The Pediatric Warehouse is a full-service child care/development facility that

cares for toddlers from age three to five. The Pediatric Warehouse will be
concentrating on the upper end of the market: double-income professional
parents. These personally ambitious parents are typically eager in terms of
their children's development and will be willing to pay to have their children
attend the best facilities.

Through specialized training of the staff and innovative learning systems,

The Toddler Warehouse is cutting edge in terms of child development. This
curriculum, coupled with a custom designed facility and a low
teacher:student ratio ensures a top shelf service for the children and the
parents.

The Toddler Warehouse expects to become profitable by month 11, and has
projected a modest net profit by year three.

1.1 Objectives

The objectives for the first three years of operation include:

 To create a service based operation whose primary goal is to exceed

customer's expectations.

 The utilization of The Toddler Warehouse by at least 40 different

families in the first eight months.

 To increase the number of client's served by 20% each year.

 To develop a sustainable, profitable, start-up business.

1.2 Mission

The Toddler Warehouse's mission is to provide top level child care. We exist
to attract and maintain customers. When we adhere to this maxim, everything
else will fall into place. Our services will exceed the expectations of our
customers.

Company Summary
The Pediatric Warehouse, soon to be located in Salem, OR, will offer child
care services for kids between the ages of three and five. The Toddler
Warehouse will offer services from 6 a.m. to 7 p.m. The children will be
exposed to a wide range of activities including arts and crafts, socialization,
large muscle group activities, and general learning. The Toddler Warehouse
will be priced out of some people's budget, but will offer a low student to
teacher ratio and well trained staff. The Toddler Warehouse will be located in
a recently purchased and converted home that now is solely a child care
center.

2.1 Company Ownership

The Pediatric Warehouse will be an Oregon Corporation, founded and owned

by Matt Ernal.
2.2 Start-up Summary

The Toddler Warehouse's start-up costs include:

 The purchase of a four bedroom house and the appropriate renovations

to bring it up to code in reference to bathrooms and kitchen
(depreciated using the straight line method)

 Stackable chairs (depreciated)

 Tables (depreciated)

 Office furniture (depreciated)

 TV and VCR (depreciated)

 Sleeping mats and pillows (depreciated)

 Outdoor playground set (depreciated)

 Storage bins (depreciated)

 Laundry facilities (depreciated)

 Computer system with printer, CD-RW, and Internet connection

(depreciated)

 Copier and fax machine (depreciated)

 Art supplies

 Toys

 Medicine kits

 Kitchen supplies
  Brochures

 Cleaning supplies

 Legal fees

 Advertising costs

Services
The Toddler Warehouse offers Salem an upper-end child care facility for
toddlers age three to five. The Toddler Warehouse offers a low teacher to
student ratio, custom facilities, and innovative learning programs.
The Toddler Warehouse hours will be a bit wider rage than normal business
hours to accommodate the working parents, the target customer.

The two income families have children, yet both parents work. The Toddler
Warehouse is an innovative solution that acts as virtual parents, broadening
the children's skills during the day. This is not a baby sitter facility. The
children are engaged throughout the day, learning new skills and reinforcing
already acquired ones.
Market Analysis Summary
The Toddler Warehouse will be offering child care/development for toddlers
age three to five. The Toddler Warehouse will be targeting double income
professional families who, because of work obligations, do not have the time
during the day to care for their child. The Toddler Warehouse will be
targeting families that are interested in something more than simple baby-
sitting facilities, they would like the children to be enrolled in a program that
offers development of many different skills including: socialization skills,
arts and crafts, large muscle group workouts, reading, numbers, etc. Parents
who are professionals, who are ambitious by nature themselves, are typically
eager for their children to move ahead and are willing to pay for the best
development care services for their children.

4.1 Market Segmentation

The Toddler Warehouse is targeting one specific customer group, the middle
to upper class, two income professional family. This group of families have
both parents working, not allowing them time to raise their child during the
day. This group has the money for child care, and are willing to spend a little
extra to get a higher level of care.

This customer segment has already begun teaching it's child advanced
concepts like reading, singing, socialization, etc. The Toddler Warehouse will
continue to develop the children's skills.
This customer group is typically made up of two professional parents. This
would explain why the parents 1) have the money for more sophisticated
child care, and 2) are ambitious in terms of their children's learning and
development.

4.2 Target
Market Segment Strategy

The Toddler Warehouse intends to concentrate on the double income

working professional families because they are the segment that can most
readily afford day care, are the ones who need day care because of their work
obligations, appreciate the advanced learning and development The Toddler
Warehouse has to offer, and lastly are a growing segment of our society.

With both parents working, this segment needs some sort of provisions for
the care of their child. While the Department of Labor indicates that over
50% of children are cared by relatives compared to 29% for a commercial
day care center, our targeted group prefers a more structured learning
environment. Relatives are great for nights out or weekends, but they do not
compare to a structured program when it comes to the learning and
development that occurs at The Toddler Warehouse. Having both parents as
professionals, they are ambitious with the development of their child and are
willing to pay to get the best program for their prodigy.

As America continues to be a society of people working long hours, there

will always be the need for child care. The trend of longer work weeks is
increasing and this drives The Toddler Warehouse's business.

4.3 Service Business Analysis

The Toddler Warehouse will be competing in the child care industry. This
industry is fairly broad and populated, there are companies at all levels, from
the basic baby sitter services, to competitors of The Toddler Warehouse.
There are service providers that offer standard business hours as well as
services that offer night and evening hours. There are scheduled services and
no reservation drop off services. Price, quality, and gut feeling drives a lot of
parental choices. The Toddler Warehouse believes the secret to success is to
1) concentrate on only a portion of the market, and 2) choose a portion of the
market that is growing.

4.3.1 Competition and Buying Patterns

There are many different competitors in the child care space. The Toddler
Warehouse will only detail the direct, or reasonably direct competitors, and
will not detail the myriad of other service providers that offer some sort of
child care option. The direct competitors are:
1. Established, often franchised, child care centers. These are typically
larger facilities that offer care to a wide range of ages. The number of
children serviced is usually quite large. The child care is adequate,
although somewhat impersonal by virtue of its large size.

2. Small, home based child care. These competitors are people that have a
child care facility based out of their house. The quality of these ranges
considerably, some are great, some are sub par.

3. Medium sized companies. These are typically independently owned

facilities. Some of theses will handle a wide range of ages, others will
specialize with a specific age group.