Childcare Setting
Example Business Plan
Year 20XX
Date:
Drafted by:
Contact:
Example Business Plan
Page 1
Contents List
1)
Executive summary
2)
Background
3)
Aim
4)
Objectives
5)
Action plan
6)
Current Market situation/ marketing strategy
7)
Summary review
8)
Finances
9)
Monitoring/evaluation
10)
Future trends
11)
Appendices
a. Projected Income
b. Cash Flow Forecast – Year 1
c. Cash-flow Forecast
(Other appendices might include survey results, copy of questionnaire,
copy of publicity leaflet/poster etc.).
Example Business Plan
Page 2
1)
Executive summary
This section should provide a summary of your business idea, it should be no longer than a paragraph
but really try and sell what you are going to do and grab the readers’ attention.
You could include:
 What you offer (eg. after school care)
 What market you will cater for (eg. working parents with children aged between 5-11)
 How you will be managed (eg. governor managed)
 What you do that is unique (eg. provide a pick up or drop off service)
2)
Background
For business start ups, this section is really about providing a rationale of why you have decided to set
up this provision and how you can make it work.
You could include:
 How you have established a need for this provision? (eg. has there been a high demand from
parents).
 What personal skills do you and your staff have, how are they capable of running this provision? (eg.
are all staff qualified to the appropriate level and have they experience in running similar provisions).
 What have you done so far in the planning for your new provision (eg. you have secured the use of
premises).
For existing businesses looking to expand or change formation, include a brief history of what you have
done since you were first established and include any particular achievements you have made (eg.
Quality Assurance certificates)
3)
Aim
Here you need to provide an overall business vision of what you aim to achieve and where you want to
be in 5 years from now? This business plan should then set out how you will achieve this.
If you have one, it is also a good idea to include your mission statement in this section, as this will affirm
your philosophy and direction.
Example mission statement - “We provide high quality, affordable and accessible after school care to
children aged five to eleven, in a safe and supportive environment, and work in partnership with parents
in the provision of this childcare”.
4)
Objectives
Here you will show how you achieve your overall aim, this can be divided into key contributing factors
which could include.
a) Legal requirements: (eg. When will you become Ofsted registered and what needs to be done
to obtain this?)
b) Premises: (eg. You may find that if you’re developing extended schools provision it will constitute
a material change in use of the school. Therefore, you would need to seek permission from the
LEA premises department or the Diocese. You may also need to install additional security)
c) Staffing: (eg. You will need to comply with the Ofsted national standards for staffing ratios)
d) Activities: (eg. you will need to think about providing a range of activities and equipment that will
meet the needs of children at different ages and stages of development).
e) Marketing: (eg. How do you plan to promote your service to reach your target market).
Example Business Plan
Page 3
5) Action Plan
Here you will need to break down objectives into tasks that have set time scales and where possible
have the responsibility of completing the task assigned to a particular person.
Be specific about short term objectives but also incorporate medium and long term actions that will help
you achieve your overall vision and get you to where you want to be in 5 years from now.
For the short term objectives assign a list of tasks that must be achieved in order to meet that objective
for example:
SHORT TERM
For objective (a) Legal Requirements
TASK 1
Contact Dorset Sure Starts Childcare
Support Officers to arrange an initial meeting
to discuss Ofsted registration requirements.
WHO
BY WHEN
REVIEW
XXX
01/01/2006
01/12/2005
XXX
01/01/2006
01/12/2005
For objective (b) Premises
TASK 1
Contact Planning Dept. to see if planning
permission for change of use is necessary.
…and so on for all the objectives…
MEDIUM TERM
When you have the provision up and running, what will you do to keep up with changing trends and
remain competitive. For example will you look to increase the service on offer by extending your hours of
operation and meet future demand?
LONG TERM
In the Long term think about what you need to be doing in the next 4-5 years that will enable you to
achieve your overall vision and again keep up with changing trends.
6) Current Market situation/ marketing strategy
Think about the market you will be operating in, you will need to develop an understanding of your
market environment including its size and the share of the market you can realistically achieve. This will
be dependent on:
a)
b)
Market trends/ target customers– you will ideally need to be used by a large proportion of
working parents who will use the provision regularly and can afford it. Look at your local
employment and deprivation index to establish whether a provision can be sustainable on the
number of parents who can realistically afford to use it. Also think about how to target this group,
who will you target in the future, how quick your demand will increase and what products or
services will you be offering them.
Competition – Do you have any competitors, is there already an established child-care setting in
the area that is well used by your target market. Think about how you will be different from your
competitors.
Example Business Plan
Page 4
7) Summary Review
Here you will analyse the provisions strengths and weaknesses and the opportunities and threats
presented by the external environment, this is also known as a SWOT analysis. Ideally any identified
weaknesses and threats should be overcome by strengths and opportunities.
STRENGTHS
WEAKNESSES
Eg. Experienced/qualified/dedicated staff.
Eg. Some staff resistance to working
longer hours.
OPPORTUNITIES
THREATS
Eg. New Business (300+ staff) opening 10 Eg. Future of local authority grant unsure.
minutes away in 6 months.
Currently
examining various options for co-operation with
the personnel manager re the provision of staff
childcare.
8) Financial Information
Explain how you have calculated the figures for the financial year and direct the reader to where they
can view your financial forecasts and budget sheets (eg. appendices a and b).
Remember your figures will just be estimates but ensure they are as exact as you can make them and
allow for increase in inflation for years 2, 3, 4 and 5.
9) Monitoring and evaluation
Remember that the business plan is a working document therefore this section will explain how your
objectives will be monitored and how you will keep on target with the completion of your tasks.
It is a good idea to assign responsibility to a specific person who will monitor these target dates
throughout the development, and alert the team to any likely slips. This will enable you to take
alternative action to alleviate the impact of any anticipated delays. Also, if you receive funding through
Dorset Sure Start this will be subject to a contract that will require regular monitoring from various
members of the Sure Start team.
Longer term, once the provision is up and running, try to review regularly the take-up of places and get
feedback from your users. You may choose to do a formal survey or just chat casually to parents as
they pick their children up, whatever you choose ensure that you use the information to continually
improve your service.
Example Business Plan
Page 5
10) Future trends
In this final section reiterate points that you have made in your SWOT analysis about future opportunities
and threats and expand on the most prevailing issues. This will reassure the reader that you are
prepared for the future and know how to take advantage of opportunities and minimise the threats. If you
are unable to do this, the reader may lose confidence in your ability to achieve your budgeted income
and reach your goals.
Example Business Plan
Page 6
PROJECTED INCOME
MONTH:
Month
1
Number of sessions open per week*
Month 2
Breakfast
Month 3
Lunch Club
Month 4
Month
5
Nursery Grant
Month
Month 6
7
Non Funded
childcare place
Month 8
Top Ups
Number of weeks open per
month **
Number of children projected per sessions ***
Breakfast
Lunch Club
Nursery Grant
Non Funded Childcare Places
Top Up's
After school
Holiday
Other
Fee charged per session ****
Breakfast
Lunch Club
Nursery Grant
Non Funded Childcare Places
Top Up's
After school
Holiday
Other
Fee income per month *****
Breakfast
Lunch Club
Nursery Grant
Non Funded Childcare Places
Top Up's
After school
Holiday
Other
Total Fee Income:
Example Business Plan
Page 7
Month 9
Month 10
After School
Month 11
Holiday
Month 12
Other
TOTAL
Cash Flow Forecast - Year One
MONTH:
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
TOTAL
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
REVENUE COSTS
Staff Costs
Premises Costs
Insurance Casts
Administration Costs
Activity & material costs
Volunteer Costs
Advertising Costs
Transport Costs
Other Costs
TOTAL REVENUE COSTS
CAPITAL COSTS
Refurbishment Costs
Equipment Costs
Other Capital cost
Total Capital Costs
TOTAL CAPITAL COSTS
TOTAL COSTS
Opening balance or brought
forward
Income from fees
Income from other sources
e.g. grants, donations,
fundraising, loans
Total Income
Less total costs
net profit/loss (c/f to next
month
Example Business Plan
Page 8
Income & Expenditure Budget for year 2 - 5
YEAR 2
YEAR 3
YEAR 4
YEAR 5
Opening Balance
0
0
0
0
Income
Fees
Funding
Fundraising
Donations
Total Income
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Revenue Expenditure
Wages
National Insurance
Premises
Utilities
Insurance
Training
Print and Stationery
Maintenance
Materials
Food
Milk
Total Revenue Expenditure
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Capital Expenditure
Refurbishment
Equipment
Other Capital Costs
Total Capital Expenditure
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Expenditure
Balance
Closing Cash Balance
0
0
0
0
0
0
0
0
0
0
0
0
Example Business Plan
Page 9
Example Business Plan
Page 10