There are many reasons why you should prepare a business plan for your child daycare service business. In this article we will firstly look at why you need a plan and then we look at some of the components that make up a typical one. Lastly we look at how you can get a free example of a child daycare business plan.
Why you need a Business Plan
A plan gives you a chance to put together one core document that will be a blueprint for your success. It is a place to get organized, compile your thoughts and summarize your research. It allows you to set goals and targets for achievement and have a clear idea of where you want to go. Once you get underway with a new childcare venture a business plan will allow you to track your progress and things should run smoothly because you planned them in advance.
A plan will also sometimes be needed to convince others that your ideas are viable. If you are looking for a partner, investor or financing then a solid, well prepared business plan becomes essential.
How to put one Together?
1) Set out an introduction that summarizes what kind of daycare you want to start and how you plan on going about it. Outline a little about the kind of brand that you hope to develop and set out a mission statement and values to follow.
2) Objectives – Set out your goals for your daycare business in short, medium and long term time frames.
3) Company Ownership – list all the partners or investors that have an ownership stake in the business and describe the extent of their involvement.
4) Start-up requirements – List all the things that have to happen for you to get started. Most importantly you need to put a dollar figure on everything and come up with the total start-up cost. Some business plans also include operating costs for the first few months in their start-up requirements calculation.
5) Market Analysis – Introduce any market research that you have done and draw conclusions based upon it. Describe the niche market sector that you wish to target and profile your typical customer. Outline your local competitors and explain how you will differentiate your service from theirs.
6) Marketing – Set out a marketing strategy to explain how you will bring new clients into your daycare. Propose an advertising strategy and a sales strategy.
7) Management Structure – Set out a management hierarchy in a chart showing the role of each business owner and employee.
8) Staffing Requirements – Estimate staffing costs, the number of staff required and necessary training. Include a timeline that explains at what point new employees will be taken on as the business grows.
9) Financial forecasting – Include spreadsheets with your business plan that show anticipated cash flows or revenues and costs coming in and flowing out of the business. Try to make a range of profit forecasts depending on a variety of scenarios.