Kid's Community College® offers services which are vitally important in today's fast paced, dual-income world. As an increasing number of families have become dependent on two incomes, the need for quality child care has skyrocketed. According to Florida Business Statistics, 84.6% of licensed child care facilities succeed and make a profit in their 1st year of operation. Nationally, this number is 66.7%.
There is no doubt, in the Riverview, FL area, that there is room and a need for Kid's Community College®. Market demographics to support this statement can be found below.
Kid's Community College® has a focus on meeting the local community need for child care services within the 10-mile radius of Riverview. Students will be taken in flexibly on either a full-time or part-time basis.
Full-Time Working Couples
The college will establish a significantly large, full-time, regular client base in order to establish the healthy, consistent revenue base which will ensure stability of the business. Customer and community relations are extremely important, as it is imperative to keep the parents pleased in order to keep their children in the college.
After School Care
Another large segment of the college's business will be in the after school care market. This client base will provide a higher profit for the college since instructor-to-student ratios are higher, and the students require more educational services, which are the primary focus of the college. By offering tutoring, and advanced studies in technology, theatre, arts and sciences, the college will attract these profitable business clients, producing significant supplemental revenues.
Part-time workers and Drop-Ins from the fitness center and locals businesses will comprise less than 1% of the revenues. While this market is not a primary focus, sufficient flexibility to handle this market is important to the local 'word-of-mouth' marketing strategy.
Under 5 Years
5 to 9 Years
10 to 12 Years
Target Market Segment Strategy
The target market for Kid's Community College® is full-time working couples. Referral marketing, direct-mail campaigns and community activity days will be the primary types of marketing strategies utilized. Maintaining and enhancing its reputation with families and in the community will be crucial in obtaining the planned market share growth of this target market.
According to US Census 2000 data, the population growth rate for Hillsborough county is approximately 2%, which is reflected in the market analysis summary. However, the Riverview area of Hillsborough County is experiencing a residential construction boom, yielding well over a 14.6% growth. This is supported by data obtained from the Hillsborough County Building Permits office and is included in the appendix of this plan. This suggests that more families continue to move into the Riverview area, thus becoming potential customers.
In our market analysis, we suggest a modest 6% yearly growth in the number of potential customers.
With inflation continuing to rise each year, the typical American family now requires dual or supplemental incomes. This trend has created a need for quality child care services. We do not see this model changing in the foreseeable future. In fact, based on the growth in the Riverview area, specifically the new Lake St. Charles and Village of Lake St. Charles communities, we expect the need to increase.
Currently there are more family caregivers than licensed child care facilities nationwide. However, this business model can't keep up with the needs of the growing child care industry. In the family care giver paradigm, space is limited and quality of care is questionable - in many cases viewed as only slightly higher quality than babysitter services.
Service Business Analysis
Kid's Community College® is in the child care services industry, which includes several models:
Licensed Child Care Facilities: Business facilities that offer child daycare services.
Family Child Care Homes: Individuals that offer child daycare services in their homes.
Specific Interest Based Programs: Businesses that offer specialized instruction such as gymnastics, martial arts and athletics.
Church Child Care Facilities: Religious organizations that offer child daycare services in their communities.
Competition and Buying Patterns
Price, service, certification and reputation are critical success factors in the child care services industry. Kid's Community College® will compete well in our market by offering competitive prices, high-quality child care services, and leading-edge educational programs with certified, college-educated instructors, and by maintaining an excellent reputation with parents and the community in which we serve.
Catholic Church Day Care:
Strengths: Large church congregation. Already established in market.
Weaknesses: May not appeal to customers of different religious beliefs. Unlicensed facility. Non-accredited.
Martial Arts America - Kick Kare:
Strengths: Already established in area. Martial arts offering with child care services.
Weaknesses: Location - outside of middle-income market. Non-educational offering. Building condition - prone to constant flooding.
Family Child Care Homes:
Strengths: Established in market. "Personal" service.
Weaknesses: Capacity - only allowed a certain number of children. Non-professional stigma.
Licensed Child Care Centers: Kids Kountry, Lapetite Academy, Mary Go Round Child Care Center and Bloomingdale Academy. While these centers are within the 10-mile radius target area, none are inside a 5-mile radius of the Lake St. Charles community. None of these facilities are nationally accredited.
Family Child Care Homes: Mindy Rumore FCCH and Stacie Dawn Hamann FCCH.
Specific Interest Based Programs: Martial Arts America
Church Child Care Facilities: Christian Day Academy (not licensed).