Business Plan For A Child Care Facility Marketing Essay

Business Plan For A Child Care Facility Marketing Essay The ABC Company is a full service child company. It provides child care facility for kids of age three to five. The target of the company will be double income professional parents. Professional parents have been very keen in terms of their childs development and growth in a healthy and learning environment. To attend their children best facilities, they are willing to pay handsome amounts. The ABC company will proved to be a cutting edge in terms of child development, (Smith, 1993) providing services of specialized training staff for toddler development. A low student teacher ratio, coupled with custom designed facility and proposed curriculum ensures high quality service for parents and children. The ABC Company expects to be a profitable service provider by the end of the year and has projected a modest net profit by three years. http://www.bplans.com/child_care_business_plan/images/7dae8e980a9f4c97a74c2bb836c3a9bd.png Mission: The ABC company has mission to deliver top level child care services. We strive to provide maximum satisfaction to our customers. In order to prove this statement, everything else will fell into place. The company is passionate enough to meet and exceed customer needs. Objectives: The objectives of the ABC Company for first three years of operation include: In the first seven months, ABC Company will be utilized by at least 35 different families. Provide high quality services that will lead to exceed the customer expectations Increase in number of served clients by 20% each year Development of a profitable and sustained startup business A brief overview of the company: The ABC Company will offer its services of child care for the children with age of Three to Five. The services will be available between 7a.m to 6 p.m. There will be variety of tasks that children will enjoy to learn. Such activities include, large muscle group activities, arts and crafts, socialization, and tasks (Smith, 1993) related to general learning. There will be low teacher student ratio to ensure the delivery of quality services and also meeting the expectations of customers. The company will conduct its services centers in recently purchased home that have been converted to child care services center. Start up summary of business: Start up cost for ABC Company includes: Procurement cost of a four bedroom house. Renovation expenses of house to make some changes in accordance with requirements of child care service center. Office furniture Computer system and printer photo copier and fax machine Chairs Tables T.V room Mats and pillows for sleeping play ground with outdoor games accessories Laundry facilities Toys First Aid box Cleaning supplies Marketing expenses Legal advisors fee Note: *All long term assets are depreciated using long term depreciation method. http://www.bplans.com/child_care_business_plan/images/5e06f6f2664d40f3b091b667fa5335ed.png Technological needs: Basically the ABC Company does not need any high technology software. As the main concern is high quality child care services for target group of customers and the services will be provided by highly professional teachers who focus on development and effective learning of the children, basic concepts making and involving the children in innovative and creative activities. Services of company: The ABC Company offers high quality services of child care for kids of age three to five years. Its customized facilities, low teacher student ratio and innovative learning programs give the company competitive advantage. To accommodate the working parents, working hours are larger than usual or normal business working hours. In two income families, both parents are working, children care by reliable mean is major concern. The ABC Company s most appropriate and creative solution for this concern. It serves as virtual parents to children and provides the children with innovative learning tasks. Children are not monitored her but they are engaged ( Lindsay Lindsey, 1987) in creative, innovative and useful learning tasks under close supervision of our highly specialized and trained staff. Summary of Market Analysis: As the company is focused to provide services to child group with age of three to five years, the target market of the company will be two income professional families. These professionals, as common practice, ( Lindsay Lindsey, 1987) are not allowed to carry their children with them at work place; care of their children during their working hours is of great concern for these professionals. The ABC Company provides creative solution and best option for the parents who want to have something more than just babysitting facilities. (Smith 1993) Parents will likely to be interested in selecting the child care facility for their children where they will learn many innovative and useful skills such as, reading, writing, art and crafts and socialization etc. Professional parents are keenly interested in ( Lindsay Lindsey, 1987) growth and development of their children in an innovative manner, and they are more willing to pay for the services. Strategy and implementation summary: Delivery of child care services will be provided in safe and secure environment, keeping children safe and secure to avoid any mishap or hazardous incident for children. The mission of ABC Company is to make the parents feel good as well as make the learning fun and secure for children. Competitive Edge: The competitive edge of ABC Company is complete compliance with legal and regulatory requirements while meeting all appropriate certification and licensing requirements. Moreover, all candidates are passed through process of background screening before hiring. All these unique attributes give the ABC Company a competitive edge. Market segmentation: The target of ABC Company is one explicit group of customers, the two income professionals family from middle and top class. Usually this group of customers has money but not time for their childrens care. They try to outsource this task of child care, the ABC company s most reliable option to consider in this regard. (Helburn Howes, 1996) This group of customers has start teaching their children basic concepts and skills as writing, reading, socialization etc. The ABC Company will continue to develop and polish these skills exactly in accordance with customer expectations. (Helburn Howes, 1996) Professionalism is the basic reason for parents group being more ambitious in terms of their childrens learning and they have enough money to provide sophisticated child care.   Market Analysis pie: Strategy for target market segmentation: Segmented market needs some provision for child care of target group. Census by Labor Department indicates that 29% of children of working parents are cared by day care centers and 50% are cared by relatives. This indicates that there is enough potential in the market specifically in context of our target group who is more concerned about and prefers a structures learning environment for their child. It sounds good to visit relatives with children on weekends or for nights, but a structured environment for learning of child cannot be expected there. Instead, formal institutes like ABC Company with passionate services will be a great choice without any doubt. The American society continues to be a society of people working for long hours a day, they need child care services, and this ultimate need will derive the business for ABC Company. Analysis of service business: The ABC Company has to compete in child care industry. There are companies at all levels from basic baby sitter service companies to child development and learning service companies; making the industry fairly broad and populated. Companies in the concerned industry are providing quality services (Helburn Howes, 1996) during business hours as well as night and evening hours services. Price, quality, and gut feeling drive a lot of parental choices. The secret of success for the ABC Company lies in selection of a specific segment of market with enough potential of success and growth opportunities. Management plan: Person 1, the founder of ABC Company, will be closely monitoring daily operations child care centre. He has earned his Post graduate degree in English from XY University. After completion of education, he has been teaching in India for five years, he got a room on rent there, he was taking care of the land ladys children in exchange of rent of the room. Although it was firs time, he was looking after the children in this way, but it was an interesting experience for him. This experience gave Person 1, to think on new avenues and he was thinking about to start his business of child care when he returned to America. No doubt, it as successful experience with children, that led person 1 to consider this business as his career. To gain more knowledge about the subject, he got masters degree n education program to persue toddler development. After this degree he has earned more confidence about starting a child care business with great chances of success. He purchased a house for this pur pose and converted it into child care facility center. There is some key professionals such as Person2, Person 3 ,4 and 5 has also been hired by Person 1, to carry forward child business activities with expert opinion of these professionals. All of these have masters degree in their respective area of specialization and have great experience in their respective fields. Personnel plan: Staff of ABC Company planned to be consisting of person 1, working full time, playing the role of leader and trainer as well. During first three months, two teachers, two assistants and one person for general health, who will help out with custodial, cooking, and laundry tasks. By month seven, two more assistants will be hired. Personnel Plan Year 1 Year 2 Year 3 Matt $24,000 $30,000 $36,000 Teacher $30,000 $36,000 $36,000 Teacher $30,000 $36,000 $36,000 Teaching assistant $20,000 $24,000 $24,000 Teaching assistant $20,000 $24,000 $24,000 General help person $15,000 $18,000 $18,000 Teaching assistant $12,000 $24,000 $24,000 Teaching assistant $12,000 $24,000 $24,000 Total People 8 8 8 Total Payroll $163,000 $216,000 $222,000 Financial plan: General Assumptions: General Assumptions Year 1 Year 2 Year 3 Plan Month 1 2 3 Current Interest Rate 10.00% 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% 10.00% Tax Rate 25.42% 25.00% 25.42% Other 0 0 0 Break-even Analysis The Break-even Analysis indicates  what is needed in monthly revenue to break even. http://www.bplans.com/child_care_business_plan/images/f07614e9e57840458f6e683d2759c018.png Break-even Analysis: Monthly Revenue Break-even $18,669 Assumptions: Average Percent Variable Cost 2% Estimated Monthly Fixed Cost $18,296 Projected Profit and Loss The following table will indicate projected profit and loss. http://www.bplans.com/child_care_business_plan/images/6867c3b9b3a14652b2e1fe171856300a.png Projected Cash Flow: The following chart and table will indicate projected cash flow. http://www.bplans.com/child_care_business_plan/images/dbee2235438e45678f4ebf4f761411d9.png PresidentOrganizational chart Vice President Teacher Teacher Assistant Assistant Management Team Gap: Although all the members are highly professional and experienced, they have excellent skills to make sure the successful journey of business. There is not gap exist at the side of management of child care service center of ABC company. At the lower level, assistants are the people who need guidance to work efficiently, but under the supervision of our experts, they will soon become able to deliver their services in efficient manner.