Child Care Center - Business Plan

BUSINESS PLAN
Child Care Centre
􀀐
Prepared by:
Kausar Fatima
Prince Amir Abbas
Yasir Afzal Rajput

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Report Topic
BUSINESS PLAN:
Child Care Centre
Submitted by: Kauser Fatima
Prince Amir Abbas
Yasir Afzal Rajput
Submitted to: Sir M. Arshi Wasique
Course: Management Information System
Specialty: MBA Marketing & Project Management
Institute: Preston University, Main Campus,
Banglore Town, Karachi
Submission Date 18th
June, 2017

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Table of Contents
ACKNOWLEDGEMENT ............................................................................................................................4
Executive Summary................................................................................................................................5
BUSINESS PLAN.......................................................................................................................................6
Founders.................................................................................................................................................7
Financials:...............................................................................................................................................8
Projected Profit and Loss:...............................................................................................................8
Mission: ..................................................................................................................................................9
Objectives:..............................................................................................................................................9
Key Success Factors..............................................................................................................................10
BUSINESS PLAN.....................................................................................................................................11
Start-Up Summary: ...........................................................................................................................11
Start-up Requirements......................................................................................................................11
Start-up Requirements.....................................................................................................................12
LAYOUT DESIGN OF DAY CARE.............................................................................................................14
Services..........................................................................................................................................15
Child Services ....................................................................................................................................15
Other Services...................................................................................................................................15
Vendors:................................................................................................................................................16
Public Relations:...................................................................................................................................17
Industry Analysis:.................................................................................................................................18
Brief History of Day Care...................................................................................................................18
Karachi: The Perfect Launch Market................................................................................................19
Child Development ...........................................................................................................................19
Marketing Strategy ...........................................................................................................................21
Pricing Strategy.................................................................................................................................21
Promotion and Advertising Strategy.................................................................................................21
Online Advertising.........................................................................................................................21
Management and Staffing: ..................................................................................................................22
SWOT Analysis......................................................................................................................................24
Key Competitive Strengths............................................................................................................24
Key Competitive Weaknesses.......................................................................................................24
Opportunities....................................................................................................................................24

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Threats ..............................................................................................................................................25
Strategy and Implementation Summary...........................................................................................25
Strategic Assumptions: .................................................................................................................25
Sales Strategy: ......................................................................................................................................25
THANK YOU...................................................................................................................................26

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ACKNOWLEDGEMENT
We would like to thank Almighty Allah for his countless blessings bestowed upon us. This
report is dedicated to our Parents and Teachers, for their continued support and guidance
throughout our entire life, for shaping us as true professionals.
A big thanks to all those who have generously contributed their knowledge to this report,
our teacher Mr. Arshi Wasique, our colleagues and friends at various educational
organizations. Without their understanding and support, completion of this report would
not have been possible.
We hope readers will find this report useful and the subject matter adds to their knowledge
and understanding of a Day Care Business.

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Executive Summary
Child Care Centre is a new Day Care Center in Karachi, located at Clifton and
Gulistan-e-Jauhar. It is a Limited Liability Corporation, managed by its owners,
who has no previous experience of managing a successful Day Care Business,
but they are quite passionate in establishing a profitable Day Care Business.
Their knowledge of business will make the transition to owning and running a
Day Care a natural step.
In Karachi, our potential clientele consists of individual working parents and
corporate offices (roughly 1,000 toddlers per year). We expect to easily
generate business to existing corporate offices, which will immediately
recognize the quality of our services. Marketing to the large local population in
Clifton, DHA, Gulistan-e-Jauhar and Gulshan areas to capture new business.
Attracting new customers requires a highly-visible location, association with
the quaint charm of our town, and effective promotional relationship with
other reputable schools and businesses.
We have a small number of direct competitors in both Gulistan-e-Jauhar and
Clifton areas. A very few can compete with our approach. Karachi’s growing
working class works in our favor, as our middle-upper class customer
base seeks out a safe and conducive learning environment for their child with
value for money in a convenient location.

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BUSINESS PLAN
Child Care Centre Business Plan explains that each day, hundreds of toddlers
attend day care facilities across the city of Karachi. People who would not have
dreamed of sending their young ones are gladly paying good amount of money
to have their child spend 4 to 8 hours in a conducive learning environment to
be able to join a reputable school. Our Child Care is determined to become a
renowned quality institution for young minds, at an affordable price. With the
growing demand for high-quality service, standard safety measures, quality
medical staff, pick and drop services, Child Cam View Option, Child Care Centre
will capitalize on its proximity to build a core group of customers at individual
and corporate levels.
Figure 1 - Map of Karachi showing Day Care Centers
The child education business is growing at a healthy pace. During the past 10
years with a sharp increase in demand for Kindergarten and Preprimary
Schools, parents are considered to develop key habits through daily
engagement of the young brains. With increased traffic and office stress,
parents seldom get time for such positive activities on a daily basis. A greater
number of working housewives demand quality educational, medical and

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parental care for their loved ones, while being at the liberty to view the child
with a single click of a button on their personal cell phones. Child Care Centre
provides, regular feedback on a daily basis to parents through both email and
SMS services, such that all activities of child are reported and the parents don’t
feel left out. Furthermore, to assist the parents our pick and drop service can
be availed at convenient rates to ease the burden on the parents.
Child Care Centre meets the need by offering high-quality affordable service.
Furthermore, our high-profile location in Clifton and Gulistan-e-Jauher Karachi
provides a mixed customer base that will maintain high levels of business
round the year. The same business can be up scaled in future to create a
Kindergarten Section. We also tend to offer summer camps and evening
classes to children between ages 3 to 5 years.
Founders
Child Care Centre has two founder who also direct the business at two
different locations in Karachi,
 Ms. Kauser Fatima Manager, Gulistan-e-Jauher Campus, Karachi
 Mr. Yasir Afzal Rajput Manager, Clifton Campus, Karachi

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Financials:
The company anticipates rapid acceptance of the concept in selected areas,
with revenues of 600,000+ in the first fiscal year.Net profit is projected to be
approximately 100,000 in year one. Careful estimations suggest a steady
increase in Annual revenue over the next three years as per the graphical
presentation below.
Figure 2 - Financial Forecasts 2016-2018
Projected Profit and Loss:
We project high net profits starting in the first year. Our growth rate is based
upon industry averages, factoring in the local conditions. We expect growth of
15% annually for the first three years. First fiscal year gross revenues are
expected to exceed 600,000 and after-tax net profits of approximately 99,
000—increasing to more than 200, 000 by the third fiscal year-end.
Our margins are very good. This is due in large part to the low direct costs as
well as the low operating costs in general for Child Day Cares.
Higher staff salaries, owner/operator salaries and marketing costs. Rental
saving on account of owned property.

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Mission:
“To become the market leader in Child Care Business”
We understand the level of trust placed in us when a
child is enrolled in “Child Care Centre”, and we are
committed to providing the very best of care and early
education possible this child.
Objectives:
 Make Child Care Centre the number one destination
for all toddlers.
 Sales of PKR600,000+ the first fiscal year, PKR800,000+ the second fiscal year
and PKR1 Million the third fiscal year
 Achieve a 15% net profit margin within the first year and 30% by FY3
 Achieve a total net profit of 100,000+ in FY1 and 200,000+ by FY3
 Create a solid concept in the industry and track performance in order to
begin expanding to other markets within two years.
 Turn in profits from the first month of operations.
 To operate a successful Child Centers in Clifton and Gulistan-e-Jauhar,
employing 8 to 10 employees the first year.
 To obtain a minimum of 100 regular customers in Clifton / DHA market, in
the first year of operation.

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Key Success Factors
 Service Quality. Providing exemplary services at affordable prices – will
create customer retention easy. Each customer child shall be treated
as would an honored guest in our homes.
 Enough working capital to survive the first year as we build a customer
base.
 Highly trained and friendly staff.
 State of the art class rooms, on-site child health and nutrition specialist.
 A relaxing, upscale interior design.
 Excellent home cooked food is served to our children. Water is
purchased from Nestle “Pure Life” ensuring healthy customers.
 Prime site selection with an upscale affluent population, ample parking
space, transport facility, a dynamic student population and a
concentration of local businesses.
 Ongoing, aggressive marketing.
 Highly trained and friendly staff using best Management Techniques.
 Employee on the job training to ensure the best child care techniques.
 Fire Supression and smoke ventilation systems with regular Fire Drills.
 State of the art security for all campuses, armed escort for transport
services.
 Multiple fee payment options, credit card, cash, online banking / bank
transfers etc.

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BUSINESS PLAN
Start-Up Summary:
Equipment and Inventory will make up 100% of start-up requirements. The
owner is contributing PKR 2.7 million of investment to the business.
Child Care Center is privileged to have its owned premises for conducting its
business in Clifton and Gulistan-e-Jauhar. Each sites consist of 4500 square feet
of dedicated space to support minimum of 150 young children, these centers
are equipped with the latest User Accessible Online CCTV Cameras, Multimedia
Systems, Toys and Artistic Material to engage the young brains in producing
fresh artistic ideas on paper, canvas, rubber dough and stencils.
Start-up Requirements
The Start-up requirements are listed below;
Long Term Assets: PKR 2,120,000/- Amount in Rs.
Short-Term Assets: Rs. 13, 000/- Amount in Rs.
Tables, Chairs, Furnishings 10,000
Lighting Fixtures 3,000
Suzuki Van (Bolan) 750,000
Toys and Artistic Materials 1,000,000
Medical Supplies & Instruments 45,000
Computer Equipment 175,000
CCTV Cameras, NVR, Cabling and ancillary 150,000

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Start-up Requirements
Start-up Expenses Amount in Rs.
CONSTRUCTION 0
LEGAL 0
Accounting Software 12,000
Legal 1,500
Insurance 150,000
Opening marketing/advertising 6,000
Graphic design for signage, menu boards 4,000
Outside Signage 25,000
Visiting Cards, Brochures 5,500
OFFICE 0
Office equipment 600
Computer, scanner, printer 2,000
Telephones/Fax/DSL 1,500
Stationery etc. 2,000
Gift item displays (3) 1500
Music system 800
Food display case 3,000
Storage room shelving 2,000
Total Start-up Expenses 217,400
Start-up Assets
Cash Required 150,000

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Start-up Inventory 25,000
Other Current Assets 150,000
Long-term Assets 2,133,000
Total Assets 2,458,000
Start-up Funding
Amount in Rs.
Start-up Expenses to Fund 217,400
Start-up Assets to Fund 458,000
Total Funding Required 675,400
Liabilities and Capital
Liabilities
Current Borrowing 0
Long-term Liabilities 0
Accounts Payable (Outstanding Bills) 0
Other Current Liabilities (interest-free) 0
Total Liabilities 0
Capital 2,700,000
Planned Investment
Investors 2,000,000
Other Investments 700,000
Additional Investment Requirement 0
Total Planned Investment 2,700,000

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Profit at Start-up (242,000)
LAYOUT DESIGN OF DAY CARE
The above facility layout can accommodate approximately around 100 children
which is a quite sufficient space to cater for the next three to five years.

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Services
We provide state of the art Day Care services to cater to your child needs. Specialized staff
helps your child to improve the learning curve as the little hands grow up.
Child Services
 Pick and Drop Services
 CCTV Access to your child
 Medical Checkups
 SMS Alerts
Other Services
 Kindergarten Section
 Half Day Packages
 Corporate Section
 Full day package

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Vendors:
 Toys and Stationary materials are procured from various local vendors.
 Drinking water is purchased on contract from Nestle Pakistan.
 Air Conditioners for our premises are from Digital World Pakistan (DWP).
 LED’s, Computers, Printers and other appliances are provided by DWP.
 Suzuki Bolan shall be purchased from Suzuki Riaz Motors.
 Gift items are from various vendors.
 Lunch is prepared by our own chef’s where basic materials are procured
from standard local grocery stores.
 Office Furniture shall be purchased from PECHS Furniture Market.

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Public Relations:
A strong public relations/publicity program uses as its primary “hook” these
three main points:
1. Our unique service quality
2. No commitment on quality
The goal of the PR/publicity is to achieve local market awareness and establish
the brand on a wider scale to set the stage for future expansion. Local market
awareness is vital because more than 50% of sales will come from people living
within a 5-mile radius of each of the campus .
National awareness will help drive the expansion by generating opportunities
created by the media buzz and familiarizing people with our brand name. It will
help set the stage for future brand identification.
Local Media:
 Newspaper
 Magazine
 Posters
 TV add
 Radio
Regional/National Print Media:
 Business week
 Newsweek
 express News
 Entrepreneur
National Broadcast Media:
 8 radio stations nationwide
Direct Mail:
 Ongoing direct mail generated from our website data
 Visa or MasterCard local direct mail program

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Industry Analysis:
Brief History of Day Care
Day care appeared in France about 1840, and the Société des Crèches was
recognized by the French government in 1869. Originating in Europe in the late
18th and early 19th century, day cares were established in the United States by
private charities in the 1850s, such as the Charity Organization Society founded
by Ansley Wilcox. The Fitch Creche in Buffalo, New York was known as the first
day center for working mothers in the United States. Another at that time was
the New York Day Nursery in 1854.
The vast majority of childcare is still performed by the parents, in-house nanny
or through informal arrangements with relatives, neighbors or friends. For
example, in Canada, among two parent families with at least one working
parent, 62% of parents handle the childcare themselves, 32% have other in-
home care (nannies, relatives, neighbor’s or friends) and only 6.5% use a
formal day care center.
However, for-profit day care corporations often exist where the market is
sufficiently large or there are government subsidies. For instance, in North
America, KinderCare Learning Centers, one of the largest of such companies,
has approximately 1,600 centers located in 39 states and the District of
Columbia. Bright Horizons Family Solutions another of the largest has over 600
daycare centers. Similarly the Australian government's childcare subsidy has
allowed the creation of a large private-sector industry in that country.[6]
Another factor favoring large corporate daycares is the existence of childcare
facilities in the workplace. Large corporations will not handle this employee
benefit directly themselves and will seek out large corporate providers to
manage their corporate daycares. Smaller, for-profit daycares operate out of a
single location.
In general, the geographic limitations and the diversity in type of daycare
providers make child daycare a highly fragmented industry. The largest
providers own only a very small share of the market. This leads to frustration
for parents who are attempting to find quality child daycare, with 87% of them
describing the traditional search for child daycare as "difficult and frustrating".

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Karachi: The Perfect Launch Market
By launching Day Care in Karachi, we maximize our potential for success due to
several factors:
 The highly affluent local population.
 Large number of working women / Single Parents.
 Excessive demand for quality education which tends to increase competition
for pre-primary and Kindergarten education for young children.
 Excellent auto and pedestrian traffic at our locations
 Low media costs
 Prime site location
Child Care Center is located at what is arguably the best locations for a day
care in Karachi, Clifton and Jauhar—in the heart of the core residential areas
and business district, hence attracting maximum customer base in a very short
span of time.
Child Care Center has all the ingredients necessary for immediate success.
Child Development
Independent studies suggest that good daycare for non-infants is not harmful.
In some cases, good daycare can provide different experiences than parental
care does, especially when children reach two and are ready to interact with
other children. Bad daycare puts the child at physical, emotional and
attachment risk. Higher quality care was associated with better outcomes.
Children in higher quality childcare had somewhat better language and
cognitive development during the first 4½ years of life than those in lower
quality care. They were also somewhat more cooperative than those who
experienced lower quality care during the first 3 years of life.
The National Institute of Health released a study in March, 2007 after following
a group of children through early childhood to the 6th grade. The study found
that the children who received a higher quality of childcare scored higher on
5th grade vocabulary tests than the children who had attended childcare of a

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lower quality. The study also reported that teachers found children from
childcare to be "disobedient", fight more frequently, and more argumentative.
The study reported the increases in both aggression and vocabulary were
small. "The researchers emphasized that the children’s behavior was within the
normal range and were not considered clinically disordered."
As a matter of social policy, consistent, good daycare, may ensure adequate
early childhood education for children of less skilled parents. From a parental
perspective, good daycare can complement good parenting.
A 2001 report showed that children in high-quality care scored higher on tests
of language, memory and other skills than did children of stay-at-home
mothers or children in lower-quality day care.
A study appearing in Child Development in July/August 2003 found that the
amount of time spent in daycare before four-and-a-half tended to correspond
with the child's tendency to be less likely to get along with others, to be
disobedient, and to be aggressive, although still within the normal range.

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Marketing Strategy
Other Day Cares rely almost entirely on word-of-mouth marketing to generate
business. We will engage in an ongoing aggressive marketing program that will
help us establish profitability quickly and set the stage for continual growth.
Our strategy will be to position the "Quality” of Day Care business, offering a
high-quality service at affordable prices to individual and corporate offices,
where young brain can learn and develop in a superior environment under
trained and qualified staff.
Pricing Strategy
Child Care Center primarily utilizes competition based pricing, because they
believe that the most valuable customer is not influenced by discount
programs, instead they focus on the end results, which require specialized care
from our workforce at all levels of this service.
Promotion and Advertising Strategy
Online Advertising
Child Care Centre will advertise regularly on popular social media sites, such as
Facebook and YouTube. Compared to traditional print advertising, this is a
cost-effective tactic that will allow them to reach prospects in a highly-targeted
way (e.g., based on criteria such as age, gender, geography, etc.).
Web Site – Child Care Center has developed a simple Web site, which can be
viewed at http://childcarecentr.weebly.com/ the website shall provide basic
information about the services, add-ons, admission and monthly fees and links
to their presence on the aforementioned social media channels. The website
shall be replaced by an owned domain name in initial 12 months of operations.
Radio Advertising - During the first six months of operation radio presence shall
be kept at the top three channels to aware the local customer of our services.

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Management and Staffing:
Organizational Structure:
Our organizational structure will be a simple pyramid style with the owners
putting in as much work as the employees.
Management Team:
Yasir and Fatima will share management and supervisory responsibilities
equally at their respective centers. As things move on, Junior Managers can be
hired in the 2nd
year of service and increase in number of Lady Doctors.
Staffing:
We will hire two inter level students and one lady doctor, these will be
recruited from the local Colleges, trained for their respective roles in each
center
YEAR 1 YEAR 2 YEAR 3
Manager 34,000 35,000 35,000
Junior Manager 0 30,000 30,000
Employee #1 9,600 9,600 9,600
Employee #2 9,600 9,600 9,600
Employee #3 9,600 9,600 9,600
Female Janitor 9,600 9,600 9,600

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Female Janitor 9,600 9,600 9,600
Lady Doctor (s) 8,000 15,000 15,000
TOTAL PEOPLE 7 8 10

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SWOT Analysis
The SWOT analysis examines the strengths and weaknesses that need to be
addressed. Further, this section examines the opportunities presented as well
as potential threats.
Key Competitive Strengths
 We are the only full-scale two campuses in Clifton and Gulistan e Jauhar.
 We have arranged competitive agreement with local banking companies
and high mark brands around Karachi.
 We are the only day care offering the CCTV footage of the child during the
day such that parents can monitor the activity with ease of their offices.
 Our food and eatables are of high quality, hence ruling out any unhealthy
activities, all our campuses are smoke free zones.
 We are committed to providing only high-quality services, improving and
innovating as we move forward to serve.
Key Competitive Weaknesses
Our primary weakness is that we are a new business competing against
established ones, for customers who may not know how great our services are.
To significantly build sales, we must not just find new customers - we must
take customers away from existing day cares. We can accomplish this only by
offering a superior services and a greater marketing effort.
Opportunities
• The Area demographics support the need for a unique child day care.
• Additional opportunities to target the new parents and working women.

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• The local child day care market is 10 million
Threats
• The Morning Child Care is currently for sale; should another independent
purchase this toddler care, it could pose significant threat to market share.
Strategy and Implementation Summary
The Child Care Center uses a strategy of total quality—in its product and
service. Our promise is in our location, the service we sell, the people we
attract and the atmosphere we create.
Strategic Assumptions:
 People want a better-standard day care to cater to ever competitive
education industry.
 Children need a conducive learning environment to enrich their experiences.
 The day care industry is largely unaffected by the economy and world events
Sales Strategy:
Our Sales Forecast depends on establishing a loyal customer base who use our
day care; we expect a few committed customers "regulars" who will bring in
more rewarding business through word of mouth marketing. In order to
achieve this kind of business, each customer, whether on the first visit or their
hundredth, will be treated graciously and with respect.
Part of our mission is to educate our customers about the awareness of ever
increasing competition in the education industry; however, this must only be
done in a respectful fashion. Our knowledge is a resource, and must never be
used to make a customer feel uncomfortable.
Our sales strategy includes:

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 Staff salaries that are 10% above the industry average in order to attract the
best resources.
 Hiring for attitude so that we always have a friendly, enthusiastic staff to
make customers feel welcome and appreciated; constant staff training to
assure the best quality possible
 State-of-the-art accounts/receipt system to (A) reduce customer waiting
time, and (B) create efficient fee receipts
 Create an ongoing awareness program
 Conduct a consistent, aggressive marketing program with existing and new
customers.
 Introducing Customer Rewards, customers that introduce new customers get
a reward of 10% reduced rates for bringing in a new customer.
 Solicit customer feedback to constantly improve and streamline our
operations.
THANK YOU

Child Care Center - Business Plan

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