Entrepreneurship Course: Business Plan - Happy Child Care Organisation

This document provides a comprehensive business plan for "Happy Child Care," a new NGO aiming to offer daycare services for children under seven in Sydney, Australia. The plan details the organization's mission to provide secure and safe childcare as an alternative for working parents. It includes a market analysis, highlighting the growing demand for childcare services due to increasing population and immigration. The plan outlines strategies for competitive advantage, focusing on pricing and customer care, and discusses the management structure, financial projections, and operational strategies necessary for achieving profitability and establishing a strong market presence. The plan also addresses marketing, service offerings, location amenities, and risk management to ensure long-term viability and success.

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Happy childcare organization Business plan
Name
Affiliation
Course
Date

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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