability

company incorporated in the state of Maryland in September
2014.
We intend to open our day care center on the west side of

Gaithersburg, MD in close proximity to the affluent
communities of Kentlands and Lakelands, but still within 15
minutes of Shady Grove Metro station and the historic East
side neighborhoods.
MANAGEMENT TEAM
ANDREA CASE, FOUNDER AND CENTER DIRECTOR
Andrea Case is the founder, owner and Managing Member of

My Day Care Center LLC.
She will serve as the Center Director

(often abbreviated as CD), and is
therefore responsible for all of the
centers operations as well as its chief
fiduciary. Ms. Case has spent her
entire professionalcareer in child
careand development, and most
Andrea Case
recently was the Child Care Teacher
at Gaithersburg Child Care Excellence (an accredited full
service day care facility) from 2008 until 2012.
She is a Level 4 Maryland Child Care Credentialed Provider

and she graduated Magna Cum Lauda in 1998 from Towson
State University with a B.A. in Early Education.
JOHNVIECO, FOUNDING EMPLOYEE AND LEAD

CHILD CARE TEACHER
John Vieco will serve as the centers Child Care Teacher (as
defined by Maryland state regulations), and will develop the
centers educational programs and curricula and lead the
learning sessions on-site.
He is a dedicated, positive and

outgoing caregiver who has been
extensively trained in child
development and early-childhood
education. Prior to joining Andrea at
My Day Care Center, Mr. Vieco
taught kindergarten for six years in
John Vieco
the Montgomery County Public
School System, one of the most highly-regarded public school
systems in the state.
He graduated from University of Maryland at College Park

with a B.A. degree in education and he is a Level 2 Maryland
Child Care Credentialed Provider. A native of Bogota,
Colombia, Mr. Vieco is fluent in Spanish, which will benefit
the many Spanish-speaking parents in the Gaithersburg area.
He will also translate our marketing materials into Spanish as

we plan to target Spanish-speaking parents.
ROBINFORD, PRESCHOOL SPECIALIST
Ms. Ford is a preschool teacher and is

director-qualified for infants and
toddlers. She is a Level 1 Maryland
Child Care Credentialed Provide who
will assist Ms. Vieco on a part-time
basis.
Robin Ford
In 2014, she earned a 90 hour child
care certificate and is currently working towards a B.S. in
psychology.
BO SCHWEIKERT, SAFETY AND EMERGENCY

PREPAREDNESS
Mr. Schweikert retired from the Kensington, MD volunteer

fire department after 28 years as Assistant Fire Marshall and
certified Emergency Medical Technician.
As an unpaid advisor, he agreed to

volunteer his time and expertise in
developing and testing commercial
facilities for the benefit of our children
and staff. He has been instrumental in
creating a robust set of safety policies
and procedures for both the inside

Bo Schweikert
facility as well as the playground and
he will monitor and test our emergency procedures at least
twice a year.
As our operations and customer base grows, we will

periodically hire part-time teachers and counselors as third-
party contractors in order to maintain an attractive child to
teacher ratio.
REQUIRED FUNDS
We anticipate needing about $30,000 in start-up funding in

order to properly capitalize My Day Care Center. The funds
will primarily be used for:
Lease deposit and facilities improvement;

Furniture and fixtures, including playground equipment
and fence;
Computers and cameras;
Website development and marketing
We do not anticipate producing any meaningful operating

losses.
EXIT STRATEGY
At this point, Ms. Case plans to manage My Day Care Center

for many years, growing its customer base and increasing the
value of the business. Of course, almost all local service
businesses are closely tied to their owners name, reputation
and involvement, so a sale is usually a result of finding the
right local buyer. However, Ms. Vieco has indicated a long-
term interest in acquiring a minority of the LLCs Member
Interests from Ms. Case in three to five years.
Although it is possible that a national chain might acquire

My Day Care Center, this is not expected as these chains
prefer to plan and develop new locations as part of their
long-term business development strategy. Finally, locally-
owned competing centers generally lack the financial and
management capital needed to acquire a successful company.
MISSION STATEMENT
My Day Care Center offers Gaithersburg parents safe, quality

child careand complete early-child development at
affordable prices.
COMPANY HISTORY
My Day Care Center is a true startup company, with no

customers or operating history. Ms. Case sensed a need in the
marketplace for a safe, nurturing center which could compete
against the national chains on quality, service, and curricula

but offer local advantages and a true bi-lingual capability.
LOCATIONS AND FACILITIES
The company plans to lease a modern 2,500 + square foot

facility on the west side of Gaithersburg, MD in order to
accommodate up to 30 children at once.
In order to be competitive with leading day care centers (La

Petite and KinderCare) as well as cost-efficient, it will need to
offer the following:
Large, well-lighted day (play) room, which can be

partitioned to accommodate sleeping children and/or
infants
Movable partitions and sound baffles
Parking spaces, at least 10 to 12 for peak morning drop-
off and evening pick-up
Two bathrooms, one for the customers, one for staff
Small office, approximately 12 x 12
Yard, for play, minimum of 1,200 square feet.
Although the Washington D.C. metropolitan area has

experienced consistent population and business growth,
according to commercial real estate agents, we should to be
able to secure a lease on a facility that meets all our needs
and without escalation clauses if we commit to a five-year
term; additionally we should be able to qualify for six months
free rent. Part of the start-up funds will go towards securing

the lease.
Products and Services
We intend to leverage our relationships with local families

who appreciate our core offerings safe, quality day care and
excellent learning programs into a series of new programs,
customer bases, and revenue streams.
Our high skilled daycare teachers will give My Daycare Center a competitiv
edge.
Basic Day Care Service-Ourfull-service child

carefacility, will primarily cater to families with children
aged three months to six years (pre-kindergarten) and
who are interested in bi-lingual learning (English and

Spanish).
School Age Program-School age programs supplement
a family setting between school hours and home hours.
A typical week of a school age program includes
individual and group play; study assistance; and staff-
organized arts and craft. We anticipate adding school
age programs in year two. Parents can opt to purchase a
healthy after-school snack from the center.
Summer Day Camps and Special Trips-In year three,
we plan to add a series of half- and full-day trips for field
trips, nature walks, rafting excursions, library and
planetarium visits. Meals will be included. We intend to
augment our permanent staff with contract (1099)
employees.
Transportation-After several quarters of providing
excellent day care and learning services, we may add
limited transportation services to parents who reside in a
certain defined area. We will be monitoring our
competitors prices, and we will be discussing liability
mitigation with external counsel and insurance
requirements with our insurance broker. We do not feel
that it is imperative to offer transportation at this time so
many parents already have automobiles, and therefore it
is not included in our financial projections.
COMPETITORS
Like most markets of its size, Gaithersburg offers a variety of

day care providers, from nationally-branded corporate chains
like La Petite Academy, Horizon and KinderCare to sole
proprietor mom and pops that operate from their home.
A recent search (source: childcareavenue.com) for day care

providers in Gaithersburg returned 54 child careproviders.
Given its population of 65,700 residents and about 15,900
families, there is already one day care center for every 275
families. In addition to nannies, au pairs and baby sitters,
there are about 55 child care centers.
Fortunately, demographics favor theday care business:

Gaithersburg has grown by almost 10% from 2010 to 2013,
and its average age is about 35 years, ideal conditions for
starting a new day care center. About 25% of the population
is Hispanic or Latino. Economically, there are major
employers in the area IBM, Lockheed Martin and
Medimmune that provide financial stability to thousands of
families while providing the need for daily out-of-home child
care. We believe that the demographic and economic
characteristics of Gaithersburg render it ideal for a new high-
quality child carecenter.
NATIONAL CHAINS
National chains doing business in the area include

KinderCare (12 centers in Gaithersburg metropolitan area)
and La Petite Academy (19 locations within 30 miles of
downtown), and Bright Horizons (4 centers within 15 miles).
KinderCare, the nations leading provider of early childhood

education, offers a clear and distinct value
proposition:quality careandexceptional learning
opportunities.Their Gaithersburg location is at 18000 Sioux
Lane which is easily accessed by the affluent Kentlands
neighborhood as well as routes 124 and 119.
However, their website barely mentions day care itself.

Instead their collateral claims that KinderCare provides the
most high quality services and programs for young
children.
They position their services away from day care and towards
early childhood education, and they do so quite inclusively,
from math to cooking to social skills. Consequently, they do
not compete on price and have no interest in becoming the
low price leader. This approach requires targeting parents
who are less sensitive to price and more sensitive to learning
and development.
Naturally they need to support a high-quality, full-service

brand with ongoing brand marketing and public relations
efforts in order to educate parents about the value they
confer and move the parents away from a pure price-based
decision.
Kindercare boasts that its Pre-K programs provide a

holistic approach in the classroom which engages young
minds with the early learning fundamentals theyll need as
they continue on to kindergarten with a rich blend of skills,

interests and a love of learning. They substantiate this
approach by citing a statewide assessment that showed
more students that attended prekindergarten at KinderCare
tested fully ready for kindergarten than their non-KinderCare
classmates. A higher percentage of KinderCare children
ranked as top performers in Language/Literacy (14% more),
Mathematical Thinking (18% more), and Scientific Thinking
(11% more). Clearly, this approach will appeal to families
who believe in specialized learning programs and who have
the means to pay for these programs. By continually
informing parents about these benefits, Kindercare at their
expense is educating the specific customer base, which is
our targeted customer base.
La Petite Academy positions itself similarly: they stress being

unlike traditional day care, while emphasizing a strong
curriculum and meaningful experiences. They also trade
on the physical design of their facility, which they claim
inspires a nurturing interactive environment in which your
children can thrive. We agree that open spaces help children
collaborate, but do not consider this as an attribute that is
unique to La Petite.
Like KinderCare, the La Petite website does not list specific

tuition prices.
LOCAL FACILITIES
In addition to the well-known chains, there are dozens of

mom and pop day care centers in the area, some of which
operate from a room or two in their home. As a stand-alone,
full-time business, we do not consider the home-based
providers as our direct competitors, and will therefore
emphasize the attributes of the locally-owned full-time
businesses since they are simply providing basic care
services.
In general, the local centers are far less expensive than the
nationals; offer far less in terms of organizational profile and
stability, curricula and programs; and, with far less
marketing talent and savvy must rely on word-of-mouth and
online (Angies List) reviews and feedback. The smallest
home-based providers are typically managed and owned
by one woman and is assisted by others on a part-time/as
needed basis. They provide cleaning, feeding and some
education, though no curriculum per se, and are therefore not
competing for the same clients as we are.
The most successful local operators, for example, Robins Best

Child Care, have been in business for years, developing an
impressive reputation along the way. Robins Best was
founded in 1983, has been continuously owned by the same
woman, and has found a specific, anti-chain niche. Robins
Best boasts of its small size, which they believe offers a
personal connection and allows them to be flexible and
reliable. Clearly, Robins Best feels strongly that some
parents prefer not to send their children to a large, national
chain, suggesting that a small, local business can offer deeper

connections and more personalized service. Their thirty-plus
years in business proves the viability of this approach.
DIFFERENTIATING FACTORS
Regardless of the size or scope of the business, there are

several important factors that can differentiate the segments
competitors. We believe that by researching and examining
these factors, we can develop a sustainable competitive
advantage.
Accreditation-In addition to meeting state licensing

standards, some centers are accredited by one or more of
the three to five national agencies that require early
childhood education standards and issue guidelines for
high-quality care. The focus of accrediting bodies is to
recognize and promote best practices in early
childhood settings, and therefore defines standards of
quality for the field of early child care and education;
helps parents and policy makers recognize high-quality
programs and initiatives; supports ongoing training and
professional development. A sample of existing area
centers showed that about 1 of every 6 centers boast a
national accreditation.
Programs-Many of the national chains offer learning
programs for all age groups from infants to 12 year olds.
E.g. Kindercares Early Foundations Infant Program
is designed to give babies early learning skills. Pre-
kindergarten programs (ages 4 to 5) might emphasize
preparing children for school by introducing them to

letters and social skills. Other programs might
enrichment activities which emphasize specific skills like
cooking, math and music, to special summer programs
and before and after school programs.
Location-Child care is a local business that requires
daily transportation to and from the center; therefore it is
vital that My Day Care Center features a safe and
convenient location for the benefit of our customers and
employees. We have identified a well-lighted 2,500
(expandable to 3,400) square foot commercial facility that
is within two miles of both I-270 and Frederick Road (the
citys primary spine) and offers 15 dedicated parking
spaces to the lessee. It is also served by two snow
emergency routes, and is less than one mile from a
County police station.
Website-The national brands websites are well-
designed, load quickly, and informative. They offer
learning modules for parents to become better-informed
(videos and downloads); allow live chat/customer
service 7 days a week; alert users to upcoming events,
and are enabled for e-commerce (pay your tuition
online). Local, sole proprietors are often simply listed on
a internet directory with basic contact information and
services offered. As detailed in the Marketing section,
My Day Care Center will take a hybrid approach to its
website.
SOURCING AND FULFILLMENT
We have already identified our primary care and education

providers (see Management).As the center expands, we
will continue to attract and retain full-time and part-time
child care professionals who are state-licensed, dedicated to
continuing education and passionate about early-childhood
development.
TECHNOLOGY
The day care business is not a technology-intensive one;

however, there are several off-the-shelf applications to assist
in child scheduling, appointment and follow-up. Most are
free, and cloud-based and easy to use from either a PC or a
Mac. As conditions warrant, we may purchase a
comprehensive sales management program. For computer
maintenance and troubleshooting, we employ a mobile third-
party service provider. These costs are provided for in our
budgets on an ongoing basis.
Customers and Market Analysis
MARKET OVERVIEW
According to the 2010 U.S. census, there were approximately

15,000 families and 22,000 households in Gaithersburg. As of
last year there were about 24,100 and we estimate about 20%
of the households or 4,800 households have children in

our target age range. In addition, we can expect to draw from
other parts of Montgomery County (a large, affluent county
in southern Maryland) and we estimate another 10%, or
about 480 households, may be interested in our center.
Combined, that totals almost 5,300 households, and with an
average of 1.5 to 2 children each (2010 census), about 7,900 to
10,600 children. By year three, we plan on serving 25 to 40
children daily at our 2,500 square foot facility.
MARKET NEEDS
Our research showed that there are no full-service, accredited

day care centers in Gaithersburg that are locally-owned and
fully bi-lingual. Additionally, there is a price gap between
the national chains who charge between $325 and $395 a
week, and the local centers who charge about $145 to $165.
My Day Care is poised to fill this service and price gap.
My Daycare Center will make use of modern technology to give the company
competitive edge.
MARKET TRENDS
In general, the Gaithersburg market is growing in terms of

overall population, business and industry, but is also
attracting a higher proportion of Hispanics and Latinos
(about 25% or about 14,000 people). Our credentialed,
dedicated and experienced staff are able to conduct business
with parents in Spanish as well as offer bi-lingual education
to all their children.
(On a national level, the recent Presidential actions that

contemplate allowing amnesty to millions of immigrants
(most of which are families and come from Mexico and El
Salvador) will only increase our potential market as the
Washington D.C. area is home to more Salvadoreans than
any other metropolitan area save Los Angeles.)
Another important trend is buying local, the benefits of

which have been recently studied and publicized. We intend
to capitalize on this by asking parents to keep their money in
the community. According to the Small Business Chronicle,
about 60% of the money spent at a local business remains in
that community, as compared to 10% to 30% that is retained
locally when spent at a national chain.
Finally, with the rapidly growing cost of private schools and

universities not to mention the pressures and stresses
associated with gaining admission many parents stress

early-childhood education, socialization and collaboration as
a vital factors in preparing for academic success.
MARKET GROWTH
Gaithersburgs population and business base has consistently

grown for decades and officials expect this trend to continue
indefinitely. This means more families in need of more child
care.
INDUSTRY ANALYSIS
In this case, we view the industry as the Gaithersburg-

areaday care businesswhich we estimate serves about 4,800
area families. There are at least 54 centers (including homes)
listed on childcareavenue.com. Since the vast majority of
these companies are privately-held, there is little financial
data to analyze.
THREAT OF NEW ENTRANTS:
The threat of new entrants varies depending on the type of

facility and services being offered.Home-based providers
who plan to offer some degree of day care for up to 8
children out of a residence only need to earn a certificate of
registration; become licensed; and attend and complete two
orientation sessions at a licensing center. The start-up costs
are minimal, and the owner could list her service on care.com
and other internet forums.
Full-service facilities like My Day Care Center who plan to

trade on expert service quality and comprehensive and
accredited education programs need a staff of credentialed
teachers who can develop a curriculum tailored by age
group, and price and promote these programs and curricula
to a target set of parents. The personal credentials and school
accreditations often take more than a year to earn, thereby
creating a barrier to entry, and the center must be able to
attract experienced professionals away from other employers.
BARGAINING POWER OF SUPPLIERS:
In our case, suppliers refers to the supply of experienced

child care professionals. This varies by market of course, as
most child care professionals do not travel great distances for
work. We are fortunate that both Ms. Case and Ms. Vieco are
highly-regarded in their field and part of a professional
network of credentialed teachers who can be recruited to My
Day Care Center as our growth plans are realized.
BARGAINING POWER OF BUYERS:
There are thousands of parents in the Gaithersburg area,

some of whom are quite cost-conscious, but many of whom
are willing to pay a premium (say over $200 per week) for a
challenging, holistic learning environment and a modern and
safe facility. We believe that as we educate and develop
enduring relationships with their children, the bargaining

power of the parents will diminish and they will become less
price-sensitive.
AVAILABILITY OF SUBSTITUTES:
There are dozens of day care centers competing for child

caredollars. In addition, there are business and government-
based centers, nannies, baby sitters and au pairs, creating a
plethora of child care substitutes. Therefore we must identify
and target the subset of parents who value and will pay for
our mix of professional experience, curriculum and location.
COMPETITIVE RIVALRY:
We anticipate that both the national chains and the home-

based providers will ignore our entry into the market given
how they position their centers. The middle tier of the market
e.g. Robins Best may take notice, especially if we lure
parents from her business. However since the overall market
is growing due to demographic trends, we expect that the
quality providers will be able to maintain market share
without resorting to lowering price in order to maintain
share. Over time, we believe that we will develop a strong
reputation among the Hispanic and Latino parents, currently
an under-served customer base.
KEY CUSTOMERS
We plan to target working families with young children in

the Gaithersburg, MD area. According to the 2010 U.S.
census, there were approximately 15,900 families and 24,100
households in Gaithersburg, and we estimate about 20% of
the households or 4,800 households have children in our
target age range. Fortunately, we only need to serve about 14
to 15 children on a recurring weekly basis for us to cover our
fixed operating costs.
Our center will be conveniently located to most of these

families, a significant number of which are Hispanic or
Latino, a key demographic in this community.
Marketing and Sales
OVERVIEW
My Day Center will market its day care and educational

services through local advertising, online media, and meet
and greets in the Hispanic community where parents re
known to gather. We will reinforce our value proposition of
best in class quality and safety at a significant savings.
A photograph of My Daycare Center taken from the outside.
POSITIONING
As mentioned, there is an abundance of day care providers in

the Gaithersburg area. Therefore, any new center needs a
clear marketing strategy and a distinct value proposition.
Like all centers, My Day Care Center will target local

working families, however, we intend to take market share
away from the national brands by offering abetter valueto
their core customers. We believe that we can offer those same
quality-oriented families, an identical quality of care and
learning but for 20- to 30% less money. Specifically, our value
proposition is based on:
High quality services-Our professional training (Level 4

and 3 credentials), experience, and curriculum exceed
state standards, and are equivalent to the national
chains. Our website will have a side-by-side checkbox
comparison showing how we compare to state and to

local competitors on quality.
Safety-Obviously a parents primary concern is her
childs safety; this is of vital import and in business
terms, we view this as a competitive advantage. Our
safety directives and protocols have been designed to
compare favorably to the best in class (generally
accepted as KinderCares or La Petites); have been
developed in coordination with our safety advisor (see
Management) and Maryland law enforcement
authorities; and will be proudly listed on our website
(see Safety section in this plan).
Local care and knowledge that the national brands
cant match-We will continue to remind our customers
that, as a local, woman-owned business we are from this
areas schools and houses of worship, and can serve as
local experts in child care and development. We believe
that a community is served best when money is spent
and re-invested in the community.
Location and Convenience-By driving to and from our
proposed location during morning and evening rush
hour, we confirmed that our center will be within 12
minutes of 60% of the citys neighborhoods.
Spanish language-We believe that Gaithersburgs
prominent Spanish-language community (see
Demographics) is under-served since there are few
accredited centers that offer both Spanish- and English-
language programs. Many parents who speak Spanish at
home want their children to be immersed in English at
any early age, yet still require their providers to conduct

business in Spanish.
Therefore, we are squarely positioning My Day Care Center

as the most obvious choice in terms of service quality, price
and convenience and this will be attractive to hundreds of
area families, especially those who prefer local, women-
owned businesses catering to those of Hispanic heritage.
PRICING
As mentioned, we are primarily targeting customers who are

willing to pay a premium for a center which enjoy a
reputation for quality care and learning, safety, and
convenience. We are referring to these as the Kindercare
parents. Although we cannot match Kindercares marketing
budget and national brand awareness, as a lean and efficient
operation, we will save on indirect expenses (overhead)
and expensive marketing campaigns and thus set our basic
day care and program rates at about 20- to 30% lower than
Kindercares.
Currently, Kindercare charges $350 to $375per week for an

infant for five days a week. This is our pricing baseline from
which we will determine our baseline. My Day Care Center
will start at $259 per week, with similar discount on the daily
rates. Therefore, our services will save a family with one
child over $4,100 over the course of a 46-week year. A family
of two will save approximately $8,000.
PROMOTION
We intend to promote our center and our unique value

proposition on an ongoing (internet platforms) and periodic
basis.
Internet marketing-This is the centerpiece of our promotion

strategy. It consists of a well-designed, professional website
that is informative, customer-oriented and sells the center,
reinforcing our value proposition of quality, price and
convenience and stating our safety protocols. Our designers
will borrow some of the look and feel of the best national
sites. This will set us apart from the countless, local centers
who rely on a simple basic listing on Care.com. Additionally,
we will advertise on Gaithersburg-based websites, who will
link to our site.
Hispanic marketing-Twice a year we will host an open

house and / or a meet and greet at select area locations
where Hispanic parents congregate and at our center. We
will promote upcoming seasons and new programs.
Referrals-Generally, the most valuable form of promotion

comes from your customers. Especially when it regards a
critical decision like care for a family member. We will use a
proven referral engine like ReferralCandy.com to bring us
qualified leads starting in year two and have included this
cost in our budgets.
DISTRIBUTION
Our services will be based out of a modern, clean and safe

facility in Gaithersburg. No additional distribution is
required, although, as mentioned, we may offer a
transportation service.
Strategy and Implementation
MILESTONES
Year 1, Month 1:We expect to secure a lease by mid-to late

November, and begin on improvements immediately
thereafter.
Interior improvements such as safety upgrades, lights,

cameras as well as rented furnishings should be in
place by early December. We have already identified the
equipment that we will purchase or rent.
Year 1, Month 3:The playground equipment has been

identified and will be installed by early January.
Our safety officer see Management Team section will

visit the center at least twice during and after the facility
preparation.
Year 1, Month 3:We have identified a local website design

and service company and we expect the site to be fully-
operational by January 15.
Year 1, Month 6:After about 6 months in business, we will

apply to one or more of the three accrediting organizations.
Year 1, Month 8:Achieve positive cash flow
Year 1, Month 9: Achieve break-even
SWOT ANALYSIS
Strengths Weaknesses
Our team is well-known and New center with
respected no established
Experience and professional customer base
credentials differentiates us Our price is higher
from most local centers than most local
Bi-lingual staff centers
Opportunities Threats
Growing base of local families
Other centers may
Many Spanish-language
target Spanish
families
language families
Affluent area who understand
National brands
value of early childhood
may lower prices
education

COMPETITIVE ADVANTAGES
We believe that our center will succeed for the following

reasons:
High quality services-Our professional training (Level 4

and 3 credentials), experience, and curriculum exceed
state standards, and are equivalent to the national
chains. We will invest in continuing education for our
staff.
Safety-Our safety directives and protocols have been
designed to compare favorably to the best in class
(generally accepted as KinderCares or La Petites); have
been developed in coordination with our safety advisor.
Local care and knowledge that the national brands
cant match-We will continue to remind our customers
that, as a local, woman-owned business we are from this
areas schools and houses of worship, and can serve as
local experts in child care and development. We believe
that most parents prefer to patronize local merchants.
Location and Convenience-By driving to and from our
proposed location during morning and evening rush
hour, we confirmed that our center will be within 12
minutes of 60% of the citys neighborhoods.
Spanish language-We believe that Gaithersburgs
prominent Spanish-language community (see
Demographics) is under-served since there are
fewaccredited centers that offer both Spanish- and English-
language programs.
STRATEGIC ALLIANCES
Ms. Vieco is on the Board of Directors of the Montgomery

County Hispanic Business Council which allows her to host a
monthly roundtable meeting on local business issues relevant
to Hispanic women. On an ongoing basis she will be able to
mention her new day care venture.
Financial Plan
SALES FORECAST
SALES FORECAST TABLE
Year 1 Year 2 Year 3

Unit Sales
Basic Service 471 754 918
School Age Program 0 339 504
Summer Camp 0 0 30
Price Per Unit
Basic Service $259 $259 $259
School Age Program $0 $129 $129
Summer Camp $0 $0 $995
Sales
Basic Service $121,989 $195,286 $237,762
School Age Program $0 $43,731 $65,016
Summer Camp $0 $0 $29,850
Total Sales $121,989 $239,017 $332,628
Direct Cost Per Unit
Direct Cost
Total Direct Cost $0 $0 $0
Gross Profit $121,989 $239,017 $332,628
Gross Profit % 100% 100% 100%
SALES BY MONTH
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PERSONNEL PLAN
PERSONNEL TABLE

Center Director $32,400 $33,048 $33,696
Lead Child Care Teacher $30,000 $30,600 $31,200

Preschool Specialist $14,400 $29,088 $29,664
Total $76,800 $92,736 $94,560
BUDGET
BUDGET TABLE

Expenses
Salary $76,800 $92,736 $94,560
Employee Related Expenses $11,520 $13,910 $14,184
Rent $27,000 $27,000 $27,000
Legal $1,000 $0 $0
Phone and Internet $4,500 $4,500 $4,500
Furnishings $4,200 $4,200 $4,200
Accounting & Tax Services $900 $900 $900
IT Support $2,244 $2,244 $2,244
Playground Equipment & Toys $6,850 $0 $0
Fence & Outside Lighting $4,500 $0 $0
Website $3,000 $0 $0
Security and Safety Improvement $2,650 $0 $0
Interior Improvement $3,000 $0 $0
Advertising $3,300 $3,300 $3,300
Total Expenses $151,464 $148,790 $150,888
Long-term Assets
Total Long-term Assets $0 $0 $0
Other Current Assets
Total Other Current Assets $0 $0 $0
Dividends and Distributions
Total Dividends and Distributions $0 $0 $0
EXPENSES BY MONTH
CASH FLOW ASSUMPTIONS
CASH FLOW ASSUMPTIONS TABLE
Cash Inflow
% of Sales on Credit 40%
30 days
Cash Outflow
% of Purchases on Credit 0%
Avg Payment Period (Days) 0 days
Inventory
Months to Keep on Hand
Minimum Inventory Purchase
LOANS AND INVESTMENTS
LOANS AND INVESTMENTS TABLE

Owner Investment $40,000 $0 $0
Total Amount Received $40,000 $0 $0

Financial Statements
PROFIT AND LOSS STATEMENT TABLE

Revenue $121,989 $239,017 $332,628
Direct Cost $0 $0 $0
Gross Profit $121,989 $239,017 $332,628
Gross Profit % 100% 100% 100%
Operating Expenses
Salary $76,800 $92,736 $94,560
Employee Related Expenses $11,520 $13,910 $14,184
Rent Expense $27,000 $27,000 $27,000
Professional Fees $4,144 $3,144 $3,144
Utilities $4,500 $4,500 $4,500
Repairs and Maintenance $9,850 $4,200 $4,200
Equipment/ Furniture $11,350 $0 $0
Advertising and Promotion $6,300 $3,300 $3,300
Expensed Portion of Other Current
$0 $0 $0
Assets
Depreciation and Amortization $0 $0 $0
Total Operating Expenses $151,464 $148,790 $150,888
Operating Income $(29,475) $90,226 $181,740
Other Expenses (& Other Income)
Loss (or Gain) on Sale of Asset $0 $0 $0
Interest Expense $0 $0 $0
Total Other Expenses (& Other Income) $0 $0 $0
Income Before Income Tax $(29,475) $90,226 $181,740
Income Taxes $0 $0 $0
Net Income $(29,475) $90,226 $181,740
Net Income / Sales (-24%) 38% 55%
NET PROFIT (OR LOSS) BY YEAR
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BALANCE SHEET TABLE
Starting
As of Periods End Year 1 Year 2 Year 3
Balances
Cash $0 $5,137 $91,279 $271,259
Accounts Receivable $0 $5,387 $9,472 $11,232
Inventory $0 $0 $0 $0
Other Current Assets $0 $0 $0 $0
Total Current Assets $0 $10,525 $100,751 $282,491
Long-Term Assets $0 $0 $0 $0
Accumulated
$0 $0 $0 $0
Depreciation
Total Long Term Assets $0 $0 $0 $0
TOTAL ASSETS $0 $10,525 $100,751 $282,491
Accounts Payable $0 $0 $0 $0
Sales Taxes Payable $0 $0 $0 $0

Short-Term Debt $0 $0 $0 $0
Total Current Liabilities $0 $0 $0 $0
Long-Term Debt $0 $0 $0 $0
TOTAL LIABILITIES $0 $0 $0 $0
Paid-in Capital $0 $40,000 $40,000 $40,000
Retained Earnings $0 $0 $(29,475) $60,751
Profit and Loss Current
$0 $(29,475) $90,226 $181,740
Period
TOTAL OWNERS
$0 $10,525 $100,751 $282,491
EQUITY
TOTAL LIABILITIES &
$0 $10,525 $100,751 $282,491
EQUITY
CASH FLOW STATEMENT TABLE

OPERATING ACTIVITIES
Net Income $(29,475) $90,226 $181,740
Depreciation and Amortization $0 $0 $0
Gain or Loss on Disposal of Asset $0 $0 $0
Change in Accounts Receivable $(5,387) $(4,085) $(1,759)
Change in Inventory $0 $0 $0
Change in Accounts Payable $0 $0 $0
Change in Sales Taxes Payable $0 $0 $0
Change in Other Current Assets $0 $0 $0
Net Cash from Operating Activities $(34,862) $86,141 $179,980
INVESTING & FINANCING

ACTIVITIES
Long-Term Assets Purchased or Sold $0 $0 $0
Investments and Contributions Received $40,000 $0 $0
Change in Short-Term Debt $0 $0 $0
Change in Long-Term Debt $0 $0 $0
Dividends and Distributions $0 $0 $0
Net Cash from Investing & Financing $40,000 $0 $0

Cash at Beginning of Period $0 $5,137 $91,279
Net Change in Cash $5,137 $86,141 $179,980
Cash at End of Period $5,137 $91,279 $271,259
CASH FLOW BY MONTH
CASH FLOW BY YEAR
FINANCIAL RATIO TABLE
Projected
As of Periods End Year 1 Year 2 Year 3
Liquidity Analysis
Net working capital $10,525 $100,752 $282,492
Current ratio 0% 0% 0%
Quick ratio 0% 0% 0%

Profitability Analysis
Gross profit margin 100% 100% 100%
Operating profit margin (-24%) 38% 55%
Net profit margin (-24%) 38% 55%

Debt Ratios
Debt to assets 0% 0% 0%
Debt to equity 0% 0% 0%

Investment Measures
ROI (-280%) 90% 64%
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how to format thepro forma statements your day
carebusiness plan.

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11/9/2017 Daycare Business Plan Sample | Legal Templates

Daycare Business Plan Sample

My Daycare Center is a start-up limited liability corporation

CREATE YOUR FREE DAYCARE BUSINESS PLAN

Given our teams professional

We intend to diversify our service offerings after our first year in

This document explains the opportunity and business case for

Andrea Case is the founder, owner and Managing Member of My

Since Andrea and Ana

PRODUCTS AND SERVICES

My Day Care Center will be a locally-owned, nationally-

We plan to target working families with young children in the

Our center will be conveniently located to most of these families,

The company seeks $40,000 in start-up capital in exchange for

The company has no loans and, if the $40,000 of equity is raised,

Our base case financial projections show about $350,000 in year

CREATE YOUR FREE DAYCARE BUSINESS PLAN

Company and Financing

My Day Care Center LLC is a single member limited liability

We intend to open our day care center on the west side of

ANDREA CASE, FOUNDER AND CENTER DIRECTOR

Andrea Case is the founder, owner and Managing Member of

She will serve as the Center Director

She is a Level 4 Maryland Child Care Credentialed Provider

JOHNVIECO, FOUNDING EMPLOYEE AND LEAD

He is a dedicated, positive and

He graduated from University of Maryland at College Park

He will also translate our marketing materials into Spanish as

ROBINFORD, PRESCHOOL SPECIALIST

Ms. Ford is a preschool teacher and is

BO SCHWEIKERT, SAFETY AND EMERGENCY

Mr. Schweikert retired from the Kensington, MD volunteer

As an unpaid advisor, he agreed to

and procedures for both the inside

As our operations and customer base grows, we will

We anticipate needing about $30,000 in start-up funding in

Lease deposit and facilities improvement;

We do not anticipate producing any meaningful operating

At this point, Ms. Case plans to manage My Day Care Center

Although it is possible that a national chain might acquire

My Day Care Center offers Gaithersburg parents safe, quality

My Day Care Center is a true startup company, with no

against the national chains on quality, service, and curricula

LOCATIONS AND FACILITIES

The company plans to lease a modern 2,500 + square foot

In order to be competitive with leading day care centers (La

Large, well-lighted day (play) room, which can be

Although the Washington D.C. metropolitan area has

free rent. Part of the start-up funds will go towards securing

Products and Services

We intend to leverage our relationships with local families

Basic Day Care Service-Ourfull-service child

who are interested in bi-lingual learning (English and

Like most markets of its size, Gaithersburg offers a variety of

A recent search (source: childcareavenue.com) for day care

Fortunately, demographics favor theday care business:

National chains doing business in the area include

KinderCare, the nations leading provider of early childhood

However, their website barely mentions day care itself.

Naturally they need to support a high-quality, full-service

Kindercare boasts that its Pre-K programs provide a

they continue on to kindergarten with a rich blend of skills,

La Petite Academy positions itself similarly: they stress being

Like KinderCare, the La Petite website does not list specific