How to Write a Daycare Business Plan [Sample Template]

Do you want to start a daycare (childcare)? and need to write a business plan? If YES, here is a sample
daycare business plan template & feasibility report.

Okay, so we have considered all the requirements for starting a daycare center. We also took it further
by analyzing and drafting a sample daycare marketing plan template backed up by actionable guerrilla
marketing ideas for child care centers.

Table of Content [show]

Why Start a Daycare Business?

It is the duty of every parent- especially the mothers to see to it that their kids are properly taken good
care of. However, there are times when circumstances just makes this totally challenging, as there may
not be the luxury of time available to them to sit closely with their children and monitor them.

That is one of the reasons why parents would always want to take their kids to a daycare center. The
question therefore is: how reliable are day care centers in seeing that the children are totally given the
best of care and attention?

Before the daycare businesses came into existence, parents who could afford the luxury of hiring a
home nanny whom they thought were vast and experienced in the care of children. However, as things
changed and the crime rates in some areas went haywire-where some folks gained entrance into the
houses of people for the sole aim of robbing them, the daycare trend took over.

And ever since the emergence of this trade, we have come to see more and more people who have a
penchant for kids, dive into the industry just to tap into the profits that the day care business offers.
What Does It Take to Start a Daycare Center Successfully?

More often than not, in some parts of the world we find that some folks begin a day care business after
they have been successful with running a school. Conversely, that is not to say that one couldn’t possibly
start only a day care business. As a matter of fact, starting first with a day care center, helps to start on a
right footing so that you are able to determine whether you will be able to have a school as an
addendum business in the near future.

So, if you have scaled the hurdle of being in love with children, then starting your own day care business
might be a smart business choice. Having this wish or aspiration as it were on the front burner of your
mind, isn’t all that is required. As a matter of fact there are legal necessities that you have got to tidy. As
well as draw up a comprehensive business plan that will guide you as you start out and trudge ahead in
business.

Writing a business plan is being made easy in this read, compared to what you may have heard about
business plans. You do not need to hire the services of an expert anymore, as you can use an already
existing model to craft yours. Here is a sample Day Care business plan;

A Sample Daycare Center Business Plan Template

1. Industry Overview

Day care business is one of the easy businesses that just about anyone who has a flare for kids could
readily start. There is no doubt that as the zeal to make more money heightens with parents, then the
need for newer and more seasoned day care centers to arise becomes highly important. That is why
investors are beginning to leverage on the high demand for day care services, to establish even better
ones.

As such, in all of the states of America, there is hardly one neighborhood that doesn’t have a day care
centre. The business is indeed a lucrative one and those who are into the trade of establishing them are
smiling to the banks every day. However, that is not to water down the fact that loads of work has to be
put in place in order to satisfy parents who use these daycare centers.

Whether you are looking to start a small or big one, truth is that there would always be the need to have
kids put in these places. This is why some folks who do not have the wherewithal in terms of finance
may choose to start from their homes, whilst some may want to start from very little spaces they get.
Over and above one bright ray of light as it concerns the day care business is that there is always room
for expansion, as one learns on the job and then improves the services that one renders.

Setting up a day care business means that one would be dealings with little babies, and as such, care
have got to be taken in order to hire not just mere employees, but to hire those who are way too vast in
the trade and are capable to help the day care business to a great level. There will always be the need to
garner plenty of knowledge that would be useful in giving the children the very best of experience.

The returns on investment that one attracts here is so huge that one have just got to keep at doing
those things that would continue to guarantee repeat customers as well as give the kids whom are being
cared for a growth experience that they wouldn’t forget in a hurry.

2. Executive Summary

Tiny Thoughts® is a foremost day care center in Ohio, America. It has the best of aims to prepare its
pupils to come out tops in all they do- given that they would be the leaders of tomorrow. We propose to
achieve this and more by merging an all exclusive curriculum custom-made explicitly for children.

Our type of curriculum is enriched with extra super child care services. This is nothing like what our
competitors have to offer because we offer forward-thinking technology plans, after-school training, and
activities that help the kids grow better. Activities such as; arts, dance, crafts, gymnastics, theatre,
sports, amongst others.

Tiny Thoughts is a privately held establishment run by its owner, Mrs. Mary McGregor. Mrs. Mc Gregor
has 10years of Educational training experience. As a matter of fact she is a master’s degree holder of
child psychology. So that when it comes to child management and psychology, she is always at the top
of her game.
Her advanced degree in child psychology and interest in kids is the driving force behind the
establishment of Tiny Thoughts. She will be supported in daily operations by another educationist and
psychologist, amongst other employees.

With the inflation bane that continues to affect the American economy, there will always be the need
for parents to work more than one job per time for additional income. It is for this reason that there will
always be a need for excellent child care services.

With the least population of Ohio which is at 11.59 million people, there will always be the need to have
capable day cares to cater for them. That is why we have decided to position our establishment so as to
meet the teeming needs of parents who want the very best for their children.

At Tiny Thoughts, we leave no stone unturned to see that we put in place high- quality child care
services, thorough bred educated instructors, as well as personal skills that will allow us compete well in
our market . We shall also offer competitive price as part of one of our success factors so that we can
attract all and sundry to our prestigious day care center.

Furthermore, we know the importance of having an excellent rapport with parents, and the community
we serve, which is why we train and even retrain our workforce so that they bring the best of skills and
attitude to the table at all times.

With the aforementioned points in place, we therefore do not intend to look for long before we attract
customers as we go all-out to build a loyal customer base by offering the kids at the day care a very
hospitable- yet educating experience in a comfortable and beneficial environment.

3. Our Products and Services

At Tiny Thoughts®, we are first all about making the day care center a very conducive one. We are aware
of the fact that some parents might hold back when it comes to the type of vicinity their kids will be put
in; which is why we have taken time to research and learn the various ways to build a world class
establishment. This we have done in the state of Ohio. Our services include the following;

Taking care of the infants, toddlers and preschoolers

Cleaning the infants and toddlers up whilst they are dirty

Have all kids well fed when hungry

Keep them active with some extracurricular activities

4. Our Mission and 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.

To establish an international standard day care center where kids can be groomed and prepared to be
leaders of tomorrow.

Our Business Structure

Big establishments know that one of the greatest selling points is to have the best hands. As such; we
plan to only hire the most competent and seasoned employees. This is particularly important since it is
uttermost on our minds to run our day care center with an intercontinental approach. This means that
we are looking to have all races enroll in our establishment.

We came up with outright buying our own building, instead of having to make do with a leased one. This
is why we have resolved to have quite a number of employees to be on our pay roll because of the
ample room we have. Therefore, below is the type of structure we look to build our business on;

Chief Executive Officer (Owner)

A Director

Assistant Director

Administrative Assistant

Accountants / Cashiers

Infant room Supervisor

Toddler Room Supervisor

Preschool room supervisor

A Cook
Cleaner

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

Responsible for providing direction for the business

Creating, communicating, and implementing the organization’s vision, mission, and overall direction –
i.e. leading the development and implementation of the overall organization’s strategy.

Responsible for fixing prices and signing business deals.

Responsible for recruitment

Responsible for payment of salaries

Responsible for signing checks and documents on behalf of the company

Evaluates the success of the organization

Director:

Responsible for managing the daily activities in the day care center.

Ensures that all orders and guidelines given by the CEO are adequately carried out.

Interfaces with other employees

Reports to the Chief Executive Officer

Attends to Parent’s complaints and enquiries

Prepares budget and reports for the organization

Responsible for Training and Development in the day care center

Any other duty as assigned by the CEO

Assistant Director:

Responsible for assisting the director to carry out all that have been assigned by the CEO.

Ensures that all employees carry out the agenda of the day care center to the latter.
Responsible for quality control

Any other duty as assigned by the CEO and director

Accountant / Cashier:

Receives payments on behalf of Tiny Thoughts®

Issues receipt to customers

Prepare financial report at the end of every working Month

Handles all financial transaction on behalf of Tiny Thoughts

Interfaces with our bankers

Responsible for payment of tax, levies and utility bills

Any other duty as assigned by the CEO / Director

Administrative Assistant

Assists the director in seeing to it that all the kids are thought are line

Ensures that all documents are safely kept

Handles customers enquiries and keeps all records of kids and employees well

Any other duty as assigned by the director

Infant Room Supervisor

Responsible for supervising the nannies that take care of the infants.

Makes sure that everything is in place

Reports to the Director

Relates with the nannies and cleaners

Carries out any other task as assigned by the superiors

Toddler Room Supervisor

Responsible for supervising the nannies that take care of the toddlers.

Makes sure that everything is in place

Reports to the Director

Relates with the nannies and cleaners

Carries out any other task as assigned by the superiors

Preschool Room Supervisor

Responsible for supervising the nannies that take care of the toddlers.

Makes sure that everything is in place

Reports to the Director

Relates with the nannies and cleaners

Carries out any other task as assigned by the superiors

Cook

Responsible for all the kitchen activities at the center

Attends to the foods of all kids

Takes orders that will advance the establishment from the Director, CEO and others.

Cleaners:

Responsible for cleaning the day care facility at all times

Washes the mugs, spoons and other utensils

Ensures that toiletries and supplies don’t run out of stock

Cleans both the interior and exterior of the daycare

Any other duty as assigned by the day care director.

6. SWOT Analysis

Our purpose of starting a day care center is to compete favorably with other schools, and surpass them.
We have also decided to have a test run on the business for a period of 5 years. This is to know how we
are able to fare during this time, as well as to determine if we are to devote more resources, additional
money, for the expansion of the business.

We shall start with just one center for now and then see how we are able to succeed despite the myriad
of competition. In arriving at all these, we deemed it fit to employ the services of an expert who has
helped us with conducting a SWOT analysis.

It was expedient that we did this, so as to ensure that we have what it takes to run a day care school and
perhaps even build more branches. Here is a summary of the result from the SWOT Analysis that was
conducted on behalf of Tiny Thoughts;

Strength:

Our area of strength to a very large extent lies in the fact that the owner of our day center is well versed
in child psychology. This is really a positive one for us, because we believe that we shall be able to really
handle the kids that are put in our care, unlike some folks who have no background knowledge in
education and psychology.

Weakness:

The perceived weakness for our business could be that we are starting out as newbies and it really isn’t
easy to convince people to come and enroll their kids at the day care. This is why we have got to really
work hard at our advertising strategies, as well as solidify how to seal deal with our potential clients.

Opportunities:

The fact that we intend to lower the fees involved in enrolling a kid at our daycare, seems to be one of
the ways at which we will attract all and sundry. We are certain without a doubt that with the quality of
our employees and services, we shall attract clients that would be highly satisfied with us.

Threat:
Some of the threat our business may likely faced with might be a scenario where a kid has an illness and
yet comes to the center. There may be likelihood that such an epidemic might spread to other kids. As
such; this might not be nice because that might make some guardians want to withdraw their kids to a
safer place.

7. MARKET ANALYSIS

Market Trends

In the united states of America, you will quite agree that there are lots of guardians who need to work
almost round the clock to eke out a living for them and their families. As such and as stated earlier, the
need for someone to care for the kids whilst working in non negotiable.

That is why there will always be the need to have kids at day care centers. Furthermore, there is no
indication that the day care trade would plummet anytime soon based on the statistics of parents who
work that is found by experts.

There is always a boom in this business all year round, as the weather or state of the economy has
nothing to do with it. That is why the services being rendered by us have to be top notch at all times. We
do not want to be found wanting in any area, that is why we are sure to invest a lot in training our
employees at all times.

Our positioning, as is always the case of determining the amount of customers that patronize a business
is of importance to us, which is why we have chosen to start from Ohio.

Despite the fact that there loads of day care businesses who have done so well for themselves in the
past, we plan to not leave any stone unturned as we continue to work at better ways to make our
services known to people. Part of the marketing and sales strategies to be adopted includes;

Commencing operation by first having a grand opening. This means that we will have a big party where
we can invite those who reside in the neighborhood we propose to start out from, as well as those from
other neighborhoods.

Ensure that we have all our professional employees present at the party and if possible show them off.
Make use of attractive hand bills to create awareness and also to give direction to potential clients

Position our signage / flexi banners at strategic places around the vicinity.

Advertise our day care center on business directories, magazines and yellow pages.

8. Our Target Market

When it comes to the day care business, of course our target market is the guardians and parents. That
is why we have got to primarily focus on these types of people. The people we intend offering our
services to are;

Corporate Executives

Business People

Sports Men and Women

Government Officials

Families

Low class, middle class and high class people

Our competitive advantage

Going by the state where we have chosen to start from, we found that there are no day care centers in
the vicinity we are, which is why if we are able to do our due diligence, and we are able to attract a
crowd of customers there, then there is the possibility of hitting success in the first few years of
operation.

We plan to run a standard day care business which is why we hired one of the leading business
consultants to work with us in setting up our business. The business consultant we have hired has over
10 years of experience in business management and has successfully opened several day care
businesses in major cities across the United States of America.

So far, there are clear indications that with what he has brought up, we shall no doubt do well and even
surpass other businesses in the state. We believe that for us to have hired one of the experts in town,
without a shadow of doubt, we will do exceptionally well when eventually we kick start.
9. SALES AND MARKETING STRATEGY

Sources of Income

Our sources of income for Tiny Thoughts is limited to the services of taking proper care of the children
that have been placed in our care. However, we are not relenting when it comes to opening different
branches.

10. Sales Forecast

It is important to state that our sale forecast is based on the data gathered during our feasibility studies
and also some of the assumptions readily available on the field. Below is the sales projection based on
the location (Ohio), which already has an avalanche of day care schools.

200 pupils per session

N.B: Our annual projected sales for TinyThoughts® is put at about $4,800-$16,500, or $400 -$1,375
monthly per child. Over and above, as Tiny Thoughts gets established, our net profitability will likely
witness a boom as that indeed is what we project.

Marketing Strategy and Sales Strategy

Tiny Thoughts will throw a grand opening party when it does start. One of the very unique things that
we plan to do on that day is to; unveil some of the professionals and junior employees that we have.
That is those who will help us get things started on the right footing. Why is this a big one for us? It is a
big one for us because parents will have an opportunity to interact with this people, as well as ask all the
questions they want.

The location of our day care center is strategically positioned to attract ample customers with little or no
effort from our own part, which is why we do not make provisions for marketing and sales executives in
our company’s structure. In view of that, we are going to adopt the following strategies to ensure that
we do not only attract customers but generate a high number of people;

Position our greeters to welcome parents and the kids as they arrive

Create a loyalty plan that will enable us reward our regular customers
Position our flexi banners at strategic positions all around the vicinity

Advertise our Tiny Thoughts Business on yellow pages magazines

Partner with child’/ education agencies to refer parents who are looking for a good day care center

11. Publicity and Advertising Strategy

When it comes to publicity and advertising, we have a low budget for it simply because our business is
located in a place that can easily attract the numbers of customers we would need with little or no stress
on our own part.

But for the fact that we hope to some day in the near future have more branches, we have decided to
create a budget for publicity and advertisement for the major aim of introducing our brand in the
market place. Everything that we will do in this regard is geared towards communicating our brand.
Here are the platforms we intend leveraging on to promote and advertise our business;

Place adverts on both print (travel magazines) and electronic media platforms

Sponsor relevant educational community programs

Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote
our brand

Install our Bill Boards on strategic locations

Distribute our fliers and handbills in target areas where guardians can be found.

Position our Flexi Banners at strategic positions around the airport

12. Our Pricing Strategy

When it comes to fixing prices for our services, we will ensure that we set pricing in line with what is
available in the day care trade. We are very aware that we have got to lower our price so that we will be
able to attract customers like never before as we seek to gain recognition as newbies. When this is
achieved, then bottom line is that our customers will derive real satisfaction when they bring their kids
to us.

Payment Options
Our payment policy is all inclusive because we are quite aware that different people prefer different
payment options as it suits them. Here are the payment options that will be available in every of our
outlets;

Payment by cash

Payment via Point of Sale (POS) Machine

Payment via online bank transfer (online payment portal)

Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our plans without any
itches.

13. Startup Expenditure (Budget)

This is the key area where we will spend our start – up capital;

The Total Fee for Registering the Business in Ohio: $750.

Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,300.

Marketing promotion expenses for the grand opening of Coffee4All® in the amount of $3,500 and as
well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.

Cost for hiring Consultant – $2,500.

Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium
– $2,400.

Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $52,800.

Cost for building remodeling – $25,000.

Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).

Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000

The cost for Start-up inventory – $16,027

The cost for office supplies (one month) – $287

Daycare hardware (bins, utensil rack, shelves, food case) – $3,720

Cost for client reception area equipment (plates, glasses, flatware) – $3,000

Cost for equipment (cash register, security, ventilation, signage) – $13,750

Office equipment and furniture – $3,600

The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and
chairs et al): $4,000.

The cost of Launching a Website: $600

The cost for our opening party: $5,000

Miscellaneous: $2,500

We would need an estimate of about $100,000 to successfully set up our day care business. The amount
includes the salary of all employees and the CEO (Owner) for 3 months.

Generating Funding / Startup Capital for our Daycare Business

Tiny Thoughts is a private business that is solely owned by Mrs. Mary McGregor and she does not have
the intention of welcoming any external partners except immediate family members which is why she
has decided to restrict the sourcing of her start – up capital to 3 major sources. These are the areas we
intend generating our start – up capital;

Generate part of the start – up capital from personal savings

Source for soft loans from family members and friends

Apply for loan from my Bank

N.B: We have been able to generate about $60,000 (Personal savings $40,000 and soft loan from family
members $20,000) and we are at the final stage of obtaining a loan facility of $80,000 from our bank. All
the papers and document has been signed and submitted, the loan has been approved and any moment
from now our account will be credited and we will be able to execute all the things that needs to be
executed.

14. Sustainability and Expansion Strategy

Our plans of establishing Tiny Thoughts is basically to test – run the Day care trade. We have decided to
start our first outlet in a competitive location like Ohio. Although we don’t have the intention of running
chains of day care centers now, but we have plans to set up branches in years to come. It is pertinent to
state that we shall not allow our standard operating process to drop so that we do not lose our loyal
customers.

Check List / Milestone

Business Name Availability Check: Completed

Business Registration: Completed

Opening of Corporate Bank Accounts: Completed

Securing Point of Sales (POS) Machines: Completed

Obtaining of health permit : Completed

Opening Mobile Money Accounts: Completed

Opening Online Payment Platforms: Completed

Application and Obtaining Tax Payer’s ID: In Progress

Application for business license and permit: Completed

Purchase of Insurance for the Business: Completed

Purchasing a building and remodeling it: In Progress

Conducting Feasibility Studies: Completed

Generating capital from family members: Completed

Applications for Loan from the bank: In Progress

writing of business plan: Completed

Drafting of Employee’s Handbook: Completed

Drafting of Contract Documents and other relevant Legal Documents: In Progress

Design of The Company’s Logo: Completed

Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress

Recruitment of employees: In Progress

Purchase of the Needed furniture, beddings, toys, electronic appliances, office appliances and other
equipment: In progress

Creating Official Website for the day care center: In Progress

Creating Awareness for the business both online and around the neighborhood of location: In Progress

Health and Safety and Fire Safety Arrangement (License): Secured

Opening party / launching party planning: In Progress