business plan (1)
TRANSCRIPT
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