BUSINESS PLAN THE TODDLER WARE HOUSE

INTRODUCTION –

Toddler warehouse has always been one of the most popular jobs for teens looking to make some extra money, and today is no different. The most successful teens in the world are the ones that have a plan. They treat their warehouse as a business, and then build their client base to increase the amount of money that they are worth. Just like any business, you can build a good one with some planning and effort. Taking care of toddler is an important responsibility since they very small. Starting a this business is fairly easy, inexpensive & responsible job and can prove financially rewarding.

Toddler warehouse is a place for a child to practice skills which will help him/her throughout her life as an adult. Furthermore, if she treats it as a business, she will be setting the stage for future entrepreneurial enterprises. A good warehouse doesn’t show up and park the children in front of the television set while she listens to music, watches her own program or does her homework. A good warehouse works hard at providing a fun and safe experience for the children she is caring for.

The Toddler Warehouse is a full-service child care/development facility that cares for toddlers from age three to five. The Toddler Warehouse will be concentrating on the upper end of the market: double-income professional parents. These personally ambitious parents are typically eager in terms of their children's development and will be willing to pay to have their children attend the best facilities. As now a day’s both parents are working so they can’t give proper attention to their child hence toddler warehouse comes into existence, & this becomes win- win situation for both warehouse owner & parents as they find someone who takes care of their child, teach them good values in their behalf.

Through specialized training of the staff and innovative learning systems, The Toddler Warehouse is cutting edge in terms of child development. This curriculum, coupled with a custom designed facility and a low teacher: student ratio ensures a top shelf service for the children and the parents. Here staff knows about a child - how to treat them, how to behave with them, they understand child language also try to teach them the basic necessities of life which help them in their future, help them to become good individual & a successful in life. As rightly said that “There is a garden in every childhood, an enchanted place where colors are brighter, the air softer, and the morning more fragrant than ever again. “ Hence giving proper of child, teaching them proper values, ethics of life is very much necessary, which we are planning to do here.

The Toddler Warehouse expects to become profitable by month 11, and has projected a modest net profit by year three. 

1.1 Objectives

The objectives for the first three years of operation include:

To create a service based operation whose primary goal is to exceed customer's expectations.

The utilization of The Toddler Warehouse by at least 40 different families in the first eight months.

To increase the number of client's served by 20% each year. To teach good values to a child. To develop a sustainable, profitable, start-up business.

1.2 Mission

The Toddler Warehouse's mission is to provide top level child care. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

1.3 Vision

To become most successful toddler warehouse service provider by enchancing our values. Diversity is a central part of the Indian culture. It’s a key to our people’s passion for improving the health and well-being of child. Further, our commitment to diversity and inclusion is deeply rooted in the values. We recognize that differences in age, race, gender, religion, physical ability, thinking style and background bring richness to our work environments. Such differences help us connect better with the needs of people in communities around the world.

We believe that attracting, developing and retaining a base of employees that reflects the diversity of our customers is essential to our success. We also believe success hinges on relationships with diverse professional.

CHAPTER – 1

1.0 - Executive Summary

The Toddler Warehouse, soon to be located at Vashi, will offer child care services for kids between the ages of three and five. The Toddler Warehouse will offer services from 8 a.m. to 7 p.m. The children will be exposed to a wide range of activities including arts and crafts, socialization, large muscle group activities, and general learning. The Toddler Warehouse will be priced out of some people's budget, but will offer a low student to teacher ratio and well trained staff. The Toddler Warehouse will be located in a recently purchased and converted home that now is solely a child care center.

This project will information about exactly about –

How a child is being taken care of. What all facilities is given to a child Values & ethics thought to a child. Even through survey we found that parents more conscious about their child

future rather than their amount charged by the various toddler warehouse. Through knowledge & experience of our rained staff we are able to give best of

us to child

Here we don’t discriminate child, we teach the basic manners, fundas of life what is usually given by a parents or grandparents, no matter a child belongs to which caste or religion all are treated equally & is given same importance.

1.1– Business Proposal

Toddler warehouse business is all about –

Taking care of children between age group of 1 to 3 years. Where a child will taken care of. Will be taught new ideas with help of games. Will first try to find out what is the most interested area of child. What is their requirement and try to fulfill them is the best possible manner.

This is basically for parents who are working is not able to give proper attention to their child since they are working. Personally ambitious parents are typically eager in terms of their children's development and will be willing to pay to have their children attend the best facilities.

Through specialized training of the staff and innovative learning systems, The Toddler Warehouse is cutting edge in terms of child development. Here we will not only take care of a child & providing meals on time but will also ensure that a child is given proper

values which helps him/her in his future also to become a better individual because as it is rightly said that – “What we sow so shall we reap”. So we will ensure that we provide best of ours to a child to become successful & make their parents proud.

1.2 – Development of Toddler warehouse

Development stages includes following things –

1) Setting up at primary level-

Initially will be setting this at primary level with less number of child’s so that proper attention is given to all & also since it’s a new business so it’s better to start with small number so that all the activities are managed properly.

2) Meeting basic requirement –

Requirements like – Milk, baby products, different games to play, soft toys, things which is usually liked by boys to play or girls like to play, maintaining cleanliness, first aid box.

3) Appointment of trained staff-

Staff appointment is very crucial as they are the one who will take care of child’s. So selection/ appointment is very important because if wrong person is selected then their chances that the business may suffer along with the child in warehouse.

4) Creating awareness/ Advertising–

Once the business is being decided then we have to do advertising so that people are aware of this. Advertising can be done through – newspaper, word of mouth, advertising is local cable channels, or by hoardings.

5) Understanding nature of child-

Understanding child is very important, since we are taking child of age group between 1 – 3 years so half of the child will not be able to speak or will not be able to communicate properly. So we as a parent should understand their requirement & fulfill their requirement.

6) Maintaining Standard-

A proper standard has to be maintained so that parents are not worried about their child health. Try to use branded products, check the expiry dates before using the products. See to it that child is not allergic to the product used.

7) Research & development –

Before starting the business proper search should be done like – what facilities is provided by other toddlers warehouses or baby sitters or kindergarten service provides.

Should be able to stand in the market by providing some extra some extra care to a child which is not provided by others also at same time maintaining the quality.

1.3Market structure & analysis -

1.3.1 – Target market & customer base

The Toddler Warehouse intends to concentrate on the double income working professional families because they are the segment that can most readily afford day care, are the ones who need day care because of their work obligations, appreciate the advanced learning and development The Toddler Warehouse has to offer, and lastly are a growing segment of our society.

With both parents working, this segment needs some sort of provisions for the care of their child. While the Department of Labor indicates that over 50% of children are cared by relatives compared to 29% for a commercial day care center, our targeted group prefers a more structured learning environment. Relatives are great for nights out or weekends, but they do not compare to a structured program when it comes to the learning and development that occurs at The Toddler Warehouse. Having both parents as professionals, they are ambitious with the development of their child and are willing to pay to get the best program for their prodigy.

1.3.2 – Competitor analysis

There are many different competitors in the child care space. The Toddler Warehouse will only detail the direct or reasonably direct competitors, and will not detail the myriad of other service providers that offer some sort of child care option. The direct competitors are:

1. Established, often franchised, child care centers. These are typically larger facilities that offer care to a wide range of ages. The number of children serviced is usually quite large. The child care is adequate, although somewhat impersonal by virtue of its large size.

2. Small, home based child care. These competitors are people that have a child care facility based out of their house. The quality of these ranges considerably, some are great, some are small.

3. Medium sized companies. These are typically independently owned facilities. Some of these will handle a wide range of ages; others will specialize with a specific age group.

4. To some extend kindergarten also one the competitor.5. Even play groups are competitors, as their children are thought different games &

different things are taught which is helpful to a child.6. If joint family is there then parents need not worry about their children as there

are grandparents who can take care of their grandsons/ daughters.

1.3.3 - Market size & potential

Market size for this project is growing, as a now – a- days more & more family is becoming nuclear & more over both the parents are working hence they not get enough time to spend their time on their child development. So Toddler warehouse concept came into existence.

Market for this will growing much higher in near future. Earlier, grandparents use to take care of the grandson/daughter, then concept of babysitting came, then playgroup concept came , then kindergarten & now with change in time & people becoming modern & are giving more importance to quality of thing which they are using, becoming modern, ready to spend more on quality hence concept of toddler came into existence. The Toddler Warehouse offers an upper-end child care facility for toddlers age three to five. The Toddler Warehouse offers a low teacher to student ratio, custom facilities, and innovative learning programs. The Toddler Warehouse hours will be a bit wider rage than normal business hours to accommodate the working parents, the target customer.

1.3.4 – Competitive advantage

Our advantages are as follows -

1) Provide best of modern amenities.2) Acts as virtual parents.3) Broadening the children's skills during the day.4) This is not a baby sitter facility.5) The children are engaged throughout the day.6) Learning new skills and reinforcing already acquired ones.7) Children to be enrolled in a program that offers development of many different

skills including: socialization skills, arts and crafts, large muscle group workouts, reading, numbers, etc.

8) Moreover – It gives value to the money given by the parents.9) Also basic values & ethics is being taught to a child.

1.4– Marketing & Sales

1.4.1 – Sales

The Toddler Warehouse's sales strategy will be targeting double income working professional families. These families have the money to spend on child care and these parents are much more likely to appreciate the advanced learning systems taught at The Toddler Warehouse based on Matt's thesis.

The sales strategy will be based on a communication effort to explain the virtues of the program and how time at The Toddler Warehouse can speed up the children's development considerably. In addition to one on one explanations of the program and

its merits, the prospective parents will be given tours of the facilities. The tour of the facility will serve two purposes:

1. The tour will be used as a way to impress the prospect of the facilities that The Toddler Warehouse has. These facilities were custom designed to achieve very specific educational goals and The Toddler Warehouse is immensely proud of the facilities.

2. The tours typically occur during the day and this becomes a perfect opportunity for the potential customer to view the care as it is occurring. This will serve to build a trust bond between The Toddler Warehouse and the parent who naturally is cautious about leaving the child with strangers to have the child cared for and taught the entire day.

In essence, The Toddler Warehouse  is letting the facilities and teacher/student interactions speak for themselves. Because of the high level of service, this is entirely possible.

Sales Forecast:-

The first two months will be spent renovating the house and bringing it up to specifications, both for the state health and license codes, and Matt's specifications. During this time, Matt will be finishing up the training program and manuals. Although Matt had designed an entire training program as part of his Master's in Education, he is re-working it so it is custom designed for his new facility.

The first week of the third month will be used for training of the staff. By the middle of the third month The Toddler Warehouse will begin accepting children for care. It is anticipated that the facility will be under-utilized until the eighth month. By then, word will have spread and the classes will be filling up quite nicely.

From month seven on, there will be a steady, incremental increase in sales.

Sales ForecastYear 1(Rs) Year 2(Rs) Year 3(Rs)

SalesTwo income professional families

5232750 10063740 10537620

Other 0 0 0Total Sales 5232750 10063740 10537620

Direct Cost of Sales Year 1() Year 2() Year 3()Two income professional families

104670 201270 210750

Other 0 0 0Subtotal Direct Cost of Sales 104670 201270 210750

1.4.2 – Marketing & communication

Marketing & communication ways are as follows –

1) By giving ads in local newspaper – through we can reach to the maximum people in less time; also the cost for this advertisement is not more. Hence one of the best way to to advertising.

2) Via word of mouth - One of the cheapest & fastest modes of communication. Word of mouth is spread spread very fast & it does not include any cost.

3) By putting hoarding – By putting hoardings at different places can also attract people’s attention. Also selection of putting hoarding is very important – like

If you put hoarding on top of some tree or wall where it cannot be seen then there is no point.

Message written on hoarding should be proper, miscommunication should be avoided.

Message should be coded properly, even the symbols or signs used should be proper with proper color codes.

4) Distributing Leaflets - Distributing Leaflets in newspaper can be one form of advertising.

5) Giving ads in local cable channels is also one of the form of advertising.

1.5– Company structure

1.5.1 – Management

Legal Status -

We have opened this business in partnership firm. Our partnership was done on 1st march, 2011. We have completed all the related formalities with this partnership firm.

Partnership & sponsors –

Partners of our business are as follows –

1) Chnadrashekhar A – Partner.

2) Jobesh John – Partner.

3) Mitali Chauhan – Partner.

These are the partners of our business who have contributed money for this business. All the partners are active partners.

1.6– Risks

Risks –

Difficulties and risks:

Generating awareness of The Toddler Warehouse among the target customer segment.

The entry into the Salem child care market by competitors who recognize the value added services of sophisticated development and learning systems.

A sudden downturn in demand for child care services.

A debilitating law suit that is not covered by insurance.

A severe negligent act of an employee.

Risks from local baby sitters. Risks from play groups already exist.

Worst case risks may include:

Not generating enough revenue to support the business. Having to liquidate equipment to cover liabilities.

Sudden illness preventing Matt from carrying on day to day activities

1.7 – SWOT Analysis

Strengths

A sophisticated & effective learning system. Excellent training programs. An educated customer base who recognsisesthe benefits that the Toddlers

warehouse offers.

Weakness-

A lack of visibility due to the newness of the operation. Ability to attract & keep well trained employees. Inability to perfectly forecast the demand of services relative to the number of

employees on staff at any one time.

Opportunities –

A growing market with a large percentage of target customers not yet aware of The Toddlers warehouse.

Increased revenues as more & more people are working, thereby unable to care of their children during the day.

As the number of children served grows, fixed costs are spread thinner over a larger customer base.

Threats –

Competition from already established facilities that improve their service offerings to be more competitive to the Toddlers warehouse.

Unfounded “public scares” regarding child care. Legal liability issues, either one large suit against The Toddler warehouse, or

significant increases in the premiums due to changes within the operating environment of the industry.

Chapter – 2 The Entrepreneurs

2.1 – Personal motivation & individual qualities

Entrepreneur Team-

Members of Toddler business following –

1) Mukund Devgude - Teacher

2) Akshita Patankar - Teacher

3) Karishma Menon – Financial officer

4) Jitesh Singre - Maintainance dept.

5) Mayur Sonawane - Admisnistrative officer.

Reasons for selecting this business are as follows –

1) New & modern approach towards child growth.2) Broadening the children's skills during the day.3) Learning new skills and reinforcing already acquired ones.4) Innovative learning programs for children.5) Now – a –days both parents are working, so can’t give proper attention to their

child, so we decided to take care of their children & also it was one of the modern way to take care of children & make them learn new things.

Ambition from our business in future –

1) To become one of the successful toddler warehouse.2) Capture large market share.3) Try to increase the customers by 8% in a quarter.4) Achieve more Professionalism.5) Safety for children as well for business,6) Superior customer attention.7) Immaculate care of children.

Chapter 3 – The Sustainability Impact

The economic downturn’s impact on childcare businesses so far has been mixed. Parts of the childcare market appear to have held up relatively well. None the less, many settings reported a drop in attendance, rising cases of bad debt and, as a result, falling income. The overall picture raises concerns in the total number of nursery places fell significantly.

The factors cause anxiety and uncertainty among early years providers. That economic recovery is not yet entrenched maintains a high-level of concern over sustainability in the medium and long-term, as do continued difficulties with schemes such as the free entitlement. Unease is fuelled by worries over developments beyond the sector’s control, such as VAT, cuts to tax credits and support for families and possible interest rate rises and the effect these have on household finances.

These are issues for local authorities too, given childcare sufficiency duties and market management responsibilities. As such, and building on the way councils and nurseries in many areas have in recent years been working closely to satisfy demand for childcare, National Day Nurseries Association (NDNA) has compiled a series of case studies from across the country. Nurseries have a central role in delivering the flexible free entitlement and making it easier for parents to return to work.

Conclusion:

Childcare considerably affects businesses. An enough delivery of choice childcare gives working families more and better choices. It makes available secure, safe care so that parents can work, and helps employers to attract potential workers with families. Without safe, dependable care that they can rely on, employees may be compulsory take time from work because of childcare troubles or use time at work managing child care apprehensions. Their efficiency can have adverse experience as a result; and prized human resources may leave their jobs because of childcare problems.

Chapter 4 – The Financial Plan

Financial Plan

The following sections will outline the important financial details.

7.1 Important Assumptions

The following tables show some financial assumptions for The Toddler Warehouse.

General AssumptionsYear 1 Year 2 Year 3

Plan Month 1 2 3Current Interest Rate 10.00% 10.00% 10.00%Long-term Interest Rate 10.00% 10.00% 10.00%Tax Rate 25.42% 25.00% 25.42%Other 0 0 0

Projected Profit and Loss

Pro Forma Profit and Loss

Year 1(Rs) Year 2(Rs)

Sales 52,32,7501,00,63,740

Direct Cost of Sales 1,04,670 2,01,270

Other 0 0

Total Cost of Sales 1,04,670 2,01,270

Expenses

Payroll 48,90,000 64,80,000

Sales and Marketing and Other Expenses

54,000 0

Depreciation 0 0

Licenses 36,000 36,000

Utilities 63,000 63,000

Mortgage 7,20,000 7,20,000

Insurance 90,000 90,000

Payroll Taxes 7,33,500 9,72,000

Other 0 0

Total Operating Expenses 65,86,500 83,61,000

Profit Before Interest and Taxes

(14,58,420) 15,01,470

EBITDA (14,58,420) 15,01,470

Interest Expense 0 0

Taxes Incurred 0 3,75,360

Net Profit (14,58,420) 11,26,110

Net Profit/Sales -27.87% 11.19%

Projected Cash Flow

Pro Forma Cash Flow

Year 1(Rs) Year 2(Rs)

Cash Received

Cash from Operations

Cash Sales 52,32,750 1,00,63,740

Subtotal Cash from Operations

52,32,750 1,00,63,740

Additional Cash Received

Sales Tax, VAT, HST/GST Received

0 0

New Current Borrowing 0 0

New Other Liabilities (interest-free)

0 0

New Long-term Liabilities 0 0

Sales of Other Current Assets

0 0

Sales of Long-term Assets 0 0

New Investment Received 0 0

Subtotal Cash Received 52,32,750 1,00,63,740

ExpendituresYear 1(Rs) Year 2(Rs)

Expenditures from Operations

Cash Spending 48,90,000 64,80,000

Bill Payments 16,33,260 24,23,520

Subtotal Spent on Operations

65,23,260 89,03,520

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out

0 0

Principal Repayment of Current Borrowing

0 0

Other Liabilities Principal Repayment

0 0

Long-term Liabilities Principal Repayment

0 0

Purchase Other Current Assets

0 0

Purchase Long-term Assets 0 0

Dividends 0 0

Subtotal Cash Spent 65,23,260 89,03,520

Net Cash Flow (12,90,510) 11,60,220

Cash Balance 1,86,690 13,47,180

Projected Balance Sheet

The following table will indicate the projected balance sheet.

Pro Forma Balance Sheet

Year 1(Rs) Year 2(Rs)

Assets

Current Assets

Cash 1,86,690 13,47,180

Other Current Assets 0 0

Total Current Assets 1,86,690 13,47,180

Long-term Assets

Long-term Assets 10,08,000 10,80,000

Accumulated Depreciation 0 0

Total Long-term Assets 10,08,000 10,08,000

Total Assets 11,94,990 23,55,180

Liabilities and CapitalYear 1(Rs) Year 2(Rs)

Current Liabilities

Accounts Payable 1,67,880 2,01,990

Current Borrowing 0 0

Other Current Liabilities 0 0

Subtotal Current Liabilities 1,67,880 2,01,990

Long-term Liabilities 0 0

Total Liabilities 1,67,880 2,01,990

Paid-in Capital 25,50,000 25,50,000

Retained Earnings (64500) (15,22,920)

Earnings (14,58,420) 11,26,110

Total Capital 10,27,110 21,53,190

Total Liabilities and Capital 11,94,990 23,55,180

Net Worth 10,27,110 21,53,190