Advanced Innovative Business Practice: Childcare Business Plan

This report provides a comprehensive business plan for a childcare center in Australia, analyzing the industry's outlook, growth drivers, and key facts. It identifies a unique selling proposition: a 24-hour daycare service to meet the demand for flexible childcare options. The report outlines the business's target customer, product offerings (safety, learning programs), pricing strategy, location, and promotion methods. It emphasizes the need for flexible hours and affordable services. The report also includes references to industry reports and academic journals, supporting its analysis of market trends and the competitive landscape. The strategies proposed focus on affordability, quality, and convenience to capture a segment of the growing childcare market in Australia. The plan also addresses the need for flexible working arrangements, a key driver of demand.

Advanced Innovative Business Practice
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Table of Contents
AUSTRALIA CHILDCARE INDUSTRY OUTLOOK...............................................................................3
KEY FACTS AND FIGURES.......................................................................................................................3
GROWTH DRIVERS....................................................................................................................................4
WHY THE CHOSEN BUSINESS IDEA IS UNIQUE?...............................................................................5
BUSINESS STRATEGIES............................................................................................................................5
REFERENCES..............................................................................................................................................7
TABLE OF FIGURES
Figure 1 Childcare industry of Australia......................................................................................................3
Figure 2 Female Labor force participation rate............................................................................................4
Figure 3 Industry growth drivers.................................................................................................................4
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AUSTRALIA CHILDCARE INDUSTRY OUTLOOK
 Currently, Australia is experiencing a surge in demand for Child Care centres.
 Rising population, encouraged participation of female workforce and flexible working
practices are the key factors driven a strong growth for the industry.
 In 2010, there were total 5900 long day-care centres for the children all over the nation,
which grown up to 6800 which shows an impressive growth of the sector (Smith,
Swallow and Coyne, 2015).
 Unstoppable growth in the market demand by families with children below 14 years is
the key driver for industry growth with total revenue worth $12.4 bn. In future, industrial
sales are further expected to grow by 5.8% for 2017-2022.
KEY FACTS AND FIGURES
Figure 1 Childcare industry of Australia
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Figure 2 Female Labor force participation rate
Figure 3 Industry growth drivers
GROWTH DRIVERS
 Out of total population, $1.6 million are children equal to or below 12 years need
childcare facilities.
 Increasing labour participation rate and high flexibility i.e. part-time working, shift
working and others
 Extensive government support and assistance including encouraging women to go back
to work after giving birth to child, child care rebate and other child care benefit (Munro,
2016).
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 In Federal Budget 2015, governmental budgeted expenditures on childcare sector had
reported an increase by 18.5%.
 High staff-to-child ratio required under National Quality Framework (NQF) will increase
employment @ 15.2% by 2019-20.
 Consolidation of many companies
 Number of Child Care centre is anticipated to grow @ 3.1%
WHY THE CHOSEN BUSINESS IDEA IS UNIQUE?
Of course, there are number of formal childcare centres operating in the industry,
however, out of these, just few of them are delivering flexi-hour services. In such circumstances,
parents who are working on variable or non-standard working hour basis are struggling to find
such a centre that meets their requirements. Australian Institute of Family Studies (AIFS)
investigated the industry and found that there is strong demand prevalence for flexible day care,
extended operational hours, weekend care and school holiday care which is still remains unmet
due to lack of available options to parents (Child Care Services in Australia, 2017). Thus,
considering such gap, it is decided to establish a 24-hour day care centre to provide enough
flexible options to the people, which they are looking for. It will also provide flexibility to the
workforce through part-time and shift working practices, so that, they can balance their
professional and personal life easily. Besides this, FCCS (Flexible Child Care Study) found that
people who found flexi-day care feel are even unable to use their services because of too high
charges which they can’t afford, as a result, their demand remains unmet.
BUSINESS STRATEGIES
 Target customer: The planned venture will specially target working families with
moderate level of income. It will deliver services to all the parents either work on
standard working hour model or variable work hour basis.
 Product: The new venture intends to leverage strong relationship with the Australian
working families with our core offerings including safety & security, excellent learning
program and quality day care.
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 Pricing: In order to serve people with affordable flexi day care services, we will follow
an affordable pricing mechanism considering parent’s ability to pay and the minimum set
margin over cost.
 Place: The business will be domestically owned and nationally accredited centre that will
serve children equal to or below 14 years.
 Promotion: The business idea will be promoted through advertisement, website and
other online marketing channel.
 Positioning: Flexibility, strong safety protocols, professional credential and convenient location
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REFERENCES
Books and Journals
Smith, J., Swallow, V. and Coyne, I., 2015. Involving parents in managing their child's long-term
condition—a concept synthesis of family-centered care and partnership-in-care. Journal of
pediatric nursing. 30(1). pp.143-159.
Online
Child Care Services in Australia. 2017. [Online]. Available through: <
https://www.ibisworld.com.au/industry-trends/market-research-reports/health-care-social-
assistance/child-care-services.html>.
Munro, K., 2016. Boom time for Corporate childcare in Australia. [Online]. Available through:
< http://www.smh.com.au/national/education/boom-time-for-corporate-childcare-in-
australia-20161109-gslgx2.html>.
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