Strengths

The strength portion of a SWOT analysis needs to discuss the demand for the center's services. Single parents
are usually workers who need child care, and there are many marriages in which both people work and are in
need of day care for their children. In terms of a start-up, there is also the strength of having potential funding
from local or federal government agencies eager to help improve access to quality child care. In terms of
personal satisfaction, another strength of this type of business is that it provides a creative aspect for the owner
who is able to develop the theme and early childhood curriculum to be used. This strength works hand in hand
with the contribution to the community you provide when you offer quality child care that enriches the lives of
your charges.

Weaknesses
In your SWOT analysis, be objective about the potential weaknesses of your business model. This will help
you prepare for challenges and avoid pitfalls later in the process. Start-up costs can be exorbitant, as they
include a building with a kitchen, insurance, supplies and a marketing budget. You must also obtain licensing
to run the operation and be in compliance with all local, state and federal laws. Don't forget to include the daily
costs of running the business, including utilities and food. Finally, the maintenance of the center can be
expensive with painting, repairs, replacement furniture and other supplies.

Opportunities
The potential opportunities associated with a day care business can be exciting. There is always the potential of
growth, which includes not only more children but the possibility of additional buildings. Once established, the
opportunity exists to partner with businesses in the area who could potentially subsidize the cost for employees
who use your center. It is also feasible for you to provide care for children whose low-income families benefit
from government programs, which could help ensure that you'll receive full payment.

Threats
The threats aspect of a day care center should focus on competition, especially from companies that offer in-
house child care. There is also the possibility of lawsuits for alleged cases of neglect or abuse, which can
happen even in the best-run and -staffed facilities. There is also the risk of high employee turnover and
difficulties in finding qualified staff members.

Analysis
A SWOT report is useless unless you analyze it to determine the profitability of a day care center in your area.
You must look at every aspect equally and decide whether the SWOT favors the proposition or not. Even if
your SWOT reveals several weaknesses and threats, this can be a good thing since it forces you to find
solutions to these issues. For example, the threat of lawsuits can be addressed through the purchase of liability
insurance that covers a variety of situations that can occur involving children and parents on your premises.
This threat can also be mitigated if you develop excellent employee training materials and center policies for
security and safety. A small-business owner can also use a SWOT analysis in writing a business plan and to
help gain investors and additional funding in the form of business loans.