Tiffanys PlayHouse (the
Company) will fill the void for a first-class daycare facility in Incline
Village. There has long been a
shortage for quality daycare due to lack of availability of a competent
location. A location has become vacant and is perfect for the Company.
Planning for this business has been ongoing for over four years by
management. The total cost of
getting the Company in operation is $700,000, which includes building/property
acquisition, renovation, equipment and operating capital.
The Company intends to raise all of the projects costs through this
Currently, there is only
one commercial daycare in Incline Village.
There are other after-school programs and the like, but only one that
offers daycare for infants as well as toddlers. Over four years ago the other commercial daycare, North Tahoe
Daycare, was closed due to possible child abuse. During the time following the closure, we have been trying to
find a suitable location to satisfy the Washoe County Social Services licensing requirements.
licensing attempts, the building itself was always the problem.
To obtain a license,
there has to be 34 sqft. per child inside the building, 37 sqft. per child of
fenced outdoor area and level entry to the building.
To our surprise, there are not too many qualified buildings for sale or
lease in Incline Village.
The PlayHouse Experience
Our goal at Tiffanys
PlayHouse is to encourage creativity, individuality, and independence.
We have created an environment filled with love, patience and kindness.
The staff at the
PlayHouse is qualified in Early Childhood Education; each teacher plays an
important role. We always keep in
mind that children learn through example and often mirror adults.
We set our standards high and expect our staff to set through example,
all the good we know.
We have a set curriculum for
both age groups; infant through two years, and three years through five years.
Our infant/toddler class will
encourage the children to explore and discover his or her world daily.
This will be accented with the use of sensory activities and language
development (children will learn by doing).
The teacher will provide the parent with a weekly goal, in keeping with
the learning environment. Parents
are always welcome to take part in classroom activities and share ideas with
teachers who are always happy to discuss concerns or answer questions.
The discovery class, ages
three through five years, will do just what the name suggests.
This class will learn through discovery centers set up on a weekly
rotating basis. The learning
centers will vary from science, language, math, housekeeping, daily life skills,
and social development.
For the curious parent, we
will have two live web cams hooked up to the Internet. Every 15 seconds a picture of the play area will be uploaded
to our web site. This will allow
the parent or other relatives to check up on what their child is up to, any time
of the day.
Along with teacher
instruction, the child will have the opportunity to develop his or her own
hands-on learning style, giving the child the chance to learn at his or her own
pace, allowing them to master a skill that which they are comfortable.
Teachers will provide the
parent with a weekly goal sheet encouraging parents to take part in the weekly
lesson and reinforce the daily learning experience at home.
Children will be given, on a daily basis, the chance to work with
computers, musical instruments, large muscle equipment, manipulatives such as
blocks, and always
arts and crafts.
The Company plans on
being open for daycare by Fall 1999.
the third year of operation we will expand the infant care, tripling the
The projected revenues
are based on 5 infants and 40 toddlers/walk-ins per day. We will be the only facility open 7 days a week.
Based on these occupancy rates, our first year revenues are projected at
$415,000 with pre-tax profits of $166,000 (see Projected P&L).
These numbers will create a return of investment (ROI) of 10% during the
first year. There is enough space
to expand in the future, depending on demand.
At present, we have
located a suitable building for purchase.
asking price is $399,000 which includes 3,000 sqft of Commercial Floor Space (C.F.S.).
A daycare facility does not require the use of C.F.S., the value of which
is between $100,000 and $130,000 and can be sold off or used elsewhere by the
equity investor. Renovation will be
needed to the parking area, landscape and interior of the building.
Many of the interior changes being made are to conform with ADA
This property is located
Ski Way in Incline Village (the old Potlatch building).
Our target market is
Incline Village families with young children.
As of the most recent demographic analysis for the Incline Village area
shows 6.4% (458) of the population is between the ages of 0 and 5 years (see
attachment). We will target these families through some print advertising and a
Also, we have secured
and exclusive agreement with the Diamond Peak ski area. We will be their weekend daycare facility.
All of their promotional literature will list Tiffanys Playhouse as
the facility for any daycare needs. Parents
will be given beepers to notify them on the hill if there are any problems with
The print advertising
will be placed in the local newspaper announcing the opening of the daycare.
Along with the ads, we have a connection at the paper for a Business
Brief article that will not cost any money, the best free publicity available in
Incline. We plan to have the
article to be printed well in advance of opening to facilitate pre-enrollment.
Shortly following the
release of the newspaper article, we plan to do a mass mailing to every box holder
and household in Incline and Crystal Bay.
There are 7,000 boxes and 250 home delivery and at a rate of 11.2 cents
per piece, this is a very affordable and effective way to advertise.
We have had enough
inquiries to date, through word-of-mouth, to be completely pre-enrolled before
opening the doors to the business; There is that much of a demand.
As mentioned earlier in
the plan, competition consists of Tahoe Tots, Kids Club, the Presbyterian
Churchs Incline Nursery School and home daycare.
Tahoe Tots is Inclines only
full-time, commercial daycare. They
take children Monday-Friday from 7:30am to 6pm. They will be our only direct competition.
But, direct competition in the sense that they provide a similar service;
they consistently have a waiting list for children needing daycare.
Quality of service has always been a question when Tahoe Tots is
concerned: Poor teaching, poor supervision and limited space are some of their
The remaining licensed
competition falls into two categories: Part-time commercial and home daycares.
The part-time daycare facilities run either limited days through the week
or only a few hours during the day. These
types of facilities do not offer a full-time daycare.
For instance, the Incline Nursery School offers either 2 or 3-day
sessions (only 3 hours per day. These
types of services also restrict the age of the child, accepting none under the
age of three years.
Home daycares, for the
most part, are unlicensed and run out of a private residence.
Generally, these types of daycare services are a product of the lack of
commercial facilities. The average home daycare consists of a housewife with
children of her own, watching from 1- 5 children.
Quality of this type of service varies depending on the motivation of the
housewife and size of the residence.
the most part, home daycares are a last resort for working parents.
The management team
consists of Tony and Tiffany. Both
have qualifications that will be essential to the Company. Tony has the business savvy and Tiffany has the childhood
Tony owns and operates
several local businesses. His
experience covers all aspects of business, including start-up, bookkeeping,
marketing, graphic design, computer consulting and teaching.
Tiffany is currently
licensed with the local County Social Services Dept. for home daycare.
She has been operating a home daycare for five years with over eight
years of childcare experience. She
is the key to the Company, not only due to her experience, but notoriety within
Incline as a long-time resident.
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