BUSINESS PLAN

OF

“EVERY CHILD IS SPECIAL”

CHAUDHARY TECHNICAL INSTITUTE

A

Business plan

On

Sunnyside day care

Submitted To; Submitted By:

Ms. Dipti Bhatt 1. Patel Nilam V. (117080592014)

Assistant Professor. 2. Kapadi kailash M. (117080592053)

3. Patel Nilam D. (117080592027)

4. Patel kinjal N. (117080592051)

5. Mevada Juhi P. (117080592026)

Profile of the Group

The team of the business plan consists of five members. These members are going to

start the business. We will share the ownership of the business equally.

The share of the ownership will be based on the investment of the owners.

All of the owners are going to invest TK. 8, 00,000/- for the establishment of the

business.

These owners will take every major decision for the business and they will share the

profit or loss of the business equally. We will appoint the management of the business

and will closely supervise them.

Initially, the five partners or entrepreneurs will hold all the managerial post. However, as

we grow bigger then we can consider hiring any professional manager to take care of

matters. For any decisions to be approved all of our owners must be agree. Otherwise,

the decision will not be accepted. For the better management of the business as well as

for the communication and decision-making process to be flexible enough, the owners

will possess the power to nominate a single owner to supervise overall activities of the

business. 1. Among these members, Nilam D. Patel has extensive knowledge in

marketing and sales.

2. Juhi P. Mevada is an expert of the human resource management.

3. Nilam V. Patel in the area of finance and accounting.

4. Kinjal N Patel has an excellent experience in the field of marketing and in interior

designing.

5. Kailash M Kapadi adequate knowledge of finance and accounting as well as she has

in-depth knowledge of the overall management .We, the five members have used our

extensive knowledge and ideas to generate the business plan that we think can be very

feasible with the conditions in India and can be very profitable for the investors.

Therefore, we hope this business plan will make others feel the same as we do.

Name of the Organization

SUNNYSIDE DAY CARE CENTER

Address

Near karnvati Club,S. G road,Ahmedabad.

Description of Logo

The logo for the SUNNYSIDE DAY CARE center had been developed considering the children with a proper care and give the proper behavioral task and knowledge that will help the children to grown up. It consists of a picture of sunshine which gives an impression of today’s children are the future of the nation. The colour combinations of the SUNNYSIDE DAYCARE logo are very much impressive and attractive with a view to forward.

Motto of the Business

The motto of the SUNNYSIDE DAY CARE center is going to realize.”Every Child is

Special” We will focus on our customers expectation mostly by providing quality service.

Business Profile

The SUNNY SIDE DAY CARE ´center planning guide is directed to day care providers

and facility managers. The name was chosen because of it symbolic meaning and the

logo has been developed according to that. It is intended to provide assistance in

meeting the planning requirements necessary to protect employees and children within

the facility. Because of the differences in size and complexity between different day care

facilities, our planning guide is intentionally generic in nature and in larger facilities for a

larger staff and make the surrounding environment more comfortable, healthy,

flexible ,and also reliable for the children.

The procedures and principles of our day care center are more easy and acceptable

than other day care center. The youth of today are the children of yesterday, a time

when they were not given the right direction, not taught the right values, not corrected

when wrong, had no support except as and when their parents could afford to. However

,a little attention and substantial time can give the working parents who are out of the

house for a major part of the day. It is well established scientifically, that the early years

of a child's life are critical in the formation of intelligence, personality and social

behavior, and that the effects of early neglect can be cumulative. A nuclear family where

all adult members are compelled to work is unable to concentrate on the holistic

development of the child .Day-care centers make child rearing easy, by sharing a

mother's responsibility in bringing up her children, and at the same time is a source of

income to the teachers and staff of the centre. Since the importance of early childhood

care and education has become indispensable, so day-care. A few day-care centers

have been mushrooming all over the country in various forms. A good day care centre

helps children learn and grow in many ways and is fun, as well. Children gain

independence as they explore a world outside the home and choose from among many

activities tailored to their interests and abilities, which let them experience many

successes that build up their confidence and self-image. Day-care centre management

can be a super way for to earn money. In addition, it is a good way to learn a lot about

children, about families, about having a job, about managing money. Our Day Care

center is not in this business just to make money. This career will be often chosen

because we love working with children and we are socially responsible. Day care center

usually work long hours for minimal pay, if we consider what other professionals would

get paid for putting in a 12 hour day with little to no breaks. These days are made longer

and harder if there are problems with the families they work with. With that in mind, it

might be easier to understand the reasons for not accepting a family only as a client.

Mission

SUNNYSIDE DAY CARE center will attain a position where it will be known for not

only its business but also for its contribution to the health and education sector, the

society, the environment and the country.

SUNNYSIDE DAY CARE will that not only met our child care needs, but also provided

an opportunity to learning environment. An extra curriculum tailored specifically for

children, taught in a fun, nurturing care-giving environment. With a low cost, that of the

combination of conventional day care and specific interest children based programs. It

is a start-up for kids ages zero to five years.

VISION

SUNNYSIDEDAY CARE center will be provided with quality and reliability of our

services and that we expect to lead to our own development and prosperity. We will

grow fast and our diversity will be our identity. We hope to contribute to the welfare of

our investors as well as to the welfare of our valued customers and to the welfare of the

economy of India.

GOAL One of our most important goals is to establish long-term relationships with our

clients. Our Child Care Program had make Office Center a robust and flexible child

management program where we can listen to the needs and desires of our child care

providers and child care centers, and also the customers. This is help to grasp in the

competitive market.

Short-term strategy

1. We will give extra care for providing quality services to our clients. Both children and

parents would be treated with equal importance and their preferences would be

considered with proper attention for the benefit of our business.

2. Although we are very new in this industry with very few competitors, we will focus on

attracting more and more parents to admit their children in day cares for their sound and

healthy development. All these services would be provided at competitive rate to meet

the income level of the population of our society.

3. Diversified services for children of various ages will be adopted by us for business

expansion. Although we are showing two child groups Toddler and Pre-school, we will

divide Toddler group into two categories and will provide them different services

required by them.

4 .Our care givers would be highly experienced and trained. We will appoint care gives

according to the ratio of workers to children. Even proper training and instruction would

be provided to new care givers by senior care givers to maintain quality services.

5. We will regularly interact with our clients for their kind suggestion and

recommendation as well as for any complaint regarding our services. This will help us to

know the market demand and customer desires and we would be able to increase our

service quality.

6.We will always give importance to the children and parents and will consider the

customers always right. Their demand and satisfaction would be our main focus.

7. We have focused four target customers depending in the economic condition of our

nation. But we can change our pricing policy depending on the income level of our

target market. We would provide diversified services for different segment of our market

at a different ratio.

Long term Strategy

1. In future, we would expand our business by providing various diversified services for

children including play-group and kinder-garden school facilities.

2. After meeting the demand of our area we would expand our business in other area

within the city in near future and it will depend upon the success of our business.

3. In the long run with greater customers base we would focus on achieving more cost

effectiveness in our business operation with diversified services.

4. Efficiency of employees would be ensured by various training programs by inside and

outside instructors.

5. Customer responses would valued with more interaction with them and their

suggestion would be implemented for the benefit of our business.

6. Our pricing strategy would be change according to the income level of our customers

and economic condition of our country and the demand of our customers.

7. Vast marketing strategy would be adopted by us to make our business more popular

among the customers.

8. We would try to provide more diversified services for different target population of our

market in the long run. Our pricing strategy would also vary among various market

segments depending on their income level

9. Customer would be treated as boss throughout the business operation with proper

care and respect.

10More improved and intellectual activities would be introduced in our day care center

for the physical and psychological development of children. Even modern technologies

and outdoor activities could be introduced for improving their knowledge.11.We would

try to diversify our services by providing services to children up to 10 years old. For this

purpose various cultural and educational program would be introduced by SUNNYSIDE

DAY CARE center.

KEYS TO SUCCESS

The keys to success for SUNNYSIDE DAY CARE center are:

Marketing:

Differentiating SUNNYSIDE DAY CARE center better quality of care and basic

knowledge based services from other daycare offerings and interest activity programs.

Service quality:

Better quality of care giving and knowledge based programs provided to expand the

basic knowledge of the children, and a flexible environment.

Reputation: Maintaining a highly regarded reputation for excellence in care giving,

knowledge, extra curriculum programs, and community involvement and being the

employer and customer choice in our market for child care.

Profitability:

Controlling costs and managing budgets in accordance with company goals, adhering to

strategic business plans for growth and expansion and reinvesting in the business and

its employees.

Department

SUNNYSIDE DAY CARE center consists of three divisions. These are as follows:

Division for Toddlers children.

Division for Pre-school children.

Division for office

All these divisions operated and managed by our Human Resource department.

Organisation Structure

Assets of the business

assets in achieving its goals sunny side daycare center would need to acquire through

either purchase or lease several assets the descriptions of the assets are given in the

following subsections

BUILDING

As mentioned earlier, we have been able to secure a building in AHMEDABAD.

Negotiations have already begun and will be finalized upon the approval of plan. The

building would be rented by an agreement for the next 10 years.. All we would be

required to do after the lease is finalized is break down the walls according to

specifications on the blueprint. Care would be taken so that the foundation is not

disturbed. The rent on this building would be TK. 12 lakh annually. One year’s rent

would have to be paid in advance as deposit as soon as the agreement will be final.

Assets for Office

Serial No Description

1. Computer 2. Computer table 3. Printer 4. Desks

5. Office chair 6. Lockable storage cabinet (first aid)

7. Filing cabinet 8. Book shelves

Assets for Reception

1. Desk 2. Office Chaire 3. Adult Chair 4.Sofa(round) 5.center table 6.Bulletin

board 7. Air condition

Assets for conference/ training room

2. Conference table 2.chair 3.Desk 4. Office chair 5. White board 6.Paper cutter

7.Lable maker 8.Air conditioner

Assets for Class room

3. Round table for reading 2. Chair 3. Book shelf 4. Wood frame cork board 5

television. 6. DVD player 7. Picture Display 8.Air conditioner

Assets for Toodler and Pre school zone

4. Cot for Toodler 2.Pre school Bed 3.Air conditioner 4.Chest for drawer

Assets for store room

5. Lockable cabinet 2. Storage shelves 3.Washing machine 4. Vaccum cleaner 5.

Generator.

The Industry Analysis

The daycare industry is increasing and becoming an important contributor to the gross

national product (GNP) of Bangladesh. The reasons for this trend have been identified

as:

1. Change in lifestyle of population

2. Economic climate3. Increase of product variety in the market.

SUNNYSIDE DAY CARE center will offer services, which are vitally important into day's

fast paced, dual-income world. As an increasing number of families have become

dependent on two incomes, the need for quality childcare has skyrocketed. The lifestyle

changes created by modern living continue to fuel its steady growth Trends are very

important and the Sunnyside would be well positioned to satisfy the current and growing

interest and will provide qualitative service at moderate prices. There are few day care

centers now a day but their services are not satisfactory.

Analysis of competitor Analysis

1. green field daycare:

strengths:already established in market

weaknesses:may not appeal to customers of middle class unlicensed facility

2. kid daycare:

strengths: already established in area give tuitions with childcare service

weaknesses:location outside of middle income market

.3.family child care homes

strengths established in market "personal service

Target Market

Geographic segmentation

Geographic Segmentation calls for dividing the market into different geographic units. In

the meantime, and at least for five years, Sunnyside would operate solely in S.G

ROAD .Within the first two years, it would establish other branches besides

AHMEDABAD. The next step would be to expand in GUJARAT.

Demographic segmentation:

In the demographic segmentation, the market is divided into groups on the basis of

variables such as age, family size, family lifestyle, income occupation, generation and

social class. In the family if the parents are working couple then someone other than an

immediate family member cares the children during some portion of each day. Single

parents who need child care center in order to work. Parents spend most of their

income on their children in order to give a comfortable life. Now a days most of the

families are nuclear family. These people usually have a family size from 3 to 4.The

Sunnyside is located at S.G.ROAD which is a residential area containing a large

number of nuclear families. The market has been segmented basing on the level of

income of customers.

Middle class , upper middle class, upper class.

Marketing Plan

Marketing objective

SUNNYSIDE DAY CARE center targets a new and growing market. However, our target

market did not have a loud and strong voice in society. However, their roles in the

society are gradually evolving and changing. We hope to achieve the following

objectives, through our marketing plan.1.Identify the correct market for the

business2.Determine what they look for in the daycare center 3.Communicate our value

proposition to this market 4.Assess the day care position in the market 5 .Assess the

effectiveness of promotional strategy 6.Attract other closer market segments7.Increase

equity of customers.

Financial Management Plan

SUNNYSIDE DAY CARE hopes to recover its costs within a few year of its start up. It is

assumed that the business will run more on equity rather than debt with some

investment of amount TK 8, 00,000 per investors would be made in the starting of the

venture, much of which would be initially invested in the purchase of the major fixed

assets (playground equipment, office and kitchen equipment, furniture and toys) of the

business.

The location that has been chosen is the prime location in Ahmedabad. A building

already stands three would it have to construct one. The building will be rented for

10years and we will pay the rent of one year in advance which is 12, 00,000.The debt

amount of the company would be total of TK. 30, 00,000. The interest rate will be 19%

and with a payback period of 5 years.

The loan will be taken from the Bank. And one of the owners house will be kept as

collateral. The amount 3,000 will be required for the legal purpose and we will publish

brochures of TK. 7,000.The capacity of SUNNYSIDE DAY CARE center has been

considered around 160children. At the first year we estimate that our numbers of

children will 50 and within three years it is assumed that we will able to utilize the full

capacity. The capacity of the day care is not fixed it may vary according to our

strategies.

FINANCIAL STATEMENT ANALYSIS

    sunnyside Day care center    

  Income  Statement  

   

Particular   2012 2013 2014

         

Revenue        

service revenue 6690000 8808000 10,152,000

Total revenue  6690000 8808000 10152000

         

operating Expenses      

Salary   1765000 2050000 2176000

Advertising 700000 530000 300000

Rent   1200000 1200000 1200000

Stationary 320000 380000 405000

Utility   240000 250000 320000

suppliers   1640000 2075000 2100000

Depreciation 305000 415000 305000

Misceleneous 356000 110000 148000

Interest expenses 114000 114000 114000

Total operating exp. 6640000 7124000 7068000

         

Net profit before tax 280000 1473000 3083700

Tax   42000 368250 770925

Net profit after tax 238000 1104750 2312775

Balance sheet

  Balance sheet            Particulars 2012 2013 2014Assets      Fixed assets      play ground equipments 435000 264093 173230.33office & kichen equipments 1283400 1164305 451000funiture & fictures 365600 443052 312115.17Toy 331000 87000 424304.05Total fixed assets 2415000 1958450 1360649.55       Current assets      Prepaid rent 1200000 1200000 1200000cash in hand 1000000 1944000 2080000cash at bank 1500000 2556000 4207000supplied at hand 943000 193200 187000stationary in hand 200000 248000 278125Total current assets 4843000 6141200 7952125       capital &liabilities             capital    4000000 4000000 4000000net profit 238000 1104750 2312775long term liabilites  3000000 3000000 3000000total capital & liabilities 7238000 8104750 9312775

1. fixed assets/contribution margin per child =22,05,000/46100

= 47.83

2. child*contribution margin per child

 =sales price per child ± variable cost per child

 = 72000-25900  = 46100