HARME KIDS AND CHILD

CARE BUSINESS PLAN

Bishoftu, Kebele 01

LIST OF OWNERS ID. NO.

1.MR DEMSU SHEMELES………………………..
2.MR GUTU TESFAYE…………………………….
3.MR TEKLEGORGIS ESHETU………………..
4.MR NIGUSU ABI………………………………..
5 .MR JARSO BIRA……………………………….
6.MR DAWIT GIZACHEW…………………….
7.MS LEYILA NABI………………………………….
8.MS YORDANOSE TUJUBA…………………..
9.MS ETAFERAHU. ASEFA…………………..
10.MS FREHIWET TESHOME……………….

MAY, 2023
BISHOFTU, ETHIOPIA
 Table of Contents
Table of contents……………………………………………………………………..…………. i
List of Tables.............................................................................................................................................iii
List of Figures...........................................................................................................................................iv
Executive Summary...................................................................................................................................v
1 INTRODUCTION..................................................................................................................................1
1.1 Name and Address of the Business.................................................................................................1
1.2 Statement of Financial Need/ Finding Requirements..............................................................1
1.3 Nature of the Business/The Service..........................................................................................1
2. Kids and Child Care Industry Analysis...............................................................................................1
2.1. Future outlook and Trends............................................................................................................2
2.2. Analysis of competitors..................................................................................................................2
2.3. Market Segmentation.....................................................................................................................2
2.4. Industry forecast.............................................................................................................................4
3. Description of venture............................................................................................................................4
3.1. Objectives........................................................................................................................................4
3.2. Our Vision Statement.....................................................................................................................5
3.3. Our Mission Statement...................................................................................................................5
3.4 Five years Goals of this Business....................................................................................................5
3.5 Our Services.....................................................................................................................................5
3.5.1. Our Customers.........................................................................................................................5
3.5.2. Our Services Strategy and Implementation Summary.........................................................6
3.6. Size of Business..............................................................................................................................6
3.7. Office Equipment and Service Materials......................................................................................7
3.8 Background of the Founders...........................................................................................................7
4. Marketing Plan....................................................................................................................................7
4.1 Pricing..............................................................................................................................................8
4.2 Promotion.........................................................................................................................................8
4.3 Place..................................................................................................................................................8
4.4 Sales Forecast...................................................................................................................................8
4.5 Controlling mechanism and Keys to Success.................................................................................9
5. Organizational Plan.................................................................................................................................9

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 5.1. Form of Ownership........................................................................................................................9
5.2. Organizational structure..............................................................................................................10
5.3 Management Team and background...........................................................................................10
5.4 Roles and responsibility of members of the organization...........................................................11
6 Financial plan.......................................................................................................................................12
6.1. Start-up Materials and equipment expenses...............................................................................12
6.2 Pro forma Income Statement for first year..................................................................................15
6.3. Cash flow Projections...................................................................................................................15
7. Risk Analysis........................................................................................................................................16
7.1. SWOT Analysis.............................................................................................................................16
8. Exit Strategy..........................................................................................................................................17
Appendix……………………………………………………………………………………………………………………………………………….i

ii
List of Tables
Table 1. Start-up materials and equipment expenses…………………….…….13
Table 2. Start-up requirements…………………………………………………14
Table 3. SWOT Analysis…………………………………………………….…16

iii
List of Figures
Figure 1. Market Analysis…………………………………………………………4

Figure 2. Sales forecast………………………………………….………………...9

Figure 3. Organizational Structure…………………………………..…………….10

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Executive Summary
Harme Kids and Child Care is a start-up organization that provides day care services to Bishoftu
communities mainly for kebele 01 residents. This partnership type of business care children
from three months to six years of age. It committed to providing child care services within safe
and secure, where children can be taken care without risk to health and security issue. Harme
Kids and Child Care offers child care services for ages from 3-months kids to 6 years old. Hours
of operation are from 6:00 A.M. to 6:00 P.M. even more time asper the customer requirements
from Monday to Monday. So, it will provide full time service and part time or drop-in too. It
requires 300,000 Birr as an initial capital which can be contributed by each partner. Harme Kids
and Child care maintains fee levels that are 5-10% below the average of that of the large
commercial chain child care fees. Accordingly, it will have Gross revenue of 720,000 birr in the
first year and then grow up gradually.

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1 INTRODUCTION
1.1 Name and Address of the Business
The name of the enterprise is Harme Child Care. Harme is Afaan Oromo name mean that
MOTHER. The reason that we assigned this name is the fact that it implies the cares, passion,
honesty, dedication, courage, responsibility and accountability of mother`s toward the children.
In addition, this name has its own influence on parents to be our customer confidentially and it
uses as a brand and to show longevity of the business.
Harme Child Care will be located in Bishoftu town kebele 01, specific place Getishet back of
Oromia Bank. This location is a strategic area to get different kinds of customers and drop in.

1.2 Statement of Financial Need/ Finding Requirements

Harme Child Care planned to give a service with capital of 300,000 birr. This initial capital can
be gained through equal amount contribution (30,000 birr) from each partner. As result, the
initial capital will be covered by the founder of this business.

1.3 Nature of the Business/The Service

The nature of the business is a service giving partnership enterprise. As the name of the business
indicates the initial focus is providing convinced and satisfactory child care service which shall
dedicates on giving care for children of three months up to six years by full time and part time.

2. Kids and Child Care Industry Analysis

However, the demand of child care is significant, business person`s do not decide confidentially
to enter in this business due to health related risks and difficulty to take care of many kids. But
commercial chain child care centers like TEChZONE and JORGo KinderCare, have a majority of
the market share. These larger chains compete well because of a good reputation among the
consumer market. Harme kids and Child Care offers a lower staff to child ratio, which is
appealing to most parents. In addition, there are no quality child care and schooling in the 1km
radius of the targeted place. The Harme kids and child care believes that by progressing in the
market place first and by stablishing quality facility and services it will become, and remain, a
leader in the educational and community services in the Bishoftu town and other areas.

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2.1. Future outlook and Trends
Previously our communities were not well addressed an advantage of sending their child to Child
care centers relating with backward cultures. But nowadays they clearly understanding that the
child care is a business that are necessary in today`s fast-paced world. As a result, there are an
increasing amount of families who are sending their children to the care centers due to the facts
like:
Inflation; due to this they do not want to spend their time at home. They want to be out to work
and generate income. To do so, they shall prefer to keep their child to secure child care center
within low price.
Shortage market of house care workers; now a day everybody strives to be self-employment.
They want be free and command themselves in any aspects. This is indirectly minimizing the
market of worker wanting to do in people house.
Expensiveness of salary of house care workers; due to their willingness to be self-employment
and self-drive motive there is a shortage of workers and this is come up with the relatively an
expensiveness of the salary of available house care workers.
2.2. Analysis of competitors
The market is quite competitive. There are over nine Child care organizations in the Bishoftu
town. But there are only two competitors found in kebele 01. In order to compute them, Harme
Kids and Child Care will employ two strategies to differentiate themselves. The first is pricing
structure by reducing 5%-10% less than the larger commercial run facilities. The second
differentiating effort will be benchmarked customer service and including positioning. A
customer-centric philosophy will be infused within the entire organization. Harme Child care
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 voice in
telling their friends about their positive child care experience.

2.3. Market Segmentation

The target market for Harme Kids and Child Care is full-time working couples. Referral
marketing is the key type of marketing strategy utilized. Maintaining and further enhancing its
reputation in the community is crucial to gaining additional market share of this target market.

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Our target market cuts across every industry and of course individuals and corporate
organizations. We are going to concentrate mainly on people who have got kids that need to be
in daycare centers.

Here is a list of our target market; the people and organizations which our business is designed
for:

• Parents in Banks and Financial Institutions.

• Parents who working in Government and private organizations.

• Households within Bishoftu town.

• Offices and places of business in Bishoftu town.

• Upwardly mobile folks/people.

• Kids of parents those are working in Industry and Busy celebrities.

Harme Kids and Child Care has a focus on meeting the local need for child care services within
Bishoftu town. We segment our market asper the potential and strategic market area, which is
kebele 01. Furthermore, we shall segment the market span in flexible time; full-time, part-time
and or drop in and other basis.

Full-Time

Harme Kids and Child Care 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 / Drop-Ins

Part-time 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.

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Figure 1, Market Analysis
2.4. Industry forecast

With inflation continuing to increase every year, people tend to be business minded in order to
generate income and having safe living condition financially. To do so they have to work out of
their home. If so, it has become necessary for more families to put their kids in Child care
centers. In turn, this increases the demand for child care facilities. Then we can foresee easily
this trend will grow in the near future.

3. Description of venture
Harme kids and Child Care is a service providing business enterprise. This business is going to
be established by for of partnership. It will be dedicated to fulfill the market demand that parents
would be very pleased to let their kids be in a day care at full time or part time. Thus, we shall do
all the best to make our day care as it has got all the facility and as it does the best hands that
customer require.

3.1. Objectives
To establish an international standard day care center where kids can be groomed and prepared
to be leaders of tomorrow.
Harme Child Care aims to offer safe and secure child care at all times. Close personal attention
to each child is essential to providing a quality experience for all children; therefore, adequate
personnel will be hired to ensure each child has the proper supervision will in our care.

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3.2. Our Vision Statement
Our vision is to build a most standard day care business, where parents can unreservedly leave
their kids in our hands, and be totally satisfied in the long run.
3.3. Our Mission Statement
Harme Kids and child care is committed to provide the safest, healthiest and quality service that
can put a milestone in way of generation building processes and satisfy the parents.
3.4 Five years Goals of this Business
1. A 30% market share in this year of plan, and pace up this for each fife years of this plan
2. An ability to construct a building to house special needs classes and expand facilities
3.5 Our Services
 Harme Kids and Child Care offers child care services for ages from 3-month infants to 6
years old. Hours of operation are from 6:00 A.M. to 6:00 P.M., Monday to Monday.
Furthermore, we afford the services like:
 Taking care of the infants, babies and kids
 Cleaning the infants and changing the diapers
 Have all kids well fed when hungry
 Keep them active with some extracurricular activities
3.5.1. Our Customers
Our main customer will be the residents of Bishotu town kebele 01. But we can host also those
may come to us from other kebeles. There are about 21,235 people lives in Bishoftu kebele 01.
Among these 4,803 people are family former and or house holder, 13,464 people are above age
of eighteen, 1,662 children are in between age of six and seventeen, 1,306 kids are under age of
six. Therefore, Harme Child Care can get 33.30% Harmechaild care market/customer share with
other competitors only in this kebele. In addition, Harme Child care will spend extra effort to
attract and train the best employees. This is especially important because it is the employees that
interact both by children and parents and will have the best chance 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.

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3.5.2. Our Services Strategy and Implementation Summary
Harme 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.
A. Pricing strategy; Making price discount by 5%-10% less than the larger commercial run
facilities.
B. Time strategy; our official working hour is from 6:00 am from the morning to 6:00 am
from the evening. But we shall give service over time up to 9:00 Pm from the night with
legal per time payment.
C. Customer handling strategy; here we will implement the following strategies:
 Ensure that our service giving area is safe, clean and attractive always.
 Make use of effective customer relationship management (CRM) software to effectively
manage our clientele base.
 We will reach out to clients from time to time via; calls, emails, text messages, and what
have you. The aim of this is to get words from clients on how they feel about our
services.
 First off, we will make sure that all first timers would be given a rebate.
 For every parent/ guardian who recommends someone, we will have a gift for them.
 Celebrating kids birthdays with parents.
 Giving outstanding gifts on kiddies’ special days.
 We will host family day and will do competitions and games for parents and wards, and
have a monetary gift attached to it.
 Visiting kids at Home periodically.
 Ensures that we carry parents along when making decisions that directly affect them.
We shall use World Wide Web to address the wide communities about our services.
3.6. Size of Business
Harme Kids and Child care is a Partnership entity which will base its' operations in Bishoftu
Town kebele 01. Originally it consists of a 200 sq. m. 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 house
will also contain toys, games, and books for the entertainment of the children.

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3.7. Office Equipment and Service Materials
A. Office equipment
Table, Chair, Computer, printer, file folder, File box, papers, etc
B. Services materials
Carpet, Mattresses, pillows, Toys, Cleaning materials, detergents, etc.
3.8 Background of the Founders
As mentioned earlier the founder of Harme Child Care are Mr. Demsu shemeles who had
diploma in electrical
Mr. Gutu Tesye in It diploma
Mr Dawitgizachew building installed on diploma
Ms Etaferahu asefa in IT diploma
Ms yordanose tujuba in accounting diploma
Ms Leyila nebi. In accounting diploma
Mr Jarso bira food and beverage manegment in diploma
Mr Nigusu Abii in accounting diploma
Ms FRIhIwET TESHOME In IT dipploma and Mr TEKLEGORGIS ESHETU In accounting
diploma
and we are studying Business Management in rift valley University in first degree program

4. Marketing Plan
We shall carry out rigorous marketing activities that would get people endeared to want to have
their kids come to our day care center.
We have strategically drawn up a marketing plan. And our top marketing goals include the
following:
To have a minimum of 100 babies in our day care within the first 6 months.
To have over 150 babies within the first 12 months of operations.
To make it a point of duty to generate a minimum revenue of Birr 720,000 within the first 12
months of operations.
We aim to achieve a sustainable growth at the rate of 25% annual sales growth.
Make sure that all kids that passes through our day care center has the best of foundations laid in
wait for the next educational hurdle.

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We intend to attract parents/ guardians from every industry that exists in Bishoftu. Some of the
industries include; the banking sector, entertainment industry, amongst many others.
It is not enough to only attract these clients; we will do all that is within our best to retain them.
We will realize this by doing the unimaginable to our clients, so that they would be left with no
other choice than to refer and recommend clients to us.
With respect to this, we would make sure we are all out to target those with kiddies.
4.1 Pricing
Harme kids and Child Care services will be priced at 5%-10% less than the larger commercial
run facilities. As a result, for full time users we shall cost them Birr 600.00, for drop-ins’ users
Birr 50.00 per hour and for night time users Birr 100.00 per hour.
4.2 Promotion
We shall use several techniques to promote our services like banner posting, announcements,
Facebook, Instagram, telegram etc.
Banners will be posted in different places and around potential areas. In addition to announcing
by speakers through the kebele we have selected and communicate potential parents at their
home.
4.3 Place
Harme Child Care will be located in Bishoftu town kebele 01, specific place Getishet back of
Oromia Bank. This location is a strategic area to get different kinds of customers and drop in.
4.4 Sales Forecast
As the following chart shows, the company plans to deliver sales of approximately Birr 720,000
in the first year, 900,000 in the second year, and Birr 1,116,000 in the third year and 2,800,000 in
the fourth and 4,160,0000 birr in the fifth year plan implementation.

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 Sales forecast
4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
year 1 year 2 year 3 year 4 year 5

Sales forecast

Fig.2. Sales forecast

4.5 Controlling mechanism and Keys to Success
 Maintaining a reputable and untarnished reputation in the community.
 Quality care.
 Competitive pricing.
 Flexible hours.

5. Organizational Plan
5.1. Form of Ownership
This business will start out as a Partnership, owned by 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.

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5.2. Organizational structure

Manager

health-extenssion
employees (child
carer)

Cleaner Security men

Fig.3 Organizational structure

5.3 Management Team and background
The opening management team of Harme Child Care will consist of the founder/owner,
competent health extension professionals, cleaner and securities.
As a background of the team, two employees will recruit carefully who has a Health-extension
background in order to care the kids professionally. In addition, one cleaner who has an interest
to work cleaning career and two security men be part of our team. The security men will be
experienced.
Out of these, we shall work with the parents, Government Education offices, Hospital
professionals, Police offices and kebele administrations collaterally as a family.
Then through a combination of well-priced services, outstanding customer service, and a well-
seasoned management team, Harme Child care will quickly gain market share and a reputation as
a premier child care provider. As the business grows, gradual investments in the instructional
staff will be made over the next 5 years.

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5.4 Roles and responsibility of members of the organization
Everyone involved in an early childhood organisation has a role to play in ensuring the service's
operations are safe and without risk to health. This includes the employer, employees, neighbor
communities and parents.
A. Role and Responsibility of Employer
The employer actually an owner and manager. Therefore, the key responsibilities are:
 Following and completing the legality issues
 Recruiting and selecting the desired manpower
 Provide and maintain for employees a workplace that is safe and without risk to health.
 Having good relationship with communities and all government offices and personnels
 Ensure other persons, such as families, visitors and contractors, are not exposed to risks
to their health and safety arising from the organization’s activities.
 Obeying the government policies, procedures and mandates.
 Motivating the employees and customers also
B. Child Care Employees
 take care of their own safety and the safety of others that may be affected by their actions
 Observe and monitor children's play activities.
 Keep records on individual children, including daily observations and information about
activities, meals served, and medications administered.
 Instruct children in health and personal habits such as eating, resting, and toilet habits.
 Read to children, and teach them simple painting, drawing, handicrafts, and songs.
 Organize and participate in recreational activities, such as games.
 Organize and store toys and materials to ensure order in activity areas.
 Operate in-house daycare centers within businesses.
 Sterilize bottles, dress children and change diapers.
 Provide counseling or therapy to mentally disturbed, delinquent, or handicapped children.
 Accompany children to and from school, on outings, and to medical appointments.
 Support children's emotional and social development, encouraging understanding of others
and positive self-concepts.
 Discipline children and recommend or initiate other measures to control behavior, such as
caring for own clothing and picking up toys and books.

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 Identify signs of emotional or developmental problems in children and bring them to parents'
or guardians' attention.
C. Cleaner
 Keep clean and attractive the rooms and compound
 Sanitize toys and play equipment.
 Place or hoist children into baths or pools.
 Perform housekeeping duties such as laundry of carpets , bedlinens and cleaning dishwashing
D. Security Men
 Respect and implement the rules and regulations of the organization.
 Being safeguard for the employees, children and overall the properties of an organization.
 Checking and placing the safety equipment, such as fire extinguishers.
 Approaching the kids and parents as a family.
 Hosting the kids gently and smiley.

6 Financial plan
This business will need the start-up expenses which estimated to Birr 150,000 (including legal
costs, advertising, and others.
6.1. Start-up Materials and equipment expenses
List of equipment Unit of Total no. Unit per cost/birr Total
measureme of material cost/birr
nt needed

Carpet M2 20 75 1500

Mattresses pcs 80 300 24000

Bedlinen/sheet m 96 20 1920

Toys pcs 70 45 3150

Pillows pcs 150 65 9750

Cleaning detergents lit 20 20 400

Cleaning materials - 4 25 100

Fire extinguisher pcs 1 1750 1750

Computer dell pcs 1 8500 8500

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 Printer pcs 1 5500 5500

File Box Pcs 1 1000 1000

Folders Pcs 4 20 80

Papers pack 1 175 175

pen pcs 8 8 64

Markers pcs 20 12 240

Table pcs 1 520 520

Guest chair pcs 8 750 6000

Sewed White pcs 3 500 1500

Coats/Gown

Uniform for security pcs 2 1000 2000

men

Miscellaneous 2511

Total Cost 70,660.00

Table 1. Start-up materials and equipment expenses

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 Other Start-up Requirements

Start-up Expenses Amount in

Birr
Legal 20,000.00

Promotion /Brochures 1,000.00

Transport, loading and unloading 1,000.00

First Aid Supplies 400.00

Rent expense 20,000

Others 1,000.00

Total start-up expenses=70'660'+ 43,400=114'060 =43,400.00

Start-up Assets Amount/Birr

Cash Required 114,060.00

Other Current Assets 0

Long-term Assets 0

TOTAL ASSETS 114,060'00

Total Requirements 114,060.00

Table.2 Start-up requirements

6.2 Pro forma Income Statement for first year

Harme Child Care

Income statement
For the Year Ended Dec.31,2023 14
Revenue:
Service revenue……………………………………………..Br.720,000
Total
7. Risk Analysis

8. Exit Strategy
Since this business is a form of partnership it will be changed to other business activities easily.
Among those; Child academy, Business advisory center, cafeteria, internet café, etc.

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Appendix
Statement of Confidentiality of Report
The owners of Harme Child Care spend money, time, resources, experience, skills and other different things on
preparing this business plan. Therefore, the owners would like to announce to all that this business plan which is
the result of all partners’ effort for this reason that should not be transferred or copied to another individual or
company. If anyone fails to do these owners have responsibility to the individual or the company to bring them in
front of the law. “All Rights are reserved”.

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