WUG Group: Detailed Business Plan for Childcare Centre in Malta

This project presents a comprehensive business plan for the WUG Group, a proposed childcare center in Malta. The plan begins with an executive summary and table of contents, followed by a detailed company profile outlining the business overview, history, vision, mission, management structure, legal structure (LLC), location, strategic alliances, and goals. A thorough market research section analyzes the industry situation, local market, key success factors, and a SWOT analysis. The marketing strategy includes positioning, competitive advantages, product presentation, pricing, and promotional activities. The operations and finances section covers location, initial capital expenditures, legal aspects, human resources, processes, risk assessment, and financing. The plan concludes with a summary of the proposed business venture, its potential, and its importance in the context of Malta's evolving educational landscape. The document references multiple academic sources and includes appendices for supporting information.

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NEW BUSINESS VENTURE
WUG Group (Watch Us Grow Childcare Centre)
Student’s Name:
Institution

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Executive Summary
The daily duties in the present parenthood era are becoming complex and many people become
committed with so many duties to the point that child care has been neglected. People and
particularly in Malta have a multifaceted life paving way for roles to care givers when child care
in concerned. The increasing need to dedicate children to care givers in Malta as well as the
initiative from the government to facilitate care giver centers to offer child care prompted Ryan
Xerri and Alena Abela Xerri to think of a business venture in the line of child care. The report
give a plan necessary for the implementation of WUG Group venture in Malta detailing every
step and requirements needed. The aspects of business review, market research, marketing,
resource management and finances get illustrated and a conclusion is given in the end.

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Table of Contents
Executive Summary.....................................................................................................................................2
Table of Contents........................................................................................................................................3
1.0 Introduction...........................................................................................................................................5
2.0 Company Profile....................................................................................................................................7
Business overview....................................................................................................................................7
Company History.....................................................................................................................................7
Vision and Mission..................................................................................................................................8
Management and Organizational Structure.............................................................................................8
Legal Structure - Limited Liability Company (LLC)................................................................................8
Location...................................................................................................................................................9
Strategic Alliances...................................................................................................................................9
Goals and Objectives.............................................................................................................................10
3.0 Market Research..................................................................................................................................10
Industry Situation Analysis....................................................................................................................10
The Local Market..................................................................................................................................12
The Key to Success................................................................................................................................13
The Employees...................................................................................................................................13
The Equipment...................................................................................................................................13
The Sleeping Routine.........................................................................................................................13
The Food...........................................................................................................................................14
Safety.................................................................................................................................................14
SWOT Analysis......................................................................................................................................14
Strengths............................................................................................................................................14
Weaknesses........................................................................................................................................14
Opportunities.....................................................................................................................................14
Threats...............................................................................................................................................15
Target Market........................................................................................................................................15
4.0 Marketing............................................................................................................................................16
The Positioning......................................................................................................................................16
WUG Group competitive edge...........................................................................................................16
Specialized training...........................................................................................................................16
Innovativeness in learning.................................................................................................................16
Product Presentation.............................................................................................................................17

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Pricing Strategy.....................................................................................................................................17
Marketing Strategy................................................................................................................................17
Promotions........................................................................................................................................17
Strategic Alliances.............................................................................................................................17
5.0 Operations & Finances........................................................................................................................18
Location.............................................................................................................................................18
Initial Capital Expenditures...............................................................................................................19
Legal..................................................................................................................................................19
Human Resources..............................................................................................................................19
Process/ production...........................................................................................................................20
Risk Assessment.................................................................................................................................20
Financing..............................................................................................................................................20
Conclusion.................................................................................................................................................20
References.................................................................................................................................................22
Appendices................................................................................................................................................24

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1.0 Introduction
Malta is an island, densely populated and is a member of European Union (EU) of which
it became a member in 2004. The country's population is approximated to be 452,215 with
population density of 1,431 habitats per km2. This is on the higher side as compared to countries
of European Union.
Presently, there are educational reforms undertaken where the ‘streaming’ model is going
to be replaced with mixed-ability classrooms. This is going to present numerous opportunities in
addressing many challenges that are present in the country. The need for education has greatly
gone up. In 2014 the population of 23 years to 54 years registered 54% interest in education and
schooling and 8.6% for people in the range of 55 years and 74 years showing that the young
people are getting to like education. (Van der Voet, 2014),
There are complaints received from parents, learners and teachers regarding the quality of
education in Malta. This created a concern and hence the adoption of the mixed-ability model on
the ground that the model lacked focused individually-tailored education (Cornelissen and
Werner, 2014).
This gained strong confrontation that instructors cannot encourage an education system
which supports the most grounded people in the society family, and denies the weakest to
realizing and obtaining their education right. Therefore no education system is favorable to any
particular people for all citizens. In addition, there are signs that negative education performance
is nearly connected with financial foundation and training to the tertiary level is likewise firmly
associated with the instructive foundation of parents.
One other thought concerns the resources made accessible to the education system to
guarantee its prosperity. Mixed ability classrooms in themselves cannot ensure standard

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instruction, unless the quantity of instructors per student is radically brought down from its
present proportion. Smaller classrooms with more instructors are part of the model requirement
needed. Furthermore, it includes greater interest in schools, better working conditions for
educators, and more strategic and resources support in a consistent manner.
The problem of the education in Malta is not only aligned to the reform of the education
system but also the infrastructure offered by the government. There is in ability of the
government to cope with the increasing demand for education and there are arguments for home
schooling and school environment. It is point out that schools are better since they present an
amble environment where learning will not only take place but allows inculcation of social skills
to the learners. With this understanding and the need for educational quench, parents in Malta
prefer taking their children to school irrespective of the challenges encountered and this applies
to all children from day care to upper classes.
The day care is a great concern since this is the beginning of education life of the child
and government has put more emphasis. In order to solve these issues, the government of Malta
provides free childcare education to parents who are working or are in school. These services are
provided through the services of the government or through care centers that are registered by
the government. It is through this opening that we saw an opportunity to start a day care center
in Malta.
2.0 Company Profile
Business overview
The business venture will be WUG Group (Watch Us Grow Childcare Centre). The
organization will be based in Malta. Education system in Malta is under transformation and the
stakeholders in the education sector are4 concerned of the need for quality education. The WUG

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Group is set to be part of this transformation in taking education in Malta to a different level. The
organization is a start-up and is owned by Ryan Xerri and Alena Abela Xerri. The company is
going to invest in kindergarten schools and childcare facilities. As part of the childcare initiative
set by the government, the WUG Group is going to form part of the government free childcare
scheme. The business is going to be a limited partnership because of the two owners. The reason
of adopting partnership is due to its inexpensive, simple, there is shared control and
management, sharing of losses, present more opportunities for planning, easy to dissolve, and
requirements for reporting are few. The WUG Group offers solution by providing services to
children ranging from 1 year to 6 years with the aim of caring, developing the skills of young
children through learning of new skills as well as strengthening skills already learned. The
program will run only during the day.
Company History
The WUG Group venture got conceived through the urge to give back to Malta people.
The turbulences in the education system reforms that have not stabilized compelled the owners to
look into the young children whose life is yet to be defined. At this tender age, young children
require proper direction and guidance so that a strong educational pace is set while still young.
Therefore history of the organization gets placed on building the lives of young children with
emphasis of making better people for tomorrow.
Vision and Mission
The vision of WUG Group is to provide distinctive quality services to the customers for
good growth of young children.
The mission of WUG Group is to be a childcare centre of excellence in meeting the
dynamic needs of young children for better tomorrow.

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Management and Organizational Structure
According to Van der Voet, (2014), the performance of the organization depend on the
structure arrangement in issues relating to line of authority and Cornelissen and Werner (2014)
supports that framing in an enterprise contributes much on its performance. Therefore, the
management of WUG Group will be structured to follow the decentralized functional system of
management where the line of authority is not centralized to one position but to spread across all
the units. The WUG Group will have the CEO at the top, followed by the directors, then
managers/principles/head teachers) of every unit, and then the lower level of employees that will
constitute the teaching and sub-ordinate staff (Appendix 1).
Legal Structure - Limited Liability Company (LLC)
The LLC framework has the individual risk security advantages of an enterprise without
having all the required regulatory and administration methodology. Tin order to acquire LLC
status, WUG Group will apply to a state by presenting an application with a yearly charge
(Haigh, Kennedy and Walker, 2015). With the state-affirmed LLC, there will be an agreement —
organization laws. These will be the general principles for WUG Group administration. By and
large, the state's agreement is agreeable, particularly in the event that WUG Group is a solitary
part LLC (Welch et al., 2016). The LLC structure gives a separate entity from owners’ personal
assets and these assets will not get attached in case of issues with the LCC Company. The LLC
company have all it legal instruments independent from the owners (Haigh, Kennedy and
Walker, 2015). WUG Group will review and model the operating agreement to ensure it fits
WUG Group circumstance with an understanding and agreement among the co-proprietors.

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Location
According to Burns (2016), the location of a business plays a critical role in strategic
planning as well as putting clients at a very convenient point of attraction thereby permitting
rapid growth. The WUG Group will be located in Malta at the superb of the city where there is
cool, quite serene environment suitable for learning. The reason for selecting the location is
because there is accessibility in terms of transport system and therefore customers will have no
difficulties in getting to the place. Additionally, the location provide a spacious ground where
child can play and the company can have space to put up children play facilities and for
expansion.
Strategic Alliances
As per Brouthers, Nakos and Dimitratos (2015) strategic alliance is an association
between two organizations coming together in order to accomplish certain vital objectives in
cases where there is no capacity to accomplish individually. The accomplices keep their status
free for any partner, share the benefits and mechanism over the relationship, and keep obligations
to the relationship until the point when it is ended. The alliances are established for the purpose
of entering to international market situated in various parts and where a single entity cannot
venture alone. The benefit is the relationship is the learning of new skills, cost sharing, creation
of competitive advantage through combination of resources and skills and improve the influence
and adopting into the global market (Jiang et al., 2013).
At the beginning WUG Group is going to enter into strategic alliances with any
organization because in order to concentrate on penetrating into the Malta local market and
gaining a big market share. Additionally, when the WUG Group has established well and

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amassed enough resources, they will put into consideration the option of venturing into foreign
markets into countries like Libya, Tunisia etc.
Goals and Objectives
The WUG Group goal is to establish a childcare centre the endeavor to provide
distinctive quality services to the customers for good growth of young children.
The objective is to strive for excellence with the focus of meeting the dynamic needs of
young children for better tomorrow.
3.0 Market Research
Industry Situation Analysis
The political situation in Malta is stable and is permitted by the parliamentary democracy
dominated by two parties. The amble politics fosters the business investment. The political
system focuses on drawing in external direct ventures and the foundation of a protected, steady
and open business condition; a contemporary as well as transformed economy in light of global
services; safe external working condition (Magnússon, 2013).
The tax administration of Malta is extremely adaptable in spite of being multifaceted. For
instance, in its un-truncated situation, the Maltese corporate assessment remains at 35% - which
is the most elevated in Europe. Nonetheless, a few differential reductions on workforce, research,
and taxation measurements significantly diminish the expense and are reduced to 5%. This is so
on the grounds that the aggregate tax discounts is not supposed to surpass 6/7ths of the corporate
expense base rate (Vella, 2014).
The Maltese workforce is profoundly talented and profitable. All Maltese originate from
bilingual instructive systems and are conversant in English with cutting edge learning skills of
other European languages. The island has an incredible capacity to give a staff of exceedingly

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qualified experts at all levels, from specialists to plant administrators. The elevated expectation
of living likewise guarantees that it is difficult to pull in talented work from abroad (Grech,
2015).
The monetary condition of the island is incredible and has shown from its strength, and
the capacity to flourish. The Government has built up a system for long term and manageable
financial achievement, through the use of Vision 2015 and beyond program, where key areas
with high potential are the focused on development. The business sections that have significant
action incorporate banking, finance administration, investment, management of trust and venture
holding. The Maltese laws permit different types of organizations to exist and operate business in
Malta (Briguglio, 2017).
The international organizations focused on putting resources in the country and settling
operation are taking the advantage from the twofold tax collection treaties entered with 58
nations which is a blend that enables investors to achieve an effective financial condition. These
laws consider the global holding organizations. Presently, there are in over 200 organizations
from outside and for the most part comes from the EU who have interest in putting their
resources in Malta; some are currently operating from Malta e.g. Lufthansa, Playmobil, Baxter
among others (Georghiou et al., 2014).
Currently, the ICT in Malta is a standout among the most refined and dependable in
Europe. The country has extraordinary innovative infiltration figures with the PC clients
remaining at 16.6% for every 100 occupants, Internet clients at 70% for every 100 tenants and
phone clients at 54.8% for each 100 tenants. The cell phone entrance into the country indicates
42% which is an astounding increase (Borg, 2014).

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The standard of living in the country is excellent and gets attributed to the healthcare
system that is funded by the government. The index on human development is 0.839, an income
disparity of 14, and life expectancy of 79 years (Pace, Vella and Dziegielewski, 2016).
The per capita income of Maltese is approximated to be $33,215 which is on the higher
side among European nations. This figure, combined with the high populace thickness of the
island, put Malta to be an attractive area for setting up a business and create competitive and
creative products and enterprises because the purchasing power of the people is high (De Vries,
2013).
The country in general has suitable conditions for investment that if favorable for both
the local and the international enterprise that is supported by the government’s FDI coupled with
flexible taxation policies.
The Local Market
Malta's become the key area well positioned has made the island a standout among the
most calculated location globally. The nearness of the transportation frameworks and port offices
for cargo and travelers add to the global acknowledgment of this position. For example, the
nation has the biggest ship registry of the European Union and one of the biggest around the
world (Pace, Vella and Dziegielewski, 2016).
In the childcare industry, the market is growing rapidly because parents are getting time
to study and work thus paving way for the need of caregiver’s services as opposed to babysitters.
At Malta, the trend in the market for child care is growing due to the expanded usage of care
centres by parents. This is augmented by the lack of time for keeping children due to
commitments like work. While this pattern accelerates the requirement for more care services, it
likewise creates interest for centres that concentrate on the development of the child because