Do you want to start a daycare (childcare)? and need to write a business plan? If YES, here is a sample daycare business plan template & feasibility report.

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.

Why Start a Daycare Business?

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.

Writing a business plan is being made easy in this read, compared to what you may have heard about business plans. You do not need to hire the services of an expert anymore, as you can use an already existing model to craft yours. Here is a sample Day Care business plan;

A Sample Daycare Center Business Plan Template

Industry 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.

Executive Summary

Tiny Thoughts® is a foremost day care center in Ohio, America. It has the best of aims to prepare its pupils to come out tops in all they do- given that they would be the leaders of tomorrow. We propose to achieve this and more by merging an all exclusive curriculum custom-made explicitly for children.

Our type of curriculum is enriched with extra super child care services. This is nothing like what our competitors have to offer because we offer forward-thinking technology plans, after-school training, and activities that help the kids grow better. Activities such as; arts, dance, crafts, gymnastics, theatre, sports, amongst others.

Tiny Thoughts is a privately held establishment run by its owner, Mrs. Mary McGregor. Mrs. Mc Gregor has 10years of Educational training experience. As a matter of fact   she is a master’s degree holder of child psychology. So that when it comes to child management and psychology, she is always at the top of her game.

Her advanced degree in child psychology and interest in kids is the driving force behind the establishment of Tiny Thoughts. She will be supported in daily operations by another educationist and psychologist, amongst other employees.

With the inflation bane that continues to affect the American economy, there will always be the need for parents to work more than one job per time for additional income. It is for this reason that there will always be a need for excellent child care services.

With the least population of Ohio which is at 11.59 million people, there will always be the need to have capable day cares to cater for them. That is why we have decided to position our establishment so as to meet the teeming needs of parents who want the very best for their children.

At Tiny Thoughts, we leave no stone unturned to see that we put in place high- quality child care services, thorough bred educated instructors, as well as personal skills that will allow us compete well in our market . We shall also offer competitive price as part of one of our success factors so that we can attract all and sundry to our prestigious day care center.

Furthermore, we know the importance of having an excellent rapport with parents, and the community we serve, which is why we train and even retrain our workforce so that they bring the best of skills and attitude to the table at all times.

With the aforementioned points in place, we therefore do not intend to look for long before we attract customers as we go all-out to build a loyal customer base by offering the kids at the day care a very hospitable- yet educating experience in a comfortable and beneficial environment.

Our Services

At Tiny Thoughts®, we are first all about making the day care center a very conducive one. We are aware of the fact that some parents might hold back when it comes to the type of vicinity their kids will be put in; which is why we have taken time to research and learn the various ways to build a world class establishment. This we have done in the state of Ohio. Our services include the following;

  • Taking care of the infants, toddlers and preschoolers
  • Cleaning the infants and toddlers up whilst they are dirty
  • Have all kids well fed when hungry
  • Keep them active with some extracurricular activities

Our Mission and Vision Statement

  • Our vision is to build a most standard day care business, where parents can unreservedly leave their kids in our hands, and be totally satisfied in the long run.
  • To establish an international standard day care center where kids can be groomed and prepared to be leaders of tomorrow.

Our Business Structure

Big establishments know that one of the greatest selling points is to have the best hands. As such; we plan to only hire the most competent and seasoned employees. This is particularly important since it is uttermost on our minds to run our day care center with an intercontinental approach. This means that we are looking to have all races enroll in our establishment.

We came up with outright buying our own building, instead of having to make do with a leased one. This is why we have resolved to have quite a number of employees to be on our pay roll because of the ample room we have. Therefore, below is the type of structure we look to build our business on;

  • Chief Executive Officer (Owner)
  • A Director
  • Assistant Director
  • Administrative Assistant
  • Accountants / Cashiers
  • Infant room Supervisor
  • Toddler Room Supervisor
  • Preschool room supervisor
  • A Cook
  • Cleaner

Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Responsible for providing direction for the business
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals.
  • Responsible for recruitment
  • Responsible for payment of salaries
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Director:

  • Responsible for managing the daily activities in the day care center.
  • Ensures that all orders and guidelines given by the CEO are adequately carried out.
  • Interfaces with other employees
  • Reports to the Chief Executive Officer
  • Attends to Parent’s complaints and enquiries
  • Prepares budget and reports for the organization
  • Responsible for Training and Development in the day care center
  • Any other duty as assigned by the CEO

Assistant Director:

  • Responsible for assisting the director to carry out all that have been assigned by the CEO.
  • Ensures that all employees carry out the agenda of the day care center to the latter.
  • Responsible for quality control
  • Any other duty as assigned by the CEO and director

Accountant / Cashier:

  • Receives payments on behalf of Tiny Thoughts®
  • Issues receipt to customers
  • Prepare financial report at the end of every working Month
  • Handles all financial transaction on behalf of Tiny Thoughts
  • Interfaces with our bankers
  • Responsible for payment of tax, levies and utility bills
  • Any other duty as assigned by the CEO / Director

Administrative Assistant

  • Assists the director in seeing to it that all the kids are thought are line
  • Ensures that all documents are safely kept
  • Handles customers enquiries and keeps all records of kids and employees well
  • Any other duty as assigned by the director

Infant Room Supervisor

  • Responsible for supervising the nannies that take care of the infants.
  • Makes sure that everything is in place
  • Reports to the Director
  • Relates with the nannies and cleaners
  • Carries out any other task as assigned by the superiors

Toddler Room Supervisor

  • Responsible for supervising the nannies that take care of the toddlers.
  • Makes sure that everything is in place
  • Reports to the Director
  • Relates with the nannies and cleaners
  • Carries out any other task as assigned by the superiors

Preschool Room Supervisor

  • Responsible for supervising the nannies that take care of the toddlers.
  • Makes sure that everything is in place
  • Reports to the Director
  • Relates with the nannies and cleaners
  • Carries out any other task as assigned by the superiors

Cook

  • Responsible for all the kitchen activities at the center
  • Attends to the foods of all kids
  • Takes orders that will advance the establishment from the Director, CEO and others.

Cleaners:

  • Responsible for cleaning the day care facility at all times
  • Washes the mugs, spoons and other utensils
  • Ensures that toiletries and supplies don’t run out of stock
  • Cleans both the interior and exterior of the daycare
  • Any other duty as assigned by the day care director.

SWOT Analysis

Our purpose of starting a day care center is to compete favorably with other schools, and surpass them. We have also decided to have a test run on the business for a period of 5 years. This is to know how we are able to fare during this time, as well as to determine if we are to devote more resources, additional money, for the expansion of the business.

We shall start with just one center for now and then see how we are able to succeed despite the myriad of competition. In arriving at all these, we deemed it fit to employ the services of an expert who has helped us with conducting a SWOT analysis.

It was expedient that we did this, so as to ensure that we have what it takes to run a day care school and perhaps even build more branches. Here is a summary of the result from the SWOT Analysis that was conducted on behalf of Tiny Thoughts;

  • Strength:

Our area of strength to a very large extent lies in the fact that the owner of our day center is well versed in child psychology. This is really a positive one for us, because we believe that we shall be able to really handle the kids that are put in our care, unlike some folks who have no background knowledge in education and psychology.

  • Weakness:

The perceived weakness for our business could be that we are starting out as newbies and it really isn’t easy to convince people to come and enroll their kids at the day care. This is why we have got to really work hard at our advertising strategies, as well as solidify how to seal deal with our potential clients.

  • Opportunities:

The fact that we intend to lower the fees involved in enrolling a kid at our daycare, seems to be one of the ways at which we will attract all and sundry. We are certain without a doubt that with the quality of our employees and services, we shall attract clients that would be highly satisfied with us.

  • Threat:

Some of the threat our business may likely faced with might be a scenario where a kid has an illness and yet comes to the center. There may be likelihood that such an epidemic might spread to other kids. As such; this might not be nice because that might make some guardians want to withdraw their kids to a safer place.

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
  • Families
  • Low class, middle class and high class people

Our 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.

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.

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

Our Startup Expenditure (Budget)

This is the key area where we will spend our start – up capital;

  • The Total Fee for Registering the Business in Ohio: $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,300.
  • Marketing promotion expenses for the grand opening of Coffee4All® in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • Cost for hiring Consultant – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $52,800.
  • Cost for building remodeling – $25,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory – $16,027
  • The cost for office supplies (one month) – $287
  • Daycare hardware (bins, utensil rack, shelves, food case) – $3,720
  • Cost for client reception area equipment (plates, glasses, flatware) – $3,000
  • Cost for equipment (cash register, security, ventilation, signage) – $13,750
  • Office equipment and furniture – $3,600
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
  • The cost of Launching a Website: $600
  • The cost for our opening party: $5,000
  • Miscellaneous: $2,500

We would need an estimate of about $100,000 to successfully set up our day care business. The amount includes the salary of all employees and the CEO (Owner) for 3 months.

Financial Projection

  • Sources of Income

Our sources of income for Tiny Thoughts is limited to the services of taking proper care of the children that have been placed in our care. However, we are not relenting when it comes to   opening different branches.

  • Sales Forecast

It is important to state that our sale forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. Below is the sales projection based on the location (Ohio), which already has an avalanche of day care schools.

  • 200 pupils per session

N.B: Our annual projected sales for TinyThoughts® is put at about $4,800-$16,500, or $400 -$1,375 monthly per child. Over and above, as Tiny Thoughts gets established, our net profitability will likely witness a boom as that indeed is what we project.

Generating Funding / Startup Capital for our Daycare Business

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.

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