Free Day Care Center Business Plan

Free Day Care Center Business Plan for Loans

Obtaining Business Financing

 

When obtaining a business loan for a day care center business, it is imperative that you have a properly structured business plan that will assist you in showcasing how you intend to operate your Day Care Center, how the business will operate, how you intend to market the business, the anticipated financial results of your company, and how you intend to repay your debt obligations. This sample loan business plan will provide you with the framework that you need in order to acquire a business loan for starting or expanding this type of business.

 

Executive Summary

 

Introduction

 

When obtaining a business loan for a day care center, it is imperative that your business plan has a clear and concise executive summary that provides an outline of what are seeking to accomplish, how much capital you are seeking to raise, the management biography of the business owner, and an overview of the anticipated profit and loss statements of the business. Here is an example of how the title paragraph should be written:

 

Day Care Center, Inc. (“the Company”) is seeking a business loan of 0,000 in order to launch the operations of a day care center business that will be based in San Francisco, California. The Company was founded in (Insert Year). The business was founded by Mr. John Doe.

 

Products and Services

 

In the next segment of the business loan and business planning document, you should showcase the products and services that you will be providing to the general public. For instance:

 

The Day Care Center will provide round the clock childcare services to the general public of San Francisco. The business will serve meals, provide basic educational services, and after-hours care services for parents that need assistance caring for their children during daytime hours. At all times, the Day Care Center will remain within the letter of the law regarding the sale of Day Care Services especially as it relates to hiring individuals that work with children.

 

Business Loan Terms

 

Now it is time to discuss the anticipated terms of the business plan that you are seeking. An example paragraph of how this is stated:

 

At this time, Mr. Doe is seeking a conventional business loan in the amount of 0,000. The interest rate, loan terms, and loan covenants are to be determined during negotiation. However, this business plan assumes that the business will receive a seven year business loan with a seven percent interest rate due on the outstanding principal balance.

Management Biography

 

Now that the summary of the business has been provided, it is time to provide a brief overview of the owner of the business. An example paragraph summing up the owner is as follows:

 

Mr. Doe is a highly experienced business person that has years of experience regarding the direct ownership and management of business. He will be able to effectively bring the operations of the Day Care Center, Inc. to profitability while ensuring that the business loan’s payments and its covenants are met at all times.

Financial Statements

 

The most important thing to your lender when applying for a business loan is how you intend to repay the bank. In this section of the business plan, you should provide an overview of the finance’s of the business discussing the anticipated revenues, expenses, and profits/losses. You can also discuss the applicable collateral within the business plan that will be used to secure your business financing.

 

Expansion Plans

 

One of the most important aspects of your business plan is how you intend to expand the business over a three to five year period. Banks and finance companies always want to see that the business will experience a moderate to strong level of growth. This is especially true in business lending because as your business grows the cash flow that secures your business loan will decrease proportionality against your monthly credit obligations. An example of how this is stated is as follows:

 

The Day Care Center will continue to expand through organic means including increasing the Company’s advertising budget via the reinvestment into the after tax cash flows of the business. Additionally, if the business is highly successful then the Company may seek to establish additional Day Care Center locations after the third year of operations.

 

 

The Financing

 

Use of Business Loan Proceeds

 

In this section of the business plan you should focus on how the proceeds of the business loan will be used. An example of this would be as follows:

 

Day Care Center Establishment – ,000
Day Care Center Licensure and Professional Fees – ,000
Working capital – ,000

 

Management Equity

In this section of the business plan you should discuss the percentage ownership of the business among the owners of the business. For example:

 

Mr. Doe will own 100% of the Day Care Center.

 

Board of Directors

 

When applying for business financing, the bank will also want to know who serves as the board of directors. For small businesses, usually the owner serves as the director of the business. An example of how this is worded:

 

Mr. Doe will be the sole director of Day Care Center, Inc.

 

Exit Strategy

 

Any bank or financing company is also going to want to know what you intend to do with the business over a set period of time. Many business owners will develop and expand a business with the intent to sell the company to a third party at a later time. When drafting this part of the business plan you should focus on what you intentions are in regards to potentially selling the business. This is often worded as:

 

Mr. Doe would most likely sell the Day Care Center to a third party for a significant earnings multiple. Day Care Centers usually sell for approximately one to three times earnings given the financial strength of the business. In this event, the business would be sold by a business broker and the business loan sought in this plan would be repaid according to the covenants of the business loan agreement.

 

Products and Services

 

When developing a business plan that is appropriate for obtaining a business loan or other business credit facility you need to clearly showcase the services or products that you will be offering to the general public. An example of how this section is worded goes as follows:

 

As stated in the executive summary, the Day Care Center will provide a broad spectrum of daycare services to the general public including round the clock support for parents that cannot care for their child on a full day basis. The Day Care Center will serve meals, provide general education services, and provide transportation services for children when needed.

 

At this time, the business is seeking to obtain the appropriate licensure to ensure that the business can commence operations as soon as the Day Center receives the financing sought in this business plan.

 

 

Industry and Market Analysis

 

The Current State of the Economy

 

It is important to let your financial institution know that you are well apprised of the financial situation of the general economy when you are applying for a business loan. This is especially true in today’s environment where lending has become more difficult and will remain more difficult in the foreseeable future. Specifically, you should gear this section of the business plan analysis towards the industry that you are operating within. For example:

 

The current economy has remained difficult over the past few years. However, Day Care Centers typically operate with a strong level of economic stability as parents will continue to require to have their children cared for on a regular basis despite the current state of the economy. As such, the Day Care Center will be able to remain profitable and cash flow positive during any economic climate.

 

The Day Care Center Industry

 

In addition to providing your business loan officer with an understanding of the general economy, it is important that you showcase that you have an equal understanding of the industry in which you are operating within. As such, you will need to provide you business loan institution of a brief overview of your industry and any potential changes that may affect the way that your company does business. An example of how an industry overview is as follows:

 

There are over 62,400 childcare establishments in the United States. These businesses produce over billon dollars a year in gross receipts. Additionally, the business employs over 628,000 people, and generates payroll figures of .2 billion dollars a year. Approximately 42,000 of these businesses operate as for profit businesses with the remainder of these companies providing services in a not-for-profit setting, such as a religious institution.

 

The industry has experienced a tremendous rate of growth over the last ten years. The industry from 1999 to 2005 experienced growth of more than 18% over the five year period. This industry

Article Body:
Why is it that the Bill Gate’s of this world are rich and famous? What secret do they know that the rest of us don’t? If you study their lives closely, you’ll discover the rich and famous have certain habits that attribute to their success. Successful people are very careful about how they spend their time. No matter how you slice it, we all have 24 hours in a day, so the key lies in learning to use our time wisely. Below are some ways you can dramatically increase your productivity through more effective use of your time.

1. MONITOR HOW YOU CURRENTLY USE YOUR TIME: If it seems like your day slips by all too quickly, try creating a log of your daily activities. Once you see where you are spending your time, you can identify and focus on the activities that provide the greatest returns for you personally and financially. Start your log by writing down what time you wake up, get ready, and begin work. Calculate how much time you spend on individual activities such as email, phone calls, and client work.

=> FREE TIME TRACKING TOOL: Here’s a personal time survey to help you discover how much time you spend on various work activities: Personal Time Survey Tracker

2. CALCULATE HOW MUCH YOUR TIME IS WORTH: Time is money. Knowing how much your time is actually worth can help you make better decisions as to whether you should perform a task or outsource it. For instance, if your time is worth $200 an hour, you are far better off paying someone $30 an hour to edit your newsletter. You can “bank” the other $170 per hour by spending your time on profit making activities. Also take the time to determine how much time a day you need to spend on billable activities to make your desired profit. I try to spend 1.5 hours a day on money making projects.

=> FREE TIME COSTING TOOL: Here’s a time costing worksheet to help you determine how much you are actually when you subtract the expenses. Time Costing Sheet

3. CREATE A DAILY SCHEDULE: Don’t start your day without a to do list. Make a list of tasks and categorize them into business building activities, client activities, and personal items. Then break bigger unmanageable projects into smaller “doable” chunks so they less intimidating and are easier to accomplish.

=> FREE DAILY TO DO LIST: Try this free all inclusive WebMomz To Do List

4. PRIORITIZE: Have more to do than hours in the day? By prioritizing your tasks, you’ll make sure that you are tackling the items that matter most. Create a system that works for you. One standard way of prioritizing is to mark items with A, B, and C.

Ask yourself these key questions:

What items MUST be done today?
Which items can be rescheduled?
What can be delegated?
Which tasks most closely match my priorities and goals?
Which items can be eliminated?

5. LEARN TO SAY NO: Are you adding one more item to your never-ending TO DO list? You are in control of your time. Be strong and uphold your personal boundaries. When you are well rested and treat yourself and your family to the time off you deserve, you’ll feel happier and more productive when it’s time to go back to work. **

Before you say yes, ask yourself these questions:

Do you really have the time or energy to do that extra task?
Do I like this customer? Are they good for me?
Will it be profitable?
Does it invade on your personal time?
Does it involve doing something you enjoy?
Does it fit in with your list of priorities and goals?

6. REMOVE DISTRACTIONS AND TIME SUCKS: Time sucks are lurking everywhere like viruses. Think about which activities are eating up your time. For me personally, these items include email, social calls, and telemarketers. I “conquer” the email demon by shutting down my Outlook when I am working. When a family member calls during work time, I politely ask if I can call them back during the afternoon and remind them of my work hours. Caller ID valiantly saves me from the “would be” telemarketer time thieves. With one glance, I can quickly differentiate telemarketers from important client calls.

7. STICK TO THE PLAN: Try not to get sidetracked from your plan. One of my friends has a motto, “A lack of planning on your part does not constitute an emergency for me”. It’s a smart one to live by. Unless it’s a true emergency, or you are being paid “rush” time, you probably don’t need to squeeze a last minute request in today. Also, by assigning yourself project deadlines, you can keep on top of projects and avoid those dreaded last minute emergencies.

8. CHOOSE AN INSPIRING PLACE AND TIME: We are all “built” differently. Do the tasks which take your most “brain power” when you are at your prime. Are you a morning person or do you work best burning the midnight oils? Create an ultimate work haven that is clean, distraction free, and inspiring. My office overlooks my flower garden and is right in the heart of family activity. As I glance to the right, our Angel fish “Spike” proudly parades across the fish tank. In front of me, Monet has a glorious display of peach poppies in a field. Above me, Monet is painting a vivid portrait of his flower garden. In the living room, my son is softly singing the Spiderman theme to himself – music to my ears!

9. BUNDLE LIKE TASKS TOGETHER: As you work through your daily list, try to chunk your tasks into like activities. By creating a separate “chunk” of time for answering email, invoicing, making return phone calls, you’ll save time and mental energy.

10. AVOID INTERRUPTIONS: Trying to do the same thing over and over again with interruptions can be maddening. Once you start a task, try to finish it to the end. If something comes up that you need to remember or do, unless it’s urgent, simply add it to your list and continue on with your current project.

11. BE ORGANIZED: When things are tidy, it saves you time and frees you to focus on the task at hand. Digging through a pile of papers and finding a squished Twinkie isn’t very conducive to the work experience. Follow your own organizational style. PHONE LISTS: For instance, I arrange my phone lists into groups according to how I use them: friends, family, doctors, my children’s playmates, etc. I also list people in my phone book that I talk to on a first name basis by their first name alphabetically. For instance, I list my mom under “M” and my brother under “T” for Troy. “D” has a list of all my doctors. This works for me, because it’s how I think.

EMAILS: Another time saving idea is to color code your emails. In my personal color scheme I use one color for clients, one for newsletters, and another for my coworkers. You can also group your emails using categories and folders.

ONE CALENDAR MEETS ALL: Keeping track of work appointments, Brownie meetings, and committee meetings can be very difficult. My secret to keeping on top of family and work appointments is to schedule them all on one calendar.

DAYTIMER SPECIAL SECTION: Create a special section of your Daytimer just for special interests, hobbies, or kids. My husband keeps one with all his stock info. I have a special kid section with phone numbers for Brownie leaders, playmates, doctors, school contacts, bus number and other items.

SUMMARY: Why wait for success when you can literally schedule it! By mastering your time, you can accomplish much more with less effort. Be choosey about how you spend your time. Focus on activities which most closely match your goals. By taking time to monitor, measure, and manage your time, you will enjoy an abundance of success and happiness.

As a broker, there is an unwritten rule that you don’t steal clients from a co-worker because we all work on commission. Our office phone system works in such a way that if a desk is unmanned, the call will be transferred to another desk until it is picked up. When I get a call of this nature, I can pull up the investor’s information and see exactly what has portfolio holds and who he normally deals with. If the client is long term and has a preference for a particular broker, I simply tell them that I’ll have their broker call them right back. The one time I decided to ignore this rule, it ended up causing a big scene.

Although we all have stocks to push, there is a degree of flexibility in what we recommend our customers buy that differentiates each of us. Therefore, what I recommend may be in stark contrast to what the guy sitting next to me might recommend. One day a call comes across my desk from a big client. This client is so big, in fact, that he is the primary bread and butter for one of my co-workers. The day the client called was the last day of a weeklong vacation my co-worker had taken, so I knew he wouldn’t be able to call him back until the next day. By coincidence, I was pushing a stock that had just reached it’s one month low, but that I knew was primed to resurge. I was as sure of this stock as any I’d ever recommended before. Still, I knew I would catch major hell from everyone for making a commission off of another broker’s primary client. I decided I couldn’t let the opportunity pass the investor by so I simply told him that his broker had instructed me to tell him about the stock I was sure of if the client called, and that his broker would be back tomorrow. The client bit on the stock and made a major purchase. I thanked him, filled out a commission sheet with my co-workers information on it (so that he would be the one to benefit from my work) and forgot about it. I figured I might get a nice “thank you” upon his return…especially if the stock performed as I expected and the client was happy. At the end of the day, I checked the stock to find it had climbed an astounding three points. I wasn’t thinking of the sale to my co-worker’s client as I, myself had made several sales of it to my clients and was happy that they were going to profit handsomely from my recommendation.

The next day, I came in to find my co-worker (yes, that co-worker) standing at my desk. He had seen his client on my caller ID and proceeded to throw a “class A” fit in front of God and everybody. I simply stood there while he lit into me as though I had just devoured his firstborn. Not only did he scream at me, several others joined in, thinking I had sold to his client on my behalf. I didn’t say a word. I knew that he, nor they, had discovered that I put the sale under his name and that the stock had performed extremely well. He said his last and stormed off back to his desk.

Every morning, we get a printout of the previous day’s activity around 9:00 am. That’s usually about the time I go down to the cafeteria for a cup of coffee. When I returned, there was my co-worker, standing at my desk and smiling from ear to ear. Not only had he made a nice commission without even being at work, his client called to thank him while I was getting coffee. I just smiled right back, knowing he had to be feeling about two feet tall. I had lobster for lunch that day, and guess who paid.

I love caller ID.