Little Angels - Case Study Example

Business Plan - Daycare Center Little Angels Childcare Center will be independently owned and run by the owner. The owner has over 20 years experience working with children seven οf those years has been served in the Public School district working with disabled students. The owner will be supported with the daily operation οf the center through her father who will be responsible for the web site, her sister who has 10 years experience in the financial sector and will ensure that the center is meeting targeted goals. With the increase in inflation and more single parents, the typical family is now finding the need to have both parents work outside the home. This trend has created a need for quality and affordable childcare. The population growth in the city area increased 15.7% between 1990 and 2000 and is expected to increase 1.3% over the next decade (citydata.com, 2007). This leads Little Angels Childcare Center to believe that quality childcare services will be needed more in the near future. Price, services, and reputation will be critical to the success οf the center. The center will compete well with the competition by offering competitive pricing, high-quality childcare services, and maintaining a positive reputation within the community as well as with parents and staff members. Little Angels Childcare Center will focus and market within a ten-mile radius οf the center. With three elementary schools close by the center expects to reach a reasonable amount οf clients. The target incomes are the dual-income households and single working parents within the area, who have children from the ages οf six-weeks to 12 years. The center plans to open for business September οf 2007 just before school starts with an initial enrollment οf four infants, eight toddlers, six preschool, and ten after/before school. We anticipate having healthy revenue by the end οf the first year οf operations. The biggest expense that the center is looking at is the purchase οf the building as well as improvements to the building prior to the opening date. Growth is planned conservatively as we will be financing growth strictly through existing cash flow. Beginning in the second year the center sees a strong net profit. The center objectives are to: - Increase sales by double after the first year οf operations. - Maintain a high gross margin by the end οf the first fiscal year. Philosophy Little Angels Childcare Center believes that quality childcare is an addition οf each family. Each child will be encouraged to learn and develop to the best οf his/her capability. With leadership and understanding, each child will gain the understanding οf self-importance and will be able to discover their world in a safe and structured environment. The center has a strong sense οf commitment to the community and families in which it serves. That is why the center will implement an open door policy and embrace all those that which to enroll their child into our programs. We will work to provide quality childcare at affordable prices and provide a wide range οf programs to meet the needs οf the families within the community. General Company Description Little Angels Childcare Center will be located in WA, on the North side οf town. The center will employ at the opening οf the center three full time and four half time employees, as well as two on-call staff members. These individuals will be the force behind the services that will be offered from the center. Some οf the services offered include: - Quality childcare services - An activity based, child level appropriate curriculum - Developmental programs - Before and after school care - Lunch and two snacks - Transportation for students to and from school Mission Statement The Little Angels Childcare Center exists to offer a secure, developmentally suitable environment for infants through school age children. Our focal point is to offer a stimulating early care and education understanding, which promotes each childs social/emotional, physical, and cognitive growth. Our goal is to support a child’s need to become a life-long learner. Company Goals and Objectives: Increase enrollment to almost double by the end οf the first year Maintain a high gross margin by the end οf the first fiscal year Business Philosophy Little Angels Childcare Center believes that quality childcare is an extension οf each family. Each child will be encouraged to learn and develop to the best οf their capability. With leadership and understanding, each child will gain the understanding οf self-importance and will be able to discover their world in a safe and structured environment. The programs offered will respond to the various needs and interests οf each child on an individual level as well as a group setting. The targeted audience will include those families where both parents work, single working mothers/fathers, and those that work part time or may need childcare on a drop off basis. The targeted audience will also live within a five mile radius οf the daycare and attend one οf the four elementary schools that are close by. The childcare industry is a growing business fueled by the ever-increasing need οf mothers to work outside the home. According to PowerHomeBiz.com (2006), “many experts expect the demand to increase through the turn οf the century, and the popularity οf this type οf business to continue growing from there” (p. 1). The changes that are seen for the future both short term and long term include the need for childcare centers that allow special needs children. With more and more children, being born with birth defects the need is becoming increasingly higher. For those childcare centers that offer both special needs services and regular services will give them the competitive edge within the industry. Little Angels Childcare Center will offer both special needs services as well as regular childcare for working parents. Little Angels Childcare Center will offer not only special needs program for those children that need special accommodations, but also will offer a home atmosphere that will make parents and children comfortable in the center. Some οf the major competitive strengths that Little Angels will offer are: Experience Affordability Hours οf operation Child centered curriculum Relationships with parents and community Raising self-esteem in children I have had over 20 years οf experience working with children. From daycare, experience to working with the Spokane Public School district with the special needs students. This experience has made me well prepared for a venture into a childcare business. Some key strengths that I possess is able to work well with children, promote positive relationships with parents, and the ability to develop a program that will meet the needs οf all children enrolled in the center. The facility that is desired is a freestanding building that is located close to parks and schools. The facility has the capacity to hold 45-60 children comfortably. The building contains separate classrooms that will be used for different age groups as well as an office, dining area, kitchen, and playground area outside. Little Angels Childcare Center will provide childcare for children from the ages οf 6 weeks to 12 years οf age, as well as children with any disabilities. The services that are offered from the daycare include; games, art activities, and learning programs in a structured environment. Breakfast, snacks, and lunches will be provided daily. The hours οf operation will be from 6:00 am to 7:00 pm Monday through Friday. The area in which Little Angels is situated is an older community with starter homes ranging from $139,000 to 250,000. The area also boasts οf young families that are moving into the area. The facility is situated close to several elementary schools and is an ideal location for working families with young children and school age children. Little Angels will provide preschool academics in the morning to help each child reach his or her potential. There will also be drop off services, if there are open slots, for those parents that may find themselves in a bind and without childcare services. The center will also transport school age children to and from school thus relieving parents οf the worry οf how his or her child will get to school and from school for an extra charge. The daycare will offer parents the option to pre-pay or to post-pay. Those that wish to pre-pay will receive a 10% discount rate, which will be the incentive for parents to pay early. Parents with more than one child will also receive a discount on the second and subsequent children. Parents will be required to sign a contract verifying that they understand the rules and regulations οf the daycare pertaining to dropping off children and picking up children as well as payment options. If a parent does not pick up children on time, the center will charge $5 for every ten minutes the parents are late. There will also be a $15 charge added to the bill for those parents who do not pay on time and a $25 charge added to all returned checks. Legal form οf ownership Little Angels Childcare Center will be an S-Corporation owned 100 percent by a single owner. The S-Corporation was chosen to limit personal legal responsibility. The owner will apply for all state and federal business licenses that are required in order to open the center. The name will also be registered with the state and protected as a trade name. An advisory committee will be established that will consist οf the owner, an accountant, and legal representation. Products and Services Little Angels Childcare Center will offer upscale childcare services as well as childcare services for those children that need special accommodations. Normal business hours will be Monday through Friday from 6:00 am to 7:00 pm, and will be closed on major holidays. The center will also provide drop off services on a first-come-first-serve basis. The center will be constructed to make all children as well as parents feel like they are at home. With vivid colors, curtains and furnishings to make the center feel more like a home and less like a childcare facility. Little Angels Childcare Center will provide a leading childcare service that is aimed at enhancing conventional childcare methods and will integrate extra services such as field trips for older children, arts and crafts, dance, and music into one program. The center will also offer tutoring services with the after school program to help those children that are in need οf homework help. Lastly, we will offer a developmental program that will help to reinforce basic social, listening, independence, and motor skills that will help to prepare children for future related interaction. Some οf the factors οf Little Angels Childcare Center that will give us the competitive edge include: A home atmosphere Hot meals and snacks Enrollment οf special needs children The location οf the center Special nights Marketing Plan Little Angels Childcare Center will offer services that are imperative in today’s rapidly moving, dual income world. As rising amounts οf families have become reliant on two incomes, the need for quality childcare has also increased. According to the Washington State Child Care Resource and Referral Network (2006), in 2005 there were “175,000 in licensed care with an estimated 35,000 or more caregivers in Washington State on any given day. . .” (p. 1). With these numbers in mind, there is room for another daycare that offers quality and value for working families. Market Segmentation Building Block’s focus is to target those families that live within a 10-mile radius οf the center. Children will be enrolled on a part-time or a full time basis with a few slots open daily for those parents that need drop off services. Full Time Working Couples The center hopes to establish a large full-time clientele base, which will allow the center to realize a strong revenue base needed in order to be successful. Little Angels also plans to have a strong parent and community relationship in order to ensure that enrollment is full. After School Care Another large portion οf the business that will be done by Little Angels is the enrollment οf school-aged children. The child/adult ratio is much higher with these students so the center can realize a larger profit with this segment. The center will also offer the option for parents to pay more for taking and picking up his or her child from school, thus relieving them οf the burden. These school-aged children will also receive tutoring services; summer and holiday break field trips. Part Time Children and Drop off Services Part time and drop off services will only bring in a small portion οf revenue. While this portion οf the daycare is not primarily focused on, having this option will allow those who do use the service to recommend our services to friends and family members looking for a childcare center for their own children. Market Need With the increase in inflation and the economy declining, more parents are returning to work. With more working families, the need for quality and affordable childcare is an important issue. Spokane has seen an increase in population over the last decade. From 1990 to 2000, the population increased 15.7% and is expected to increase 1.3% over the next decade (citydata.com, 2007). A current poll that was done from about.com shows on average what parents typically pay on a weekly basis for childcare services :(about.com) Market Trends Due to the new laws that govern education such as the “No Child Left Behind Act” childcare is now being seen as more than just babysitting. According to McClure (2007), “childcare centers have mostly transitioned to centers for early education, where young tots are involved with early learning (p. 1). Research also finds that children are able to learn at a young age and when placed in preschool programs are able to do better when he or she reaches school age. With the increase in technology more parents are searching the web to find quality affordable childcare in his or her city. This feature allows parents to view childcare issues, in some cases, pricing, mission statement, and curriculum guidelines without having to leave their home to find a quality childcare center. Marketing Strategy The marketing strategy οf Little Angels Childcare Center will depend heavily on reputation and word οf mouth. This will start with our commitment to the community and to those families that we serve. Marketing Programs Dinner open houses, parent/child night, and fundraisers, are but a few ways we will reach out to our neighborhood. We will also maintain and develop partnerships with local businesses that cater to the needs οf children, such as dance studios, karate classes, and the YMCA. We will have a pre-opening party, which will include a barbecue free οf charge, tours οf the center, face painting, and an application fee waiver for those that enroll their children during the open house. The center will also host a babysitting night in December free οf charge. This will be our Christmas present to our parents. The night will consist οf movies and dinner and will allow parents to do some Christmas shopping without having to take their children. The Christmas shopping night will be held on a Saturday and will be from 4:00 p.m. to 8 p.m. Competition Price, location, and reputation will be a critical factor in the success οf Little Angels. We will compete in the market by offering the most aggressive prices, first-rate childcare services, as well as leading edge οf age appropriate curriculum programs. The center will also maintain positive relationships within the community and with parents. Read More