Table of Content

    Do you want to start a Preschool business plan?

    Are you thinking of drafting a business plan for a preschool because you want to start a preschool? If you want to know how to write a business plan for a preschool, you can refer to business plans like the one presented here.

    Starting a new business can be hard, especially in the education sector but it can also be very rewarding. So, if you want to know how to develop a business plan for angel investors that will get them excited and interested in your business, then start with following this document.

    Here, we will be presenting a preschool business plan with a focus in tutoring business ideas among other ideas.

    Executive Summary

    2.1 What is The Business

    This document contains the sample business plan for preschool that will be called LearnALot. LearnALot will be a preschool/daycare center operated and managed by Theodore Krasinski. It will offer parents a chance to safely let go of their kids for a while in a place where they will not only have fun but also learn.

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    2.2 Management of Preschool

    starting a preschool business plan can be hard at first. But the process to plan and figure out the management of a business becomes easier if you split it into smaller and more manageable parts. If you want to make a business plan for preschool center, the first thing you need to do is to plan everything out.

    In this business plan for a preschool pdf, we will plan out all the necessary details of LearnALot one by one. If you want to write a business plan for preschool, you can follow along. You can also hire business planning services to find out all the details you need to start up your business.

    2.3 Customers of Preschool

    The customers of LearnALot will belong to all kinds of family backgrounds. Being a daycare, the major focus customers of the business will be parents or families with small or special needs children.

    • Working Parents
    • Single Parents
    • Concerned Parents
    • Families with special needs kids

    2.4 Business Target

    The target of LearnALot will be a reliable source of daycare and education for the residents living in Florida. It will aim to cater to children of all types and needs.

    The financial targets that LearnALot wants to achieve within the first five years of operation are demonstrated below:

    Preschool Business Plans - 3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    Company Summary

    3.1 Company Owner

    Theodore Krasinski will be the owner and manager of LearnALot. Theo got his master’s in education three years ago after which he served as a teacher for two years and as a principal in the third year. However, he always felt a need to do more so he decided to open a special preschool himself.

    3.2 Company History

    Theo noticed that though public schools were trying their best, seldom did they have all the tools to cater to children of different types. There was also a lack of preschools and daycares in the surrounding which led to a harder process for children to adjust to a fast-paced school environment. To eradicate this issue, Theo decided to open a preschool that would prepare students of all kinds in a way that would help them keep up when they got into school.

    3.3 How the Preschool will be started

    Step1: Evaluate Goals

    Starting up a preschool business or any business for that matter requires a lot more than money. To start a business, even to open driving school business plan involves being sure about the goal you want to achieve with the business. The goal can be scaling up the business, earning profits or increasing the well-being of the community, or anything else. But there needs to be a solid goal to start with.

    Step2: Plan the Business

    Once you are sure about the goals of your business, you can start developing a business plan template for preschool. If you are not sure how to develop a business plan, you can take help from preschool business plan examples like this one to learn how to write a business plan for a preschool.

    Step3: Plan Structure and Logistics

    Now that you know the base details of the business, you will be able to sort out the finances. This will include all the estimates for costs that will be involved in starting the business.

    Step4: Get Funding

    Any business needs money to start and function before it can become self-sustaining. To get the initial funding for LearnALot, Theo decided to write up a strong business plan that would wow the investors.

    Step5: Find a Physical Space

    Every business, big or small needs space to function. Therefore, to start a preschool, you will need a building to set up everything. Theo decided to rent out a building with some space in the front near the center of town.

    Step6: Promote and Market

    The final step of the business is to develop a marketing plan to promote the business both in the online and physical realm. Theo will hire a marketing plan to develop a marketing plan that can be followed to bring more customers to the business.

    Preschool Business Plans - Startup Cost

    Start-up Expenses  
    Legal $151,400
    Consultants $0
    Insurance $25,100
    Rent $35,100
    Research and Development $10,000
    Expensed Equipment $52,200
    Signs $3,400
    TOTAL START-UP EXPENSES $277,200
    Start-up Assets $251,400
    Cash Required $201,000
    Start-up Inventory $35,100
    Other Current Assets $251,000
    Long-term Assets $217,000
    TOTAL ASSETS $955,500
    Total Requirements $1,232,700
    START-UP FUNDING
    Start-up Expenses to Fund $277,200
    Start-up Assets to Fund $955,500
    TOTAL FUNDING REQUIRED $1,232,700
    Assets
    Non-cash Assets from Start-up $1,242,000
    Cash Requirements from Start-up $115,000
    Additional Cash Raised $50,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $1,442,000
    Liabilities and Capital
    Liabilities $18,200
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $51,500
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $69,700
    Capital
    Planned Investment $1,232,700
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,232,700
    Loss at Start-up (Start-up Expenses) $139,600
    TOTAL CAPITAL $1,372,300
    TOTAL CAPITAL AND LIABILITIES $1,442,000
    Total Funding $1,232,700

    Any questions? Get in Touch!

    Services

    All business plans including business plans for preschools include details of what services or products the business will provide. Deciding these things ahead of time allows you to develop a preschool business proposal more efficiently.

    A preschool business plan like an e-learning business plan will help you map out your business to its details. That will, in turn, allow you to manage it in a better way and gain more funding.

    In the case of this preschool business plan template, Theo decided to include all the major services that will offer to the customers through his business.

    • Day Care Services

    The primary service provided by LearnALot will be daycare offers. The business will offer daycare services for all types of parents. This will include parents who just want to drop off their kids temporarily for a few hours while they get done with their day-to-day tasks. The other option will be for parents who want to drop off their kids for a longer period of time regularly as they are off to work.

    • Special Education Services

    LearnALot will also cater to families and parents with children who have special needs children. This can include children who need help with physical activities or children, who, perhaps have a different way and speed of learning.

    • Playgroup

    As Theo wants to offer a one-place-for-everything business, there will also be some learning activities for the duration of the stay for kids to learn as they play. Parents will have the choice of opting their kids out of these activities. However, Theo will try to encourage parents to allow their children in a free environment so they can adjust better in school later.

    • Transportation

    LearnALot is primarily a business for children with parents who are busy working for a living, so keeping the busy routines in mind, the business will also offer ‘pick and drop’ services to parents who need it.

    Marketing Analysis of Preschool

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    Even though opening a preschool business may look like an easy task, it can be very taxing if not planned properly. To start any business, even a preschool business, you need to thoroughly research the market and understand it.

    The best way you can learn about your target market is to do market analysis as a part of your business plan for preschool center. The marketing will help you understand the past, present, and future conditions of the market, what the gaps are, and where you can fit in.

    If you are thinking of running a preschool business, you will need to learn all about your target market. This will include both your customers and competitors. Learning these things will help you develop a preschool marketing plan targeting your customers. You will not only be able to attract customers in a better way but also find ways to be better than your competition.

    If you want to develop a preschool business plan sample and you don’t know-how, you can follow this sample preschool business plan for LearnALot.

    5.1 Market Trends

    Daycare and Preschool services are booming services in the US. According to IBISWorld, daycare centers have a market share of around $54 Billion. And according to Bplans, 84% of startups in the daycare services succeed enough to make a good profit within the first year. Therefore, opening a business in this domain is very rewarding.

    5.2 Marketing Segmentation

    The customers of LearnALot will belong to the following groups:

    Preschool Business Plans - Marketing Segmentation

    Business Plan for Investors

    5.2.1 Working Parents

    Our main customers will be the working parents living in and around Florida. These parents usually have 9-5 jobs that keep them busy. Therefore, they are expected to utilize our services most often. We will offer them not only a place where they can leave their children to play for a while but also a place that will help them learn new things and small skills.

    5.2.2 Single Parents

    Our second target customer will be the single parents who need all the help they can get. Single parents usually have to manage everything on their own. Therefore, a service of this sort will be a great help for them to drop off their kids if they need to do daily chores or just relax for a while.

    5.2.3 Concerned Parents

    A lot of parents usually get concerned that their children are not learning as fast as they could or as much while staying home. For these parents, our educational services will be the most attractive where they will be able to drop off their kids for a few hours every day to learn with other children.

    5.2.4 Families with Special Care Kids

    Lastly, LearnALot will cater to those children as well who don’t learn at the same pace as other students or have some trouble learning the same way that other children do. Parents can bring their children to get assessed and our preschool will try its best to cater to the children in a way that is most helpful to them.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Working Parents 41% 55,100 66,120 79,344 95,213 114,255 10.00%
    Single Parents 37% 45,100 54,120 64,944 77,933 93,519 10.00%
    Concerned Parents 14% 25,100 30,120 36,144 43,373 52,047 10.00%
    Families w/ Special Kids 8% 25,100 30,120 36,144 43,373 52,047 11.00%
    Total 100% 150,400 180,480 216,576 259,891 311,869 10%

    5.3 Business Target

    The target of LearnALot is:

    • To become a safe and reliable place where parents can drop off their children regularly.
    • To become the best preschool/daycare center in Florida.
    • To expand the range of services we offer.
    • To earn a profit margin of $10k/month after the first two years to sustain the business.

    5.4 Product Pricing

    Our prices for specialized cleaning are a little higher than those of our competitors. However, our other offerings are available to our customers in a similar price range as that of our competitors.

    Marketing Strategy

    To develop a preschool marketing plan template that will help you succeed, you will need to develop strategies that will work for your market. A good marketing plan is part of every business plan. Therefore, you will need it for your daycare and preschool business plan as well. In this business plan for preschool pdf, we are providing the preschool business plan sample for LearnALot.

    Similarly, you can develop a karate center business plan by formulating a strong marketing plan for the business.

    6.1 Competitive Analysis

    • We have versatile offers and services to cater to parents who want to drop off their kids for different periods.
    • Our customers can directly contact us in case of special services or hours they might need
    • We cater to all kinds of kids with learning disabilities or just kids who learn in a different way than others.

    6.2 Sales Strategy

    • We will advertise through the local news channels, posters, and social media posts
    • We will offer discounted rates to the first 15 customers
    • We will offer different types of affordable packages to parents so that using a preschool doesn’t break their bank

    6.3 Sales Monthly

    Preschool Business Plans - Sales Monthly

    Any questions? Get in Touch

    6.4 Sales Yearly

    Preschool Business Plans - Sales Yearly

    6.5 Sales Forecast

    Preschool Business Plans - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Day Care Services 1,500 1,590 1,685
    Special Education 1,250 1,325 1,405
    Playgroup 1,500 1,590 1,685
    Transportation 750 795 843
    TOTAL UNIT SALES 5,000 5,300 5,618
    Unit Prices Year 1 Year 2 Year 3
    Day Care Services $250.00 $290.00 $336.40
    Special Education $150.00 $174.00 $201.84
    Playgroup $250.00 $290.00 $336.40
    Transportation $200.00 $232.00 $269.12
    Sales
    Day Care Services $375,000.00 $461,100.00 $566,968.56
    Special Education $187,500.00 $230,550.00 $283,484.28
    Playgroup $375,000.00 $461,100.00 $566,968.56
    Transportation $150,000.00 $184,440.00 $226,787.42
    TOTAL SALES $1,087,500.00 $1,337,190.00 $1,644,208.82
    Direct Unit Costs Year 1 Year 2 Year 3
    Day Care Services $75.00 $82.50 $86.63
    Special Education $60.00 $66.00 $69.30
    Playgroup $85.00 $93.50 $98.18
    Transportation $70.00 $77.00 $80.85
    Direct Cost of Sales
    Day Care Services $112,500.00 $131,175.00 $145,997.78
    Special Education $75,000.00 $87,450.00 $97,331.85
    Playgroup $127,500.00 $148,665.00 $165,464.15
    Transportation $52,500.00 $61,215.00 $68,132.30
    Subtotal Direct Cost of Sales $367,500.00 $428,505.00 $476,926.07

    Personnel plan

    A business plan preschool like any other business involves a careful approach towards the employees you will hire for your business. This is true for all business plans like business plan for language school sample. To make this preschool business plan pdf as successful as he could, Theo added a list of employees that will help him run the preschool.

    7.1 Company Staff

    • 1 Manager
    • 5 Trained Teachers
    • 2 Cleaners
    • 1 Sales Executive
    • 1 Guard

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Manager $30,000 $33,000 $36,300
    Trained Teachers $175,000 $192,500 $211,750
    Cleaners $45,000 $49,500 $54,450
    Sales Executive $22,500 $24,750 $27,225
    Guard $22,500 $24,750 $27,225
    Total Salaries $295,000 $324,500 $356,950

    Financial Plan

    When you look at preschool business plan examples, you will notice that all of them explain their finances in one way or another. But financial information is always a part of every preschool business plan sample pdf. This is so that you can plan out beforehand how you will fund your business and how you will earn revenue.

    Below, we are providing the financial analysis for LearnALot. You can follow this template to do financial analysis for your martial arts business plan as well.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

    8.2 Break-even Analysis

    Preschool Business Plans - Break-even Analysis

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800
    Any questions? Get in Touch

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $1,087,500 $1,337,190 $1,644,209
    Direct Cost of Sales $367,500 $428,505 $476,926
    Other $0 $0 $0
    TOTAL COST OF SALES $367,500 $428,505 $476,926
    Gross Margin $720,000 $908,685 $1,167,283
    Gross Margin % 66.21% 67.95% 70.99%
    Expenses
    Payroll $295,000 $324,500 $356,950
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $474,200 $507,950 $550,850
    Profit Before Interest and Taxes $245,800 $400,735 $616,433
    EBITDA $245,800 $400,735 $616,433
    Interest Expense $0 $0 $0
    Taxes Incurred $49,160 $80,147 $123,287
    Net Profit $196,640 $320,588 $493,146
    Net Profit/Sales 18.08% 23.97% 29.99%

    8.3.1 Profit Monthly

    Preschool Business Plans - Profit Monthly

    8.3.2 Profit Yearly

    Preschool Business Plans - Profit Yearly

    8.3.3 Gross Margin Monthly

    Preschool Business Plans - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Preschool Business Plans - Profit Yearly

    8.4 Projected Cash Flow

    Preschool Business Plans - Project Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

     

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

     

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

    FAQ

    1. Are preschoolers profitable?

    Opening a preschool business can prove profitable if you do a financial analysis to make sure that the business is fit for the area you want to operate in.

    2. How can I grow my preschool business?

    You can grow your preschool business by reading preschool business plans for preschools that are profitable.

    3. What are the steps to start a preschool?

    Starting up a preschool business plan involves planning out every aspect of your business including the finances, marketing, and services you will offer.

    4. How do you write a preschool proposal?

    You can write a business plan for preschool center by following the template provided above.

    Download Preschool Business Plan Sample in pdf