The Toddler Warehouse

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Child Care Business Plan

Strategy and Implementation Summary

The Toddler Warehouse is targeting a very specialize niche in child care space. With this in mind, The Toddler Warehouse must then carefully communicate it's services if the company is to be patronized by this target segment. What will be communicated are The Toddler Warehouse's competitive advantages: specialized training of the staff and innovative learning programs. If the targeted parent hears and understands these advantages, they will more likely be willing to switch to The Toddler Warehouse's service.

In addition, The Toddler Warehouse will be using tours of the facilities to sell it's services. Tours in the industry are pretty standard. Most parents want to see a facility before they will send their kids there. The Toddler Warehouse's facilities are so good that they speak for themselves. Therefore, it will be a priority to get the parents to view the facilities and that will convince them.

5.1 Competitive Edge

The Toddler Warehouse's competitive edge is two-fold:

  1. Specialized training- The facility can only be as good as the teachers and assistants. With this in mind, The Toddler Warehouse has a specialized training program that all teachers and assistants are put through so they are proficient at teaching the specific programs that The Toddler Warehouse has developed for toddlers age three to five. The employees are put through an intensive week long course and only after they pass the intensive training will they be allowed to work with the children.

  2. Innovative learning programs- Typical learning programs for toddlers this age focus on specific traits and only work on one trait/ skill at once. While this is successful in reinforcing the skill, it is often very difficult for the child to appreciate the interrelationships of the different skills. Consequently, the child can learn the skill, but has difficulty applying the skill when faced with multiple stimuli. When the child is unsure of what to do because of the multiple stimuli and these several skills that they have learned independently, the child tends to shut down out of confusion. Matt's Master's thesis was based on Intertwined Learning Systems that teaches skills not in isolation from each other, but taught together. Matt's research strongly supports the assertion that when the skills are taught together, just as you would expect to encounter them in real life, the children are able to assimilate the new task into their skill set much quicker.

5.2 Sales Strategy

The Toddler Warehouse's sales strategy will be targeting double income working professional families. These families have the money to spend on child care and these parents are much more likely to appreciate the advanced learning systems taught at The Toddler Warehouse based on Matt's thesis.

The sales strategy will be based on a communication effort to explain the virtues of the program and how time at The Toddler Warehouse can speed up the children's development considerably. In addition to one on one explanations of the program and its merits, the prospective parents will be given tours of the facilities. The tour of the facility will serve two purposes:

  1. The tour will be used as a way to impress the prospect of the facilities that The Toddler Warehouse has. These facilities were custom designed to achieve very specific educational goals and The Toddler Warehouse is immensely proud of the facilities.

  2. The tours typically occur during the day and this becomes a perfect opportunity for the potential customer to view the care as it is occurring. This will serve to build a trust bond between The Toddler Warehouse and the parent who naturally is cautious about leaving the child with strangers to have the child cared for and taught the entire day.

In essence, The Toddler Warehouse  is letting the facilities and teacher/student interactions speak for themselves. Because of the high level of service, this is entirely possible.

5.2.1 Sales Forecast

The first two months will be spent renovating the house and bringing it up to specifications, both for the state health and license codes, and Matt's specifications. During this time, Matt will be finishing up the training program and manuals. Although Matt had designed an entire training program as part of his Master's in Education, he is re-working it so it is custom designed for his new facility.

The first week of the third month will be used for training of the staff. By the middle of the third month The Toddler Warehouse will begin accepting children for care. It is anticipated that the facility will be under-utilized until the eighth month. By then, word will have spread and the classes will be filling up quite nicely.

From month seven on, there will be a steady, incremental increase in sales.

Sales Forecast
Year 1 Year 2 Year 3
Two income professional families $174,425 $335,458 $351,254
Other $0 $0 $0
Total Sales $174,425 $335,458 $351,254
Direct Cost of Sales Year 1 Year 2 Year 3
Two income professional families $3,489 $6,709 $7,025
Other $0 $0 $0
Subtotal Direct Cost of Sales $3,489 $6,709 $7,025

5.3 Milestones

The Toddler Warehouse will have several milestones early on:

  1. Business plan completion. This will be done as a road map for the organization. While we do not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company.
  2. Finish renovating the facilities.
  3. First group of teachers and assistants trained.
Milestone Start Date End Date Budget Manager Department
Business plan completion 1/1/2001 2/1/2001 $0 Matt Marketing
Finish renovating the facilities 1/1/2001 3/1/2001 $0 Matt Department
First group of teachers and assistants trained 3/1/2001 3/15/2001 $0 Matt Department
Totals $0