Sample Daycare Business Plan

Financial Plan

Key Revenue & Costs:

1. Revenue Sources:

• Tuition Fees: The primary revenue source for HappyBabies Daycare will be tuition fees paid by parents/guardians for the enrollment of their children. Based on our enrollment projections and pricing assumptions, we anticipate the following revenue figures:
• Year 1: $300,000
• Year 2: $350,000
• Year 3: $400,000
• Additional Services: We expect additional service fees to contribute approximately 15% of the total revenue. These services may include extended care, meal plans, enrichment programs, and special events.

1. Costs:

• Staff Salaries and Benefits: We plan to hire qualified teaching and administrative staff. The anticipated staff costs for the first three years are as follows:
  1. Year 1: $150,000
  2. Year 2: $180,000

• Year 3: $210,000

• Facility Expenses: Rent, utilities, maintenance, and insurance costs are estimated at:
  1. Year 1: $60,000
  2. Year 2: $65,000

• Year 3: $70,000

• Educational Materials and Supplies: We allocate approximately 5% of the revenue towards purchasing age-appropriate toys, books, learning materials, art supplies, and other necessary supplies.
• Administrative Expenses: We expect administrative expenses to be around 8% of the revenue, covering office supplies, software, licensing fees, and professional services.
• Marketing and Promotion: We allocate a budget of $15,000 per year for marketing strategies, advertising campaigns, and promotional materials.
• Miscellaneous Expenses: We set aside a contingency fund of 3% of the revenue to cover unexpected expenses, repairs, and staff development.

Funding Requirements and Use of Funds:

To launch and sustain the operations of HappyBabies Daycare, we estimate the following funding requirements:

• Startup Costs: $200,000
• Working Capital: $100,000

Key Assumptions:

1. Enrollment Projections: We assume a gradual increase in enrollment over the first three years. Based on market research and demographic analysis, we anticipate the following:

• Year 1: 50 enrolled children, with an average enrollment duration of 12 months.
• Year 2: 70 enrolled children, with an average enrollment duration of 14 months.
• Year 3: 90 enrolled children, with an average enrollment duration of 16 months.

1. Pricing and Fee Structure: Our pricing strategy is competitive yet sustainable. We assume an average tuition fee per child of $800 per month, with a potential annual increase of 3%. Additional service fees are estimated at 15% of the total revenue.
2. Operating Hours: HappyBabies Daycare will operate five days a week, Monday to Friday, from 7:00 AM to 6:00 PM, providing full-day care for children.
3. Expense Growth: We assume an annual expense growth rate of 5%, considering factors such as inflation, increased staffing requirements, and business expansion.

Financial Projections:

Income Statement (Profit and Loss Statement):

Balance Sheet:

Cash Flow Statement: