Two files attached. Business plan is about a Daycare.

Business Model and Strategic Plan Part II

BUSG - 2309

April 6, 2018

Lourdes Ramboa

Executive Summary……………………………………………………….………………………2

Business Description ……………………………………………………………………………...2

Mission…………………………………………………………………………………………….3

Keys to Success……………………………………………………………………………………3

Location…………………………………………………………………………………………...4

Market Analysis…………………………………………………………………………….…..…4

Target Market segment(s) ……………………………………………………………….………..5

Market Needs……………………………………………………………………………...………5

Market Size/Trends……………………………………………………………………..…………5

Legal Structure……………………………………………………………………………….……6

Sales Strategy………………………………………………………………………………...……6

Competitor Analysis………………………………………………………………………………6

Competitive Advantage………………………………………………………………………...…6

Marketing Plan………………………………………………………….…………………………7

Financial Plan……………………………………………………………….………..……………7

Start-up Funding……………………………………………………………………..……………7

Work Cited……..……………………………………………………………….…………………8

Business Plan

Executive Summary

Foxy Kids’ Daycare will offer a safe and stimulating environment for kids aged five months to ten years, and it will be run by a former educator in an elementary school (Foxy). Foxy Kids’ Daycare is going to be the fun, inexpensive/affordable alternative to all the daycares on all corners. By concentrating on an environment that offers hip, modern entertainment and education for the children, Foxy Kids’ Daycare will stick out from the competition of other daycare institutions and home-cares.

Our clients will be the cutting-edge dads and moms who care about offering their children a chance to advance and grow in a fast-paced, fun setting. We aim to market via the social media platforms such as Twitter, Facebook, and Instagram, as well as several independent restaurants and coffee services in the region. Local farmers and yoga studios will as well be a perfect setting for our good marketing campaigns (Aral 30).

We are seeking a first investment of $30,000 which would cover the startup prices of toys, arts and craft supplies, and books, along with the expense of securing the location as well as obtaining the appropriate insurance and permits.

Business Description

The children care provider industry has always been in a very high-demand because people are always procreating and will continuously require someone to take care of their kids. We are going to be offering that service to our customers, in an intimate, small setting that is pleasing to parents/guardians who have to leave their children. Besides, no parent would like to think of their children being only one of the many children in a crowd of kids, none of whom receives the attention that they deserve from the childcare provider.

Moreover, we can contend in this industry since we will provide something a bit different than the present norm. We are going to operate in a slightly small, home-based atmosphere, with a maximum of twenty children per day. We are going to have four workers per day, providing us with a ratio of 1:5 of caregiver to children.

The proprietor (Foxy) was in the field of elementary education for twenty-seven years, and we are going to hire providers who have an education or caregiving background. Guardians/parents who leave their kids with us are going to recognize that the kids are receiving exceptional care in this stimulating environment. The parents will recognize that at Foxy Kids’ Daycare, their kids are not only brightening their mind but also their soul.

Mission

Foxy Kids Childcare intends to offer secure and safe childcare at all times. Besides, close personal attention to all children is essential to offering a quality experience and understanding for all children; therefore, enough personnel will get hired to make sure that each child has proper supervision.

Keys to Success

The daycare’s success will comprise of:

1. Quality care

2. Maintaining an untarnished and reputable reputation in the society

3. Flexible hours

4. Competitive pricing

Location

Foxy Kids Daycare will offer its’ operations in Fort Worth. The facility will consist of approximately two-story building in a very rural area. This 2-acre yard will have to be fully fenced to make sure that nobody can come in or even wander away. Besides, the yard will have a sandbox, a playground set, a concrete area to play ball, and other safe and entertaining toys. The building will be used for rainy-day practices/activities, serving and preparation of children’s meals, and nap time. There is plenty of room on both sides of the facility for future growth.

Market Analysis

In this area, standard daycare can run anywhere ranging from $25-60 for a nine-hour day, with a babysitter/nanny costing almost twice the rate. Foxy Kids’ Daycare intends to provide the best price possible for the services that we offer while acknowledging that the services are excellent to the present product out there.

The fee structure is going to work as follows.

• The basic rate for the drop is going to be $6/hour, which makes a nine-hour day $54.

• Parents who schedule/plan at least twenty-four hours in advance will receive a dollar off in each hour

• Parents may buy `a weekly pass for $235 (a five-day week), which amounts to $47 every day.

• A monthly pass will be good for twenty visits where parents can get this pass for only $860, i.e. $43 a day.

Target Market Segment(S)

Foxy Kids’ Daycare will concentrate on two distinct target client segments. The first target is full-time working parents. This group is anticipated to account for an eighty percent of Foxy Kids’ Daycare business. The group is growing/developing at a good rate of about twenty-five percent plus there are more than a hundred potential clients in a ten-mile radius. The other group of clients are the drop-in clients who utilize Foxy Kids occasionally, whenever any need arises. Moreover, this group is rising/growing at twenty percent, and there are fifty potential families.

Market Needs

With an increase in inflation every year, it is crucial for many families to depend on two incomes to survive. In turn, the demand for childcare services increase. We do not anticipate this trend turning anytime soon, so we intend to grab a share of the market.

Market Size/Trends

In child care, the market trend shows an increased use of child care by the parents. This will get fueled by the parents’ need/desire to go to work earning income for the family. This trend fuels the requirement for more childcare facilities and additionally creates demand for facilities which provide child growth. As the parents are using or spending less and less time with the kids, they have little time to assist them in growth. This trend is moving the demand away from merely babysitting child care to the child development care. This is going to benefit Foxy since we will be offering state of the art learning systems (Waldfogel, 24). Our focus is to create better kids not just smarter kids.

Legal Structure

Foxy Kids Daycare’s legal structure is set up as a corporation. The facility will acquire all appropriate certifications and licensing. Moreover, in-depth pre-hired background screenings, drug test, and psychological test will be carried out on all people before hiring them for employment and quarterly after hiring.

Sales Strategy

Foxy Kids Daycare will make a noteworthy profit through the better care of kids. Even though Foxy Kids charges less, they will see profit in the first year because of the beneficial social media and word-of-mouth advertising. Besides, the company is expecting to double its clients every six months, i.e. for the first eighteen months.

Competitor Analysis

Currently, there is no other daycare facility in the area that offers this kind of daycare service. With this advantage, we will come off strong with great promotions and marketing to grab and maintain the attention of all our potential clients (Armstrong). While there exist no competitors in the region, there exist several 24-hour daycares in a 17-mile radius; they would manage to maintain their present business and acquire the new business of the prospective families.

Competitive Advantage

Foxy Kids’ competitive advantage lies in the facility’s ability to continuously deliver our promise of reliable, genuine, and safe care for kids each and every day. We are going to develop standardized background and forefront operations, which will consequently minimize costs and allow us to grow a franchising model. Also, we will stand out with our ability to pick up and drop of our kids.

Marketing Plan

Foxy Kids’ Daycare marketing campaign is going to be largely reliant on the word-of-mouth and social media. This type of business relies on parents talking and interacting with other parents and guardians, letting them know everything about Foxy Kids’ Daycare. However, we must get the first bunch of parents so that they can tell all their friends. This will be done by:

• Creating one Facebook page and utilizing our friends to start spreading the word, and providing followers with bigger discounts, particularly for telling their friends.

• Putting up flyers at the local, independent coffeehouses, restaurants, and yoga studios.

• Establishing a booth with the flyers and information at the local farmers’ market

• Advertising at the local hospital, prenatal as well as children’s wards since this are the places where mothers frequently visit.

Financial Plan

Foxy Kids Daycare financial plan is grounded/based on conservative assumptions and estimates. Owner investment and loan will be combined to fund the start-up needs and to sustain this business to break-even, in eight months to one year.

Start-up Funding

The total start-up assets and expenses are going to get funded as indicated in the following start-up funding table. $50,000 will be borrowed and get repaid in three years, while the long-term liabilities are going to get paid in six years.

Start-Up Funding

Works Cited

Aral, Sinan, Chrysanthos Dellarocas, and David Godes. "Introduction to the special issue—social media and business transformation: a framework for research." Information Systems Research 24.1 (2013): 3-13.

Armstrong, Gary, et al. Marketing: an introduction. Pearson Education, 2015.

Waldfogel, Jane. "What do children need?." IPPR Progressive Review 13.1 (2006): 26-34.

Feedback

Customer Profile - You offer a very broad description of who your customer is.  When describing the ideal customer for your product, you need to offer as much information as you can, in order to be able to best understand how to reach them.  In addition to the information provided you should have also provided answer to questions such as what is their income?? What needs/wants are they looking to satisfy through your service offering? How do they make their buying decisions? What criteria do they follow when making these types of decisions? What needs are they wanting fulfilled?

Market Segmentation - The answers provided here do not define the target market segmentation.  In your business plan you need to include every single detail of information you have to offer.  What you have offered would not be sufficient for a third party evaluating this plan to determine who will be the ideal customer for this product.  For each of your market segments, the market analysis should explain as much as possible about the target customers included in that group. That normally includes the segment description, needs and requirements. Here you should also provide information such as the number of potential customers, annual growth rate of that customer segment, annual spending, and overall market value.

Customer Needs - The best marketing always focuses on customer needs. You did a great job here by focusing on: Why do they need your product or service? What is going to make them buy it? You clearly identified the customer's need and did a great job of conveying to the reader how you intend to fulfill it.

Market size/trends: You offer some very limited information as to the current condition of the market or any trends that may be impacting or would be impacting this market.  In this section you were expected to define the total market size as well as the slice of the market your business will target. You needed to have researched and identified the numbers as well as trend information to make a case for where the current market is and its growth potential. 

Competition - Again, you offer limited specific and details as to who the competition is, what their strengths/weaknesses are and how they will impact your business. In this section you should have provided specific information as to each competitor (whether they are a primary or secondary competitor) and competitor's strengths and weaknesses.
In this section of the plan it is important to present a brief description of each of your primary competitors. Each assessment should have included why these competitors do or do not meet their customers' needs. Strengths and weaknesses for each competitor can fall into a number of different categories, and must be highlighted as well.

Pricing - You have a good start to your pricing strategy, it is important to remember that your pricing strategy MUST match your ideal customer and the benefits they perceive your business will provide them.  If your ideal customer is one for whom price is not an issue, and actually expects a higher end pricing strategy, then that is what you should have in your pricing.  If your ideal customer is one for whom price is a concern, but they like to have a quality experience and their needs met and catered, then your pricing strategy should align with those needs.  This is why it is critical for the ideal customer/target market to be identified first in order to then set up the pricing strategy.