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As you assemble your final plan, the executive summary is the last item you should write


As you assemble your final plan, the executive summary is the last item you should write. Remember that the executive summary is the first part of your plan and it must motivate your potential backer to read your detailed plan. A vapid executive summary will likely cause a potential backer to discard the plan. Your one- to two-page executive summary should include.

  • A brief description of your business and your initial goals.
  • A brief presentation of the qualifications the principles have related to running the business.
  • Quantitative information reflecting market size, your projected market share, projected revenue, and potential growth.
  • A description of how you will obtain and maintain a competitive advantage.

Financials and Forecasts Chrystal Mcree, Crystal Kierum, Nkao Nou Moua Professor Sucheta Shah May 10, 2021 2 Financials and Forecasts Once the business market size and share have been estimated and the competition, resources and strategy have been enumerated, it is vital to break those broad ideas out into actual numbers that a potential investor can relate to. Creating a sources and uses of funds statement followed by an income and expense statement will allow potential investors to see how big ideas break down into practical application. Sources and Uses of Funds The project's financial status will be dependent on five sources of funds. The five sources include parents, donations, sponsors, loans, and grants. Businesses often seek funding sources to facilitate their growth in a given venture. Reliability associated with different sources of funds varies widely depending on the nature of the relative business and its relationship with the funder. Additionally, the number of funds needed by businesses may range significantly because some are needed for short-term purposes while others for long-term purposes. The part below explains the specific sources associated with financing the new project. ? Sponsor: The sponsor will be the most reliable source of funds for the business. I will be the project's sponsor for the short-term period made up of the first three years. I will use my savings and other sources of income to fund the business with 70 000 dollars every year. This amount will contribute to 45.3% of the expected budget. ? Parents: The facility will charge fees from parents that will register their children for its services. However, there is no specific fee that has been set so far per child or parent. Instead, the admitted clients will share the cost among themselves to cover the estimated budget – 30 000 dollars. 3 ? Donations: Donations will find the business with at least 20 000 dollars. Winning the donations may be a strenuous thing. However, there are significant possibilities to win them because of the business’s nature. Non-governmental organizations like UNICEF are the major sources of expectation for this category. ? Loans: Loans will also help the business with 20 000 dollars. The loans will accrue from financial institutions like banks. ? Grants: The local government also gives grants to social institutions, private investors, research projects, and small and medium-sized businesses. The business expects to receive grants worthy 16 000 dollars. Table 1 Sources of Funds Uses of Funds Source Amount Costs Item Cost Parents $30,000 Educational Supplies/Equipment (toys, books, etc.) $5,500 Donations $20,000 Administrative Expenses $40,000 Sponsor $70,000 Equipment and Supplies $70,000 Loans $20,000 Fees and Insurance $20,000 Grants $16,000 Advertising $4,000 Total Funds Required $156,000 Contingency $15,000 Total Required Funds $154,500 4 Income and Expense Statement The statement shows the operation at 100% capacity with the numbers yielding 3 rooms for infants, 3 rooms for toddlers, 3 rooms for pre- kindergartners. The ratio is 6 infants in each room and there is a 3:1 ratio of infant to caregiver. The monthly cost would be $1,300 per month, 5 this means in one month the infant room brings in $46,800/month. There are three rooms for toddlers , 8 toddlers in each room with a ratio of 4:1. The cost per toddler is $1200/month which yield $57,600/month in income. There are 3 rooms of pre-kindergarteners, 10 per class, ratio of 5:1, monthly rate of $1,100 which yields $66,000. According to Next Insurance Staff (2020), the average annual payroll of U.S child daycare centers was a little more than $262,100. First Choice Children’s Center if operating at full capacity in all shifts will yield a revenue of $2,044,800.00 and payroll cost would be at least $600,000 annually with the quality of staff we are seeking for. When looking at “cost of sales”, service companies are excluded since they are service companies with no inventories to sell(Ross, 2020, para.3). The cost of rent is estimated to be $2,500/month which yields $30,000 a year. After all the expenses the net income would be $1,276,800 a year, with the forecast of operating at full capacity all year long. Conclusion Childcare centers often have waiting lists and are fully occupied, especially in busy cities like Philadelphia. The statement forecast is set at full capacity with averages of monthly fees for each group in the area. With the appropriate funds from sponsors, donations, loans and grants, the facility will have a start up fee that can generate great profit margins that in return can pay back loans and salaries. Operating a net profit of 1 million dollar day care center is projected and means successful. 6 Reference: Next Insurance Staff. (2020, January 17). How much it cost to run a daycare. Retrieved from Ross, S. (2020, March 7). Industries that cannot claim cost of goods sold. Retrieved from annot-claim-cost-goods-sold-cogs.asp 1 First Choice Children’s Center Crystal Kierum, Chrystal Mcree, Nkao Nou Moua BUS 437 Business Plan Development Professor Sucheta Shah April 26, 2021 2 First Choice Children’s Center First Choice Children's Center is a daycare facility that offers 24-hour care to surrounding families in Philadelphia, PA. The enrollment age starts from 6 weeks old to pre-kindergarten. It has nine rooms, three nursery rooms, three rooms for ages 2-3 years old and three rooms for 4-5 years old. The facility is open 24/hrs a day, every single day, to cater to all working parents of all schedules and shifts. It is imperative that we cater to all shifts since the rise of childcare is highly needed and understand that no one shift fits all. Therefore, we have trained staff that will oversee night shifts, as well as day shifts. We have cameras installed in all rooms, for parents to check in at any time with a protected password and account, while they are working to see whether their children are sleeping or engaging with others. We also offer farm-to-table meals that could be purchased with a weekly plan. We work with local farmers for the best quality produce and source locally to reduce cost. Our facility's flexibility and quality are highly sought after and are why our facility is every parent's and companies first choice when it comes to caring for their children. Goals and Objectives Our goals are to be the quality leader for around-the-clock childcare for Philadelphia working families and to foster appropriate social and physical interaction between children and their peers. The objectives to meet these goals are a 2:1 ratio of caregivers to infants and toddlers up to three years of age and a 4:1 ratio for preschoolers up to five years of age; we will partner with local farmers and producers to provide healthy dining options at affordable costs for those that wish to purchase a meal plan; daytime activities will be structured to encourage children to be active and playing with other children to foster active and social skills, and cameras will be 3 installed in all public rooms for parents to have peace of mind that their children are in a safe and healthy environment at all hours of the day. Market Size and Market Share In Philadelphia, there are approximately 100,000 children under the age of 5 in need of at least part-time childcare (Porter & Bromer, 2019). According to Schulman and Blank (2017), Pennsylvania provides some child care payment assistance for lower-income families, and those payments can continue for up to 92 days while between jobs for families that were already receiving assistance. Some of these payments can help cover overnight workers by helping cover childcare costs both during the parent’s working hours and also allowing them some time to sleep. Low-income families are also among the most likely to need non-traditional hours for child care (Ford & Lieberman, 2018). Given some overlap in hours and with a maximum of 50 children at any given time, we will be able to help 100-125 children per day. There are approximately 950 daycare centers in Philadelphia, nearly 450 of those accept infants as young as six weeks old and those can be narrowed down to approximately 90 that operate 24 hours a day that would directly compete with our business (2021 Winnie, Inc., n.d.). Assuming that each of those 90 can handle approximately the same load, our business would able to capture approximately 0.09% of the market share (100,000 children/9,000 for overnight centers/125 our max capacity). As parents re-enter the labor market following the current ongoing pandemic, the demand for childcare, in general, will start to rise once more. 4 Conclusions In conclusion, First Choice Children's Center operates as a 24-hour facility to ensure that it caters to all working parents of Philadelphia. The 24-hour operating system at the center has helped to accommodate the different schedules and shifts of these parents. This center enrolls infants from 6 weeks up to pre-kindergarten. The main goal of this center is to offer and ensure quality to its clients. For instance, the center has installed cameras all over to ensure the safety of these children whereby parents can monitor their children at their own convenient time and also provides a healthy meal plan to the children at an affordable cost. Additionally, the center accommodates between 100-125 children in a day. Lastly, approximately 450 out of the total 950 daycare centers in Philadelphia only accept little infants from 6 weeks and roughly 0.09% of these daycare centers operate on a 24-hour system. 5 References 2021 Winnie, Inc. (n.d.). Best Daycares in Philadelphia, PA. Winnie. Retrieved from Ford, A., & Lieberman, A. (2018, June 1). More Americans Work Outside 9-to-5 Hours, When Child Care Options Are Scarce. Slate Magazine. Porter, T., & Bromer, J. (2019, February). Supporting Family Child Care in Philadelphia. Erikson Institute. Schulman, K., & Blank, H. (2017, October). Persistent Gaps: State Child Care Assistance Policies 2017. National Women's Law Center. First Choice Children’s Center Crystal Kierum, Chrystal Mcree, Nkao Nou Moua BUS 437 Business Plan Development Professor Sucheta Shah May 3, 2021 First Choice Children’s Center Some of the key parts of a business plan include a thorough analysis of the competition, the strategies to develop and maintain a competitive advantage over that competition, and the human capital and physical resources needed to get the business up and running. This paper will analyze each of these key areas and present a thorough consideration of each of the previously stated business plan sections. Competition Daycare centers in Philadelphia have very competitive rates and are often similar yet unique to their own operating. When reviewing two top competitors, First Choice Children's Center is looking at a few things: positioning in the market, location, ownership, and sales. We are able to see where to market our business and how to differentiate from our competitors. Busy Bee Learning Center is a family-owned business in Philadelphia that offers a homestyle atmosphere in its curriculum. They have individual rooms assigned to specific ages with cameras for parents and guardians to have easy viewing access. They are located in the heart of Philadelphia, giving them a prime location to access all the outdoor activities that the city has to offer. Their business operates from 7:30 am-6 pm, and with a monthly tuition rate of $1,487 for infants, $1,368 for toddler rooms, and pre-kindergarten is $1,220. Another competitor would be Bright Horizons at Philadelphia which focuses on STEM, books, and creative materials. The center sits above the 9th District Police Station and near the Rodin Museum, which makes this a secure and ideal center for parents looking for a safe center. The center works with Gardenworks, which offers the children farming and produce. They have a similar vision as First Choice Children's Center with working with local farmers for produce. Bright Horizons operates from 7:30 am-6 pm. These two competitors are unique to their clients as they both offer care but in different ways with different amenities. First Choice Children's Center not only merges key ideas from both facilities, but we are also the only 24-hour onsite center available to families in the area. Philadelphia is a busy city, and that comes with many different lifestyles that our center values and understands. We stand out against our competitors with our unique structure offering 24hour care, licensed educators and staff, cameras, and low-cost premium food from our farmers. Strategy As a 24-hour daycare provider, our primary strategy will be a differentiation focus. Differentiation focus, in this case, is a focus in daycare for those with non-traditional schedules that takes children as young as six weeks old. Together, both mark a narrow market segment that requires our services (Edspira, 2013). We will market primarily through local ad resources such as billboards and papers as well as online such as targeted Facebook ads and working with local family groups and bloggers. These sources will allow quick and effective market penetration to get the name and availability out into the local community. The other part of our differentiation focus will be the cameras in each classroom that allow parents and caregivers to remotely log in and check on the children in our care. While cameras are relatively widespread in the industry, secure live streaming is less so and will help set parents' and guardians' minds at ease no matter what shift they work. Resources The first choice daycare will be headed by a director who will be the topmost leader, helped by an assistant director at the apex decision point of the childcare center (2021 Winnie, Inc., n.d.). The directors will be in charge of all the daily activities of the facility. Their work will ensure a safe and educational environment for young children and toddlers since the facility will be admitting children from six weeks of age. The children need to be taught and guided while caring to make their days productive and keep them active. Therefore, the directors of the first choice will work to their most capabilities to ensure there is are qualified, stable, and reliable teaching staff for the facility. In addition to hiring the team, they will work with the teaching staff to develop age-appropriate curricula. Finally, they will be in charge of making formal official communications to parents and uphold the reputation of First Choice Children's Center. Our directors should have three years of experience discharging all the above job requirements and have a management degree. The minimum requirements for the teaching staff will be a certificate in teaching or any social work certificate. The secretary will need to have a minimum degree in secretarial and office management (Schulman et al., 2017). There will also be a human resource manager with a degree in Human Resource Management and three years of experience. Other staff for the facility includes; qualified cooks with a certificate in catering (Schulman et al., 2017). A minimum of a high-school degree for maintenance workers and drivers. We will need stationery, desks, chairs, computers, printers, and scanners for our offices, and a petty cash safe for the finance department. Additionally, we will require system software that is compatible with the surveillance cameras and other office systems. The children will need playing equipment, and the teachers will require teaching staff to facilitate the smooth learning of the children. Cleaning equipment and spare parts for common repairs will have to be available to promote efficient working and maintenance services. Conclusion The analysis of the Philadelphia daycare competition, including Busy Bee Learning Center and Bright Horizons at Philadelphia, the use of the differentiation focus strategy for competitive advantage, and the identification of critical positions and physical resources are vital sections of First Choice Children's Center business plan. Thorough development of these sections will poise our daycare for initial and continuing success. References 2021 Winnie, Inc. (n.d.). Best Daycares in Philadelphia, PA. Winnie. Retrieved from Edspira. (2013, July 15). Porter’s generic strategies [Video file]. Retrieved from N.A. (N.D). 5 Best Child Care Centres in Philadelphia. Retrieved from N.A. (2021). Busy Bee Childcare. Retrieved from Schulman, K., & Blank, H. (2017, October). Persistent Gaps: State Child Care Assistance Policies 2017. National Women's Law Center.

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