How To Write A Successful Business Plan
As someone who owns eight successful daycares in the Chicago area, I know the strategies and approaches that work when it comes to developing a sound business plan for a daycare center.
A business plan should look about three to five years into the future.
Maybe it’s your prime location, your previous experience starting or helping start a daycare center, connections with top-notch staff willing to work for your daycare center, or other unique tools or services you can offer that distinguish you from your competition. Study statistics of the childcare industry: how big is it?
How much do economists and experts project that it will grow in the next five years? Using some of the information from real estate websites can be a good approach, like I mentioned above.
You will generally need more square-feet-per-kid the younger they are (i.e. Pro tip: things like the arc of a door’s inward swing and required sinks will eat up square footage, so take them into account.
Say your price is per square-foot and your building is 5,000 square-feet. Divide that by 12 to get your monthly rent: ,333.For example, if the area around your future daycare center has 3,000 kids under five-years-old and only two daycare centers serving them, you’re in good shape.In writing your company description, make sure to pay special attention to what sets you apart.Opening a new daycare takes a long time for construction build-outs, permits, licensing and many other factors—sometimes up to a year. Alternately, the landlord may agree to defer rent in return for a larger security deposit or added monthly payments.Asking for free months shows you’re a competent negotiator who takes his business seriously and has a long-term profit goal in mind.Will you offer discounts, or accept government-subsidized or reduced payments from lower-income parents? For detailed information on the size of your primary market, there are helpful resources, such as this guide from IBISWorld.This insightful article from Forbes is also a good resource, and notes that the U. Bureau of Labor Statistics expects daycare to be one of the fastest growing industries in the next few years.This description should basically be an elevator pitch for potential partners and business investors to get excited about what you’re offering and your unique location, philosophy, and approach. Write down particular statistics and characteristics of the neighborhood where you’ll locate your daycare center that make your center uniquely promising.Real estate sites like Loopnet and Zillow often provide helpful demographic analyses of neighborhoods; the most in-depth info is usually on commercial properties.Take an average daycare center in a city that has, say, 100 kids enrolled.If you’re in a neighborhood that has 2,000 kids you still have room for a few daycare centers to serve demand, assuming around 10 percent to 20 percent of parents will enroll their kids in daycare.