Happy Child Care Organisation Business Plan

Happy child care is a new NGO that intends to provide day care services and resting places for infants. The organization plans to provide secure and safe services. This paper provides a business plan on how the organization is to be run right from inception.

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Happy childcare organization Business plan
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Affiliation
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Executive Summary
Happy child care is a new NGO that intends to provide day care services and resting places for
infants. Themid-sized organization targets children with less than seven years. The targeted
children are those whose parents live within Sydney city in Australia. The organization plans to
provide secure and safe services. These services are expected to offer an alternative to the many
children who are left with housekeepers at home. The organization is being started based on the
market that has been improving every day in the region. Though the sole purpose of starting the
organizations profit making, such a business is important for the people in those communities. It
is hard for an individual to realize how important it could be until when the need to his/her child
join a child care centre arises. Such scenarios may never be avoided, and in case of options, most
child care centres are always the best on the list of options available. For any entrepreneur, this
could be a good business to start up. Therefore, this paper provides a business plan on how the
organization is to be run right from inception.

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Contents
Executive Summary.....................................................................................................................................2
Contents.......................................................................................................................................................3
Introduction.............................................................................................................................................5
The Market..................................................................................................................................................5
Customers....................................................................................................................................................6
Management plan........................................................................................................................................7
The mission of the organization..................................................................................................................7
Objective/goals of Happy Kids Child Care organization.............................................................................7
Ways of attaining Success in the organization.............................................................................................8
Organization Summary................................................................................................................................8
Action plan..............................................................................................................................................9
Organization Ownership..............................................................................................................................9
Starting Summary........................................................................................................................................9
Services.....................................................................................................................................................14
Organization Locations and other amenities..............................................................................................15
Market Analysis........................................................................................................................................15
Market Dissection......................................................................................................................................15
Full-Time Working Couples......................................................................................................................16
Part-Time Workers and Drop-ins..............................................................................................................16
Targeted Market division Strategy............................................................................................................18
Market scheme..........................................................................................................................................18
Service organization Analysis...................................................................................................................18
Buying andCompetition Patterns...............................................................................................................19
Implementation Strategy............................................................................................................................19
Competitive advantage..............................................................................................................................19
Sales approach...........................................................................................................................................20
Sales Forecast........................................................................................................................................20
Management brief......................................................................................................................................23

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Personnel strategy..................................................................................................................................24
Financial Plan........................................................................................................................................25
Break-even Analysis..................................................................................................................................25
Projected Profit and Loss.......................................................................................................................26
Projected Cash Flow..............................................................................................................................31
Projected Balance Sheet........................................................................................................................33
Business Ratios......................................................................................................................................34
References.................................................................................................................................................37

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Introduction
Day-care or childcare is the care or attention that is given to infants during the day, the care is
provided by a person who is not a parent of a legal guardian of the child. These services are
highly used by working parents who may never get enough time to take care of their children
during day since they are occupied with work. These services are provided in designated areas or
a person is hired to take care of the child at the parent’s home. While at the child centres, the
children are given a chance to participate in any games of their choice. Infant education is also
provided to the children while they are at the childcare centers. Discipline is one of key aspects
that is dealt with at these centers. It is the responsibility of the care takers to educate these young
children on the makers and behaviours required in the pubic. To operate in such an industry, a lot
of energy, patience and enthusiasm is required. A lot of crying and noise is involved. Despite the
tough requirements involved, the business really pays off. Starting up such a business in a busy
place like Sydney would really make a lot of profits for the entrepreneur.
The Market
Child care centers are becoming more competitive in Australia particularly Sydney, this
can be attributed to the increasing population and immigration into the city. Though there are
many child care centers in the region, there is still room for exploitation due to the huge number
of people living in the region. (Weisner, 2015). There are different styles used by the care centers
but the biggest style is one that is commercially run. Such a style is typical of a corporate charter
centre. The facilities are not only regional but also national. Currently, the leading child care
centers in Australia account for almost 20% of the total market share for child care centers.
There are other facilities that are both owned and run locally in that region. There are well-

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established child care centers that can host up to 500 children, the locally run centers have an
overall maximum of 300 children(McKeon, 2016). As already stated, there is a high competition
in the business and thus a competitive market. There are two strategies that happy child care
organization intends to use in order to have a competitive advantage. First and foremost will be
the pricing policy, the organization intends to reduce the prices by 10-15% as compared to the
current commercial childcare organizations in Australia. The second strategy that will be used is
extraordinary customer care. These two strategies will form the benchmark for attaining
competitive advantage over the opponents(Wiltz, 2014).Centralization of the customer in the
business will play a key role in the market and it will be infused in all the employees of the
organization. The organizations will also invest in its employees for thorough training and
consequently turn them into the best service providers. The employees have the biggest role to
play in creating a reputable name for the organization, that is the sole reason why a lot will be
invested in their training(Evans, 2014).
Customers
Happy childcare will also concentrate on two types of customer segments. First will the
full-time working couples. These customers are projected to make up to 80% of the total number
of kids in the centre.This group of customers is currently growing at 25% with a potential of over
100 customers in a short radius from the organization's premises( "The Cost of Child Care"
single mother guide, 2017). The other group will be the customers who only bring their children
to the centre periodically, these parents only bring their children to these centers only when there
is need. For this group, the rate of customer growth is estimated to be at 20% with over 100
potentials families(Yazejian, 2014).

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Management plan
Two specialists in the child care industry will be hired and they will lead the management
team at the site. These managers are expected to have marketing, management and financial
background in the industry or else they will be given a training course prior to the start of the
work(Iversen, 2016).The organization will definitely be the best service provider within the next
3 to 4 years. To be precise, the organization is expected to hit a profit of $674,000 within the
next three years. With the use of outstanding customer services, seasoned management teams,
and properly-priced services. The organization will gain the market portion and also build a
name as the premier childcare provider(Cohn, 2014).
The mission of the organization
Happy child care center stands to offer secure and safe childcare every time.To achieve
this, the personnel in management will have to provide essential and close personal attention, this
will further be emphasized by hiring enough task force in order to reduce the number of children
on one instructor(Dearing, 2014).
Objective/goals of Happy Kids Child Care organization
To offer a peaceful and holistic atmosphere for the development and growth of the
children in the region (Sydney).
To make childcare information and subsidy resources available to the customers.

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To carry out research about the importance and the costs that are involved in childcare
centers.
To advocate for an increase in the care given to the children starting on a local basis, and
nationally. In this way, the increasing cases of child abuse will be reduced and consequently
eliminated. Child abuse is commonly done by the housekeepers.
To provide information and consultation to different organizations, policymakers, and
agencies that are interested in the improvement of the costs that are involved in childcare.
To make sure that quality care is provided to the children and that it is easily accessed.
To be an effective, viable and financially strong organization (Warren-Gash, 2015).
To create an effective and supportive infrastructure that matches future programmatic
expansion comprising equipment, capital and staff items(Nesti & Goldbaum, 2017).
Ways of attaining Success in the organization
The various ways of achieving success will include the following:
 Flexible hours
 Quality care
 Competitive pricing
 Maintain an untarnished name and a good reputability in the community.

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Organization Summary
The happy child care center is a new organization that will be controlled and run by a
professional in childcare. Extensive experience in the field will be that first qualification in the
job advertising process. On top of being experienced, it is important for the applicant to have
kept a good reputation while in service with clear referees(Dewar, 2014). The professionals will
also be tasked to deal with management, finance, and administration of the organization.
Action plan
To meet the objectives of the organization, teamwork will be used as a key tool. Since the
organization intends to hire highly skilled and experiences workers, it will be quite easy for the
team to learn from within themselves. Bringing workers with different skills in handling children
will also be considered of crucial importance. It is after the organization puts in place a proper
workforce that it will be able to execute its plan and achieve its objectives. Management of the
employees will also be done as efficiently as possible. Any complaints that will arise from the
clients will be received with open hands and dealt with accordingly, this will help the
organization tohave a good reputation in the public and thus achieving one of its objectives. To
increase the number of clients in the organization, advertisements, corporate social
responsibilities and discounts are the strategies that the company intends to use to achieve that.
Organization Ownership
The franchise will be established as a Non-governmentalorganization (NGO) that will be
run by its sponsors and founders.

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Starting Summary
The founders of the organization will deal with the daily operations and also collaborate
with the other workers to make sure that the business runs smoothly(Nesti & Goldbaum,
"Infectious diseases and daycare and preschool education", 2017). The start-up expenses are
expected to reach $3,000.00 (this includes, legal costs, advertising, and other related expenses).
The business will also require an additional of $67,000.00 at the start.
Figure 1 shows the expenses at the start of the business

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Figure 2 shows the funding at the start

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Figure 3 shows the requirements at the start

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Figure 4 shows the assets at the start

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Figure 5 shows total liabilities, total planned investment, and liabilities
Services
The organization intends to offer both educational and childcare services for the children
aged one to six and not more than seven years. The official hours of service will range from 6:30
am to 7:30 pm. However, provisions will be put in place to rescue the children whose parents
may not be able to turn up late in the night. Such children will be given a chance to sleep at the
promises of the company at an extra free as agreed with the client. The organization intends to
provide the best accommodation services to such children(Tong, 2014).

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Organization Locations and other amenities
The operations of the organization will be based in Sydney, the capital of Australia. The
facility will have 13000 square feet house constructed in a silent and calm residential
neighborhood. Security and safety will be key factors while setting up the facilitiesThe house
will be surrounded by a perimeter wall so that children may not keep on wandering. The yard
will contain entertaining toys, leaner materials and a well-set sandbox(Folbre). The house will
help in the preparation of the meals, sleeping for thosechildrenwhose parents work overnight,
rainy season activities and also keep books that could be used to entertain the little
children(Schönpflug, 2016).
Market Analysis
Happy child care business organization is the kind of business that is increasingly
becoming useful to invest in given the rate at which the world is growing. Many families depend
on two incomes and this has stressed the need to have more child care centers to take good care
of their children. This can be seen with the number of centers in the region, over 90 child care
centers, such a business is lucrative with a high client base(Erel O, 2015). Therefore, there is
absolute confidence that child care centers need to be established in the region to cater for the
increasing demand. However, it must be of high quality(Onion, 2017).
Market Dissection
The happy child care center is interested in meeting the demand of the people living in
Sydney and also help the little children who could be dumped on the streets by unserious parents.
The children will be taken inflexibility on either a part-time (job-sharing) or a whole-time
basis(Calderon, 2014).

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Full-Time Working Couples
The organization further intends to start a large full-time and daily client base that will
help in establishing a healthy and unswerving revenue so that the business can become more
stable. Relation with the customers is of extreme importance and it is vital to keep the parents
happy and grateful so that they may get the interest of keeping the children within the daycare
center (Staab & Gerhard, 2015).
Part-Time Workers and Drop-ins
Drop-ins and job-sharing employees make 20% of the total revenues. Though this kind of
market may not be core, it is vital to have sufficient flexibility while handling the secondary
market to raise more revenue for the business.
Figure 6 shows market analysis

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Figure 7shows market analysis

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Targeted Market division Strategy
The targeted market for the organization is the whole-time working couples. Referral
marketing is an important marketing strategy that must be utilized.It is important to maintain and
further enhance the organization's strategy so as to increase the overall market share of the
targeted market(Rogoff, 2017).
Market scheme
With the fluctuating levels of inflation, it is crucial for families to have at least two
sources of income if they are to survive. Fortunately, this increases the need for childcare
facilities in the region. It is unlikely that the trend will be turned within the near future and
interfering with the current market(Lee & Greig, p. 2018).
Service organization Analysis
As mentioned before, the business is lucrative. However, the level of care given to the
children is not of the desired quality. The industry is divided between commercially, large,
smaller and locally run centers.The main competition basically lies in the smaller centers.The
organization is convinced of its success, this is due to the aforementioned skilled and
experienced managers that will be in charge of the organization directly. The care staff that will
be employed will also provide unmatched services(Knight, 2017).

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BuyingandCompetitionPatterns
Despite the fact that there are childcare providers within the region but these are all
overcrowded and end up providing fake services. The majority of the market is dominated by
large commercial centers, this is because of the better reputation that they have created for
themselves. To meet the competition that is involved in the business, the organization will
provide a lower staff: child ratio, this will be eye-catching to most of the parents(Blaiklock,
2018). The childcare levels will also be reduced by a range of 5-15% which is way below the
average of the existing organizations.
Implementation Strategy
The organization will further succeed through offering the children with a secure and safe
environment and most importantly closer personal attention to the little children. The
organization has duo-sided goals which include making it safe, preparing the children for better
education and giving fun to the children(Onion, Your Child Care Conundrum Is an Anti-
Communist Plot, 2014).
Competitive advantage
The organization intends to obtain all the necessary certifications and the required
licenses. The organization will carry out a pre-hire background to make sure that the right
individuals are hired for the advertised jobs. Having the best employees will provide a
competitive advantage for the organization ("Star Rated License: Program Standards", 2014).

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Sales approach
The organization hopes to make significant profits through proper care of the children.
Though the company offers free services to the street little children and also charges little money
from the clients, it intends to make profits since efficient advertising will be carried out. It is
estimated that the organization will double its clients every six months, this will happen in the
firsteighteen months( "Missouri Licensing Standards for Day Care Centers Homes, 2014).
Sales Forecast
As indicated from the table below, the estimated sales are estimated at $262,000.00 in the
1st year and $515,000.00 in the second year and then $674,000.00 in the third year of
implementing the plan.
Figure 8 shows monthly sales

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Figure 9 shows sales per year

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Figure 10 shows total unit sales

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Figure 11 shows the sales forecast
Management brief
Two principles with unquestionable credentials will be employed to over the
implementations of the operations within the child care center. This will benefit the organization
in two basic ways;
 The experience will attract more clients to the organization
 Customers will be attracted by previous employers.
Both principals will use their extensive skills in marketing, management, and sales in the
general running of the business. They will also offer administration and financial services in the
organization (Cerbasi, 2014).

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Personnel strategy
As shown from the table, the organization intends to make investments in the personnel
department, this will be done gradually within three years of starting the business. The
investments will be done keeping in mind the clients in the desire of the services.
Figure 12 total unit sales

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Financial Plan
As the starting capital, the organization expects a donation of $70,000. This will provide
the biggest part of the necessary financing at the starting of the organization.
Break-even Analysis
This is based upon the sales madein the first year by the units and expenses, the average
of these sales is considered. They are presented as fixed costs, per-unit cost, and per-unit
revenue. These assumptions are used in estimating the real risks, this conclusion is derived from
the conservative nature of the mentioned assumptions.
Figure 13 shows the total even analysis

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Figure 14 shows the break-even analysis
Projected Profit and Loss
From the graph below it can be observed that the organization has expected to have
started making profits within the first three years. Based on the analysis provided above, this
feasible.

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Figure 15 shows monthly profits to be generated by the organization
Figure 16 shows profits to be generated by the organization every year

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Figure 17 shows the projected flow of losses and profits of the organization

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Figure 18 shows the organization's expenses

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Projected Cash Flow
This includes the expenses that are clearly helpful in the running of the business as it
strives to generate enough cash flow to meet the organization's objectives and support the
operations.
Figure 19 shows the projected flow of cash

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Figure 20 the total cash spent
Projected Balance Sheet

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Figure 21 shows the projected balance sheet
Business Ratios
The business ratios for the planned years has been shown below. These are based on
standard industrial classification (SIC) code number 8351.

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Figure 22 shows a ratio analysis of the organization

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"Star Rated License: Program Standards". (2014).
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Calderon, G. (2014). "The Effects of Child Care Provision in Mexico". Mexico.
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Erel O, O. Y. (2015). "Maternal versus nonmaternal care and seven domains of children's
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Onion, R. (2014). Your Child Care Conundrum Is an Anti-Communist Plot.

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Rogoff, B. (2017). Child Rearing in Families and Communities.” The Cultural Nature of Human
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