AM 107 Team 7 Project 2 Final Report Deck-2

Project 2
Final Report Deck
Prepared For:
Integrated Business Cluster at
Ohio University’s College of
Business
Professor Keifer
Professor Wright
Professor Conner
Dr. Levallet
Prepared By:
AM 107 Team 7
Yulong Tang
Austin Engel
Corey Yoder
Bradley Miller
Sean Clemons

1
TABLE OF CONTENTS
Introduction
Environmental Analysis
Macro-Environment
Micro-Environment
Local Market
Local Competitors
Business Concept
Business Concept Overview
Our Service
Target Market
Location
Operational Assumptions and Needs
Demand Forecast
Demand Scenario #1: Census Data
Demand Scenario #2: Primary Data
Marketing Strategy
Current and Future Objectives
Brand Positioning
Marketing Mix
IMC Plan (First Year)
Awareness Upon Opening
Post-Launch Communications Plan
Page
1
2
2
3
4
4
5
5
5
6
6-7
7
8
8
9
10
10
10
11
11
12
12

1
TABLE OF CONTENTS
Management Information Systems Strategy
Criteria for IS Products
KidCheck
ChildCare App
Differentiation
IS Triangle
Financial Projections
Financial Overview
Start-Up Investment
Capital Budgeting Analysis
Financial Ratios
Conclusion
References
Appendices
Appendix A: Daily Operations
Appendix B: Demand Statistics
Appendix C: International Culture (Chinese)
Appendix C: International Culture (Hispanic)
Appendix D: Financials
Appendix E: Legal Information
Appendix F: Marketing Plan
Appendix G: Security
Appendix H: Renovations
Page
13
13
13
13
14
14
15
15
15
15
16
17
18-21
22-45
22
23-24
25
26
27-35
36
37
38
39

1
TABLE OF CONTENTS
Appendices Cont.
Appendix I: Business Process Diagram
Appendix J: Dashboard
Appendix K: Marketing Budget
Appendix L: Sample Advertisements
Appendix M: Website and Facebook
Appendix N: Facility
Page
21-45
40
41
42
43
44
45

1
List of Figures
Figure 1: Sales and Profitability Trends for Daycare
Services
Figure 2: Porter’s Five Forces Model
Figure 3: Chula Vista Population
Figure 4: Best Ways to Teach Children Languages
Figure 5: San Diego County Median Household Income
Figure 6: Average Cost for Center-Based Infant Care as a
Percent of Married Couples Median Income
Figure 7: Primary Data for Demand Scenario
Figure 8: Weighted Score for Primary/Secondary Data
Figure 9: IS Triangle
Figure 10: Melting Pot Start-Up Investment
Figure 11: Net Income
Figure 12: NPV, IRR, Payback Period
Figure 13: Financial Ratios
Page
1
3
4
5
6
7
9
10
14
15
15
15
16

1
Introduction
1
Introduction │ Environmental Analysis│ Business Concept │ Demand Forecast
│ Marketing Strategy | MIS Strategy | Financial Projections | Conclusion |
References | Appendices
Melting Pot Multicultural Daycare is a friendly service for kids to learn about and embrace
diversity in a fun and inclusive environment. Melting Pot’s goal is to provide quality care and
education to children of all race and ethnicities. We plan to accomplish this by offering
daycare services as well as language classes for Hispanic, Mandarin, and English. This report
will give an in-depth analysis of Melting Pot’s business plan and how we plan to start our
daycare. We will begin with an environmental analysis of the child care service industry to
determine the feasibility of a new business. Shortly after we will analyze our competition and
state how we plan to set ourselves apart. Then, we will explain our business concept, which
will include our brand information and how we arrived at them, the resources we will need to
begin our operation, the location we decided to start our business, and the market that we
plan on targeting. Next, we will forecast demand to ensure that this is a viable business
venture. Then, we will provide an explanation of our full marketing and MIS strategies. Lastly,
we will discuss our financial projections and why they prove that our business concept is
feasible. Given the sales and profitability trends seen in the graph below, we believe that
Melting Pot Cultural Daycare can be a successful business.
Figure 1
(Biery, 2014)

1
2
Macro-Environment
Political-Legal Environment:
● Language teachers must complete a set of required courses to be eligible to teach in the state of
California.
● All workers must be over the age of 18, pass background checks, CPR certified, and trained in fire
safety.
● The building must pass a set of required inspections before opening.
For more information on the political and legal environments, refer to Appendix E.
Economical Environment:
● Employment: We will need employees that can work full-time in two different shifts throughout the
day as well as qualified instructors for our language classes. In addition to this we will need a
number of volunteers and staff to work in the kitchen.
● Average Income or Salaries: The income level of the daycare’s target market should be working
middle class families (Mooney,2016). Daycares usually can not have low tuition rates because it
would offset the salaries of the workers, rent, and other expenses. (Bonetto, 2015). Significant
economic growth triggers an increase in the number of middle class families, which would result in
more potential customers for daycares.
● Revenue Growth of Daycare Industry: The revenue of the daycare industry increased from 14.21
billion U.S. dollars in 2008 to 21.33 billion U.S. dollars in 2016, and the forecasted financial reports
reflect that the revenue will increase to 22.08 in 2020 (Statista, 2016).
Social Environment:
● There has been increasing awareness of the necessity of multilingual education among young
parents in our society (Adamy, 2016). Additionally, with the increase in mother’s entering the
workforce, there is much higher demand for daycares. Child growth rate: the number of children in
the USA has been increased from 47.3 million in 1950 to 74.1 million in 2010, and it is projected to
be 79.9 million in 2050 (ChildStats.gov, 2016).
Technological Environment:
● The use of technology has become more common in daycares. The use of computers and tablets for
games and other daily activities is becoming more popular, although it is not a major factor in the
success of a daycare.
Environmental:
● The increased environmental awareness programs for schools and daycares in recent years has
placed a high value on recycling and waste management. It is not a key success factor in this
industry, however, because most daycares include recycling and waste management practices.

1
3
Micro-Environment
High Barriers to Entry:
1. Daycare centers: economies of scale
2. Switching costs are higher than before
3. The capital requirements are substantial
4. Restrictive government policy
5. Incumbent advantages
6. Unequal: daycare’s distribution channels
Medium Buyer Power:
1. The number of children:
increased from 47.3 million
in 1950 to 74.1 million in
2010 (ChildStats.gov,
2016).
2. The increasing amount
of employment, especially
women working (Mooney,
2016)
3. The increasing
awareness of healthy
growth of Children.
4. The increasing number
of daycare centers and pre-
school services.
Low Supplyer Power:
1. Many substitutes for the
suppliers’ products.
2. Daycare industry: high
switching costs.
3. The increasing revenue:
more daycare centers
opening (Lynn, 2011).
High Threat of Substitutes:
1.The substitute product or service involves a
more attractive price
2. The cost to switch to the product or service is
low (Lynn, 2011).
(Capstone, 2009)
Rivalry Among Existing Competitors:
Competition in this industry is limited to daycares and other child service centers located near our
business in the Chula Vista/San Diego areas. According to IBISWorld, the top four companies in the
daycare industry are expected to account for only 6.7% of industry revenue. The highest market share
in the industry belongs to Bright Horizons Family Solutions with only 2.6%, and the rest of the industry’s
companies under 2% (Diment, 2016). Other competition could include other tutoring services, test
preparation services, and school run after school programs. This implies that the competition for the
proposed business would consist of other local daycare companies within the same area
Figure 2

1
4
Local Competitors
Local Market
As seen in Figure 3 , Chula Vista, California has one of the most heavily populated Hispanic populations in
the United States. 62% of their population (160,801 people) is Hispanic, while 12% (31,410 people) is Asian
(City-Data, 2013). The high number of Hispanic and Asian people makes Chula Vista a great location for
Melting Pot Multicultural Daycare.
The birth rate in San Diego County has remained consistent at approximately 14% over the past 6 years.
However, over the past 3 years, Hispanic and Asian birth rates have risen by approximately 3% each (San
Diego County, 2014). This means the demand for daycares in San Diego County will be steady, and the
demand for more culturally inclusive daycares will rise in the near future.
The median household income for Chula Vista is $60,800, which is slightly above the state of California
average of $60,000. Among Hispanic residents in Chula Vista, median household income is $50,800,
$5,000 more than the state. Asian residence median household income is $95,625, almost $20,000 more
than the state of California median household income among Asians (City-Data, 2013).
The main competitors of our daycare service in the Chula Vista area include Wee Care Preschool, Childtime
Academy, and La Petite Academy. These three businesses are considered the main competitors because
they are already established daycare centers. This allows them to offer lower prices, as well as having a
perceived level of trust with parents, because they have an established model to take care of their children.
Some other minor competitors include a local YMCA that offers daycare and aftercare services, churches
with daycare services, and other small, localized daycares. Among all of this competition, it is important that
we differentiate our business from the other businesses. We will do this by including the multicultural aspect
in our daycare, which will attract people of different backgrounds who wish to continue their culture in their
children’s lives.
Figure 3
Source: City-Data.com

1
Business Concept
5
Business Concept Overview
The idea behind Melting Pot Multicultural Daycare
is to provide a quality, trusted daycare service while
also embracing the cultural diversity of America.
Since cultures are heavily influenced by language,
we would incorporate the learning of foreign
language into our programs. This business would
also be unique to the San Diego County area. We
are joining and enhancing a proud, diverse
community by teaching kids at a young age how
important and gratifying learning about other
cultures can be. Experiencing this uncommon
community is the drive that our business operates
on.
Our Service
We provide a daycare service first, and cultural
immersion second. We plan on incorporating
Spanish, Chinese, and American cultures into all
activities, toys, and food throughout the day and
week. Mandarin and Spanish are used throughout
the day, with trials on others. See Appendix A for
more detail on the daily layout. A daycare service
must create trust between them and the parent, and
kids must want to be there.
Melting Pot & The Kids
Since kids already spend time learning at school, it
is especially key to not overwhelm kids with
learning but rather incorporate it into fun, upbeat
activities.
Melting Pot & The Parents
To assure the relationship with parents we will
provide every possible form of communication with
them. We will be flexible in working with parents to
find the best approach as we are always looking to
improve ourselves. Since parents will have a
personal relationship with specialized staff, we plan
on building trust quickly. See graphic in Appendix F
for more on parents’ expectations.
Incorporating Languages:
Learning a new language in a traditional
classroom environment and process can be
efficient, but this isn’t as effective as the
integration of language into an existing daily
routine. This effectiveness is even more prominent
when accommodated with the impatience of
children. Below (Figure 4) are some of the most
effective ways that Melting Pot can help young
children learn a new language.
(Finan, 2012)
“Misunderstanding arising from ignorance breeds fear, and fear remains the greatest enemy of peace.” ―
Lester B. Pearson
Figure 4
Melting Pot has the opportunity to incorporate
these new practices into every aspect of our daily
curriculum. Board games, crafts, sing alongs, and
story time gives the staff member the opportunity
to chose how and when language is used and
how and when the children actively speak a new
language. Everyday phrases will be taught in
different languages as well. Different days of the
week will be associated with different cultures to
create a consistent learning environment. Kids
will be learning other languages without realizing
it.

1
Business Concept
6
Chula Vista is an attractive market to open a multicultural daycare for an array of reasons. First, according
to census data, the the diversity within the schools is greater than most schools in the nation. Second, the
median income per household is substantially greater than the national average (Geographical Research,
2015). San Diego is a major area less than 15 minutes from our location. The national average for children
per daycare is 423 children per daycare (0-9). San Diego Country has approximately 557 kids per daycare.
The closest competitor was Los Angeles but the median income is lower than Chula Vista and the market
would be much more difficult to penetrate.
Melting Pot Cultural Daycare’s goal is to provide high quality education and language skills. After contacting
local businesses and asking about weekly rates, it was discovered that you can pay up to $310 a week.
Since our daycare is doing something significantly different than our competitors, we plan on adding a
premium to our weekly rates to take language classes. The market that Melting Pot is attempting to reach
consists of higher income families of any ethnicity that either want their kids to learn about new cultures, or
refresh themselves on their own culture. San Diego County has relatively high median income as seen in
figure 5. Based on our research, there is a strong demand for this market in the Chula Vista and San Diego
area.
Figure 5
Source: (U.S. Census Bureau, 2014)
Target Market
Location

1
Business Concept
7
Melting Pot’s operational needs are primarily focused on people. Qualified and trained personnel of 18
years or older will be a necessity in operations. This training includes, but is not limited to: CPR training,
criminal record clearance, and fire safety. In addition to this, we will need to make sure that our inside and
outside play areas meet the regulation sizes set by the State of California. The basic inventory and
supplies needed will be food for daily lunches, toys for play time, and desks and furniture for work areas.
Cash inflows will be received at the beginning of each week by parents paying the agreed upon rate.
Another source of revenue will be the charges that are paid for the optional language enhancement
classes.
Our building, which will cost $337,000, is located on 303 Broadway in Chula Vista right off of exit 8B of San
Diego Freeway. We are strategically placed off of a major exit less than 15 minutes south of San Diego. The
building is an old restaurant that we plan to renovate to meet our specific needs. More details on the
renovation can be found in appendix H. Our location is in a place that we feel will be convenient for our
upper-middle to high class target customers. As seen figure 6, child care cost is responsible for more than
14% of state median income for married couples with children in California.
(Klein, 2014)
Figure 6
Location Continued
Operational Assumptions and Needs

1
Demand Scenario 1:
Secondary Data
8
For the following demand scenario, census data and
consumer psychographics were used to determine
how many customers Melting Pot could potentially
receive per week.
Since Melting Pot will have language programs and
multilingual teachers, we found that 43% of parents
are willing to pay more for daycare if the care
provider is bilingual and can teach their child
another language (Lee, 2015). We then multiplied
the 43% by the 5,648,298 calculated above to
determine that there are 2,428,748 children aged 2-
9 that attend daycare/aftercare and have parents
willing to pay more for a multilingual teacher.
we found that 58.9% of parents discuss family
history/culture with their kids at least once a month
(McPhee, 2015). We then took the 58.9% and
multiplied it by the 2,428,768 previously calculated
to determine that there are 1,430,545 kids aged 2-9
who attend daycare/aftercare and have parents
who will pay more for language and value family
culture.
We then took that number and divided it by the total
number of children in the US aged 2-9 to find that
4.41% of kids 2-9 attend daycare or aftercare and
have parents that are willing to pay more for a
bilingual teacher and regularly discuss family
history.
We then applied the 4.41% to the number of
children aged 2-9 within a 5 mile radius of our
location to find that there are 2,109 children in our
target market (LoopNet, 2016).
Since our service will cost more than some other
daycares, we multiplied our target market of 2,109
children by the 31.06% of families within a 5 mile
radius who make more than $75,000 a year to come
up with a final number of 655 potential customers
per week (LoopNet, 2016).
We began by looking at the number of children
aged 2-5 and 5-9 in the US, which were 11,984,227
and 20,460,355 respectively (United States Census
Bureau, 2014). We then found that 23.4% of
children aged 2-5 use daycare and 13.9 % of
children aged 5-9 use aftercare (Glynn, 2012)(Child
Stats, 2015). We then multiplied the 11,984,227 by
23.4% and the 20,460,355 by 13.9% and added
them together to determine that there are 5,648,298
children aged 2-9 that use daycare/aftercare in the
US.
Since our daycare will have an emphasis on culture
and embracing both one's own cultures and others,
Overview

1
Demand Scenario 2:
Primary Data
9
Figure 7
For this demand scenario, we choose Intercultural
Montessori Language School, Spanish House, and
Bilingual Child Academy as benchmark daycare
facilities. These daycare facilities were chosen
because of their similar business models and
surrounding demographics. The business models
are similar because all of these daycares
incorporate foreign language and culture within their
programs. The demographics are similar because
all of these comparable daycares are located in
areas where more than 30% of the population are
either Asian or Latino and all have similar median
household incomes. Another reason that we believe
these daycares are comparable to us is because
they are all relatively new, which makes us believe
that we can experience similar success within our
first few years of opening.
Overview Demand Equation
Step 1: The first step in our demand equation
was calculating the percentage of our target
market that we could reach. To do this we first
added the percentage of market reached for each
of the daycares together. Next, we divided that
number by 3, to determine that Melting Pot would
potentially reach 10.34% of the market.
Step 2: The second step in our demand equation
was calculating how many kids that we can
expect per week. To do so, we multiplied the
2,105 kids in our target market by the 10.34% of
them that we expect to reach. Through this
calculation, we determined that we could
potentially have 218 children per week in our
programs.
Sources: (Intercultural Montessori Language School, 2016) (Spanish House, 2016) (Bilingual Child
Academy, 2016) (LoopNet, 2016)

1
Marketing Strategy
10
“Melting Pot’s top priority is to create a trusting relationship with parents. We stand by all expectations of a child care
service. We’re driven to embrace the diversity of San Diego and celebrate the spread of all cultures.” - Mission Statement
As a New Business:
Melting Pot Multicultural Daycare is planning on a
successful first year that will include the proper
positioning of our brand and a positive first
impression on parents and their children. We
have multiple goals for the launch and first year of
service that we plan on meeting. Our primary goal
that will be implemented before the launch is the
creation of our website and Facebook page. Refer
to appendix M for a display. These are crucial to
aid in reaching potential consumers as well as a
useful communication device between us and
current customers. These are key to creating
profitable growth for new daycare businesses
(Child Care Aware, 2009). To build a positive
brand position and first impression to customers
we also have the goal of collecting feedback from
customers and integrating that into our future
marketing strategy.
After Year One:
The marketing objectives of the first year are
focused on establishing our brand and position
while the next 2-4 years will be focused on
making positive changes in our strategy from the
first year and expanding our business. Melting
Pot is planning on opening a new daycare
center in a similar local market but new location.
The marketing objective here will be to increase
market-share and profitability. The new center
will have a similar mission statement while also
being tailored to the cultures of the new area.
The opening of a new center is feasible because
our projected demand is too high for one center
to match, as seen in Figure 8.
Melting Pot’s brand position is largely rooted from
the location. While we will strive to incorporate all
aspects of a quality daycare, we will also add a
modern twist based on the currently diverse
America. San Diego is an attractive market to
open a daycare that embraces diversity. We will
be able to quickly promote ourselves as an
industry leading daycare in terms of operations
because of the uniqueness of our concept. Melting
Pot can quickly separate ourselves as a unique
but affordable option to parents. As for the
branding itself, the relaxing colors of a warm
yellow and medium grey on a modern font give
consumers an inviting feel to a new service.
Brand Positioning
The different colored children in our logo
represent the diversity we welcome. The holding
of hands represents the lasting relationships that
will come from Melting Pot.
Current and Future Objectives
Figure 8

1
Marketing Strategy
11
Service:
Melting Pot will offer a full day of activities, food,
and a full environment that not only embraces the
different cultures of San Diego, but also
emphasize the immersion of language from each
culture. The activities will include sing alongs,
board games, story time, show and tell, and
occasional larger events. The environment will
consist of toys and playing areas geared toward
each culture as well as qualified staff from each
cultural background. Some lunches and food
provided at events will have options that relate to
all cultures. Melting Pot will also provide a more
elaborate, classroom-like language learning
service for after-care customers. Refer to
Appendix A for a closer look at our services and
daily operation.
Promotion Continued:
Although lack of control and and difficulty
analyzing results are concerns for a word of
mouth strategy, the low cost and credibility that
we will create are important for the perception of
a daycare service. Parents mutually agree that a
good reputation is the first requirement when
looking for a child care services. Appendix F has
more on parents’ expectations. So, Melting Pot
will focus $5,100 on developing a website and
Facebook page and subscribe to a useful
communication tool in the “ChildCare” App to
create a positive first impression on potential
customers. Focuses on the practices of our staff
and the implementation of our unique curriculum
will help separate us from competitors and create
a positive first impression to our initial customers.
Then, we will dedicate $19,958 to Public
Relations pre-launch and $22,000 to public
relations, online and traditional advertisements,
direct mail, and a customer referral program.
More on the budget in Appendix K.
❖ Positive Word of Mouth: allow
customers to spread word on the service
quality to build a solid customer base.
❖ Public Relations: generate and maintain
brand awareness while giving to the
community.
❖ Direct Mail & Online Marketing: flyers
provide simple awareness, and online
advertisements allows us to create
ongoing relationships with a large
audience.
❖ Customer Referral Program: giving
customers a discount while also creating
word of mouth allows us to efficiently
create awareness and generate demand.
Marketing Mix
IMC Plan (First Year)
Melting Pot will focus on using multiple integrated
marketing communication tools that appeal
mostly to our target market to ensure
consistency.
Place:
Chula Vista in San Diego will be a great location
for our service for many reasons. Our facility is a
few blocks from oceanside parks. The local area
is an upbeat and active community so local
marketing tools and practices will be effective.
For more details on the location refer to page 7.
Price:
Melting Pot’s pricing will be slightly higher than
the surrounding competition since we offer a
unique service with a qualified staff, The weekly
prices will be set at $310 per week. For new
customers there is a two week trial period with
discounted pricing. To fit in with the philosophy
for our company, we are also going to offer
assistance for any families applying for
government subsidies.
Promotion:
The promotional strategy of Melting Pot will rely
on positive word of mouth, which will be
generated by public relations and focus on quality
control throughout all aspects of our service.

1
Marketing Strategy
12
The primary focus upon our launch is to create
awareness and have references for consumers
that are interested. Melting Pot will have a
website and Facebook page established two
months before the opening date. This is also
when marketing efforts will begin. Appendix K
has our full marketing budget for the first year.
References for Potential Consumers:
We understand that the parents of our target
market will want to access an online resource
after becoming aware of our service so we will
have a live website and Facebook page up more
than two months before our launch. Melting Pot’s
website will fully embrace our philosophy of
emphasizing acceptance of all cultures at an
early age. A virtual tour and examples of what
kids do at Melting Pot are also available on our
website. Our Facebook page will have steady
updates on all upcoming events we are attending
and holding as well as pictures and information
from Melting Pot. For sample images refer to
Appendix M.
Public Relations:
Melting Pot staff will be attending several events
that focus on embracing the cultural diversity of
San Diego County Area as well as volunteering
and holding events to spread awareness of our
philosophy. We plan on having an info booth
set up at the upcoming San Diego Multicultural
Fest with a qualified staff member and an
assistant that provides a game for passerbies.
We also plan on being very involved with the
community through the Chula Vista Volunteer
Program two blocks down the street. Finally, the
local elementary school will allow us to hold an
assembly to do some activities similar to what
kids would be doing at Melting Pot after school.
This is all planned to take place before our
launch.
Public Relations:
We believe this is a crucial aspect to staying
successful, so we plan on staying very involved
with the community through the same
opportunities as before our launch. However, we
are always searching for new ways to help make
the San Diego County an even more inviting
community.
Online and Traditional Advertisement:
Melting Pot will have a strong presence on
facebook by not only having a page, but applying
for the premium advertising option relative to the
local area. We also plan on promoting our
upcoming events and our business in the popular
San Diego Family magazine. These ads will
reach parents who may not have Facebook. To
stay consistent, the Facebook and magazine ads
will both be very similar. Both of these will run for
the entire first year. For an example of both, refer
to Appendix L.
Customer Referral Program:
We will offer customers twenty percent off for
two weeks for every child they refer to Melting
Pot. This follows our positive word of mouth
marketing strategy and is an effective tool for
reaching potential customers.
Direct Mail:
Melting Pot will send direct mail weekly to the
local area for the first six months. We will have a
simple flyer that efficiently delivers our unique
mission statement and philosophy. Given that
79% of consumers will act on direct mail
immediately as of 2013, we can generate a large
amount of awareness and interest with an
attractive flyer (Chief, 2013). Mudlickmail.com
offers free market analysis and target list building
with our plan for $2,000. For an example of our
flyer visit Appendix L.
Awareness Upon Opening Post-Launch Communications Plan

1
MIS Strategy
13
Melting Pot Multicultural Daycare can greatly increase its productivity and efficiency through the
implementation of a proper information system. When considering the IS options, there is a specific set of
criteria which will influence our decision. Cost effectiveness is important since we are a start-up company
and have limited income. In addition, it is important that the system is easily accessible and convenient. A
free trial period would be preferred, but it’s not a necessity. Some of the functions needed for operations will
be: tuition and billing management, attendance management, employee and customer database, and much
more.
The first option we plan on installing in Melting Pot is KidCheck. KidCheck is a comprehensive system that
offers three different plans. Essentials, standard, and premium packages all offer different specs and
features. To meet the needs we require in the most cost-effective manner, we will purchase the standard
package at $45 per month that offers attendance management and scheduling functions, and only excludes
the data integration and meal-plan systems. KidCheck is trusted by many similar companies, such as the
YMCA, and the Salvation Army Community Center. KidCheck has a one month free trial to test the system
to make sure it meets our operational needs before committing and making payments.
ChildCare App
To meet the data needs and financial and meal planning area of Melting Pot, we will also be investing in a
California based company called ChildCare App. ChildCare App is an application that aids in integrating and
updating the customer information on a daily basis. We will use ChildCare App to record attendance and
inform our kitchen each day on the proper amount of food to be prepared. ChildCare App also has a feature
that lets us pair cameras with the device so parents can log in to the app to check in on their children
whenever they want. In addition to this we will use it to monitor payments and track our revenues throughout
the week. ChildCare App also offers a free one month free trial before fully implementing the system.
Criteria for IS Products

1
MIS Strategy
14
With the proper use and implementation of our information systems, we will differentiate ourselves from our
competition even further. The information systems implemented will make Melting Pot more efficient and
cost effective through a user friendly platform. It will also attract the attention of any parents considering our
services. According to an article in BusinessWire, 52% of parents are willing to pay more for a daycare
where they can periodically check in on their child through some sort of video streaming service (Lee,
2015). This is why we plan to have a camera in our main room that can be streamed through the ChildCare
App if you are a parent with a unique ID and secure password.
Another way we plan on using our information systems is by logging attendance upon arrival through the
tablets being provided to our employees. This data can be used for a number of different things. The main
one is the amount of food to be prepared each day. However, it can also be used for some financial
projections to help inform future decisions.
Differentiation
Figure 9

1
Start-Up Investment
Overview
To determine the feasibility of our business
concept, we conducted a financial analysis. This
financial analysis involved creating financial
statements, calculating key ratios, and determining
a start up cost. The following sections highlight the
most important findings with the full analysis being
in Appendix D.
Capital Budgeting Analysis
15
Through a capital budgeting analysis, we
determined that Melting Pot would be an attractive
opportunity for any investors. We concluded this
through the calculation of three key numbers:
Net Present Value: The Net Present Value is the
current value of all future cash flows of our business.
We determined that our NPV was $1,062,650, which
means that an investor would have a net income of
$1,062,650 on the investment if sold in 5 years.
Internal Rate of Return: If the IRR is higher than
the required rate of return, than the investment
would typically be considered feasible. Our required
rate of return is 10.68% and our IRR was calculated
to be 52.41%, making Melting Pot a feasible
investment option.
Payback Period: The payback period measures
how many years it will take to break even on the
investment. Our payback period needed to be less
than 5 years to be feasible and was calculated to be
3.72 years, making it a viable investment.
Melting Pot Start-Up Investment Cost
Building Cost $337,000
Renovations $73,000
Intangible Assets $9,000
Prepaid Expenses $3,660
Desired Cash Balance $577,340
Total Start-Up Investment $1,000,000
The Start-Up Costs for Melting Pot Multicultural
Daycare are seen in Figure 10 above. The
purchase of the building will be the largest
investment of $337,000, with the building
renovations being $73,000. Our intangible assets
cost include the business trademark, the facility
license, and the staff certifications. They total
approximately $9,000. The prepaid expense
account is used for insurance, totaling $3,660
start-up cost. The remainder of the start-up
investment will be used to balance out our Net
Loss incurred in the first year of operation through
the cash account on the balance sheet.
Figure 10
Figure 11
Figure 12

1
16
Financial Ratios
Current Ratio: The current ratio is a good indicator of the company’s ability to pay back their debt, both
short-term and long-term. It is calculated by taking our current assets and dividing by the current liabilities.
Given this, it is preferable for the current ratio to be higher since it indicates we would be perfectly capable
of paying back our liabilities. Through the progression of the years as seen in Figure 13, the financial health
of Melting Pot improves steadily.
Debt-Equity Ratio: The debt to equity ratio shows how much debt a company acquires in relation to it’s
stock. This means it looks at the capital structure of the company and how much debt it has to have in
order to leverage itself. The debt to equity ratio is calculated by total debt divided by total equity. Given this,
it is clear that having a lower ratio is better since it allows for more leverage without taking on too much
debt. Melting Pot is a start-up, which explains the high ratio for the first year, but our projections show that
we will improve this ratio in a relatively short period of time.
Capital Intensity: The capital intensity ratio tells you how many assets the company needs to have to
support a certain level of sales. it is calculated by taking the total assets divided by sales. This means that
a lower ratio is better since it means you have to have less capital to operate your business. Melting Pot’s
ratios are going down, but not at the rate that we wished. It is a future goal for us to be able to get this ratio
down, in other words, utilize our assets in a more efficient manner. .
Return on Equity Ratio: The return on equity ratios purpose is to show the profitability of the company
through the use of shareholder’s money. The return on equity is most useful when comparing to other
companies in the same industry.It is calculated by taking the net income and dividing it by the total equity.
This means that we should aim for a higher ratio in this area. Melting Pot, as many other start-ups, will run
at a loss for year one and will improve thereafter.
Figure 13

1
Conclusion
17
The combination of San Diego County’s growing foreign population along with above
average household income will give the unique business concept of Melting Pot
Multicultural Daycare an opportunity to be profitable. San Diego County is proud of
their cultural diversity, and this drives us to embrace and foster their enthusiasm
through the future generation.
We plan to immerse our customers in the Spanish, Chinese, and American cultures
on a daily basis through activity based learning and various cultural aspects. Some of
these aspects include toys, foods, games, songs, and language engagement. Our
mission is to create a fun, educational environment that creates lasting relationships
and useful knowledge about other cultures.
The staff at Melting Pot understands the importance of trust between parents and the
child care provider. This is why parents are given the opportunity to help us create
the best forms of communication for their specific situations. Regular conferences
and constant accessibility are implemented, along with suggestions to improve our
service are also welcomed. Melting Pot will be a welcomed addition to Chula Vista’s
rare community.

1
References
18
Adamy, Janet. (April, 2016). Dual-Language Classes for Kids Grow in Popularity. Retrieved from
http://www.wsj.com/articles/dual-language-classes-for-kids-grow-in-popularity-1459535318
Adult’s and Children’s Alliance. (2016). Retrieved April 5, 2016 from http://www.acainc.org/
Babycenter.com. Signs of a good daycare center. Retrieved from
http://www.babycenter.com/0_signs-of-a-good-daycare-center_6065.bc?page=1
Bilingual Child Academy. (2016, April). Bilingual Child Academy School Website.
Retrieved from http://www.bilingualchildacademy.com
Biery, M. (2014, June). Growth in U.S. Day Care Businesses. Retrieved March 13, 2016 from
http://www.forbes.com/
BizMiner. (2015). San Diego Child Day Care Services: industry market research. Retrieved March
17, 2016 from https://www.bizminer.com/
BizMiner. (2015). Number of Child Day Care Service Businesses in the US. Retrieved March 17,
2016 from https://www.bizminer.com/
Bonetto, L. (2015, March). Minter. Lifestyle of young families – US. Retrieved March 14,
2016 from http://academic.mintel.com.proxy.library.ohiou.edu/display/
732759/?highlight#hit1
Capstone. (2009, January 5). The five-forces model. Retrieved from
http://successfulacquisitions.net/the-five-forces-model
Chief Marketing Officer Council World Wide. (2013, October) Facts & Stats: Direct Marketing.
Retrieved From https://www.cmocouncil.org/
ChildCareAware. (2009). 12 Tips to Market Your Child Care Program. Retrieved from
ChildCareAware Website: ccapub.childcareaware.org
ChildStats.gov. (2016). Number of children in the United States from 1950 to 2050* (in
millions). Retrieved March 21, 2016 from http://www.statista.com.proxy.library.
ohiou.edu/statistics/457760/number-of-children-in-the-us/
Child Stats. (2015). America's Children: Key National Indicators of Well Being, 2015. Retrieved
from ChildStats.Gov: http://www.childstats.gov

City-Data. Chula Vista, California. (2013). Retrieved April 4, 2016 from
http://www.city-data.com/city/Chula-Vista-California.html
Department of Social Services. (2016). Retrieved April 5, 2016 from http://ccld.ca.gov/PG492.htm
Diment, Dmitry. (2016, January). Day Care in the US. Retrieved from http://www.ibisworld.com/
Downing Chee, B. (June 29, 2015). Acceptance of Working Mom’s at All-Time High. Retrieved
from http://newscenter.sdsu.edu/sdsu_newscenter/news_story.aspx?sid=75651
Eco Baby Childcare. (2016, March). Eco Baby Childcare Website. Retrieved from
http://www.ecobabychildcare.com
Farrell, Mureen. (2007). How To Run A Child Care Center: Expenses. Retrieved April 5, 2016 from
http://www.forbes.com/2007/04/04/child-care-startup-ent-fin-cx_mf_0405fundchildcareexpenses.
html
Finan, Andrew. (2012, June 6). What’s the best way to teach children a language? Retrieved from
https://languagepie.wordpress.com/2012/06/06/whats-the-best-way-to-teach-children-a-language
Geographical Research. (2015). Map based on Household Inc., Median ($), 2015 by Zip Codes from
Census data, downloaded March 15, 2015, from http://www.simplymap.com/
Glynn, S. (2012, August 16). Child Care Fact Sheet. Retrieved from Center For American
Progress: http://www.americanprogress.org
Haskins, Jane. (2015). How Much Does It Cost to Trademark a Business Name? Retrieved April 5, 2016
from https://www.legalzoom.com/articles/how-much-does-it-cost-to-trademark-a-business-name
Hoover's. (2016, March). Yak Academy. Retrieved from Hoover's database.
Hoover's. (2016, March). Eco Baby Childcare. Retrieved from Hoover's database.
Hoover's. (2016, March). YMCA of San Diego County Childcare. Retrieved from Hoover's
database.
Intercultural Montessori Language School. (2016, April). Intercultural Montessori
Language School Website. Retrieved from http://www.interculturalmontessori.org
Klein, R. (2014, April). Here’s Where Child Care is Least Affordable Around America.
Retrieved March 18, 2016 from http://huffingtonpost.com/
1
References
19

1
References
20
Lee, J. (2015, March). Parents Willing to Pay More for Quality Child Care Despite Already High
Costs. Retrieved from Business Wire: www.businesswire.com
LoopNet. (2016, April). Demographics Profiles. Retrieved from
LoopNet: http://www.loopnet.com
Lynn, M. (2011). SIC 8351 child day care services. Journal of Encyclopedia of
American Industries. 2, 1433-1440.
McPhee, C; Bielick, S; Masterton, M; Flores, L; Parmer, R; Amchin, S; Stern, S; McGowan, H;
(2015). National Household Education Surveys Program of 2012: Data File User’s Manual
(NCES 2015-030). National Center for Education Statistics, Institute of Education
Sciences, U.S. Department of Education. Washington, DC.
Mooney,L. (2016). What economic factors affect day care businesses? Retrieved March 20,
2016 from http://smallbusiness.chron.com/economic-factors-affect-day-
care-businesses-26126.html
San Diego County. (2014). Crude Birth Rate, San Diego County Residence. Retrieved from
http://www.sandiegocounty.gov/hhsa/programs/phs/documents/MchSt-BirthCrude.pdf
Spanish House. (2016, April). Spanish House School Website. Retrieved from
http://www.dallasspanishhouse.com
State of California. (2015, June). Manual of Policies and Procedures: Community
Care Licensing Division. Retrieved from Department of Social Services Website:
www.dss.cahwnet.gov
Statista. (2016). Revenue of kidney dialysis centers (NAICS 621492) in United States from
2008 to 2020 (in million U.S. dollars). Retrieved March 21, 2016 from
http://www.statista.com.proxy.library.ohiou.edu/forecasts/409811/
United States Census Bureau. (2014). San Diego California. Retrieved from
http://www.census.gov/quickfacts/table/PST045214/06073
U.S. Census Bureau. (2010). All Topics: Summary Statistics for the United States, States, Metro
Areas, Counties, and Places: 2010. [Table]. Retrieved from http://factfinder.census.gov/.
Wong, T. (2013). The Future Majority. Retrieved from
http://www.sandiegomagazine.com/San-Diego-Magazine/November-2013/The-Future-Maj
ority/

1
References
21
Yak Academy. (2016, March). Yak Academy Website. Retrieved from
http://www.yakacademy.com
YMCA. (2016, March). YMCA of San Diego County Childcare Website. Retrieved from
http://www.ymca.org

1
Appendix A:
Daily Operations
22
A Day Inside Melting Pot

1
Appendix B: Demand
Statistics
23
The key information in the statistics presented above is the number of the surplus/shortage of daycares in
selected cities as well as that surplus/shortage as a percentage of the current number of daycares. These
statistics further explain the shortage first discussed by the children per daycare statistic. The statistics
were created by first determining the demand for daycares by dividing the number of kids in each city by
the national average of kids per daycare. Once this was determined, the actual number of daycares in
each city was subtracted from the number of daycares in demand in each city to create an estimate for the
amount of the shortage and the percentage of that shortage. This information revealed that San Diego has
a significant (31.68%) shortage of daycares. They also had a total shortage of 226 daycares.
The above chart uses the number of daycares and number of children in each city to determine to children
per daycare in each city. To put the children per daycare number calculated into perspective, it was
compared to the national average. If a city has more children per daycare than the national average, they
were considered to have a shortage in daycares. Based on the statistics provided, San Diego, Los Angeles,
Houston, and Ft. Worth all were determined to have a shortage of daycares, with San Diego and Los
Angeles having the biggest shortage. The Statistic calculated was used to create a base for which countries
most likely need more daycares. One that was determined, other factors were then examined to determine
demand.
Sources: (U.S. Census Bureau, 2010) (BizMiner, 2015)
Sources: (U.S. Census Bureau, 2010) (BizMiner, 2015)

1
Appendix B: Demand
Statistics
24
The above statistics were used to determine the potential demand for the cultural daycare center by taking
into account the amount of firms owned by women and minorities in comparison to the national average.
The percentage of firms owned by women was then considered in determining the demand for the daycare
portion of the center, because more firms owned by women will typically mean that more kids will need
daycare. The percentage of firms owned by minorities was considered in determining demand for the
language and cultural part of the center. Areas that have more minorities will typically have more people
that don’t speak english
Sources: (U.S. Census Bureau, 2010)
(BizMiner, 2015)
Sources: (U.S. Census Bureau, 2010)
(BizMiner, 2015)
The Figure to the left contains the
children per daycare in the selected
cities and compares them to the
national average. It was determined
that both Los Angeles and San Diego
had significant daycare shortages.
The Figure to the left contains the
number of daycares needed to fill the
demand as well as the percentage of
that number in relation to the current
number of daycares. It was
determined that San Diego had the
highest relative shortage of daycares.

1
Appendix C:
International Culture
25
Traditional Chinese Toys
Chinese Dragon:龍
Consist of parts of:
deer, snake, fish, cow,
and eagle.
Wealth, Lucky, Power
Rattle-drum:拨浪鼓
Most popular in Qing
dynasty of China
(Beijing). the sound
from the rattle-drum
drove away devils and
bad luck.
Chinese Tiger: 虎
Parents hope their
children become kings
similar to the tiger in
the future.
Shuttlecock:毽子
Chinese traditional
sport to train
reaction and
balance.
Chinese Chess:象棋
Chinese strategy or
tactic game to train
children how to make
a plan or use tactics to
achieve objectives.
Rubber Band Skipping
跳皮筋:
Chinese traditional sport
for girls.
Traditional Chinese Festivals
Date Festival Name Chinese Food Chinese Name
Last day of lunar year Chinese New Year Eve Sweet Dumplings:
元宵
除夕
1st day of 1st Month Spring Festival Dumplings:饺子春节
5th day of 5th Month Dragon Boat Festival ZongZi: 粽子端午
15th day of 8th month Mid-Autumn Festival Mooncake:月饼中秋
Chinese Culture

1
Appendix C:
International Culture
26
Traditional Hispanic Toys
Traditional Hispanic Holidays
Time Name Hispanic Food Hispanic Name
September 15/16 Independence Day Chiles en Nogada Día de la Independencia
May 5 Cinco de Mayo Tacos, Guacamole Cinco de Mayo
January 6 Three Kings Day Rosca de Reyes Dia de Los Reyes
July 6 Running of the Bulls Stewed Bull San Fermin Festival
Marionetas: puppets
that can be
manipulated with or
without strings,
typically representing
popular characters
from children’s stories.
La pirinola (or
perinola): A hexagon
shaped top with a
different number on
each side. The player
with the highest score
after a number of rounds
is the winner.
La Pinata: Possibly
the most recognized
Hispanic toy,
cardboard container
filled with candy.
Maracas: a pair of
hollow, gourd-
shaped containers
filled with beans or
pebbles and
shaken as a
percussion
instrument
Hispanic Culture

1
27
● Prices range: from $3,582 to $18,773 a year ($300 to $1,564 monthly)
● Industry trend: revenue of child daycare increased from 45.22 billion
in 2009 dollars to 48.00 billion dollars in 2014. (The trend line is upward)
● Increasing Demand: This need exists due to the rise in households with
two working parents in our potential markets, thus leaving the parents
needing somewhere for their kids to go while they work. This also makes it
difficult for parents to promote healthy living habits, which will be
addressed by integrating health education.
● Buy Power and Supply power: The number of children has been from
47.3 million in 1950 to 74.1 million in 2010 (ChildStats.gov, 2016) The
increasing amount of employment, especially women working will trigger
the increasing awareness of healthy growth of children (Mooney, 2016).
● Prices of competitors:
Eco baby Child Center: $ 325 per week, $ 1,365 per month
YMCA daycare: $ 250 per week, $ 1,050 per month
Yak Academy: $ 350 per week, $ 1,470 per month
(Hoover’s, 2016) (Yak Academy, 2016)
(Eco Baby Childcare, 2016) (YMCA, 2016)
● Competitive advantages: Innovative multicultural services.
● Average variable costs: $ 150 per child per month
● Fixed costs: $ 28,850 per month
if the daycare center has 30 children, the fixed cost will be $962/child
Price of Melting Pot:
$ 310 per child per week
$ 1,302 per child per month
Revenues (Price)

1
28
Costs of Melting Pot:
COGS $ Occupancy: $ 232.5/month
Direct expenses: $ 35,501.25/month
General & Admini: $ 7,429.5/month
COGS & occupancy costs
Initial Cost
Direct Store Expenses
Fixed Costs: 35,501.25
● Employee salaries:
3 teachers: $ 52,000/year, $ 4,334/month
4 teaching assistants: $ 3,200/month
2 general workers: $ 2,100/month
(higher than average in USA)
● Advertising: $ 3,906/month
● Insurance: 4% sales ($ 1,562/month)
● Staff Certification $75.00/employee/two
years ($ 31.25/month)
Fixed Costs: $ 7,429.50/month
● 10% utilities: $ 125 *10%= $ 12.5/month
● 1 Manager salary: $ 7,417/month
Fixed Costs:
● Interest expense: bank loan
● Tax rate: corporate taxes list
General & Administrative
Variable Costs: $ 120
● Cost of Goods Sold: $ 120
(food, books, materials for children)
● Rent: $ 0
Fixed Costs:$ 112.5/month
● 90% Utilities: $ 125 * 90% = $ 112.5/month
Tangible: $ 339,000
● Building: $ 339,000
Depreciation: 339,000//37= $ 9,162.16/year
Intangible: $ 82,000
● Website: $ 5,000
Fixed: $ 100/year, $ 8.34/month
Amortization: 5,000/5=$ 1,000/year
● Renovation: $ 73,000
● Security: :$ 2,000
fixed: 60+100=$ 160/month
● MIS: KidCheck: $ 60/month
ChildCare App: $ 35/month
fixed: $ 95/month
● Facility License: $1,500 year
fixed: $ 500/year, $ 42/month
● Trademark:$ 500 first year
Fixed: $ 300 every 10 years
Amortization: 800/10=$ 80/year
Initial total cost: 82,000+339,000=$ 421,000
Taxes and Interest
Costs

1
29
Breakeven Point: 38
Breakeven Analysis

1
30
Capital Structure: 30% Debt + 70% Equity

1
31
Financial Statement: Income Statement Per Quarter

1
32
Financial Statement: Income Statement Per Year

1
33
Financial Statement: Cash Flows Per Quarter

1
34
Financial Statement: Cash Flows Per Year

1
35
Financial Statement: Balance Sheet

1
Appendix E:
Legal Information
36
Insurance Facility License
TrademarkStaff Certification
Due to the high liability included in the
daycare industry, and the variability of
insurance expense based on how many
children are in the daycare and the size of
the facility, Forbes.com recomends to
account for 4% of sales as the insurance
expense (Farrell, 2007).
The insurance expense is accounted for
under prepaid expenses on the Balance
Sheet and under general and
administrative expenses on the Income
Statement.
The federal trademark for our company
name and logo will cost approximately
$500 the first year, and $300 every ten
years after (Haskins, 2015).
The cost of the trademark is accounted
for under intangible assets on the
Balance Sheet and under pre-opening
expenses on the Income Statement.
The license to operate a daycare for 31-
60 children costs approximately $1,500
the first year ($1,000 start-up & $500
yearly payment), followed by yearly
renewal payments of $500. The license
requires that we meet all facility
regulations enforced by the Dept. of
Social Services (Dept. of Social Services,
2016).
The license cost is accounted for under
intangible assets on the Balance Sheet
and under general and administrative
The state of California requires that all
staff members in a daycare are CPR,
AED, and First Aid certified. We will be
sending our employees to Adult’s and
CHildren's Alliance to complete their
certification in these areas. The cost is
$75 per employee, and will need to be
renewed every two years (Adult’s and
Children’s Alliance, 2016).
The cost of these certifications are
accounted for in the intangible assets on
the Balance Sheet and under pre-opening

1
Appendix F:
Marketing Plan
37
Creative Brief
Situation: We are opening a new business in the
San Diego area, more specifically Chula Vista. We
need to attract customers to use our daycare, which
we differentiate by incorporating languages and
cultures.
Objective: The advertising needs to convey the fact
that we are trying to make the world a better place
and people more accepting. We also need to attract
customers to our new center and gauge interest.
We also need to let potential customers know how
we plan to make the world a better place.
Target Audience:
Facts about the people we are trying to reach:
● 25-40, with children:
● Married or single, does not matter
● Income greater than 75,000
● Likely going to have at least a highschool
degree
● Have a need for a daycare
● Embrace their family’s culture/history.
Current attitudes towards our brand:
● Our brand is currently unknown by the local
market.
Promise:
● We will create a better future for your
children by emphasizing acceptance at an
early age.
Support:
● Our programs will have an emphasis on
teaching kids about other cultures and
acceptance
● Our programs will also have an emphasis on
teaching kids to be prideful of their own
cultures
● We will also offer language programs that
will teach kids other languages
● We will have multiple other child
development programs.
Tone: Enthusiastic,, Educational, Accepting, Happy
Executional Guidelines and/or Mandatories:
● Everything must be professional
● Everything must be family friendly
● Everything must appeal to children (to an
extent)
(Babycenter.com)

1
Appendix G: Security
Overview
Outside/Play Area
Inside Area and Lock
Check In/Check Out
Customer Information
In any business, one of the main concerns when
opening is security. Business need to carefully
consider how they plan to lock away inventory, the
restaurants, and any financial systems. For a day
care, this need is elevated, given the fact that kids
tend to wander off and systems must be in place to
track where the kids are at all times. There must
also be systems in place to make the parents feel
safe sending their children to the daycare facility.
For Melting Pot, we will carefully consider security
needs for the outside area, inside area, check
in/check out systems, and customer information.
In reference to Appendix H: we will be renovating a
portion of the current parking lot to set up a fenced
in play area for the daycare. Outdoor play areas are
typically a consideration for security in daycares, but
since our location is close to two busy roads, the
need for security will be even greater. One issue
that parents might have with the play area is that
they might fear that their children will be watched.
To resolve that problem, we will install a 6 foot,
wooden fence along the perimeter of the area, to
prevent people from peeking in. Another concern
that parents might have with the play area is that
their kids might escape and wander out. To address
that concern, we will make sure that the only
entrance to the play area will be through the
daycare, and that one entrance will always be
locked, so that only employees can let children in or
out.
Costs
Another key area for security will be all of the
entrances and inner doorways. To keep any
unwanted people out of the center at all times, a
system will be put into place on the front door. This
system will not use any keys and will feature a
number pad in which people must enter a certain
code to get in. This code will be given to employees
and parents who need to get in and out. The front
door will also feature a doorbell and a camera so
that one of the employees can let people in from the
inside. Any doors that lead to restricted areas will
also feature the same number pad system and will
always be locked, in order to keep the children out.
Every room that the kids will be in will also feature
these, so that kids can only get in or out with the
supervision of an employee.
Another system that will be put in place is a
computer system for check in and check out. For
this system, the parent or guardian of a child will
have to sign their child in and out of the daycare
every day. To ensure that the children are leaving
with the right people, we will have a system in place
where there are certain passwords that they must
use and will have the option to list two other people
that are allowed to pick up their children. This
system will allow us to know who is in the center
and will enhance communications between us and
the parents.
Another area that will need security will be on our
computers to protect both our information and our
customers. Since we will be keeping everything
stored in databases that will run through our
computer, we will need to invest in a desktop
security system to keep this information safe.
Outside (fence in renovations)= $0
Locks = $2,000
Check in = $60
Customer Information = $100
Total cost of security= $2,160
38

1
Appendix H: Renovations
39
Overview
Exterior
Outside Play Area
Interior
Costs
Exterior = $5,500
Play Area = $16,000
Interior = $51,500
Since our building was previously used as a
restaurant, we will have to make a significant
amount of renovations. For our daycare service, we
will have to be compliant will all state regulations
before we are able to open up our business.
Several of those regulations are based on the
structure and place of business, making it crucial to
plan ahead of time for renovations. These
renovations will include cleaning up the exterior,
completely changing the interior, and changing part
of the parking lot into an outside play area.
The state will not require us to change a significant
amount of the exterior, however we will need to
make some of our own changes to make the
building look appealing. One of the first things that
will need to be done is replacing the current signage
with our own logos and brand information. Another
thing that will be changed on the exterior is the
paint, which will be repainted to match our brand.
The exterior will also have to be adjusted in terms of
the doors and entrances. For our daycare, we will
only have one entrance/exit and another exterior
door that leads to the play area that will be
discussed later. The other doorways will have to be
fixed by adding in walls or being permanently
locked. Doing so will allow us to include the security
measure discussed in Appendix G. Overall, the
signage will need to be replaced, the building will
need repainted, and the doors will have to be
adjusted.
One of the key additions to the property on our task
list will be an outside play area. Currently, the
building is surrounded by roads on two sides with
the other two sides having a significant amount of
parking space. Since we will not need a huge
amount of parking, we plan on turning a pretty
significant amount of the parking lot into a play area.
This area will be around 3,500 square feet to be
compliant with the 35 square feet per child
requirement set by the state of California (State of
California, 2016). Building an outside play area next
to two busy roads could pose several problems. To
counter these problems, we will build a 6 foot
wooden fence along the perimeter of the area that
will prevent people from looking in and kids from
getting out. For the area, we will lay down turf and
buy various playground materials for the kids to play
with. The area will also have one entrance, which
will be from the daycare and children will only be
able to get in or out with an employee.
In order to be compliant with the structure codes set
by the state of California, several renovations will
have to be made. The first thing we will have to do
is shrink the size of the kitchen area to free up
space for everything else. The next thing we will
have to do is tear down some of the restaurant
features and put up walls that will be more specific
to a daycare function. These purpose of these new
walls is to create separate rooms for the different
activities that will go on at Melting Pot. The next
step in interior renovations will be replacing all of
the floors and repainting everything to match both
our concept and what a daycare would typically look
like. One of the final and most important renovations
will be making sure that everything is compliant with
the state of California standards for daycare centers
as discussed in Appendix E. Some of the things that
this will entail will have to do with entrances, fire
safety, fixing any sharp corners on wall, and any
other feature that could pose a safety hazard to
children. Once all of these are completed, we will
then add furniture and toys to the inside of the
building.
Total cost of
renovations =
$73,000

1
Appendix I:
Business Process Diagram
40

1
Appendix J: Dashboard
41

1
Appendix K:
Marketing Budget
Vehicle Cost
Website $5,100
Public Relations $19,958
Vehicle Cost
Public Relations $8,000
Online & Traditional Ads. $10,000
Direct Mail $2,000
Customer Referral Program $2,000
Upon Launch
Post-Launch & Rest of Year One
Total Spending in Marketing = $47,058
42

1
Appendix L:
Sample Advertisements
Tri-Fold Direct Mail
43
Facebook Advertisement Magazine Advertisement

1
Appendix M:
Website & Facebook
44
Website (Homepage)
Website (About Us) Facebook Page

1
Appendix N:
Facility
45

AM 107 Team 7 Project 2 Final Report Deck-2

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (7)

Similar to AM 107 Team 7 Project 2 Final Report Deck-2

Similar to AM 107 Team 7 Project 2 Final Report Deck-2 (20)

AM 107 Team 7 Project 2 Final Report Deck-2