Do you want to start a Preschool business plan?

Are you thinking of drafting a business plan for 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 by following this document. 

Here, we will be presenting a preschool business plan with a focus on tutoring business 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 make their kids have fun in a safe environment. Besides, the kids will also be taught the basics.

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2.2 Management of Preschool

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

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 the guide. You can also hire business planning services to get a professional business plan written for your startup.

2.3 Customers of Preschool

The customers of LearnALot will belong to all kinds of family backgrounds. Due to our daycare services, parents or families with small or special needs children will make a major customer group.

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

2.4 Business Target

The target of LearnALot is to become a reliable daycare and educational center for the residents in Florida. We aim to cater to healthy and normal children as well as those with special needs. 

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

Preschool Business Plans - 3 Years Profit Forecast
Franchise Business Planning 
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, they didn’t focus on acquiring the tools to cater to children of different needs. There was also a lack of preschools and daycares in the surrounding. To eradicate this issue, Theo decided to open a preschool that would prepare students of all kinds to 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 in that domain requires a lot more than money. Before you start a business, you need to be sure about the goal you want to achieve via it. 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 direct your operations.

In this open driving school business plan, we will list the SMART business goals adopted by LearnALot.

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 estimating the 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 so that he could develop an outdoor play area as well. 

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 specialist to develop a marketing plan that can be easily followed to bring more customers to the business.

Preschool Business Plans - Startup Cost
Start-up Expenses 
Research and Development$10,000
Expensed Equipment$52,200
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 Requirements$1,232,700
Start-up Expenses to Fund$277,200
Start-up Assets to Fund$955,500
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 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$51,500
Other Current Liabilities (interest-free)$0
Planned Investment$1,232,700
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$139,600
Total Funding$1,232,700
Any questions? Get in Touch!


    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 your business in detail. 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 he will offer to the customers through his business. 

    • Day Care Services

    The primary service provided by LearnALot will be daycare. The business will offer daycare services for all types of parents. This will include parents who just want to drop 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 entrust their kids regularly as they are off to work. 

    • Special Education Services

    LearnALot will also cater to families and parents 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 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, a free environment so they can adjust better when they get into school later. 

    • Transportation

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

    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 will also be able to find ways to stand out among others. 

    If you want to develop a preschool business plan sample and you don’t possess enough knowledge, 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 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 working parents living in and around Florida. These parents usually have eight-hour jobs that keep them busy. Therefore, they are expected to utilize our services most often. We will offer them a place where they can leave their children without any worry. At us, they will have a space where their kids can play and learn new things and skills. 

    5.2.2 Single Parents

    Our second target customer will be the single parents who need as much help as they can get. Single parents usually have to manage everything on their own. Therefore, a service of this sort will be of great help to them. By entrusting their kids to us, they will be able to do daily chores and 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. For these parents, our educational services will be the most attractive. We will offer learning sessions in several niches so that parents can choose what they want their kids to learn. 

    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. Parents can bring their children to get assessed and our preschool will try its best to cater to the children in the most helpful way.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Working Parents41%55,10066,12079,34495,213114,25510.00%
    Single Parents37%45,10054,12064,94477,93393,51910.00%
    Concerned Parents14%25,10030,12036,14443,37352,04710.00%
    Families w/ Special Kids8%25,10030,12036,14443,37352,04711.00%

    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 a 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. 

    If you are also offering physical training and game sessions, you can also see the marketing strategy for karate center business plan.

    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 they need any special services.
    • We are offering pick and drop service to facilitate the parents even more.

    6.2 Sales Strategy

    • We will advertise through 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 SalesYear 1Year 2Year 3
    Day Care Services1,5001,5901,685
    Special Education1,2501,3251,405
    TOTAL UNIT SALES5,0005,3005,618
    Unit PricesYear 1Year 2Year 3
    Day Care Services$250.00$290.00$336.40
    Special Education$150.00$174.00$201.84
    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 CostsYear 1Year 2Year 3
    Day Care Services$75.00$82.50$86.63
    Special Education$60.00$66.00$69.30
    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 includes the strategy to hire the employees for your business. To get an idea of how many employees you may need, you may consult a business plan for language school sample. In this preschool business plan pdf we are providing the employee list made by Theo to 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 1Year 2Year 3
    Trained Teachers$175,000$192,500$211,750
    Sales Executive$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 outline their finances in one way or another. Financial information is always a part of every preschool business plan sample pdf. Accurate financial planning enables you to fund your business, and earn revenue.

    Due to the immense importance of financial planning in a business, it is advisable to not experiment with developing a financial plan. Financial planning is of utmost importance and it impacts the sustainability of a business in the long term. Keeping it in mind, you should hire a professional financial planning expert for the task. Various business frims would do the task for you even online.

    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 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.12%8.20%8.26%
    Long-term Interest Rate8.40%8.44%8.47%
    Tax Rate24.03%24.21%24.60%

    8.2 Break-even Analysis

    Preschool Business Plans - Break-even Analysis
     Break-Even Analysis 
    Monthly Units Break-even5340
    Monthly Revenue Break-even$132,500
    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 1Year 2Year 3
    Sales$1,087,500 $1,337,190 $1,644,209
    Direct Cost of Sales$367,500 $428,505 $476,926
    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%
    Sales and Marketing and Other Expenses$145,000$148,000$156,000
    Leased Equipment$0$0$0
    Payroll Taxes$24,000$25,000$27,000
    Total Operating Expenses$474,200 $507,950 $550,850
    Profit Before Interest and Taxes$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/Sales18.08%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 ReceivedYear 1Year 2Year 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
    ExpendituresYear 1Year 2Year 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
    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  
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$24,000$26,880$30,213
    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 CapitalYear 4Year 5Year 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
    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 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.25%8.03%8.90%3.00%
    Percent of Total Assets    
    Accounts Receivable9.21%10.20%11.31%9.80%
    Other Current Assets2.11%2.34%2.59%2.40%
    Total Current Assets149.80%151.00%152.00%158.00%
    Long-term Assets11.55%11.60%11.64%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.90%4.94%4.98%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.59%7.65%7.72%7.38%
    NET WORTH100.45%101.25%102.19%110.00%
    Percent of Sales    
    Gross Margin94.60%97.15%99.87%99.00%
    Selling, General & Administrative Expenses93.56%96.09%98.78%97.80%
    Advertising Expenses1.52%1.56%1.60%1.40%
    Profit Before Interest and Taxes41.50%42.62%43.81%33.90%
    Main Ratios    
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth74.08%74.89%75.00%75.00%
    Pre-tax Return on Assets96.30%101.12%106.17%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.56%34.60%35.67%N.A.
    Return on Equity55.80%57.53%59.31%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover32.434.0235N.A.
    Accounts Payable Turnover15.61616.3N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.52.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$244,000$257,664$272,093N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.850.870.89N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test2929.1229.16N.A.
    Sales/Net Worth2.12.22.2N.A.
    Dividend Payout000N.A.


    • Are preschoolers profitable?

    Opening a preschool business can prove profitable if you do a financial analysis to make sure that the cash flows are managed well.

    • How can I grow my preschool business?

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

    • What are the steps to start a preschool?

    The first step is to make starting up a preschool business plan and then deal with every aspect of your business including the finances, marketing, and services you will offer. 

    • How do you write a preschool proposal?

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

    Download Preschool Business Plan Sample in pdf