I. EXECUTIVE SUMMARY

Highlights

The Executive Summary gives the total picture of your child care center – both its overall program philosophy and its day-to-day services and operations. It should be one to three pages in length, and needs to be powerful and concise in describing what you want to do and what you hope to accomplish. You should tell the reader how this will be a lucrative operation, generate solid revenues, and capture the child care market in the community. You should also discuss staffing and building requirements. The Executive Summary is a quick survey format demonstrating that you are able to maintain a clear focus on your goals, what you want, and where you are going with your child care center. Given its comprehensive nature, it may be easier to write your executive summary after you have finished the complete plan.

·         Mission: Goals and Philosophy

·         Uniqueness of your program

·         Projections for the future

·         Capital and other resource needs

·         Time frame for repaying loans or investors

II. MARKET ANALYSIS

This section should give the reader a picture of the child care market in your community and a good understanding of how your program will fit into that market. Your analysis should be backed up with the facts you learned while researching the market and potential locations. You should provide detailed information on your target market, giving family demographics, levels of income, and future potential growth. As part of your market analysis, you should devote considerable attention to the current research regarding quality child care programs and what families seek when obtaining child care services. Include historical data on child care in the U.S. and future demand trends, structure of the industry, and government involvement (support and regulation). How your business plan will enable you to attract new families, while maintaining your enrollment, will be the key to your market analysis.

·         Profile the child care community, indicating growth potential

·         Give a geographic scope of your child care market, including size and population

·         State clearly how your child care center meets the quality demands for child care in your community

·         Use graphs and charts to illustrate demographics and growth potential

III. PROGRAM SUMMARY

Begin your program description with the center’s philosophy and goals in the first paragraph of the section. Next should be a description of your center’s daily routine, and how it represents your program’s philosophy and goals. Describe the legal form of your program and what you intend its image to be. Provide a descriptive survey of the community in which you wish to open your program and how your program’s philosophy will fit into that community. Regulation and licensure should also be detailed in this section, allowing you to provide information on how various aspects of your program will help maintain compliance. Use the widely recognized research cited in NAEYC’s latest publication of Developmentally Appropriate Practices. This will help the reader to understand the essential need of adequate materials and equipment for your program. Services your program will provide to families as an added value (children’s library, field trips, special classes) should be detailed. You will also need to describe your own experience and skills, and what you will contribute to the program’s operations and quality. Highlight the benefits of your location to the families in the community. If you are leasing, provide a general description of the facility, its condition, and what remodeling or renovation is required. You should also give the terms of lease and other occupancy details. Detail the number of classrooms, the size of your staff, and the number of children you plan to enroll to illustrate the quality of care each child will receive. You should detail specific needs by providing a listing of all appropriate materials and equipment for each classroom (see APPENDIX for the complete list for preschool age children).

Program Description

·         Description of children and families to be served

·         Daily program description and activities

·         Highlights of how facility exceeds minimum health and safety requirements

·         Services to families and cost benefits

·         Special facility features and support services

·         Highlights of parent/staff/health and safety policies and procedures/handbooks

·         Company Goals

·         Legal form of company

·         Lease/land terms of agreement

·         Enrollment capacity and marketing plan for enrollment

·         Highlights of how facility exceeds minimum health and safety requirements

·         Services to families and cost benefits

·         Special facility features and support services

IV. STRATEGIC PLAN FOR START-UP

In this section, you should describe the process you will go through in opening your center and establishing its operational procedures. Your plan should utilize a timetable based on your building requirements. Keep in mind that opening your child care center will take considerable planning and good timing. Remember, too, that most families choose a child care program at the beginning of the school year. The center’s admission policies should be completed and ready to use. Highlight how families are served when advertising your program by name and location; this should start as soon as your construction work begins. It may be helpful to seek a public relations consultant. Your financial operations for start-up should be described, including how your budget will reflect one-time start up expenditures, and how enrollment will be staggered with the time frame anticipated for the center to be self-sufficient. Give a realistic and obtainable goal that will show your capability of opening and operating a child care center. (If you are requesting funds with this plan, indicate when you expect the need for additional funds. You should include your marketing plan, with specific dates and advertising strategies.)

·         Planning and timetable for opening your program

·         Admission and policies handbook

·         Marketing and advertising plan

·         Start-up budget and source of funds

·         Initial and staggered enrollment figures accompanied by expenses and revenue

·         Budget projections and timetable for self-supporting program

·         Documentation of capability of operating program

·         Specific requests for funds and repay time frame

V. MANAGEMENT SUMMARY

Begin this section with an organizational chart for the center. Typical staff positions include head teacher, teacher, assistant teacher, and substitute teacher. Support staff includes clerical, kitchen, and custodial positions. Describe staff jobs and policies, and detail employee compensation and benefits. Also include plans for training and recruitment. The key to operating a quality program is the proper staff. You need a teaching staff that has skills and knowledge in child development and early childhood education. The director’s position of assigning roles and responsibilities should be specific on the administration and management of the program. If you are the director, provide your experience and skills, and focus on strengths, talents, and capabilities. If you have an early childhood background, consider a program coordinator to manager the daily child care program. A higher wage/benefits package for the staff produces less turnover and generates better-quality personnel. Establishing educational standards higher than those set by the state — along with the institutional support and encouragement for staff to obtain degrees, CDA’s, licenses, etc. — is another recommended policy.

Organization Structure

·         Organizational chart

·         Job descriptions (management/staff/support staff)

·         Recruitment practices

·         Wage and benefit package

·         Training and retention program

·         Operating controls

·         Revenue (pricing strategies and revenue enhancements)

·         Marketing/Sales (external, internal, marketing/advertisement plan for enrollment)

·         Loss prevention/insurance policies

·         Timetable for opening program

VI. FINANCIAL OPERATIONS AND PROJECTIONS

This is the heart of your business plan. Your vision is quantified in standard measurements of dollars, cents, and units of time. This section will be read carefully and thoroughly by everyone. Hire an accountant to prepare or review your financial plan. Projections should be calculated on a monthly basis for one to two years, and annually thereafter. Your plan should include the projections for profit and loss, cash flow, and a balance sheet. Discuss your insurance needs, and internal risk reduction measures taken for your building as well as the children’s health and safety. Provide the name of the accounting system you will use. State whether you plan to use child care software, and describe your program and its benefits. Give your expected taxation liabilities and responsibilities. If you are using your plan for generating additional capital or investors, summarize your precise needs, identify how resources will be used, and of course how these funds will be repaid.

·         Project description (facility description and design & location)

·         Project timetable

·         Project costs (land, building, equipment start-up costs)

·         Operating capital needs/overhead needs

·         Lease/land terms of agreement

·         Specific requests for funds and repayment time frame

·         Monthly projections for the first three years, month-to-month

·         Yearly recap for the first three years

·         Cash flow statement

VII. KEY SUCCESS FACTORS

This is your final opportunity to sell your vision and convince the read of your ability to develop and manage a fiscally sound and highly regarded child care facility. Think of it as a summation to a jury, but in this case you’re the one on trial.

 

VIII. APPENDIX

This section may include:

·         Supporting documents

·         Articles and special reports

·         Biographies

·         Bibliographies

·         Graphs and charts

·         Glossary of terms

·         Copies of contracts and agreements

·         Reference(s)