Business Plan Summary
Business Plan Summary
Executive Summary 3
Management Team 4
Competitive Analysis 5
The Marketing Plan 6
Operational Plan 6
Development Plan 7
Risk and Mitigation Factors 7
Financial Plan 7
Projected Income Statement 7
Projected Balance Sheet 8
Projected Cash Flow 9
Sensitivity Analysis and Mitigation Measures 9
References 11
The Children World Business Plan Summary
Executive Summary
Playing is a very important aspect of the general development of children because it helps them develop some of their talents that could not have been identified earlier. Playing also helps children develop their motor skills, social skills as well as cognitive thinking. Although there are a number of recreation facilities and after-school activities' programs for children in Toronto, Canada, there is still some untapped market. Most of the existing, if not all, assumes that children are aware of their talents and know what they are passionate about. Therefore, they provide a wide range of programs that address different hobbies, so that every child can join the program that interests him/her more, and suites them best. However, in reality, those decisions are taken by parents, as they register their children in the program they perceive as more beneficial. This is the main reason behind the establishment of the Children World.
The Children World will offer children the utmost excellent learning and playing experience that compares to no other. Our centre will be a replica of the real world that is devised to fit children activities; it will offer children a chance to use role-play to try out and choose between 30 different jobs. In the course of role playing and engaging in every occupation and activity, children gain knowledge on; how people operate, monetary literacy, grown-ups line of work, group work, sovereignty, confidence and actual-life abilities. This will get children hands-on experience in various occupations, develop their skills, exercise their freedom of choice, and allow them to practice the activities or hobbies they enjoy the most.
So as to ensure that children get the best out of their visit to The Children World, there will be supervisors who will be responsible to direct children during the activities. The Children World targets children at the age of five all the way to thirteen years. Torontonian parents are our key targets, as the facility will be located in Toronto in Canada. The chosen location has been enticed due to the stable economic performance of the region. Since schools have very tight budgets, they try to limit the creative programs, and focus all their time, efforts, and sources on delivering the standardized materials. Children usually finish their typical school day between 1:35 to 2:35 pm; however, most working parents are not home before 6 pm. This will definitely drive the demand for after-school services that can develop children’s personality, skills, hobbies and interests.
According to the 2011 population census, children of the age between five and thirteen years that live in Toronto are about 260,000 children. The city of Toronto states that there are 916 licensed childcare centers that operate around 15,000 before or after-school spaces; the average after-school centers' fees range from 8.56 to $21.00 daily, but the high end centers charge around $45 per day. There are also only 16 after-school recreation centers with a high volume of wait list. We should not ignore the presence of those centers, as they are growing in terms of operation and customer base. However, due to the Children World’s distinguish line of services and operations; it is likely that the competition level will be medium to low.
Majority of the investments that will be made in the project will be long term in order to protect the company from the need to keep on investing every time. The initial investment that will be required in setting up this business will total to 1 million Canadian dollars. It’s expected that the company will produce a return of investment by the fifth year. From the risk perspective, The Children World is considered aggressive because it will venture into the market despite the existing competition.
Market Analysis
The city of Toronto has a lot of working parents who therefore cannot spend the whole day with their little ones. It is estimated that the average child in the city begins attending one form of formal education establishment or the other at the tender ages of 2.5 years. This is either at the kindergarten or a child day care facility. The various services offered by the formal institutions vary with the age of the child. These include full day child care, before and after school programs for children aged between 6-12 years, extended day or before and after services for children aged between 4 and 5 years attending full day kindergarten, recreational cares, recreational care for after school and nursery schools.
The Children World targets children of all ages from 5-13 years. A recent census carried out in the Greater Toronto Metropolitan Area established that roughly 24% of the cities’ population is under the age of 15. This provides up to an estimated total of 1.3 million children (Statistics Canada, 2013). This means that The Children World facility will have a large market clientele.
We are optimistic that to boost our current customer from forty to a hundred plus in the course of the year. This is possible since all the marketing team is in the field to meet the parents.
Management Team
The general manger of the facility excesses direct leadership is he has operational experience of more than six years .the manger will be responsible for the general supervision of the performance of the organization as a whole. The manager will coordinate all the activities of the facility. This will include scouting and enrollment of new clients, formulation and broadcasting of publicity for the facility and the collection of revenue and formulation expenditure budgets. Under the general manager will be the head of the child care workers who will double up as the human resources director. The facility also has a general employee who serves as the janitor and the grounds personnel. Manager is supported by other employees who are paid for the service they offer. The law of Canada stipulate minimum wage of 10$ per hour this wage who does Daily cleaning and maintenance of surrounding. While the experienced woks needs more payment of like 13$ per hour
Competitive Analysis
Competitive analysis plays a significant role in determining whether an organization will succeed in the market, and potential strategies to assist in resolving. The Children World is likely to enjoy wider market given that they are lower competitors in Toronto offering baby care services. There are other small scales recreational organizations located in Toronto. It is clear that these organizations are growing in terms of operation and customer base, The Children World will focus on children only so as to offer the best services in the market this will give it competitive advantage. The specialization on children services assist in the provision of high quality services to clients, which is a key competitive ingredient. Satisfied children and parents will market the organization across Toronto and will nerve change their mind on facility. We have highly qualified supervisors and staff members will ensure that the facility remains favorable and preferred by clients to retain existing ones and attract more.
Competitive Profile Matrix
Where
Current Market Position
We are competing with the Toronto’s Children Day Care. Therefore, we will be required to strategize our business model in a way, which would facilitate us to acquire a sustainable competitive advantage and sufficient market share at the same time. Our highly qualified supervisor will concentrate on children needs to live them ever satisfied
The Marketing Plan
The marketing plan assists in establishing appropriate strategies to achieve the objective of the organization. Key aspects included in the marketing plan are based on the product, place, promotion and price. The Children World will come up with an attractive marketing mix to attract as many clients as possible. The Children World will offer before and after school services to children in order to attract more clients. The product in this case is the recreation services to suit customer needs. Price is a sensitive aspect when it comes to marketing. The Children World is offering a new and relatively dynamic product in the market ant a friendly cost. The product enables the children grow into their full potentials which will make them happier. The parents therefore will not mind much about the prices that the facility quotes as they will want what is best for their children. Thus $50 per day will not pinch to the parents.
We will employee other marketing strategies to up our clientele. The promotional approach will be the establishment of partnership programs. Partnership with local hospitals, schools, pediatric care and fitness centers will increase awareness about the existence of The Children World and services offered. Discounted services will be offered to clients associated with the partnered organizations (Pinson, 2008). Other promotional approaches include brochures, social media, direct mail, public relations including child rescue and environmental care among others will be applied. The facility may also book several appearances in several local television and radio station talk shows.
The Children World may also promote its services by doing a trial run in the city. The facility may scout for a small number of children, 20, from different parts of the city. The children should be of different ages, ethnic, cultural, religious and economic backgrounds. The facility will then offer these children their services for up to two weeks while monitoring their progress. The children are then released into their communities and serve as the facilities unpaid ambassadors. This raises the profile of the facility as the children give testimony to their peers and parents on what they have witnessed. The children may also be retained at a discounted rate depending on the level of success of the pilot program. All these efforts are aimed at opening up the facility to the public for business.
Operational Plan
The operations of an organization are fundamentally guided by the nature of customers served. The Children World is based on recreational for schooling children at the age of five to thirteen. The facility will over services eleven hours a day that’s from eight in the morning to six pm. We have adequate employees to spend time with children throughout the day.
The management have hired about eleven employees to facilitate the operational of the facility among are two security guards, one during the day and the other at night. The care workers are present throughout the day to service children’s, general manager who will oversee the daily operations. At present our operational plan is not operating at fullest because we are limited by $1M initial. Development Plan
Business development forms one of the key objectives of an organization. The Children World tends to expand its market coverage and improve its services from time to time. In five years time, the organization looks forward to opening about three branches in various corners of Toronto City.
Currently the facility is leased this needed less capital compared to purchase that was beyond our startup capital. The initial capital employed is $1 million. This is divided as follows: leasing and equipping the facility, insurance, licensing repair, customization bill, staff salaries and meeting of miscellaneous costs. The capital is also be used to publicize the operations of the facility. Purchase of a vehicle to transport the children to and fro will be dependent on the progress made.
Risk and Mitigation Factors
Apart from fire which is known to be risk to any operational business our major risk is the children we are entrusted to care by parents. We understand the recreational facility we have employed to refresh children may cause injuries to kids. For mitigation purpose no kid will use equipment without the tutor around. First, children are likely to be injured while undertaking various games. These children may sometimes require to be treated at the expense of the organization. The organization may be held responsible for such injuries, which are likely to be costly to compensate children suffering from the condition. The basic strategy is to employ highly qualified individuals to serve in the facility. Close supervision and monitoring of children in the recreational and sporting are major mitigation factors employed. Insurance will be employed in future.
Financial Plan
Revenue
Cost Assumptions
Startup Cost
projected income statement
Projected Balance Sheet
Projected Cash Flow
