PROGRAM

Title: Feasibility Study on Day Care Center in the case of Lovely daycare
Center

Table of Contents
Summary …………………………………………………………………..1
Project background and justification.......................................................2
Initial investment ……………………………………………………….3
Organization and staffing..........................................................................4
benefits of the project...............................................................................6
supplysupply................................................................................................................
......................................8demand.................................................................................
...................................................................8financial analysis and
projection............................................................................................8project
appraisal
criteria..............................................................................................................9disco
unted pay-back
period.......................................................................................................................9
npv (net present
value)...........................................................................................................................
..9irr (internal rate of
return).........................................................................................................................
9bcr (benefit cost
ratio)............................................................................................................................
9posible risks of the
project..........................................................................................................10compo
nents of the project plan
SUMMARY
NAME OF BUSINESS:-
Lovely Day Care Center
LEGAL FORM: -
SOLE PROPRIETORSHIPCONTACT ADDRESS:
CITY :
ADDIS ABABA
SUB CITY
YEKA
This feasibility study is a project to open a Child care/Day care center in
Yeka Sub sity, AddisAbaba and to be located around Megenagna and Hayahulet
area. Megenagna and Hayahulet area poten  al area for day care service, as
there are so many residents and workers in this area,and it is found that
there are only few one who gives a day care service in this area and openingone
will be viable.The target customers are the middle and upper income parents who
will be busy during the dayto take care of their children’s.The total required
startup capital to start the business is birr 1,200,000.00 and it will be
fullcovered by the promoters or the potenal investors private saving. And it is
assumed that theproject will start immediately as long as nancial and legal
formalies are fullled and will lastfor ve years
PROJECT BACKGROUND AND JUSTIFICATION
In today’s busy world, most parents have a busy schedule to raise their
children’s during theday’s  me by themselves and most of them didn't
feel comfortable with the idea of hiring ananny. And also with in a on
con  nuing to increase every year, it has become necessary for more
families to rely on two incomes to survive. In turn, this increases the demand for
child carefacilies. We do not foresee this trend turning in the near future, and
intend to capture a shareof this market.Child care or day care is the care of a
child during the day by a person other than the child's legalguardians, typically
performed by someone outside the child's immediate family. Day
care istypically an ongoing service during specic periods, such as the parents'
me at work.Child care centers provide care for group of children, oen placed
in class rooms by age. Theytypically have many sta  members who care for
children. A child care center is managed by acenter director or manager who
oversees the program and its stas.Day care centers dier from Kindergarten in
the following points:1 . D a y c a r e c e n t e r s p r o v i d e m o s t l y
t h e d e v e l o p m e n t a l p r o g r a m s w h i l e t h e k i n d e r g a r t e n schools provide
the instrucve programs2.The day care centers provided more extended
opera  ng hours while the kindergarten classes are usually based in
elementary schools and operang during normal operanghours.3 . D a y c a r e
centers employees should have child care experience while the
kindergartenemployees should have child managing and good teac
h i n g a n d s p e c i  c c u r r i c u l u m knowledge.4.Day care centers focus on
giving cares to children while the kindergarten schools focuseso the formal
learning acviesAccordingly, Child Care is a business that has become
necessary in today's fast-paced world.There are an increasing amount
of families who have become dependent on two incomes, whichhas created the
necessity of the child care industry.
2
ADDownload to read ad-free.

The Lovely day care project will give a day care service for residence and workers
around thearea of Hyahulet and Megenagna. The service will be rendered
with a rented villa around thisarea. The facility will originally require a 300 m
2
house in a quiet, residenal neighborhood. Theyard will be fully fenced in, to
ensure no one can either come in or walk away. The compoundwill be furnished
with safe, entertaining toys, as well as a sandbox.The house will be used for
rainy-day ac  vi  es and the serving and prepara on of meals. The house
will also contain toys, games, and books for the entertainment of the children.The
project could aract customers through adversing the day care service mainly
by printedinforma  on like distribu  ng brochures, posters and also
planned to communicate poten  al customers in person and explain about
the service.The project is to be established in a sole proprietorship form of business
as this type of businessrequires low startup cost and the business does not require
any addional investment from anypartner or other shareholders in a limited
company and also in order to avoid double taxaon.

INITIAL INVESTMENT
The inial capital to start up the project is depicted in Table 1.
T h e p r o j e c t i s n o t c a p i t a l intensive, it only demands the purchase of
Furniture’s and Equipments required for the projectand some working capital to
start up the project. To start with the project the Investors areexpected to
oulow an inial investment cost of 1,200,000.00 as indicated in tab
PROJECT BACKGROUND AND JUSTIFICATION

In today’s busy world, most parents have a busy schedule to raise their
children’s during theday’s  me by themselves and most of them didn't
feel comfortable with the idea of hiring ananny. And also with in a on
con  nuing to increase every year, it has become necessary for more
families to rely on two incomes to survive. In turn, this increases the demand for
child carefacilies. We do not foresee this trend turning in the near future, and
intend to capture a shareof this market.Child care or day care is the care of a
child during the day by a person other than the child's legalguardians, typically
performed by someone outside the child's immediate family. Day
care istypically an ongoing service during specic periods, such as the parents'
me at work.Child care centers provide care for group of children, oen placed
in class rooms by age. Theytypically have many sta  members who care for
children. A child care center is managed by acenter director or manager who
oversees the program and its stas.Day care centers dier from Kindergarten in
the following points:1 . D a y c a r e c e n t e r s p r o v i d e m o s t l y
t h e d e v e l o p m e n t a l p r o g r a m s w h i l e t h e k i n d e r g a r t e n schools provide
the instrucve programs2.The day care centers provided more extended
opera  ng hours while the kindergarten classes are usually based in
elementary schools and operang during normal operanghours.3 . D a y c a r e
centers employees should have child care experience while the
kindergartenemployees should have child managing and good teac
h i n g a n d s p e c i  c c u r r i c u l u m knowledge.4.Day care centers focus on
giving cares to children while the kindergarten schools focuseso the formal
learning acviesAccordingly, Child Care is a business that has become
necessary in today's fast-paced world.There are an increasing amount
of families who have become dependent on two incomes, whichhas created the
necessity of the child care industry.
2
ADDownload to read ad-free.

The Lovely day care project will give a day care service for residence and workers
around thearea of Hyahulet and Megenagna. The service will be rendered
with a rented villa around thisarea. The facility will originally require a 300 m
2
house in a quiet, residenal neighborhood. Theyard will be fully fenced in, to
ensure no one can either come in or walk away. The compoundwill be furnished
with safe, entertaining toys, as well as a sandbox.The house will be used for
rainy-day ac  vi  es and the serving and prepara on of meals. The house
will also contain toys, games, and books for the entertainment of the children.The
project could aract customers through adversing the day care service mainly
by printedinforma  on like distribu  ng brochures, posters and also
planned to communicate poten  al customers in person and explain about
the service.The project is to be established in a sole proprietorship form of business
as this type of businessrequires low startup cost and the business does not require
any addional investment from anypartner or other shareholders in a limited
company and also in order to avoid double taxaon.

INITIAL INVESTMENT
The inial capital to start up the project is depicted in Table 1.
T h e p r o j e c t i s n o t c a p i t a l intensive, it only demands the purchase of
Furniture’s and Equipments required for the projectand some working capital to
start up the project. To start with the project the Investors areexpected to
oulow an inial investment cost of 1,200,000.00 as indicated in table 1

Furniture and Equipment