Are you about starting a daycare center (creche)? If YES, here is a complete sample daycare center business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a daycare center. We also took it further by analyzing and drafting a sample daycare marketing plan template backed up by actionable guerrilla marketing ideas for child care centers. So let’s proceed to the business planning section.
Table of Content
- Executive Summary
- Market Analysis
- SWOT Analysis
- Financial Projection
- Marketing Plan
- Marketing ideas & Strategies
Why Start a Daycare Center?
It is the duty of every parent- especially the mothers to see to it that their kids are properly taken good care of. However, there are times when circumstances just makes this totally challenging, as there may not be the luxury of time available to them to sit closely with their children and monitor them.
That is one of the reasons why parents would always want to take their kids to a daycare center. The question therefore is: how reliable are day care centers in seeing that the children are totally given the best of care and attention?
Before the daycare businesses came into existence, parents who could afford the luxury of hiring a home nanny whom they thought were vast and experienced in the care of children. However, as things changed and the crime rates in some areas went haywire-where some folks gained entrance into the houses of people for the sole aim of robbing them, the daycare trend took over.
And ever since the emergence of this trade, we have come to see more and more people who have a penchant for kids, dive into the industry just to tap into the profits that the day care business offers.
What Does It Take to Start a Daycare Center Successfully?
More often than not, in some parts of the world we find that some folks begin a day care business after they have been successful with running a school. Conversely, that is not to say that one couldn’t possibly start only a day care business. As a matter of fact, starting first with a day care center, helps to start on a right footing so that you are able to determine whether you will be able to have a school as an addendum business in the near future.
So, if you have scaled the hurdle of being in love with children, then starting your own day care business might be a smart business choice. Having this wish or aspiration as it were on the front burner of your mind, isn’t all that is required. As a matter of fact there are legal necessities that you have got to tidy. As well as draw up a comprehensive business plan that will guide you as you start out and trudge ahead in business.
A FREE Sample Daycare Center Business Plan Template
- Daycare Business Overview
Day care business is one of the easy businesses that just about anyone who has a flare for kids could readily start. There is no doubt that as the zeal to make more money heightens with parents, then the need for newer and more seasoned day care centers to arise becomes highly important. That is why investors are beginning to leverage on the high demand for day care services, to establish even better ones.
As such, in all of the states of America, there is hardly one neighborhood that doesn’t have a day care centre. The business is indeed a lucrative one and those who are into the trade of establishing them are smiling to the banks every day. However, that is not to water down the fact that loads of work has to be put in place in order to satisfy parents who use these daycare centers.
Whether you are looking to start a small or big one, truth is that there would always be the need to have kids put in these places. This is why some folks who do not have the wherewithal in terms of finance may choose to start from their homes, whilst some may want to start from very little spaces they get. Over and above one bright ray of light as it concerns the day care business is that there is always room for expansion, as one learns on the job and then improves the services that one renders.
Setting up a day care business means that one would be dealings with little babies, and as such, care have got to be taken in order to hire not just mere employees, but to hire those who are way too vast in the trade and are capable to help the day care business to a great level. There will always be the need to garner plenty of knowledge that would be useful in giving the children the very best of experience.
The returns on investment that one attracts here is so huge that one have just got to keep at doing those things that would continue to guarantee repeat customers as well as give the kids whom are being cared for a growth experience that they wouldn’t forget in a hurry.
Sample Daycare Center Business Plan Template – MARKET ANALYSIS
- Market Trends
In the United States of America, you will quite agree that there are lots of guardians who need to work almost round the clock to eke out a living for them and their families. As such and as stated earlier, the need for someone to care for the kids whilst working in non negotiable.
That is why there will always be the need to have kids at day care centers. Furthermore, there is no indication that the day care trade would plummet anytime soon based on the statistics of parents who work that is found by experts.
There is always a boom in this business all year round, as the weather or state of the economy has nothing to do with it. That is why the services being rendered by us have to be top notch at all times. We do not want to be found wanting in any area, that is why we are sure to invest a lot in training our employees at all times.
Our positioning, as is always the case of determining the amount of customers that patronize a business is of importance to us, which is why we have chosen to start from Ohio.
Despite the fact that there loads of day care businesses who have done so well for themselves in the past, we plan to not leave any stone unturned as we continue to work at better ways to make our services known to people. Part of the marketing and sales strategies to be adopted includes;
- Commencing operation by first having a grand opening. This means that we will have a big party where we can invite those who reside in the neighborhood we propose to start out from, as well as those from other neighborhoods.
- Ensure that we have all our professional employees present at the party and if possible show them off.
- Make use of attractive hand bills to create awareness and also to give direction to potential clients
- Position our signage / flexi banners at strategic places around the vicinity.
- Advertise our day care center on business directories, magazines and yellow pages.
Our Target Market
When it comes to the day care business, of course our target market is the guardians and parents. That is why we have got to primarily focus on these types of people. The people we intend offering our services to are;
- Corporate Executives
- Business People
- Sports Men and Women
- Government Officials
- Low class, middle class and high class people
Daycare Center Business Plan Template – Competitive Advantage
Going by the state where we have chosen to start from, we found that there are no day care centers in the vicinity we are, which is why if we are able to do our due diligence, and we are able to attract a crowd of customers there, then there is the possibility of hitting success in the first few years of operation.
We plan to run a standard day care business which is why we hired one of the leading business consultants to work with us in setting up our business. The business consultant we have hired has over 10 years of experience in business management and has successfully opened several day care businesses in major cities across the United States of America.
So far, there are clear indications that with what he has brought up, we shall no doubt do well and even surpass other businesses in the state. We believe that for us to have hired one of the experts in town, without a shadow of doubt, we will do exceptionally well when eventually we kick start.
Child Care Business Plan – SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
Tiny Thoughts will throw a grand opening party when it does start. One of the very unique things that we plan to do on that day is to; unveil some of the professionals and junior employees that we have. That is those who will help us get things started on the right footing. Why is this a big one for us? It is a big one for us because parents will have an opportunity to interact with this people, as well as ask all the questions they want.
The location of our day care center is strategically positioned to attract ample customers with little or no effort from our own part, which is why we do not make provisions for marketing and sales executives in our company’s structure. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate a high number of people;
- Position our greeters to welcome parents and the kids as they arrive
- Create a loyalty plan that will enable us reward our regular customers
- Position our flexi banners at strategic positions all around the vicinity
- Advertise our Tiny Thoughts Business on yellow pages magazines
- Partner with child’/ education agencies to refer parents who are looking for a good day care center
Our Pricing Strategy
When it comes to fixing prices for our services, we will ensure that we set pricing in line with what is available in the day care trade. We are very aware that we have got to lower our price so that we will be able to attract customers like never before as we seek to gain recognition as newbies. When this is achieved, then bottom line is that our customers will derive real satisfaction when they bring their kids to us.
- Payment Options
Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our plans without any itches.
Sample Child Care Business Plan Template – Publicity and Advertising Strategy
When it comes to publicity and advertising, we have a low budget for it simply because our business is located in a place that can easily attract the numbers of customers we would need with little or no stress on our own part.
But for the fact that we hope to some day in the near future have more branches, we have decided to create a budget for publicity and advertisement for the major aim of introducing our brand in the market place. Everything that we will do in this regard is geared towards communicating our brand. Here are the platforms we intend leveraging on to promote and advertise our business;
- Place adverts on both print (travel magazines) and electronic media platforms
- Sponsor relevant educational community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Bill Boards on strategic locations
- Distribute our fliers and handbills in target areas where guardians can be found.
- Position our Flexi Banners at strategic positions around the airport
Generating Funding / Startup Capital for Tiny Thoughts®
Tiny Thoughts is a private business that is solely owned by Mrs. Mary McGregor and she does not have the intention of welcoming any external partners except immediate family members which is why she has decided to restrict the sourcing of her start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $60,000 (Personal savings $40,000 and soft loan from family members $20,000) and we are at the final stage of obtaining a loan facility of $80,000 from our bank. All the papers and document has been signed and submitted, the loan has been approved and any moment from now our account will be credited and we will be able to execute all the things that needs to be executed.
Creche Business Plan – Sustainability and Expansion Strategy
Our plans of establishing Tiny Thoughts is basically to test – run the Day care trade. We have decided to start our first outlet in a competitive location like Ohio. Although we don’t have the intention of running chains of day care centers now, but we have plans to set up branches in years to come. It is pertinent to state that we shall not allow our standard operating process to drop so that we do not lose our loyal customers.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Obtaining of health permit : Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Purchasing a building and remodeling it: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, beddings, toys, electronic appliances, office appliances and other equipment: In progress
- Creating Official Website for the day care center: In Progress
- Creating Awareness for the business both online and around the neighborhood of location: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress