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.
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:
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.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$277,200|
|Other Current Assets||$251,000|
|Start-up Expenses to Fund||$277,200|
|Start-up Assets to Fund||$955,500|
|TOTAL FUNDING REQUIRED||$1,232,700|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$51,500|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,232,700|
|Loss at Start-up (Start-up Expenses)||$139,600|
|TOTAL CAPITAL AND LIABILITIES||$1,442,000|
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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.
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.
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:
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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.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
|Families w/ Special Kids||8%||25,100||30,120||36,144||43,373||52,047||11.00%|
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.
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
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6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Day Care Services||1,500||1,590||1,685|
|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|
|Day Care Services||$375,000.00||$461,100.00||$566,968.56|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Day Care Services||$75.00||$82.50||$86.63|
|Direct Cost of Sales|
|Day Care Services||$112,500.00||$131,175.00||$145,997.78|
|Subtotal Direct Cost of Sales||$367,500.00||$428,505.00||$476,926.07|
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
|Year 1||Year 2||Year 3|
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
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|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|
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8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$367,500||$428,505||$476,926|
|TOTAL COST OF SALES||$367,500||$428,505||$476,926|
|Gross Margin %||66.21%||67.95%||70.99%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$474,200||$507,950||$550,850|
|Profit Before Interest and Taxes||$245,800||$400,735||$616,433|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|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|
|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|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|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.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
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.
Illustrative business plan samples
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