Business Plan For A Day Care Center In Kulhudhuffushi, Maldives

Industry Analysis

Business plan is the structured document that contains the systematic planning, objectives, and functionalities to establish or grow any business. Especially, the entrepreneurs ought to structure the business plan by following a sequential procedure to make benefits for a certain period (Schaper et al., 2014). In usual cases, a structured business plan requires the complete information about the industry, marketing plan, operational functionalities, and the necessary budget. In this study, the business plan will discuss about the entrepreneurship business of the Day Care Centre in Kulhudhuffushi, Maldives. The study will present the information related to the industry and the market feasibility to establish the business. The required budget planning will also be included in this study.

The business plan is focusing on starting up a unique business in Kulhudhuffushi, Maldives. The establishment of a Day Care Center for the children of the working mother is prioritized in this business plan. It is notable that in Kulhudhuffushi, most of the women are working and they are not able to provide sufficient time in taking care of their children. They usually leave their children with the grandparents, any family member, or any professional person by paying money. However, the mothers cannot fully trust these people when it comes to their children. Majority of the women have the negative perception about the idea of letting others to take care of their children. The idea of establishing the day care center is thus brought up for providing the proper care to the children of the working mothers. The major focus of such business is to provide the care, facilities, and education as per the requirements. At the same time, the mothers would also be free from worries if they find any trustable institutions to keep their children safe while they are away. After observing such requirements, it can be implied that this day care center development business has the significant growth opportunity. At the initial point, it is essential to determine the structured business ideas to formulate the market needs. Accordingly

The business is influencing by observing the requirement of keeping the children of those mothers who are unable to provide the sufficient time to their children while they are working. The major purpose of the business is to provide the fruitful environment for the children from the age group between 6months to 10 years. The children would get the facilities to play and stay there all day long until their parents arrive. The caretakers would be available in the day care center to teach and play with the children. The children would even receive the basic education at per their age group. The security provided by the day care center would be much beneficial for the mothers to leave their children in the safer hands. The day care center would be registered to make the mothers comfortable enough to keep their children when they will be at their workplace.

Business Description

The design and structure of this day care center would be established for to ensure the replacement of the school education of the children between the age group of 4years to 10 years. The center would provide the required snacks and meals to the children throughout the day. It ensures that the mothers do not need to worry about the frequent meals or playing hours of their children. In addition to this, the day care center would also promote the Islamic upbringing and the required education from the early childhood. The business would also hire the professional teachers who can guide the children regarding the Quran study. In addition to this, the teachers would also ensure good discipline among the children. Apparently, it can e considered that the establishment of this day care center would be much fruitful for the working women to take care of their children in a proper way. However, it is necessary to structure the plan in a systematic way by analyzing the influence of the external market as well as considering the market feasibility. Moreover, the adequate capital investment is also necessary for establishing this entrepreneurship business.

The market research is necessarily needed to be conducted to ensure the business potentiality for a certain period. It is essential to understand the market needs and the target customer for the business before structuring the business plan (Brinckmann & Kim, 2015). In addition to this, there are the significant needs of the trustable care takers for taking proper care of the children. The benefits that would be provided to the guardians would also be fruitful for the children and can make profits in business.

The SWOT analysis presents the internal strengths and weakness of the business along with the market opportunities and threats. The internal and external market analysis is presented further:

SWOT analysis

(Source: Created by the Author)

It is to be specified that the day care center business is quite difficult for the entrepreneur. Especially, during the business operations, some of the specific considerations are necessary to be taken into account. The involvement of the various concerns sometimes becomes troublesome in terms of providing the high quality services to the customers (Thomas et al., 2014). However, it is necessary to ensure that some of the economic factors may create the impact on small or startup business. The feasibility of the business is needed to be ensured by considering some of the specific areas.

Market Analysis

Employment figures: The day care center is looking for starting up the business in the community where the mothers can leave their children under the observation of the child care center. It is important to predict the business success by considering the employment figures in the locality (Sambajee & Dhomun, 2015). If there is the significant scope of the high employment rate, the business would be able to earn profits. In Kulhudhuffushi, the employment opportunities are quite commendable. There are the employment opportunities in different field of the businesses. Hence, the business may receive the supports from the local people to involve them in the business functions.

Average Local Salaries: The affluence of the business area is one of the key factors to the startup business (Huang & Sarigöllü, 2014). In general views, it can be considered that the middle class environment is quite preferable for opening a daycare business. It can be implied that the business can estimate approx $30,000 for the associated employees. If it is converted in Maldivian Rufiyaa, the amount would be near to MVR 462,831.36. The families often choose to employ private nannies to keep their babies when they are away. Hence, it is necessary to determine the average salaries to employ the people for taking care of the children. It is thus necessary for the startup business to ensure the sufficient capital to provide the required salaries to the associated members.

Cost of Operating in the Locality: Another economic factor concerned for the startup business. It is necessary to determine the business operational costs in the particular area (Pavlou & Stewart, 2015). The business will be starting at Kulhudhuffushi area in Maldives. The business operation costs generally include the cost of the entire business functionalities. Some areas can be less expensive. However, it is to be indicated that Maldives is the famous tourist area where the business operation costs are considerably high. Moreover, it is necessary to consider the interest rates and the amount involved with the other facilities. Hence, such economic factors may create the recognizable impact on entrepreneurship business. Observing the market opportunities through formulating the effective marketing plan would be beneficial in such cases.

The marketing plan consists of the marketing strategy to grow the profit parameter of the entrepreneurship business (Kuratko, 2016). The formulation of the marketing plan is also influenced by some of the considerable factors that are necessarily needed to be taken into account. Opening the Day Care Center at Kulhudhuffushi requires remarkable promotional marketing along with the identification of the target market and positioning. The following aspects would be taken into consideration to formulate the structured business plan.

SWOT Analysis

1) Advertisement Strategy

The advertisement strategy is quite useful for promoting the business among the potential customers (Wheadon & Duval-Couetil, 2014). It has been observed that majority of the population in Kulhudhuffushi are working women. These women often hire the private nannies to keep their children while they are away. In order to establish the business for the child care centre, it is necessary to promote the business idea to these working women. The use of the broadcasting media, leaflets, and social media promotions would be much preferable for developing the marketing strategy. On the other hand, the development of the official website would also be helpful. The women would receive or give feedback related to their expectations through online sites. The executives would be available for providing the necessary information to the customers.

2) Marketing Objectives

The marketing plan is based on some of the specific objectives that are abruptly setting the business goals. The business is looking for the opportunity to grow the day care facilities for the children of the working mothers. The marketing objectives are thus set to observe the business potentiality and ensure success. The determined objectives are:

• To ensure the growth of customers by 10% per year
• To provide the reliable service and quality care to the children including education and meals
• To estimate the feasible budget for structuring the entire business plan
• To increase the business profit rate by 5% per quarter

Table 1: SMART Objectives

(Source: Created by the Author)

The day care center at Kulhudhuffushi is generally targeting the working women as their target market. It has been specified that majority of the population are women and they are working at their workplace. In usual cases, it has been seen that they need to keep their toddlers or children to other family members or they appoint professional nannies to take care of their children while they are away from home. The major focus of this day care center is to establish a reliable children care service for these working women in Kulhudhuffushi. The children between the age groups of 6 months to 10 years would receive the proper care, meals, and education in this center. The teachers and the professional care takers would be available to provide such quality care. The mothers usually opt for the reliable center where their children can be safe throughout the day. Hence, the target market is strategically developed for this business plan.

In order to develop the business positioning, this day care center is looking forward to provide a range of facilities for the children and their mother. The children would get the healthy meals throughout the day. The professional caretakers would be available to accompany or play with the children. The day care center is also facilitating the education process as per the age group of the children. It is one of the most significant processes of replacing the school education. The play school facilities would be available in this day care center. In fact, the teachers would be available to provide the education related to Quran and Islamic education. The unique and reliable facilities provided to the target customers would be helpful for the business to strengthen the market position.

The Economics of Business

The marketing mix is assembled in the business plan for understanding the external market and business feasibility (Qureshi, Saeed & Wasti, 2016). The marketing mix generally includes the four significant factors that are essential for planning the business activities and positioning. The factors of marketing mix are discussed further:

Price: The pricing structure is generally based on the hourly rate. At Kulhudhuffushi, the business is quite favourable due to which the payable of the associated professional caretakers would be based on the hourly rate. The target customers of the business are the working women. Considering their needs and business urgency, the moderate charges for the registration are applied. The women would provide the charges for the registration that would include the fees of the caretakers, education counselor, and the meals.

Promotions: The advertisements through media broadcasting, social media promotions, business leaflets distributions, and poster development are the major mediums of business promotions are selected. The ideas regarding this new setup are needed to be generated among the target market. These techniques for promoting the business would be much helpful at the initial stage.

Product/Service: The business is focusing on providing the childcare facilities to the children from the age groups between 6 months to 10 years. The women who need to keep their children at the safer hands and within proper care in time of their absence are the target customers for the business. The children would receive the proper meals, playing toys and would be accompanied by the caretakers. The education will also be provided to these children.

Place: The place selected for the business is Kulhudhuffushi, Maldives. It has been observed that majority of the population in this area are women. In fact, they stay away for quite sometimes due to their professions. In such time, it is necessary for them to find the people or the reliable center where they can keep their children under the professional observance. Hence, the business will be developed in this location where the growth opportunity of the business is quite high.

The design and the development plan for the day care center needs to involve several factors. This structured plan is presented further:

• The business would ensure the entire legal formalitiesfor managing the location or the area of the center.
• The development of the entire budget will be structured by determining the costs of the associated components. The capital investments would be based on every component and the salaries of the associated staffs.
• The day care center would include the proper rooms for education purposes, playground, reception desk or area, a storage room, activity room, classroom, office, a staff room, and closets. The kitchen and bathrooms would also be attached in this place.
• The construction of the entire place would be observed and monitored in a specific way. The space would be measured and it would be designed as per the interests of the children.
• The design and the structure of the place need to be approved by the local federals. The approval received from the statutory figures would be helpful for the business development.

The operational plan usually contains the detailed structure of the services and products that are to be offered to the target customer. In addition to this, the sequential business functions are also included in an operational plan.

• The business would consider the cost and the techniques require for structuring this day care center. It would ensure that the children are safe in the atmosphere while their guardians will be away.
• The quality control team would monitor every aspect related to the operational facilities and the services for the children.
• The business would ensure the quality customer service. The working women would get the properly registered agreement containing the security clauses for their children. The major motto of the business operations is to establish the proper reliability among the customers.
• The business is also ensuring the proper inventory control for the future development. The association of the developed technologies would be associated for preparing the child care setting.

The management team is essential for structuring the entire business and performing the activities associated with the plan. The selected management for the business is described further:

• The executive management team is necessary for structuring the entire budget for the business plan.
• The teachers would be associated for providing the adequate education to the children.
• The professional caretakers would accompany and take care of the children.
• The manager would be appointed to monitor or review the business functionalities.
• The operation manager would be the in-charge of the operational activities of the business.

After organizing the market analysis process, economic factors, design and development and operational plan, it is necessary to schedule the plan in a structured and systematic way. The overall schedule for this business is presented further:

Table 2: Schedule for the Business Plan

(Source: Created by the Author)

The financial budget planning is essential for preparing a structured business plan. The business investors are usually attracted by the business ideas if the financial projection is properly shown. Therefore, it is necessary for the startup business to formulate a proper budget to ensure the income level, expenditure and profits.

Table 3: Financial Projection

(Source: Created by the Author)

The previous market analysis result ensures that the majority of the working women in Kulhudhuffushi are leaving their child under the observation of other reliable person. The target market for this business plan is thus focusing on the group of working women in Kulhudhuffushi. In preparing the financial budget, the income level of these women is needed to be taken into consideration. It is estimated that in the first year of the business, the income rate of the women is assumed to be MVR 1,848,000. In the first year the expenditure included the

• Salaries of caretakers
• Administrative cost – Rent
• Administrative cost – Admin staff
• Other cost – regulatory

Calculating the estimated capital investment, it can be assumed that the total expenditure cost would be MVR 1,473,800. Therefore the profit would be:

Expenditure Amount – Income Cost = Profit/ Loss

1,473,800 – 1,848,000 = 374,200 (MVR)

In the second year, it can be presumed that the annual income would be increased up to MVR 2,014,320. The expenditure in the business on the second year would almost be same like the previous year. The expenditure cost is thus assumed to be MVR 1,463,720. Therefore, it is estimated that the profit for the second year would be MVR 550,600, which is higher than the last year. The changes in the regulatory factors and the increasing rate of opportunities are suggesting that the income level may increase by the third year of the financial planning. The estimated income amount for the third year is thus supposedly assumed to be quite higher than the last year. The income amount is estimated up to 5,175,364. Similarly, it is necessary to increase the salaries of the associated employees. In fact, the administrative costs would supposedly be increased. Hence, the expenditure is expected to be around MVR 2,746,438.

Eventually, it is assumed that in the final fifth of the financial projection, the income rate would be quite higher, up to MVR 10,285,348. During the year, the invested amount is assumed up to MVR 4,949,891. The total profit would thus be expected to almost MVR 5,335,458. Hence, it can be assumed that this day care business would signify much profit within 5 years time. However, the projection the proper planning is needed to be considered.

References

Brinckmann, J., & Kim, S. M. (2015). Why we plan: the impact of nascent entrepreneurs’ cognitive characteristics and human capital on business planning. Strategic Entrepreneurship Journal, 9(2), 153-166.

Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer New York.

Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice. Cengage Learning.

Pavlou, P. A., & Stewart, D. W. (2015). Interactive advertising: A new conceptual framework towards integrating elements of the marketing mix. In New Meanings for Marketing in a New Millennium (pp. 218-222). Springer, Cham.

Qureshi, M. S., Saeed, S., & Wasti, S. W. M. (2016). The impact of various entrepreneurial interventions during the business plan competition on the entrepreneur identity aspirations of participants. Journal of Global Entrepreneurship Research, 6(1), 9.

Sambajee, P., & Dhomun, M. Z. A. (2015). Government and SMEs in the Maldives and Mauritius. International Journal of Entrepreneurial Behavior & Research, 21(6), 778-795.

Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small business.

Thomas, D. F., Gudmundson, D., Turner, K., & Suhr, D. (2014). Business Plan Competitions and Their Impact on New Ventures’ Business Models. Journal of Strategic Innovation and Sustainability, 10(1), 34.

Wach, K., & Wehrman, C. (2014). Entrepreneurship in International Business: International Entrepreneurship as the Intersection of Two Fields. International Entrepreneurship and Corporate Growth in Visegrad Countries, 9-22.

Wheadon, J. D., & Duval-Couetil, N. (2014). Business plan development activities as a pedagogical tool in entrepreneurship education. The Journal of Engineering Entrepreneurship, 5(1), 31-48.

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