Business Plan for a Daycare Center Comment by Sabina:

I work for one of the fortune 500 companies and most of the employees who work in my organization is very happy with their job. I work in a 10 story building where more than 50% of the offices belong to my organization. There are a few other companies that are located in the same building. I have heard many employees in my company and in the building complaining about having to drop their children off to daycare early before work and then pick them up late after work. They have to pay additional fees if their child is not picked up on time, because they are stuck in traffic. I have been working on a business plan for opening a daycare within the building where I work. In this paper I will discuss the need for this daycare; I will discuss some elements in the business plan, and complete a feasibility analysis for this Daycare center called Little Sunshine's.

Business Plan

The rental monthly for the space is $2,000.00, the average incidental cost for a daycare this size is about $500.00 - $700.00 monthly. The daycare will accommodate children from six weeks old to five years old from 8am to 6pm. For parents utilizing the daycare five days per week, ten hours per day the fee will be $1,000.00 for children under 2 years and $800.00 for children above 2 years. The state requires children under two to have 4 children to 1 teacher ratio; therefore we will start off by enrolling up to 8 students under the age of 2. Children above the age of 2 years old are a bigger ratio which is 6 children to 1 teacher. The daycare will enroll 12 children for each age range, a total of 44 children, with four rooms to separate the children by age. The children six weeks old to 2 years old will be in the same room. Little Sunshine will give first priority to the employees within the building; however it will be opened to the general public. There are two other buildings nearby that could...

I need to have $6,000.00 for security deposit, first and last month's rent. I will need money for business start up cost, insurance, money to pay employees, workers compensation fees, and supplies for the daycare. Once the lease is signed the building will design the office space, at their cost, however some money will have to be spent by Little Sunshine for decorations. I will need to take out a bank loan for the majority of this investment, which is a major risk. Little Sunshine will have to set up the play area with a swing and slide, and purchase all toys and supplies.
I have over six years of experience working in daycares, which has equipped me with the working knowledge of the industry. I have also re-entered school again to get additional training on business operation and business management. There are many additional steps involved in opening this business, becoming certified in several areas of childcare. Hiring qualified employees and getting them certified and trained in childcare. Each employee of Little Sunshine will need to become Cardiopulmonary Resuscitation (CPR). Agreements will have to be made with local temporary agencies, where we would be able to get qualified temporary staff if necessary.

SWOT Analysis

One of the biggest strengths of Little Sunshine is the location. According to Gabe (2007) areas with economic stability are great location for new business. There is a need for a daycare in the area. The location in within a professional office park with business offices. Employees within this building and office park would be able to bring their children to a daycare that is close to their offices. The daycare will also allow parents to come and pick up their children for lunch, or to eat lunch with their children in the lunch room. The hours of the daycare is…