You've finalized your vision of your child care program, selected locations for consideration, done the necessary research of the child care market in your community, and developed a general marketing plan for recruitment of families. Now it is time for you to take all of this information and put it into a single document − the document that will be the heart and soul of your child care center: THE BUSINESS PLAN.

This business plan will enable you to raise the capital, maintain the focus on the child care market in your community, and create a document that your program can follow. In order to provide a complete picture of your program, your operations, and the income you will generate, your plan must demonstrate that you have the expertise and knowledge to operate a successful child care center. Your plan must also illustrate how financial investments will be used, as well as the stability of your child care center as a business. Marketing and services provided to families should be clearly outlined. The plan you create should be concise and accurate. It needs to be written with clarity, and have accurate data and statistics to support your rationale and operational plan. You will need to consider your current finances, and show initial start-up costs, plus first-to-third-year projections of expenses and income. You will need two consultants to help you create your business plan: an accountant for the financial component and an early childhood/child care specialist for the program component.

You should use the following outline as a guide in the concept of your business plan. It goes through each section of your plan step-by-step, detailing what information should be included. Of course, you will provide the special and unique aspects of your plan, based on your individual market or community.

Your cover page should have...

YOUR CHILD CARE CENTER NAME

Name

Address and Telephone Number

(Name of institution or investor you are submitting this proposal to for financial consideration)

Your table of contents page should have...

TABLE OF CONTENTS

I. Executive Summary

II. Child Care Market Analysis

III. Program Summary

IV. Strategic Planning

        A. Operations

        B. Marketing and Recruitment

V. Management and Staffing

VI. Financial Operations and Projections

VII. Key Success Factors

VIII. Appendix

• Your outdoor play area should be considered your outdoor classroom. Children will spend hours playing outdoors developing physical creativity, problem-solving, and social skills.
• The first consideration for the outdoor play area is SAFETY. Conduct monthly safety inspections of all outdoor play areas.
• A well-planned outdoor area is not only a stimulating  and fun place to play; it is also an added value to your program.
• The location of your playground should be approved first by zoning. Consider the most visible location for the playground so that it is inviting to families.
• Regulations require specified square footage per child outdoors. Most states require separate play areas for different age groups.
• Outdoor areas must be contained within a fence; there may be specific fencing requirements in your community.

Quality outdoor play areas have separate areas for a variety of activities:

• Large, open, grassy areas for running and active games.
• Areas for sand and water play.
• Age-appropriate climbing structures.
• Bike paths separate from major foot traffic patterns; play structures for role play.
• Adequate storage space for outdoor play equipment.

Design features for safety and health of children should include:

• Proper drainage of your outdoor areas.
• Sturdy, child-safe fencing that meets construction requirements.
• Cushioned surfaces under climbing structures, slides, and swings to break falls. It is recommended that you take on the one-time investment and expense for a high-quality cushioning surface.
• Children need access to drinking water when outside.
• An outdoor bathroom is a great aid to the supervision of children.
• Consider short-term and long-term maintenance in your outdoor play design; include the cost of repairs and replacements in your budget.

PLAYGROUNDS - CHOOSING SAFE SURFACING

The surface under and around playground equipment can be a major factor in determining the injury-causing potential of a fall. It is obvious that a fall onto a shock-absorbing surface is less likely to cause a serious injury than a fall onto a hard surface. Because head impact injuries from a fall have the potential for life-threatening, the more shock-absorbing a surface can be, the more likelihood that the severity of the injury will be reduced. However, it should be recognized that injuries due to falls cannot be prevented no matter what playground surfacing material is used. (The paragraph above is taken from The Handbook for Public Playground Safety, distributed by the Consumer Product Safety Commission.)

Surfacing Options:

• Playground Quality Wood Chip
• Cast-In Place/Pad Systems
• Tile Systems
• Pea Gravel
• Sand

DO NOT INSTALL ANY PLAYGROUND EQUIPMENT OVER PAVED SURFACES SUCH AS CONCRETE OR ASPHALT.

The complete area, including the space under and around all playground equipment, must be covered with an impact-absorbing material. For guidelines and recommendations, consult the 1997 Handbook for Public Playground Safety published by:

The U.S. Consumer Product Safety Commission

Office of Information and Public Affairs

Washington, D.C. 20207

or for your convenience, call use for a copy of the current CPSC guidelines through our toll free number: 1-800-334-2014 or Email: Playground@Kaplanco.com

MATERIALS AND EQUIPMENT

• Selection of materials should be based on developmental practices of supporting the social, emotional, physical, and cognitive growth of children.
• Select and purchase similar furniture and materials for each classroom. This gives a refined look at your center.
• Purchase the following for each child: cot, chair, table space, and cubbie for personal belongings.
• Selection of furniture and equipment should be based on how often each will be used on a daily basis.
• Select materials and equipment that are high quality; you will save on replacement and repair costs.
• Materials and equipment must be durable and safe.
• Look for furniture that is well-built and has easy-to-clean surfaces.
• Purchase furniture from an established school supply company.
• Materials should be open-ended and allow for a wide range of manipulative and creative uses by children.
• Cultural representation of the program's enrollment should be integrated throughout the classroom with appropriate materials and props.
• Creative and expressive materials that stimulate thinking, problem solving, and emergent literacy should be selected for all play areas in the classroom.

LEARNING CENTERS

• Each classroom should have learning centers. These centers provide children with appropriate, stimulating learning environments. Materials used in all learning centers should include items that reflect language, culture, and diversity in the broader world.

Art:

• Children will create a wide range of artwork: drawing, painting, coloring, clay sculptures, collages, and structures.
• The art area requires a table and chairs for a group of children to work comfortably.
• Storage cabinets are needed for containers of materials and tools children will use. SUGGESTED MATERIALS:  paper in a variety of sizes and textures for drawing and coloring, construction paper, painting paper, collage materials, and clays. SUGGESTED TOOLS: crayons, markers, colored pencils, paints, brushes, cups, aprons, clay tools, trays, storage containers, and work trays.
• The floor covering should make it easy to clean up messes.
• The area should have a bulletin board to display children's work at their eye level.
• The area should have easels for painting and a place for drying artwork.
• The area should have different clays and assorted surfaces.
• Children should have easy-toclean work surfaces and height-appropriate chairs.
• The area should feature space for displaying finished work or work in progress.

Blocks:

• A large, carpeted area is ideal for construction  and building activities. Carpet keeps the noise level down.
• Each classroom should have several complete sets of blocks.
• For a center with multiple classrooms, consider purchasing a wide variety of complete block sets that can be rotated.
• Props may include play figures, transportation toys, play animals, block-size doors, windows, and signs, include containers for appropriate storage.
• Hollow blocks add dimension and variety to construction.
• Include adequate space for storage.

Dramatic Play:

• Each classroom needs child-size house furniture that includes table and chairs, refrigerator, stove, sink, cupboard, doll beds, ironing board, high chairs, sofa, and a rocking chair.
• Role play props include dolls and doll clothes, variety of dress-up clothes, play food, dish sets, and pots and pans.
• This area should have an unbreakable mirror and storage for dress-up clothes.
• Puppets enhance the dramatic play area.
• Shelving and containers keep role play props organized.

Discovery/Science Area:

• Include a variety of collections of things like stones and seashells for children to explore, look at, and play with.
• Make scientific tools available such as magnets, scales and balances.
• Provide fish or other classroom pets in appropriate habitats.
• Arrange tables and chairs for children to look at work with the collections or science tools.

Water/Sand Play Area:

• Provide an appropriately sized water and/or sand table.
• Include props for both water and sand activities.
• Shelving and storage areas will be needed for play materials.
• This area should include aprons for water play.
• Flooring should be tile or messy mat.

Manipulative Area:

• Include materials that allow children to classify objects, build structures, and solve problems, such as table toys that fit together for building and designing, and puzzles.
• Include fine motor materials such as pegs and peg boards, beads and other items to string, and lace.
• This area should offer manipulatives to be used in creating designs.
• Provide tables and chairs for children to work at. Children also like to work on the floor; consider carpet for this area.
• This area will need storage containers for manipulatives and storage racks for puzzles.
• Include a shelving unit to hold racks and containers.

Literacy Area:

• Children will come to this area to read and look at books, create and listen to stories, and play with materials. Your book collection should include at least 3-5 books for each child in the classroom.
• A quality book collection should include picture books, story books, and poetry books, including a wide range of topics: families, humor, word and alphabet, cultural diversity, seasonal/holidays, fantasy and true stories.
• Centers with several classrooms may consider creating a center library for all classrooms and families to use.
• Literacy areas need tables and chairs and comfortable places to sit and relax. Consider a carpeted area for some activities.
• Literacy areas need a variety of age-appropriate literacy games and materials.
• Include materials for children to create pictures and stories: paper in a variety of sizes, writing tools, and writing boards.
• Story tapes and flannelboard stories are ideal for both individual and group use.
• Audio-visual equipment is essential to your literacy area. Include a tape recorder, listening center, and earphones.
• Place a bulletin board in the literacy area at a child's eye level, and display photo picture collections, children's stories, and art work.

Music and Movement Area:

• You will need a record player, CD, or casette player/radio for the area.
• Include a high quality collection of age-appropriate music.
• Create a classroom collection of musical instrument so each child has an instrument to play.
• Collect instruments that reflect diversity of sound and culture.
• Include storage and shelving.

Woodworking Area:

• This area needs a child-size workbench.
• Include safety goggles and apron for each child who works in this area.
• Include a basic carpenter tool set.
• You'll need a tool box and container for storage of wood, nails, screws, sandpaper and supplies, such as wood glue.

Indoor Large Motor Activities Area:

• Include climbing structures.
• Sturdy, movable play sets are essential to this area.
• Balls, hoops, and jump ropes are needed.

STORAGE

• Cots and rest mats require a large storage area.
• Each classroom should have an easily accessible closet or cabinet that can be closed, and is available on a daily basis.
• Storage areas should have adjustable shelving for flexibility as needed.
• There should be a main storage area for the entire center for large items, shared items, and bulk purchases such as art supplies and other materials.
• A locking closet should serve as a storage area for cleaning and maintenance supplies and equipment.
• Audio-visual equipment should have adequate storage. If the center has multiple classrooms, consider dedicating an areas as the main storage area.

Your child care facility design should combine your knowledge of child care regulations and of appropriate environments for young children. Child care facilities have specific design requirements that must be applied when you build or renovate. Remodeling your facility could be very costly if you overlook or ignore the basic design requirements. The following is a basic child care center design checklist which can help you to understand the space needed to care for children. This will be of great assistance to you as you work with your architect or contractor.

ADA ACCESSIBILITY

• Federal legislation and the Americans with Disabilities Act have established guidelines that impact facilities. These guidelines apply to your facility, its entrances and its parking area(s). Use these guidelines in the planning phase of your facility. Your facility should be accessible to all individuals of all ability levels.

BUILDING DESIGN

• Consider the traffic patterns between classrooms and outdoor areas. Children should be able to move directly from the classroom to the outdoors. It is preferrable that every room have windows.
• Children's area should be designed for ready supervision by adults.
• Classrooms which provide meals throughout the day should have tables and chairs for all children and adults.

BUILDING MATERIALS

• Fire-resistant building materials are required for walls, counters, and doors.
• Building materials selected should be highly durable and easy to maintain.
• Dual flooring is recommended for classrooms. Carpeting will absorb sound, and is ideal for many activities. A hard or tile floor is appropriate for eating areas, art areas, and water sources, such as sinks.

BUILDING SIZE

• Your center enrollment determines your income; therefore, plan adequately for your classrooms. The number of square feet per child is determined by the state. The NAEYC-recommended footage per child is 35 sq. ft., to provide adequate spaces for each child's activities.
• Support areas such as hallways, kitchens, storage, and bathrooms, are not included in the square footage required for children.
• Most regulations do not allow two-story buildings due to the need for quick evacuation in case of fire.

FACILITIES

• Regulations call for specific requirements for children's bathrooms. There is a ratio for the number of children per toilet, and toilets are usually child-size.
• Children's bathrooms should be inside or beside each classroom. You may want to consider having two classrooms share bathroom facilities of adequate size to accomodate the total number of children in both classrooms, thus reducing the number of separate bathrooms needed.
• Separate bathrooms for boys and girls may be required.
• Child-size sinks adjacent to bathroom areas are highly desirable, allowing for appropriate supervision and activities.
• The water temperature for children's bathrooms is required to be regulated.
• An adult-height sink with both hot and cold water is highly recommended for each classroom.

SUPPORT AREAS

Sick Child Area:

• Many states require a designated area for a sick child in order to isolate the child from other children until a parent can come to get him or her.
• The sick child area is usually located near the administrative office so the child can be supervised.
• The sick child area should be furnished with a cot and a chair so the child can rest comfortably.
• The sick child area should be near a bathroom.

Kitchen/Food Preparation Area:

• Meal service should be located near the classrooms.
• Your choice of on-site food preparation or catering will determine what equipment your center will require.
• Be sure to check with the regulatory agencies for what is required for on-site food preparation, as there are additional requirements for centers offering this service.
• The kitchen/food preparation area will require additional storage areas for food.

Staff Loung and Work Areas:

• Staff need a place to relax, plan, and work alone or together. Consider a room large enough to serve these purposes.
• The location of the Staff Loung/Work Area should be between the administrative areas and classrooms. Recommended furniture for the area: comfortable chairs, work tables, book shelves, and cabinets.

Parent Library/Resource Room:

• This area is an added value to your center and will be an excellent service to parents.
• The Parent Library should be located near the entrance of your building for eacy access to families.
• The Parent Library can be a great place to hold parent-teacher conferences.
• The Library should be comfortable, with tables and chairs for both adults and children. You will also need child-size book shelves for the library books.

CLASSROOMS

• Children who spend their days in your care will need appropriate environments that foster positive learning and social interaction. For that reason, classrooms that exceed the minimum footage required are highly recommended.
• Classrooms should have space for children to meet as a large group, work in small groups, and have time alone with adequate supervision.
• Child-size furniture and equipment are essential to the classroom. Chairs, tables, cabinets, and shelving should be of appropriate heights for preschool children.
• Each learning center should have at least two areas for storing materials. Cabinets and open shelving units can be used to define the center areas.
• Learning center materials that children use each day should be kept in storage bins, and easily accessible.
• If children eat meals in classrooms, consider tables large enough to accomodate 6 to 8 children, instead of long, cafeteria-type tables.
• Classrooms should be light with neutral walls.
• Natural light provides an inviting area and gives a nice atmosphere to classrooms.
• Some states require minimal lighting levels; check with licensing regarding any regulations.
• Each classroom should have bathrooms available for children and one conveniently located for adults.
• Fire regulations may require two exits; one is your entrance to the classroom, and the other may lead to the outdoor play area. Check with your local fire department for requirements.
• Patios adjacent to classrooms provide additional areas for messy water activities.

NAEYC Academy of Early Childhood Programs provides excellent guidelines for early childhood environments. The academy has established appropriate child/adult ratios and group sizes that can guide the number of classrooms needed for your facility as you consider size. Call 1-800-424-4620.

LOCATION, LOCATION, LOCATION

Once you have a working knowledge of the child care regulatory systems, the zoning laws, and the requirements for your facility, the next step is to identify your location. You may already have one in mind; if not, it is critical for you to conduct more research. The facility you choose (or build) must mesh with the purpose and goals of your program. The program's success will be based primarily on its location. You may build a great child care center and establish a great child care program, but if you do not have an accessible location and a good, consistent marketing plan, parents will not find you! It is also important as you research your location to have an understanding of the child care market in the community and the community's view of a child care center where you want to establish your program. Consider property values, incomes, maturity of community, demographics, and commerical/residential development. You should seek out community resources that will help you get a profile of the community. Several agencies in your community can help you determine the need and market for your child care program.

LOCAL CHILD CARE RESOURCE AND REFERRAL has updated information on current child care programs, and can assist you in finding areas that need child care. They also may offer help with technical assistance in establishing your center. Once you have established your center and your program is underway, you will want to make sure that you are included in the resource and referral (R and R) database. Child Care Resource and Referral is ususally the first place parents look for assistance in locating child care in the community.

SCHOOL DISTRICTS maintain a current count of children in the community under the age of 5 years. In order to obtain this statistical data on ages and numbers of children, you will need to know the school district of each location you have in mind.

COUNTY SOCIAL SERVICES DEPARTMENTS have statistics on children and families, listed by geographic regions. They may be responsible for child care funds for low income families, and they may have a regulatory role in approving child care centers and family child care homes.

CHAMBER OF COMMERCE is a good resource for potential locations. The Chamber will be able to provide you with information concerning business/industry growth and community trends. They may have a listing of businesses that can provide resources to assist you as you establish your child care center.

Some guidelines to consider when selecting a site:

1. Lot size
2. Primary access to the site (ingress/egress limitations)
3. Slope of property (can affect cost of site preparation)
4. Drainage (this is especially important for the playground)
5. Results of environmental studies and soil samples
6. Economics of property and its development
7. Setback requirements
8. Attitude of surrounding neighborhood

LOCATION CHECKLIST

Once you have determined that there is a need in your community for a day care center and decided on possible locations, you will need to analyze them. The following guidelines will help you evaluate the locations you consider for your child care center.

1. Locate the existing centers and find out the ages they serve and the programs they offer in the communities you are considering. You may also want to inquire about enrollment to determine if the centers are at capacity or have a waiting list.
2. Visibility of your center in a potential community will determine how successfully you will be in reaching your enrollment goal. You should select locations that have high visibility and accessibility to the communities you wish to serve.
3. Consider the traffic patterns leading to your chosen location. Experiment by traveling to your center from different directions to determine the accessibility of the location. The ease with which parents are able to reach your center each day will be an added advantage to your program.
4. Talk to others about the future of the community you are considering for your center. Learning about the residents of businesses in a particular neighborhood will help you understand the neighborhood's future direction. This is an important consideration.
5. Contact area corporations and businesses to determine child care needs. Your location's access to working families is critical to your center's stability in enrollment. Parents want child care that is easy for them to use and convenient to home or work.

As you select potential sites, use this checklist to determine if the location will be a successful one.

Most states have regulations and a licensing system to ensure that there are minimum standards in out-of-home care of young children. Before you start developing a Child Care Center Business Plan, you should first research and understand the child care regulations in your community. The more you understand about the people who support and enforce the regulations, the easier it will be to create your business plan. Similarly, before determining your location, you should become totally familiar with local zoning ordinances.

STATE/LOCAL REGULATIONS:

The state/local regulatory office may be in either Social Services or Health and Human Services (check your local phone book). Contact the office and request a current copy of child care regulations and an application for a license. Also request any additional information the agency may have on child care centers. If you have a location in mind, ask for the district or region in which it is located, as well as the name of the child care licensing representative. The licensing representative can help you with the procedures for obtaining your license. Your assigned licensing representative will want to see and approve your building design prior to construction/renovations. Another excellent resource is your local child care resource and referral agency. It can help you with understanding current local child care regulations and community child care needs. If you do not know your local child care resource and referral agency, call the national resource and referral agency (NACCRRA) at (202) 393-5501.

ZONING DEPARTMENT:

If you have not determined a location or do not have one in mind, contact your local zoning office and request a listing of areas where child care is allowed. If a list is not available, you will need to determine possible locations and then return to the zoning office for approval. Zoning requirements vary extensively. Generally, a special use permit is required. Do not buy or lease any property until you have written approval from the local zoning department; it can be very costly and time-consuming to have a facility approved.

OCCUPANCY PERMIT:

In some communities you are required to have an occupancy permit. This is given by the county building department. Find out the specific building requirements for child care facilities. Call and request these specifications so you will be aware of construction and building needs. Use this as a guide as you develop building plans for construction or renovation of your chosen site.

LOCAL FIRE DEPARTMENT:

Contact the local fire department for a list of safety regulations and requirements for your facility. They will help you with the required location of doors, the ways doors should open, acceptable wall and floor coverings, and appropriate fire extinguishing systems. The fire department can also provide you with appropriate evacuation plans as required by licensing laws.

HEALTH DEPARTMENT:

Your facility's health regulations will be governed by local health departments. Contact the department to get current regulations for child care centers. The regulations are broad, and provide guidelines for bathrooms, ventilation, sanitation, kitchen, and food preparation. They can also provide you with the regulations for pest control.

INSURANCE COVERAGE:

Child care centers require several types of insurance coverage: general liability, excess umbrella liability, student accident, vehicle (for transporting children), worker's compensation, staff medical benefits, theft, fire, and other casualty insurance. Call several insurance companies to discuss what policies and plans they have to offer, including the National Association for the Education of Young Children (NAEYC). Request quotes in writing so that you are able to compare policies.

AMERICANS WITH DISABILITIES ACT (ADA):

This federal legislation will impact any planned building and/or remodeling of a child care facility. You must make sure your facility meets the specifications for individuals with disabilities. You should call the ADA hotline at 1-800-514-0301 to obtain written guidelines. NAEYC has a good publication, Understanding Information for Early Childhood Programs, that will help with facility and program considerations.

REMEMBER:

• Get approval of your plans and have inspections to determine their appropriateness for use as a child care center.
• Schedule all licensing people on the same day. Allow substantial lead time for all agencies to visit your facility site before you buy or lease.
• Keep a log of the people with whom you make contact and their telephone numbers. Make sure that all information from licensing agencies is provided in writing.
• Be patient and considerate with anyone you deal with. You are building relationships with regulatory agencies that will become resources to you and your child care program.
• Opening your own child care program is a process that takes time, energy, and money. Planning is critical. There will be hard times and easy times. Take care of yourself so you will be at your best throughout the process.

Most child care centers have a governing body that assists the program with representation from various professional disciplines.  You should seek members from diverse backgrounds and areas of expertise (specifically early childhood education, law, finance, business, and health and safety), as well as parents who can contribute and work on behalf of the center.

Larry Griffin finds that the number of boys who are unmotivated and underachieving is growing.  He has identified five reasons why educators and society are failing to successfully launch boys and offers advice on how we can get boys back on course.

Hear him interviewed by Rae Pica and Mark Ginsberg on NAEYC Radio: http://bit.ly/DfQCN

Larry Griffin is a National Education Training Consultant for Kaplan Early Learning Company. He consults with programs who are striving to create effective learning environments - specifically those with a desire to reverse the trend toward male under-achievement and lack of motivation. 

Larry has  a B.A. in Early Childhood and Elementary Education and a M.Ed. in Education Administration.

The type of program you create will need to be identified and legally recognized as either a not-for-profit or proprietary program. Non-profit centers can receive funding from government sources or other subsidies from sponsoring agencies. Revenues exceeding expenses in non-profit centers are used to improve salaries, buy supplies and equipment, and in other ways to increase quality and services. Proprietary centers (privately run for profit) operate to produce a return for shareholders' investments. Privately run centers also use profits for salary/benefit improvements, equipment, and supplies, along with producing a return for shareholders' investments. There are three legal forms of private organizations: sole proprietorship, partnership, and corporation (seen as the most appropriate structure for operation of a child care center). You should consult with an attorney and accountant in establishing your legal operations.