Business Plan for JOKIDS Nursery

This business plan assesses the prospects of JOKIDS, a day care organization aimed at supporting working mothers while providing care to children. It includes an overview of the industry, challenges and opportunities, the new business idea, target customers, strategies, and budget.

Running head: BUSINESS PLAN
BUSINESS PLAN
Name of the student
Name of the university
Author note

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Executive summary
The report is aimed at assessing the different prospects of JOKIDS, the day care organization.
The concerned organization is aimed at supporting the working mothers to continue with their
professional career while providing care and nourishment to the children. The concerned
Business plan aimed at assessing the new idea and the different strategies and costs that might be
incurred by the business. Therefore, the plan will delineate the overall course of action through
assessment of the market.

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Table of Contents
1. Overview of the industry.............................................................................................................3
2. Identification of challenges and opportunities that might arise...................................................3
2.1 PEST analysis of the organization in Jordan.........................................................................3
2.2 Porter’s five force analysis of the organization.....................................................................5
3. The new business idea.................................................................................................................6
4. Target group of customers...........................................................................................................7
5. Strategy that will be followed by the entrepreneur......................................................................8
5.1 Sales and operational strategy...............................................................................................8
5.2 Promotional and marketing strategies..................................................................................9
6. Human Resource and skills that will be involved.......................................................................9
7. Budget........................................................................................................................................10
8. Conclusion.................................................................................................................................10
References......................................................................................................................................11
Appendix........................................................................................................................................13

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1. Overview of the industry
The child care industry or day care industry is aimed at providing care and supervision
related services to the children whose age ranges between six weeks to thirteen years. The early
child care activities are provided by the babysitters, teachers or nannies, which helped in
developing the mental, social and psychological elements in children. Salloum et al. (2015) noted
that the enhanced employability of the parents in the different private and public sectors has
contributed to the growth of the specific industry. It has been studied in a survey that more than
67% of the female and male parents in Jordan work in different firms, which affected their
ability of taking suitable care for their children (Kelleher et al. 2015).
Therefore, the growth of institutions under the day care industry has helped the parents in
continuing their professional career without compromising the care that the child requires.
Helmerhorst et al. (2014) stated in a research that child care industry has grown by 1.6%
between the years 2015 and 2018. It has been noted that employment of both the parents in the
different organization affected their capability of taking care of their child. Therefore, the
concerned industry aimed at providing support to the parents while assuring the same of proper
care being aided to their children in their absence.
2. Identification of challenges and opportunities that might arise
2.1 PEST analysis of the organization in Jordan
Political  Amendment of Article N*72 of labor
law will support the organizational

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processes (Perrin et al. 2017)
Economic  High service cost related to gasoline
based products in the economy might
affect the transportation cost of the
organization
 Enhanced employability in the different
sectors have enhanced the potentiality
of the customers for the organization
Social  The enhanced lifestyle trend and
maximization of women employees in
the different sectors have enhanced the
profitability of the business (Kenny
2016)
Technological  Huge amount of social network users in
Jordan will support the marketing
initiatives of the organization
 The higher amount of internet
penetration in the region has helped the
organization in upholding proficient
marketing activities

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2.2 Porter’s five force analysis of the organization
Rivalry among the competitors  Currently the market in Jordan has no
competitors for the concerned
organization
Bargaining power of the buyers  Lack of substitutes has reduced the
bargaining power of the buyers
 The cost of additional services night
provide scope for the end users in
bargaining with the organization which
is still medium
Bargaining power of the suppliers  Presence of vast number of suppliers
has helped the organization in reducing
the bargaining power of the suppliers
Threat of substitutes  Uniqueness of the services provided by
JoKids has helped the organization in

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maintaining an inimitable criteria and
avoid the risks of substitution (Kenny
2016)
Threat of new entrants  Relatively high entry barriers which has
helped the organization in reducing the
threat of new entrants
The major challenge that might be faced by the concerned organization is dependent on
the change of government regulations in Jordan. Sarti (2014) stated that government regulations
play an important role in upholding the efficiency of the activities that are undertaken by the
organizations. The different changes in the regulations might affect the capabilities of the
concerned organization in upholding the systematic processes that were designed by the
business. However, the concerned organization might face different advantages, which will
assist in the expansion and growth of the same. The major advantage that is faced by the
organization is related to the higher rate of women employees in the nation. It will assist the
organization in targeting large groups of customers towards the value proposition of the same.
On the other hand, the higher level of internet penetration will assist the concerned organization
in enhancing the marketing skills of the same while operating in the diverse markets in Jordan.
3. The new business idea
The new business idea will be JOKIDS nursery will aim at establishing a venture in a
workplace area for providing service to the mothers and support the same in continuing their

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service in the private and public organizations. The mission of the new venture is to support the
working mothers to continue with their professional careers while providing suitable care to the
children. The different changes that are undertaken by the organization will be based on the
assessment of the need of the mothers and quality of the child care services.
Sharma et al. (2014) stated that the efficiency of the business idea is based on the
assessment of the needs of the customers and thereby developing the operations. In this relation,
the concerned organization will be taking steps to assess the problems that are faced by the
working mothers and the manner in which the service proposition will help in resolving the
issues (Vis and Fossum 2015). The major issues that are faced by the working mothers are
dependent on the care that is required by the children. Vermeer et al. (2016) noted in a study that
more than 87% of the working mothers in Jordan had to leave their professional career in order
to cater to the care based requirements of the children.
Therefore, the concerned organization will be taking steps to develop its propositions
based on the assessment of the needs of the customers. The efficiency of the business idea is
dependent on the identification of unique proposition made by the same. The current
organization has aimed at providing the working mothers with an assurance of superior day care
service for the children, which would support the same in continuing with their respective
professional careers. JOKIDS nursery will aim at caring and nourishing the children and
inducing social, psychological and mental growth.
4. Target group of customers
The target customers of the organization will be people from dual income, middle-
class families who are concerned of the quality of education and care apart from their willingness

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to pursue their individual professional career. The major target group of customers for the
organization will be the working mothers who wish to continue their professional career in the
different fields of service. The delineation of the target audience helps an organization in
maintaining the efficiency of the service and product propositions in accordance to the needs of
gaining a competitive edge in the markets (Bauernschuster and Schlotter 2015).
5. Strategy that will be followed by the entrepreneur
5.1 Sales and operational strategy
The concerned organization will target customers who are indulged in corporate life. In
this relation, the concerned organization will take steps to develop unique service propositions
which will be divided into three levels. The first level of the service propositions will be
provided by the organization relating to the daily Childcare, activity and healthcare program. The
first level will propose the basic propositions of service that the organization aimed at providing
to the customers. The second level of the service that will be offered by the organization will
provide education to the children apart from the level A’s programs. The third level of
proposition from the organization will be based on preschool and training program which will
aim at enhancing the motor skills, cognitive abilities and the psychological domains of the
children. The segregation of the activities into different levels will be assisting the concerned
organization in maintaining the efficiency of the operations in accordance to the needs of
attracting the attention of the potential customers (Gottlieb et al. 2016). On the other hand, the
segregation of the different programs and activities will be helping the concerned organization in
attracting a range of customers towards the propositions.

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5.2 Promotional and marketing strategies
The concerned organization will make use of the social media platforms in order to
market the service offerings and making the target customers aware of the propositions. Perrin et
al. (2017) stated that more than 93% of the global population utilize the different social media
platforms which has helped organizations in marketing their product or service offerings more
efficiently. The concerned organization will take steps to develop contents in suitable social
media platforms with the view of making the target audience aware of the propositions. On the
other hand, the concerned organization will also take steps to develop proficient website for
assuring the customers of the quality of services that will be provided to the children. In this
context, Berman (2015) stated that the design and development of an official website helps an
organization in assuring the target customers about the reliability of the products and services
while maintaining the brand image of the same. Therefore, the marketing and sales strategies
will be supporting the organization in maximizing the rate of customers and enhance the
profitability of the same.
6. Human Resource and skills that will be involved
The experience and skills of the staff members will be based on the regulations that are
imposed by the Jordan Government. The adherence to the imposition will be helping the
organization in maintaining the efficiency of the operations in the workplace while providing
best quality care to the children. Quality of the services is a mandatory factor for the concerned
organization, as it contributes to the brand name of the business (Kenny 2016). Therefore, the
concerned organization will employ skilled personnel like teachers, babysitters and other staff
members in order to maintain the efficiency of the operations.

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7. Budget
The profit and loss projection of JOKIDS nursery that the gross profit and the overall cost
of sales are anticipated to increase over the timeframe of five years. Gross profit of the company
is anticipated to increase as it will focus on decreasing its expenses over growing years of its
business operations. Moreover, the budget prepared also indicates the advertising and marketing
expenses of the new business that can support the company to increase its brand awareness and
visibility among its target consumers. Monthly and yearly net profit of the company is expected
to attain growth at the rate of 10% each year through incurring suitable expenses in its major
operational activities.
8. Conclusion
Therefore, from the above assessment it might be stated that the new venture will gain an
advantageous position in the Jordan markets through the uniqueness of the proposition and the
higher needs of child care institutions in the region. On the other hand, the concerned
organization will also gain a competitive edge through the enhanced marketing operations of the
same. Therefore, the development of the organization with the unique propositions will be based
on rte rate of expansion in the markets depending on the increasing needs of the customers.

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References
Bauernschuster, S. and Schlotter, M., 2015. Public child care and mothers' labor supply—
Evidence from two quasi-experiments. Journal of Public Economics, 123, pp.1-16.
Berman, S., 2015. Can accountable care organizations “disrupt” our fragmented child health
system?. Pediatrics, 135(3), pp.e705-e706.
Gottlieb, L.M., Hessler, D., Long, D., Laves, E., Burns, A.R., Amaya, A., Sweeney, P., Schudel,
C. and Adler, N.E., 2016. Effects of social needs screening and in-person service navigation on
child health: a randomized clinical trial. JAMA pediatrics, 170(11), pp.e162521-e162521.
Helmerhorst, K.O., Riksen-Walraven, J.M., Vermeer, H.J., Fukkink, R.G. and Tavecchio, L.W.,
2014. Measuring the interactive skills of caregivers in child care centers: Development and
validation of the caregiver interaction profile scales. Early Education and Development, 25(5),
pp.770-790.
Kelleher, K.J., Cooper, J., Deans, K., Carr, P., Brilli, R.J., Allen, S. and Gardner, W., 2015. Cost
saving and quality of care in a pediatric accountable care organization. Pediatrics, 135(3),
pp.e582-e589.
Kenny, K., 2016. Organizations and violence: The child as abject-boundary in Ireland’s
industrial schools. Organization Studies, 37(7), pp.939-961.
Perrin, J.M., Zimmerman, E., Hertz, A., Johnson, T., Merrill, T. and Smith, D., 2017. Pediatric
accountable care organizations: insight from early adopters. Pediatrics, 139(2), p.e20161840.

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Salloum, A., Kondrat, D.C., Johnco, C. and Olson, K.R., 2015. The role of self-care on
compassion satisfaction, burnout and secondary trauma among child welfare workers. Children
and Youth Services Review, 49, pp.54-61.
Sarti, D., 2014. Job resources as antecedents of engagement at work: Evidence from a long‐term
care setting. Human Resource Development Quarterly, 25(2), pp.213-237.
Sharma, N., O’Hare, K., Antonelli, R.C. and Sawicki, G.S., 2014. Transition care: future
directions in education, health policy, and outcomes research. Academic pediatrics, 14(2),
pp.120-127.
Vermeer, H.J., van IJzendoorn, M.H., Cárcamo, R.A. and Harrison, L.J., 2016. Quality of child
care using the environment rating scales: A meta-analysis of international studies. International
Journal of Early Childhood, 48(1), pp.33-60.
Vis, S.A. and Fossum, S., 2015. Organizational factors and child participation in decision‐
making: Differences between two child welfare organizations. Child & family social work, 20(3),
pp.277-287.

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Appendix
Profit and Loss
Statement
Month Year 1 Year 2 Year 3 Year 4 Year 5
Income
Sales
Sale of services-for option 1
3,090,200.
00
3,521,900.
00 3991350
4,797,000.
00 5378000
Sale of services-for option 2
964,400.0
0
1,064,438.
00
1,173,213.
00
1,359,888.
00
1,494,500.
00
Total Sales
4,054,600.
00
4,586,338.
00
5,164,563.
00
6,156,888.
00
6,872,500.
00
Total Net Income
4,054,600.
00
4,586,338.
00
5,164,563.
00
6,156,888.
00
6,872,500.
00
Cost of Sales
Build Cost
3,120,000.
00 0.00 0.00 0.00 0.00
Operation cost-for option 1
246,005.7
5
591,496.6
3
642,780.0
0
728,826.2
5
796,003.1
3
Operation cost-for option 2
197,336.5
0
2,982,500.
00
2,390,040.
00
2,761,397.
50
3,051,318.
75
Total Cost of Sales 3,563,342. 3,573,996. 3,032,820. 3,490,223. 3,847,321.

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25 63 00 75 88
Gross Profit
491,257.7
5
1,012,341.
37
2,131,743.
00
2,666,664.
25
3,025,178.
12
Expenses Head Office
General & Administrative
Credit card commission 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Consultant fees 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Office Supplies 5,000.00 0.00 0.00 0.00 0.00
License fees 1,000.00 500.00 500.00 500.00 500.00
Total General &
Administrative 13,000.00 7,500.00 7,500.00 7,500.00 7,500.00
Advertising and Marketing 12,000.00 8,000.00 8,000.00 8,000.00 8,000.00
Total Marketing &
Promotional 12,000.00 8,000.00 8,000.00 8,000.00 8,000.00
Operating Expenses
Parking/Taxis/Tolls 500.00 400.00 400.00 400.00 400.00
Cleaning & cleaning products 500.00 500.00 500.00 500.00 500.00
Total Operating Expenses 1,000.00 900.00 900.00 900.00 900.00
Motor Vehicle Expenses
Fuel 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Vehicle costs 20,000.00 200.00 200.00 200.00 200.00
Tyres & other replacement
costs 100.00 100.00 100.00 100.00 100.00

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Insurance 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Registrations 200.00 200.00 200.00 200.00 200.00
Total Motor Vehicle
Expenses 26,300.00 6,500.00 6,500.00 6,500.00 6,500.00
Website Expenses
Domain name registration 500.00 0.00 0.00 0.00 0.00
Hosting expenses 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Total Website Expenses 1,500.00 1,000.00 1,000.00 1,000.00 1,000.00
Employment Expenses
Permanent
Salaries/Wages 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Social Security fees 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Total Perm. Employment
Expenses 21,500.00 21,500.00 21,500.00 21,500.00 21,500.00
Workcover Insurance 0.00 0.00 0.00 0.00 0.00
Total Employment Expenses 43,000.00 43,000.00 43,000.00 43,000.00 43,000.00
Occupancy Costs
Electricity/Gas 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Telephones 600.00 600.00 600.00 600.00 600.00
Property Insurance 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Rent 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00
Repair & maintenance 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Waste removal 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Water 600.00 600.00 600.00 600.00 600.00

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Internet Bills 660.00 660.00 660.00 660.00 660.00
Total Occupancy Costs 25,660.00 25,660.00 25,660.00 25,660.00 25,660.00
Total Expenses
122,460.0
0 77,060.00 85,060.00 85,060.00 85,060.00
Month Net Profit / (Loss)
368,797.7
5
935,281.3
7
2,046,683.
00
2,581,604.
25
2,940,118.
12
Total Year to Date Net Profit /
(Loss)
368,797.7
5
1,304,079.
12
3,350,762.
12
5,932,366.
37
8,872,484.
49