Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Download for free

Free Business Planning Webinar:

AI and Your Plan Register Now

Day Care icon Day Care Business Plan

Start your plan

Safe Kids Child Care

Executive Summary

Opportunity

Problem

There are an increasing amount of families who have become dependent on two incomes, which has created the necessity of the child care industry. Increasing need means that there are more children that are in need of a safe enriching place to go. 

Solution

Safe Kids Child Care will succeed by offering its clients’ children a safe and secure care environment, and close personal attention. The goals of the center are dual-sided: to help parents feel good about the care of their children, and to make it a safe, educational, and fun experience for the child. 

Market

Safe Kids Child Care has a focus on meeting the local need for child care services within the 10-mile radius of Lynn. Children are taken in flexibly on either a full-time or part-time basis.

Competition

There are over 300 child care providers in the local area. The larger commercial chain child care centers, such as KinderCare, have a majority of the market share. These larger chains compete well because of a good reputation among the consumer market. Safe Kids Child Care offers a lower staff to child ratio, which is appealing to most parents. Additionally, the company maintains child care fee levels that are 5-10% below the average of that of the large commercial chain child care fees.

Why Us?

 Safe Kids Child Care offers a lower staff to child ratio, which is appealing to most parents. Additionally, the company maintains child care fee levels that are 5-10% below the average of that of the large commercial chain child care fees.

Expectations

Forecast

Safe Kids is an exciting opportunity that provides safe and secure child care to the Lynn, MA neighborhood. Safe Kids will reach sustainable profitability over the next three years. Through a combination of well-priced services, outstanding customer service, and a well seasoned management team, Safe Kids will quickly gain market share and a reputation as a premier child care provider.

Financial Highlights by Year

Chart visualizing the data for Financial Highlights by Year

Financing Needed

We plan on having $40,000 to start our business. Each owner will contribute $20,000 to our opening costs. 

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Opportunity

Problem & Solution

Problem Worth Solving

The child care market is quite competitive in the Boston area. There are over 300 different facilities. There are two general types of facilities. The larger style is commercially run, typically a corporate franchise center. These facilities are both regional and national. Currently, the four largest child care facilities in the USA account for 29% of the market. There are also many different smaller locally run and owned faculties. While the largest facilities can host between 20-100 children, the locally run centers typically have a maximum capacity of 20 children.

Problem Worth Solving

The child care market is quite competitive in the Boston area. There are over 300 different facilities. There are two general types of facilities. The larger style is commercially run, typically a corporate franchise center. These facilities are both regional and national. Currently, the four largest child care facilities in the USA account for 29% of the market. There are also many different smaller locally run and owned faculties. While the largest facilities can host between 20-100 children, the locally run centers typically have a maximum capacity of 20 children.

Target Market

Market Size & Segments

Safe Kids Child Care has a focus on meeting the local need for child care services within the 10-mile radius of Lynn. Children are taken in flexibly on either a full-time or part-time basis.

Full-Time Working Couples

The company wants to establish a significantly large full-time regular client base in order to establish a healthy, consistent revenue base to ensure stability of the business. Customer relations are extremely important, as it is imperative to keep the parents pleased in order to keep their children in the daycare center.

Part-Time Workers / Drop-Ins

Part-time workers and drop-ins comprise approximately 20% of revenues. While this market is not the primary focus, sufficient flexibility to handle this secondary market is important to producing supplemental revenues.

Competition

Current Alternatives

There are over 300 child care providers in the local area. The larger commercial chain child care centers, such as KinderCare, have a majority of the market share. These larger chains compete well because of a good reputation among the consumer market. Safe Kids Child Care offers a lower staff to child ratio, which is appealing to most parents. Additionally, the company maintains child care fee levels that are 5-10% below the average of that of the large commercial chain child care fees.

Our Advantages

Child care competitive edge is the facility’s efforts in obtaining all appropriate licensing and certifications. Additionally, thorough pre-hire background screenings are performed on all individuals before hired for employment.

Keys to Success

Keys to Success

Keys to success for the company will include:

  1. Maintaining a reputable and untarnished reputation in the community. 
  2. Quality care. 
  3. Competitive pricing. 
  4. Flexible hours.
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Execution

Marketing & Sales

Marketing Plan

The differentiating effort will be benchmarked customer service. A customer-centric philosophy will be infused within the entire organization. Safe Kids will spend extra money to attract and train the best employees. This is especially important because it is the employees that interact with both the children and parents and will have the best chance to impress them enough to turn them into a loyal customer as well as to be vocal in telling their friends about their positive child care experience. 

We will have a Social Media Campaign which uses Facebook and Linked in. We will have experts answer child care questions if the public wants. This gives the public confidence that we know what we doing. We will have customer reviews and allow our customers to talk to us. 

Sales Plan

Safe Kids Child Care will make a significant profit through the excellent care of children. Even though Safe Kids charges less, the company will see profit within the first year due to beneficial word-of-mouth advertising. The company expects to double its’ clientele every six months, for the first 18 months.

Operations

Locations & Facilities

The facility will originally consist of a 1,300 sq. ft. house in a quiet, residential neighborhood. The yard will be fully fenced in, to ensure no one can either come in or wander away. The yard will be furnished with safe, entertaining toys, as well as a sandbox.

Milestones & Metrics

Key Metrics

Our Key Metrics are: 

  1. Facebook page views, Twitter re-tweets, and new potential clients calling saying that a current client referred them. 
  2. The number of children we take care of daily 
  3. The number of children that are signed up for the monthly care 
  4. The amount of training our staff has to take care of children and keep incidents down to zero. 
  5.  

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Company

Overview

Ownership & Structure

This business will start out as a simple proprietorship, owned by its founders. As the operation grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will better suit the future business needs.

Team

Management Team

Safe Kids will be lead by two child care industry veterans, Andrea Child and Danielle Freelander. Andrea has a sales, marketing, and management background within the industry, having spent seven years at The Toddler Warehouse. During her tenure at Toddler Warehouse, Andrea helped grow the business from $98,000 in yearly revenue to over $4.6 million. Andrea’s partner is Danielle Freelander who has a finance and administration background. Previous to Safe Kids, Danielle worked for The Rug Rat Vault, the seventh largest child care corporation in the USA. While Danielle was at The Rug Rat Vault as CFO, she was able to increase operating profits by 12%, an increase that is generally unheard of in this industry.

Personnel Table

2020 2021 2022
Expert Consultants (2.92) $89,400 $45,000 $45,000
Care Staff (9.61) $246,000 $374,400 $467,256
Managers (2.75) $135,000 $185,400 $190,962
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Financial Plan

Forecast

Key Assumptions

Our key assumptions are: 

  1. There are children from families where both parents work or need to work. The children need somewhere safe and enriching where they can grow and make friends while their parents get a chance to get back to him.
  2. Adults sometimes have emergencies and they need to have a place to leave their children when they can’t be with them 
  3. The community appreciates the it takes a village mentality. They appreciate we have resources and experts that will answer their questions. We assume they will come to us if they need help, we won’t go out of our way to advise. 

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year

Financing

Use of Funds

Our Start-up Expenses are $3000 including: 

Legal $1,000

Brochures $350

Stationery etc. $100

Activity Supplies $250

Food Preparation Supplies $300

First Aid Supplies $200

Cleaning Supplies $150

Nap Time Bedding $250

Other $400

Sources of Funds

Our two owners will put up 20,000 dollars each, totaling 40,000. 

Statements

Projected Profit & Loss

2020 2021 2022
Gross Margin $578,760 $795,000 $1,003,320
Operating Expenses
Salaries & Wages $381,000 $559,800 $658,218
Employee Related Expenses $76,200 $111,960 $131,644
Leased Equipment $1,800 $1,800 $1,800
Certifications $2,400 $2,400 $2,400
Utilities $1,800 $1,800 $1,800
Insurance $3,000 $3,000 $3,000
Rent $24,000 $24,000 $24,000
Startup Expenses – Listed in Use of Funds $3,000
Interest Incurred
Depreciation and Amortization
Gain or Loss from Sale of Assets
Income Taxes $6,845 $7,219 $14,437
Total Expenses $617,285 $791,979 $925,979
Net Profit $78,715 $83,021 $166,021

Projected Balance Sheet

2020 2021 2022
Cash $139,493 $168,779 $190,402
Accounts Receivable $0 $0 $0
Inventory
Other Current Assets
Total Current Assets $139,493 $168,779 $190,402
Long-Term Assets
Accumulated Depreciation
Total Long-Term Assets
Accounts Payable $0 $0 $0
Income Taxes Payable $3,689 $1,766 $3,570
Sales Taxes Payable $17,089 $15,277 $19,075
Short-Term Debt
Prepaid Revenue
Total Current Liabilities $20,778 $17,043 $22,645
Long-Term Debt
Long-Term Liabilities
Paid-In Capital $40,000 $40,000 $40,000
Retained Earnings $28,715 ($38,264)
Earnings $78,715 $83,021 $166,021

Projected Cash Flow Statement

2020 2021 2022
Net Cash Flow from Operations
Net Profit $78,715 $83,021 $166,021
Depreciation & Amortization
Change in Accounts Receivable $0 $0 $0
Change in Inventory
Change in Accounts Payable $0 $0 $0
Change in Income Tax Payable $3,689 ($1,923) $1,804
Change in Sales Tax Payable $17,089 ($1,812) $3,798
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold
Investments Received $40,000
Dividends & Distributions ($50,000) ($150,000)
Change in Short-Term Debt
Change in Long-Term Debt
Cash at Beginning of Period $0 $139,493 $168,779
Net Change in Cash $139,493 $29,286 $21,623
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan