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Daycare Business Plan



Note from Real Business Plans - This copy of a daycare business plan is one used for real company that I started with my wife.  This business plan is for a non-home daycare and was created to attract funding from investors.  The financial link at the bottom is only a P&L, you will need more financial statements to complete your plan.  Our free Financial Guide will give you more information.   Once you are at this stage, also read up on the Offering Memorandum and Subscription Agreement which you will need to accept payment for shares from investors.  A business plan alone is not enough.  Also, one of our online partners, Palo Alto, offers a great business plan software package if that is what you prefer. 

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Daycare Facility


Executive Summary  

Tiffany’s 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 project’s costs through this offering.


 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.  After numerous 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 Tiffany’s 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.  By the third year of operation we will expand the infant care, tripling the capacity.

 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.

Location Selection

 At present, we have located a suitable building for purchase.  The 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 requirements.

 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 mass mailing.

 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 Tiffany’s 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 their child. 

 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 Church’s Incline Nursery School and home daycare. 

Tahoe Tots is Incline’s 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 shortcomings.

 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.  For 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 development experience.

 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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