Mary Joy Trading

The Next Five Years

Business Plan on
Day Care Center

September, 2022
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TABLE OF CONTENTS

TABLE OF CONTENTS.................................................................................................................i

EXECUTIVE SUMMARY.............................................................................................................1

Problem........................................................................................................................................1

Solution........................................................................................................................................1

Market..........................................................................................................................................2

Competition..................................................................................................................................2

1. INTRODUCTION OF THE COMPANY................................................................................2

2. BUSINESS DESCRIPTION....................................................................................................4

2.1. Industry Definition and Description Outlook...................................................................4

2.2. Factors Driving Dynamics................................................................................................6

2.3. Social Basis.......................................................................................................................6

2.4. Economical Basis..............................................................................................................6

3. PRODUCT AND SERVICE....................................................................................................7

3.1. Description of Mary joy Child Care (Product/Service Description).................................7

3.2. Price and Strategy.............................................................................................................8

4. MARKET RESEARCH ANALYSIS....................................................................................12

4.1. Marketing Plan................................................................................................................12

4.2. Market Research.............................................................................................................12

4.3. Marketing Strategy..........................................................................................................13

4.4. Organizational Structure.................................................................................................14

5. TECHNICAL ANALYSIS.....................................................................................................15

5.1. Location and Facilities....................................................................................................15

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6. ORGANIZATION AND HUMAN RESOURCE..................................................................15

7. FINANCIAL PLAN...............................................................................................................15

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7.1. Key assumptions.............................................................................................................15

7.2. Monthly Expense............................................................................................................15

7.3. Monthly Revenue............................................................................................................16

7.4. Business Financing.........................................................................................................16

7.5. Income Statements..........................................................................................................21

7.6. Balance Sheet..................................................................................................................22

7.7. FINANCIAL EVALUATION........................................................................................23

8. ENVIRONMENTAL ASPECT- REGULATION AND ENVIRONMENT ISSUES...........24

9. FINAL FUNDING AND RECOMMENDATION................................................................24

10. CONCLUSION- IT THIS BUSINESS FEASIBLE?.........................................................24

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EXECUTIVE SUMMARY

Problem

The problem for the whole family right now is who will take care of them when they give birth.
And it is difficult to find babysitters who take care of their children on their own. That is, they
take their children to foster care or day care. Most working class and middle class parents need a
center which cares and manage their children with safe place.

Solution

A daycare center is a full-service child care/development facility that cares for children from age
half to four years. A daycare center will be concentrating on the upper end of the market:
supplementary and/or double income professional parents, working class parents and middle
class parents. These personally ambitious parents are typically eager in terms of their children’s
development and will be willing to pay to have their children attend the best facilities.

Mary Joy Day Care Center is a children daycare facility to provide quality care for their
customer’s child while they are at work or on a social activity. This business is a response to the
increasing need of individuals and families in high-end, high-income markets.

Mary Joy Day Care Center will be Located in Addis Ababa, around CMC. It will provide all-
around day care services for babies and Childs. These services include held, cuddle, tell story,
play different games and sing song, as standard daycare. Mary Joy Day Care Center ensures that
all children under its custody are well taken care of, taking into account the best interests of its
clients.

We measure success on several different levels: thriving children, happy parents, and satisfied
partners. Learning Care Group pays particular attention to maintaining ongoing dialogue with
our customers so that we can continually assess the service’s performance and ensure success.
We seek and value feedback from our customers, leveraging these insights to ensure we provide
an exceptional experience for children, parents, and our partners alike.
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Mary Joy Day Care Center emphasizes quality-based day care programs, well-maintained and
welcoming facilities, and highly trained babysitters and center staff.

Market

Mary Joy Day Care Center will be offering child care/development for children age of half to
four years. Mary Joy Day Care Center will be targeting double income professional families,
working class and middle class parents who, because of work obligations, do not have the time
during the day to care for their child. The day care center will be targeting families that are
interested in something more than simple baby-sitting facilities; they would like the children to
be enrolled in a program that offers development of many different skills including: socialization
skills, arts and crafts, reading, numbers, etc. Parents who are professionals, who are ambitious by
nature themselves, are typically eager for their children to move ahead and are willing to pay for
the best development care services for their children.

Competition

Mary Joy Day Care Center will be competing in the child care industry. This industry is fairly
broad and populated, there are companies at all levels, from the basic simple babysitter services,
to competitors of our center. There are service providers that offer standard business hours as
well as services that offer night and evening hours. There are scheduled services and no
reservation drop off services. Price, quality, and gut feeling drive a lot of parental choices. Mary
Joy Day Care Center believes the secret to success is to

i. Concentrate on only a portion of the market, and

ii. Choose a portion of the market that is growing.

1. COMPANY OVERVIEW
Company Name: Mary Joy Trading PLC
Trade Name: Mary Joy Day Care Center®
Company Logo: It is a child in the arms of his mother sketch on a blue and
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white background, the image represents that as a mother we

take care of children, and the dark blue color represents

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knowledge, power, loyalty, seriousness, while the white color

represents purity and peace.

Motto: Anywhere there are you, we are there with your children!
የትም ብትሆኑ፤ ከልጆቻችሁ ጋር ነን!
Ownership structure: The Mary Joy Child Day Care Center® will muck in child care
and management industry, founded by Mary Joy Ethiopia and
2 other co-founder shareholders.

Commenced Operations: After three months.

Country: Addis Ababa, Ethiopia.
Main Activity/Service: Provide child day care service.
Vision: It is our vision to position Mary Joy Day Care Center® to
become the leading child day care center and top child care
services brand in Ethiopia in 2025.
Mission Statement: Mary Joy Day Care Center® shall build a highly competitive
and effective child day care business that will make it the
number one choice for families in Ethiopia.
Core Values:  M: Morality
 A: Agility
 R: Reliable
 J: Jointly
 O: Openness
 Y: Yearlong to Yours

Aims & Objectives  Carry out acceptable child day care businesses in Ethiopia;
 Provide customers with affordable, quality child day care
center;
 Make sure that the child day care provided is completely fit
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to the wants of customers;

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 Encourage society to help one another;

 And above all, contribute its part to the sustainable growth
of the economy.

Customer Base Our client base is one of the broadest among supplementary
and/or double income professional parents.

AIC’s Outstanding Above all our provision of highly affordable, quality child day
Features: care, especially for children under age 5, is a major concern for
many parents.

Key person Mr./Ms. X Y, s/he was graduated by nursing and child care
service and many experience in industry and other graduated
staff with experience.
Management: The management team of Mary Joy Child Day Care Center®
consists of five qualified and experienced professionals.
Staff: Mary Joy Child Day Care Center® will have 8 permanent
employees and sometimes daily labor.

Locations and Facilities: Mary Joy Child Day Care Center ® will begin with one
location leased building in a resident area, located in Addis
Ababa specially Lemi Kura Sub-City Woreda 6 community
around CMC. The day care center is in the medical
professional center around there and will boast lobby for arts,
theatre and dance, information technology, library and quiet
slipping, teaching, infant care and a cafeteria. The play area
and overall compound will be securely fenced and furnished
with appropriate playground equipment and facilities and also,
controlled by CCTV camera.

Three additional day care center with additional services are

planned in the rural marketplace over the next four years.
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Start-ups will be offered in the Debrezeit/Bisheftu, Sedafa and

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Sebeta marketplace after 2 years of successful operation.

Goal:  Sales increasing to almost double first year sales by the end
of Year 2.
 Maintain a high raw gross margin by the end of Year 1.
 Open second day care center by the end of Year 1.
 Begin franchise effort by end of Year 3.

Keys Sources of Successes
 Marketing: differentiating Mary Joy Day Care Center’s
care giving and educational services from traditional day
care offerings and interest activity programs.
 Service quality: care giving and educational programs
provided by degreed and certified educators, child care
workers, tutors and subject matter industry professionals in
a technologically advanced first-class collegiate
environment.
 Reputation: maintaining a highly regarded reputation for
excellence in care giving, education and community
involvement and being the employer of choice in our
market for child care and educational talent.
 Profitability: controlling costs and managing budgets in
accordance with company goals, adhering to strategic
business plans for growth and expansion and reinvesting in
the business and its employees.

2. BUSINESS DESCRIPTION

2.1. Industry Description and Outlook

Obtaining affordable, quality child day care, especially for children from 6 months to 48 months,
is a major concern for many parents. Child day care needs are met in many different ways. Care
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in a child’s home, care in an organized child day care facility, or care in a provider’s home are all

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common arrangements for preschool-age children. Older children may receive child day care
services when they are not in school, generally through before and after school programs or
private summer school programs. With the increasing number of women in the workforce, child
day care services have been one of the most talked about and fastest growing industries in the
world economy.

This industry consists of establishments that provide paid care for infants, prekindergarten, or
older children in after school programs.

For-profit sector of this industry includes centers that operate independently or as part of a local
or national chain. Non-profit child day care organizations may provide services in religious
institutions. The number of for profit establishments has grown rapidly in response to demand
for child day care services. Within the non-profit sector, there has been strong growth in Head
Start, the government funded child day care program designed to provide disadvantaged children
with social, educational, and health services.

Child day care shifted in the past from unpaid to paid caregivers, particularly child day care
centers. Some employers offer child day care benefits to employees. They recognize that the lack
of child day care benefits is a barrier to the employment of many parents, especially qualified
women, and that the cost of the benefits is offset by increased employee morale and reduced
absenteeism. Some employers sponsor child day care centers in or near the workplace; others
offer direct financial assistance, vouchers, or discounts for child day care, after school or sick-
child day care services, or a dependent care option in a flexible benefits plan.

The rising demand for child day care services reflects demographic trends. Over the 2002-12
periods, the number of women of childbearing age (widely considered to be ages 15 to 44) is
expected to grow very slowly; however, the labor force participation rate of such women is
expected to increase. As a result, the number of women in the labor force with children young
enough to require child day care will increase steadily. Also, the number of children from 6
months to 48 months is expected to increase during this period.
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The demand for child day care services will continue to grow. As the labor force participation of
women between the ages of 16 and 44 remains high, parents of preschool and school-age

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children are expected to seek more day care arrangements. As parents continue to work during
weekends, evenings, and late nights, the demand will grow significantly for child day care
programs that can provide care during nontraditional hours. School-age children, who generally
require child day care only before and after school, increasingly are being cared for in centers.

Center-based care should continue to expand its share of the industry as government increases its
involvement in promoting and funding child day care services. Increased subsidies for children
from low-income families attending child day care programs would result in more children being
served in centers. Demand for preschool teachers could increase if many States implement
mandatory preschool for 4-year-old children. Another factor that could result in more children
being cared for in centers is the increasing involvement of employers in funding and operating
day care centers. Welfare reform legislation requiring more welfare recipients to work also could
contribute to demand for child day care services.

2.2. Factors Driving Dynamics

There are several factors of the proposed business as it follows:
i. Less of a risk: When it comes to being a business owner, minimizing your risk is one of
your top priorities. A child day care center takes startup cost, utilities and salary expenses
only. As a result, a child day care center not costing as to other similar investment, it is
easy to come to the conclusion that child day care center is less of a risk.
ii. Easier to maintain: It is much easier for maintaining the child day care center compared
to other similar investment. These issues can be incredibly expensive to buy and repair –
especially if you’re still building your business.
iii. Easily accessible: The proposed business will be easily accessed by the customers
because it will be operated near to residences.
iv. Technology: The proposed business will be providing child’s modern playing materials
which have been made on the spot and controlled by CCTV allover room and
compound’s.
v. Cheaper price: The child day care center provided will be relatively quality and thus it
would attract more customers.
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2.3. Social Basis

One major benefit that the proposed business will provide to the society is the availability of the
child day care center that they desire which is right near to residences. The proposed business
will be employing people and it would help in reducing unemployment somehow. And also, it
will be solving parents’ headache of to find baby-sitters who take care of their children.

2.4. Economical Basis

The proposed business will ultimately help in parents’ living style to generate sustainable income
and boosting up the economy as create/promote new/existing employees and dealers. And also, it
will be paying a huge some of amount as a tax to the government.

3. SERVICES DESCRIPTION

3.1. Services Description

Upon its opening, Mary Joy Day Care Center® will offer three basic age group category services
in the Addis Ababa specially Lemi Kura Sub-City Woreda 6 community around CMC full-time
Child Day Care Center services.

3.1.1. Age Group with Category Ratio

The center offers high quality early child day care and education for preschool from 6 months to
48 months of age. It grouped in to three. The designated age groups and child to baby-sitter
ratios are outlined below:

No. Age Group Category Baby-sitter Ratio Room Ratio

1 From 6 months to 12 months Infants 3:1 3:1
2 From 12 months to 24 months Toddlers 5:1 3:1
3 From 24 months to 48 months Preschool 10:2 2:1

Prior to opening, the day care center will have a two-month enrollment drive. Based on the
market reaction to the drive, these services may be altered to meet the needs of the community.
The day care center will always remain quickly enough to respond to the needs of the community
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in which it serves.

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3.2. Fulfillment
The key fulfillment and delivery of services will be provided by the day care center director,
licensed medical instructors and baby-sitters/child care staff workers. The real core value is the
professional strength and industry expertise of the founder and silent partners, staff experience
and certifications, education and hard work (in that order).

We will turn to qualified professionals for freelance back-up in tutoring and educational support,
which will enhance the core values provided to the clients. And also, we accomplished the
following service under age group category;

3.2.1. Infant Program: from 6 months to 12 months of age

Our infant program ensures that babies receive the personal one on one attention that they need
to develop trust for the world around them. Infants are held, cuddled, talked to, and sang to
throughout the day. We work closely with parents to develop each infant’s daily schedule.
Flexibility with infants is key and our staff understands and appreciates this fact. Parents are kept
informed of their child’s activities through a daily log that shows meal times, nap times, and
activities.

3.2.2. Younger Toddlers Program: from 12 months to 12 months of age

When infants are 12 months of age and developmentally ready (drinking from a Sippy cup,
walking independently, and only taking one mid-day nap), they will move to our Younger
Toddlers classroom. At this age, infants are starting to develop a greater independence, but still
have a strong need for one on one affection and attention that can best be provided in a small
environment. They begin to follow a group schedule and start to work on activities in small
groups. Teachers facilitate engaging activities that help toddlers develop in ways that give them
the comfort and confidence to develop both cognitively and socially.

3.2.3. Preschool Program: from 24 months to 48 months of age

Our preschool program has two teams, the first one is from 24 months to 36 months of age and
the second on is from 24 months to 36 months of age.
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Our preschool classroom in the first team allows children more opportunity for growth and
development through the use of activity centers and structured group activities. Greater
independence emerges at this stage and children are given opportunities to explore and learn
through hands on activities. Another big milestone of this year is toilet learning. Our staff is well
trained in this area and will work closely with parents to help their child master this important
skill.

Our preschool classroom in the second team offers a variety of learning centers that allow
children to become active participants in small-group discussions and to use educational
materials to develop their skills in early literacy, Amharic math, creative expression, and
problem solving. Children at this age seek acceptance by their peers and enjoy social
interactions. With this in mind, we provide an environment that nurtures social skill
development and encourages confidence and positive self-esteem.

3.3. Technology
Since the company founder has an extensive Information Technology background, it’s only
natural that Mary Joy Day Care Center® will employ and maintain the latest technology to
enhance its curriculum, office management systems, payment processing and record keeping.

3.4. Future Services

Three additional day care centers with additional services are planned in the rural marketplace
over the next four years. Start-ups will be offered in the Debrezeit/Bisheftu, Sedafa and Sebeta
marketplace after 2 years of successful operation. The additional services are;

i. Part-time/After School Care (including drop-off and pick-up)

ii. After School Tutoring
iii. Drop-In Care

3.5. Price and Strategy

Mary joy day care center utilizes fixed rates for each of its services. It shall also utilize promos
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and packages for those utilizing more than one service at a time.

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Year Category Package Measurement Qty. Unit Price Capacity Percentage

2023 Infants 1 Child Number 1 4,500.00 9 20.45%
>1 Child Number 1 4,300.00
Toddlers 1 Child Number 1 4,300.00 15 34.10%
>1 Child Number 1 4,100.00
Preschool 1 Child Number 1 4,150.00 20 45.45%
>1 Child Number 1 3,900.00
Total 44 100%
2024 Infants 1 Child Number 1 4,800.00 9 20.45%
>1 Child Number 1 4,600.00
Toddlers 1 Child Number 1 4,500.00 15 34.10%
>1 Child Number 1 4,300.00
Preschool 1 Child Number 1 4,300.00 20 45.45%
>1 Child Number 1 4,100.00
Total 44 100%
2025 Infants 1 Child Number 1 9 20.45%
>1 Child Number 1
Toddlers 1 Child Number 1 15 34.10%
>1 Child Number 1
Preschool 1 Child Number 1 20 45.45%
>1 Child Number 1
Total 44 100%
2026 Infants 1 Child Number 1 9 20.45%
>1 Child Number 1
Toddlers 1 Child Number 1 15 34.10%
>1 Child Number 1
Preschool 1 Child Number 1 20 45.45%
>1 Child Number 1
Total 44 100%
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2027 Infants 1 Child Number 1 9 20.45%

>1 Child Number 1

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Toddlers 1 Child Number 1 15 34.10%

>1 Child Number 1
Preschool 1 Child Number 1 20 45.45%
>1 Child Number 1
Total 44 100%
Every parents must pay registration fee for each child every semester Br. 1,000.00.

Mary Joy Day Care Center will have a simple and cost-efficient start-up. The main expense shall
be used on rent, employee salary, Toys, Bed and utilities. Advertising expenses shall also use a
large chunk of the initial budget. However, this will lessen as months go on and individuals
become more aware of the service. Inventory will consist of toys, Infant carriers, seats, and
swings.

Start-Up Funding
Balance On Hand 344,180.80
Liabilities/Loan 732,441.00
Total Funding Required 1,076,621.80
 

Start-Up Expense

Requirements
Cash Balance On Starting Date 100,000.00
Rent - 6 Months 270,000.00
Advertising 45,000.00
Legal Fees 10,000.00
Furniture (table, employee shelf, child shelf) 140,000.00
Cleaning and supply 20,000.00
Medical kits 30,000.00
Swing 50,000.00
Stationery/sketching board, other etc. 10,000.00
License 5,000.00
Child Bed (30) 110,000.00
Shade 20,000.00
Painting 35,000.00
CCTV Camera(6) 20,000.00
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Computer (2) 30,000.00

Security Alarm (1) 1,000.00

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Net 10,000.00
Matts an Toys 114,800.00
Staff training Free
Brochures/sticker/Board 7,000.00
Children Books 10,000.00
Transportation Cost 25,000.00
Supplies 5,821.80
Other 8,000.00
Total Start-Up Expenses 976,621.80
4. MARKET ANALYSIS

4.1. Market Segmentation

Mary Joy Day Care Center® has a focus on meeting the local community need for child care
services within the 5-kilometre radius of CMC. Students will be taken in flexibly on either a
full-time or part-time basis.

4.1.1. Full-Time Working Couples

The day care center will establish a significantly large, full-time, regular client base in order to
establish the healthy, consistent revenue base which will ensure stability of the business.
Customer and community relations are extremely important, as it is imperative to keep the
parents pleased in order to keep their children in the day care center.

4.1.2. After School Care

Another large segment of the day care center’s business will be in the after school care market.
This client base will provide a higher profit for the day care center since instructor-to-student
ratios are higher, and the students require more educational services, which are the primary focus
of the day care center. By offering tutoring, and advanced studies in technology, theatre, arts and
sciences, the college will attract these profitable business clients, producing significant
supplemental revenues.
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4.1.3. Part-Time Workers/Drop-Ins

Part-time workers and Drop-Ins from the fitness center and local’s businesses will comprise less
than 1% of the revenues. While this market is not a primary focus, sufficient flexibility to handle
this market is important to the local ‘word-of-mouth’ marketing strategy.

4.2. Marketing Plan

There are different ways to promote child day care centers, such as utilizing traditional media,
including fliers and brochures. New media, such as official websites and social networks
including most influential person will also help disseminate information about the center.
Promotions by partnering with other websites may also be used in the future.

4.3. Target Market Segment Strategy

The target market for Mary Joy Day Care Center® is full-time working couples. Referral
marketing, direct-mail campaigns and community activity days will be the primary types of
marketing strategies utilized. Maintaining and enhancing its reputation with families and in the
community will be crucial in obtaining the planned market share growth of this target market.

4.4. Market Growth

According to CSA Census 2000 data, the population growth rate for our county is approximately
12%, which is reflected in the market analysis summary. However, the Lemi Kura Sub-City area
of Addis Ababa is experiencing a residential construction boom, yielding well over a 14.6%
growth. This is supported by data obtained from the Hillsborough County Building Permits
office and is included in the appendix of this plan. This suggests that more families continue to
move into the Riverview area, thus becoming potential customers.

In our market analysis, we suggest a modest 6% yearly growth in the number of potential
customers.

4.5. Market Needs

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With inflation continuing to rise each year, the typical Ethiopian family now requires dual or
supplemental incomes. This trend has created a need for quality child care services. We do not

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see this model changing in the foreseeable future. In fact, based on the growth in the Lemi Kura
Sub-City area, specifically the new CMC Ayat and Semi condominium and other real-estate
communities, we expect the need to increase.

4.6. Market Trends

Currently there are more family care givers than licensed child care facilities nationwide.
However, this business model can’t keep up with the needs of the growing child care industry. In
the family care giver paradigm, space is limited and quality of care is questionable – in many
cases viewed as only slightly higher quality than baby-sitter services.

4.7. Service Business Analysis

Mary Joy Day Care Center® is in the child care services industry, which includes several
models:

i. Licensed Child Care Facilities: Business facilities that offer child day care services.
ii. Family Child Care Homes: Individuals that offer child day care services in their homes.
iii. Specific Interest Based Programs: Businesses that offer specialized instruction such as
gymnastics, martial arts and athletics.
iv. Church Child Care Facilities: Religious organizations that offer child day care services
in their communities.

4.8. Competition and Buying Patterns

Price, service, certification and reputation are critical success factors in the child care services
industry. Mary Joy Day Care Center® will compete well in our market by offering competitive
prices, high-quality child care services, and leading-edge educational programs with certified,
college-educated instructors, and by maintaining an excellent reputation with parents and the
community in which we serve.

4.9. Main Competitors

4.9.1. XX Day Care:

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 Strengths: Large church congregation. Already established in market.

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 Weaknesses: May not appeal to customers of different religious beliefs.

Unlicensed facility. Non-accredited.

4.9.2. XX Day Care:

 Strengths: Already established in area. Martial arts offering with child care
services.
 Weaknesses: Location – outside of middle-income market. Non-educational
offering. Building condition – prone to constant flooding.

4.9.3. Family Child Care Homes:

 Strengths: Established in market. “Personal” service.
 Weaknesses: Capacity – only allowed a certain number of children. Non-
professional stigma.

4.10. Business Participants

i. Licensed Child Care Centers: Kids Kountry, Lapetite Academy, Mary Go Round Child
Care Center and Bloomingdale Academy. While these centers are within the 10-mile
radius target area, none are inside a 5-mile radius of the Lake St. Charles community.
None of these facilities are nationally accredited.
ii. Family Child Care Homes: Mindy Rumore FCCH and Stacie Dawn Hamann FCCH.
iii. Specific Interest Based Programs: Martial Arts America
iv. Church Child Care Facilities: Christian Day Academy (not licensed).

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4.11. Organizational Structure

Board of
Directors

General
Manager

Legal Adivicer

Manager

Bebysitter
Reception Medical/Nurse Techer Security
Head

5. STRATEGY AND IMPLEMENTATION

Mary Joy Day Care Center® will focus on three subdivisions: ‘CMC’, ‘Ayat’ and ‘Semit’ which
are new upscale community developments within a 3 square kilometer radius and boast existing
and new homes.

The target customers are supplementary/dual income, middle-class families who value the
quality of education and child care provided for their children ages 6 months to 48 months.

5.1. Significance Proposition

Mary Joy Day Care Center® value proposition is quite clear and quite easily distinguished from
others in the market. We offer uniquely premium child care services, as measured by the
curriculum and activities offered, experience and educational level of the instructors, community
involvement and community day care theme.
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5.1.1. SWOT Analysis

Strengths
 Offers high-quality services
 Has a loyal client base, because of our
Goodwill?
 Vast experience with different children
Opportunities
 Potential to grow business
 Provide more services for clients
 Niche market of customers
Weaknesses
 Lack of exposure in the market
 Not able to provide long-term boarding
 Ongoing costs affect business dynamics
Threats
 Loyal client base in competitor centers
 Increasing number of competitors
 Increased cost of living

5.2. Competitive Edge

We start with a critical competitive edge: there is some competitor in our market, but that is not
offering our concept, quality of facilitation program and child care services. Our child care
approach is unique and our founder have a resource with over 25 years of child care expertise
know-how by the charity. Our positioning on these points is very hard to match, but only if we
maintain the focus in our strategy, marketing, business development, and fulfillment. We should
be aware that the tendency to dilute this expertise with bargain shopping could weaken the
importance of our competitive edge, but we must continue to bolster our value proposition.

5.3. Marketing Strategy

Marketing in the child care industry depends largely on reputation and referral. At Mary Joy Day
Care Center® that reputation will start within our community bolstered by our involved
commitment to those we serve.

5.4. Promotion Strategy

We will depend on client referrals, community exposure and direct mail campaigns as our main
way to reach new clients. As we change strategies, however, we need to change the way we
promote ourselves:
i. Advertising– We will be developing our core positioning message: “Anywhere there are
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you, we are there with your children!” to differentiate our service from the competition.

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We will be using website searching with social media and direct mail/SMS campaigns,
pre-enrollment drives, and local community TV and Radio advertising to launch the
initial campaign.
ii. Sales Brochure– Our theme and curriculum will help sell the day care center to
prospective clients.
iii. Website Searching with Social Media and Direct Mail/SMS– We will send quarterly
direct mail campaigns to the housing developments in a 5-kilometer radius of the day
care center. We will also offer yearly calendars for parents and the CMC, Ayat and Semit
community, noting weekend family days and other open house approaches.
iv. Community Involvement– We will be active in the CMC, Ayat and Semit community,
sponsoring events at the community center for families and residents.

5.5. Marketing Programs

Catered art and sport, visiting historical and cultural museum, families’ day, spiritual education
for the followers of each religion by honored preacher matinees are but a few approaches we will
utilize to reach out to our community. We will also develop and maintain partnerships with local
businesses that cater to the needs of children.

Our pre-opening effort will include an application fee waiver, free children ID cards, T-shirts and
a community block party sponsored and hosted by Mary Joy Day Care Center®.

5.6. Positioning Statement

For families who value the importance of quality child care services, Mary Joy Day Care
Center® offers a great alternative to traditional child care services and specific interest based
programs. Unlike those programs, Mary Joy Day Care Center® combines child care services
with a modified collegiate level curriculum, just for kids!

5.7. Pricing Strategy

Mary Joy Day Care Center® must charge appropriately for the high-end, high-quality
educational and care giving services we offer. Our revenue structure has to support our cost
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structure, so the salaries we pay to assure quality services must be balanced by the revenue we
charge.

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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.

5.8. Sales Strategy

Mary Joy Day Care Center® will sell its community day care center theme, services and
offerings, separating itself from traditional day care only offerings.

We will be a one-stop shop for child care services, advanced learning and specialized program
offerings. We will also be active in the community, building a solid reputation with parents and
the community. By succeeding in these areas, we expect to begin seeing an operational net profit
in month nine of the 1st year, while increasing enrollment by 32% monthly for the 1 st 8 months
and gradually thereafter, until our maximum allowed capacity is reached.

5.9. Sales Forecast

The following table and chart give a run-down on forecasted sales. A detailed spreadsheet is
also included in the appendix of this business plan.

For the first eight months of operation, Mary Joy Day Care Center® has assumed a conservative
enrollment due to the fact that school, aftercare and child care placement has already taken place
for the school year and most parents will be comfortable with their current arrangements.
Consequently, we expect initial enrollment to be far less than anticipated future year levels.

A sales increase of approximately 32% each month is expected until the start of the next school
term, in August. While this forecasted increase seems large by industry standards, it is a good
estimate based on initial enrollment. Going into years 2 and 3, we expect that our presence will
be known, convenience factor considered and we will then be a considered as a choice in August
2003. In fiscal years 2004 and 2005, 80% and 90% of full enrollment is assumed respectively.

We expect to be open for business on January 1, 2003, starting with an initial enrollment of 13
students:
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7 Full-time students at $115 each per week. 6 After-school students at $60 each per week and
Drop-in revenue of approximately $100 per month.

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Sales Forecast
Unit Sales
Full-time Couples 199 455 512
After School Care 141 220 248
Summer Camp 26 29 31
Part-time Workers/Drop-Ins 12 14 16
Total Unit Sales 378 718 807
Unit Prices Year 1 Year 2 Year 3
Full-time Couples $460.00 $460.00 $460.00
After School Care $240.00 $240.00 $240.00
Summer Camp $460.00 $460.00 $460.00
Part-time Workers/Drop-Ins $100.00 $100.00 $100.00
Sales
Full-time Couples $91,540 $209,300 $235,520
After School Care $33,840 $52,800 $59,400
Summer Camp $11,960 $13,340 $14,352
Part-time Workers/Drop-Ins $1,200 $1,380 $1,587
Total Sales $138,540 $276,820 $310,859
Direct Unit Costs Year 1 Year 2 Year 3
Full-time Couples $13.34 $13.82 $13.82
After School Care $4.56 $4.75 $4.75
Summer Camp $13.80 $13.80 $13.80
Part-time Workers/Drop-Ins $0.00 $0.00 $0.00
Direct Cost of Sales
Full-time Couples $2,655 $6,288 $7,076
After School Care $643 $1,045 $1,176
Summer Camp $359 $400 $431
Part-time Workers/Drop-Ins $0 $0 $0
Subtotal Direct Cost of Sales $3,656 $7,733 $8,682

5.10. Sales Programs

Sales programs will include incentives for obtaining quarterly financial and enrollment goals,
probationary period completion, passing county inspections and maintaining perfect attendance. 

Customer service awards will be provided for those employees who best exemplify the mission
of Kid’s Community College® and exceed customers’ expectations. 
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5.11. Milestones

The accompanying table highlights important start-up milestones, with dates, completion status,

responsible parties and budgets for each.  The milestone schedule indicates our emphasis on
planning for implementation. 

What the table doesn’t show is the commitment behind it.  Our business plan includes complete
provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss
the variance and course corrections.

Milestones
Milestone Start Date End Date Budget Manager Department
Business Plan 8/1/2002 9/30/2002 $200 Tim Department
Kilpatrick
Lease RFP 7/15/2002 7/30/2002 $0 Tim Department
Kilpatrick
Site Selection 8/1/2002 9/15/2002 $0 Tim Department
Kilpatrick
Architect Design 9/15/2002 10/1/2002 $0 Zimmer Department
Secure Additional 10/1/2002 10/30/2002 $500 Tim Department
Funding Kilpatrick
Sign Lease 10/15/200 10/30/2002 $4,500 Tim Department
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2 Kilpatrick
Personnel Plan 10/1/2002 10/30/2002 $0 Tim Department
Kilpatrick

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Curriculum Development 10/1/2002 12/31/2002 $500 Candice Department

Harris
County Certification Req. 9/20/2002 12/31/2002 $100 Tim Department
Kilpatrick
Licensing 12/1/2002 12/31/2002 $0 Tim Department
Kilpatrick
Totals $5,800

5.12. Strategic Alliances

As mentioned previously, Kid’s Community College® will form professional alliances with
Impact Fitness to offer Drop-In child care services while parents work out.  We will also partner
with Family Pediatrics to provide referrals of their existing customers.  A discounted rate will be
offered in both cases.

6. Web Plan

The Kid’s Community College® website will be the virtual business card and portfolio for the
college, as well as its online “home.”

It will showcase the campus, curriculum and activity calendar for the school.  It will also provide
for an Internet background of the instructors, online projects posted by the students, the campus
newsletter and online enrollment. 

The Kid’s Community College® website will be simple, yet classy and well designed, but at the
same time, in keeping with the latest trends in user interface design.  A site that is too flashy, or
tries to use too much of the latest technology can be over-done, and may not be supported by all
browsers. 

The key to the website strategy will be presenting a very well designed and informative Web
presence that will market the Kid’s Community College® image, service offerings and
community commitment.
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6.1. Website Marketing Strategy

The Kid’s Community College® website will embody the mission of the college.  It will not
only offer visitors the opportunity to “look around” the campus, but it will give them a good idea
of the level of quality and service they can come to expect from the college.

Mostly informative in nature, the website will be a digital representation of our physical self. 

6.2. Development Requirements

The Kid’s Community College® website will be developed by the college founder, Timothy
B. Kilpatrick, Sr., who has over 17 years of Information Technology experience.  Formation
Technologies will host the site.

The site will be developed using Macromedia Dreamweaver 4, which will allow for support
outside of Mr. Kilpatrick’s involvement.  The initial maintenance of the site will be done by
Mr. Kilpatrick.

7. Management Summary

The opening management team of Kid’s Community College® will consist of the founder, a
silent partner, a campus director and administrative assistant.

As the college grows, gradual investments in the instructional staff will be made over the next 3
years – beginning in June 2003 or as otherwise dictated by enrollment.

Organizational Structure

Kid’s Community College® depends on the founder, silent partner, Campus Director and VP of
Education Operations for management in the following roles:

Management Team
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Owner/President – Timothy B.  Kilpatrick, Sr.  The Owner/President will have overall fiscal
responsibility, ensuring that the business is financially sound and attains its planned goals. 

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 17 years Executive Management (VP) and Budgeting experience

 Advanced degree in Computer Science
 Proven leadership and employee development ability
 Extensive experience with budgeting methodologies and strategic planning, including the
Balanced Scorecard approach.

Industry Consultant – Carolyn Steverson.  The Industry Consultant will be relied upon for her
industry expertise, providing valuable insight to rules, regulations and governmental programs
that may benefit the college.

 25 Year owner of Fat Albert Day Care Center

 Licensed child care facility owner
 Vast knowledge of Hillsborough County Child Care Licensing requirements and
government supplemental programs

Campus Director – Candice Harris.  The Campus Director will be responsible for daily
operations, curriculum oversight and management of all instructors, caregivers and tutors.

 B.S.  Degree in Education

 2 years facilities administration/support experience with the University of South Florida
 2+ years Regional Operations Manager
 5+ years managerial/supervisory experience
 3+ years grant writing, technical writing, workflow and process documentation
experience

VP of Education Operations – Nitika Steverson-Kilpatrick

 Collegiate-level Public Relations education

 5+ years customer service experience
 8+ years child care industry experience (her mother owns Fat Albert Daycare)
 Extensive theatre and dance background
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Management Team Gaps

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The present team requires Child Care Development Associate credentials to support our value
proposition and preparation for 2004 Florida child care requirements.  Currently, the Campus
Director and Industry Consultant are the only members of the management team who have these
credentials.

The Owner/President and VP of Education Operations will be enrolling in January 2003 to

complete the six-month course required to obtain these credentials.  Education for these
two can’t begin in this area until that time since it is a requirement that the college be open for
business before the course work can begin.  Long-term, all full-time instructors will be required
by the college (not the State) to obtain this credential.

Regarding financial administration, we will retain a strong CPA to help the owner guard cash
flow.  While the owner is well versed in the worries of cash flow, he also has the sense to listen
to reason and deal with constraints, as guided by the CPA.

Personnel Plan

The following table summarizes our personnel expenditures for the first three years, with
compensation increasing from approximately $57K the first year to about $113K in the third. 
We believe this plan is a fair compromise between fairness and expedience, and meets the
commitment of our mission statement. 

The yearly figures in the second and third year are assumptions for the Lake St. Charles campus
only.  The numbers reflect 100% enrollment, a full staff of instructors and a 5% payroll increase
each year – which will include tuition reimbursement, pay increases, vacation pay, bonuses and
state required certifications.

Personnel Plan
Campus Director $23,877 $25,071 $26,324
F/T Instructors $21,760 $61,440 $64,512
P/T Instructors $11,400 $21,600 $22,680
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Total People 5 8 8
Total Payroll $57,037 $108,111 $113,516
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8. Financial Plan

 Kid’s Community College® will finance growth mainly through cash flow.  It is

recognized that this means the school will have to grow gradually into the planned four
campuses. 
 The most important factor in our case is enrollment.  We must stay focused on our
enrollment plan and maintain budgeted enrollment levels. 
 Adequate start-up capital is assumed, along with an SBA 5-year guaranteed loan.

8.1. Important Assumptions

The Kid’s Community College® financial plan depends on important assumptions, most of
which are shown in the following table as annual assumptions.  The monthly assumptions are
included in the appendices.  From the beginning, it is recognized that total enrollment is critical,
which is a factor that must be influenced immediately.  Interest rates, tax rates, and personnel
burden are based on conservative assumptions. 

The most important underlying assumption is that there is a strong need for the business in the
Lake St. Charles community. 

General Assumptions
Plan Month 1 2 3
Current Interest Rate 7.00% 7.00% 7.00%
Long-term Interest 7.00% 7.00% 7.00%
Rate
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
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8.2. Key Financial Indicators

The following benchmark chart indicates the key financial indicators for the first three years. 
We foresee a gradual growth in sales (enrollment) and operating expenses into the second and
third year.

It is projected that the raw gross margin will remain stable for the first three years since expenses
are relatively indirect in the service based course work industry.  Operating expenses increase
gradually as enrollment increases.

Enrollment is very important.  We must maintain an average weekly enrollment of 34 students

for fixed cost coverage

Break-even Analysis

For the break-even analysis, start-up monthly running costs assumptions are shown in the table
below, including a three-person payroll, rent, utilities and an estimation of other running costs. 
Payroll, at median market averages, was presented previously in the Personnel table. 

Based on these assumptions, the chart below shows the enrollment of students per month needed
to break-even.  This represents about 46% of our allowable monthly enrollment based on state
and county course work guidelines.

Break-even Analysis
Monthly Units Break-even 34
Monthly Revenue Break-even $12,350
Assumptions:
Average Per-Unit Revenue $366.51
Average Per-Unit Variable Cost $9.67
Estimated Monthly Fixed Cost $12,024

Projected Profit and Loss

Our projected profit and loss is shown on the following table, with sales increasing from the first
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year to the third. 

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In years two and three, we are projecting full enrollment regarding cost of sales and gross
margin.  The investment return in these years supports the goal of opening another campus at the
end of the second year and begin the franchise offering by the end of the third year.  Profit from
the additional campuses and income from franchising are not included in this business plan. 

The detailed monthly projections are included in the appendices.

Pro Forma Profit and Loss
Sales $138,540 $276,820 $310,859
Direct Cost of Sales $3,656 $7,733 $8,682
Hidden Row $0 $0 $0
Total Cost of Sales $3,656 $7,733 $8,682
Gross Margin $134,884 $269,087 $302,177
Gross Margin % 97.36% 97.21% 97.21%
Expenses
Payroll $57,037 $108,111 $113,516
Sales and Marketing and Other Expenses $2,200 $3,500 $3,500
Depreciation $0 $0 $0
Rent $58,800 $59,500 $60,000
Utilities $10,500 $10,500 $10,500
Insurance $7,200 $7,200 $7,200
Payroll Taxes $8,556 $16,217 $17,027
Other $0 $0 $0
Total Operating Expenses $144,293 $205,027 $211,744
Profit Before Interest and Taxes ($9,409) $64,059 $90,433
EBITDA ($9,409) $64,059 $90,433
Interest Expense $3,819 $3,144 $2,440
Taxes Incurred $0 $18,275 $26,398
Net Profit ($13,228) $42,641 $61,595
Net Profit/Sales -9.55% 15.40% 19.81%

Projected Cash Flow

The following cash flow projections show the annual amounts only, significant for the first year
mainly in the amounts projected in cash sales and payables. 

Cash flow projections are critical to the success of Kid’s Community College®.  The monthly
cash flow is shown in the illustration, with one bar representing the cash flow per month and the
other the monthly cash balance.  The annual cash flow figures are included here and the more
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important detailed monthly numbers are included in the appendices.

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Pro Forma Cash Flow

Cash Received
Cash from Operations
Cash Sales $138,540 $276,820 $310,859
Subtotal Cash from Operations $138,540 $276,820 $310,859
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $138,540 $276,820 $310,859
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $57,037 $108,111 $113,516
Bill Payments $86,777 $123,660 $134,952
Subtotal Spent on Operations $143,814 $231,771 $248,468
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $10,057 $10,057 $10,057
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $153,871 $241,828 $258,525
Net Cash Flow ($15,331 $34,992 $52,334
)
Cash Balance $50,219 $85,211 $137,545

Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth, and
a gradually sufficient healthy financial position.  The monthly estimates are included in the
appendices.

Pro Forma Balance Sheet

Assets
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Current Assets
Cash $50,219 $85,211 $137,545
Other Current Assets $14,130 $14,130 $14,130

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Total Current Assets $64,349 $99,341 $151,675

Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $64,349 $99,341 $151,675
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $7,954 $10,362 $11,157
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $7,954 $10,362 $11,157
Long-term Liabilities $49,943 $39,886 $29,829
Total Liabilities $57,897 $50,248 $40,986
Paid-in Capital $59,130 $59,130 $59,130
Retained Earnings ($39,450)($52,678 ($10,037)
)
Earnings ($13,228) $42,641 $61,595
Total Capital $6,452 $49,093 $110,688
Total Liabilities and $64,349 $99,341 $151,675
Capital
Net Worth $6,452 $49,093 $110,688

Business Ratios

The following table shows the projected businesses ratios for our industry: Child Day Care
services, SIC code 8351. Kid’s Community College® expects to maintain healthy ratios for
profitability, risk, and return.

Ratio Analysis
Sales Growth n.a. 99.81% 12.30% 6.98%
Percent of Total Assets
Other Current Assets 21.96% 14.22% 9.32% 30.21%
Total Current Assets 100.00% 100.00 100.00% 60.28%
%
Long-term Assets 0.00% 0.00% 0.00% 39.72%
Total Assets 100.00% 100.00 100.00% 100.00%
%
Current Liabilities 12.36% 10.43% 7.36% 27.78%
Long-term Liabilities 77.61% 40.15% 19.67% 24.23%
Total Liabilities 89.97% 50.58% 27.02% 52.01%
9/1/2022

Net Worth 10.03% 49.42% 72.98% 47.99%

Percent of Sales

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Sales 100.00% 100.00 100.00% 100.00%

%
Gross Margin 97.36% 97.21% 97.21% 100.00%
Selling, General & Administrative 113.51% 78.74% 72.22% 81.45%
Expenses
Advertising Expenses 0.00% 0.00% 0.00% 0.88%
Profit Before Interest and Taxes -6.79% 23.14% 29.09% 1.52%
Main Ratios
Current 8.09 9.59 13.59 1.96
Quick 8.09 9.59 13.59 1.56
Total Debt to Total Assets 89.97% 50.58% 27.02% 60.93%
Pre-tax Return on Net Worth -205.01% 124.08 79.50% 2.47%
%
Pre-tax Return on Assets -20.56% 61.32% 58.01% 6.32%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -9.55% 15.40% 19.81% n.a
Return on Equity -205.01% 86.86% 55.65% n.a
Activity Ratios
Accounts Payable Turnover 11.91 12.17 12.17 n.a
Payment Days 27 27 29 n.a
Total Asset Turnover 2.15 2.79 2.05 n.a
Debt Ratios
Debt to Net Worth 8.97 1.02 0.37 n.a
Current Liab. to Liab. 0.14 0.21 0.27 n.a
Liquidity Ratios
Net Working Capital $56,396 $88,979 $140,517 n.a
Interest Coverage -2.46 20.37 37.06 n.a
Additional Ratios
Assets to Sales 0.46 0.36 0.49 n.a
Current Debt/Total Assets 12% 10% 7% n.a
Acid Test 8.09 9.59 13.59 n.a
Sales/Net Worth 21.47 5.64 2.81 n.a
Dividend Payout 0.00 0.00 0.00 n.a

9. ENVIRONMENTAL ASPECT- REGULATION AND ENVIRONMENT

ISSUES
 The issues regarding waste management may arise since the van would be moving from
place to place providing its services creating waste from various packaging.
 The proposed business is based on movable vehicle; thus the parking congestion will arise.
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9.1. FMHACA (Federal Medical and Health Career Administration and Control
Office)
Sections 1 to 6 of the Food Rules and Regulations of Addis Ababa (2007) aims at the
enhancement of food safety and the orderly development of the food industry by defining
hygienic minimum requirements for food businesses and procedures for licensing of food
businesses and their operators.

All food businesses, big or small, whether operating from a business premises, at home or from a
mobile unit or food stall, must be aware of the legislation regarding food hygiene and food
safety. Ultimately, you are primarily responsible for ensuring the safety of the food you produce.

Food business operations must comply with the Criteria for Good Hygienic and Manufacturing
Practices for Licensing of Food Business.

The issuance of the Food Safety License will be done in accordance to the Food Safety Licensing
of Food Businesses – Licensing Process which provides details on:

a) Application Review
b) Legal requirements
c) Conducting Inspections
d) Evaluation
e) Conditional Food Safety Clearance
f) Licensing Decision
g) Food Safety Clearance
According to the FMHACA the important thing for the food business is that the business
premises should be hygienic and food safety must be considered. The proposed business will
comply with the regulations by having the properly maintained premises and waste disposal
garbage. It will also abide with the food safety measures.

10. FINAL FUNDING AND RECOMMENDATION

The proposed financially feasible and has a scope in the market as it would be first of its kind to
exist in the market. However due to legal restrictions and drawbacks stated by the Addis Ababa,
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the concept has not been implemented.

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Only if Addis Ababa could allow implementing the proposed idea, could the business be able to
enter into the market and provide their services. Provided with the condition that the proposed
business will properly manage their waste and abide by the rules and regulation imposed by the
Addis Ababa.

11. CONCLUSION
As a conclusion, Mary Joy Day Care Center® is a business establishment that always wants to
make it in the child day care service. Our business can compete well with other similar business
as well. Moreover, Mary Joy Day Care Center® has make lots of efforts during the survey for
the establishment of business and in terms of its financial projections. In connection with that,
we are aiming to provide our service according to our customers’ wants, desire and needs. We
are very confident and believe that our business venture will create and establish a very
satisfactory investment return every year.

Our business will continuously make concentrate in the business strategies, especially in terms of
marketing to ensure that the business is well known to the customers. We hope that we will be
able to build a good loyal customer base in every year.

9/1/2022

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APPENDIX
Sales Forecast
Unit Sales
Full-time Couples 0% 6 8 10 12 12 10 10 20 27 27 27 30
After School Care 0% 6 6 6 6 6 8 8 15 20 20 20 20
Summer Camp 0% 0 0 0 0 0 13 13 0 0 0 0 0
Part-time 0% 1 1 1 1 1 1 1 1 1 1 1 1
Workers/Drop-Ins
Total Unit Sales 13 15 17 19 19 32 32 36 48 48 48 51
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Full-time Couples $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00
After School Care $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00
Summer Camp $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00 $460.00
Part-time $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00
Workers/Drop-Ins
Sales
Full-time Couples $2,760 $3,680 $4,600 $5,520 $5,520 $4,600 $4,600 $9,200 $12,420 $12,420 $12,420 $13,800
After School Care $1,440 $1,440 $1,440 $1,440 $1,440 $1,920 $1,920 $3,600 $4,800 $4,800 $4,800 $4,800
Summer Camp $0 $0 $0 $0 $0 $5,980 $5,980 $0 $0 $0 $0 $0
Part-time $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Workers/Drop-Ins
Total Sales $4,300 $5,220 $6,140 $7,060 $7,060 $12,600 $12,600 $12,900 $17,320 $17,320 $17,320 $18,700
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Full-time Couples 2.90% $13.34 $13.34 $13.34 $13.34 $13.34 $13.34 $13.34 $13.34 $13.34 $13.34 $13.34 $13.34
After School Care 1.90% $4.56 $4.56 $4.56 $4.56 $4.56 $4.56 $4.56 $4.56 $4.56 $4.56 $4.56 $4.56
Summer Camp 3.00% $13.80 $13.80 $13.80 $13.80 $13.80 $13.80 $13.80 $13.80 $13.80 $13.80 $13.80 $13.80
Part-time 0.00% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Workers/Drop-Ins
Direct Cost of Sales
Full-time Couples $80 $107 $133 $160 $160 $133 $133 $267 $360 $360 $360 $400
After School Care $27 $27 $27 $27 $27 $36 $36 $68 $91 $91 $91 $91
Summer Camp $0 $0 $0 $0 $0 $179 $179 $0 $0 $0 $0 $0
Part-time $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Workers/Drop-Ins
Subtotal Direct $107 $134 $161 $187 $187 $349 $349 $335 $451 $451 $451 $491
Cost of Sales

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Personnel Plan
Campus Director 0% $1,833 $1,833 $1,833 $2,042 $2,042 $2,042 $2,042 $2,042 $2,042 $2,042 $2,042 $2,042
F/T Instructors 0% $1,280 $1,280 $1,280 $1,280 $1,280 $1,280 $1,280 $2,560 $2,560 $2,560 $2,560 $2,560
P/T Instructors 0% $600 $600 $600 $600 $600 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Total People 3 3 3 3 3 4 4 5 5 5 5 5
Total Payroll $3,713 $3,713 $3,713 $3,922 $3,922 $4,522 $4,522 $5,802 $5,802 $5,802 $5,802 $5,802
General Assumptions
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Long-term Interest 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Rate
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss

Sales $4,300 $5,220 $6,140 $7,060 $7,060 $12,600 $12,600 $12,900 $17,320 $17,320 $17,320 $18,700
Direct Cost of Sales $107 $134 $161 $187 $187 $349 $349 $335 $451 $451 $451 $491
Hidden Row $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $107 $134 $161 $187 $187 $349 $349 $335 $451 $451 $451 $491
Gross Margin $4,193 $5,086 $5,979 $6,873 $6,873 $12,251 $12,251 $12,565 $16,869 $16,869 $16,869 $18,209
Gross Margin % 97.50% 97.43% 97.38% 97.35% 97.35% 97.23% 97.23% 97.40% 97.39% 97.39% 97.39% 97.37%
Expenses
Payroll $3,713 $3,713 $3,713 $3,922 $3,922 $4,522 $4,522 $5,802 $5,802 $5,802 $5,802 $5,802
Sales and Marketing and $0 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200 $200
Other Expenses
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900 $4,900
Utilities $875 $875 $875 $875 $875 $875 $875 $875 $875 $875 $875 $875
Insurance $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Payroll Taxes 15% $557 $557 $557 $588 $588 $678 $678 $870 $870 $870 $870 $870
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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Total Operating $10,645 $10,845 $10,845 $11,085 $11,085 $11,775 $11,775 $13,247 $13,247 $13,247 $13,247 $13,247

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Expenses
Profit Before Interest ($6,452) ($5,759) ($4,866) ($4,213 ($4,213) $475 $475 ($683) $3,621 $3,621 $3,621 $4,961
and Taxes )
EBITDA ($6,452) ($5,759) ($4,866) ($4,213 ($4,213) $475 $475 ($683) $3,621 $3,621 $3,621 $4,961
)
Interest Expense $345 $340 $335 $330 $326 $321 $316 $311 $306 $301 $296 $291
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($6,797) ($6,099) ($5,201) ($4,543 ($4,538) $155 $160 ($993) $3,315 $3,320 $3,325 $4,670
)
Net Profit/Sales - - -84.71% - -64.28% 1.23% 1.27% -7.70% 19.14% 19.17% 19.20% 24.97%
158.08% 116.84% 64.35%
Pro Forma Cash Flow
Cash Received
Cash from Operations
Cash Sales $4,300 $5,220 $6,140 $7,060 $7,060 $12,600 $12,600 $12,900 $17,320 $17,320 $17,320 $18,700
Subtotal Cash from $4,300 $5,220 $6,140 $7,060 $7,060 $12,600 $12,600 $12,900 $17,320 $17,320 $17,320 $18,700
Operations
Additional Cash
Received
Sales Tax, VAT, 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
New Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Sales of Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Sales of Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
New Investment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
Subtotal Cash Received $4,300 $5,220 $6,140 $7,060 $7,060 $12,600 $12,600 $12,900 $17,320 $17,320 $17,320 $18,700
Expenditures Month 1 Month 2 Month 3 Month Month 5 Month Month Month Month Month Month Month
4 6 7 8 9 10 11 12
Expenditures from
Operations
Cash Spending $3,713 $3,713 $3,713 $3,922 $3,922 $4,522 $4,522 $5,802 $5,802 $5,802 $5,802 $5,802
Bill Payments $246 $7,392 $7,607 $7,630 $7,681 $7,685 $7,923 $7,924 $8,095 $8,203 $8,198 $8,194
Subtotal Spent on $3,959 $11,105 $11,320 $11,552 $11,603 $12,207 $12,445 $13,726 $13,897 $14,005 $14,000 $13,996

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Additional Cash Spent

Sales Tax, VAT, $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
HST/GST Paid Out
Principal Repayment of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Long-term Liabilities $838 $838 $838 $838 $838 $838 $838 $838 $838 $838 $838 $838
Principal Repayment
Purchase Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $4,797 $11,943 $12,158 $12,390 $12,441 $13,045 $13,283 $14,564 $14,735 $14,843 $14,838 $14,834
Net Cash Flow ($497) ($6,723) ($6,018) ($5,330 ($5,381) ($445) ($683) ($1,664 $2,585 $2,477 $2,482 $3,866
) )
Cash Balance $65,053 $58,330 $52,312 $46,982 $41,601 $41,156 $40,473 $38,809 $41,394 $43,871 $46,353 $50,219

Pro Forma Balance Sheet

Assets Starting
Balances
Current Assets
Cash $65,550 $65,053 $58,330 $52,312 $46,982 $41,601 $41,156 $40,473 $38,809 $41,394 $43,871 $46,353 $50,219
Other Current Assets $14,130 $14,130 $14,130 $14,130 $14,130 $14,130 $14,130 $14,130 $14,130 $14,130 $14,130 $14,130 $14,130
Total Current Assets $79,680 $79,183 $72,460 $66,442 $61,112 $55,731 $55,286 $54,603 $52,939 $55,524 $58,001 $60,483 $64,349
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation
Total Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Assets
Total Assets $79,680 $79,183 $72,460 $66,442 $61,112 $55,731 $55,286 $54,603 $52,939 $55,524 $58,001 $60,483 $64,349
Liabilities and Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month Month 11 Month 12
Capital 10
Current Liabilities
Accounts Payable $0 $7,138 $7,353 $7,374 $7,425 $7,420 $7,659 $7,654 $7,822 $7,929 $7,925 $7,920 $7,954
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal Current $0 $7,138 $7,353 $7,374 $7,425 $7,420 $7,659 $7,654 $7,822 $7,929 $7,925 $7,920 $7,954

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Liabilities
Long-term Liabilities $60,000 $59,162 $58,324 $57,486 $56,648 $55,810 $54,972 $54,134 $53,295 $52,457 $51,619 $50,781 $49,943

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Total Liabilities $60,000 $66,300 $65,677 $64,860 $64,073 $63,230 $62,631 $61,788 $61,117 $60,387 $59,544 $58,701 $57,897
Paid-in Capital $59,130 $59,130 $59,130 $59,130 $59,130 $59,130 $59,130 $59,130 $59,130 $59,130 $59,130 $59,130 $59,130
Retained Earnings ($39,450) ($39,450) ($39,450 ($39,450) ($39,450 ($39,450) ($39,450 ($39,450) ($39,450 ($39,450) ($39,450 ($39,450) ($39,450)
) ) ) ) )
Earnings $0 ($6,797) ($12,897 ($18,098) ($22,641 ($27,179) ($27,024 ($26,865) ($27,858 ($24,543) ($21,223 ($17,898) ($13,228)
) ) ) ) )
Total Capital $19,680 $12,883 $6,783 $1,582 ($2,961) ($7,499) ($7,344) ($7,185) ($8,178) ($4,863) ($1,543) $1,782 $6,452
Total Liabilities and $79,680 $79,183 $72,460 $66,442 $61,112 $55,731 $55,286 $54,603 $52,939 $55,524 $58,001 $60,483 $64,349
Capital
Net Worth $19,680 $12,883 $6,783 $1,582 ($2,961) ($7,499) ($7,344) ($7,185) ($8,178) ($4,863) ($1,543) $1,782 $6,452

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