Creating a daycare business plan can be a daunting task. A strong business plan needs to include all of your expenses, which might entail even more than you had originally thought. It is also challenging to estimate market demand and project enrollment growth.
Studying your competition is a great place to start. Next, you’ll need to choose the location of your center carefully.
A good business plan makes projections three to five years ahead. Always refer to your business plan as you move your new business forward. Make an effort to solidify your analysis so that you can successfully achieve your goals.
Determine your edge over your competitors
It’s also important to come up with a comprehensive description of your child care center. Think of this as your “elevator pitch” for potential business partners and investors. They should be excited about your programs, vision, and location.
Contemplate the following questions when creating your daycare center’s description:
- What is the basis of your curriculum?
- What qualities are you looking for when hiring staff?
Discuss the market in your daycare business plan, including:
- Stats and characteristics of the neighborhood
- The location of your center
- Assets that makes that area promising
You can also refer to real estate websites to provide you with helpful insight into the demographics and an evaluation of the neighborhood. Find out how many competitors are in the same area. Then determine if the number of children under five years of age in your region will be enough to keep your business going strong.
Perform a market analysis
The next step is to study the child care industry. Answer the following questions in your market analysis:
- How vast is the child care industry?
- According to analysts, what is the projected growth of this industry?
Determine your market size
It’s vital to determine your target market when writing your business plan. Find out the median age of the neighborhood near your daycare. Are you located in a commuter town? Determine how your center will cater to various kinds of parents in your location.
Create your business model
Decide how your business will operate. Think about the following aspects:
- Pricing structure
- Gross margin
- Will discounts be offered?
- Will you accept government-subsidized and lower payments from low-income families?
- What types of child care discounts will you offer to your employees?
Location and rental
There are two important considerations when looking for a location to lease. First of all, find out what the square-foot-per-child requirement is in your area. Secondly, how much is the price per square foot of your location? Generally speaking, the younger a child is, the more square feet per child will be required.
Plan to negotiate for some free months with the landlord, because a daycare center will take time due to factors like construction, securing licenses and permits, and others. Make this clear to the lessor. These are the things to include in your daycare business plan’s lease information.
You may prefer a longer lease in exchange for a few months free.
As your enrollment increases, hiring more staff to comply with the student-to-teacher ratio requirement is inevitable. Your center will need things like more supplies and food as well.
Here are some factors that will require projection:
- Registration fees
- Wait-list fees
- Construction costs
- Training costs
- Supply costs
- Utility costs
- Software costs
- Marketing costs
- Staff appreciation day costs
- Bank service charges
- Accountant and legal costs
- Monthly nurse consultant costs
When writing about competitors, answer these questions in your daycare business plan
- How much is their market share?
- What are their strengths and weaknesses?
- What impediments could prevent your daycare center from growing?
Write down your marketing plan
Since you’re just starting your daycare center, we recommend budget-friendly marketing strategies to help you get your name out there.
Plan how you’ll reach your target market. Find out what families are looking for, and determine how your center can fill those needs. An effective marketing strategy presents a daycare center’s exceptional strengths.
Finalize your daycare business plan with an executive summary
As a new daycare center owner, the things you fully comprehend about the business may still be limited. However, there are still plenty of things to include in your plan. For example, you can include your purpose and strategy, the motivation behind the establishment of your center, the needs of your customers, and your growth projection.
Local Child Care Marketing has helped a variety of daycare centers with their marketing efforts through creating optimized websites, compelling ads, persuasive content, and much more. For more information about what we can do for your center, call us today!