Child Care Business Plan: A Feasibility Study, 2019 Term

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Central Queensland University, Australia
Term – 2019
MGMT20143 ASSIGNMENT 2
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Executive summary
The report will be prepared on the idea of daycare business. The business will be based on the
idea of child care services to customers. The daycare business will take care of children from the
age of 6 months to the age of 10 years. Nowadays people are so busy in their jobs hence the main
concern of the parents is to proper care of the children in the working hours. The business idea is
to take care of the children in the business hours i.e. 10 to 7. The report will consist of the risks
and key success factors involved in the proper execution of the business idea.
Source: (Melissa Thompson, 2017)
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Contents
Introduction.....................................................................................................4
Customer problem...........................................................................................5
Clients benefit..................................................................................................6
Proposed business model................................................................................7
Key interrelationships in the business model:.................................................9
Critical success factors..................................................................................10
Critical risks and assumptions.......................................................................11
Overall feasibility of the idea.........................................................................12
Conclusion.....................................................................................................15
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Introduction
Daycare business is a business that cares a child or children at a time. The business aims at
taking care of children and providing services to them. The business idea will focus on the
overall development of the children. The purpose of the business is to take care of the children
when their parents and guardians are busy.in the report key success factors, interrelationship in
the components of the business model and risk involved in the business idea will be discussed.
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Customer problem
The customer problem is that the parents stay busy in their offices during working hours and they
do not take care of their children (Trimi & Berbegal-Mirabent 2012). The day care business will
help out the parents and guardians to concentrate on their job keeping their child in the day care.
Parents can do their work freely by keeping their child at day care. Some parents’ use the
services of day care purposely for the overall; development of the children. Day care assists the
children to enhance their physical and mental capability.
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Clients benefit
 Social and economic benefits for the parents: The day care services provide social and
economic benefits to the parents. The parents can earn money or concentrate on their job
freely.
 Safety and security of the children: Day care is safe for the children. The day cares have
to take the license from the government and the activities of the day care are supervised
by the government (Rosemann & vom Brocke 2015).
 The overall development of the children: The day care enhances the mental, physical and
social skills of the children. When a child stays together with the other children he learns
a lot from them. At the day care, all the children play together and that enhances the
physical growth of a child.
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Proposed business model
Key Activities: Key activities describe the main activities of the business. The key activities of
the business idea are health care services, social development of the children and other services
necessary for the development of the children.
Key Partners: in the business model key partners describes the alliance of the company with
other companies of retails, sellers, etc. wholesalers of toys and books will be the key partners of
the business idea.
Value proposition: safety, security, and development of the kids will be the value proposition of
the business idea.
Customer Relationships: Customers will be contacted through the calls and by taking their
feedbacks their complaints will be considered.
Customer segments: full time working couples and part-time working couples.
Key Resources: Human resources, high quality of services will be the key resources.
Channels: the channels for contacting the company will be application, emails, direct visit.
Cost Structure: The Company will make a high investment in the infrastructure and hiring of the
trained staff.
Revenue Streams: Revenues will be generated through the fees charged from the parents and
guardians.
Key Partners
 Retailers
 Wholesalers
 Doctors
 Manufactures
 Consultants
Key Activities
 Health care
services
 Social
development
of the children
Value Proposition
 Safety and
security of the
children
 An overall
development of
Customer Relationships
 Personal
assistance
 Advisory services
 Customer Service
Customer
Segments
Full time
working
couples
Part-time
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 Counseling the children working
couples
Key Resources
 Human
resources
 High quality of
services
Channels
 Application
 Email
 Website
Cost Structure
 infrastructure fees
 license fees
 salary paid to the staff
Revenue Streams
 Services Fees
 Consultancy Fees
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Key interrelationships in the business model:
The business idea of day care aims at taking proper care of children in the working hours of
parents. A business model consists of various components such as revenues, key activities, value
prepositions and so on (Pourabdollahian & Copani, 2017). Proper management of these
components is essential for the success of the idea. The business has to maintain a good
relationship with customers and partners. The business model should aim at achieving the
objective of the company. All the factors of the business model play an important role in the
success of the business idea.
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Critical success factors
 Competitive Pricing: Competitive pricing is another success factor. For long survival,
competitive prices are essential. The company will maintain competitive prices for
making a reputation and for generating plenty of profits (Eckhardt, 2013).
 Flexible hours: The timing of the day care will be flexible. The timings will be the
working hours so that maximum people will use the services of the day care.
 Safety of the children: The Company will focus on maintaining the safety and security of
the children.
 Untarnished reputation in the community: This is the main success factor, the business
will focus on building and maintaining an untarnished reputation in the community so
that it can cover the maximum market.
 Quality Care: The key success factors play a major role in the success of the business
idea. Quality care will be the key success factor of the company. The company will focus
on providing quality of services to the customers (Leviten-Reid, 2012).
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Critical risks and assumptions
 Health Risks: Health risk involves the health of children. The business needs to take proper
precautions to minimise this risk. It is the responsibility of the day acre to provide a healthy
environment to the children.
 Safety Risk: In the day care centre the safety of the children is the duty of the day care centre.
The children should be safe in the day care.
 Legal and licensing Risk: It is a very big risk for the day care centre. The company needs to
follow the rules and regulations. There are guidelines have been set by the government of the day
care centres. The company needs to follow the guidelines correctly (Gobble, 2014).
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Overall feasibility of the idea
Part1. Strength of the business:
Description Low Potential (-1) Moderate potential (0) High Potential (+1)
The grade to which the
idea:
.cracks a problem
Moderate
Timeliness of arrival to
the marketplace
Very timely
The possibility to which
the idea adds value for
its buyer and end user
High
The magnitude to which
the punter is satisfied
by competing for
products that are
already available
Moderate
Up to what level the
idea needs the
customer to alteration
their basic practices or
behaviours
Substantial changes
required.
Total -1 0 +2
Part 2: Industry-related issue
Description Low Potential (-1) Moderate potential (0) High Potential (+1)
Number of competitors few
Level of the industry life
cycle
Growth Phase
The growth rapidity of
the company
Strong growth
significance of the
business's goods or
amenities to the
customers
Would like to have
business operating
margins
Low
Total -1 0 1
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