Business Plan Outline for Child Care Providers

Business Plan Elements

Cover Sheet

I. Name, address and phone number of business
II. Names of principals

Statement of purpose

Table of Contents

I. The Business

A. Description of the business
B. Location of the business
C. Competition and feasibility study D. Operating procedures and policies E. Personnel
F. Business Insurance

II. Financial data

A. Application for loan
B. Capital equipment and supply list
C. Balance sheet
D. Break-even analysis
E. Income projection statement:
-- Three-year summary
-- Detail by month, first year
-- Detail by quarter, second and third years
-- Assumptions upon which projections were based
F. Monthly cash flow projection

III. Supporting documents

A. Tax returns of principals for last three years
B. Personal financial statements (all backs have these forms)
C. Proposed lease agreement
D. Contractors' renovation estimates E. Licenses or other legal documents F. Resumes of all principals
G. Reference letters and/or letters of intent (from suppliers, etc.)
H. Copy of curriculum.

I. The Business

A. Description of the business

Generally explain

1. What types of child care services will be offered.
2. What your curriculum is (or will be).
3. What market you intend to serve, the size of the market and your expected share of the market.
4. Why you can serve that market better than your competitors.
5. Why you have chosen your particular location.
6. What management and other personnel are required and available for the operation.
7. Why your investment or someone else's money (debt/equity) will make your business profitable.

Address the following areas for each section listed:

1. Status of child care center start-up: expansion of a going concern or takeover of an existing child care center?
2. Business form: sole proprietorship, partnership or corporation?
3. Who are the customers?
4. Why is your child care center going to be profitable?
5. When will or did your center open?
6. What hours and days will you be or are you in operation?

For a new child care center, address the following areas:

7. Why will you be successful in the child care business?
8. What is your experience in the child care business?
9. Have you spoken with other people in the business about their experiences, challenges and rewards? What was their response?
10. What will be special about your center?
11. Have you spoken with prospective trade suppliers (i.e., educational materials, toys, food distributors) to find out what managerial and/or technical help they will provide?
12. Have you asked about trade credit?
13. If you will be doing any contract work, what are the terms of the agreements?
(Reference any firm contract and include it as a supporting document.)
14. Do you have letters of intent for prospective suppliers or purchases?

B. Location of the business

1. What are the attributes of your business location?
2. Will you buy or lease the space?
3. What is the cost of the space? Is it competitive with comparable space in the general area?
4. What are the advantages and disadvantages of the site with reference to wage rates, labor unions and labor availability?
5. How much space do you need?
6. What is the building's proximity to clients or suppliers?
7. What is the building's access to public transportation and parking?
8. What are the state and local taxes, state and local laws, utilities and zoning variables that may affect the location of your center?
9. Does the surrounding community show enthusiasm for you and your business?

C. Competition and feasibility study

1. Who are your five nearest competitors?
2. How will your center be better than theirs?
3. How is their business -- Steady? Increasing? Decreasing?
4. How are their operations similar and dissimilar to yours?
5. What are their strengths and weaknesses?

D. Operating procedures and policies

1. What is or will be the payment policy?
2. How are rates determined?
3. How will legal matters be addressed?
4. How will volunteer assistance be managed?
5. What will the parents' handbook contain regarding the center's rules and regulations?
6. What are the procedures for handling emergencies?

E. Personnel

1. What are your personnel needs now? In the near future? In five years?
2. What skills must personnel have?
3. Are the people you need available?
4. Will your employees be full- or part-time?
5. Will you pay salaries or hourly wages or both?
6. Will you provide fringe benefits? If so, what? Have you calculated the cost of these fringe benefits?
7. Will employees be required to work overtime occasionally?
8. Will you have to train people? If so, at what cost to the business?

F. Business insurance

1. State the amount of your insurance policy and give a brief summary of what is covered:

a) Property
b) Personal injury
c) Loss of key person

2. You may also want to state that the policy is available for inspection upon request.

II. Financial Data

III. Supporting Documents