Free Day Care Center Business Plan

Free Day Care Center Business Plan for Loansbusiness plan.
Obtaining Business Financing 
  
When obtaining a business loan for a day careIndustry and Market Analysis
center business, it is imperative that you have a 
properly structured business plan that will assistThe Current State of the Economy
you in showcasing how you intend to operate 
your Day Care Center, how the business willIt is important to let your financial institution know
operate, how you intend to market the business,that you are well apprised of the financial situation
the anticipated financial results of your company,of the general economy when you are applying
and how you intend to repay your debtfor a business loan. This is especially true in
obligations. This sample loan business plan willtoday's environment where lending has become
provide you with the framework that you need inmore difficult and will remain more difficult in the
order to acquire a business loan for starting orforeseeable future. Specifically, you should gear
expanding this type of business.this section of the business plan analysis towards
 the industry that you are operating within. For
Executive Summaryexample:
  
IntroductionThe current economy has remained difficult over
 the past few years. However, Day Care Centers
When obtaining a business loan for a day caretypically operate with a strong level of economic
center, it is imperative that your business plan hasstability as parents will continue to require to have
a clear and concise executive summary thattheir children cared for on a regular basis despite
provides an outline of what are seeking tothe current state of the economy. As such, the
accomplish, how much capital you are seeking toDay Care Center will be able to remain profitable
raise, the management biography of the businessand cash flow positive during any economic
owner, and an overview of the anticipated profitclimate.
and loss statements of the business. Here is an 
example of how the title paragraph should beThe Day Care Center Industry
written: 
 In addition to providing your business loan officer
Day Care Center, Inc. ("the Company") is seekingwith an understanding of the general economy, it
a business loan of $100,000 in order to launch theis important that you showcase that you have an
operations of a day care center business that willequal understanding of the industry in which you
be based in San Francisco, California. Theare operating within. As such, you will need to
Company was founded in (Insert Year). Theprovide you business loan institution of a brief
business was founded by Mr. John Doe.overview of your industry and any potential
 changes that may affect the way that your
Products and Servicescompany does business. An example of how an
 industry overview is as follows:
In the next segment of the business loan and 
business planning document, you should showcaseThere are over 62,400 childcare establishments in
the products and services that you will bethe United States. These businesses produce over
providing to the general public. For instance:$18 billon dollars a year in gross receipts.
 Additionally, the business employs over 628,000
The Day Care Center will provide round the clockpeople, and generates payroll figures of $7.2 billion
childcare services to the general public of Sandollars a year. Approximately 42,000 of these
Francisco. The business will serve meals, providebusinesses operate as for profit businesses with
basic educational services, and after-hours carethe remainder of these companies providing
services for parents that need assistance caringservices in a not-for-profit setting, such as a
for their children during daytime hours. At allreligious institution.
times, the Day Care Center will remain within the 
letter of the law regarding the sale of Day CareThe industry has experienced a tremendous rate
Services especially as it relates to hiring individualsof growth over the last ten years. The industry
that work with children.from 1999 to 2005 experienced growth of more
 than 18% over the five year period. This industry
Business Loan Termsis one of the fastest growing industries in the
 United States. This is primarily attributable to the
Now it is time to discuss the anticipated terms ofextremely high divorce rate in this country. As
the business plan that you are seeking. Ansingle parent families have become normalized,
example paragraph of how this is stated:the need for daycare services has grown
 immensely as the traditional nuclear family has
At this time, Mr. Doe is seeking a conventionalbecome a rare breed. Additionally, many more
business loan in the amount of $100,000. Thefamilies are two income families, and as such, the
interest rate, loan terms, and loan covenants areneed for daycare centers among these
to be determined during negotiation. However, thisdemographics is immense.
business plan assumes that the business willTarget Market
receive a seven year business loan with a seven 
percent interest rate due on the outstandingIn this section of the business loan application and
principal balance.business plan analysis, you should focus on the
Management Biographydemographics of your localized market (or national
 market if applicable). This section should discuss
Now that the summary of the business has beenhow many people live in your area, the anticipated
provided, it is time to provide a brief overview ofnumber of people that would require the use of
the owner of the business. An example paragraphDay Care Centers, the median household income
summing up the owner is as follows:of people living in the area, poverty line statistics,
 and any applicable laws that would apply to your
Mr. Doe is a highly experienced business personoperation of Day Care Centers.
that has years of experience regarding the direct 
ownership and management of business. He will beCompetition
able to effectively bring the operations of the 
Day Care Center, Inc. to profitability while ensuringMany people that are developing new businesses
that the business loan's payments and itsor expanding existing businesses often feel that
covenants are met at all times.their business does not have any competition or
Financial Statementslimited competition at best. However, this is
 almost never the case. Unless you have
The most important thing to your lender whenre-invented the wheel – you will have
applying for a business loan is how you intend tocompetition. When applying for a business loan,
repay the bank. In this section of the businessyou should clearly showcase your competition in
plan, you should provide an overview of theyour business plan. This is especially important to
finance's of the business discussing the anticipatedyour banker as they will be able to gauge your
revenues, expenses, and profits/losses. You canability to be successful in your targeted market.
also discuss the applicable collateral within theMany business loan underwriters will aggressively
business plan that will be used to secure yourconfirm that competitive nature of your local
business financing.market and your local industry.
  
Expansion PlansWhen drafting this section of the plan you should
 heavily discuss the competitive advantages that
One of the most important aspects of youryou intend to have over your competition.
business plan is how you intend to expand the 
business over a three to five year period. BanksMarketing Plan
and finance companies always want to see that 
the business will experience a moderate to strongIn addition to all of the above information that we
level of growth. This is especially true in businesshave covered, your business loan officer is also
lending because as your business grows the cashgoing to want to know how you intend to market
flow that secures your business loan will decreaseyour business to the general public. Most people
proportionality against your monthly creditdo not quite understand how to effectively
obligations. An example of how this is stated is asmarket their business outside of prominent
follows:signage or flyer distribution. When applying for a
 business loan (again in this difficult lending climate),
The Day Care Center will continue to expandyour banker is going to want to see that you
through organic means including increasing thehave a clear methodology of how you intend to
Company's advertising budget via themarket your services or products to the general
reinvestment into the after tax cash flows of thepublic. In this section of the business plan – we
business. Additionally, if the business is highlywill overview how to showcase your services
successful then the Company may seek toproducts to the general public.
establish additional Day Care Center locations 
after the third year of operations.Marketing Overview Example
  
 - The Day Care Center will place prominent
The Financingsignage on the facility to draw a significant
 amount of foot traffic.
Use of Business Loan Proceeds- The business will maintain listings in the Yellow
 Books.
In this section of the business plan you should- The Day Care Center will also maintain an
focus on how the proceeds of the business loaninternet website that showcases the Company's
will be used. An example of this would be asoperations, hours of operation, and relevant
follows:contact information.
 - The Day Care Center will also work closely with
- Day Care Center Establishment - $50,000local schools for referrals to the Company's
- Day Care Center Licensure and Professionalservices.
Fees - $10,000 
- Working capital - $40,000Marketing Strategies Overview
 Additionally, you will be required to further drill
Management Equitydown (in your business plan) how you intend to
In this section of the business plan you shouldimplement your strategies when you launch or
discuss the percentage ownership of the businessexpand your business's operations. In this section
among the owners of the business. For example:of the business loan and business plan documents,
 you should amplify the bullet points from the
Mr. Doe will own 100% of the Day Care Center.section above. For instance:
  
Board of DirectorsThe Day Care Center intends to use a number of
 strategies that will create instant traffic and
When applying for business financing, the bank willcustomer flow to the Company's location. These
also want to know who serves as the board ofstrategies include not only using prominent facility
directors. For small businesses, usually the ownerand road signage, but also distributing flyers to
serves as the director of the business. Anpeople that fall into he Company's targeted
example of how this is worded:demographics. The business will also regularly take
 out advertisements in localized newspapers that
Mr. Doe will be the sole director of Day Careshowcase the Company's hours of operations,
Center, Inc.day care center services, and other information
 relating to the operation of the Day Care Center.
Exit Strategy 
 The business will also maintain a highly informative
Any bank or financing company is also going towebsite that showcases the Day Care Center's
want to know what you intend to do with theservices, its hours of operation, licensure
business over a set period of time. Many businessinformation, and other relevant information in
owners will develop and expand a business withregards to the Company's services. This website
the intent to sell the company to a third party atwill be listed on major search engines such as
a later time. When drafting this part of theGoogle as many people now use the internet to
business plan you should focus on what youlocate local businesses such as Day Care Centers.
intentions are in regards to potentially selling theThe business will also develop ongoing referral
business. This is often worded as:relationships with local schools that have children
 that need after-hour childcare needs.
Mr. Doe would most likely sell the Day Care 
Center to a third party for a significant earningsThe Financial Plan
multiple. Day Care Centers usually sell for 
approximately one to three times earnings givenBeyond any other part of your business loan
the financial strength of the business. In thisapplication or business plan, the financials section
event, the business would be sold by a businessof these documents are what matters most
broker and the business loan sought in this planwhen applying for a business loan or any other
would be repaid according to the covenants oftype of credit facility. Ultimately, this section of
the business loan agreement.the business plan showcases not only what your
 anticipated profitability will be, but also how you
Products and Servicesintend to repay the funds that you have
 borrowed through your business financing facility.
When developing a business plan that isAn example of how this section is structure is as
appropriate for obtaining a business loan or otherfollows:
business credit facility you need to clearly 
showcase the services or products that you willAssumptions
be offering to the general public. An example of 
how this section is worded goes as follows:- Day Care Center, Inc. will have an average
 annual growth rate of 10% per year.
As stated in the executive summary, the Day- Mr. Doe will acquire $100,000 through a business
Care Center will provide a broad spectrum ofloan in order to launch the operations of the
daycare services to the general public includingbusiness.
round the clock support for parents that cannot 
care for their child on a full day basis. The DayProforma Financials for a Business Loan
Care Center will serve meals, provide general 
education services, and provide transportationNow it is time to showcase how you intend to
services for children when needed.repay your loan, generate a profit, and increase
 the book value of your business over a three to
At this time, the business is seeking to obtain thefive year period. has developed an easy to use
appropriate licensure to ensure that the businessfinancial model that you can use when drafting out
can commence operations as soon as the Daythe financial model for your business plan and
Center receives the financing sought in thisbusiness loan application.