Detailed Business Plan: The Toddler Warehouse Childcare Services

This document presents a comprehensive business plan for The Toddler Warehouse, a full-service childcare and development center catering to toddlers aged three to five years. The business targets dual-income professional families seeking high-quality childcare services with a focus on early childhood education and development. The plan includes an executive summary, market analysis, competitive analysis, description of services, management team overview, and detailed financial projections, including profit and loss statements, balance sheets, and cash flow statements. It highlights the company's competitive advantages, such as specialized training for teachers and an intertwined learning system. The plan also outlines startup costs, funding sources, and key assumptions driving the financial forecasts. The goal is to provide the best possible childcare, attract and retain clients, and exceed customer expectations, emphasizing the importance of early education and nurturing care for young children.

Introduction
Opportunity
Problem
Our children's education must begin sooner and earlier. The educational system is in disarray.
Those who have the financial means to engage private tutors and teachers to assist with their
children's education should do so.
Solution
The Toddler Warehouse is a full-service child care and development center for toddlers aged
three to five years old. The Toddler Warehouse will cater to the higher echelon of the market:
professional parents with two incomes. These parents are often concerned about their children's
development and will be ready to pay to have their children attend the best facilities available.
EXECUTIVE Summary
Market
Toddler Warehouse will provide child care and development for children aged three to five
years. The Toddler Warehouse will cater to dual-income professional families that are unable to
care for their children throughout the day due to job responsibilities. The Toddler Warehouse
will cater to families that want more than just babysitting; they want their children to be engaged
in a program that promotes the development of a variety of abilities, such as socializing, arts and
crafts, big muscle group workouts, reading, numbers, and so on. Professional parents, who are
naturally ambitious, are often eager for their children to progress and are prepared to pay for the
greatest development care services for their children.
Competition
In the child care sector, The Toddler Warehouse will compete. There are firms at all levels, from
simple baby sitter services to competitors of The Toddler Warehouse, in this market, which is
rather vast and populous. There are services that are available during normal business hours as
well as services that are available at night and in the evening. There are scheduled services but
no drop-off services for reservations. Many parents make decisions based on price, quality, and

gut instinct. The Toddler Warehouse thinks that the key to success is to 1) focus on a small
percentage of the market and 2) target a rising segment of the industry.
Why are we here? (goal)
The Toddler Warehouse's goal is to provide the best child care possible. We exist to bring in and
keep clients. Everything else will fall into place if we follow this principle. Our services will
exceed our consumers' expectations.
Opportunity
The Issue and the Solution
A Problem to Be Solved
Our children's education must begin sooner and earlier. The educational system is in disarray.
Those who have the financial means to engage private tutors and teachers to assist with their
children's education should do so.
Our Approach (product)
The Toddler Warehouse is a full-service child care and development center for toddlers aged
three to five years old. The Toddler Warehouse will cater to the higher echelon of the market:
professional parents with two incomes. These parents are often concerned about their children's
development and will be ready to pay to have their children attend the best facilities available.
Market
Size and Segmentation of the Market
The Toddler Warehouse is aimed at a specific demographic: middle-to-upper-class professional
families with two incomes. Both parents work in this set of households, preventing them from
raising their children throughout the day. This group has the financial means to pay for child care
and is ready to pay a bit more for a higher quality of service.

This client sector has already started teaching complex ideas to their children, such as reading,
singing, and socialization. The Toddler Warehouse will continue to improve the talents of the
youngsters.Typically, this consumer group consists of two working parents. This would explain
why the parents 1) have the financial means to pay for more advanced child care and 2) have
high expectations for their children's education and growth.
Competition
Alternatives Currently Available
In the child care industry, there are several rivals. The Toddler Warehouse will only list direct or
somewhat direct rivals, leaving out the plethora of other service providers who provide some
form of child care. The following are direct competitors:
Child care centers that are well-established and frequently franchised. These are usually larger
establishments that provide care to people of all ages. Typically, the number of children served is
rather considerable. The child care is adequate, albeit a little impersonal due to the vast size.
Child care in a small, home-based setting. These rivals are folks that run a child care business
from their home. The quality of these varies greatly; some are excellent, while others are not.
Medium-sized businesses. These are mostly privately owned establishments. Some of these will
work with people of all ages, while others will focus on a specific age group.
Our Benefits
The Toddler Warehouse has a two-fold competitive advantage:
Specialized training– The quality of the facility is only as good as the teachers and helpers that
work there. With this in mind, The Toddler Warehouse offers a comprehensive training program
that all instructors and helpers must complete before they can teach the Toddler Warehouse's
specialised programs for children aged three to five. Employees must complete a week-long
intense training program before being authorized to work with the youngsters.
Traditional toddler learning programs for this age group focus on certain features and only train
on one trait/skill at a time. While this method is effective in reinforcing the skill, it is frequently
difficult for the youngster to understand the interrelationships between the many talents. As a
result, the youngster may acquire the skill but has trouble implementing it when confronted with
various inputs. When a youngster is unclear of what to do as a result of various inputs and these
several talents that they have learnt on their own, they tend to shut down. Matt's Master's thesis
was centered on Intertwined Learning Systems, which teaches skills jointly rather than

separately. Matt's study backs up the claim that when the abilities are taught simultaneously, as
they would be in real life, the youngsters are better able to integrate the new work into their skill
set.
Company
Overview
Structure & Ownership
Matt Ernal will be the founder and owner of the Toddler Warehouse, which will be based in
Oregon.
Team
Management Group
The Toddler Warehouse's creator and owner, Matt Ernal, will be in charge of day-to-day
operations. Matt graduated from the University of Oregon with a bachelor's degree in English.
Matt was unclear about what he wanted to do after college, so he went to Indonesia and taught
English for three years. Matt lived with a local family for the first year. Matt looked after the
family's two children in return for accommodation and board. Matt found this quite rewarding,
despite the fact that he had never worked with children before.
Matt was considering a career in teaching when he returned to the United States. Both the
English lessons and caring for the young children in Indonesia were a pleasant experience for
him. Matt eventually decided to pursue a profession teaching young children as a result of his
interactions with them. Matt enrolled in the globally known Master of Education Program at
Western Oregon University to study child development. Matt felt confident in his talents after
graduating and believed that the independence of owning a business would be appealing. He
bought a house for the facility and has been hard at work building it ever since.

Personnel Table
2018 2019 2020
Matt $43,200 $44,496 $45,831
Teachers (1.28) $40,000 $48,960 $99,878
Teaching Assistant (1.17) $19,200 $39,168 $79,902
General Office help $36,000 $36,720 $37,454
Totals $138,400 $169,344 $263,065

Financial Plan
Forecast
Key Assumptions
Our key assumptions:
● Kids need to have a place that caters to the way they learn
● Kids need somewhere that teaches them life skills
● Education starts at a very young age
● Parents need somewhere safe and nurturing to leave children while they finish their
workday.
Financing
Use of Funds
The Toddler Warehouse’s start-up costs include:
● Legal: $1,000
● Stationery etc: $100
● Brochures: $350
● Art supplies: $150
● Kitchen supplies: $200
● Cleaning supplies: $100
● Medicine kits: $100
● Matts and pillows: $150
● Total $ 2150
Sources of Funds
Our founder will invest $85,000 to get the operation up and running.

Statements
Projected Profit & Loss
2018 2019 2020
Revenue $266,700 $330,000 $402,000
Direct Costs $5,334 $6,600 $8,040
Gross Margin $261,366 $323,400 $393,960
Gross Margin % 98% 98% 98%
Operating
Expenses
Salaries & Wages $138,400 $169,344 $263,065
Employee Related
Expenses $27,680 $33,869 $52,613
Rent $30,000 $30,000 $30,000
Licenses $1,440 $1,440 $1,440
Utilities $1,800 $1,800 $1,800
Insurance $3,600 $3,600 $3,600
Marketing $18,000 $18,000 $18,000
Total Operating
Expenses $220,920 $258,053 $370,518
Operating Income $40,446 $65,347 $23,442
Interest Incurred
Depreciation and
Amortization $2,800 $2,800 $2,800
Gain or Loss from
Sale of Assets
Income Taxes $5,647 $9,382 $3,096
Total Expenses $234,701 $276,835 $384,454
Net Profit $31,999 $53,165 $17,546
Net Profit/Sales 12% 16% 4%
Projected Balance
Sheet
Starting
Balances 2018 2019 2020
Cash $49,250 $97,888 $150,866 $171,444
Accounts
Receivable $0 $0 $0
Inventory

Other Current
Assets
Total Current
Assets $49,250 $97,888 $150,866 $171,444
Long-Term Assets $33,600 $33,600 $33,600 $33,600
Accumulated
Depreciation ($2,800) ($5,600) ($8,400)
Total Long-Term
Assets $33,600 $30,800 $28,000 $25,200
Total Assets $82,850 $128,688 $178,866 $196,644
Accounts Payable $259 $256 $262
Income Taxes
Payable $4,190 $2,346 $772
Sales Taxes
Payable $9,390 $8,250 $10,050
Short-Term Debt
Prepaid Revenue
Total Current
Liabilities $13,839 $10,852 $11,084
Long-Term Debt
Long-Term
Liabilities
Total Liabilities $13,839 $10,852 $11,084
Paid-In Capital $85,000 $85,000 $85,000 $85,000
Retained Earnings ($2,150) ($2,150) $29,849 $83,014
Earnings $31,999 $53,165 $17,546
Total Owner’s
Equity $82,850 $114,849 $168,014 $185,560
Total Liabilities &
Equity $82,850 $128,688 $178,866 $196,644
Projected Cash
Flow Statement
2018 2019 2020
Net Cash Flow
from Operations
Net Profit $31,999 $53,165 $17,546

Depreciation &
Amortization $2,800 $2,800 $2,800
Change in
Accounts
Receivable $0 $0 $0
Change in
Accounts Payable $259 ($3) $6
Change in Income
Tax Payable $4,190 ($1,844) ($1,574)
Change in Sales
Tax Payable $9,390 ($1,140) $1,800
Net Cash Flow
from Operations $48,638 $52,979 $20,578
Cash at Beginning
of Period $49,250 $97,888 $150,866
Net Change in
Cash $48,638 $52,979 $20,578
Cash at End of
Period $97,888 $150,866 $171,444

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