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EXECUTIVE SUMMARY

The proposed project is establishing TheyCare Child Care Center in #38 Apitong Street,

Marikina Heights, Marikina City. It is a daycare center, managed and owned by six college

graduates of BS Accountancy, to provide child care and additional education for children whose

parents must work or for some other reason cannot care for their child on a daily basis.

It will target Rancho I and IV Estate Marikina Heights inhabitants for it will be a unique

child care center in the barangay. The initial investment is PHP 1,200,000 which will cover all

necessary expenses for five years.

The owners will rent the residential property with a projected area of 100 square meters

with a rate of PHP 6,000 per month.

The main assumptions consider conservative number of children enrolling at the center.

The projections are taken over a period of five years. TheyCare is expected to earn an average

annual net income of PHP 1,261,116, an average annual rate of return of 105%, and a payback

period of 1 year and 1 month.

The child care center is expected to positively reshape the economic and social

environment of Marikina Heights, Marikina City. It will offer five job opportunities and will

provide a facility for children allowing the parents from Marikina Heights as well as neighboring

barangays an opportunity to work and earn a living.

The TheyCare Childcare Center is a service activity that provides temporary child

custody care to children from 1-6 years old who need supervision when their parents or

guardian are not around at the moment. Also, the day care supplies additional knowledge,

personality development, and to prepare them for preschool. The center’s location is at 38th

Apitong St. Marikina Heights, Marikina City.

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PRODUCT OR SERVICE

The group decided to pursue a service providing business for toddlers aged from one to

six. The company is named “THEYCARE, We Care.” In this business, the day care will serve as a

second home to children who need supervision that their parents cannot provide at the

moment. Also, the day care will supply basic knowledge to prepare them for preschool and the

likes. And lastly, the day care also provides fun for the children while learning.

The Day care’s vision is to provide superb care to children who need supervision and

guidance when their parents are busy and build the day care as their second home. And their

mission statement is to create the only day care center in (area) for children whose parents are

at work or away from home. The day care is also committed to provide the children their daily

fundamental needs and furnish them basic knowledge to prepare them for preschool, but at the

same time offer activities that will give them fun and enjoyment.

TheyCare offers a variety of service that the customers may avail. TheyCare provides

affordable, high-quality, developmentally appropriate care for children ages 1 to 6 years old

with focus on each child’s age and ability. Children will receive loving care with creative and

innovative programs designed to stimulate their social, cognitive, physical, and emotional

growth. We provide full-day and part-time child care for children whose parents must work or

for some other reason cannot care for their child on a daily basis.

TheyCare offers full-day and part-time child care for children whose parents must work

or for some other reason cannot care for their child on a daily basis. We have different study

materials, learning objects, playing toys, kiddie cots and child-friendly tables and chairs. It also

has a wide range of tables where the toddlers could use to enjoy themselves and learn at the

same time. It will be a mixture of quiet and active activities for each age level. We have a writing

center, reading center, arts and crafts center, children work desk and toddler activity tables. We
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provide the children creative and innovative programs designed to stimulate their social,

cognitive, physical, and emotional growth. It’s not all about playing or sleeping, children are also

discovering and learning. We provide these services to help get these children to recognized

schools. The day care will also provide superb care of the children in their custody. We will

provide service from their home to the day care and also vice versa. We also offer healthy

snacks for the kids to enjoy.

The group conducted field work to obtain different information to verify the efficiency

and effectiveness of the group’s plan for the day care center. The group visited a day care center

near the vicinity to observe the environment and their activities. The group also based their

verification through the examination of the people: the customers, end users and employees.

The group also interviewed the owner of the day care to inquire about management of the

business and its condition in the industry. The group also asked for suggestions and opinions

about plans and ideas for the study to attain more knowledge about the business.

The company will depend on area exposures and client referrals. In order to invite more

customers, TheyCare Child Care Center will have advertisements that will surely catch their

attention such as brochures and tarpaulins. The brochures will be given out to schools, activity

centers and homes, while the tarpaulins will be posted into places that can be easily seen by the

interested customers. With regards to client referrals, we plan to maintain our reputation

among our clients by providing them high-quality service that will cater their every need. The

company also plans to team up with the schools nearby for promotions. We plan to promote the

day care center during activities that include parents’ participation such as Parent – Teacher

Conferences, Family Day and School Fairs.

TheyCare is a private day care center that caters from middle-middle to upper-middle

class. Our rates are charged approximately for high – end, high – quality educational and care
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giving services we offer. It will balance with our expenditures. We will be price competitive in

the market we serve; however, we will not subscribe to the “low price leader” concept.
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INTENDED MARKET ENVIRONMENT

Rancho Estates I and IV are located in Barangay Concepcion II in Marikina City. Rancho

Estate I contains 155 households and Rancho Estate IV contains 295 households. Most

household in the area are comprised of families whose children are either in their early up to

their teenage years. Aside from the immediate family, some families have grandparents, aunts

and uncles living with the family. The average number of people in each family ranges from

three to six.

Families in Rancho Estates I and IV located in Marikina City mostly belong to the middle

class, specifically families belonging to the middle-middle class and upper-middle class. Most

families in Rancho Estates I and IV have their own family house and family cars and have

reasonably sustaining amount of flexible income. Families are able to afford quality education

for their children. Most of them are able to study in private schools and older children in

families seem to have finished or are currently taking college level education. Parents of families

also have stable jobs which reasonably provide for their basic needs. Families in these estates

are able to provide for their fundamental needs with their family’s income and then use the

remaining part for discretionary spending or splurging afterwards. Almost all of them are able to

invest in healthcare, buy consumer goods, spend on extra-curricular or recreational activities

and send their children to private schools.

The groups target market are the families in Rancho Estate’s I and IV. The day care

center has both end-users and customers. Customers are the ones who will approve and pay for

the products/services that the center will be providing. The end-users on the other hand are the

ones who will make use of the products/services of the center. They will be the ones who will

make the most out of the value of the customers financial remuneration. Since the parents are
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the ones who financially provide for the services that the day care offers, they are considered as

the customers of the day care center. The children that the center caters to are the end-users of

the company because they are the ones who primarily benefit and utilize of the services.

TheyCare has a home-like setting and safe environment that is a perfect place for

children to learn, play, laugh, and enjoy. We have different study materials, learning objects,

playing toys, kiddie cots and child-friendly tables and chairs. It also has a wide range of tables

where the toddlers could use to enjoy themselves and learn at the same time. It will be a

mixture of quiet and active activities for each age level. We have a writing center, reading

center, arts and crafts center, children work desk and toddler activity tables. TheyCare also

provides nutritious breakfast, lunch and afternoon snack for the children.

The center follows the basic rules of safety. Our toys and equipment are always in good

repair, all medicines and other hazardous substances are out of reach, and beddings are clean. A

fire extinguisher is in place and working, a first aid kit is close at hand. The center is also secure

from strangers who pass by. We have clearly established regulations for everything from

operating hours to how to handle emergencies.

Day care centers are much more than baby-sitting services. The instructions received in

day cares definitely affect the children’s ability to learn and properly adjust as they progress on

through their years of formal education. Children are cared for and educated by trained,

qualified, dedicated educators and staff. Our employees are educated, at least reached tertiary

educational level either finished or currently studying, and have emergency training. They also

acquire good interpersonal and communication skills. We pay our employees well and give them

benefits like paid vacation time, health insurance, and an education allowance.
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Based on the group’s observation, the kind of families composing our primary target

market are mostly the typical modernized families with both parents working while leaving their

children with either their hired guardians or other family members. These parents are also

family-oriented that’s why they carefully choose who to trust in taking care of their children.

The TheyCare Center is the only registered private day care center in the vicinity. Other

day care centers around Rancho Estate are considered as direct competitors but TheyCare have

advantages against them since one is a semi-private day care. Preschools around the area are

also TheyCare’s competitors but they are considered indirect because they don’t offer all the

facilities a day care does. Being a registered private day care is an advantage because the target

market of the business belongs to middle-middle class to middle-upper class.

Another opportunity is that the target market is near the day care. TheyCare Center is

the nearest day care around the Rancho Estate and the families can learn about the center

easier and faster. It will also be more convenient for the parents and guardians to bring their

children or visit them during day care hours. Thus TheyCare Center will have competitive

advantages regarding its facilities, security and location which are main issues of the parents for

their children.

Based on the group’s observation, the kind of families composing our primary target

market are mostly the typical modernized families with both parents working while leaving their

children with either their hired guardians or other family members. These parents are also

family-oriented that’s why they carefully choose who to trust in taking care of their children.
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COMPETITION

As for competition, there is a daycare center located within the barangay of Marikina

Heights where TheyCare Child Care Center is located. It is headed by Ms. Lilia C. Ola and is semi-

private under the Department of Social Welfare and Development (DSWD). It has an address of

90 SE Narra Street, Marikina Heights that is four streets away from our daycare center and can

easily be seen. It is a small house—approximately five square meters—converted into a

classroom. The daycare under the DSWD caters to 50-100 upper-lower class and lower-middle

class families that have children with ages 3 ½ - 4 ½ years old within the area. They use a certain

curriculum designed by the DSWD. They have a different target market so they do not think

TheyCare Child Care Center as a threat.

The two preschools to be found near our area, considered as indirect competition, are:

ATM House of Kids and Smallville Montessori. Preschools provide different services from

TheyCare. TheyCare Child Care Center is more focused on taking care of and watching over the

children while preschools give more importance on the academic field. We provide a more

home-like atmosphere where the children are free to explore, play, laugh, and learn. Parents are

busy nowadays with the fast-paced changing world and they usually leave their children to

babysitters. We do not just provide qualified babysitters but also additional education and

facilities that will help children develop as a better well-being and discover their talents.

Moreover, we give importance to appropriate values that will help a child face reality. TheyCare

also provides service anytime between 8 o’clock in the morning to 5 o’clock in the afternoon.

Unlike preschools, we are more flexible with regards to time and this will give the clients more

options in enrolling their children to our daycare. We also have a special program where a child

can have a one-on-one session with the child care provider for more intensive nurturing.
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ATM House of Kids is located in 157 Dao St., Marikina Heights. It is a residential house of

Dr. Danilo Tuazon. The preschool is in an open-area of the front yard of the house. It can hold

two classes at the same with 10-20 students per class. The preschool headed by Ms. Eugenia S.

Grefal is a mission school sponsored by a married couple from Japan. It caters to upper-lower

class and lower-middle class families with children ages 1 ½-6 years old within the area. All the

teachers are college graduates of BS Education but not necessarily preschool educators. Ms.

Grefal hires based more in the heart of the person. They use the curriculum for preschool

education that develops the whole personality of the children. ATM House of Kids has a parent

enhancement program where they talk to parents about the situation of their children by having

conferences. They also hold a medical-dental mission every year. ATM House of Kids is also a

Christian organization that offers a Bible Education for children and youths during summer

vacation. The preschool doesn’t think of TheyCare child care center as a threat since they have a

different target market and is already established. ATM House of Kids depends on referrals and

word of mouth. They now cater from 20 students to 55 students. Most of their students achieve

academic excellence in private/public schools for higher education.

Smallville Montessori is located in 31 Pinto St., Rancho Estate I Concepcion Dos,

Marikina City. It offers children not only a fine preparation for big universities but also an even

better preparation for life as an adult. It caters to children ages 4-6 years old. The teaching

method used is the Montessori Method with a tuition fee range of PHP 65,000-PHP69,000. The

Teacher-Student ratio is 1:8. SmallVille uses educational materials as part of Montessori

curriculum. Its flagship program is reading. It has internationally certified administrators and

highly trained teachers to meet the Montessori standards. The facilities include state of the art

Montessori materials, fully air-conditioned room schoolhouse, totally equipped and innovative

kitchen for kids and modern child-sized furnitures. The group considers them as an indirect
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competition because of the difference in the services offered and its target market as well but

overall the pricing strategy is the main difference between Smallville Montessori and TheyCare

Center.

A home-based day care center is offering low barriers to entry in the industry. TheyCare

can only identify three barriers to entry the industry; these are sunk costs, capital and

advertising. Sunk costs are costs that cannot be recovered when the TheyCare incurs a loss or

decides to shutdown in an earlier period than planned. The sunk cost that the day care may

occur are licensing process and complying with the day care regulations. These are business

permit, health permit, SEC registration and BIR registration that TheyCare will pay and apply for

to affirm customers of its competency and safety. Second on the list is the capital requirements

needed for putting up the day care. Opening a day care center can be moderately capital

intensive; however, our day care center is home-based the cost to open will be much less than a

commercial location. The cost to open a day care will also depend on furniture such as chairs,

tables and book cases. Purchasing cots for sleeping, toys, playground equipments and books can

represent a significant expense. Outfitting the day care with appliances and food can also be

costly. Since the capital of the owners are borrowed directly from their parents given that it will

yield the same interest that a bank may offer in a loan so that the value for money and the

opportunity cost of their parents may incur will be even out. The owners can only borrow small

amounts of money and not up to millions to put up this business, they should learn to budget

the limited capital they got and make the business a success as much as possible to pay back the

loan and start on their own capital. And lastly, the third barrier to entry is advertising. The

advertising for our day care center is not costly but it should be intense. Since the day care is

around the Rancho Estate Area, the families should be really informed about the existence of

the day care in order for to avail our services since most of them are working families they do
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not have time to search for a day care. An intense advertising and marketing strategy is needed

to make our presence known to our intended target market.

We offer services that other competitors do not. TheyCare will have bus service and

nutritious meals served. The bus service is optional if the clients will avail it or not. It is for

additional convenience we offer to our clients. We saw the concern of the parents regarding the

means of accessibility of TheyCare. The bus service is only for clients that live within 2-kilometer

radius of TheyCare. The nutritious meals are included in regular fees to be paid. We will serve in-

between snacks and lunch to the children. We will follow a strict nutrition program to help the

children have balanced nutrition that can influence their moods, participation and

concentration.

TheyCare Child Care Center bus is a manual power-steering Hyundai Starex Club 1999

model. It can carry 8-9 students plus one driver and one child care provider personnel. We have

a three child seats available for students with ages two years old and below.

TheyCare Child Care Center will ask food recommendation from a nutritionist that will

be appropriate for the meals of children in the center. Our nutritious meals will be bought and

prepared by our hired cook. The daily menu will be prepared by the assigned food handler. Each

facilitator will have an assigned day of food handling. To prove that we serve nutritious meals,

we base our food on the basic food pyramid for kids recommended by the nutritionist. We

cannot strictly follow the basic food pyramid since the children do not eat all their meals in

TheyCare but we help them in having a balanced nutrition. Neither chips nor chocolates will be

served in TheyCare. Any allergies of the children will be noted.

The parents can be sure of the safety and security measures we give to the children. We

have a security guard that knows necessary technical and communication skills. We have
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established policies with regards to cleanliness and emergencies. We will apply the early

childhood care and education (ECCE) curriculum with innovative teaching styles to the children.

We have qualified staff in a warm and stimulating environment that will surely cater the needs

of the children. Our facilities are well-maintained and diverse for children with different ages

we accommodate.

Since TheyCare is not threatened by our present competitors due to different target

market, our main concern is on possible entry of new players. There is a possibility that new

competitors will copy the services offered in TheyCare Child Care Center. But by the time the

competitors will copy our service, TheyCare will already have an established name through

continuous advertisements, referrals, and word of mouth. We have the advantage of being the

first one to offer this kind of service in the area. It will also be a high risk for the new

competitors to imitate our services because it will require large investment.

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INDUSTRY

In the Philippines, day care businesses are in included in the slow industry growth rate

but with a high relative market share. There are lots of people who venture into the day care

business but it is relatively slow compared to other business that boosts right away. It has a slow

growth because the day care should have a good strategic location to earn profit. It also should

have an established name or it has an intensive marketing strategy to attract customer and it

only serves a particular market segment that can afford the services of a day care. The market

segments that the day care businesses usually cater are to middle-middle class to upper middle

class types of families.

It has a growth industry and therefore offers great profit potential for those who start

out in the right location and position themselves correctly in the market. The industry has grown

rapidly over the past few years because of culture changes and shows no signs of slowing. There

are shortages of quality day care facilities in many areas especially in the location that the day

care will be situated. The area only has very few day care centers that can meet the high

expectations of parents in the area with a day care center, it opens a great opportunity among

the one who are planning to establish a day care business.

The community needs day care providers that meet quality standards are providing a

valuable service that will benefit their communities. The income potential is also growing as

parents demand a higher standard of care and are willing to spend more to ensure that their

child's early years are spent in a good environment.

In regards with the demand and supply factors and trends, the factors that affect the

supply of day care services are cost of services and expectations. The cost of services greatly
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affects the day care services business because the cost of establishing a day care is in the

category of midrange capital investment. It is costly to put up this kind of business because the

center should have the money to keep the business afloat for the next few months to cover up

expenses until it earns profit. Moreover, equipments for the center will eat up also most of the

capital that the partners invested because of its quite expensive prices. Even though, operating

expense is not that high, the cost of venturing to this kind of business is risky that is why the

value of the cost of production is much higher because there is greater possibility of the

investment to be watered. And lastly for the supply factor that affects our business it

expectations. Expectations in the day care business are not that high especially in the

Philippines. Since the Philippines is a very family-centered countries, parents chose to take care

of their own kids, teach them their early educations and not to entrust their kids to anybody.

But times have change, many families have both husband and wife to be the providers for the

families and less time are spent with their kids so expectations have grown throughout the

years. Expectations for a day care center seem to have risen because a high quality child care is

expected among the day care centers in the country. It has expectations of providing start-up

educations for kids, activities that they will enjoy and help them be more active and productive

kids.

For the demand factors and trends, these are the factors that affect our business:

income, quality, advertising and size of population. Demand factors are things that affect the

sales of our day care. First is income of the target market. Income is the money earned by

families through their employment and businesses. It is also one of the determining factors on

which bracket of family classes a family is included. The income of the target market is based on

the frequency of the customers and if they can afford our given services. It will determine the

number of possible customers that our day care will be accommodating.

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Second is the quality of service that the day care provides. The quality of child care

service can make a significant difference in the children’s development; it is given a much higher

importance by our customers in choosing our service. If it provides a high-quality care a higher

demand will be more probable. The quality determines the longevity of our customers and how

it will attract prospective customers.

Third on our list is the advertising factor of the demand factor and trend list. Advertising

is a tool for promoting a business and catapult it towards success. It is an action to help

persuade your target market in choosing our day care instead of the other alternatives they

have. It is a way of communicating to the public that we offer services that might address their

needs. An intensive marketing strategy will help our mid-range business in exposing our

business to our intended market. The marketing strategy provided by the group will help

generate customers and determine the demand for the kind of service we offer.

And lastly is the size of population. The size of population will greatly affect the demand

for our business because it will determine the number of customers that our business may

cater. If the size of population is big but it doesn’t have our intended market the population is

useless but even though the population is small but it will surely address their needs the

population will be useful for the business to help them earn profit.

The larger forces that affect our business are culture change, society, economy, and

consumer demand. Larger forces in the market represent the total influence of buyers and

sellers in the bigger picture of the industry in which the quantity of the goods and services

offered in a market. First is in the larger forces of the market is the culture change in the society.

The culture trend has been spurred on by the fact that more women are choosing to work

instead of remaining at home with their children. Working women would traditionally leave
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children with relatives but now it is common for aunts and even grandparents to also be

employed. Moreover, separations among families have been pervasive and it meant that

women are sometimes unable to take care of their children at home and have no choice but to

work to support their children and themselves as well.

Next among the larger forces that affect the day care business is the society. Nowadays,

society has been change drastically. Women are now more empowered to work and not to be

stay at home mom to take care of their kids. It has been more acceptable in the society that

women are now working and be providers as well.

Third factor is the economy. Economy nowadays is on a downhill slope. But even

though tough times and investing in the condition of our economy, the day care industry shows

no signs of slowing down and this growth trend looks set to continue over the next decade. Day

care has proven itself to be surprisingly resilient to recessions in the past. It is not easily affected

by the downturn of economy and proves to be a good business to invest to.

Lastly, on the consumer demand of the larger forces that affect the market, parents are

becoming more selective about the kind of environment that they want to leave their children

in. Most parents now understand that the first four or five years of a child's life are so important

as they highly influence the way that a child will learn and interact with others and their

environment as they get older. Daycare has become much more than babysitting as parents

have realized that it is important that their children are in an environment that stimulates

mental and physical development.

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BUSINESS MODEL

The business generates its revenue from services. TheyCare Child Care Center provides

second home to toddlers age from one to six by taking care of them and help them learn at the

same time. The center’s target market is Rancho Estate, specifically phases I and IV. They Care

also accept customers whose households are outside Rancho Estate.

TheyCare center operates eight hours a day, opens from 8 in the morning up to 5 in the

afternoon, with 12 to 1:30 at noon for lunch break. It offers different packages (see Table 1) for

those who want to avail one month of daycare service, consumable for 24 days per month, five

days a week and eight hours per day. These packages differ from the services included and their

respective rates. The first package offers regular service, the second is same only inclusive of

transportation fee, the third avails a special one on one study session and the last package also

offers study session but inclusive of transportation as well.

Table 1: Packages offered in They Care Childcare Center

PACKAGES Rates per month

(Whole day) (24 days Monday –Friday)
PACKAGE 1 P5,500.00
(w/o transportation)
PACKAGE 2 P6,700.00
(inclusive of transportation)
PACKAGE 3 P6,500.00
(one on one study session)
PACKAGE 4 P7,700.00
(one on one study session w/
transportation)

TheyCare childcare center also accommodates walk-in customers or those who will not

avail the packages offered at any time of the day. This kind of session has different rate (see

Table 2). The rate is exclusive of fees for transportation and food to let the customers choose
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what they want and need to avail. Transportation fee has two choices, one-way which will be a

service from either their home to the center or vice versa, and the other choice is two- way

which will be from house to the center and back. For toddlers aging 1-3 especially those without

guardians, the center provides child-seat in the vehicle for their safety. Availing TheyCare

transportation service can be through phone by calling the center’s hotline number.

They Care gives three meals a day: recess, lunch and snacks in the afternoon. All the

packages offered in the center are inclusive of the food. Those who will not avail the packages

will pay a fixed rate that is also inclusive of all the three meals. Customers are not allowed to

pay for only one meal per session because every session availed is equals to three meals

notwithstanding the length of their stay.

Table 2: Rates for Walk-in Enrollees

WALK-IN
Regular rate per hour P100.00
Transportation Fee One-way: P30.00
Two-way: P60.00
Food Fee P150.00

One on one sessions are offered and can be availed through packages 2 and 4. These

sessions are for parents who want their children to learn some of the basic education a child can

get. TheyCare center are open and ready to teach any topics that the parents want their

children to learn and become skilled at. Aside from the parents’ freedom to choose any subject

for their children, they can also get assurance that their child are well supervised because they

are taught individually and by one of the partners who have been trained in the government for

three months to provide services for the customers’ satisfaction.

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TheyCare is created to provide a quality of good service and to ensure that their

customer will get their satisfaction. It is also distinguished from other similar businesses by

offering more and better programs for their child’s advance learning and development. Listed

below are the programs offered for the children’s everyday activities. Children can try any of the

following programs, according to their interests and likes, in any time they want. These

programs are all included in every sessions availed and paid.

Programs Offered:

1. Free Play

- A free time for children to have fun and play any game of their choice, this is usually an indoor

activity. The day care basically provides for the toys and other fun learning materials that the

children would use.

2. Music and Movement

- This program would allow the children to express their selves through music and dancing. They

would be thought how to sing children songs, basic dance kinetics and other activity related

thereof. This program would help the child’s confidence development and discover their

passion for music and dancing.

3. Arts & Crafts

- Arts and crafts activities would teach the child the basics like cutting, pasting, drawing,

colouring, painting and do some art projects that they could bring home. This will help the child

express himself/herself and to assess their talent and interest in this area.

4. Visual Activity

- This program would be helpful for toddlers to early preschoolers because they will be

introduced and be familiarized with pictures of things, colours, letters, words, numbers and

others.
 P a g e | 20

5. Games

- Fun learning games would also be incorporated in the day care. The child would learn how to

follow rules and create cooperation and teamwork with his/her fellow playmates.

Writing

- The child would be thought how to write hold a pencil, write his or her name or even construct

words or sentences for children on early preschool stage.

6. Counting

- The basics of arithmetic and counting would also be thought on the child.

7. Story - Telling

- There would be story-telling time. They will have a chance to listen to stories being narrated by

the facilitator or teacher. Their comprehension, patience and level of focus would also be

assessed in this area.

8. Outdoor Play

- The children would also be allowed to play outdoor but within the premises of the day care.

They would also be thought some outdoor parlour games or just let them play in the day care

mini playground.

9. Special Program

- This is a one-on-one session of a child care provider with a child to help him/her in certain areas

he/she needs to develop. All the other services provided can be specially taught to the child if

he/she needs special attention.

For the programs and activities to be more effective for the children, TheyCare center

also makes available of learning materials. These materials are consist of those that are used for

programs offered such as art materials, toys, entertainment, etc. and those that are used for
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one on one sessions such us books and activity sheets. Below is the complete list of materials

available in the center.

Materials for the Child Center:

- Story books

- DVD sing-along and educational sets

- Audio CDs for children (Sing and dance, Nursery Rhymes, Lullaby)

- Wooden toy puzzles for kids

- Educational toys

- Learning flash cards (ABCs, Numbers, Colors, etc)

- Art materials for audio visuals (Cartolinas, Art papers, Scotch Tapes, crayons, colored

pens)

- Jumbo crayons, glue, safe scissors, colored washable markers, washable paints, chubby

brushes, jr. pencils, art papers, bond papers

Materials Available for Students:

- Activity sheets

- Coloring books

- Arts and Crafts Materials

TheyCare Center is strict about their payment rules and policies. Generally and

preferably, payment is accepted on a cash basis, but for availing packages checks are allowed.

For packages, reservation fees are accepted amounting one thousand pesos (P1,000) which will

already be considered as down payment for the month. If there is no reservation paid, down

payment will be fifty percent (50%) of the package rate for the month. The rest of the payment

will be collected and shall be paid on the last week of the package before the child leaves the

center. Any payment received by the center will be non-refundable.

 P a g e | 22

MARKETING AND SALES STRATEGY

The company will depend on area exposures and client referrals. The company will

depend on area exposures and client referrals. We would like to provide a good quality of

service that will satisfy fully our clients’ expectations. With this, we would be able to gain good

review for client referrals. In order to invite more customers, TheyCare Child Care Center wishes

to come up with creative print outs as advertisements that will catch their attentions such as

brochures, flyers and tarpaulins. The tarpaulins we will be ordering for the advertisements are

all colored using large format printing, with 3x5sq. Ft. size. Flyers and brochures are also

colored, printed in an offset printing technique. Flyers will be a 4.25x5.5” size, while brochures

are 21.59x27.94” tri – fold style. The tarpaulin shall include the name of the daycare center, one

attractive sentence (such as “Need a break from the kids?”), some snap shots of the rooms and

facilities of center, list of the services available, contact information and most importantly the

complete address or location of the daycare center must me clearly indicated. For flyers, the

name and complete address of the daycare center, one attractive sentence (such as “Need a

break from the kids?”), services available, vicinity map and contact information must be clearly

indicate. Brochures are almost has the same contents with the flyers, but with certain important

details like competitive advantages, a brief and attracting paragraph about the daycare center

and offered packages, additional services with rates. Flyers and brochures will be given out to

schools, activity centers and homes, while the tarpaulins will be posted into places that can be

easily seen by the interested customers.

In Rancho Estates I and IV, we plan distribute flyers and brochures at most everyday but

we prefer during weekends at the village parks and covered courts where parents with kids

usually go. Also, we plan to hand them out flyers to random households that are our target
 P a g e | 23

markets. In Circle Mall, a mini – shopping center near the daycare center, a lot of parents

together with their kids normally shop or eat there, especially during weekends. We will be

giving out flyers to random parents with kids who are 6 below. Supermarkets and fast food

chains within Brgy. Marikina Heights like Parco Selections, Puregold Supermarket, Seven Eleven,

Jollibee, Chowking, Red Ribbon, Goldilocks and KFC will also be our target places for giving out

the print ads. Schools nearby are another option where we can give out the flyers and

brochures. Nearby schools are Marist School, St. Scholastica’s Academy Markina, Infant Jesus

Academy, Marikina Christian Integrated School and Our Lady of Perpetual Succor College. During

weekdays after classes, we will be staying at the school’s parking lot, with the school’s

permission, to hand out flyers to parents who are waiting for their children.

For the tarpaulins, one best place where out print out will be easily seen is the

Community Board near the Barangay Hall. This big Community Board is located across Circle

Mall and beside the Barangay Basketball Court and Barangay Hall. We plan to put one or two on

the board because passersby, both on the sidewalks and inside the cars, can easily see the

advertisements there as long as it will be somewhere on top or on the middle. Another place

where we can put tarpaulins are the basketball courts inside Ranch Estates I and IV and some

other parts in the village where we will be allowed to hang them up like somewhere near the

village gates where a lot of families pass by. For interested customers outside the primary target

market, we plan to put tarpaulins near parks, activity and shopping centers, considering that

these places are to be allowed by the officials.

The company plans to team up with the schools nearby for promotions. We plan to

promote the day care center during activities that include parents’ participation such as Parent –

Teacher Conferences, Family Day and School Fairs. The schools will help us in promoting the
 P a g e | 24

daycare center because they will serve as our bridge to communicate and encourage our target

market, which are the parents. The company will ask the schools to invite us to several

parenting seminars and also to the said events so we can promote the daycare center. During

Family Days and School Fairs, we plan to put up booths on the school grounds. In this way we

can communicate with parents who will attend the said events to avail our services. A tarpaulin

will be hang on the booth, so as flyers will be given out to random parents, while brochures are

to be given to interested customers.

TheyCare Child Care Center must charge approximately for high – end, high – quality

educational and care giving services we offer. The rates we will be charging to our customers

and the revenues we will be having should be balanced with our expenditures. We will be price

competitive in the market we serve; however, we will not subscribe to the “low price leader”

concept. The quality of our service will support the prices we charge. The gross margin the

company will be implementing will be 24.67%. This is based on the supported computation

found on the latter part of this study.

Parents are to be provided with several packages to choose from. For drop – in and less

than a month packages, payments are to be settled upon enrollment. Installment payments are

allowed only to the packages that will last for a month. For installment payments, only two

payments are allowed; one as down payment upon enrollment, and the remaining will be paid

on a certain date before a child exits the program. For the clients who will avail a one – month

package, a non – refundable reservation fee of one thousand pesos (P1, 000) will be asked from

the clients. The reservation fee will serve as the client’s down payment and will be part of their

entire payment. For those who will not be reserving a slot for their child, fifty percent (50%)
 P a g e | 25

down payment is required. The down payment should be settled before a child enters the

program. All payments can be made on cash or check basis only.

Employees are required to undergo seminars offered by the Department of Education

and Early Education Training Program by University of the Philippines, Diliman and Department

of Social Welfare and Development for proper rendering of services to the end users. Other

issues such as safety measures and first aid are to be taken care of by the company. We are

liable for such accidents and unexpected events while the child is in the daycare center

premises. Also, we plan to invest for an on-call doctor to address accidents that may occur.

Nevertheless, we tend to keep the child’s safety inside the childcare premises.

The company is planning to set aside a budget for marketing strategy. A total of twenty

thousand pesos (P25, 000.00) is the approximate budget for the first year. The company

believes that this will still be the marketing budget for the next two years because we try to cut

costs. The marketing budget is comprised of the following:

Tarpaulins – 3x5sq. ft. colored (P225 x 10 pcs) P1, 800

Flyers – 4.25x5.5” colored (750 pcs) 3, 750

Brochures – 21.56x27.94” tri – fold colored (500 pcs) 7, 500

Community Board Rental Fee (120php/month) 1, 440

Others – for booths, transportation, food, etc. 10, 510

 P a g e | 26

PRODUCTION/OPERATION REQUIREMENT

TheyCare Child Care Center will be leasing a 100 square-feet house owned by Mr. Oscar

P. Villamiel. This house is located at 38 Apitong St., Marikina Heights, Marikina City. Based on

the agreement, the term of the renewable contract lease is two (2) years and will not be

permitted to withdraw from the contract within the first year. The lease contract will begin from

the date of operation, which is three (3) months before the opening of the center and will be

renewable every two years. The monthly rental for leased premises shall be six (P6, 000)

thousand, Philippine currency per month, or seventy-two thousand (P72, 000), Philippine

currency per year. All rental payments made at the end of the month shall be payable only to

the lessor.

The company shall deposit to the lessor upon signing of the contract and prior move-in

an amount equivalent to the rent for three (3) months or the sum of eighteen thousand (P18,

000), Philippine currency, wherein the two (2) months deposit shall be applied as rent for the

11th and 12th months and the remaining one (1) month deposit shall answer partially for

damages and any other obligations, for utilities such as Water, Electricity, Telephone or resulting

from violation(s) of any of the provision of the contract.

In case of default payment of the rent for at least two (2) months, the lessor at its

option may terminate the contract and eject the company. The lessor has the right to preclude

the company in entering the premises for one (1) month and may forfeit whatever rental

deposit or advances given by the company.

The company shall pay for its telephone, electric, cable TV, water, Internet and other

public services and utilities during the duration of the lease. If whole or any part of the leased

premises shall be destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm,
 P a g e | 27

riot or any other unforeseen disabling cause of acts of God, as to render the leased premises

during the term substantially unfit for use and occupation of the company, then the contract

may be terminated without compensation by the lessor or by the company by notice in writing

to the other.

The lessor or its authorized agent shall after giving due notice to the company shall have

the right to enter the premises in the presence of the company at any reasonable hour to

examine the same or make repairs or for operation and maintenance of the property.

At the expiration of the term of this lease or cancellation, the company will on time

deliver the lessor the leased premises with all corresponding keys and in good condition. Non-

compliance of these terms by the company will give the lessor the right to refuse to accept the

premises and compel company to pay rent at the same rate plus twenty five (25) % as penalty

until the company has complied with the terms. The same penalty shall be imposed in case the

company fails to leave the premises after the expiration of the contract.
 P a g e | 28

A. Vicinity map

B. Floor Plan
 P a g e | 29

C. TheyCare Facilities

1. Bedroom/ AVRoom

This is a fully air-conditioned double purpose room that will be utilized as a

sleeping area as well as an entertainment room. Kids are allowed to nap as well as

watch educational shows in this room.

a. Television set

A 24in Full HD LCD Television set with DVD player and component along

with children movies, songs and educational DVDs and VCDs.

b. Sleeping items

 Sleeping Mats

 Pillows

 Blankets

 Stuff Toys

 Crib

2. Activity Area

The activity area is a combination of a mini library and a workspace for children.

This is an air-conditioned area where most of the activities will be held. Different

learning materials will be displayed on the shelves.

 Small mono block tables and chairs

 Book shelves

 Puzzle mats

 Kiddie bean bag

 Children books

 Activity materials
 P a g e | 30

 Learning materials

3. Comfort Room

One comfort room mounted in the Nap/ AV Room and the other is located

beside the staircase and the kitchen area. Both are tiled and fully furnished with

installed toilet bowl, shower and a hand washbasin.

4. Kitchen

The kitchen is furnished and tiled with stove, gas range, personal refrigerator,

faucet, sink, plate dispenser, cup, spoon, fork, and plates. This is where the

nutritious food will be cooked and prepared by the assigned food handlers.

5. Mini Play ground

The Mini Playground is made available for children to have a little fun while

having a muscular activity.

D. Utilities

They Care’s nature of utilities include: Electricity, Water, Telephone, and Rent. Along

with the utilities aforesaid, rent and telephone are the only fixed cost among the four, while the

others vary depending on the daily consumption of They Care.

Rental payment amounts to PHP 6000 and is exclusive of Electricity, Water and

Telephone bills. In addition, the lessor requires initial payment of 3 months advance and 1

month deposit amounting to PHP 24,000 rent. The 1st and 2nd advance payment will be

applicable for the 11th and 12th month of rental while the 3rd deposit will be allotted for any

future violation or repair expenses that the lessee will incur. There will be PHP 500 for

Telephone bill, Electricity ranges from PHP 3000- 3500 per month and Water consumption is

from PHP 170- 250 per month.

 P a g e | 31

1. Electricity

The usage of all electronic devices varies depending on the daily

consumption of appliances used. The total approximated daily consumption

ranges form 19- 25 kilowatts which will yield to Php 225- 300 per day.(see

Appendix C-1).

2. Water

Water consumption will be based on the existing lavatory and kitchen

sink utilization. The approximate daily consumption for water will be 0.40- 0.625

cubic meters an estimated amount of Php 6- 10 per day. (see Appendix C-2).

3. Telephone Bill

The Telephone, which will be used in They Care, is a phone line package

that charges PHP 499 per month from Bayantel.

 P a g e | 32

MANAGEMENT AND PERSONNEL

1. Management

a. Partners

The Partners are responsible for the foundation of the company. They are

individuals who agree to form a business and contribute to it by means of money, property

and service. Partners are also in-charge of the activities that will be happening in the

organization.

The requirement to qualify as a partner in the company is to be at least a tertiary

level education graduate whose course is preferably concentrated on business and/or

education (graduates with master’s and doctorate degrees will acutely qualify for the job as

well). They must possess good communication and interpersonal skills and must also be

proficient in using basic Microsoft programs.

Each partner will receive 10,000 PHP per month as their salary. Benefits that each

partner will receive include rice subsidy, laundry allowance, medical cash allowance and

clothing allowance. Each partner is also entitled to a thirteenth month pay every year.

Salaries of each partner will increase in relation to the partnership profits and losses. The

contract of the partners with the center will last as long as they choose to stay with the

company.

b. General Manager

The General Manager is responsible for managing all the areas that concern the

revenue and cost elements of a company. The manager oversees the activities that will

happen in the organization and leads, coordinates and communicates the strategies and

procedures to the rest of the company for it to function effectively.

 P a g e | 33

The company’s General Manager must at least be a college graduate preferably

majoring in business, finance, management or accountancy. Managers must possess good

communication and interpersonal skills and must also be proficient in using basic Microsoft

programs. They must also be able to lead the other staff proficiently.

The general manager (who is also one of the partners) will receive the same benefits

like the other partners (rice subsidy, laundry allowance, medical cash allowance, clothing

allowance and thirteenth month pay). They will get the basic salary of P10,000. The contract

of the general manager with the center will last as long as they choose to stay with the

company.

 The salary and benefits of the partner who is also the General Manager will be

common and will not add-up.

2. Personnel

a. Child Care Provider/s

Child Care Provider/s is/are responsible for providing care and basic education for

infants, toddlers and preschool children. They aid in the development of the children’s

fundamental social, academic and personal development. They also help the children in

developing their cognitive and emotional skills and in learning fundamental mathematical

and reading skills in advance to make it easier for them to understand when in the real

academic setting already. They address the issues that the children may require special

attention with and ensure the safety of the children while they are in the daycare center.

The company requires that the hired Child care provider/s of the company should

have at least reached tertiary level of education. They are accepted by the company as long

as they are found viable and suitable care-takes and nurturers. Their educational

background and knowledge must be preeminent or acceptable to the standards of the

 P a g e | 34

center. They must be able to understand and relate to children well and must know how to

properly supervise them. The Child Care Provider/s must also possess good communication

and interpersonal skills and must also be proficient in using basic Microsoft programs.

The Child Care Provider will receive 12,000 PHP per month as their salary. Benefits

that the Child Care Provider will receive include rice subsidy, laundry allowance, medical

cash allowance and clothing allowance. They are also entitled to a thirteenth month pay

every year. Their salary will increase every six months. The contract of the Child Care

Provider with the center will be legally binding for one year and can be renewed afterwards

depending on the management’s decision.

b. Receptionist

The receptionist answers the visitors’ questions about the services offered by the

company, answering calls, receiving, sorting and distributing mail, setting appointments,

keeping records and filing them and performing other office errands. They will also be in-

charge of keeping track of the books in the library of the center. They must be able to

understand well how the company works so that they will be able to communicate this to

possible customers effectively. They must also be able to handle complaints and make

recommendations to the client in a professional and good-natured manner.

The company requires that the receptionist of the company to have at least reached

secondary level of education but it would be preferable to have someone who has reached

tertiary lever of education. They must possess good communication and interpersonal skills,

the capacity to multitask and to organize. Being presentable and being proficient in using

basic Microsoft programs is also imperative.

 P a g e | 35

The Receptionist (who is also one of the partners) will receive 10,000 PHP per

month as their salary. Benefits that Receptionist will receive include rice subsidy, laundry

allowance, medical cash allowance and clothing allowance. They are also entitled to a

thirteenth month pay every year. Their salary will increase every six months. The contract of

the Receptionist with the center will be legally binding for one year and can be renewed

afterwards depending on the management’s decision.

 The salary and benefits of the partner who is also the receptionist will be

common and will not add-up.

c. Driver/s

The drivers of the center will be responsible for fetching the children from their

respective houses and bringing them to the daycare center. They should be able to drive the

children safely from their homes to the center.

The drivers should be at least twenty one years old and must be a registered driver

with a valid driver’s license. They should be able to understand and follow directions easily

and should have had previous experience with references which are verifiable. They must

also possess good interpersonal skills.

The driver will receive 8,000 PHP per month as their salary. Benefits that the driver

will receive include rice subsidy, laundry allowance, medical cash allowance and clothing

allowance. They are also entitled to a thirteenth month pay every year. Their salary will

increase yearly. The contract of the Child Care Provider with the center will be legally

binding for one year and can be renewed afterwards depending on the management’s

decision.
 P a g e | 36

d. Security Guard

The security guard of the center ensures the safety of the children in the daycare

center. They make sure that the proper security measures are implemented and maintained

by the center.

The security guard should be at least twenty one years old and must have a clean

criminal background. They should be able to understand and follow directions easily and

should have had previous experience with references which are verifiable. They must also

possess good interpersonal skills.

The security guard will receive 8,000 PHP per month as their salary. Benefits that

the security guard will receive include rice subsidy, laundry allowance, medical cash

allowance and clothing allowance. They are also entitled to a thirteenth month pay every

year. Their salary will increase every six months. The contract of the Child Care Provider with

the center will be legally binding for one year and can be renewed afterwards depending on

the management’s decision.

e. On-call Doctor

The On-call Doctor provides medical aid and assistance to the daycare center. For

minor medical concerns, the daycare can contact the On-Call Doctor anytime during regular

working days. For major medical concerns, the On-Call Doctor should be able to make it to

the daycare center to help address the problem. They will also check and confirm if the

center has proper medical measures for the children.

The company’s On-call Doctor must at least be a college graduate preferably

majoring in a pre-medical course. They must possess good communication and

 P a g e | 37

interpersonal skills. They should have previous experience with dealing with children and

have references which are verifiable.

The On-Call Doctor will receive P500 per consultation. The contract of the on-call

doctor with the center will be legally binding for one year and can be renewed afterwards

depending on the management’s decision.

f. Food Handler

The Food Handler is responsible for preparing the meals and snacks of the children

according to the Nutritionist’s advice as to what kind of food should be prepared. They

should be willing to undergo a seminar with regards to the proper sanitary preparation of

food for the children. Going to the market to buy the needed ingredients for the meals and

snacks is also part of the responsibilities of the Food Handler.

The Food Handler should at least be eighteen years old and must able to understand

and follow directions easily. They must have previous experience as to preparing and serving

basic meals with references which are verifiable. They must also possess good interpersonal

skills.

The Food Handler (who is also one of the partners) will receive 4,500 PHP per month

as their salary. Benefits that the Child Care Provider will receive include rice subsidy, laundry

allowance, medical cash allowance and clothing allowance. They are also entitled to a

thirteenth month pay every year. Their salary will increase every year. The contract of the

Food Handler with the center will be legally binding for one year and can be renewed

afterwards depending on the management’s decision.

 The salary and benefits of the partner who is also the Food Handler will be

common (higher salary applies) and will not add-up.

 P a g e | 38

REGULATIONS/ENVIRONMENT ISSUE

The company is willing to comply with all requirements needed before operation of the

daycare center. The owners and employees are to attend several seminars in order to render

the best quality service clients deserve such as National Training Workshops for Daycare

Workers and Teachers on Early Childhood Education by Department of Education (DepEd),

Training Programs offered by Marikina City Municipality, Early Chlidhood Program offered by

University of the Philippines, Diliman, Food Handling Seminar by Marikina Health Office, and

annual seminar on Waste Management by Marikina Waste Management Office. The company

will set aside finances for expenses needed to submit the regulations the law obliges.

Before operation, THEYCare Childcare Center is required by Marikina City Hall to obtain

the following requirements for Business Permit:

1. Zoning Clearance

2. DTI / SEC Registration

3. Barangay Clearance

4. Community Tax Certificate

5. Photos of establishment (showing

signboard & sidewalk)

6. Sanitary Permit

7. Fire inspection Certificate

8. Occupancy Permit/Change of Use

Certificate

9. CEMO Certificate

10. SSS Clearance

 P a g e | 39

11. Occupational Permit

12. Lessor’s Permit (Contract of Lease)

13. Others (National Requirements)

These are the following requirements needed for Department of Trade and Industry Business

Name registration:

 Accomplished Business Name Registration Form

 2 pcs. 2x2 colored ID picture

 Tax Identification Number (TIN) Optional

 List of five business names ranked according to preference

 Registration fee of P300.00

These are the following requirements needed for Securities and Exchange Commission

registration:

 Verification Slip Form

 Accomplished Registration Data Sheet

 Articles of Partnership (for limited partnership, this should be executed under oath)

 Written Undertaking to Change Corporate Name

 Clearance from other government agencies (if needed)

 Registration fee of P510.00 or more depending on capital contribution

 If the contributed capital is in the form of a real property, additional requirements

needed: Deed of Assignment executed by the stockholder who is the owner

These are the following requirements needed for Tax Identification Number (TIN) registration:

 Accomplished Form 1901

 P a g e | 40

 DTI Certificate of Registration of Business Name

 Mayor’s Permit

 Registration Fee of P500.00, P15.00 for the Certification Fee and P15.00 for the

Documentary Stamp Tax

These are the following requirements needed for Mayor’s Permit:

 Accomplished Business Permit Application Form

 DTI Business Name Certificate

 Sketch of the business location

 2 pcs. 2x2 colored ID picture

 Registration fee

These are the following requirements needed for Social Security System (SSS) Clearance:

 Accomplished R1 Form (Employer Registration)

 Accomplished R1A Form (Employment Report)

 DTI Business Permit

 Photocopy of Articles of Partnership

 Mayor’s Permit

These are the following requirements needed for Department of Labor and Employment

registration:

 Accomplished Rule 1020 Form

 Lay – out of business location

 Vicinity map
 P a g e | 41

These are the following requirements needed for Department of Education registration:

 Accomplished GPR – 4 Form

 Articles of Partnership

 Statement on the location of the school in relation to recreational places and other

factors that are not conductive to the learning process

 Campus development and landscaping plans

 Pictures of the site, classrooms, libraries, medical and health facilities, etc.

 Proposed budget/annual expenditures for the succeeding year approved by the Director

 List of administration, i.e. president, vice president, managers, etc.

 List of non – teaching personnel

 List of athletic facilities, equipment and supplies and materials

For Fire Inspection Certificate, a fee shall be paid to avail, which amounts to 10% of the

total payment for the business permit. For City Environmental Management Office (CEMO)

Certificate, a half-day annual seminar is required for it to be availed. For Sanitary Permit, a fee of

P300.00 is to be paid and additional requirements such as Health Certificate (P100.00) and X –

ray (P150.00) is to be accomplished before it will be released. For food handlers, a free two –

hour seminar at Marikina City Health Office is required. Contract of Lease is to be accomplished

by the lessor and the company. To avail a Barangay Clearance, a permit from Department of

Trade and Industry is needed with a registration fee. Other permits needed by the City Hall, such

as Zonal Permit, Occupancy Permit and Occupational Certificate are not applicable upon

registration of the daycare center. Community Tax Certificate will depend on the registering

personnel.
 P a g e | 42

Republic Act No. 6972

(Funds for the Center, the Program and Day Care Workers)

Section 3. Program Framework. The total development and protection of children program for day care

centers shall be provided for children up to six (6) years of age with the consent of parents. Provided,

however, that, in case of abused, neglected or exploited children, such consent shall not be required. The

program shall include the following:

a. Care for children of working mothers during the day and, where feasible, care for

children up to six (6) years of age when mothers are working at night. Provided, that the

day care center need not take care of the children in a particular place but shall develop

network of homes where women may take care of the children up to six (6) years of age

of working mothers during work hours, with adequate supervision from the supervising

social welfare officer of the Department of Social Welfare and Development. Provided,

further, that, where young children are left to the care of a paid domestic, an elderly

relative or older children without adequate and competent adult supervision, the

supervising Social Welfare Officer shall provide such training and adult supervision until

the children’s care meets adequate standards whereby the children under their care will

develop normally as healthy, happy and loved children, even in the absence of their

mothers during working hours;

b. Materials and network of surrogate mothers-teachers who will provide intellectual and

mental stimulation to the children, as well as supervised wholesome recreation, with a

balanced program of supervised play, mental stimulation activities, and group activities

with peers
 P a g e | 43

Although this law generally applies only to public daycare centers, THEYCare Child Care

Center will still depend on some regulations the law requires. The goal of the company is to

offer childcare program that will help parents, especially working mothers, in supervising their

children who are six years old below. This law ensures that institutions such as daycare centers

will be able to meet whatever needs and attention children deserve, as well as to assure parents

with the best care necessary.

The company inquired to a Department of Social Welfare and Development officer, Ms.

Lilia C. Ola, about the requirements needed for their accreditation. According to her, it is not

required for private daycare centers to have a supervising Social Welfare Officer, but she

encourages the company to at least avail the training programs offered by the government and

the department. She suggests that the workers who will interact with the children enrolled to

attend seminars with regards to early childhood care programs.

PRESIDENTIAL DECREE No. 856 December 23, 1975 (Code On Sanitation)

The purpose of this decree is directed towards the protection and promotion of health of

the people, being of paramount importance, to all efforts for public services. With the advance in

the field of sanitation in recent years, there arises the need for updating and codifying our

scattered sanitary laws to ensure that they are in keeping with modern standards of sanitation

and provide a handy reference and guide for their enforcement.

To comply with the said Code on Sanitation, the company, as said above, is willing to

register for a Sanitary Permit before operation and will be renewed every year. The company

will be opening its doors for whatever Sanitary Inspection needed for compliance and quality

service.
 P a g e | 44

With regards to waste management, Marikina Solid Waste Management is requiring

every household to separate biodegradable from non-biodegradable. These wastes should be

kept in a plastic, tied with green band for biodegradables, and pink band for non-

biodegradables. The waste management team will not collect the wastes that are not tied the

way it should be. Wastes are to be gathered thrice a week, depending on the given schedule by

the city officials. In the place where the childcare center will be located, wastes will be collected

every Mondays, Wednesdays and Fridays. There will be a fine for wastes left on the sidewalks

before or after collection.

Permits and Licensing

Business Permit:

 Mayor’s Permit – Daycare Center P718.00

 Sanitary Inspection 600.00

 Garbage Fee 272.00

 Fire Inspection 183.75

 Business Tax (1% of 25% of the Contributed Capital) 3, 000.00

TOTAL P 4, 773.75

Other Requirements:

Business Name Registration – P300.00

Tax Identification Number (Inclusive of Certification Fee and Documentary Stamp Tax) – P515.00

Securities and Exchange Commission Certificate – P4, 110.00

Department of Labor and Employment Registration – P100.00

 P a g e | 45

Sanitary Permit (Inclusive of Health and Medical Certificate) – P600.00

Fire Certificate (10% of Business Permit) – P477.37

Barangay Clearance – P300.00

Community Tax Certificate – P5.00

TOTAL LICENSING AND PERMITS: P 11, 181.12

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CRITICAL RISK FACTORS

SWOT

STRENGTHS
- Rented center is monitored well
- Partners will be attending seminar for
early childhood care programs
- Hired employees are carefully screened
- Partners are also employees of their own
business
- Financial records are well managed
WEAKNESSES
- Partners have limited knowledge and
experience in the field of the business
- Costly marketing and advertising since the
business is new
- Facilities are not yet expanded since it’s
the first five years of the business

OPPORTUNITIES THREATS

- Located near the target market/
consumers
- The only registered private daycare center
in the vicinity
- The only daycare center in the area that
has bus service and meals
- Many indirect competitors around the
area (Preschool, Public Daycare Centers)
- Lower revenue during non-working
holidays
- New to the industry/ not yet known

The SWOT table shows the strengths, weaknesses, opportunities and threats that are

involved in the business. Strengths are those which give the business a competitive advantage

against others in the industry. The strengths of the day care center includes good supervision,

properly screened and experienced employees, well-maintained financial records, the hands-on

participation of the partners in the daily operations of the business with three months of
 P a g e | 47

seminar for early childhood care programs and the improved facilities of the center. By having

good supervision, the parents are more secured that their children are in good hands in the

center. The center also makes sure that the personnel that will be involved in the services

rendered are competitive and possess professional behavior. Before the partners take active

participation in the company’s daily activities, they will attend seminars as National Training

Workshops for Daycare Workers and Teachers on Early Childhood Education by Department of

Education. This enables clients to trust the center further as they know that the partners of the

company are dedicated to giving them the best service the center has to offer.

Weaknesses are those which give the business at disadvantages in the industry. The day

care center’s weaknesses include the limited knowledge and experience of the partners in the

field of the business’ industry, high marketing and advertising expense and limited business

expansion since it’s only the first years of the business. The partners can remedy their lack of

knowledge and experience by making the effort to understand and know more about the

industry through research and two months of training. The center also hired other experts to

help the partners conduct different services offered. Although the marketing and advertising

expenses are high, the business expects higher revenue in the succeeding years. Also, even

though the business has not yet expanded, there are new services offered that other centers

don’t have.

Opportunities are those factors which are prospects for the business to further advance

in the industry. The day care center’s main opportunity is its location. The center is located near

its target schools/consumers which makes it easily accessible. It is also the only private-

registered day care center in the area and the only day care that has bus service that will fetch

and bring home the children, and meal service that serves recess, lunch and snacks per day. This
 P a g e | 48

makes the center attractive to the target market because being private and registered gives

more assurance of its security and quality of service, and having bus service gives more

convenience to the parents and guardians of the children.

Threats are those factors which has the potential to be detrimental to the business. The

threats that the day care center faces include indirect competitors near the target area, lower

revenue during non-working holidays and being new to the industry. Although there are indirect

competitors such us preschools and public day care centers in the area, the center is able to

alleviate this risk because of its distinctiveness in terms of comfort, convenience, and kinds and

quality of service. During holidays, since parents don’t have works to attend, there are limited

customers for the center. This will also be an opportunity for the day care to provide a better

service because fewer customers mean more supervision to both the children and other

employees. Because of being new to the industry, the center offer promos to encourage parents

to enroll their children. The center also offers a means of transportation for children from their

house to the center and has a well-rounded center which addressed the basic needs of the

children.
 P a g e | 49

PORTERS FIVE FORCES MODEL

Potential Entry of New Competitors

- Even though TheyCare center is the only
private registered daycare in the area,
there maybe future potential competitors
that will establish similar centers. The
center will stay focus with their originality
to overcome this kind of barriers.

Potential Development of
Substitute Products
Rivalry among Competing Firms
- Some parents choose to
take care of their children
at home rather than
entrust it to others
outside. The business is
aware of this kind of this
kind of substitute service
and is prepared by
assuring them that the
center will give the same
security and convenience
they have at home.
- There are many indirect
competitors in the area like
public or unregistered daycare
centers and established
preschools, but the business
offers improved and more
facilities that will assure the
customers that the center will
provide their needs and
satisfaction.
Bargaining Power of
Supplies
- The service of the business
will be conducted by the
owners after attending
DepEd seminars and hire few
experts to ensure that the
customers will experience
good quality of service. Also
the business will be careful
on employing other
personnel to to strengthen
the center's security and to
obtain the objective of the
business which is to provide
a second home to the
customers.

Bargaining Power of Consumers

- The business is distinctive by being the only
private registered daycare center in the area
with more facilities offered. But because it is
still new to the industry, the consumer power
is not too high. Since it affects the intensity of
the competition, the business is taking its risk
to establish a diverse yet better and improved
daycare center for the target consumers.
 P a g e | 50

START-UP SCHEDULE

 July 2011

o Partners Angela Retona, Ivana Salao, Leona Joy Se, Melissa May Cruz, Lea Villamiel and

Cristina Villaruz have agreed to enter into the partnership (TheyCare Child Care Center)

and will decide on how much their contributed capitals will be. All partners will be

capitalist-industrial partners. Five business days will be allotted for the formulation of

the contract.

o Capital contributions should already be delivered except for Ivana Salao’s capital

contribution (a Starex car) will be delivered one week before the business commences.

The money will be set aside at a bank until all requirements for business start-up are

accomplished and completed.

o Search and take referrals for a Child Care Provider, On-call Doctor, Security Guard and

Driver.

 July to September 2011

o Obtain and accomplish the following requirements for Business Permit at the City Hall):

Zoning Clearance, DTI / SEC Registration, Barangay Clearance, Community Tax

Certificate, Photos of establishment (showing signboard & sidewalk), Sanitary Permit,

Fire inspection Certificate, Occupancy Permit/Change of Use Certificate, CEMO

Certificate, SSS Clearance, Occupational Permit, Lessor’s Permit (Contract of Lease) and

other national requirements

o Obtain and accomplish the following requirements for Department of Trade and

Industry Business Name registration: Accomplished Business Name Registration Form, 2

pcs. 2x2 colored ID picture, Tax Identification Number (TIN) Optional, List of five

business names ranked according to preference and pay registration fee of P300
 P a g e | 51

o Obtain and accomplish the following requirements needed for Securities and Exchange

Commission registration: Verification Slip Form, Accomplished Registration Data Sheet,

Articles of Partnership (for limited partnership, this should be executed under oath),

Written Undertaking to Change Corporate Name, Clearance from other government

agencies (if needed), Registration fee of P510.00 or more depending on capital

contribution and if the contributed capital is in the form of a real property, an additional

requirement to be submitted is the Deed of Assignment executed by the stockholder

who is the owner.

o Obtain and accomplish the following requirements needed for Tax Identification

Number (TIN) registration: Accomplished Form 1901, DTI Certificate of Registration of

Business Name, Mayor’s Permit, Registration Fee of P500.00, P15.00 for the

Certification Fee and P15.00 for the Documentary Stamp Tax.

o Obtain and accomplish the following requirements needed for Mayor’s Permit:

Accomplished Business Permit Application Form, DTI Business Name Certificate, Sketch

of the business location, 2 pcs. 2x2 colored ID picture and pay registration fee

o Obtain the following requirements needed for Social Security System (SSS) Clearance:

Accomplished R1 Form (Employer Registration), Accomplished R1A Form (Employment

Report), DTI Business Permit, Photocopy of Articles of Partnership and Mayor’s Permit

o Obtain and accomplish the following requirements needed for Department of Labor and

Employment registration: Accomplished Rule 1020 Form, Lay-out of business location

and Vicinity map

o Obtain and accomplish the following requirements needed for Department of Education

registration: Accomplished GPR–4 Form, Articles of Partnership, Statement on the

location of the school in relation to recreational places and other factors that are not
 P a g e | 52

conductive to the learning process, Campus development and landscaping plans,

Pictures of the site, classrooms, libraries, medical and health facilities, etc., Proposed

budget/annual expenditures for the succeeding year approved by the Director, List of

administration, i.e. president, vice president, managers, etc., List of non–teaching

personnel, List of athletic facilities, equipment and supplies and materials

 August 2011

o The partners will attend seminars on early childhood care programs.

o Visit agencies to aid in acquiring a suitable Child Care Provider by giving them the

requirements that the center needs for that position.

o Visit agencies to aid in acquiring a suitable Security Guard and Driver by giving them the

requirements that the center needs for that position.

o Discuss with the referred and contracted On-call Doctor their terms of the contract with

the daycare center.

o Be able to hire and finalize contracts with the following personnel: Child Care Provider,

Security Guard, Driver and On-call Doctor.

 September 2011

o The partners will attend seminars on early childhood care programs.

o The assigned Food Handler will attend a two-hour seminar regarding proper food

preparation and sanitation at the Marikina Health Office.

o Prepare flyers and other advertising materials, which will be use in promoting the

daycare center in the upcoming months before its start-up.

 October 2011

o The partners will attend seminars on early childhood care programs.

 P a g e | 53

o Start promoting the daycare center in schools. The event that the center will primarily

take advantage of to advertise will be the Sports Festivals held in academic institutions

near within the area during the month.

o Promote in the near-by establishments, restaurants and activity centers.

o Start purchasing fixtures and supplies needed for the daycare center.

 November 2011

o The partners will continue promoting the daycare center in schools. The event that the

center will primarily take advantage of to advertise will be the Parent-Teacher

Conferences during the month.

o Continue promoting in the near-by establishments, restaurants and activity centers.

o Arrange the fixtures in the daycare center and begin preparations for the opening of the

center for the coming year.

o Partners will meet-up with a nutritionist who will be consulted as to what kind of snack

and meals should be prepared for the children to ensure that the children will be getting

the right nourishment.

 December 2011

o Partner Ivana Salao’s capital contribution (a Starex car) will be delivered one week

before 2012.

o The partners will continue promoting the daycare center. The event that the center will

primarily take advantage of to advertise will be Christmas Bazaars within the area.

o Finalize arranging the fixtures and supplies in the daycare center.

o Make finalizations with the preparation and formal opening of the center.

 January 2012

o Commencement of Business
 P a g e | 54

FINANCIAL PROJECTION

TheyCare Childcare Center

Statement of Financial Position
As of December 31, 2012-2016

Assets 2012 2013 2014 2015 2016

Current Assets
Cash 1,785,193.00 3,053,452.95 4,459,115.14 6,361,995.87 8,360,828.44
Total current assets 1,785,193.00 3,053,452.95 4,459,115.14 6,361,995.87 8,360,828.44

Fixed (Long-Term) Assets

Furniture and Fixtures 151,450.00 121,160.00 90,870.00 60,580.00 30,290.00
Less: Accumulated Depreciation 30,290.00 30,290.00 30,290.00 30,290.00 30,290.00
Car 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00
Less: Accumulated Depreciation 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00

Total fixed assets 321,160.00 240,870.00 160,580.00 80,290.00 -

Total Assets 2,106,353.00 3,294,322.95 4,619,695.00 6,442,285.87 8,360,828.44

Liabilities and Owner's Equity

Current Liabilities

Income taxes payable 271,905.85 437,962.80 529,000.50 705,477.23 787,205.81

Total current liabilities 271,905.85 437,962.80 529,000.50 705,477.23 787,205.81

Owner's Equity

Cruz, Capital 305,741.17 476,060.00 681,782.33 956,134.67 1,262,270.33

Retona, Capital 305,741.17 476,060.00 681,782.33 956,134.67 1,262,270.33

Salao, Capital 355,741.17 526,060.00 731,782.33 1,006,134.67 1,312,270.33

Se, Capital 255,741.17 426,060.00 631,782.33 906,134.67 1,212,270.33

Villamiel, Capital 305,741.17 476,060.00 681,782.33 956,134.67 1,262,270.33

Villaruz, Capital 305,741.17 476,060.00 681,782.33 956,134.67 1,262,270.33

Total owner's equity 1,834,447.02 2,856,360.00 4,090,693.98 5,736,808.02 7,573,621.98

Total Liabilities and Owner's

Equity 2,106,352.87 3,294,322.80 4,619,695.00 6,442,285.25 8,360,827.79
 P a g e | 55

TheyCare Childcare Center

Income Statement
For the Years Ended December 31, 2012-2016

Revenue 2012 2013 2014 2015 2016 2017

Sales revenue 3,636,840.00 4,395,840.00 4,922,640.00 5,753,760.00 6,290,400.00 6,835,320.00

Total Revenues 3,636,840.00 4,395,840.00 4,922,640.00 5,753,760.00 6,290,400.00 6,835,320.00

[42] [42] [42] [42] [42]
Expenses

Advertising 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00

Depreciation-Car 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 -

Depreciation-
Furniture and Fixtures 30,290.00 30,290.00 30,290.00 30,290.00 30,290.00 -
Maintenance and
repairs 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00

Wages Expense 1,299,896.40 1,429,886.04 1,572,874.64 1,730,162.11 1,903,178.32 2,093,496.15

Rent 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00

Supplies 21,492.00 22,781.52 24,148.41 25,597.32 27,133.15 28,761.14

Utilities 72,604.80 76,961.09 81,578.75 86,473.48 91,661.89 97,161.60

Gas 8,022.86 8,504.23 9,014.49 9,555.35 10,128.68 10,736.40

Food 1,116,000.00 1,182,960.00 1,253,937.60 1,329,173.86 1,408,924.29 1,493,459.74

Licensing and Permits 11,181.12 11,181.12 11,181.12 11,181.12 11,181.12 11,181.12

On-Call Doctor 12,000.00 14,400.00 17,280.00 20,736.00 24,883.20 29,859.84

Total Expenses 2,730,487.18 2,935,964.00 3,159,305.01 3,402,169.23 3,666,380.64 3,873,656.00

Net Income Before

Taxes 906,352.82 1,459,876.00 1,763,334.99 2,351,590.77 2,624,019.36 2,961,664.00

Income tax expense 271,905.85 437,962.80 529,000.50 705,477.23 787,205.81 888,499.20

Net Income 634,446.97 1,021,913.20 1,234,334.49 1,646,113.54 1,836,813.55 2,073,164.80

 P a g e | 56

TheyCare Child Care Center

Cash Flow Satement

For the Years Ending December 31, 2012-2016

2012 2013 2014 2015 2016

Cash at Beginning of Year 950,000.00 1,785,193.00 3,053,450.00 4,459,111.00 6,361,992.00

Operations

Add: Net Income from Operations 634,447.00 1,021,913.00 1,234,334.00 1,646,114.00 1,836,814.00
Add back: Non-Cash Expense

Depreciation 80,290.00 80,290.00 80,290.00 80,290.00 80,290.00

Total 714,737.00 1,102,203.00 1,314,624.00 1,726,404.00 1,917,104.00

Increase/(Decrease) in Income Tax
Payable 271,906.00 166,054.00 91,037.00 176,477.00 81,729.00

Net Cash Flow from Operations 986,643.00 1,268,257.00 1,405,661.00 1,902,881.00 1,998,833.00

Investing Activities
Cash paid for

Purchase of furniture and fixtures 151,450.00

Net Cash Flow from Investing Activities 151,450.00 - - - -

[42]

Net Increase in Cash 835,193.00 1,268,257.00 1,405,661.00 1,902,881.00 1,998,833.00

Cash at End of Year 1,785,193.00 3,053,450.00 4,459,111.00 6,361,992.00 8,360,825.00

 P a g e | 57

TheyCare Child Care Center

Break-Even Analysis

Sched
Fixed Costs ule 2012 2013 2014 2015 2016 2017

Depreciation-Car 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 -

Depreciation-Furnitures
and Fixtures 30,290.00 30,290.00 30,290.00 30,290.00 30,290.00 -

Payroll 1,299,896.40 1,429,886.04 1,572,874.64 1,730,162.11 1,903,178.32 2,093,496.15

Rent 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00

Supplies 21,492.00 22,781.52 24,148.41 25,597.32 27,133.15 28,761.14

Utilities 72,604.80 76,961.09 81,578.75 86,473.48 91,661.89 97,161.60

Total Fixed Costs
(TFC) 1,546,283.20 1,681,918.65 1,830,891.81 1,994,522.90 2,174,263.36 2,291,418.90

Variable Costs

Gas 8,022.86 8,504.23 9,014.49 9,555.35 10,128.68 10,736.40

Food 1,116,000.00 1,182,960.00 1,253,937.60 1,329,173.86 1,408,924.29 1,493,459.74

On-Call Doctor 12,000.00 14,400.00 17,280.00 20,736.00 24,883.20 29,859.84

Total Variable
Costs (TVC) 1,136,022.86 1,205,864.23 1,280,232.09 1,359,465.21 1,443,936.16 1,534,055.98

Total Costs 2,682,306.06 2,887,782.88 3,111,123.89 3,353,988.11 3,618,199.52 3,825,474.88

Budgeted Sales 3,636,840.00 4,395,840.00 4,922,640.00 5,753,760.00 6,290,400.00 6,835,420.00

CM 2,500,817.14 3,189,975.77 3,642,407.91 4,394,294.79 4,846,463.84 5,301,364.02

Break-Even
Point
Break-Even
Sales (S) 2,248,698.84 2,445,948.13 2,662,593.94 2,900,556.21 3,161,945.69 3,332,320.37