Childcare Setting Example Business Plan Year 20XX

Date: Drafted by: Contact:

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Contents List 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) Executive summary Background Aim Objectives Action plan Current Market situation/ marketing strategy Summary review Finances Monitoring/evaluation Future trends 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.).

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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 b)

c) d) e)

to obtain this?) Premises: (eg. You may find that if youre 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) Staffing: (eg. You will need to comply with the Ofsted national standards for staffing ratios) 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). Marketing: (eg. How do you plan to promote your service to reach your target market).

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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. 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) 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. XXX 01/01/2006 01/12/2005 WHO XXX BY WHEN 01/01/2006 REVIEW 01/12/2005

b)

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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 Eg. Experienced/qualified/dedicated staff.

WEAKNESSES 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.

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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.

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PROJECTED INCOME
MONTH: Month 1 Month 2 Breakfast Month 3 Lunch Club Month 4 Month 5 Nursery Grant Number of sessions open per week* 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: Month Month 6 7 Non Funded childcare place Month 8 Top Ups Month 9 Month 10 Month 11 Holiday Month 12 Other TOTAL After School

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Cash Flow Forecast - Year One

MONTH: 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 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

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Income & Expenditure Budget for year 2 - 5

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YEAR 2 Opening Balance Income Fees Funding Fundraising Donations Total Income Revenue Expenditure Wages National Insurance Premises Utilities Insurance Training Print and Stationery Maintenance Materials Food Milk Total Revenue Expenditure Capital Expenditure Refurbishment Equipment Other Capital Costs Total Capital Expenditure Total Expenditure Balance Closing Cash Balance
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YEAR 3 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 0 0

YEAR 4 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
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YEAR 5 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