Child Day Care Business Plan Term Paper - 825 Words

Child Day Care Business Plan (Term Paper Sample) Content: NameTutorTaskDateChild Day Care Business PlanSummaryIn providing safe and nurturing environment for children, a day care centre, as defined in this business plan, is a start-up venture that I will launch to provide care for children between five and ten years. The centre will be licensed to provide care for about one hundred to one hundred and seventy children. By putting my focus on quality care, my centre is projected to achieve high enrolment and high-profit generations within months of operation.IntroductionIn the United States, these days, most mothers with preschool or school age children are employed outside the home. With these in mind, many parents have invented many ways to care for their children while they work. This has lead to the spring up of day care centres all across the United States.Child care is a subject of major public interest. A concern that child care may be in short supply, not of good quality or maybe too expensive has made it into national debates over the years. Research has shown that most families with working mothers and preschool children purchase childcare. However, the type of child care used also depends on the family type and the financial status.In a market where double income is becoming common, child care services are in soaring demand. This is obvious from the reality that there are over 250,000 licensed facilities making around $10 million in monthly revenue. With the growing labor force especially for women, the industry is expected to rise sharply over the years with the figures expected to go up by about 50%.Within the area, there are around 9,000 children under the age of five years and around 11,000 between the ages of five and ten. Due to migration and other factors the annual population is expected to rise by around 5%, and this will mean increased opportunities for my business. Given that the business will be located near a busy business locality and a large residential area, I can expect to hav e a large number of clients within the locality and from other districts.Given that I will be competing against three other licensed competitors, within a ten mile radius of my locality it will be easier for me to distinguish myself from the rest. I will put extra focus on different pricing structures, philosophy and marketing approaches. I am also aware that my community has a scarcity of licensed day care facilities, and this will enable me reach my enrolment projection within a very short time regardless of the small competition.In a review of the competitorà ¢Ã¢â€š ¬s ability to maintain a low child to staff ratio, I will put assemble a team that will make sure we provide quality and enhanced services. We will work with the core principals of making a difference in the community and a distinguishable day care centre for choice to our consumers.In preparation for the launch, I will put together a financial plan based on predictions for the first two years of existence including a start-up expense estimated at around $100,000. I will acquire a loan of around $70,000 to boost in the start-up costs. I will cover the remaining with my savings and through offering a stake in my business.During the first year of existence, I intend to generate around $180,000 in sales revenue. In the second year, I plan to increase this figure by around 30%. After subtracting my expenses, the net profit for the first year will be expected to be around $19,000 with 9% percent net profit from sales. For the second year, I will anticipate a net profit of around $22,000 with a slight increase in the percentage net p...