sample business plan for children's home

A Sample Children’s Home Business Plan Template for UK

By: Author Tony Martins Ajaero

A children’s home is a large house where children and young people live together as a group, with professional staff to look after them. Children’s homes aim to meet the needs of children who can’t live with their own families. When a child cannot live with their family or stay with foster caregivers, they may go to a children’s home.

A children’s home is a place for children that provides food, shelter, and space for play and leisure in a caring environment. Children’s homes look after children with different needs.

Available statistics show that in the United Kingdom, there were 2,462 children’s homes as of 31 March 2021, an 11% increase (251 homes) from the previous year (2,211). These 2,462 homes were registered for 9,699 places, an 8% increase from 8,996 on 31 March 2020.

Steps on How to Write a Sample Children’s Home Business Plan

Executive summary.

Themes Valley® Children’s Home will be based in Wigan, Lancashire and the organization will be committed to serving a small number of children who will reside in a family-like setting with trained staff and effective programs.

We will house between 10 to 20 children per time in a family setting that offers the potential for them to enjoy full use of community resources, including health care, education, and recreational opportunities. Wayne Philips is the founder and CEO of Themes Valley® Children’s Home.

Company Profile

A. our products and services.

Themes Valley® Children’s Home will provide a wide range of services that revolve around 24-hour supervision, and support to troubled teens in a home-like setting and we will also provide psychiatric services to emotionally disturbed children.

Our products and services are designed to help provide residential treatment for youth for some time, and then facilitate the return of the youth to a family environment (until foster families are found for them), or properly reintegrate them into the community if they are old enough to live on their own.

b. Nature of the Business

Our children’s home will operate as a charity organization, we will source for finance from donor organizations and relevant government agencies.

c. The Industry

Themes Valley® Children’s Home will operate under the orphanages and children’s homes industry.

d. Mission Statement

Our mission is to provide a safe children’s home that will also provide specialized treatment to children subjected to abuse, and also to cater to children with emotional, intellectual, physical, medical, and/or behavioral difficulties.

e. Vision Statement

Our vision of to become the number one children’s home in Wigan, Lancashire.

f. Our Tagline (Slogan)

Themes Valley® Children’s Home – The Family That Is There for You!

g. Legal Structure of the Business 

Themes Valley® Children’s Home will be formed as a charity organization and we will operate as a charitable incorporated organization (CIO).

h. Our Organizational Structure

• Head of Children’s home (President)
• House Manager (Administrator)
• Nurse’s Aides
• Teachers, Caregivers / Rehab Counselors
• Account Officer
• Front Desk Officer
• Security Guards

i. Ownership / Shareholder Structure and Board Members

• Wayne Philips (Owner and Chairman/Chief Executive Officer) 56 Percent Shares
• Andrew Young (Board Member) 14 Percent Shares
• Rowe Anthony (Board Member) 10 Percent Shares
• John McNamara (Board Member) 10 Percent Shares
• Helen Gordon (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal Location for a children’s home facility
• Highly Experienced and Qualified Employees and Management
• Access to Pool of Donor Organizations
• Highly Secured and Clean Facility
• Highly structured programs that help teens live comfortably as though they are with their families.

b. Weakness

• Budget Limitations
• Lack of full-fledged educational structure
• Inability to initially manage the organization without the support of donations and grants
• Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• The demand from individuals aged 15 and under is expected to remain high because the majority of orphanages and children’s homes cater to children in this age bracket regardless of external circumstances
• Government funding and private donations are anticipated to increase for support for children’s homes.
• The orphanages and children’s homes industry is projected to reverse its decline trend and increase in the coming years.
• A pool of finance from donor organizations, individuals, and relevant government agencies.

i. How Big is the Industry?

The orphanages and children’s home industry is not a big industry in the United Kingdom.

ii. Is the Industry Growing or Declining?

Available statistics point to the fact that the industry is presently growing because there were 2,462 children’s homes as of 31 March 2021, an 11% increase (251 homes) from the previous year (2,211). These 2,462 homes were registered for 9,699 places, an 8% increase from 8,996 on 31 March 2020.

iii. What are the Future Trends in the Industry

The orphanages and children’s home industry is changing, and players in the industry are improvising. No doubt, specialized treatment, technology, and social media will change the landscape of the orphanages and children’s home industry going forward.

iv. Are There Existing Niches in the Industry?

No, there are no niche ideas in the orphanages and children’s home industry.

v. Can You Sell a Franchise of your Business in the Future?

Themes Valley® Children’s Home has plans to sell franchises in the nearest future and we will target major cities with high children abandonment rates in the United Kingdom.

• Lack of support from stakeholders and the government
• Unfavorable government policy and regulations.
• Community resistance
• Liability problems
• Reduction in abusive homes and teenage pregnancies

i. Who are the Major Competitors?

• Fraserburgh Children’s Home.
• Brucefield Children’s Home.
• Neil Street Children’s Home.
• Kincorth Children’s Home.
• Roseberry Specialist Care Centres.
• Swann Lane Children’s Home
• Cameron House Children’s Home
• Crosslands Children’s Home

ii. Is There a Franchise for Children’s home? 

No, there is no known children’s home franchise currently.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Children’s home?

Yes, there are policies, regulations, or zoning laws for Children’s homes. The Care Standards Act 2000 says that ‘an establishment is a children’s home if it provides care and accommodation wholly or mainly for children. Children are defined as people who are under 18.

Young people aged 18 and over may also stay in a children’s home, but they must be in a minority. If you want to register a children’s home/school, you must first contact the DfE for secure children’s homes or the Ministry of Justice (MoJ) for secure schools.

This is to get the Secretary of State’s approval under The Children (Secure Accommodation) Regulations 1991. If you are planning a new building or to carry out any refurbishment or building works, you must share your plans with the DfE/MoJ. They will get the views of specialist architectural advisers before you carry out any works.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target markets are children and adolescents between the ages of 10 and 17 years.

ii. Level of Educational

We don’t have any restriction on the level of education of those we will accommodate in our children’s homes.

iii. Income Level

We don’t have any cap on the income level of those who we will accommodate in our children’s homes. Besides, most people who are admitted to children’s homes have no source of income.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we will welcome into our children’s homes.

v. Language

There is no restriction when it comes to the language spoken by the people we will welcome in our children’s home but we will prefer people that speak English.

vi. Geographical Location

Anybody from any geographical location will be welcomed in our children’s home.

vii. Lifestyle

Themes Valley® Children’s Home will not restrict any child from accessing our facility and services based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Host Themed Events That Catch Attention.
• Tap Into Text Marketing.
• Use FOMO to Run Photo Promotions.
• Share Your Events in Local Groups and Pages.
• Turn our Social Media Channels Into a Resource
• Develop Your Business Directory Profiles
• Build Relationships With Other Nonprofits and related organizations in our Area

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our teens (housemates).
• Create an efficient content marketing strategy.
• Create a community for our donors and volunteers.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Themes Valley® Children’s Home will make sure it covers upkeep, medications, premium, economy or value, and full rehab package for each child. In all our pricing strategy will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, religious organizations, nonprofit organizations, and charity to help refer abused and abandoned children to us.

b. Inventory Strategy

The fact that we will need educational materials, toiletries, medications, and foodstuffs per time means that Themes Valley® Children’s Home will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Themes Valley® Children’s Home will make available to her donors and contributors;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

At Themes Valley® Children’s Home, we offer services, and the nature of services we offer does not accommodate return policy, incentives, but we will guarantee our housemates on the transformation that will occur in their lives if they follow our program.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent service to all our housemates, it will help us to first understand their needs, experiences, and pain points. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting grants and fundraising strategies that will enable the firm to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at a Children’s home?

• The facility is open for the day
• The facility is cleaned and prepared for the day’s activities
• Housemates are welcomed
• Housemates are provided with educational programs that will help them to properly integrate back into society. They are engaged in an active rehabilitation treatment program run throughout the day, where the residents receive intensive individual and group counseling.
• House chores are carried out at different intervals during the day
• The facility is closed for the day and housemates go back to their rooms to get it arranged and then go to bed.

b. Production Process

There is no production process when it comes to children’s homes.

c. Service Procedure

There is no service procedure when it comes to a children’s home.

d. The Supply Chain

Themes Valley® Children’s Home will rely on social workers, counselors, religious organizations, and government agencies in our city to refer children to us. So also, we have been able to establish business relationships with wholesale supplies of educational materials, toiletries, medications, foodstuffs et al.

e. Sources of Income

Themes Valley® Children’s Home make money from;

• Contributions for partners and donors
• Grants from government agencies and charity organizations
• Community support.

7. Financial Plan

A. amount needed to start your children’s home.

Themes Valley® Children’s Home would need an estimate of £150,000 to successfully set up our children’s home in the United Kingdom. Please note that this amount includes the salaries of our staff for the first month of operation.

b. What are the Cost Involved?

• Business Registration Fees – £400
• Legal expenses for obtaining licenses and permits – £700.
• Marketing, Branding, and Promotions – £1,000.
• Business Consultant Fee – £1,500.
• Insurance – £1,400.
• Rent/Lease – £50,000.
• Other start-up expenses include commercial satellite TV subscriptions, stationery (£500), and phone and utility deposits (£2,800).
• Operational Cost (salaries of employees, payments of bills et al) -£40,000
• start-up inventory – £7,000
• Store Equipment (cash register, security, ventilation, signage) – £2,750
• Furnishing and Equipping -£30,000
• Website: £600
• Opening party: £3,000
• Miscellaneous: £2,000

c. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Themes Valley® Children’s Home will not build a new facility for our children’s home; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses of Running a Children’s home?

• Cost of stocking up supplies such as educational materials, medications, toiletries, beddings et al
• Cost of food supplies and ingredients
• Utility bills (gas, internet, phone bills, signage and sewage et al)
• Salaries of employees

e. What is the Average Salary of your Staff?

• Head of Children’s home (President) – £40,000 Per Annum
• House Manager (Administrator) – £32,034 Per Annum
• Nurse’s Aides – £29,660 Per Annum
• Teachers, Caregivers / Rehab Counselors – ££28,878 Per Annum
• Fundraiser – ££26,500 Per Annum and based on target
• Account Officer – £25,000 Per Annum
• Front Desk Officer – £24,800 Per Annum
• Cleaners – £20,000 Per Annum
• Security Guard – £18,000 Per Annum

f. How Do You Get Funding to Start a Children’s home

• Raising money from personal savings and sale of personal stocks and properties
• Applying for a loan from your bank/banks
• Applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from our family members and friends.

Financial Projection

A. how much should you charge for your service.

It is important to note that we will make our facility free of charge since we hope to attract enough grants and funds from donors.

b. Sales Forecast?

• First Fiscal Year (FY1): £150,000
• Second Fiscal Year (FY2): £250,000
• Third Fiscal Year (FY3): £350,000

c. Estimated Profit You Will Make a Year?

Themes Valley® Children’s Home will operate as a nonprofit organization.

d. Profit Margin of a Children’s home 

Themes Valley® Children’s Home is designed not to make profits hence we don’t have a profit margin for our services.

Growth Plan

A. how do you intend to grow and expand .

Themes Valley® Children’s Home will grow our children’s home by first opening outlets in key cities in the United Kingdom within the first five years of establishing the organization and then we will start selling franchises from the sixth year.

b. Where Do You Intend to Expand to and Why?

Themes Valley® Children’s Home plans to expand first to Cleveland, in North East England, and then to Shrewsbury, Shropshire, Tyldesley, Manchester, Bradford, West Yorkshire, and Crewe, Cheshire.

We intend to expand to these locations because available statistics show that the cities listed above have the highest juvenile delinquencies in the United Kingdom. As a matter of fact, with a crime rate of 109.7 per 1,000 people, Cleveland had the highest crime rate of all the police force areas in England and Wales in 2020/21.

The founder of Themes Valley® Children’s Home plans to exit the business via merger and acquisition. We intend to merge with an international charity organization that has a world spread so that the organization can be placed under a trusted hand when the founder retires.

The goal of combining two or more charitable organizations that are into children’s home on a global scale is to try and achieve synergy – where the whole (the new organization) is greater than the sum of its parts (the former two separate entities) and with the well-structured management team and board of trustees.

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CHILDREN’S HOME BUSINESS PLAN: Guide to Starting a Children’s Home Business Plan

• by Folakemi Adegbaju
• August 14, 2023
• No comments
• 7 minute read

Table of Contents Hide

What is a children’s home, #1. create a business plan, #2. registration with the regulator (ofsted), #3. property, #4. staffing matters in children’s home, #5. market survey, #6. funding, #7. advertise your children’s home, who is children’s home created for, #1. executive summary, #2. market analysis, #3. detail your marketing plan, #4. outline your organization and management, #5. milestones, final thoughts, how long does it take to register a children's home, what do ofsted look for in children's homes.

Starting a children’s home can appear like an appealing option because the monetary obstacles are low and the financial rewards can be considerable. If you have always cherished assisting those in need and have a tendency to reach out to those in need, you may agree that orphans are among those who require the most love and encouragement. Reaching out to folks in need of love and care is one thing; being able to act to improve their lives is quite another. A good children’s home business plan, which is also known as a residential children’s home plan, is necessary when setting up a children’s home. You must have the necessary policies and procedures in place, as well as business planning, risk assessments, and qualified and competent personnel.

This is for you if you’re having trouble with the process of starting a children’s home business plan.

Get started today!

People under the age of 18 are considered children. Children’s homes, also known as residential children’s homes, are a place to stay when foster care is not ideal for you or your needs. One possibility is to open a children’s home in a separate structure. However, it necessitates a significant amount of labor.

Children’s homes have higher administrative and management costs than other forms of child care enterprises, in addition to more severe licensing requirements. One of the most exciting things you can do is learn how to open a children’s home and take your children’s home from concept to reality. However, it can be a long and tough route with many barriers and diversions.

How to Start a Children’s Home

The following are steps you need to take when starting a children’s home:

Your ideas are worthless unless you have a solid plan to back them up. A business plan can be written in two ways: as a one-of-a-kind and simple piece for your own use, or as a foundational and financially sound document to attract investors. However, when it comes to investing, no one can do it without the assistance of an experienced business plan writer . Keep in mind that the intention of a residential children’s home business plan is to filter out the most important aspects of your care business. Whatever route you take, there are three things that you must include in your residential children’s home business plan.

It is critical that before opening a children’s home, you need to follow the regulations as the administrator. Children’s home is highly regulated, and you must meet the specified requirements in order to operate. You need to understand that the average duration from application to registration is currently 17 weeks.

The following are the steps to take when registering :

• Fill out an SC1 and attach all of the required documents to it.
• OFSTED will conduct additional checks and may request additional information. Examining your DBS, GP health evaluation, and sending out requests to your referees are all part of this process.
• OFSTED will interview you, your source, and your management in order to determine your appropriateness and whether or not the registration conditions have been completed.
• They will inspect the provision twice a year once you register. A poor inspection report can affect the likelihood of receiving placement authority recommendations.

Due care and effort must be exercised before investing in a new property for your children’s home, establishing that they need such a service in the area. Most local governments have a preferred supplier list that they utilize to award contracts. Because you may have a children’s home and not be able to easily access bidders in your area, try to check the location before starting your children’s home in such an area.

You’ll need to think about the type of property you’ll need, where it’ll go (from the perspective of child safety and taking into account neighbors ), and whether or not you’ll need planning approval. You won’t be able to register with OFSTED unless you obtain the necessary permissions for your property, which you must document.

However, planning regulations are always changing, so we always recommend hiring a planning consultant to verify you have the proper rights to operate as a children’s home.

The type of property required, whether you will rent or buy, where it is located both for safety reasons and in relation to neighbors, and whether you will need planning approval, will be the first things to consider.

Anyone interested in opening a children’s home should be aware that it is a highly regulated industry that requires qualified staff and a registered manager. A responsible individual with prior experience is also essential. You’ll have to show OFSTED that you have enough employees with the necessary expertise and credentials to care for children. There will never be an anticipation of a complete complement of personnel from the outset, but enough to open the home and accept your first child. However, the position of the registered manager is crucial, and it is imperative that they have the necessary qualifications, expertise, and skills. As part of the OFSTED registration process, the registered management will be interrogated.

Anyone unfamiliar with a children’s home should be aware of current regulatory and market situations, as well as have thoroughly examined the needs in the targeted geographic location.

The time it takes to start a children’s home is long, and you’ll have to pay a lot of money to get started. Make sure you have enough money to last you until you can accept children. Due to the extensive regulation process, it takes longer to open a children’s home than it does to open other types of care enterprises. As a result, your startup costs are likely to be higher, and you’ll need enough cash to get to the point where you can begin taking children.

However, it’s critical to have a solid and realistic business plan and financial forecast, and OFSTED will most likely examine it closely. To lend credibility to your plan or forecast, it’s a good idea to hire an accountant with professional experience. Working from a freehold property makes the possibility more appealing to lenders and boosts the likelihood of obtaining funds.

Remember that if you want to build a business, you’ll need to teach people about your children’s home. You might distribute fliers and pamphlets to inform people about your it and its location. However, you can also publicize the children’s home through social media, TV, or radio so that people can call you if they need to visit.

For a variety of reasons, children and young people must live away from their families. Here are a few of them:

• For children and young people who are disabled, including those who have physical or learning difficulties.
• Children whose parents are unwell
• Children and adolescents with emotional and/or behavioral issues
• For children and adolescents who have psychological problems.
• For children and young people who are drug or alcohol addicts,
• Those who have committed a crime or those who require additional protection
• Those that are refuges

Children’s Home Business Plan

Writing a business plan for a children’s home might have a variety of reasons. To begin with, a business plan can assist you in organizing your ideas for starting a business by specifying the actions you’ll need to take. After you’ve opened your children’s home, a business plan will help you keep on track as you work toward your objectives. However, a children’s home business plan, on the other hand, isn’t put in law, update it as your children’s home business grows and your goals start changing.

The following are guides to starting a children’s home business plan:

This is in the form of goals and a vision or mission statement. Make a high-level outline of your residential children’s home business plan. Include why you think launching a children’s home business is a smart option in a quick explanation of your aims. Include a summary of your own qualifications and experience, as well as your staffing standards.

What’s the problem your children’s home solves for people? What’s the problem you solve for your customers? Why would they choose you over other alternatives?

You must include an examination of the children’s home industry. Make a list of children’s home trends and forecast revenue for the children’s home industry. Include information on your target market’s needs and how you can meet those needs. Include details on how you want to position your children’s home company for success in the face of stiff competition.

What will you do to promote your children’s home business? If you intend to buy advertising, make a list of the types of ads you intend to run. Keep in mind that different target markets may require different marketing strategies to get your service in front of them.

 Plan how you will communicate your children’s home business benefits to your target market.

Describe the legal structure that you intend to use for your children’s home business. You can form a sole proprietorship if you will be the sole owner of the children’s home business. You will, however, need to form a partnership if you have a partner.

Add details about how you run your firm. Include information about how to hire and train personnel. Cover the legal needs of a children’s home business, such as site safety, emergency care, personnel credentials, and other local laws.

What are the most important tasks you must complete in order to get your business up and running? This will assist you in staying on track and achieving your objectives. Assign targets to your team members so that you have genuine duty and commitment.

The most important aspect of a children’s home business plan is to always review and adjust it when circumstances change. However, it’s possible that your business objectives need to be updated, or that your expense budget needs to be amended. 

At the moment, it takes an average of 17 weeks to complete the procedure from accepting your application to registering your children’s home. 

OFSTED really want proof that employees are familiar with the children, including things they like and dislike, as well as their anxieties and emotions. Workers who are committed to each child’s personal growth and well-being. Your workers must have skills to support the learning process of the children.

To qualify for this position, you do not need any qualifications or training.  For a residential children’s home, your life experience, character, and personality are all vital attributes to bring into the home.

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5 YEAR BUSINESS PLAN: Steps for Writing a 5 Year Business Plan

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The Daycare Business Plan Blueprint (Examples + Template)

April 14, 2022

Adam Hoeksema

Starting a daycare business can be a daunting task. There are so many things to think about and plan for. You need to find the perfect location, get the right licenses and permits, hire qualified staff, and, most importantly, create a daycare business plan. 

Creating a daycare business plan is one of the most important steps in starting your business. A well-thought-out business plan will help you get funding, attract investors, and operate your business effectively. 

The bad news is that there is a lot of advice out there on writing a business plan. With so much information and tons of daycare business plan examples to choose from, it can be overwhelming to know where to start. 

The good news is, we've got you covered. In this article, we'll give you a comprehensive guide on how to write a daycare business plan. We will also provide some examples and a free daycare business plan template to get you started. 

But First...Is a Daycare a Good Business to Start? 

Before we talk about how to create a daycare business plan, let's first answer the question: is starting a daycare a good business to get into? 

The answer is a resounding yes! The daycare industry is growing rapidly. It is one of the few businesses that are not only recession-proof but also thrives in uncertain economic times. 

According to the National Association of Child Care Resource & Referral Agencies (NACCRRA), the demand for child care services has increased by 26% over the last decade. This demand is only expected to grow in the coming years. 

When it comes to profitability, the daycare industry is very attractive. According to IBISWorld , the average profit margin for a daycare business is around 15%. That's higher than the average for most other industries! 

If you're thinking about starting a daycare business, know that you are getting into a very profitable and in-demand industry. Now let's talk about how to write a daycare business plan that will help you start and grow your business successfully.

How to Create a Daycare Business Plan 

A daycare business plan is as simple as a word document with the following sections:

• Business Description
• Market Analysis

Business Model

• Location and Facility
• Marketing Plan
• Financial Plan

Executive Summary

This article will provide context of what to include in each section of your daycare business plan. As you work on writing your business plan, you will want to grab our daycare financial projection template as well in order to complete the financial plan section.

Your daycare business plan should be an elevator pitch in itself. It should be attractive to potential partners and investors. Basically, it should give them a clear idea of your business, where it is located, what services you offer, who your target market is, and how you plan to make money. 

Creating a daycare business plan doesn't have to be complicated. In fact, the cheapest and easiest approach is to simply start with a blank word document and work through each of the above sections, it can be pretty easy. Here is a step-by-step guide on how to create a daycare business plan: 

Create a Compelling Business Description

Your daycare business's unique selling point (USP) should be the first thing you include in your business plan. What is it that makes your daycare center different from all the others? 

This description should be the foundation of your marketing efforts as well.

There are a few questions you should answer in your company description. They include:

What's your Curriculum Based On?

Potential investors, partners, and even customers will be interested in knowing what your curriculum is based on. This will help them understand the environment children will be in a while under your care. 

When describing your curriculum, make sure to include:

• What age ranges do you cater for?
• The type of care you offer (full-time, part-time, drop-in) 
• Your educational philosophy 
• The activities and programs you offer 

For example, if your daycare is unique by offering a Montessori curriculum, you will want to highlight that.  In fact, you can learn more about how to start a Montessori program here . 

How Big is Your Facility? 

The size of your facility will say a lot about the type of operation you're running. Are you a small, home-based daycare or a large center with multiple classrooms? 

This section of your business plan may include: 

• A floor plan of your facility 
• The capacity of your facility 
• The number of employees you have 
• Type of equipment and furniture you have 

Who Is Your Target Market? 

You can't market to everyone, so you must identify your target market. This will help you focus your marketing efforts and ensure that you're reaching the right people. 

Below is a daycare business plan example that shows how your business description should be:

“ABC Daycare is a small, home-based daycare located in San Francisco, CA. We cater to children aged 0-12 years old and offer full-time, part-time, and drop-in care. 

Our curriculum is based on the Reggio Emilia approach, emphasizing hands-on learning and collaboration. Activities and programs include arts and crafts, music, and outdoor play. 

Our facility can accommodate up to 12 children at a time. We have a staff of four employees who are all CPR and First Aid certified. 

Our target market is working parents in the city who need quality child care but can't afford the rates of larger daycare centers.  We've created an affordable subscription-based pricing model for our target market to fulfill the demand. We generate revenue through monthly subscriptions and have low operating costs due to our small size. 

Our suppliers are local businesses that provide us with food, toys, and other supplies.” 

Do a Thorough Market Analysis

After writing a compelling description of your business, you need to do a thorough marketing analysis. This analysis will help you determine your target market, what type of advertising and promotion will work best, and how to price your services. 

You should also research the competition and see what they are doing right and wrong. This information will be invaluable as you create your daycare business plan.

Keep these things in mind when doing a market analysis:

The Size of Your Market

This is determined by the number of potential customers in your area who need or want your services. 

For example, if you live in a small town with only a few thousand people, there may not be enough demand to support a large daycare facility. 

On the other hand, if you live in a city with hundreds of thousands of people, there may be room for multiple daycare facilities. 

Your target market is the segment of the population that is most likely to use your services. This includes factors like age, income, education, and location. 

After you've identified your target market, you need to show how you plan on fulfilling the demand. This is where your business model comes in. 

Your business model is a detailed description of how your daycare will operate daily. It should include: 

• How do you plan on acquiring customers? 
• What are your pricing strategies? 
• How will you generate revenue? 
• What are your operating costs? 
• Who are your suppliers? 

Your business model should be detailed and easy to understand. It should also be realistic and achievable. 

Here is a daycare business plan example of a business model for a small daycare center: 

“The daycare will be open Monday through Friday from six in the morning to six at night. We will offer care for children ages six weeks to twelve years old. 

Our rates will be $50 per week for one child and $40 per week for each additional child from the same family. We will offer a discount of $20 per week for families who enroll their children for an entire year. 

We will generate revenue by charging weekly rates for our services. Our operating costs will include rent, utilities, supplies, and salaries for our employees. Also, we will acquire customers through online advertising and word-of-mouth.” 

As you can see, a business model is a detailed description of how your business will operate. It's essential to have one in place before promoting and selling your services. 

One thing you should not forget to include in your daycare business plan is the location of your business and your rental agreement. If you are renting a space, including the terms of your agreement and how long you have the space. If you are purchasing a property, include information on the property, such as square footage and any special features that will help your business stand out. 

This daycare business plan example shows you how to include this vital information: 

“The daycare will be located at 123 Main Street in a commercial space currently leased by the owner. The lease agreement is for three years with an option to renew for an additional three years. The monthly rent is $2000, and the security deposit is $3000. 

The daycare will have exclusive use of the main floor, including a large open play area, a small kitchen, two bathrooms, and four classrooms. The daycare will also have access to the outdoor playground.

80% of our space will be used for childcare, with the other 20% used for our administrative offices and staff lounge. 

We have chosen this location because it is close to several residential neighborhoods and has easy access to public transportation. The space is also large enough to accommodate our future growth.” 

There are many daycare business plan templates you can use to help you get started. This is a basic outline of what should be included.

Daycare Marketing Plan

Most daycare business plan templates will include a section for your marketing plan. Most people overlook the marketing aspect of their business, but it is one of the most important pieces of your puzzle. 

In your business plan, you need to outline your target market, your marketing strategies, and how you plan on executing those strategies. 

You also need to set aside a budget for your marketing efforts. Many people make the mistake of thinking that they don't need to spend money on marketing, but that couldn't be further from the truth. 

The following daycare business plan example shows you how you should describe your marketing efforts:

"Our target market is working for families with children between six weeks and five years old. We will reach our target market through online and offline marketing efforts. 

Some of the offline marketing strategies we will use include print advertising, flyers, and word-of-mouth referrals. We will use a mix of SEO, content marketing, and social media for online marketing. 

We have set aside a budget of $500 per month for our marketing efforts."

As you can see from the example above, your marketing plan should be clear, concise, and to the point. Don't forget to include a budget!

Daycare Financial Plan

Your business plan should include a financial plan section. This is where you'll lay out how much money you need to start or grow your business. Be specific and include dollar amounts. If you're seeking a loan, including information on how much you're requesting and how you'll use the funds.

You should also include a detailed budget in your business plan. Your budget should include all of your projected income and expenses for at least the first year of operation. Creating a budget will help you get a clear picture of what it will cost to start and operate your business.

This section should include projected costs for:

• Rent or mortgage payments
• Advertising and marketing
• Operating expenses such as utilities, supplies, and more. 

Startup costs are another vital item to include in your business plan. This is the money you need to purchase equipment, furniture, or any other items to get your business up and running.

If you plan to secure a loan, your lender will want to see a detailed business plan with information on how you plan to use the loan funds. Ensure you include this information in your business plan to increase your chances of securing funding.

If you're seeking funding from investors, you'll need to include information on how they will be compensated. This is typically done through equity, a percentage ownership stake in your business. 

For example, if you seek $100,000 in funding and offer a 20% equity stake, the investor will own 20% of your business. 

Make sure you use a daycare business plan template that includes a section on funding to ensure you include all the necessary information. If you’re planning to get a loan or seek investment, you’re going to need full financial projections. Our daycare financial model will provide up to 5 years of projected income statements, cash flow and balance sheet forecasts.

Next I want to answer some key financial questions for you as you consider how to forecast your daycare financials. I am going to hit on:

• Daycare Startup Costs
• Daycare Revenue 
• Daycare Facility Operating Expenses
• Daycare Profitability

Let’s dive into some key questions. 

How much does it cost to start a daycare? 

It costs between $10,000 and $50,000 to start an in-home daycare business according to Bizfluent . 

It costs between $59,000 and $3 million dollars to start a daycare facility according to Bizfluent . 

So obviously this is a huge range in startup costs.  The main thing that will determine your startup costs is your daycare facility.  Depending on how large your daycare is, whether you are buying, building, or leasing the space, and how much renovation needs to be done, your startup costs can vary drastically.  

Some tips to help you estimate a cost of a daycare facility:

• A daycare facility should have 35 square feet of open floor space indoors per child. 
• So if you wanted a facility that could care for 100 children you would need 3,500 square feet of indoor space for children, plus additional space for offices, kitchen, bathrooms, etc.  Let’s assume that you would need at least 5,000 square feet of space for a daycare facility that served 100 children.  
• A daycare center would cost at least $295 per square foot to construct in the U.S. based on data from Levelset . 
• Constructing a new 5,000 square foot daycare center would likely cost at least $1,475,000 based on $295 per square foot.  
• Now you might not be constructing new, rather you might rent an existing facility which could require renovations.  You will need to get a specific quote for the specific renovations that you need for your space. 

How much revenue can a daycare business make?

A daycare facility can generate $17,680 in revenue per year per child according to Zippia .  

A daycare business with 100 children can generate over $1.75 million per year in annual revenue based on our average revenue per child of $17,680. 

How much does daycare cost?

The average cost of daycare is $17,680 per year, per child in the U.S. according to Zippia . 

This means that the average monthly cost of daycare in the U.S. is roughly $1,475.

What is the typical child to staff ratio for a daycare? 

The typical child to staff ratios for a daycare are:

• 1 adult staff for every 4 infants (age 0 to 12 months)
• 1 adult staff for every 6 toddlers (age 1 to 3 years)
• 1 adult staff for every 10 pre schoolers (age 3 to 5 years)
• 1 adult staff for every 12 school aged children (5+ years old)

Source - Childcare.gov

These ratios will help you estimate how many staff members you will need.  Our financial projection template makes this easy.  Just enter in your ratios and the number of children you expect to have in each age group and the model will automatically calculate the number of staff required to maintain your ratios.  See the input daycare staffing table below:

What are the typical operating costs for a daycare? 

Your largest operating expense for a daycare facility is likely to be your rent. 

It should cost between $20 and $30 per square foot to rent a daycare center space based on available spaces on Loopnet . 

Other operating costs for a daycare center include:

You can see how you can enter in your operating costs into our financial model below:

How much profit can a daycare make? 

The average daycare profit margin is 6.5% according to Daycare Business Boss . 

Once you complete your projections you will want to take a look at our At a Glance tab to make sure that your projected profit margins aren’t way out of line with the industry norms.  You can find projected profit margins for your daycare below:

This is an important aspect that you may not find in most daycare business plan templates, but it's still essential. An appendix includes any additional information to help you understand your business plan. This might include things like your:

• Business licenses 
• Insurance policy 
• Lease agreement 
• Sample contracts 
• Staff bios 

This section adds credibility to your daycare business plan and shows that you've done your homework. Including all of the necessary details in your appendix will give investors peace of mind and show that you're serious about starting a daycare center.

An executive summary is a brief overview of your business plan and is often considered the most important section. It should be two pages long, with a clear description of your business, your goals, and why you will achieve them.

There are several key elements to include in your executive summary:

• Business Name: This is the name you have chosen for your business.
• Location: Include the city, state, and country where your business will be located.
• Business description: Describe what type of business you will be operating.
• Target market : This is the group of people you will be targeting as customers.
• Competition: Who are your competitors, and how will you compete with them?
• Product or service : What product or service will you be offering?
• Sales and marketing: How will you generate sales?
• Financials: Include a five-year income statement, balance sheet, and cash flow statement.
• Management team: Introduce your management team and their experience.
• Exit strategy : This is the plan for how you will eventually sell or otherwise exit the business in case you decide to retire or move on to other projects.

The executive summary is the most crucial section of your business plan because it gives investors and lenders a quick overview of your company and its prospects. Be sure to include all of the key elements listed above, and keep it under two pages in length.

What Are The Benefits of Creating a Daycare Business Plan?

Research shows that a business plan helps business owners make better decisions, turn abstract goals into tangible objectives, and track progress over time. But what does this mean for those who want to open a daycare? 

Creating a business plan forces you to think through every step of starting your company. It's a valuable exercise that can save you time and money in the long run. Even if you don't end up following your business plan to a tee, the process of writing it will help you better understand your business and what needs to be done to make it successful. 

There are many benefits to creating a daycare business plan, including: 

Gives You a Roadmap to Follow

As with any journey, it's always helpful to have a map. A business plan is that map for your daycare business. It will give you a clear idea of where you want to go and how you can get there. 

Helps You Secure Funding

A business plan is essential if you're looking for investors or loans. It will show potential lenders and investors that you've put thought into your business and have a solid strategy for making it successful. 

Ensures Your Daycare Business is Feasible

When you're starting a business, it's easy to get caught up in the excitement and overlook potential problems. A business plan forces you to take a step back and assess whether your business is truly viable. It also helps you identify any areas where additional research is needed. 

Final Thoughts

A daycare business plan is a valuable tool to help you make your business successful. 

It is worth noting that your business plan is not a one-time exercise but should be updated regularly as your business grows and changes. This document is meant to be a living document that evolves as your business does. 

If you're unsure where to start, there are plenty of resources available to help you, including daycare business plan examples online, books, and daycare business plan templates. 

You can also use our daycare projection template to get your financial plan ironed out and ready for your business plan.

The most important thing is just to get started. The sooner you create your business plan, the better prepared you will be for success.

You can get the Daycare Facility financial projection template here!

The template is simple to use and will save you loads of time while still producing professional looking daycare projections. ProjectionHub has helped more than 50,000 businesses create financial projections so you can be confident that you can do it too.

The daycare business projection template includes:

5 Year Daycare Facility Pro Forma Financial Statements

CPA Developed & Completely Customizable

Free Support & Projections Review

Compatible with Google Sheets

Free expert review of your completed projections

The template is easy to use and you do not need to be an excel wizard to fill it out. Editable cells are highlighted in blue, a video guide is included, and our team is available to answer any questions you have.

You can see the complete walkthrough and demonstration of the daycare business forecast template here:

Get the template today for just $79

If you have any questions before purchasing, please feel free to begin a live chat or email us at [email protected]

100% money back guarantee in accordance with our terms and conditions

‍ Photo by Pixabay

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 40,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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5 Key Tips to Make Your Startup Business Plan Shine for an SBA Loan

Learn 5 key tips to make your startup business plan stand out and secure an SBA loan, from demonstrating market potential to creating realistic financial projections.

How to Know if Your Financial Projections are Realistic

It is important for financial projections for a small business or startup to be realistic or else an investor or lender may not take them seriously. More importantly, the founder may make a financial mistake without a reliable plan.

Have some questions? Let us know and we'll be in touch.

Discover the Simple Recipe to Getting Your Children's Home Started in the Quickest Possible Time. 

Watch the video below to see the exact strategy you can use:

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What You Get in Your Start-Up Toolkit

Take the hard work and the guess work out of starting up your children's home or service.

Insider secrets to get you started quickly

Save time trawling the net for the information you need to start your service.

If you have spent hours trawling the internet trying to figure out how to start your service and find the details you need, just to get frustrated and disillusioned before you even get started then this package is for you.

We have put together the essential elements that will help you compile the information and data needed to set-up and get your service registered in one easy to follow package.  Everything from locating your children's home, the fee's to charge and where to find placements are included in your online member's area.

Essential registration document templates 

No need to re-create the wheel we have done it for you.

The essential documents such as your business plan, your 12-month budget, your statement of purpose and the required policies and procedures you need to submit with your registration are included for you.

The document templates cover the elements you will need to submit with your registration and include hints, tips and suggestions on how you should complete them to ensure they are ready for submission to Ofsted.

Step-by-step plans to get your registration complete

Planning is key to your success the included guides contain actions for you to follow.

If you are finding it difficult to know where to start, you will benefit from the implementation and registration plans to give you momentum.  Also, included in each of the guides is an action plan to help you achieve the best results for each essential area.

Additional support is offered via email and easy to follow videos will follow.  You can also give us a call with any questions you might have. 

New Provider, South East England

I just want to say I was a little apprehensive about purchasing this package. I had looked at the website a few times and then finally made the purchase. I must say it has exceeded my expectations. The quality of the templates are great and it is really helpful to have a step by step list in granular detail. I have also felt well supported. I have spoken to Maggie on the phone and she has been great. Thanks again for your support.

Members Area Content

• Essential start-up questions.
• Guide to fee's, commissioning, tenders and placement finding including action plan.
• Guide to locating your home, planning regs, staffing costs and getting established including action plan.
• Service implementation plan.
• Registration checklist planner with links to Ofsted documents.
• Business plan template includes 12 month cash forecast.
• Children's home statement of purpose.
• Children's home locality risk assessment.
• Policies and procedures needed for submission to Ofsted.
• Full annual budget spreadsheet done-for-you.
• Safe recruitment and employing staff checklist.
• Workforce development plan.
• Health and safety risk assessment.
• Quality monitoring reporting documents.
• Preparing for your registration interview registered individual includes essential questions.
• Preparing for your registration  interview registered manager includes essential questions.
• Managers person specification and job interview questions.
• Staff induction pack.
• Additional support and follow up by email and via web.

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How to Write a Business Plan for Daycare and Preschool

• brightwheel
• Running a business

Writing a daycare or preschool business plan is a big task, but due diligence and hard work will help you understand what you’ll need to launch and run a daycare or preschool successfully.

What do daycare investors want?

Your local government will have rules and regulations you’ll need to follow as a small business owner and childcare provider. Start by reviewing the childcare licensing guidelines for your state and city. Once you’re clear on licensing guidelines, you’re ready to start writing your childcare business plan.

The purpose of a business plan is to help secure funding. You’ll likely need financing to launch your preschool or daycare, especially if you want to avoid the monthly repayment of a loan. 

Investors provide businesses with money in exchange for partial ownership. As a result, they expect a larger return on their initial investment. Because many investors work in business, they prefer to invest in an established company.

Most investors look for:

Industry background and experience

Financial performance and promise.

Investors want to make money. Therefore, they are more inclined to work with experienced entrepreneurs and business owners to guarantee a return on their investment. 

This might sound discouraging for those with little experience or without a business management background, but the opportunity doesn’t end there. You could consider bringing on a partner with a business background. Additionally, many investors act as a source of business advice. 

You need to demonstrate that your business will make money. Investors will likely want to see signs of business growth before they give you money. 

Additionally, investors will want to know about your financial stability. Questions an investor might ask are:

• What do you plan to do with the money?
• Has your business been up or down in recent years?
• Is your company losing money? Are there signs of growth for the future?
• How do you plan to repay your investment?

Of course, every investor is different, so they’ll consider various factors. While experience and financial promise are at the top of the list for most investors, they might also look for uniqueness, business readiness, an effective business model, and more.

Writing a daycare business plan

We’ve discussed licensing and investors. Now, you’re ready to begin the framework of your business plan for daycares and preschools. Here’s what you’ll need to get started:

Business description

Needs assessment, insurance policies, operating policies and procedures, marketing strategy.

Start with the basics: what does your daycare do? Detailing the service you’re offering will help you create a clear business plan. Next, you might want to write some goals or even a mission statement outlining your purpose and motivation.

Start by looking at general daycare or preschool industry trends, then narrow your scope to the preschools or daycares in your local area. Next, you’ll need to figure out who your target customers are and confirm that there is a need for a business like yours in your community. 

Are there a lot of young families in your neighborhood? Are you located somewhere convenient for commuting parents? Does your business offer a specific service that your competitors don’t, like early check-in or extended hours? 

Also, check out the competition. Research the existing daycare or preschool options in your community. Look at current preschool or daycare business plan samples. What makes your daycare or preschool unique? 

Developing detailed budgets will help you run your small business. You’ll need to compare your current cash flow and expenditures to determine whether you’ll make a profit.

Build a budget for unexpected costs. For example, how many children do you need to serve to be able to pay your bills and stay afloat? Child Care Aware of America offers some terrific budgeting resources for this process.

Depending on the type and size of your preschool, you’ll need insurance policies of several different types, including liability, property, workers’ compensation, and business insurance. Check the licensing requirements for guidance in building this part of your preschool business plan.

Create a comprehensive handbook for families and staff that includes you center's policies and procedures. For instance, you'll need to develop an emergency plan , daycare sick policy , and other safety protocols according to your local childcare licensing requirements. 

Your staff handbook will be a helpful resource your employees can reference and include all your employment policies including work and pay schedules, benefits, and information about professional growth and development. You can also include information on your center's philosophy and curriculum, classroom procedures, and expectations for working with children and families.

Your marketing strategy is the key to attracting customers. Decide what type of advertising you will use in front of potential customers. For example, list your school in local directories and participate in parenting and kid-friendly community events. Run a social media campaign focusing on your target population.

Another big part of childcare business marketing is differentiating yourself from other preschools. These days adopting daycare software is a surefire way to attract families with young children. A tool like brightwheel's center management feature will streamline your center's admission process, record keeping, and reporting, saving you up to 20 hours per month. 

You can also use brightwheel for recording and tracking daily events and activities, and sending real-time updates to families throughout the day. It also offers secure, digital check-in/check-out and a paperless billing system. This is a great way to keep your families looped in on daily activities and handle all of your administrative tasks in one place.

Your business is ready!

Writing a business plan can be stressful, but it doesn’t have to be. Once you secure the proper licensing, use the information in this article to guide you through creating a solid daycare business plan that drives investors and financing to your business.

These are just the basics to get you started. For further information, the U.S. Small Business Administration’s website has detailed instructions on creating each necessary part of a successful business plan. 

Childcare and Preschool Supply List

A list of everything you need to start an early education program.

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Little Sprouts Learning

Home Daycare Business Plan

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Do you love children? Do you want to do something that really matters? Maybe home daycare for you. Check out this home daycare business plan and see if it’s financially viable. If you want to run a home daycare , start there.

Working from home can be awesome. Being able to stay home with your own children is a blessing too. Being your own boss and setting your own hours and pay are great too. If you love that idea and you are a kind and patient person with lots of empathy for others, home daycare might be a great plan for your life.

For more about how to start a home daycare click here.

For a downloadable printable home daycare business plan worksheet , click here.

Home daycare is going to be growing by leaps and bounds after the year we’ve gone through so far. There is going to be a huge need for daycare since many small businesses folded this year. Home daycare is a special type of business that has fairly low overhead and is customizable to put your own personal spin on what you do.

I don’t agree with most people’s ideas of how to teach kids. I have my own brand of teaching. I march to the beat of my own drum. I’m very passionate about why I choose to teach my kids the way I do and I want to be able to chart my own waters. This isn’t possible with working for someone else.

Giving my kids the very best of me is the number one reason why I love working for myself. I get to study, learn, and do my very best for my families.

Home daycare is fun! There is a lot of hard work, little respect, and lots of messes. But it’s also different every day. You never get bored because you don’t know what you’re going to get. You get to set the tone of your environment. It’s a great place to be.

The first step in starting a home daycare is to find out about how to get licensed of what the rules are for your area. Click on the highlighted text to see more about whether a license is required. Once you determine that, it’s time to do some other research to find out if home daycare is a viable income for your family.

A big part of the cost of providing care will have to do with the regulations you have to follow. Some licenses cost. Some are free. Some states require a substantial expense in getting your home up to code. Some have very few requirements.

Some things you may have to change is fencing, hiring staff, meeting fire regulations, getting medical exams, and acquiring more education, training, or certificates.

Also, consider local zoning laws. Do you rent? Is your landlord okay with a home daycare in their property? Do you own? Is there a homeowner’s association? Do they allow businesses in the neighborhood? It’s important to consider your neighbors for sure.

Daycare business plan

Now that you know if you can open, you need to consider what you can make. Look at existing facilities, homes, and centers in your area. What do they charge? What do they offer? What do you want to offer? Do you plan to have a specialization that you can charge more for?

How many children will you be allowed to keep and of what ages? In Oklahoma, we can keep 7 kids over the age of 2. We can keep 6 kids if 3 are under 2. We can keep 5 if they are all under 2. So, a big determination in how many kids you can keep is what age of children need care in your area and what ages you will enjoy caring for. I LOVE babies, but I don’t love keeping them 10 hours a day. I like to run and play and do activities. I don’t want to hold an infant all day. So, I don’t keep them. For 20 years, I kept all ages from birth to 12, but over the years, I scaled back.

As I got older, it was more difficult to do everything for everyone, so I changed some of my home daycare rules to suit me better at the age I am now. Believe me, home daycare is far easier when you are 24 than when you are 49. I promise!

Now think of your location. Is it a good area that people will be happy to take their kids to? Or will you have a more difficult time getting clients in that area because of some stigma? In my town, there is an east and west side. For some reason, people think the west side is bad. There are good and bad areas on both sides, but home daycares on the west side always struggle. It’s a stigma, not a real problem. But it does affect business.

When doing your research, find out if there are some gaps in care that many people need. Here there is ALWAYS a big need for very young infant care. None of our centers in town take kids under 10 months. And there are always lots of babies being born. If you wanted to open an infant only facility, it would do well.

You could also specialize in early morning or late-night care. What about weekends? Lots of people here work shift work and they need good care at night. Find out who provides what and what people need. You can look on Facebook and find out what people are asking for. You can ask in a community group or a mom group. You can ask the principle and the electuary school what they have heard.

Is afterschool care with transport from the school a huge need? That could be your niche. Think about providing care during all the school breaks but most of the year only doing it for an hour or two after school? There’s always a great need for that. If you like older kids and like helping them with homework, you could be a godsend to many families.

In our state, we have resource and referral agencies that can provide this information to you all in one place. You can ask if you have anything like that when you contact your licensing agency for regulations in the beginning.

Now to make a specific business plan.

Home daycare salary

How many children will you care for? What will be the minimum and maximum age you’ll take? Will you charge a different price for different ages? What time will you be open? Will you provide all meals for children? Will you provide diapers and wipes? Will you need to hire staff to help you? What about an accountant or bookkeeper? Housekeeper? Lawn service? Think about all the expenses you may have because you’ll be busy working with kids so many hours a day.

Next, you need a name and a philosophy. Potential parents will want to know your ideals and what you stand for. What are your beliefs about providing care? Will you be play-based? Montessori? Nature-based? Have a strict school readiness goal?

You’ll also need policies and a contract . This is a super important step in your business plan. You may be tempted to skip it, but don’t. You will regret it.

Next, you’ll need a budget . You can use this printable business plan to record all the information you’ve collected and figure out what your budget might be. You’ll have to consider start-up expenses and must-have items to work. And you’ll also have to consider the price of every day supplies such as food, replacement toys, repairs, paper products, and so on.

There are other expenses or charges you may not think about such as are listed below.

Charges for families:

• Registration fees
• Waitlist fees
• Supply fees
• Curriculum fees

Expenses for you:

• Construction costs
• Software costs
• Training costs
• Bank charges

Then you’ll have to figure out the income you’ll be making. What will you charge per child and how many children? Figure up your potential earnings and add it to the printable business plan to come up with your home daycare salary.

Check out what home daycare essentials you really need here.  

Home daycare insurance

Don’t forget about home daycare insurance. Obviously, you’ll have to have homeowner’s insurance and auto insurance for your vehicles, but did you know that neither of those covers your business?

Many insurance companies won’t offer it, so you’ll have to look around. If you can’t find any, ask around to other home daycare providers and see if any of them have a suggestion.

Lastly, before you can open, you’ll have to find a way to market your home daycare. Check out these advertising ideas to get you started.

Home daycare website

Don’t forget if you want to make a daycare website to advertise and share information with your clients about what’s going on at daycare, you’ll need to figure in the cost of that as well. You can get wonderful website design help and custom made forms from daycare time solutions here. 

Get your home daycare business plan worksheet here.

Get your home daycare menu planning guide here.

Get your home daycare licensing checklist here.

For a planner made JUST for home daycare providers , this jewel will help you get all of your business organized-AND, it’s gorgeous! There are tons of great provider helps on this site. I wish resources like these ladies have were available when I started. There was no help for home daycare providers back then. But don’t forget to always take care of yourself so you can take care of others!

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Children’s Homes

Start-up package, designed by industry and business experts..

Set up your Children service business with seamless processes and systems. Our complete kit gives you the edge and advantage to start it correctly. Do not leave it to chance. We will work with you so that you get it right the first time, and avoid costly trial and error methods.

Setting up a children service requires proper planning. You need to have the appropriate policies and procedure, business plans, Risk Assessment, Qualified and competent staff. 

What’s included in your starter pack

What you have to consider when setting up a residential children’s home include:, why choose us to help you set up your business.

At Ultra Healthcare, we have many years of expertise in Health and Social care business and marketing consulting, partnering with healthcare providers in UK, helping them to set up and develop their businesses, and achieving a great deal of financial return.

We know how expensive and annoying it is to devote time and not get the desired outcomes.

We provide a team of highly skilled and experienced support team.

We know Health and Social Care business in UK, so when you speak to us, we’re well equipped to help you with whatever problem you might have.

Our Regulation 44 (Independent visitor) services supports your home to keep on top of all regulatory requirements.

Our Pre-inspection  Mock Ofsted inspection prepares you for a better outcome.

SAVE MONEY & TIME

We have worked hard over the years to design a product that is time saving and efficient, so that you hit the ground running. You need to focus on what you do best, to deliver a safe, profitable and efficient service.

HIGH SUCCESS RATE

Our support services guide you to success in no time at all. We work with you to make sure you succeed from the beginning.

FASTER BUSINESS GROWTH

Faster growth is assured when you start it right. Your path to profitability will be made easier if you choose to use our systems.

Policies & Procedures

Our  Children’s Policies and Procedures are designed to support you with Ofsted compliance. Easy to customise to meet your unique needs as they are in word format. Our policies are affordable to enable you to set up a successful children’s service.

Ofsted Inspection support

Our pre-inspection Ofsted Mock inspection prepares you to make sure that your service is up to date and compliant with regulations and standards. Mock inspections help you to prepare, achieve and succeed in running an outstanding children’s service.

1:1 Leadership support

The success of any children’s service is determined by efficient support from the Responsible Individual and Registered Manager. We have packages to support development of your leadership and Management skills so that you deliver an outstanding service.

Residential Children Services

Registration with the regulator (ofsted).

It is very important that before operating a children’s home, the provider must make sure they comply with the regulations. Ultra Healthcare will support you from the beginning. Making sure that before you operate a children’s home, all regulatory requirements are met.

Location, Location and more

Before investing into a new property for your children’s home, due care and due diligence must be taken. Making sure that there is a need for such a service in the area. Most Local Authorities operate a preferred supplier’s list  that they use to offer  tenders. We will work with you to make sense of the process and waiting time as you may have a home and not be able to easily access tenders within your locality.

Staffing matters in children's services

As a highly regulated sector, anyone who wishes to open a children’s home must be aware of the need to have qualified staff and a Registered Manager. An experience Responsible Individual is also required. Ultra Healthcare will work with you to identify and recruit talent in your chosen area.

Frequently Asked Questions These are some of the common questions we are usually asked

We cover policies that comply with Ofsted regulation for children.

We  also cover  regulated and unregulated activities within Health & Social Care, for all regulations and compliance. This includes policies and procedures for Domiciliary Care Agency, Supported Living, Semi-independent 16+, Care employment agencies, residential homes and children services. 

Yes we do. We will customise your policies to meet your needs. You will need to give us some information that we will use to customise your policies and procedures. 

We use a secure shared file that can be access by as many staff as you wish. We are also flexible to send them in any way that is convenient to you.

We offer regular update service that covers changes in Compliance, Regulations and Law.

The policies and procedures can only be shared by authorised people including your own staff team. You are not able to share with other providers who have not subscribed to our service. 

Yes we can. 

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Business Plans for Kids

Download the Sample Business Plan for Kids

Business Plan for Kids

Teach your students how to write their own business plan and create a successful business.

More Business Planning Resources

The 4 p’s of marketing.

Learn how to market your business with product, pricing, promoting and placement.

How to be a Pro

Tips on making a sales pitch, interviewing for a job, or meeting a potential customer.

Are you Making a Profit?

We’ll help you find out! Use this worksheet to do the math and put your business on the right track.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Day Care Business Plan

Start your own day care business plan

Safe Kids Child Care

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

There are an increasing amount of families who have become dependent on two incomes, which has created the necessity of the child care industry. Increasing need means that there are more children that are in need of a safe enriching place to go. 

Safe Kids Child Care will succeed by offering its clients’ children a safe and secure care environment, and close personal attention. The goals of the center are dual-sided: to help parents feel good about the care of their children, and to make it a safe, educational, and fun experience for the child. 

Safe Kids Child Care has a focus on meeting the local need for child care services within the 10-mile radius of Lynn. Children are taken in flexibly on either a full-time or part-time basis.

Competition

There are over 300 child care providers in the local area. The larger commercial chain child care centers, such as KinderCare, have a majority of the market share. These larger chains compete well because of a good reputation among the consumer market. Safe Kids Child Care offers a lower staff to child ratio, which is appealing to most parents. Additionally, the company maintains child care fee levels that are 5-10% below the average of that of the large commercial chain child care fees.

 Safe Kids Child Care offers a lower staff to child ratio, which is appealing to most parents. Additionally, the company maintains child care fee levels that are 5-10% below the average of that of the large commercial chain child care fees.

Expectations

Safe Kids is an exciting opportunity that provides safe and secure child care to the Lynn, MA neighborhood. Safe Kids will reach sustainable profitability over the next three years. Through a combination of well-priced services, outstanding customer service, and a well seasoned management team, Safe Kids will quickly gain market share and a reputation as a premier child care provider.

Financial Highlights by Year

Financing needed.

We plan on having $40,000 to start our business. Each owner will contribute $20,000 to our opening costs. 

Problem & Solution

Problem worth solving.

The child care market is quite competitive in the Boston area. There are over 300 different facilities. There are two general types of facilities. The larger style is commercially run, typically a corporate franchise center. These facilities are both regional and national. Currently, the four largest child care facilities in the USA account for 29% of the market. There are also many different smaller locally run and owned faculties. While the largest facilities can host between 20-100 children, the locally run centers typically have a maximum capacity of 20 children.

Target Market

Market size & segments.

Full-Time Working Couples

The company wants to establish a significantly large full-time regular client base in order to establish a healthy, consistent revenue base to ensure stability of the business. Customer relations are extremely important, as it is imperative to keep the parents pleased in order to keep their children in the daycare center.

Part-Time Workers / Drop-Ins

Part-time workers and drop-ins comprise approximately 20% of revenues. While this market is not the primary focus, sufficient flexibility to handle this secondary market is important to producing supplemental revenues.

Current Alternatives

Our advantages.

Child care competitive edge is the facility’s efforts in obtaining all appropriate licensing and certifications. Additionally, thorough pre-hire background screenings are performed on all individuals before hired for employment.

Keys to Success

Keys to success for the company will include:

• Maintaining a reputable and untarnished reputation in the community. 
• Quality care. 
• Competitive pricing. 
• Flexible hours.

Marketing & Sales

Marketing plan.

The differentiating effort will be benchmarked customer service. A customer-centric philosophy will be infused within the entire organization. Safe Kids will spend extra money to attract and train the best employees. This is especially important because it is the employees that interact with both the children and parents and will have the best chance to impress them enough to turn them into a loyal customer as well as to be vocal in telling their friends about their positive child care experience. 

We will have a Social Media Campaign which uses Facebook and Linked in. We will have experts answer child care questions if the public wants. This gives the public confidence that we know what we doing. We will have customer reviews and allow our customers to talk to us. 

Safe Kids Child Care will make a significant profit through the excellent care of children. Even though Safe Kids charges less, the company will see profit within the first year due to beneficial word-of-mouth advertising. The company expects to double its’ clientele every six months, for the first 18 months.

Locations & Facilities

The facility will originally consist of a 1,300 sq. ft. house in a quiet, residential neighborhood. The yard will be fully fenced in, to ensure no one can either come in or wander away. The yard will be furnished with safe, entertaining toys, as well as a sandbox.

Milestones & Metrics

Key metrics.

Our Key Metrics are: 

• Facebook page views, Twitter re-tweets, and new potential clients calling saying that a current client referred them. 
• The number of children we take care of daily 
• The number of children that are signed up for the monthly care 
• The amount of training our staff has to take care of children and keep incidents down to zero. 

Ownership & Structure

This business will start out as a simple proprietorship, owned by its founders. As the operation grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will better suit the future business needs.

Management Team

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

Our key assumptions are: 

• There are children from families where both parents work or need to work. The children need somewhere safe and enriching where they can grow and make friends while their parents get a chance to get back to him.
• Adults sometimes have emergencies and they need to have a place to leave their children when they can’t be with them 
• The community appreciates the it takes a village mentality. They appreciate we have resources and experts that will answer their questions. We assume they will come to us if they need help, we won’t go out of our way to advise. 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Our Start-up Expenses are $3000 including: 

Legal $1,000

Brochures $350

Stationery etc. $100

Activity Supplies $250

Food Preparation Supplies $300

First Aid Supplies $200

Cleaning Supplies $150

Nap Time Bedding $250

Sources of Funds

Our two owners will put up 20,000 dollars each, totaling 40,000. 

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

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• Money Management for Young People
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How to Make a Business Plan (for Kids)

Last Updated: April 17, 2024 Approved

This article was co-authored by Michael R. Lewis and by wikiHow staff writer, Amber Crain . Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of experience in business and finance, including as a Vice President for Blue Cross Blue Shield of Texas. He has a BBA in Industrial Management from the University of Texas at Austin. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 21 testimonials and 82% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 155,139 times.

There are plenty of kids out there running their own successful businesses.To get started, you’ll need a great idea for a business and a solid business plan. Business plans can get pretty complicated, but they don’t have to be. As long as your business plan includes a few crucial things, you’ll have all that you need to get started!

Developing Your Business Idea

• Are you currently busy with school or is it summertime? Think about when the work for your business will be done. [1] X Research source
• Consider business ideas that are seasonal. For example, if it’s near Christmas, consider ideas that cater to that, like a gift wrapping service or making gift baskets.
• Are you in the middle of a very hot summer? This might be a perfect time to launch a neighborhood lemonade stand.

• Examples of product-driven businesses: baking cookies, building birdhouses, making gift baskets, creating greeting cards, selling candy, making doggie treats.
• Examples of service-driven businesses: lawn care, car washing, computer repair, pet sitting, babysitting, cleaning houses, dog walking, and teaching computer skills to older people. [3] X Research source

• Are you an animal lover? Consider offering pet sitting services.
• Maybe you’re crafty and enjoy making handmade jewelry or gift baskets. These are great products to sell. [4] X Research source

• Make sure your business name is easy to pronounce, as well.
• Clever and unique business names work well, just remember that the name needs to relate to what your business entails.

• List any specific objectives and goals for your business, as well.
• Write out what you think makes your product/service unique. [6] X Research source

Planning Your Business

• If you have a sibling that wants to help out, that would be a good place to start.
• You will be splitting your profits, so you will need to decide how much and when your employees will be paid.

• You could also ask your parents if they’d consider donating some of your future allowance as seed money for your business.
• If you bring them a solid business plan, they will be more likely to help you.

• By adding up your ongoing expenses, you will have a pretty good idea of what it will cost to keep your business running. [8] X Research source
• Another example – if you’re making cookies to sell, you will need to total up how much the ingredients cost and how often you’ll need to buy them.

• Let’s say that when you add up the cost of the ingredients, it costs you $3.50 to make a dozen chocolate chip cookies. You will want to charge more than that for each dozen in order to make a profit.
• You should also factor in how much time it takes you to make your product/perform your service. [9] X Research source You can then work out prices based upon how much you want to make. You should also factor in time that you aren't being paid (such as advertising your business or walking to a customer's home).
• For example, if it takes you a half hour to make the chocolate chip cookies mentioned above and another half hour to sell them, you will need to charge an amount that represents the amount of time you spent preparing them. This additional time is your "wage" for preparing them.
• You can work out your hourly wage by dividing your pay for a project or product (minus your expenses) by the amount of time spent working.
• In this case, if you charged $9.50 for the dozen cookies, you would be making $6 for the hour that you spent making and selling them.
• Subtract your expenses from your revenue to get your profit amount. [10] X Research source

Marketing Your Business

• You should also consider your market area. Unless you have a car (or your parents' help), market area is relatively small. This may include only areas that you can safely walk or bike to.
• These customer types are called customer profiles. Once you have your customer profiles, you will have a better idea of how to market your business to them.
• Different customer profiles sometimes require entirely different marketing strategies.

• You can market most effectively once you know these specific details about your competitors.
• Offering lower prices or providing higher quality products/services are two ways you can compete with them.
• For example, if you start a lawn care business, you will be competing with established lawn care businesses. You can build a customer base by offering better service and encouraging customer recommendations.

• Remember to keep your customer profiles in mind when choosing your marketing strategies.
• For instance, if you’re starting a pet sitting business, you could post flyers at veterinary offices and pet stores, and also hand deliver flyers to people in your neighborhood with pets.

Putting Your Business Plan on Paper

• Write the business name in large letters, or use a large font, and make it bold. It’s the most important thing on the page.
• The description paragraph can be in a normal size or standard 12 point font.

• Owner/Management example: “Kelly’s Doggy Daycare is owned by Kelly Klein. She has several years of experience pet-sitting and truly loves working with and caring for dogs of all kinds.”
• Business History example: "Kelly noticed that most of her neighbors were dog owners who worked long hours every day. Occasionally, they took vacations and/or experienced family emergencies, which could take them away from their pets for days at a time."
• "With her love for dogs, Kelly knew she could provide a pet care service that her neighbors would benefit from, and that’s how Kelly’s Doggy Daycare was born."

• You don’t need to get incredibly detailed – summarize and highlight the most important information for each.
• Example for product/service: "Kelly’s Doggy Daycare will provide hands-on pet care for today’s busy pet owner. The business will offer day rates along with in-house extended stay pet sitting. Walking services are included at no charge with every appointment."

• "It’s her mission to put your mind at ease when you have to be away from your pets. Kelly will make sure your pets are loved and cared for in your absence."
• "An email summary of every pet sitting appointment will always be sent to you via email during your absence or upon your return."

• Example: “Kelly’s Doggy Daycare caters to today’s busy adults. These are business people who work long hours every day and/or travel regularly for work, family vacationers, and anyone who finds themselves in need of last minute pet care."
• "The business has one competitor, Sam’s Sitting Service, but Kelly offers lower pricing and in-house extended stay care."
• "She plans to post flyers about the new business in her neighborhood to promote it. She will also be going door-to-door to introduce herself and inform neighbors of her services.”

• Example: "Kelly will need very few supplies to launch the business – a bag of doggie treats, 1 dog leash for a small dog and 1 dog leash for a large dog."
• "Ongoing expenses will be the replenishment of doggie treats and occasionally dog toys and/or dog blankets. The rate is $5.00 for each hour of pet care provided. The rate for in-house extended care is $25 per day."
• "Customers will need to provide their own pet food or reimburse Kelly for any food she has to purchase during pet care. Profit for each hour is approximately $3.50 after expenses."
• "Profit for each day of extended care is approximately $18.50 after expenses."

Expert Q&A

You Might Also Like

• ↑ http://www.wisebread.com/create-a-business-plan-by-answering-4-simple-questions
• ↑ http://www.mikemichalowicz.com/the-37-greatest-business-ideas-for-young-entrepreneurs/
• ↑ http://www.teachingkidsbusiness.com/business-plan-example.htm
• ↑ http://content.moneyinstructor.com/664/kids-starting-business.html

About This Article

To make a business plan for kids, create a cover sheet with the business name in large, bold font and a 5-6 sentence description of the business. Have a logo? Include that, too! Start writing up the company’s management and history on the second page, talking about yourself in 1-2 sentences and how and why you came up with your business in another 2-3 sentences. Then craft 3-4 sentences, each, to describe your product or service, business goals, marketing strategy, and funding needs. To learn more from our Entrepreneur co-author, like how much to charge for your product or service, keep reading the article! Did this summary help you? Yes No

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3 Kid Business Plan Examples (Real Ones!)

By: Author Amanda L. Grossman

Posted on Last updated: May 8, 2024

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Need some examples to show kids and teens how to create a business plan? Kid business plan examples + a free template to create your own.

Teaching kids and teens to make a business plan?

It’s helpful to have some kid business plan examples to show the kids and teens who will be creating their very own (usually for the first time).

I happen to have created a kid business plan template – the Solid Gold Biz Plan.

So, I’m going to use that and two of the kid business ideas I came up with here, to show you kid business plan examples.

First up, let’s look at what a kid business plan needs to cover.

Teaching Kids to Make a Business Plan

Each business plan looks a bit different, but if you’re teaching kids about making one?

You’ll want to make sure these bases are covered:

• The problem you want to solve
• The ONE idea you’re going to create to solve it (product or service)
• Who you will target to buy your product/service
• How you’re going to tell that target audience about your product/service (marketing)
• How you’ll price your product service (combination of estimating your cost to create/maintain/deliver your product/service, what the competition is charging for a similar or same product/service, and what your customer can pay)

Now, let’s head into some kid business plan examples.

Kid Business Plan Example #1: Wig Styling

I put a call out for actual kid business plan examples that real kids and teens have filled out, and was SO excited to receive this one from Natalia.

Sixteen-year-old Natalia has wanted to sell styled wigs for 2-3 years and was given the opportunity to fill out a business plan at her school (love that!).

Her mother says,

“My daughter started cosplaying when she was about 12-13. Harley Quinn from Suicide Squad started it all! We started going to “comicons” and Animethons in our area, and she was HOOKED! She developed a passion for styling her own wigs because when they arrive/or are store bought, there is little detail. Natalia is a stickler for the finest details when it comes to wigs for characters. She's very precise.”

Her parents bought her some salon-quality cutting tools, and Natalia taught herself some unique techniques in styling.

She shares her idea + marketing work below.

Business Idea : Natalia wants to commission wigs, and has mostly done this for conventions and cosplay so far.  She’s even sold a couple already!

Marketing : Natalia wants to focus on cosplay stage play, and teens to adults at the moment. Her strategy to find these clients is through Amazon or Facebook – all online.

Pricing and Profit : Natalia has not nailed down her pricing yet (this will come with experience). She works for either a flat rate, or by the hour right now. Her average cost for materials is $80, and she sells the wig for $120. This means her profit is right around $40. This is a profit margin of 33.33% ($40/$120 * 100). Her plan is to invest most of this back into the business until she starts getting steady income from it. 

Alright! Let’s go to the next business plan example.

Kid Business Plan Example #2: Pet Photography Business

Let’s say your child wants to start up a pet photography business.

Problem You Want to Solve : People love their pets – they’re practically family members. They want to have photos of them in real life to both print out for their home and to post on social media networks like Facebook and Instagram. But it’s hard to take your own photos of yourself playing with your dog or to take animal photos at all (since they move) especially if you haven’t got the photography skills.

Your Target Client : Pet owners who feel like their pet is part of their family, or pet owners who like to spend extra money on their pets

How to tell the target Client about your product/service (marketing) : I can hang out at the local dog park and hand out my business card with the services printed on the back. I can also talk to a few pet sitters that I know, to see if they will help to spread the word.

Estimate cost of creating/maintaining/delivering this product/service :

• I don’t know of any competitors – everyone takes photos of people, not people with their pets. Local photographers charge around $150 for a portrait package with kids and teens.
• I don’t have a lot of experience with this, but am in the middle of a photography class at school.
• To get my first few clients and start getting experience, I am going to charge just $35 for a 30-minute pet photography session at the local dog park.
• I’ll also offer an “upsell” of any public location they’d like (within a 20-mile radius of my house), for just $15 more.
• As my experience grows and as the referrals start to come in, I’ll raise my prices.

Kid Business Plan Example #3: Bean Bag-Making Business

I love to use the business example from my own childhood that my friend and I created: to make and sell bean bags.

We didn’t fill out a business plan at the time (only 1 of the 1,327 mistakes we made – haha!), but if we had, it would’ve looked something like this:

Problem We Want to Solve : Kids get bored, and they might like a bean bag to play with.

Hint: this was one of the biggest problems with creating this product – it was really solving our own problem of trying to come up with something to do. We were bored, and my friend’s mother suggested we do this! Not only that, but we thought we could earn a quick buck).

Your Target Client : Kids.

How to tell the target Client about your product/service (marketing) : through yard sales

Hint: it was summertime when we started this, and our only avenue to sell was through a yard sale.

To create our product, we have to have:

• Needle and thread (yes…we were making them by hand!)

We can create one bean bag for around $0.05. We will sell our bean bags for $1.00.

I hope you found these kid business plan examples useful, and I'll be adding to them as I go. In fact, if your students or child/teen has a business plan example that they wouldn't mind sharing? Go ahead and email me so that I can add it into this article. That'll help others trying to fill out their own business plan!

• Latest Posts

Amanda L. Grossman

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• The Factory Tour Entrepreneur Project (Free Printable) - May 30, 2024

A Simple Guide for Kids’ Business Plans

Who said kids can’t run successful businesses ? Kids can start and run a successful business as early as the 4th grade.

Of course, you still need to get good grades in school, but it’s also great to nurture your entrepreneurial skills.

If you have a great business idea and would like to nurture it to join the likes of Mikaila Ulmer and Jack Bonneau, you should write a plan for it.

If you’re a parent, you want the best for your child . What better way to secure their future than to help them convert their business idea into a small business?

You can help your kid put down their ideas and plans by writing a business plan with one of the many free business plan templates available online.

Before perfecting your plan, you can write a sample business plan to orient you to the dynamics of a business plan for kids.

The Components of a Sample Business Plan for Kids

Starting a business requires commitment to a plan, much like studying for your tests.

State Your Business Ideas

The first part of a good business plan will be laying out your big idea(s).

What’s the Big Idea?

Before helping to start your kid’s business, you should clearly understand your child’s idea and how you can convert it into a money generating venture.

Talk about the equipment you need to run the business, any relevant training you have (or will get), and how you intend to actualize the business plans.

Conduct Competitor Analysis

Competitor analysis is a breakdown of what your competitors offer, their prices, and their marketing strategies.

When you plan a business, you must know what your competitors offer to gain a competitive edge.

Some of the items you should include in  your competitor analysis are:

• A product list for each competitor
• A price list for each product, for each competitor
• The needs that each competitor fulfils in the target market
• A list of the gaps in the market
• A proposal of how you intend to fill the gaps

Here’s a template of what your analysis should look like:

Record Your Research Findings

As a parent helping your child develop a business plan, guide them through the research process and help them identify the gaps. You could even be helping your child improve their grades in school as they learn how to conduct research.

Support their idea with facts, statistics, and visual elements to make it as accurate as possible.

You and your kid can even create a template like the one below to help you record your research findings.

Market Your Business

You already have your product and business laid out, but how do you get your target consumers to know about it?

A business is as good as its marketing strategy because it is the only way to make sales. When you, or your kid, write a business plan, map out a marketing path.

In the marketing section of  your business plan, have the following segments:

What’s Your Product ?

Although you introduced your product or service in the first part of your business plan, you need to talk about it in detail here.

Explain what your product is, what it is made of, and how it’s different from other products in the market. If you’re selling a service, explain why and how it’s different from other similar services in the market.

If your product or service is the first in the industry, explain what it is, what gaps it fills, and why the consumer should buy it.

Name Your Price

What is the price tag for your product/service?

You can easily influence your customer base by offering them unbeatable prices for your product.

This is where your math lessons come in handy; striking a balance between your sales volume and your prices to make a decent profit.

Are You Investing in Product Promotion?

How do you intend to introduce and maintain your product in the market? Discuss the forms of advertising you intend to use for your merchandise and how effective the strategies will be.

For instance, do you intend to use social media campaigns, or will you be marketing on other forms of media such as television adverts and printables?

Discuss how your product will be packaged to entice prospective consumers. The name, packaging, and contents of your product speak volumes about your business.

Explain the brand name and how it speaks to your target market. You can also include a pictorial sample of your logo or packaging to help explain how your product connects with the intended consumer.

What’s Your Location?

When you finally start supplying your goods or services, how will your consumers access them?

Are you a purely online seller, or will you have a brick-and-mortar store? If you have several stores, be sure to provide detailed information about them.

If you sell online, give accurate and working links to your online store. You can also provide a guide on how consumers can access your shop and make purchases.

Organize Your Finances

According to Alfred Marshall, an economics mogul of his time, “Capital is that part of wealth which is devoted to obtaining further wealth.”

Your business needs both human and financial capital to produce, distribute and sell your product or service.

You can list down a management team and have a worksheet to show their responsibilities and how much you intend to pay them.

In your business plan , explain how much capital you need to get your business up and running. Provide a working figure with a breakdown of how you will use it.

Sourcing Capital

Explain how you intend to raise the startup costs for your business. Do you have savings, or do your parents/guardians intend to finance your project?

What about angel investors? Do you have any?

If you are a parent intending to finance your child’s business, will you be investing from your savings, or do you intend to get a loan?

Breakdown Capital Usage

At this level, you will explain how your capital will be used. How much do you need for manufacturing and distribution?

Are there any other overheads between manufacturing and selling your products/service? If there are, explain how much they will cost.

Return on Investment (RoI)

Here, you explain how you will get back your capital and realize profits from your business. Indicate how you will price your product/service and show the projected profit margin.

Also, provide a timeline for how soon you should have regained your capital. Give a projection of how much profit your business should be reeling in a specific time frame.

Successful kids’ businesses are not run by geniuses; they are owned and run by kids who were passionate enough to capitalize on their dreams.

Awaken Your Entrepreneurial Self

Building your successful business starts with creating a well-detailed business plan.

If you aspire to become one of those kid entrepreneurs or would like to grow your child’s business dream into a successful business , write down an actionable plan.

Actualize your great business idea by creating and following a great business plan.

Katrina McKinnon

I'm Katrina McKinnon, the author behind Small Revolution . With two decades of hands-on experience in online work, running eCommerce stores, web agency and job boards, I'm now on a mission to empower you to work from home and achieve work-life balance. My passion lies in crafting insightful, education content. I have taught thousands of students and employees how to write, do SEO, manage eCommerce stores and work as Virtual Assistants. Join our most popular course: SEO Article Masterclass