Business Plan for a Not-For-Profit Child Care Center
Creating a business plan for a child care center is the same whether the center will be a for-profit or not-for-profit enterprise. The difference is that instead of paying the profits to shareholders in a business model, any additional funds must be reinvested in serving the mission of the nonprofit. When your income exceeds your expenses, invest that income in upgrading the center, replenishing toys or providing financial scholarships for child care.
Your business plan should include details for all aspects of your business including mission and background, organizational structure, licensing, management, marketing and financial projections. The completed plan will give direction throughout the year and provide a way to measure achievements, such as the number of children served.
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Mission and Background
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The first section of your business plan should detail the mission and background of your non-profit organization. This information clearly tells board members, staff and volunteers the purpose of your nonprofit. Good communication ensures that everyone is working toward the same goals.
Organizational Structure
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Who's in charge? List the roles of everyone involved including executive director, bookkeeper, child-care teacher, child care assistant, maintenance helper, craft director and cook. Include descriptions of expectations and work hours. Each person needs to completely understand the requirements of her job to meet expectations.
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Licensing
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As a child-care center, you will need to procure local and state licenses. Secure your local business license, sometimes called occupancy license and check for
Specific regulations regarding child care in your location. Many states require a child-care center license and certification for child-care workers. In addition, many states require background checks for all workers. Even if this is not a state requirement for you, it is considered a best practice in the child-care industry.
Operations
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Operations includes the day-to-day activities of the center. What time do the doors open? Will the center be responsible for meeting school buses or picking up children from school? If so, who is assigned those tasks? Who makes the decision to call a parent regarding the need to pick up a sick child? Who will buy the ingredients for snacks and lunches? What time do the children lie down for naps? A daily schedule lets everyone--parents, teachers and children--know what to expect.
Marketing
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Recruiting customers is important, especially for a not-for-profit organization. Reach out in the immediate neighborhood. Post fliers in the local library. Ask local businesses if you may post fliers or provide information for their employees. Contact area churches and ask them to include an announcement in their bulletin or newsletter. Have a professional sign created, however, check sign ordinances and permit requirements in your city to ensure compliance.
Financial Projections
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Estimate financial projections using child-care rates in your area. If you will offer subsidized care or child care on a sliding scale, allow for these reductions in your figures. Familiarize yourself with the balance sheet, income statement and cash flow statement. These three documents provide all the information you need to monitor the financial health of your non-for-profit child care center.
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