Family child care business plan

Just Like Home Child Care

BUSINESS PLANBUSINESS PLAN PREPARED BY

Lois Banks

Owner

456 Pick Up Sticks Lane

Anderville, StateA

555-555-5555

DATE PREPARED

December 200B

™

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JUST LIKE HOME CHILD CARE BUSINESS PLANTABLE OF CONTENTS

EXECUTIVE SUMMARY 5Venture History 5Venture Description 5Venture Organization 5Venture Market 5Venture Operations 5Venture Financing 6

MANAGEMENT AND ORGANIZATION 7Management Team 7Compensation and Ownership 7Board of Directors/Advisory Council 7Infrastructure 8Contracts and Franchise Agreements 8Insurance 8Employee Stock Option Plan and Other Incentives 8Organization Charts 8

PRODUCT / SERVICE 9Purpose of the Product / Service 9Unique Features 9Stage of Development 10Future Research and Development 10Trademarks, Patents, Copyrights, Licenses, Royalties 10Government Approvals 10Product / Service Limitations 10Product / Service Liability 11Related Products / Services and Spin-Offs 11Production 11Facilities 12Suppliers 12Environmental Factors 12

MARKETING PLAN 13Industry Profile 13

Current Size 13Growth Potential 13Geographic Locations 13Industry Trends 14Seasonality Factors 14Profit Characteristics 14Distribution Channels 14Basis of Competition 15

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Competition Profile 15Competitive Analysis Grid 16Customer Profile 17Target Market Profile 17Pricing Profile 18Gross Margin on Product / Services 18Break-Even Analysis 18Market Penetration 18

Distribution Channels 18Sales Representatives / Direct Sales Force 18Direct Mail / Telemarketing 18

Advertising and Promotion 19Packaging and Labeling 19Service and Warranties 19Trade Shows 19Future Markets 19

OPERATING AND CONTROL SYSTEMS 20Administrative Policies, Procedures, and Controls 20

Receiving Orders 20Billing the Customers 20Paying the Suppliers 20Collecting the Accounts Receivable 20Reporting to Management 20Staff Development 20Inventory Control 20Handling Warranties and Returns 20Monitoring the Company Budgets 20Security Systems 21

Documents and Paper Flow 21Planning Chart 21

Product / Service Development 21Manufacturing 21Financial Requirements 22Marketing Flow Chart 22Market Penetration 22Management and Infrastructure 22

Risk Analysis 22Salvaging Assets 22


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GROWTH PLAN 23New Offerings to Market 23Capital Requirements 23Personnel Requirements 23Exit Strategy 24

FINANCIAL PLAN 25Sales Projections 25Income Projections 25Cash Requirements 25Sources of Financing 25Projected Cash Flow StatementsProjected Year-End Income StatementProjected Year-End Balance SheetRatio Analysis

SUPPORTING DOCUMENTS AppendixHistorical Balance SheetSales Projections Operating Expenses Projections Capital Budget Projection


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Venture HistoryJust Like Home Child Care is completing its second full year of operation. Thecenter has been at full capacity (six children) based on current staffing sincemonth four of business. We are now poised for growth as we look to betterserve our existing clientele and fully utilize our child care facility.

Venture DescriptionJust Like Home Child Care is a licensed family child care center. Children frominfancy through preschool are the current population served. Just Like Homeprovides a safe, fun and stimulating learning environment for children ofworking parents.

Venture OrganizationAt present, Just Like Home is a sole proprietorship owned and operated byLois Banks. It is licensed by Window County and StateA as a family child carecenter. Within the next four months, all requirements will have been met toupgrade the license to a group child care license. Once this license is obtained,Just Like Home can begin implementing its expansion plans. At this point thecenter may incorporate.

Venture MarketWe serve children from two weeks to five years old. The families we market toare either single-parent or two-income families. The parents of our childrentend to be well-educated professionals making over $40,000 per householdper year.

A market also exists for children between ages five to thirteen in the after-school and summer care niche. We intend to start serving this market in yearthree of operation.

Venture OperationsJust Like Home is open Monday through Friday from 7:30 a.m. to 6:30 p.m.The care provider is the owner Lois Banks.

JUST LIKE HOME CHILD CARE BUSINESS PLANEXECUTIVE SUMMARY

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Venture FinancingInitial financing was provided by Lois and Jack Banks in the amount of$10,000. This investment was used to buy furniture, equipment, toys and tomake some minor alterations to the facility. Growth funding is projected tocome out of earnings.

JUST LIKE HOME CHILD CARE BUSINESS PLANEXECUTIVE SUMMARY

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Management TeamLois Banks is the owner and primary provider of Just Like Home Child Care—a family childcare center. Just Like Home represents a second career for Lois after taking early retirementfrom the insurance industry. Lois holds an associates degree in general studies fromBerkshire County College. Throughout her career and while raising her own children, Ms.Banks spent countless volunteer hours teaching toddler Sunday school and acting as asponsor for the church youth group. Prior to opening Just Like Home, Lois attended StateAchild care training and continues to attend seminars and conferences related to child care.Lois keeps her first-aid training current and is certified in CPR (cardio-pulmonaryresuscitation).

Three well-qualified people serve as back-up personnel if the owner is ill or needs to beaway for personal reasons. Joan Hurst, Peggy Hill and the owner’s husband, Jack Banks, areall CPR certified and meet state regulations for child care workers.

Compensation and OwnershipMs. Banks is the sole proprietor of Just Like Home Child Care. She takes an owner’s draw of$2,800 per month.

The back-up personnel are compensated at $10 per hour. (Jack Banks is not compensated.)The average hourly earnings for workers in the child care industry is approximately $8 perhour.

Board of Directors / Advisory CouncilWhile Just Like Home has no formal arrangement with an advisory council, several peopleare available for advice and brainstorming. The local Small Business Development Center isavailable for general business counsel. Lois has developed relationships with two otherchild care providers who attend statewide conferences each year. The threesome spends anevening together during each conference to exchange information and ideas. The stateDivision of Child Care Licensing also provides guidance and education.

JUST LIKE HOME CHILD CARE BUSINESS PLANMANAGEMENT AND ORGANIZATION

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InfrastructureThe following professionals complete the Just Like Home team:Attorney Jake Bernstein

Bernstein & Associates555-555-5555

Accountant Sally Fielding CPA, Inc.555-555-5555

Insurance Henrietta WalkerSafe Hands Insurance555-555-5555

Banker Claude BainsState Bank555-555-5555

Contracts and Franchise Agreements A copy of the service agreement each parent signs is included in the Appendix.

InsuranceJust Like Home carries disability insurance on the owner. The center also carries generalliability plus supplemental coverage.

Employee Stock Option Plan and Other IncentivesJust Like Home’s current employees work occasionally on an hourly basis. With growth, thecenter will work to establish job-sharing and flexible hours in order to attract the desiredcaliber of employee.

Organization ChartsLois Banks, the owner, is the sole full-time worker and manages the business. Growth mayinclude 2-4 employees who will all report directly to Lois.

JUST LIKE HOME CHILD CARE BUSINESS PLANMANAGEMENT AND ORGANIZATION

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Purpose of the Product / ServiceJust Like Home Child Care provides a safe, fun and stimulating learning environment forchildren from infancy to school age. Family child care centers provide an alternative tocommercial child care centers for families who want their children in a home atmosphere.

The standards of service are based on education and research into the child care industry.Lois raised two children of her own and has strong feelings about the level of care andattention children need and deserve.

Just Like Home has several goals for two distinct populations:

Infants: The goal for infant care is safety, comfort and caring. Babiesneed to be held and talked to regularly in order to develop properly andfeel secure.

Toddlers and Preschoolers: The goal for these children is safety, fun andlearning (as well as caring.) Safety is a priority. All state regulations arefollowed, and the environment is constantly monitored for potentialhazards. Fun is inspired through one-on-one interaction with children,games, music and stories. Learning is encouraged through individualself-discovery to promote motor skill development, inter-personal skills,creativity and self-reliance.

Unique FeaturesAll family child care providers bring their unique personality and approach to working withchildren and Lois Banks is no exception. Ms. Banks is in this business because of her love ofchildren and the rewards associated with caring for them and helping them learn. Raisingher own children was a joy. Participating in the lives of the center’s children is a bonus.

The facility itself is unique and has proven a strong selling point with the center’s existingclientele. The Banks’ home has a finished walkout basement of almost 700 square feet. Thisentire area is devoted to the child care operation. Three separate rooms (plus a bathroom)allow for quiet nap areas and calm time. One of the smaller rooms is used for two infantcribs and can also accommodate a playpen for a tired toddler who is off the center’sschedule. The other small room is used for watching a special video, reading or other quietactivities. The large open area of around 400 square feet houses learning/play stations anda kitchenette and snack area.

The basement center opens up to a fenced yard/play area. Safe, age-appropriate playequipment is in place. The children can enjoy good weather without having to walk to apark near busy streets.

The day is structured to provide stimulus and fun while exercising small bodies anddeveloping inquisitive minds. Music, rest time, snacks, free playtime, reading and interactivegames are woven into each day.

JUST LIKE HOME CHILD CARE BUSINESS PLANPRODUCT / SERVICE

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Additionally, the children own pets at the center—fish and two guinea pigs. Children taketurns feeding their pets and continually make up stories and draw pictures surrounding theirimagined exploits. The pets help the children connect to the child care experience and lookforward to returning each day—especially when they are new to the center.

Stage of DevelopmentJust like Home is finishing its second year of operations. The business successfullycompleted the start-up phase and is now looking at changes for the future and plannedgrowth.

Future Research and DevelopmentLois Banks continually reads child development literature to stay on top of current thoughtand trends. As new methods of teaching or new toys/games are developed for this agegroup, the center adopts them when it makes economic sense.

Trademarks, Patents, Copyrights, Licenses, RoyaltiesThe Just Like Home logo is federally trademarked and the name has been registered withState A. There are no other proprietary assets at the current time.

Government ApprovalsJust Like Home is a licensed facility of Window County, StateA. Family child care centersare highly regulated. Just Like Home is in compliance with all facilities regulations andstaffing requirements of the county and StateA. Safety inspections are done on a regularbasis. Smoke detectors are on each floor of the house. Emergency plans are posted fortornado, fire, accident and illness. Fire drills are conducted every three months and atornado drill every spring. Every staff member is CPR certified. There are never more thansix children in the center. No more than two of the children are under the age of 18 months,and at least two of the children are over the age of 30 months.

Just Like Home is in the process of upgrading to a group child care license. This license willpermit it to grow and serve more children.

Product / Service LimitationsFamily child care is limited in the number of children it can accommodate. Just Like Home isspecifically designed to meet the needs of infants to preschoolers only. The currentfacilities, toys, equipment, etc. do not yet meet the needs of older children.


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Product / Service LiabilityCaring for children involves risk. Due to their active lives, children have accidents, andinjuries. Child care providers also risk being accused of inappropriately handling a childwhile in child care. Although these risks are great, many precautions can be taken to reducethem.

1) Appropriate counsel is sought from the center’s attorney, and thatcounsel is heeded.

2) Insurance is used to cover general liability plus supplementary coveragefor additional liability.

3) Safety standards are strictly reviewed and enforced.

4) Parents and provider communicate continually to agree on measures totake concerning care of a child.

Just Like Home has several advantages over other family centers in the risk department.Lois’ husband is often home during the day working out of his home office. In the event ofan emergency or disruption to the normal routine, he provides backup and a welcomesecond pair of hands. The on-call, back-up staff both live close by and are often availableon short notice. The risk of false accusations related to inappropriate handling of childrendecreases with more than one adult on the premises.

Related Products/Services and Spin-OffsAfter-school care is in increasing demand. As the children currently enrolled grow and go toschool we will be caring for some of their younger siblings. Parents like to have theirchildren cared for under one roof. Adding after-school care is projected for September 200C.In the following year, Just Like Home will offer summer care for the same population ofchildren.

Special music and dance classes are available in the area for ages two to five. As the centergrows it may bring in these classes on a regular schedule.

Several children’s museums and specialty parks (petting zoos etc.) offer interesting outingopportunities. If we can increase our preschool population and keep our infant populationlow, we could take advantage of more of these outings.

ProductionThe owner provides care.


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FacilitiesThe basic facility is described in the “Unique Features” section of the plan. Several otherdetails are worth mentioning.

Since the entire 700-square-foot basement area is for child care, all furniture used by thechildren is sized for them. Chairs and tables are small. Well-anchored footstools givetoddlers access to the bathroom and kitchenette sinks. The entire area is childproof,containing nothing that poses a threat to inquisitive fingers or toes.

Learning/play stations are good quality and well constructed. The “Good Eats Grill” playkitchen allows for endless make-believe menus and methods of cooking including a toddler-sized charcoal grill. Our “Tool Time” area includes a large, low surface for building withblocks and working with age-appropriate toy tools. The “Artist’s Corner” has a plastic floorcovering so spilled paint is not an issue. Non-toxic finger paints, clay and crayons provideplenty of inspiration for supervised artistic expression by the preschoolers.

Outdoor playground equipment is safe, sturdy and regularly inspected. Just Like Home isvery careful to buy well-tested, age-appropriate equipment. The preschoolers have theopportunity to climb and slide close enough to the ground to be safe on well-anchored playequipment with no sharp edges. The equipment is confined to an area of the yard that hassand several inches deep for shock absorption. Balls and various push/pull toys make upthe balance of the outdoor experience.

SuppliersSuppliers are the same as most families are using for their child care needs. The localgrocery and toy store provide for most of the needs. Lois also frequents the educationalmaterials store to find appropriate fine-motor-skill activities and art supplies. Readingmaterials are updated constantly.

Environmental FactorsObviously, our main environmental concerns are safety and cleanliness. Just Like Home hascomplied with regulations and passed state inspections for fire and health. We have met thestandards for group child care licensing for future expansion.


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Industry ProfileCurrent SizeAnnual sales in the child care industry are estimated at $28,855 million (zapdata.com).Three years ago about 605,000 workers held wage and salary jobs in child careestablishments. An additional 536,000 self-employed persons worked in the industry; mostof the self-employed were family child care providers, and some were self-employedmanagers of child care centers (The Urban Institute).

Nationwide over three-fourths of preschool children with employed mothers are regularlycared for by someone other than their parents. Nationally 48 percent of working familieswith children under 13 pay for child care arrangements (nonrelative care). StateA closelymirrors national statistics at 47 percent (The Urban Institute).

In StateA, fully two-thirds of mothers with children under five are employed. Four out offive children under five with employed mothers are in a form of nonparental child care suchas center-based care, family child care centers, or relative care. Two-fifths of children underfive with employed mothers are in full-time (35 hours or more per week) nonparental care.Approximately one-seventh of StateA’s infants, toddlers and preschoolers are in family childcare centers. Higher income families use family child care centers more often than lowerincome families (The Urban Institute).

Growth PotentialMany of the factors affecting society as a whole have established long-lasting trends withinthe child care field. These trends have created a strong need within America for child care,with no end in sight.

Over the last 30 years, the proportion of children living with one parent has grown from 12 percent to 28 percent (Census Bureau’s report on Marital Status and LivingArrangements). Half of all children will witness the breakup of a parent’s marriage. Ofthese, close to half will also see the breakup of a parent’s second marriage (The Abolition ofMarriage by Maggie Gallagher).

Even among children living with both parents, the rate of two income families continues togrow. As of March 200A, six out of every 10 mothers of children under age three were inthe labor force). Seven of every 10 mothers of children ages three to five, were in the laborforce (U.S. Department of Labor, Women’s Bureau). These statistics represent a 7 percentincrease over 10 years ago.

The need for child care services is clear, and the outlook for the need remains strong. JustLike Home maintains a waiting list of nine children. Inquiries when the waiting list is atcapacity are filed for future mailings when the waiting list again has room. Our facility islarge enough to accommodate 12 more children (35 square feet per child is required). Weintend to expand to service 12 additional children over the next two years.

JUST LIKE HOME CHILD CARE BUSINESS PLANMARKETING PLAN

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Geographic LocationsChild care centers operate across the nation in every community.

Anderville, the county seat of Window County, is thriving. The city has a population of110,000; the county’s population is over 322,000. The county’s population has grown 14percent in the last decade. Over 6 percent of the population is under five years old. Over 20percent of the population are college graduates and the home ownership rate is 60 percent.The median household income is $51,286. Unemployment in the city is less than 3 percent(Anderville Chamber and U.S. Census Bureau). Population in the state is expected to growby 12 percent over the next three decades and employment will grow by 16 percent. Therate of children under five is expected to remain fairly steady (metcast.org).

Anderville has a vibrant economy, high median wage and steady growth. As home to fourcolleges, including the state university, it experiences a steady influx of young people whomarry, have children and stay awhile. While growth in surrounding areas may be primarilyin the older populations, the city will always have plenty of children needing care.

Industry TrendsAs the target market’s needs change, the industry adapts. Centers around the country areoffering round-the-clock care for children of non-traditional and traveling workers. A trendwell established on the West Coast is “occasional care” for the parent whose regulararrangements have fallen through or for the parent who only needs outside caretakers onoccasion. This is proving to be a large market; however, these arrangements bringscheduling and staffing challenges with them and must be well thought out beforeimplementation.

Seasonality FactorsChild care is needed year-round for the infant and preschooler. Older children need care inthe summertime when school is out (when we see a lot of self-care) and after schoolprograms during the school year.

Profit CharacteristicsAccording to RMA (Robert Morris Associates) data, child care centers with under $1 millionin annual sales, average a profit before taxes of 6.7 percent.

Distribution ChannelsThis industry consists of establishments that provide paid care for infants, prekindergartenor preschool children, or older children in after-school programs. Formal child care centersinclude nursery schools, preschool centers, Head Start centers, and group child care centers.Self-employed workers in this industry provide care from their homes (family child care).


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Basis of CompetitionWhile price is a consideration for parents when choosing child care, the quality of care anda location accessible to the parents’ work or home are primary factors. The number-onereason parents give for switching their child’s provider is that they don’t think the provideris responding to their needs as parents. (Family Child Care Council) The hours and days ofoperation play a large part in the child care decision.

Competition ProfileDirect Competition: There are 16 accredited child care facilities and 101 licensed child carefacilities in the city limits. These centers have anywhere from six to 70 children, rangingfrom newborn to after-school age. Of these centers, three are in the same general area asJust Like Home. Also, two family child care homes operate within a five-mile radius of JustLike Home. Most of these facilities have waiting lists for enrollments. The directcompetition has similar hours of operation except that two offer nighttime and sick-childcare.

Indirect competition: It is more difficult to get a good understanding of the indirectcompetition in the Anderville area. It includes unlicensed child care providers, familymembers and friends. We can easily communicate our advantages over unlicensed child careproviders; however, we do not try to convince families that we are an advantage overfamily, friend or parental care.


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Competitive Analysis Grid

Child Care Pre- Licensed Un-licensed Just Like HomeCenters schools Home Care Home Care

Service Quality Average Varies Average Varies High

Child Care Fees High Moderate Moderate Low Higher

Experienced No Yes Yes Varies YesWorkers

Preschool Yes Yes Varies No YesCurriculum

Facilities Up-to- Need Need No Up-to-Date Upgrade Upgrade Facilities Date

Flexible Hours Yes No Somewhat Varies No

Development of Only for End of No No Yes - MonthlyReports Pre-K Year

Clean Yes Varies Yes Varies YesEnvironment

Physical Fitness Yes Yes No No YesActivities

Other Related No No No No Yes - afterServices school care


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Customer ProfileAlthough we concentrate on the needs of the child, the real customer is the person whopays for the services—usually the parent. A “typical” Just Like Home customer has thefollowing characteristics:

✿ Average age from 25 – 40 years old

✿ Starting a family or have one to three children

✿ Work in a professional environment

✿ Need child care services Monday through Friday

✿ Earn $45,000 to $100,000 yearly household income

✿ Interested in the development of their children and wish to be involvedin this process.

All children seem to thrive in an environment where they receive one-on-one attention,learning tools and safety. However, the facility’s size and number of personnel limit thenumber of children who can be served by Just Like Home. We seek children who

✿ Come to Just Like Home as infants or under 18 months of age

✿ Enjoy interaction and are naturally curious

✿ Respond well to the environment of family child care.

Target Market ProfileThe target market includes:

✿ Families already bringing their children who may be expanding theirfamily

✿ Families who are expecting a baby and live or work within 10 miles

✿ Families who have an infant under 12 months old and live or workwithin 10 miles.

✿ Families who want full-time (35 hours) of child care each week.

We accept only full-time enrollments. Part of our offering is a stable environment withchildren who are accustomed to one another. Full-time enrollees allow for better staffingavailability and better activities planning. We offer Monday through Friday daytime service.Other, larger centers accommodate those with nighttime and weekend needs.


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Pricing ProfileJust Like Home pricing strategy is to price slightly higher than the average family child carefacility due to the uniqueness of the service. The prices will be lower than many traditionalchild care centers or a nanny.

Age Weekly Rate Extended Hours

Infant (newborn to 11 months $175.00 $5.00

Toddlers (12-35 Months) $150.00 $5.00

Preschool (3-5 Years) $125.00 $5.00

Gross Margin on Products/ServicesSome centers might sell toys or charge for art supplies used or food consumed. Just LikeHome includes those costs in the weekly fee charged to our families. We expense our costsunder operating expenses not as cost of goods sold.

Break-Even AnalysisFull time enrollments of six children are required to compensate the owner at her desiredincome level and cover all expenses.

Market PenetrationDistribution ChannelsWhen Just Like Home began, enrollment was steady through contacts at Lois Banks’ church.Word of mouth is our strongest ally. Just Like Home now has an adequate number ofcustomers and a waiting list in place. Although our strategy may be slightly different fromtraditional business, we feel promotion is key to our success. Our primary promotionalefforts go toward retaining our existing customers—not seeking new ones.

Sales Representatives/Direct-Sales ForceLois Banks is the representative of Just Like Home. Her church and community contactskeep the center fully enrolled.

Direct Mail / TelemarketingWe stay in contact with our existing clientele and those on our waiting list, through amonthly newsletter. It is mailed to the waiting list and hand-delivered to existingcustomers. We highlight the children’s activities and accomplishments for the month andpass along worthwhile information from parenting magazines and other sources.


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Advertising and PromotionInitially, advertising was done through church publications, but most efforts now focus onrelationship building with existing clientele. That effort and reputation building in thecommunity make up the primary promotional thrust.

Packaging and LabelingWe do not sell a traditional product with packaging, but we make sure our correspondencecarries with it our lively, colorful logo and fits the image of Just Like Home. We also takecare that party favors and other treats a child may take home are of good quality.

Service and WarrantiesWe do not offer warranties other than to guarantee a safe environment.

Trade ShowsJust like Home does not exhibit in trade shows. Franchise operations can benefit from thistype of promotion, but our goals do not include that kind of growth.

Future marketsWe intend to offer after-school and summer care to our existing customers as their childrengrow and their needs change. This service is projected to start in the fall of 200C.


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Administrative Policies, Procedures and ControlsReceiving OrdersAdmission guidelines help to provide adequate communication between the new parents,the providers and Just Like Home. When a new family first contacts Just Like Home, theywill receive an information packet that describes the philosophy of child care and theenrollment procedures.

Applications are accepted from prospective clients until each age category of the waiting listhas three children on it. Applicants are taken from the waiting list on a first-come first-served basis to fill age slots.

Billing the CustomersChild care fees are due on the first day of each week. A late fee of $5.00 per day is chargedwhen child care fees are not paid by the second day of the week.

Paying the SuppliersAll expenses are paid as expenses are incurred.

Collecting the Accounts ReceivableJust Like Home manages to run without receivables. Parents know we have a waiting listand our clientele can well afford our service.

Reporting to ManagementAll rules and procedures are posted for part-time help. Reports are filled out and given toLois when employees are filling in for her.

Staff DevelopmentLois Banks attends a bi-annual statewide conference for child care centers. Part-timeteenage help (over 14 years of age) for the additional after-school and summer program willtake classes with the local Red Cross paid for by Just Like Home. When we expand in year200D to six more children and an additional full-time caretaker, that employee will takestate training and attend the statewide conference as well.

Inventory ControlThere is no real inventory. Food supplies are budgeted and monitored by Lois Banks.Children do not have access to snacks without adult supervision.

Handling Warranties and ReturnsNot applicable.

Monitoring the Company BudgetsLois keeps the books on QuickBooks software. The accountant goes over the books on aquarterly basis.

JUST LIKE HOME CHILD CARE BUSINESS PLANOPERATING AND CONTROL SYSTEMS

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Security systemsWritten emergency plans are posted. Safety locks are in place on doors and outsidegates. Childproof cabinet locks and electrical protectors are in place.

Documents and Paper FlowA document and control system has been developed for Just Like Home. All proceduresare either planned prior to the event or a document is completed after the event. This isa critical quality-control process that Just Like Home stresses for the following reasons:

✿ Communication with the parents is critical to the success of thebusiness.

✿ Adherence to state regulations is necessary to keep a license.

✿ Protection of the integrity of the business’ activities may benecessary in case of a lawsuit.

✿ Proving the successful (and potentially marketable) system of childcare is essential to the growth of the business.

Lois keeps all the required reports and charts on a daily basis. State-required forms forincident reporting are included in the Appendix.

Planning chartProduct / Service DevelopmentOur day is scheduled so the children become accustomed to a comfortable routine andknow what to expect. A detailed daily schedule is part of the Parent Handbook includedin the Appendix.

Details concerning center policies covering nutrition, discipline and field trips are alsoin the Parent Handbook.

✿ After school care to begin in the fall of 200C.

✿ Six more children and a second full time worker to be added in200D. Summer care for the after school population will also beoffered.

Manufacturing Not applicable.


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Financial RequirementsThe older children served by after school care will need different reading materials, toys, afew larger chairs and at least one piece of outdoor equipment geared to older children. Wehave budgeted $800 for these items.

Additional beds, mats, toys, seating will be need for the six additional preschoolers to beadded in 200D. Another $600 is budgeted for this addition

Marketing Flow ChartThe monthly newsletter will continue. Each child’s birthday is on the center’s calendar andan appropriate celebration is planned. Holiday events (which include parents toward the endof the week) are also planned.

Market PenetrationEfforts to promote to new customers will include:

✿ Being visible through publications, college classes, and localorganizations as the family child care expert. Contacts have beenestablished and some guest speaking has begun.

✿ Providing a packet of information to help new parents evaluate theirchild care needs and find an appropriate provider.

✿ Offering quarterly open houses to potential new parents and freeconsultations.

Management and InfrastructureLois Banks will remain the owner and manager.

Risk Analysis The liability issues have already been addressed in the “Product/Service Liability” section.Future business risk exists only if sweeping social change made child care obsolete. The realbusiness risk lies in the possibility that Lois Banks could become unable to care for thechildren. Personal disability insurance has been purchased for this eventuality.

If the facility itself were to become unusable for a time due to fire or other disaster, stepscould be taken to temporarily take care of the children in an employee’s home or possibly inchurch facilities. Licensing issues would need to be addressed in these circumstances.

Salvaging AssetsUsed tot furniture, toys, outside equipment and games, etc., make up the assets of Just LikeHome. They could be sold for very little on the dollar—a better plan might be to donatethem to a charity and take the tax deduction.


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New Offerings to MarketAs already stated in the plan, Just Like Home plans to offer after-school and summer careand expand to six more preschool age children in the next two years. The total populationat the end of our two-year growth will be 18 children. Twelve infant to preschoolers and sixschool age children.

Ms. Banks has plans to write articles for publication in local newspapers and trade journals.She has dreams of someday writing children’s books for the preschooler and developinginteractive curricula for other child care centers.

Capital RequirementsOver the next two years, we see expenditures of $1,400 to expand our offerings. Theseexpenditures will be expensed at the time of purchase. These additional pieces ofequipment will not be carried as capital assets.

After school and summer program:

✿ Used swing set $400

✿ Books $150

✿ Toys/games $100

✿ 4 Chairs $150

Six more preschool children:

✿ 6 Mats $240

✿ Chairs & Table $200

✿ Toys/games $160

Personnel RequirementsTwo to three teenagers will be hired at $6.00 per hour to assist with the after-school andsummer program. These teens will essentially job share so that they can continue toparticipate in their own school and summer activities and still be employed. Severalneighborhood teens have already expressed interest in working at Just Like Home.

Full-time help will be required in 200D to accommodate six new enrollees. The existing on-call employees have expressed strong interest in sharing this position. This arrangement willprovide the ideal flexibility for the employees and for Just Like Home. Through the Banks’church, other potential back-up workers have been identified.

JUST LIKE HOME CHILD CARE BUSINESS PLANGROWTH PLAN

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Exit StrategySeveral possibilities exist:

✿ Close the center and sell the used assets or donate them to a charity.

✿ Hire caregivers to run the center while Ms. Banks focuses on her booksand curricular endeavors.

✿ Sell the business to one of the employees (problematic since the centeris in the Banks’ home).

JUST LIKE HOME CHILD CARE BUSINESS PLANGROWTH PLAN

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Sales ProjectionsSales projections are based on the existing six enrollees for 50 weeks each year. Starting inSeptember of 200C we project three after-school enrollees bringing sales for 200C to$47,736. In 200D these three school age children will be in our summer care program. InSeptember of 200D we project having six children in our after-school program. Projectionsfor 200D also include adding another full-time staff member and enrolling six more infantthrough preschooler age children for the entire year for sales of $103,431.

Income ProjectionsProjected pre-tax income for 200C is $32,833. The owner plans to take a minimum draw of$2,000 per month. This draw will increase each year. Taxes are not paid by a soleproprietorship. The estimated tax obligation for the owner is projected in the cash flow ofthe plan but not all of the tax deductions are accounted for here. Lois and Jack Banks taketax deductions for rent and utilities for the day care center so their accountant willdetermine the actual tax liability.

In 200D and 200E pre-tax income increases to $54,890 and $62,849 with the centeroperating at capacity.

Cash RequirementsJust Like Home will require new equipment in the amount of $1,400 over the next year.Staffing costs will rise with rising enrollment. Some costs such as food will rise inproportion to enrollment, other costs will remain steady.

Sources of FinancingEarnings will provide the necessary funding for Just Like Home’s growth. In the event thatenrollment lags behind hiring (which is not expected), the owner will forego her draw untilthe cash is again available.

JUST LIKE HOME CHILD CARE BUSINESS PLANFINANCIAL PLAN

200C Pre Start-up JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Cash In

Cash Sales 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736

Collections from Accounts Receivables - - - - - - - - - - - - -

Equity Received - - - - - - - - - - - - - -

Loans Received - - - - - - - - - - - - - -

Other Cash In (receipts from other assets) - - - - - - - - - - - - -

Other Cash In (interest, royalties etc.) - - - - - - - - - - - - -

Total Cash In - 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736

Total Cash Available 3,600 7,470 7,711 8,937 10,088 8,039 8,705 6,492 5,463 6,633 6,252 7,247 8,726 51,336

Cash Out

Inventory Expenditures

Inventory/Raw Material (Cash) - - - - - - - - - - - - - -

Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - - -

Production Expenses - - - - - - - - - - - - - -

Operating Expenses

Advertising - 15 15 90 15 15 15 15 15 90 15 15 15 330

Bank Charges - - - - - - - - - - - - - -

Dues & Subscriptions - 35 - - - - - - - - - - - 35

Insurance - 35 35 35 35 35 35 35 35 35 35 35 35 420

Licenses & Fees - - - - - - - - - - - 50 - 50

Marketing & Promotion - - - - 40 60 - 30 30 - 60 - 40 260

Meals & Entertainment - 50 - - - - 50 - - - - - - 100

Miscellaneous - - - - - - - - - - - - - -

Office Expense - 10 10 10 10 10 10 10 10 10 10 10 10 120

Office Supplies - 300 - - 300 - - 300 - - 300 - - 1,200

Outside Services - - - - - - - - - - - - - -

Payroll Expenses

Salaries & Wages - 160 160 160 160 160 160 1,160 160 547 547 547 547 4,468

Payroll Taxes - 24 24 24 24 24 24 174 24 82 82 82 82 670

Benefits - - - - - - - - - - - - - -

Professional Fees - 350 - - 350 - - 175 - - 175 - - 1,050

Property Taxes - - - - - - - - - - - - - -

Rent - - - - - - - - - - - - - -

Repairs & Maintenance - 50 50 50 50 50 50 50 50 50 50 50 50 600

Shipping & Delivery - - - - - - - - - - - - - -

Telephone - 35 35 35 35 35 35 35 35 35 35 35 35 420

Training & Development - - - - - - - - - - - - - -

Travel - 250 - - - - 250 - - - - - - 500

Utilities - - - - - - - - - - - - - -

Vehicle - - - - - - - - - - - - - -

Field Trips/Arts & Crafts - 40 40 40 40 40 40 40 40 40 40 40 40 480

Equipment/Toys/Books - - - - - - - - 800 - - - - 800

Food & Child Supplies - 275 275 275 275 275 275 275 275 300 300 300 300 3,400

Paid on Account - - - - - - - - - - - - - -

Non-operating Costs

Capital Purchases - - - - - - - - - - - - - -

Estimated Income Tax Payments - - - - 2,585 - 2,438 - - 1,837 - - 2,989 9,850

Interest Payments - - - - - - - - - - - - - -

Loan Principal Payments - - - - - - - - - - - - - -

Owner's Draw - 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000

Other Cash Out - - - - - - - - - - - - - -

Total Cash Out - 3,629 2,644 2,719 5,919 2,704 5,382 4,299 3,474 5,026 3,649 3,164 6,144 48,753

Monthly Cash Flow (cash in - cash out) - 241 1,226 1,151 (2,049) 1,166 (2,012) (1,129) (204) (382) 995 1,480 (1,500) (1,017)

Beginning Cash Balance 3,600 3,600 3,841 5,067 6,218 4,169 5,335 3,322 2,193 1,989 1,608 2,603 4,082 3,600

Ending Cash Balance 3,600 3,841 5,067 6,218 4,169 5,335 3,322 2,193 1,989 1,608 2,603 4,082 2,583 2,583

Cash Flow Statement (Projected)Just Like Home Child Care


200D JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Cash In

Cash Sales 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431


Equity Received - - - - - - - - - - - - -

Loans Received - - - - - - - - - - - - -



Total Cash In 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431

Total Cash Available 11,097 12,412 15,402 18,352 16,355 19,114 15,355 15,592 18,651 17,403 20,063 23,208 106,014

Cash Out


Inventory/Raw Material (Cash) - - - - - - - - - - - - -

Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - -

Production Expenses - - - - - - - - - - - - -

Operating Expenses

Advertising 25 25 125 25 25 25 25 25 125 25 25 25 500

Bank Charges - - - - - - - - - - - - -

Dues & Subscriptions 35 - - - - - - - - - - - 35

Insurance 35 35 35 35 35 35 35 35 35 35 35 35 420

Licenses & Fees - - - - - - - - - - 50 - 50

Marketing & Promotion - 60 - 60 130 60 60 60 60 60 - 70 620

Meals & Entertainment 100 - - - - 100 - - - - - - 200

Miscellaneous - - - - - - - - - - - - -

Office Expense 15 15 15 15 15 15 15 15 15 15 15 15 180

Office Supplies 300 - - 300 - - 300 - - 300 - - 1,200

Outside Services - - - - - - - - - - - - -

Payroll Expenses

Salaries & Wages 2,047 2,047 2,047 2,047 2,047 2,714 3,714 2,660 3,648 2,594 2,594 2,594 30,753

Payroll Taxes 307 307 307 307 307 407 557 399 547 389 389 389 4,613

Benefits - - - - - - - - - - - - -

Professional Fees 350 - - 350 - - 175 - - 175 - - 1,050

Property Taxes - - - - - - - - - - - - -

Rent - - - - - - - - - - - - -

Repairs & Maintenance 50 50 50 50 50 50 50 50 50 50 50 50 600

Shipping & Delivery - - - - - - - - - - - - -

Telephone 35 35 35 35 35 35 35 35 35 35 35 35 420

Training & Development - - - - - - - - - - - - -

Travel 350 - - - - 350 - - - - - - 700

Utilities - - - - - - - - - - - - -

Vehicle - - - - - - - - - - - - -

Field Trips/Arts & Crafts 65 65 65 65 65 65 65 65 65 65 65 65 780

Equipment/Toys/Books 600 - - - - - - - - - - - 600

Food & Child Supplies 485 485 485 485 485 485 485 485 485 485 485 485 5,820

Paid on Account - - - - - - - - - - - - -

Non-operating Costs

Capital Purchases - - - - - - - - - - - - -

Estimated Income Tax Payments - - - 4,336 - 4,222 - - 3,070 - - 4,839 16,467

Interest Payments - - - - - - - - - - - - -

Loan Principal Payments - - - - - - - - - - - - -

Owner's Draw 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800

Other Cash Out - - - - - - - - - - - - -

Total Cash Out 7,199 5,524 5,564 10,511 5,594 10,963 7,916 6,229 10,535 6,628 6,143 11,002 93,808

Monthly Cash Flow (cash in - cash out) 1,315 2,990 2,950 (1,997) 2,920 (2,610) (713) 1,924 (1,247) 2,660 3,145 (1,714) 9,623

Beginning Cash Balance 2,583 3,898 6,888 9,838 7,841 10,761 8,152 7,439 9,363 8,115 10,775 13,920 2,583

Ending Cash Balance 3,898 6,888 9,838 7,841 10,761 8,152 7,439 9,363 8,115 10,775 13,920 12,206 12,206


200E JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Cash In

Cash Sales 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390


Equity Received - - - - - - - - - - - - -

Loans Received - - - - - - - - - - - - -



Total Cash In 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390

Total Cash Available 21,494 23,183 26,547 29,871 27,552 31,524 27,279 28,729 31,388 28,998 31,257 34,002 123,596

Cash Out


Inventory/Raw Material (Cash) - - - - - - - - - - - - -

Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - -

Production Expenses - - - - - - - - - - - - -

Operating Expenses

Advertising 25 25 125 25 25 25 25 25 125 25 25 25 500

Bank Charges - - - - - - - - - - - - -


Insurance 35 35 35 35 35 35 35 35 35 35 35 35 420

Licenses & Fees - - - - - - - - - - 50 - 50



Miscellaneous - - - - - - - - - - - - -

Office Expense 15 15 15 15 15 15 15 15 15 15 15 15 180

Office Supplies 300 - - 300 - - 300 - - 300 - - 1,200


Payroll Expenses

Salaries & Wages 2,047 2,047 2,047 2,047 2,047 2,714 3,714 2,660 3,648 2,594 2,594 2,594 30,753

Payroll Taxes 307 307 307 307 307 407 557 399 547 389 389 389 4,613

Benefits - - - - - - - - - - - - -

Professional Fees 350 - - 350 - - 175 - - 175 - - 1,050

Property Taxes - - - - - - - - - - - - -

Rent - - - - - - - - - - - - -



Telephone 35 35 35 35 35 35 35 35 35 35 35 35 420


Travel 350 - - - - 350 - - - - - - 700

Utilities - - - - - - - - - - - - -

Vehicle - - - - - - - - - - - - -




Paid on Account - - - - - - - - - - - - -

Non-operating Costs

Capital Purchases - - - - - - - - - - - - -

Estimated Income Tax Payments - - - 5,033 - 5,170 - - 3,813 - - 4,839 18,855

Interest Payments - - - - - - - - - - - - -

Loan Principal Payments - - - - - - - - - - - - -

Owner's Draw 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 33,600

Other Cash Out - - - - - - - - - - - - -

Total Cash Out 7,599 5,924 5,964 11,607 5,994 12,311 8,316 6,629 11,678 7,028 6,543 11,402 100,996

Monthly Cash Flow (cash in - cash out) 1,689 3,364 3,324 (2,319) 3,294 (2,345) (250) 3,137 (2,390) 2,260 2,745 (2,114) 10,394

Beginning Cash Balance 12,206 13,895 17,259 20,583 18,264 21,558 19,213 18,963 22,100 19,710 21,969 24,714 12,206

Ending Cash Balance 13,895 17,259 20,583 18,264 21,558 19,213 18,963 22,100 19,710 21,969 24,714 22,600 22,600

Just Like Home Child Care Year-End

Income Statement (Projected)200C 200D 200E

Net Sales (less returns & allowances) 47,736 103,431 111,390 Cost of Goods Sold - - - Gross Income $ 47,736 $ 103,431 $ 111,390

Operating Expenses Advertising 330 500 500 Bad Debt Expense - - - Bank Charges - - - Depreciation & Amortization - - - Dues & Subscriptions 35 35 35 Insurance 420 420 420 Licenses & Fees 50 50 50 Marketing & Promotion 260 620 620 Meals & Entertainment 100 200 200 Miscellaneous - - - Office Expense 120 180 180 Office Supplies 1,200 1,200 1,200 Outside Services - - - Payroll Expenses Salaries & Wages 4,468 30,753 30,753 Payroll Taxes 670 4,613 4,613 Benefits - - - Professional Fees 1,050 1,050 1,050 Property Taxes - - - Rent - - - Repairs & Maintenance 600 600 600 Shipping & Delivery - - - Telephone 420 420 420 Training & Development - - - Travel 500 700 700 Utilities - - - Vehicle - - - Field Trips/Arts & Crafts 480 780 780 Equipment/Toys/Books 800 600 600 Food & Child Supplies 3,400 5,820 5,820 Total Operating Expenses $ 14,903 $ 48,541 $ 48,541

Operating Income $ 32,833 $ 54,890 $ 62,849

Interest Expense - - - Other Income (interest, royalties, etc.) - - -

Income Before Taxes $ 32,833 $ 54,890 $ 62,849

Income Taxes (if C Corp) - - -

Net Income $ 32,833 $ 54,890 $ 62,849


Balance Sheet (Projected)Year-End

200C 200D 200E

AssetsCurrent Assets

Cash & Equivalents 2,583 12,206 22,600 Accounts Receivable - - - Inventory - - - Security Deposits - - - Other Current Assets - - -

Total Current Assets $ 2,583 $ 12,206 $ 22,600

Fixed AssetsProperty, Plant & Equipment - - - Less: Accumulated Depreciation - - - Other Non-Current Assets - - -

Total Non-Current Assets $ - $ - $ -

Total Assets $ 2,583 $ 12,206 $ 22,600

LiabilitiesCurrent Liabilities Accounts Payable - - -

Line of Credit - - - Other Current Liabilities - - -

Total Current Liabilities $ - $ - $ -

Long-term LiabilitiesLoans - - - Mortgages - - - Other Non-Current Liabilities - - -

Total Non-Current Liabilities $ - $ - $ -

Total Liabilities $ - $ - $ -

EquityEquity Investments 10,000 10,000 10,000 Retained Earnings 26,433 81,323 144,172 Less: Owner's & Investor's Draws (33,850) (79,117) (131,572) Total Equity $ 2,583 $ 12,206 $ 22,600

Total Liabilities and Equity $ 2,583 $ 12,206 $ 22,600

Just Like Home Child CareFinancial Ratios

200C 200D 200E

Profitability Ratios

Gross Margin 100.00% 100.00% 100.00%

Operating Margin 68.78% 53.07% 56.42%

Net Margin 68.78% 53.07% 56.42%

Return on Assets (ROA) 1271.13% 449.70% 278.09%

Return on Equity (ROE) 1271.13% 449.70% 278.09%

Liquidity Ratios

Current Ratio #DIV/0! #DIV/0! #DIV/0!

Quick Ratio #DIV/0! #DIV/0! #DIV/0!

Risk Ratios

Debt Ratio 0.00 0.00 0.00

Debt to Equity 0.00 0.00 0.00

Efficiency Ratios

Inventory Turnover #DIV/0! #DIV/0! #DIV/0!

Days Sales Outstanding (DSO) 0.00 0.00 0.00

Investment Turnover Ratio 18.48 8.47 4.93

Net IncomeNet Sales

Total Liabilities

Total EquityNet Income

Total Current Assets

Current Liabilities

Accounts Receivable

Net Sales

Total Assets

InventoryCost of Goods Sold

Total LiabilitiesTotal Equity

Net Sales/365

Net Sales

Total Assets

Gross Income

Total Current Liabilities

Current Assets - Inventory

Net SalesOperating Income

Total AssetsNet Income

26


SUPPORTING DOCUMENTS

HISTORICAL BALANCE SHEETJust Like Home Child Care

12/31/200B

Assets Current Assets Cash & Equivalents 3,600 Accounts Receivable - Inventory - Security Deposits - Other Current Assets - Total Current Assets $ 3,600

Fixed Assets Property, Plant & Equipment Computer Equipment - Equipment/Machinery - Furniture & Fixtures - Vehicles - Leasehold Improvements - Building - Land - Less: Accumulated Depreciation (Do not enter a negative number) - Other Non-current Assets - Total Non-current Assets $ -

Total Assets $ 3,600

Liabilities Current Liabilities Accounts Payable - Line of Credit - Other Current Liabilities - Total Current Liabilities $ -

Long-term Liabilities Loans - Real Estate Loans - Other Non-current Liabilities - Total Long-term Liabilities $ -

Total Liabilities $ -

Equity Owners Equity 10,000 Retained Earnings (Enter a negative number for a loss) (6,400) Less: Owner's & Investor's Draws (Not for use by C Corporations) -

Total Equity $ 3,600

Total Liabilities and Equity $ 3,600

Appendix

SALES PROJECTIONSJust Like Home Child Care

Year 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALSales BudgetInfants 1,505 1,505 1,505 1,505 1,505 1,505 805 1,505 1,505 1,505 1,505 1,505 17,360 Toddlers 1,290 1,290 1,290 1,290 1,290 1,290 1,290 690 1,290 1,290 1,290 1,290 14,880 Preschoolers 1,075 1,075 1,075 1,075 1,075 575 1,075 1,075 1,075 1,075 1,075 1,075 12,400 After-school care - - - - - - - - 774 774 774 774 3,096 Product/Service Category E - - - - - - - - - - - - - Product/Service Category F - - - - - - - - - - - - - Product/Service Category G - - - - - - - - - - - - - Gross Sales 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736 Less: Returns & Allowances - - - - - - - - - - - - - Net Sales 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736 Other Income - - - - - - - - - - - - - Total Income 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736 Credit Management Sales (cash) 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736 Sales (credit) - - - - - - - - - - - - - Received on Account - - - - - - - - - - - - - Bad Debt Expense - - - - - - - - - - - - -

Year 1 AssumptionsInfantsToddlersPreschoolersAfter-school careProduct/Service Category EProduct/Service Category FProduct/Service Category GLess: Returns & AllowancesOther Income Sales (cash) Sales (credit) Received on Account Bad Debt Expense

Two infants at $175 per week less two weeks for family vacations.Two toddlers at $150 per week less two weeks for family vacations.Two preschoolers at $125 per week less two weeks for family vacations.Starting in September, After-school care--3 children at $4.00 per hour for 3 hours daily. This number will grow to six by mid next year.

Appendix


Year 2 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALSales BudgetInfants 3,010 3,010 3,010 3,010 3,010 3,010 1,610 3,010 3,010 3,010 3,010 3,010 34,720 Toddlers 2,580 2,580 2,580 2,580 2,580 2,580 2,580 1,380 2,580 2,580 2,580 2,580 29,760 Preschoolers 2,150 2,150 2,150 2,150 2,150 1,150 2,150 2,150 2,150 2,150 2,150 2,150 24,800 After-school care 774 774 774 774 774 1,613 863 1,613 1,548 1,548 1,548 1,548 14,151 Product/Service Category E - - - - - - - - - - - - - Product/Service Category F - - - - - - - - - - - - - Product/Service Category G - - - - - - - - - - - - - Gross Sales 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431 Less: Returns & Allowances - - - - - - - - - - - - - Net Sales 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431 Other Income - - - - - - - - - - - - - Total Income 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431 Credit ManagementSales (cash) 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431 Sales (credit) - - - - - - - - - - - - - Received on Account - - - - - - - - - - - - - Bad Debt Expense - - - - - - - - - - - - -


Four infants at $175 per week less two weeks for family vacations.Four toddlers at $150 per week less two weeks for family vacations.Four preschoolers at $125 per week less two weeks for family vacations.Three children at $4.00 per hour for 3 hours daily. Summer care for three school-aged children. In September, six children at $4.00 per hour for 3 hours daily.

Appendix


Year 3 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALSales BudgetInfants 3,010 3,010 3,010 3,010 3,010 3,010 1,610 3,010 3,010 3,010 3,010 3,010 34,720 Toddlers 2,580 2,580 2,580 2,580 2,580 2,580 2,580 1,380 2,580 2,580 2,580 2,580 29,760 Preschoolers 2,150 2,150 2,150 2,150 2,150 1,150 2,150 2,150 2,150 2,150 2,150 2,150 24,800 After-school care 1,548 1,548 1,548 1,548 1,548 3,226 1,726 3,226 1,548 1,548 1,548 1,548 22,110 Product/Service Category E - - - - - - - - - - - - - Product/Service Category F - - - - - - - - - - - - - Product/Service Category G - - - - - - - - - - - - - Gross Sales 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390 Less: Returns & Allowances - - - - - - - - - - - - - Net Sales 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390 Other Income - - - - - - - - - - - - - Total Income 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390 Credit ManagementSales (cash) 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390 Sales (credit) - - - - - - - - - - - - - Received on Account - - - - - - - - - - - - - Bad Debt Expense - - - - - - - - - - - - -


Six children at $4.00 per hour for 3 hours daily. Summer care for six school-aged children.

Four infants at $175 per week less two weeks for family vacations.

Four toddlers at $150 per week less two weeks for family vacations.Four preschoolers at $125 per week less two weeks for family vacations.

Appendix

OPERATING EXPENSE PROJECTIONSJust Like Home Child Care

Year 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL Operating Expenses

Advertising 15 15 90 15 15 15 15 15 90 15 15 15 330

Bank Charges - - - - - - - - - - - - -


Insurance 35 35 35 35 35 35 35 35 35 35 35 35 420

Licenses & Fees - - - - - - - - - - 50 - 50

Marketing & Promotion - - - 40 60 - 30 30 - 60 - 40 260


Miscellaneous - - - - - - - - - - - - -

Office Expense (postage) 10 10 10 10 10 10 10 10 10 10 10 10 120

Office Supplies 300 - - 300 - - 300 - - 300 - - 1,200


Payroll Expenses Salaries & Wages 160 160 160 160 160 160 1,160 160 547 547 547 547 4,468

Payroll Taxes 24 24 24 24 24 24 174 24 82 82 82 82 670

Benefits - - - - - - - - - - - - -

Professional Fees 350 - - 350 - - 175 - 175 - - 1,050

Property Taxes - - - - - - - - - - - - -

Rent - - - - - - - - - - - - -



Telephone 35 35 35 35 35 35 35 35 35 35 35 35 420


Travel 250 - - - - 250 - - - - - - 500

Utilities - - - - - - - - - - - - -

Vehicle - - - - - - - - - - - - -


Equipment/Toys/Books - - - - - - - 800 - - - - 800


Total Operating Expenses 1,629 644 719 1,334 704 944 2,299 1,474 1,189 1,649 1,164 1,154 14,903

Assumptions - Year 1AdvertisingBank ChargesDues & SubscriptionsInsuranceLicenses & FeesMarketing & PromotionMeals & EntertainmentMiscellaneousOffice Expense (postage)Office SuppliesOutside ServicesPayroll Expenses Salaries & Wages Payroll Taxes BenefitsProfessional FeesProperty TaxesRentRepairs & MaintenanceShipping & DeliveryTelephoneTraining & DevelopmentTravelUtilitiesVehicleField Trips/Arts & CraftsEquipment/Toys/BooksFood & Child Supplies

Newsletter and communications with clientele and prospects.Average quarterly order from Office Supplier.

avg cost of employees for owner sick days & time off, coverage for owner vacation, in September--teenage assistant at $6.00 per hour for 3 hrs/day.

Newsletter cost per month plus $75 in March and September to update information packet.

Subscription to Parenting Magazine.Premiums to cover liability and owner disability.Yearly licensing fee paid in November.Easter and Christmas parties at $40 each. Six birthday parties at $30 each.Meals during state-wide conferences.

estimated at 15%no benefitsAccounting fees at $175 per quarter--$350 in April for taxes. Contingency of $175 built in if needed for attorney.

Do not pay--take a tax decuction personally based on square footage.

Cost of separate phone line.

Cost for gas and accomodations for statewide conference.Do not pay--take a tax decuction personally based on square footage.

Average cost for field trips and crafts supplies.Swingset, books and games for after-school program.Average food cost for snacks and meals plus cost of diapers, first aid and other disposable items

Appendix



Advertising 25 25 125 25 25 25 25 25 125 25 25 25 500

Bank Charges - - - - - - - - - - - - -


Insurance 35 35 35 35 35 35 35 35 35 35 35 35 420

Licenses & Fees - - - - - - - - - - 50 - 50



Miscellaneous - - - - - - - - - - - - -


Office Supplies 300 - - 300 - - 300 - - 300 - - 1,200


Payroll Expenses Salaries & Wages 2,047 2,047 2,047 2,047 2,047 2,714 3,714 2,660 3,648 2,594 2,594 2,594 30,753

Payroll Taxes 307 307 307 307 307 407 557 399 547 389 389 389 4,613

Benefits - - - - - - - - - - - - -


Property Taxes - - - - - - - - - - - - -

Rent - - - - - - - - - - - - -



Telephone 35 35 35 35 35 35 35 35 35 35 35 35 420


Travel 350 - - - - 350 - - - - - - 700

Utilities - - - - - - - - - - - - -

Vehicle - - - - - - - - - - - - -




Total Operating Expenses 4,799 3,124 3,164 3,774 3,194 4,341 5,516 3,829 5,065 4,228 3,743 3,763 48,541



Subscription to Parenting Magazine.Premiums to cover liability and owner disability.Yearly licensing fee paid in November.Easter and Christmas parties at $40 each. Eighteen birthday parties at $30 each.Meals during state-wide conferences.


add full-time employee in January, hourly help to cover owner vacation and days off, increased teenage summer and after-school help.estimated at 15%no benefitsAccounting fees at $175 per quarter--$350 in April for taxes. Contingency of $175 built in if needed for attorney.




Average cost for field trips and crafts supplies.Mats, chairs and table, toys and games for six additional children.Average food cost for snacks and meals plus cost of diapers, first aid and other disposable items

Appendix



Advertising 25 25 125 25 25 25 25 25 125 25 25 25 500

Bank Charges - - - - - - - - - - - - -


Insurance 35 35 35 35 35 35 35 35 35 35 35 35 420

Licenses & Fees - - - - - - - - - - 50 - 50



Miscellaneous - - - - - - - - - - - - -


Office Supplies 300 - - 300 - - 300 - - 300 - - 1,200


Payroll Expenses Salaries & Wages 2,047 2,047 2,047 2,047 2,047 2,714 3,714 2,660 3,648 2,594 2,594 2,594 30,753

Payroll Taxes 307 307 307 307 307 407 557 399 547 389 389 389 4,613

Benefits - - - - - - - - - - - - -


Property Taxes - - - - - - - - - - - - -

Rent - - - - - - - - - - - - -



Telephone 35 35 35 35 35 35 35 35 35 35 35 35 420


Travel 350 - - - - 350 - - - - - - 700

Utilities - - - - - - - - - - - - -

Vehicle - - - - - - - - - - - - -




Total Operating Expenses 4,799 3,124 3,164 3,774 3,194 4,341 5,516 3,829 5,065 4,228 3,743 3,763 48,541



Subscription to Parenting Magazine.Premiums to cover liability and owner disability.Yearly licensing fee paid in November.Easter and Christmas parties at $40 each. Eighteen birthday parties at $30 each.Meals during state-wide conferences.


Average food cost for snacks and meals plus cost of diapers, first aid and other disposable items



Mats, chairs and table, toys and games for six additional children.Average cost for field trips and crafts supplies.


add full-time employee in January, hourly help to cover owner vacation and days off, increased teenage summer and after-school help.estimated at 15%no benefitsAccounting fees at $175 per quarter--$350 in April for taxes. Contingency of $175 built in if needed for attorney.

Appendix

CAPITAL BUDGET PROJECTIONSJust Like Home Child Care

Year 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALCapital BudgetOwner's Draw 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000 Investor's Draw - - - - - - - - - - - - - Dividends Paid - - - - - - - - - - - - - Security Deposits - - - - - - - - - - - - - Amortization - - - - - - - - - - - - - Depreciation (existing assets) - - - - - - - - - - - - - Capital Asset Purchases - - - - - - - - - - - - - Depreciation (new purchases) - - - - - - - - - - - - - Land - - - - - - - - - - - - -

Year 1 Total Depreciation - Assumptions - Year 1Owner's DrawInvestor's DrawDividends PaidSecurity DepositsAmortizationEquipmentEquipment DepreciationFurnitureFurniture DepreciationLeasehold ImprovementsLeasehold DepreciationVehiclesVehicle DepreciationBuildingBuilding DepreciationLand

Appendix

CAPITAL BUDGET PROJECTIONS



Appendix

CAPITAL BUDGET PROJECTIONS



Appendix