Child Care Center Business Plan

Child Care Provider Business Plan Reference Guide & Workbook

Los Angeles County Specific

Introduction ? Purpose of the two part Reference Guide and Workbook This business plan workbook and reference guide was created in collaboration by Public Counsel's Early Care & Education Project (ECE Law Project) and Los Angeles Universal Preschool (LAUP) to assist child care center operators in Los Angeles County with planning, preparing and developing a child care center business plan. The purpose of this business plan workbook and reference guide is to provide a roadmap on how to draft your business plan. It includes explanations of each business plan section and references to additional resources. This guide highlights some of the many Los Angeles County specific rules, regulations and procedures governing the planning and operation of a child care center.

There are two types of child care facilities ? family child care homes and child care centers. Please note that this reference guide focuses primarily on child care centers, although many of the resources herein will be the same for both types of facilities.

Part I ? Reference Guide Part I is a reference guide that explains each section of the business plan, provides worksheets to help you think through your business and references other available resources to further assist you. This reference guide also highlights Los Angeles County specific regulations and resources in order to support you in your research.

Part II ? Workbook Part II is a blank workbook that outlines a business plan in a section-by-section summary template. Within each section of the workbook template, there exists a series of questions that will help guide you in analyzing, researching and describing essential aspects of your child care center business. The workbook is formatted so that it can be used in conjunction with the reference guide to assist in drafting and gathering the necessary information to complete your final business plan.

A quality business plan is one that will speak to the intended reader(s) and give him/her a clear picture of your business' strategies, goals, and historic challenges and achievements.

For comments or questions, please contact us at Public Counsel at eceinfo@ or LAUP at info@.

TABLE OF CONTENTS

A. GETTING STARTED................................................................................................................................. 4 B. BUSINESS PLAN OUTLINE ...................................................................................................................... 6 SECTION 1: Executive Summary of Business............................................................................................ 6 SECTION 2: Business Description ............................................................................................................. 7

1. Description of Child Care Center and Services.............................................................................. 7 2. Mission Statement ........................................................................................................................ 8 3. Industry Analysis ........................................................................................................................... 9 4. Business History .......................................................................................................................... 10 5. Vision, Goals and Objectives ....................................................................................................... 10 6. Competitive Position................................................................................................................... 12 7. Collaboration Partners ................................................................................................................ 13 SECTION 3: Business Organization ......................................................................................................... 14 1. Legal Structure ............................................................................................................................ 14 2. Los Angeles County Licensing Requirements.............................................................................. 14 3. Governmental Regulations Checklist .......................................................................................... 19 SECTION 4: Management & Organization ............................................................................................. 21 SECTION 5: Operations......................................................................................................................... 23 1. Description of Operations ............................................................................................................... 23 2. Staffing and Employee Policies ....................................................................................................... 23 3. Admissions, Payment Policies and Registration Packet.................................................................. 23 4. Insurance......................................................................................................................................... 23 5. Supplies, Equipment and Technology ............................................................................................. 24 6. Recordkeeping ................................................................................................................................ 24 7. General Care & Safety Procedures.................................................................................................. 24 SECTION 6: Marketing .......................................................................................................................... 25 1. Market Analysis of Target Market .................................................................................................. 25 2. Competitive Analysis....................................................................................................................... 25 3. Marketing Strategy ......................................................................................................................... 26 SECTION 7: Financials............................................................................................................................ 28 1. Personal Financial Statement ......................................................................................................... 28 2. Financial History and Analysis......................................................................................................... 29 3. Funding Requirements: Start-Up Costs........................................................................................... 30

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4. Financial Plan: 3-Year Projection .................................................................................................... 30 SECTION 8: Evaluation........................................................................................................................... 32 SECTION 9: References.......................................................................................................................... 33

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Part I: Business Plan Reference Guide

A. GETTING STARTED

Why create a business plan?

A business plan is a three to five year roadmap of your child care business. Drafting your business plan is essential. It will assist you with planning, preparing and operating your child care business. The business plan, which is basically a detailed description of each aspect of your business, is divided into various sections as outlined below. The business plan's structure will help guide you in describing the key components of your business. Once completed, the business plan is the best tool for turning your business idea into reality or taking your current operations to the next level. Also, keep in mind that a business plan will be required when seeking financing for your business (e.g. obtaining a loan from a bank).

It is important to update your business plan regularly so that it is an accurate reflection of the current state of your business.

What's in a business plan?

A business plan starts with a Cover Sheet, which includes the name of the business, logo, address, date of plan, contact information, etc.

The body of the business plan normally consists of the following sections:

1. Executive Summary 2. Business Description 3. Business Organization 4. Management 5. Operations 6. Marketing 7. Financials 8. Evaluation 9. Appendices

ADDITIONAL RESOURCES There are a number of business plan drafting guides and workbooks designed specifically for child care businesses. Please refer to the below resources to assist you in developing your business plan.

"How to Start a Quality Child Care Business" By the U.S. Small Business Administration () SBA is an associate administrator of the offices of Small Business Development Centers (SBDC). SBDC are local and regional offices that provide individual consultation, training, educational seminars, resources and other services on business development. The SBA's published guide entitled "How to Start a Quality Child Care Business" is a detailed explanation of starting and operating a child care business. This publication discusses all the issues and factors to consider in understanding how to start a child care business.

For more information, please download and review Appendix 1 now.

"The Child Care Center Business Plan Workbook" A collaborative team of business consultants and early childhood specialists created this fill in the blank "question and answer" workbook, which guides you through a step by step design of your business plan.

"Developing a Childcare Center Business Plan" By First Children's Finance () First Children's Finance is a non-profit organization that assists child care centers in obtaining financial literacy and funding. The article referenced above is a bullet point outline of the items required for each business plan section.

"Child Care Operator Resource Guide" By Public Counsel Public Counsel provides free legal services to low-income licensed and non-profit child care centers. This resource guide references the various phases of opening or acquiring a child care center, ranging from the planning, predevelopment, development and through to the startup phases. Further, this operator resource guide consists of a valuable directory of many organizations and resources to assist you.

Sample Child Care Business Plan: "Child Day Care Services Business Plan ? Kid's Community College" Bplans' website offers an array of sample business plans that could be used a guide when preparing your own business plan.

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