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Serving 6 months to 6
years of age
A Business Plan and Guide

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Business Introduction
Kells Kids is a start up business that provides High Quality daycare service in
Cleveland, Ohio, the Mount Pleasant area to be exact. It will be a mid size
facility opening with 20 kids, serving 6 months to 6 years of age. The
business was started out of seeing the need for quality child care in the
community, the love for children, knowing the importance of their growth,
and easily seeing that dividends can be made from it.
The majority of our community today is forced to depend on child care to
take in their littles ones when they are in able to. This of course may be due
to work responsibilites and other duties to fulfil their household. Why not use
this love to ensure that these families have a dependable place to call on?
Kells Kids wants to be there to serve these families needs and also use
government/state assistance to help those who really are unfortunate.
Knowing that we helped to mold, strengthen, & educate a child gives us a
great sense of accomplishment. We happily accept and take on this
responsibility with great arms.
Kells Kids operates using ethical practices at all times and the highest
standards of professional conduct. High Quality child care consists of correct
student to teacher ratios, appropriate group sizes, experienced/trained
teachers, and play based curriculum that is child centered. Furthermore is
possesses accreditation and a quality rating system. The purpose of our
program is to promote all areas of child development and provide an
enriching environment for kids to learn in. The task at hand of running a
successful child care center can be done and here the essentials for getting
such a lucrative investment started.
Mission Statement
Kells Kids aims to create the most nurturing, developmental appropriate and
fundamental learning experiences known to man. We implement a high
quality program and understand the importance of safe, stable, stimulating
environments. We provide a home like, comfortable atmosphere where
children are consistently encouraged and can develop at their own pace. We
are committed to the families we serve, offering support through our
referrals and community resources. Enrichment is the key to success.
Program Goals
 To create a more age - and developmentally appropriate environment
in which to serve young children;

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 To stabilize facility’s expenses or avoid yearly rent increases;
 To enable the business to remain in a particular community or retain
child care services for low-income families.
 To expand the business’ capacity to serve a growing market or meet a
growing need.
Objectives
The objectives for the first three years of operation include:
 To create a High Quality based operation whose primary goal is to exceed
customer's expectations.
 The utilization of Kells Kids by at least 40 different families in the first eight
months.
 To increase the number of client's served by 20% each year.
 To develop a sustainable, profitable, start-up business
Research Market Feasiblity
If you’re wondering if there is a need for child care in the Cleveland area
where my business will be located, don’t wonder. The answer to that
question is YES. It has the highest percentage rate for persons less than 5
yrs. of age amongst surrounding towns.
Beachwood 3.5%
Independence 4.3%
Bedford 5.4%
Cleveland Hts 6.1%
E. Cleveland 6.4%
Cleveland 7 .1%
As we can see Cleveland Heights and East Cleveland are also approaching
high marks which happen to be very close in proximity. In turn, this displays
an excellent opportunity for growth and easy expansion.
Social and ecomonic change here in Cleveland always create a need for child
care. Not a day goes by a friend or someone known is pregnant. Not to
mention, and please believe they are either working full time and/or
attending school full time. They are even collecting government assistance
because they simply just need the help. These families are in desperate
need of finding somewhere along the main areas of the city to take their

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child. The traditional structure, where the mother is the homemaker and the
father is the wage earner has diminished. This is especially true in this
community of Cleveland, Ohio. The majority of these working women are
single or do not have the option of a spouse caring for the child. 70% of
them work full time and 30% part time. Based on the market in the area,
starting up a daycare is most definitely feasible.
Competition
The child care market is quite competitve and there are roughly 19 total in
the zip code of 44120. Don’t let that number scare you because if we ask
how many quality centers there are we will come up very short. There are 2
other facilities on the same road that are in close proximity to the proposed
location.
 Brightside Academy
 Before & After Learning Center
Kells Kids is set apart from these two based on 1 factor alone. That is High
Quality. The parents in the area should always have access to quality options
and once they see the atmospshere in which their child will be placed, they’ll
be anxious to have them start attending Kells Kids immediately. Due to the
growth of infants in the community, research has found that a lot of times
the competition are intaking more kids than they should and not complying
with ratio requirements.
A lot of clientele in this projected area are low income and not accustomed
to seeing a high end, appealing environment to place their child. Kells Kids
wants to bring a different level of child care to the scene. Putting funds and
tasteful energy to good use; not having run down toys, smelly cots, and
unusable equipment around for the kids to use. There are so many occasions
where kids are seen using materials that aren’t suitable for their age
development. It’s sad and unfortunate to say, but these neighboring daycare
centers just don’t have those up to par standards and are constantly being
in violation. Yet these parents are forced to take their children there due to
feeling as if that is the best and only option they have; placing them in
crowded class rooms where its extremely difficult to have that undivided
attention.
Kells Kids wants to show the families they don’t have to. High Quality Child
Care can exist within an urban low income community. The competitions are
not and could never be a threat because as displayed earlier, persons under
the age of 5 are on the rise! There is enough business to spread amongst us
in the community. Furthermore the curriculum, environment, and
professionalism set us far apart.

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Industry Trends
The child care industry itself looks very much stable at this time and shows
to be for a long while. Today there are 22 million working women. Of that 22
million 7 and a ½ million are working mothers. More and more families are
looking outside of the home for child care options and statistics show that
this number is on the rise also. Studies prove that pre-school and some form
of early childhood education is a sound economic investment. Every $1
invested in early education saves taxpayers future costs and is also an
investment that pays great returns to children. Due to rapid growth, there
have never been more career opportunities in early childhood. The funny
thing is that according to www.census.gov, Child care costs had raised from
$84 to $143 per week over the past 20 years but the wage for a child care
worker has not. This in turn proves the expense of a paying an employee will
likely never raise while the generation of revenue in the center will continue
to increase.

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 Every week in the U.S 11 million children younger than 5 are in a child
care arrangement. On average they spend 36 hours per week in a
child care.
 Quality Child Care has a positive benefit on all kids, but the impact is
much stronger for children in low income families.
 40 states are now investing over $5.1 billion in pre-k programs for
children 3-4 years old.
 2.6 million Children received subsidies.
Business Organization
Legal
Kells Kids is set up as a Limited Liability corporation. This is the best
structure as it protects from personal liablity and only the amount invested
in the business would be at risk. As business grows and if another center
needs to be established which is anticipated, a separate LLC would be set up
for each location. LLC’s are simpler and more flexible as they don’t require a
board of directors. This also benefits potential investors as Kells Kids would

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be able to offer a larger amount of the profits than warranted by their initial
investment.
The management team determined the policies and the budget. The policies
are clear and consise. The parents receive a handbook outling all of the rules
and policies. It details late fees, days open during the year, important
information needed about their child and much more. They are required to
sign and date the handbook advising us they are fully aware of Kells Kids
service. Tenure in the daycare field equates to over 10 years of experience
and training. With this knowledge we’ve gained we are able to budget and
plan this operation as effectively and cost friendly as possible without
cheating the kids nor the business.
A liability policy as well as a property policy is carried and they will be thru
State Farm.
Licensing/Regulation
There are most certainly licensing and regulation requirements that must be
met in order to be able to open and successfully run Kells Kids. The most
important thing the state requires is completing the Plan of Operation. This
document basically outlines everything done within the center and how its
successfully carried it out (available upon consideration). There are 2 classes
that must be completed before you can even apply and they are ‘How to
Start’ and ‘Plan of Operation Orientation’ (See certificate of completion). A
copy of Section 5101 in the Ohio revised Code (http://codes.ohio.gov)
remains as a reference at all times. This contains laws that must be followed
in order to run a successful center.
Inspections include Building, Fire, and Food/Health.
We’d obtain the ‘Certificate of Occupancy’, fire approval, and food
certification from the local Health department.
Zoning is also required which will be completed once we have the building in
our possession. The state requires 35 sq ft of usable space per child the
space we desire at this time has 6700 sq ft. The city has already informed us
the location will be in fact fit for a center, which is something we always
check before committing to any property.
The state has step by step procedures for child care licensing and they are
as follows:

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150 DAYS PRIOR
TO OPERATING
•Download a copy of child care licensing rules, review, write down questions.
(http://emanuals.odjfs.state.oh.us/emanuals)
•Register and attend "How to Start" training
•After we secure building, call local zoning, building, fire, and health department to
determine if suitable for child care
120 DAYS PRIOR
TO OPERATING
•Hire a qualified administrator
•Register and attend "Intial Plan of Operation Orientation"
•Submit an application online for a child care license, $500
90 DAYS PRIOR
TO OPERATING
• Secure BCII and FBI criminal background check for administrator. Have
results sent to local ODJFS office
85 DAYS PRIOR
TO LICENSING
•Complete Plan of Operation will all attachments
•Secure building certificate of occupancy, fire inspection report, and food
service license.
•Once completed Plan of Operation has been submitted it will be scored.
75 DAYS PRIOR
TO LICENSING
•Hire staff and begin to collect documents needed for employee file.
•Secure needed equipment (furniture, cots, cribs, toys, etc)
65 DAYS PRIOR
TO LICENSING
•Stay in touch with our Licensing Specialist and have open communcation in
regards to status. Send additional materials if necessary.

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There it is. With these clear procedures and utilizing our licensing specialist
(Steve Romano, who has no problem letting the management team know
exactly what we need to do to become successful), there is absolutely no
room for failure.
Management/Operations
The management team consists of Keltress Hutcherson along with 1 other
employee who also assists with the day to day operation and her name is
Jillian Fowler. She has been in daycare for 8 years, attended the CDA
program with Keltress and has worked as an administrator in the past.
Keltress and Jillian are responsible for record-keeping and program
management. Kells Kids has another employee by the name of Belinda Sims
who has exerience steming back from 1992. She works with the infant and
toddler rooms. Since we are be opening up with 20 kids this is sufficient as
we start up and of course as enrollment grows the staff will grow in turn
also.
Employee Requirements
Any employee must undergo a BCII & FBI background check. They are also
be required to provide education verification, medical exam, 3 references,
50-40 DAYS PRIOR
TO LICENSING
• Complete Employee files (Secure BCII/FBI, results returned to
center address)
• Schedule an on site inspection with our licensing specialist
30 DAYS PRIOR TO
LICENSING
• On site inspection completed. (all classrooms must be set up)
• Follow up inspection if needed; send any follow up materials to
the licensing specialist.
20 DAYS PRIOR TO
LICENSING
• Paperwork is submitted to the licensing supervisor for
procession. (Initial licensing letter must be posted at the facility
until the actual license face is received.

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and an employee policy review statement before they can be around the
children. The state is extremely strict about this and it’s seen to it that every
process is enforced. Kells Kids is assigned a specific licensing specialist who
has been guides us throughout this entire process. Taking the time in
selecting the absolute best candidates for the job of nuturing and educating
our kids is important. Kids also can get attached to their teachers so its also
important to eliminate as much turn around as possible.
Daily Operation
The business is run day to day with a set schedule of daily program activities
for our kids and it follows the Early Learning and Development Standards
(ELDS). This allows them to understand the importance of routine and know
what to expect when they come in the center. Each week there is a theme
that has a connection to their lives and the focus on doing fun and educating
things around that theme. Connecting activities through the use of a theme
allows children to build on previous learning. The competitive edge that Kells
Kids has goes back to High Quality. Once the provisional license is in place,
Ohio’s Step Up to Quality star rating system is utilized. It recognizes learning
and development programs that exceed licensing health and safety
standards.
Preparing the Environment
Safety is a detremental concern to Kells Kids when planning space. When
children feel safe, they feel free to learn. Open spaces must be provided so
the entire room can be supervised. The equipment and materials are age
appropriate, neat, and organized to where the kids are easily be able to
locate what they’re looking for. The goal is to run a program that allows our
kids to be independent and explore different aspects on their own. By also
providing an abundance of materials and creating a space with high
activity/low stress, kids are able to make choices as well as play
comfortably. This is another factor that separates Kells Kids from the
competition.
Cool colors are used such as light blue, light green, white, and purple. They
create a feeling of openess and a positive response from the kids. It makes
them feel calm, refreshed, peaceful, and restful. Warm colors also make a
contribution like red, yellow, and orange. They tend to make a room seem
smaller but studies show children prefer this up to the age of 6.
Technology Needs
There is most certainly a need for 2 computers, printer, as well as a fax
machine in the office. They are not accessible to the kids what so ever and

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remain locked in the main office at all times. This is also where we keep our
up to date filing system that contains essentials such as attendance records,
consent forms, immunization records, meal plans, etc. Quickbooks as well as
Microsoft Office is used to manage our day to day business.
Marketing
Our service of High Quality child care targets the surrounding neighborhood
of the Cleveland Mount Pleasant area. The neighborhood consists of single
working mothers and mothers that cannot afford to pay for child care on
their own (government subsidy). Kells Kids also target parents that happen
to work in the area and need somewhere local to drop off their child. To
ensure our name gets out there and for the neighborhood to know Kells Kids
is coming to town, various avenues are used.
Promotional Strategy
It is extremely important that we registered with three very important
entities to ensure our presence is known.
The Ohio Job and Family services are excellent in providing families
with information on quality daycares to send their kids to. By
registering with them these families will be able to seek service from
us.
The Ohio Child Care Resource and Referral Association also provides
assistance to families in the area and assists us with taking necessary
trainings to strengthen our program.
The Ohio Job and Family
Services
The Ohio Child Care
Resource and Referral
Association
The NAEYC, National
Association for the
Education of Young Children

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The NAEYC, National Association for the Education of Young Children.
They are the professional organization that promotes excellence in early
childhood education. The field of early childhood constantly changes. They
will assist us in keeping up with current developments.
Financial
Here is where things get interesting and now the time to see what this
service will actually cost us to get up and running. There will be start-up
costs and these are some of the things we would need to purchase to begin:
 Stackable chairs
 Tables
 Office furniture
 TV and VCR
 Sleeping mats/cots
 Storage bins (depreciated)
 Computer system with printer, CD-RW, and Internet connection
 Copier and fax machine
 Art supplies
Community Involvement
•We are going to have a Grand Opening of the center and prior to doing so we are going to
create flyers advertising the big event! They will be distributed door to door, to nearby
businesses, on street poles, and even word of mouth. We’ll provide free food such as hot
dogs, hamburgers, and chips to bring the community out for the great cause.
Open House
•During the opening we provide the opportunity to people to walk thru and see what we've
done to the center. Allows prosepctive customers to meet the staff and tour the facility. The
kids in the neighborhood will finally have a safe place to learn and an enticing environment to
do so in. Everyone will be able to walk in and see the high quality first hand.
Networking
• Go out and meet with people and groups in the community who may work with families.
Provide them with our flyers/business cards. Also contact the nearby centers to let them know
of our Grand Opening. As I mentioned earlier, a lot of these centers experience overflow so its
important to network and help them with that problem. When they do have this issue they
can simply give us a call and we can happliy accept the overflow.

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 Toys
 Medicine kits
 Kitchen supplies
 Brochures
 Cleaning supplies
 Legal fees
 Advertising costs
Start-Up Expenses Cost
Fees/Administrative
Child Care License
Business License
Permits
Background Checks/Fingerprints
Fire/Building/Food Inspection
Insurance (hazard, liability)
Business Phone/Utilities
Lease/Rent (2 months)
$500
$175
$200
$120
$145
$2450
$275
$7400
Equipment
Fire Extinguishers
Smoke Detectors/Installation
Fencing
Outdoor Play Equipment
Furniture (tables, chairs, cots)
Infant Equipment
Kitchenette/Cleaning kit
$310
$130
$1290
$3295
$7289
$2990
$590
Supplies
Toys
Books/CD’s
Activity Supplies
Other
$4715 (All items total)
Office Expenses
Software
Filing Cabinet, phone
Computer
Supplies (paper, file folders, etc)
$70
$130
$500
$25
Marketing Costs
Business Cards/Flyers
Website
$245
$125
TOTAL START UP COSTS $32,969

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Ongoing Expenses Cost per Month
USDA Food Program $400
Insurance $595
Lease/Utilities/Building $5500
Curriculum Supplies $275
Maintenance $110
Staff/Salaries $1500
Administrative $100
TOTAL MONTHLY EXPENSES $8,480
INCOME per Month
Child Care Fees
Infant (2 Kids)
Toddler (6 Kids)
Pre-School (12 Kids)
Registration Fees $25 per child
$175 per child/per wk x 2 = $1400
$155 per child/per wk x 7 = $3720
$149 per child/per wk x 16 = $7152
$500
TOTAL INCOME $12,772
Profitability Worksheet
Gross Income Per Month $12,770
Expenses per Month - $ 8,500
Net Income (Profit) = $4,270
(Set aside for taxes - $670)
Total Net Profit = $3,600 per mo

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Projections
As you can see not only is Kells Kids going to break even, it will be creating
a significant profit and a budget surplus. Thus, creating the ability to pay
back any funds borrowed within a reasonable amount of time.
Kells Kids has a capital investment of $5,000 in savings. So in total we are
asking for $28,000 to get this process started. We have a wonderful banking
relationship with our financial institution, Navy Federal. Before we indebted
ourselves to them and seek 30,000 from the SBA as a 5yr loan, we want to
be able to attract local investors first. Give people who do have this money
the chance to invest in something positive for a change; invest in something
that will give back to the community as well as give back to themselves.
Appendix & Attachments
The following documents are available upon consideration:
1. Certifications of Training completed
2. Market Study Material
3. Resume
4. Plan of Operation