Business Plan for a Daycare Facility

Business Plan for a Daycare Facility

Executive Summary

In the present age where gender equity is highly advocated, the duty of caring for kids originally taken by housewives is falling into the hands of the house helps. With increasing living standard, demand for higher earnings has further fuelled this problem. This situation has precipitated the daycare business plan.

Other daycare facilities also exist, but they have not mastered the market as we project it. The facility will target middle-class people with children aged two and above as they are the majority in the society. Our current financial plan is targeting to raise $164,850 as grant fund.


Our objective is to provide services that are acceptable to the society and profitable to the facility.


Our mission is to mold and raise well-behaved children who will be a great input to the society.

Company Summary

The daycare facility will be a 100% sole proprietorship. It will admit children of 2 years and above targeting the middle class majorly.

Start-Up Summary

Fund expenditure will be distributed as follows

activityAmount ($)
Facility and equipment64,000
Hiring staff50,000

Any additional fund will be used as startup capital to establish the facility.


The facility will offer full childcare and drop-in care services.

Market Analysis Summary

The city offers a large market due to the increasing populations is drawn in by the developments in the city. Most of the parents are engaged, and their children will be our main market. With the few daycare facilities in the town, the child day care services we expect to make a great entry. We expect a steady rise of clients as our programs are marketed as depicted in the graph below.

YearPercentage Increase
Text Box: Figure 1 expected constant increase through the first five years.

SWOT Analysis


The strength of our facility will be in the creation of healthy facility-society relations, provision of better benefits for the employees, strict hiring protocols and the healthy location for the facility.


The plan faces the challenge of insufficient finances. This is hampering our ability to expand our services so that we can handle as many clients as possible.


The company has better opportunities regarding the need to diversify its services in the market. Since some parents are not taking their children to the existing daycares, our research will help us in revealing the missing needs. From this, we will tailor our services to bridge the gap.


The possibility of other daycares entering the market in the future is a threat to our daycare facility.

Marketing Strategy

We intend to market our facility through platforms such as radio advertisements, visible road signs, and social media.

Sales Strategy

The facility will establish comprehensive communication channels with the community. Visiting parents will be taken through tours of the facility. The parents will be given some pointers as to why our facility is the ideal destination. Payments of fees will be on a monthly basis to raise capital for supporting the facility as it picks up. Cash or check payments will be accepted as the only payment means (Musial, 2007).

Sales Forecast

In the light of the forecasted steady increase in the number of clients, we expect to record a steady rise in income as we sell our services to the community. These increasing sales of services will also be stimulated by the low competition expected from our competitors.


Specific deadlines will be met to ensure that the daycare is operational in time from the day of commencing preparations. This will include activities like

Screening and hiring of employees4
Securing of funds1
Opening date1

From this chart, furnishing the facility will take a long time because children’s playing should be clean as safe as possible.

Profit and Loses

The facility expects to make rising profits that would increase in the first five years. However, losses cannot be ignored in case of failed payments, catastrophes, and poor management. Moreover, the entry of new players in this niche may drive us out of business and force us to use more money if we have to retain our position as market leaders (Blackwell, 2011).

Management Summary

A board of governors headed and chaired by a director will manage the facility. Continuous training of the staff will involve the use instructors to help the staff keep abreast with dynamics our daycare business. The board of governors will undertake legal and financial decisions (Evans, 2015). The board of governors will be composed of five parents, five teachers, five staff and the director

Personnel Payment Plan (Basic Salary)

The staff will be compensated on a monthly basis based on their job groups. The board of governors will be given an allowance for every meeting they sit as a reimbursement for their effort.

Impacts to the Community

The daycare facility is expected to give back to the society regarding creating job opportunities, giving parents ample time to work, and bringing up reliable and well-behaved children.


Blackwell, E. (2011). How to prepare a business plan: create your strategy; forecast your finances; produce that persuasive plan. Kogan Page Publishers

Evans, V. (2015). The FT Essential Guide to Writing a Business Plan: How to win backing to start up or grow your business. Pearson UK

Musial, T. (2007). How to open and operate a financially successful child care service. New York, NY: Atlantic Publishing Company

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