Business project
aaaronxsean
SU_BUS1101_W3_Hernandez_A.pptxChild Care
Business plan
Business name
Head Start
Moto: We don’t offer child care we offer a head start.
Demand
Child care is always increasing.
Billion dollar industry
It is RECESSION PROOF!
“Sales among privately held firms providing child day care services (NAICS 6244) have grown nearly 9% over the last 12 months, according to a financial statement analysis by Sageworks. Perhaps more impressive is that businesses in this category grew sales, on average, by 6% to 7% annually between 2008 and 2012 -- even during the recession. Other privately held companies saw a decline, on average, of 5% in 2009.”
Demand
The demand is so high that its been the focus of many controversial topics with the cost of child care!
Parents will always pay whatever the cost is as long as it is a safe educational environment for their kids.
Ownership
Corporation
Limited Liability
Tax Advantages
Raising Capital
Discuss each point.
The corporate veil is the main advantage to going with this form of ownership. The liability is very important especially since we are dealing with kids.
Limited Liability – Corporations provide limited liability protection to their owners (who are called shareholders). Typically, the owners are not personally responsible for the debts and liabilities of the business; thus, creditors cannot pursue owners’ personal assets, such as a house or car, to pay business debts. Conversely, in a sole proprietorship or general partnership, owners and the business are legally considered the same and personal assets can be used to pay business debts.
Taxes-Corporations often gain tax advantages, such as the deductibility of health insurance premiums paid on behalf of an owner-employee; savings on self-employment taxes, as corporate income is not subject to Social Security, Workers Compensation and Medicare taxes; and the deductibility of other expenses such as life insurance. For information on the types of tax advantages your business may gain by forming as a corporation, consult an accountant or tax advisor.
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Aaron Hernandez (AH) - Discuss each point.
Business Objective
Provide educational child care
Montessori
Offer different packages (affordability)
Shuttle Service (pick up and drop off)
Meal planning
This child care service will not just be “watching your kids” while you’re at work. We recognize that the children spend majority of their time in the day care. We will sell ourselves as a head start in their kids lives by offering educational programs and tutoring if need be.
The services being offered are exactly that an offer. The parents have an option to OPT out.
If they want their children picked up and dropped off then that will be an additional charge on to their monthly bill and only available to those who are “gold or premium members” this class distinction will also push its own sales because of the exclusivity. At the end of the day an upscale day care you don’t want to just have the “basic” membership. This insecurity will make the parents upgrade their memberships.
How many times have we gotten home and had no energy to cook a healthy meal and ended up getting take out. Worst yet having to go get groceries after a long day! That’s where companies like “hello fresh” or “plated” has been attacking the market by providing ready to cook meals. For us we will eliminate the task of having to cook a healthy meal for your kids and we can make the plans in according to the childs growth percentile. You can pick the meal plans and we will cook it for the children.
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Target Customer
Career adults
80k+
Classy
luxurious
We are offering a luxury day care Montessori service. This will be tailored to clientele that can appreciate this and afford it!
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Product
Offer premium services
Child pick ups and drop off
Meal planning
Our staff will also push these services
Our knowledgeable staff will share our services as facts and surveys showing what our head start program and how it can give children a head start in their education. Our care providers will give suggestions to parents what their observations are of their child and their learning style and form a lesson plan around that.
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Service
In school counselor
Knowledgeable teachers
Healthy meal plans
Shuttle Service
Military specials
Date nights
This is necessary in our business model. The counselor is the credibility that matters and will be who the lesson plans are formed around through their observations.
An all around trust worthy staff is necessary for daycaresspecially.
Military specials are a must to attract the large population of military.
We will also be offering early drop offs and late drop offs because of the peculiar hours that is demanded of the military
Drop offs for date nights (baby sitting) is also available.
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service
Tutoring
Science
Technology
Education
Math
Tutoring is on a separate bullet because we will capitalize on this because we will focus on a strong tutoring program similar to mathnasium and other competitors. We will have a really strong STEM program that we will also offer to lower house hold income families that will be federally funded. This is a great source of income and will build community relations. It will also be a great tax write off.
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Pricing
Over price
- Since we are going for luxury and exclusivity we are pricing ourselves above market average. We are equating luxury and pricing together with the service we provide.
According to a 2013 report by Child Care Aware of Minnesota, an advocacy group based in Washington, D.C, Minnesota was the nation’s third costliest state for center-based child care last year, relative to the state’s median income. One year of infant care in a center cost $13,876 in Minnesota, while one year for a preschooler cost $10,664. Although White Bear Montessori School doesn’t have an infant program, some Montessori schools do. And our Toddler tuition starts at $7,100 and goes to $9,500 for full-day, 5 days a week (see our full 2014-2015 Tuition and Fees here). Although our programs run from 8:30 a.m. to 3:30 p.m., we also offer before and after-school care for $7.50 - $8.50/hour. Tuition assistance is available to all eligible families to the extent that funds are available
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Distribution
We will base our services geographically very strategically and based on demographics.
Where ever there is more upscale areas or stores around is where we will target. But also remaining accessible to interstates and being closer to the base.
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Economical Factors
Recession
-Since we are a luxury service we are susceptible to recessions. Although a normal daycare is recession proof like we mentioned earlier. How ever we are not the traditional daycare. To combat this we will develop our waiting list for admittance. This will also give us that exclusivity factor.
Competitors
There are other daycares and Montessori but none offer what we offer in the Hampton roads area yet. We recognize that we will still loose potential clients to cheaper alternatives like in home day cares. That’s fine because not everyone is your client. In order to develop luxury services your clients has to be a representation of your business. If someone is seeking a cheaper more affordable child care they are not our customers.
We don’t offer child care we offer a head start.
Sources
Works Cited
Biery, M. E. (June, 5 2014). forbes. Retrieved from forbes: https://www.forbes.com/sites/sageworks/2014/06/15/heres-the-growth-chart-on-day-care-businesses/#52af129f1ce0
Bizflings. (2019, Mar 1). Start up nation. Retrieved from start up nation: https://startupnation.com/start-your-business/plan-your-business/benefits-of-forming-a-corporation/
Fielding, J. (2014, July). White Bear Montessori. Retrieved from White bear: http://www.wbms.org/blog/how-much-does-montessori-cost-compared-to-traditional-preschool-or-daycare-centers
Works Cited
Biery, M. E. (June, 5 2014). forbes. Retrieved from forbes: https://www.forbes.com/sites/sageworks/2014/06/15/heres-the-growth-chart-on-day-care-businesses/#52af129f1ce0
Bizflings. (2019, Mar 1). Start up nation. Retrieved from start up nation: https://startupnation.com/start-your-business/plan-your-business/benefits-of-forming-a-corporation/
Fielding, J. (2014, July). White Bear Montessori. Retrieved from White bear: http://www.wbms.org/blog/how-much-does-montessori-cost-compared-to-traditional-preschool-or-daycare-centers
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