Identify what is the purpose of the business plan. Is it for Bank Loan or grant? or investment or is prepared for some other audience? Detail about what the Creche will offer, its founder or management team, financial performance, Market opportunity. All is summarized in the executive summary then the detailed business plan to follow. FOR EXAMPLE, YOU CAN STATE AS FOLLOWS.
This business plan has been created to get a loan of €45,000 from a financial institution that will be utilized to establish a child care center in a premium location in the city of Dublin. This plan covers details about the Child care center, its founder, what it offers for childcare, market focus and analysis, sales and marketing strategy, and detailed financial plan.
A creche will operate as a startup business in Dublin that will provide Montessori and a daycare facility. Creche. The creche will operate from a rented location. It’s Montessori who will serve children of age 1 to school going. A creche will offer different packages such as full-time care of €1,295 per month five-days a week, part-time for €649 per month 5 days a week, and after schoolers for €800 per month 5 days a week. Funding will be utilized to support the initial setup of Montessori and for the daily expenses.
Demand for childcare in Ireland is well advertised and recognized. The creche has identified the opportunity as the other Montessori and crèche in the area are already over-packed and they are not taking any more kids. There is a waiting list of up to two years means a massive demand for a new entrant to step in and capture the market share.
COVID 19 has badly impacted the whole world and almost every business is hit hard by the pandemic. Child care centers and crèches were also closed during the lockdown and have reopened recently. A creche will consider the situation created by the virus and will make sure the safety of the children and the staff.
The modern-day couple who both works and need a facility which can ease their life by taking care of their kinds. A creche will take full advantage of already created opportunities and will capture the maximum share of the market within no time as the demand is already high and there is no one to serve the unfulfilled demand. Experienced management and dedicated staff will help CRECHE grow in the target market.
Creche doesn’t require any extensive marketing due to the idle demand already present in the market, however, CRECHE plan to regularly advertise its services on all social media platforms, engage the audience, and parents. Additionally, it will use traditional but effective marketing tools such as the distribution of brochures in Dublin areas and advertise in educational sections of local newspapers and magazines. Sales and marketing strategy will be based on direct selling as the local community will be made aware of the opening of CRECHE by conducting an opening ceremony.
A creche will succeed by offering its clients children a safe and secure care environment and close personal attention. The goals of the center are dual-sided: to help parents feel good about the care of their children, and to make it a safe, educational, and fun experience for the child.
A creche will be led by a team of professional child care providers. Ms. Margaret O’Brien will be the founder of this facility. She completed BA (Hons.) in Early Learning Childcare & Montessori from St. Nicholas Montessori Teacher College in Dun Laoghaire. During her degree, she worked full time in the Crèche & Montessori School industry. Ms. Margaret is backed up by her Mum who is also trained in childcare and ran her crèches some years ago in North & South Dublin. Margaret plans to hire more staff as per the needs of the business in the future following Tusla guidelines.
Careful and conservative projections anticipate growth in profit yearly.
The figures for a profit before tax are computed after directors’ remunerations.
1.1 VISION & OBJECTIVES:
It is the vision of Dublin Creche’s management to enhance the personal, social emotional and creative development of the child.
Our Objective is to
- Provide a viable nursery in Dublin which will be located at the space acquired for long term.
- Meet the current and future demand and able to take advantage of any future developments within the town.
1.2 MISSION STATEMENT
Dublin Creche aims to offer safe and secure child care at all times. Close personal attention to each child is essential to providing a quality experience for all children; therefore, adequate personnel will be hired to ensure each child has the proper supervision will in our care.
Our mission is to establish the highest standard educator facility for early year’s children with a go-to destination reputation for happy and rounded well-educated children fully ready and confident in embracing national school.
1.3 KEYS TO SUCCESS
Keys to success for the company will include,
- Maintaining a reputable and untarnished reputation in the community.
- Quality care.
- Flexible hours.
- Properly trained, certified, and licensed staff to give care to multiple children.
- Equipment from food preparation to education/ play-related is appropriate for children age.
- Regular nap schedule for children at some point during their stay. A well-rested child is often much easier to handle
- A well-planned schedule for nutritious snacks that children will want to eat.
- Safety as to come first. Keeping age groups separate to ensure that younger children are not getting hold of small items.
- Competitive pricing
1.4 REASONS FOR SUCCESS
- Huge Demand
- Ideal location
- No competition
- Strong Income
- High caliber in staff
CRECHE is a startup Montessori specialized in recognized Montessori Method of Teaching with a full daycare crèche facility along with a capacity of more than 50 children. CRECHE will be located in Dublin Dublin. CRECHE will operate as per Tusla guidelines.
Children of age one to school going will be included in the Montessori.
CRECHE will offer different packages such as,
- Full-time care for €XXX per month 5 days a week
- Part-time for €XXX per month 5 days a week
- After schoolers for €XXX per month 5 days a week
2.1 PROMOTERS & SHAREHOLDERS
Company’s founder Margaret O’Brien will handle day-to-day operations of the business and will work collaboratively to ensure that this business venture is a success.
The business will appoint top accountants and lawyers.
2.3 LEGAL STATUS
CRECHE will be formed as Limited by shares in Ireland. Creche will be registered with the company’s registration office and will be located in Dublin.
CRECHE will provide child daycare services for the kids of age one and up to school going
CRECHE will provide child daycare services for the kids of age one and up to school going. Children will be looked after 5 days a week with full-time, part-time, and school-going categories. The main focus will be on the development of the child whether it’s social, psychological, or mental. The children will be supervised by a teacher all day long, who will be responsible for their physical, intellectual, emotional, and social development.
Dublin will provide premier child care services that are aimed at enhancing traditional daycare methodologies and integrating extracurricular interests (such as arts and crafts, dance, theatre, and gymnastics) into one comprehensive program. CRECHE will offer state-of-the-art technology programs in leading-edge facilities which will help prepare students for the technology age in which they live. CRECHE will also offer children birthday party hosting services, providing great activities for kids and an easy experience for parents. Activity instructors will be assigned for these events and will lead the activities, ensuring a memorable celebration.
This section of the analysis will detail the economic climate, Dublin’s Creche service, Creche industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Presently the economic market condition in Dublin, Co Dublin is moderate.
The need for childcare has increased across the country in response to changing social and economic conditions. The child care service industry, like many other businesses, can also be broken down into the for-profit and nonprofit sectors. For-profit child care services provide care for a set fee, usually based upon the number of children, number of hours, and additional educational services. Non-profit child care services may rely on federal funds or other grants allotted for serving at-risk children with health services, social services, and educational opportunities and may have fees based on a sliding scale based upon the family’s income. There are generally two main types of care offered: center-based care and family childcare. Centers may offer part- and full-day preschool and pre-kindergarten programs in addition to daycare programs. Family child care services provide care for children in their homes at a cost and are the biggest group of self-employed persons in the industry. The child care service industry provides daycare for infants and children. While most child care facilities offer care for age groups ranging from infant to preschool, some offer afterschool or summer programs for older children. Additionally, these child care settings may offer various optional educational programs, such as phonics or other preschool and after school programs.
Development in the initial stages of a child’s life has been recognized as a crucial factor for the child’s overall growth. Access to high-quality early childhood programs has helped children in earning high test scores throughout their careers. These learning centres expose children to various cognitive and language skills, which help in their overall personality development. As a result, an increasing number of parents are willing to spend on high-quality children day-care services.
Dublin Creche is a business that has become necessary in today’s fast-paced world. There is an increasing amount of families who have become dependent on two incomes, which has created the necessity of the child care industry. Indeed, it has. There are over 2 facilities in the area that provide similar services to Dublin creche, each of these has a small capacity, and a lucrative business.
4.1 CHILD CARE MARKET DRIVERS
- Increase in Two Working Parent Families
- Improved incomes
- Illegality and stress burden of leaving children at home alone
4.2 PEST ANALYSIS
Government regulations directly impact Montessori and crèche. Certain changes in the curriculum from the government can impact at large to any daycare center. CRECHE will fulfill government regulations in terms of skilled employee hiring and other child safety procedures. The political government in Ireland is stable and supports business activities which is a good factor for the growth of business in the country.
Government policies regarding day care sector are good and any economic activity which is competitive is encouraged. Business offers day care services that will fill the market needs of market and will provide a better choice for the parents.
Childcare fees in Ireland are amongst the highest in Europe due to lack of funding from Government.
National minimum wage increase affecting salaries and wages
Legislation regarding childcare.
Government guidelines regarding children
COVID-19 has affected almost every business and sales for most of the businesses have declined, Montessori business also got affected and there was a decline in business revenue each month. Fees for day-care centres in Ireland are high and restrict the people from sending their kids to a day-care centre.
Income level in Ireland is high and mostly both the parents are working and require a facility to take care of their kids.
Rise in staff wages due to Minimum Wage increases
Families with two working parents are getting more common, creating a substantial potential market for childcare providers.
Financially, running a crèche can be tough, as profit margins are low and overheads high. However, it can be a very rewarding business.
Staff shortages and a lack of State funding may result crèches to reduce their intake of babies and toddlers under two years of age.
Many social factors can affect looking after children, such as child abuse may put off some people from putting their children in daycare hubs because they may lose faith. Some workers who haven’t got the legal qualifications must not be recruited if discovered it could become a major media topic and possibly dent the market heavily. Parents who don’t have time will be more eager to send their children to a daycare hub so that they don’t miss out on their learning. More single parents required someplace to look after their kids.
There is an increased advertising on mainstream media of the performance of Creches.
CRECHE will be equipped with all the advanced technologies used to run a Montessori and crèche. Children’s CCTV monitoring facility will be provided to their parents for comfort and satisfaction.
The use of computers and other digital technologies continues to rise in early childhood programs, and technology is being used as a tool for improving program quality in many interesting ways.
There is wide range of regulations and laws that day care centre needs to comply with because of its close working relationship with children. Type of regulation effecting creche:
- The amount of space required per child
- The ratio of children to staff
- Minimum provision of toilets and washing facilities
- Premises safety
- Adequate parking
- Promotion of children’s’ emotional, social and physical welfare
4.3 SWOT ANALYSIS
Although Creche thinks to have significant advantages over competitors and many opportunities to exploit to develop and to write a business success case, there are also some potential risks and threats that should be considered in managing the business.
Main elements of SWOT analysis allow appreciating the degree of these different points:
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.
Government funding under Pobal and ECCE is also the strength for the business.
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 we provide by offering quality child care.
a) Professional staff
b) New setup
c) A sophisticated and effective learning system.
Start-up costs can be exorbitant, as they include a building with a kitchen, insurance, supplies and a marketing budget.
Maintenance of the center can be expensive with painting, repairs, replacement furniture and other supplies.
Childcare facilities are under significant strain due to lack of investment.
a) Brand recognition
b) High set up cost
c) Shortage of skilled human resources
The potential opportunities associated with a creche 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.
a) High demand
b) Extended opening hours
c) Increased revenue as more and more people are working, thereby unable to care for their children during the day.
a) Existing and new competitors
b) Impact of a pandemic like Covid-19(resulted in a monthly drop in sales of 12million euros for the daycare sector)
c) Government restrictions
4.4 COMPETITOR ANALYSIS
There are no immediate competitors but the other competitors which are operating in the target are Links Abington and Harvard Holywell who all have extensive waiting lists. Similarly, The Kiddie’s Care in Dublin and The Village Crèche in Dublin have a 2-year waiting list for places. CRECHE will have its competitive advantages in terms of experience management and high caliber staff. School & Crèche has significant competitive advantages against potential competitors. Services offered by CRECHE will be of high quality and standards: this will help to create brand awareness and leadership among the potential customers.
The significant competitive advantages of CRECHE’s services will be:
- Experience staff
- Thorough pre-hire background screenings are performed on all individuals before hired for employment
- Customer-centric philosophy
4.5 TARGET MARKET
CRECHE’s target market will consist of below,
- Both parents are employed
- Single parent
- Parents who are not working but recognise the substantial benefits in their children participating in early years education
The market is segmented based on below,
BY TYPE OF FACILITY
- Baby And Child Care
- Pre-Kindergarten And Preschool Centers
- Nursery Schools
BY LOCATION OF FACILITY
BY TYPE OF EXPENDITURE
- Public Expenditure
- Private Expenditure
We recognize that full-time working couples will have a greater need for creche services for their children. Referral marketing is a key type of marketing strategy utilized. Maintaining and further enhancing its reputation in the community is crucial to gaining additional market share of this target market.
With inflation continuing 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 care facilities. We do not foresee this trend turning in the near future, and intend to capture a share of this market.
The creche business is lucrative, as mentioned before. As a result, there are creche & Montessori facilities that provide quality care for children in the same area as Creche. The child care industry is split between large, commercially-run centers and smaller, locally-owned centers. A creche will compete with small care centres; this is where the main competition lies. The company is confident that this will be a successful venture because of the quality of its founders & managers and the capability of its Care Staff, which is mentioned in more detail in the Personnel section.
4.6 TOTAL MARKET VALUATION
The global market for child care reached a value of $XXX billion in 2020, having grown at a compound annual growth rate of 8.3% since 2014, and is expected to grow at a CAGR of XX% to nearly EurXXX billion by 2022. In Ireland, the budget for total childcare services in 2020 is €XXX million while expenditures in 2019 were €XXX million.
It is estimated that there are XXX thousand children aged under 5 in Ireland. It is assumed that the majority of these children are not in the formal school system yet and therefore require full-time care either from parents or from childcare providers. There are an estimated XXX thousand children aged between 5 and 12 currently, who likely receive some level of formal education but may require formal childcare outside of school hours.
The Childcare sector is a vital cornerstone of community in Ireland, allowing both parents the opportunity to work. With increased standards of living, a double income is now a necessity rather than a choice for many young families. Childcare is a costly but necessary service for Irish families as many simply can’t afford to live off one salary.
There are over XXX facilities providing centre based childcare across Ireland.
The increased birth rate om Ireland creates a great opportunity for child hood care & education providers. Many parents are booking places in creches before their children are even born.
Given the relatively underdeveloped nature of childcare provision in Ireland at the turn of the century and, in particular, a wide reliance on family day care and on the provision of care by family or neighbours, be they paid or unpaid, it is quite difficult to assess the level of demand for childcare.
4.7 MARKET GROWTH
Growth in the child care business resulted from economic growth in emerging markets, the rise in awareness of the benefits of early learning, government funding in developed nations towards child care costs, and an increase in the number of families with both parents working. Factors that negatively affected growth are increased unemployment rates and falling fertility rates.
Government initiatives to support child care and rising corporate profits enable companies to spend more on social benefits to employees, and awareness of the benefits of early-life education due to rising internet penetration will drive growth.
Children’s day-care services are recognized as a significant expense for working families. The continuous rise in household disposable income, coupled with an upsurge in female labour force participation, has led to a progressive increase in children day-care services.
4.8 MARKET TRENDS
- Corporate Child Care Centers (Corporates are offering corporate child care services to help employees to achieve work-life balance. Corporate child care is a specific form of child care sponsored or managed by an employer. Companies are either offering in-house child care centers or partnering with the local child care centers to offer the services at discounted rates for attracting and retaining top employees.)
- Flexible Service Hours (Child care services providers are offering their services at flexible hours to help parents minimize costs on child care and keep the children in respective child care centers. Child care centers are providing an option of flexible hours based on the financial status of the families, allowing parents to decrease their expenditure on child daycare.)
- Child Care is Now Early Education
- Drop-In Child Care is More Common
- Corporate Child Care is Raising Quality Bar
- Technology is Changing Provider/Parent Connection
- Most Child Care is Becoming Safer
- More Child Care Options Exist
- Communications Are More Frequent, More Useful
- Child Care Caters to Time-Crunched, Working Parents
- After-School Programs and Care Provide Child Care Flexibility
Creche has a very strong reputation in Dublin area. Word-of-mouth recommendation is the most significant marketing tool for Creche.
5.1 MARKET STRATEGY
Creche understands the importance of marketing and pursues an integrated marketing effort that will encompass both traditional media such as local noticeboard & newspaper and contemporary media such as website and social media. Using an integrated marketing communication business will align its image in the mind of the target consumer without creating any confusion. All the tools of marketing will be utilized in an appropriate proportion sending out a similar and well-defined message regarding the services.
The creche has a very strong reputation in the Dublin area. Word-of-mouth recommendation is the most significant marketing tool for Creche. The catchment area for a new nursery in Dublin would be predominantly families living and working in the area. Local publicity would ensure that the nursery has a high profile, and if the location is acquired, there would also be a high footfall locally which would reinforce the promotional activities. The marketing strategy would consist of the following: •
A mini-website could also be created to encourage word-of-mouth promotion and discussion about the nursery’s progress.
Social Media: Creche would create a Facebook page for the new nursery before it opens to provide updates on its progress and promote it to potential families. This would link to the social media currently used by Creche on Facebook, Twitter and other sites. This could also use its Facebook page to inform their families about the creche.
Local advertising with posters and a leaflet drop prior to the nursery opening, and, subject to obtaining permission, a sign on the roadside to advertise the creche’s location.
Printed prospectuses would be produced and Creche’ central marketing would include the website. Crechecreche.ie would also be used to promote the creche once it is open.
CRECHE will use other marketing channels to advertise its product,
- Regular newspaper advertisements
- Brochures will be distributed in the surroundings of Dublin
- Online marketing campaigns
- Listing CRECHE on yellow pages
SOCIAL MEDIA ADS ON FACEBOOK AND INSTAGRAM
Social media will be our hub for connecting with parents to develop personalized relationships and to keep them involved with constant sale promotions plus introducing them to our new services and programs.
Social media has been contributing a lot to the child care industry. It has been the enabler and has motivated many trends to hold a place in the market. Social media has been driving our lives according to the needs of the market as what we see affects a lot of our needs. It has given its best in promoting Montessori businesses.
CRECHE’s website will hold a very significant position in integrated marketing communication. The website will depict the class of business’s services and increase its customer base.
WORD OF MOUTH
To create trust among the customers and to communicate with them the quality of our product and services it is imperative to generate a word of mouth through a comprehensive online presence. Word of mouth will be utilized and people will be convinced via the testimonials our business will receive from the satisfied parents.
The marketing campaign will be advertised by dropping leaflets in the local area. The advertising will be regularly.
CRECHE will position itself as an advanced daycare service that offers unique learning and developmental programs for kids. The business will differentiate itself from competitors by providing outstanding customer service, competitive prices, and various services.
5.2 INCOME SOURCES
The main source of income for CRECHE will be from the fee received from the kids.
Creche will adopt certain strategies to attract customers. It will engage with local Clubs, Societies and communities.
CRECHE will target its customers by following ways:
- Advertising business in food magazines, newspapers, TV stations, and social media
- Brochure and pamphlets will be distributed in the local area
- An opening ceremony will be organized to make people aware of the presence of CRECHE
CRECHE will adopt the competitive pricing model and will offer services in a similar range as its competitors. Competitive pricing strategy helps to identify the best prices that are logically within the market context in which the business operates and to improve the profit margins. There will be three different prices,
No of days per week
Price per month (€)
Ms. Margaret O’Brien is the owner and the manager of the CRECHE. Margaret will be backed up by her Mum who is also trained in childcare and ran her crèches some years ago in North & South Dublin. Margaret plans to hire more staff for the operations of CRECHE.
6.1 ROLE OF FOUNDERS
- Responsible for providing direction of CRECHE
- Creates, communicates, and implements her vision, mission, and overall direction.
- Responsible for the day to day running of the CRECHE.
- Responsible for fixing fees and activities in consultation with staff and feedback by parents
- Responsible for signing checks and documents on behalf of CRECHE
- Evaluates the success of the CRECHE.