Loulou Homework Week 5 Essay

Submitted By hottamale15
Words: 1653
Pages: 7

Little Angels 24-hour Daycare
Louann Barnes
FIN/375
March 9, 2015
Louie Moon
Little Angels 24-Hour Daycare
This is a prospectus for the Daycare Little Angels, which will have 24 hour services for children ages 2 months old to age 13.We will serve the need of parents for quality care of the children while they work. The daycare motto is little bits of love go a long, long way, by supplying safe and caring personal attention.
Table of contents
1. Description of Venture
2. Development Concept
3. Management Biographies
4. Competitive Product or Service Statement (Market Analysis)
5. Construction and Preopening Budget
6. Operating Pro-Forma (Budget)
7. Samples of Financial Statements to be Used
8. Summary of Proposed Investment Terms
9. Return on Investment Analysis
10. Statement of the Viability of the Venture as an Investment
Description of Venture
a. This is a prospectus for the Daycare Little Angels, which will have 24 hour services for children ages 2 months old to age 13.We will serve the need of parents for quality care of the children while they work. Little Angels offers quality care, flexible hours, and competitive pricing. The company would start as a home –based daycare with six children and then expand into a larger facility to accommodate 100 children in the next year.
b. The home-based facility will be a test run to see if the 24 hour daycare service is needed in the area. We will do extensive research in the area for the economy, the number of residents in the area, salary cap of residents, how many businesses are in the vicinity of the daycare, and how many schools in the area, competition, and hours or work times.
The daycare has to research prices for equipment, expenses, safety provisions, CPR

classes, personnel, enrollment price, find out about zoning, receipt books, local, state, and

federal laws, legal expenses for licensing fee, liability, fire and theft insurance, security

gate, background checks, playground equipment, sand or mulch, my utilities, food,

furniture, chairs, books, diapers, music stereo, the cost of outlet plugs, cabinet locks.

Development Concept
a. The daycare will purchase a facility with 1,300 sq. feet, a fenced in yard, furnished with playground equipment, play sand, and a sandbox in the second year. We will add a covered deck to the rear of the facility for outdoor time and lunch when the weather permits.
b. According to "Www.sbdc.net" (2015), " US child care services industry includes about 53,000 commercial facilities with combined annual revenue of $20 billion, plus about 21,000 facilities run by nonprofit organizations with combined annual revenue of about $13 billion.”
The target market will be full time working parents with 80% business ratios, we found that 20% of the revenue will come from part-time workers and drop-ins so we have included them too, with a referral marketing strategy. According to "Www.sbdc.net" (2015), "In addition to slowly improving economic conditions, recent increases in birthrates also are contributing to growing demand for daycare services. The net result is that daycare industry employment is estimated to increase 2.8% per year on average to 1.9 million.”
Management Biography
a. Louann Barnes is a 10 year certified and licensed daycare provider. She has extensive experience in the child care industry. She opened the first daycare called Little Bits childcare in 1998. She has partnered with Bright from the Start Resources and Community Health for workshops and many certificates and awards in daycare services. Mrs. Barnes has cared for hundreds of children in her home based daycare.
b. Mrs. Barnes is capable of handling the management, finance, and administration areas, and has a great reputation in the community. She is certified in CPR, swimming, and has a certificate for allergic reactions to food and medicines procedures. She also is committed to the children well-being.
Competitive Product or Service Statement
a. We are…