Day Care Center Business Proposal

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Child playing with blocks at daycare.
Child playing with blocks at daycare. (Image: Comstock/Stockbyte/Getty Images)

Similar to a business plan, a business proposal contains information on the many areas of running a company. A proposal, however, is targeted to investors. Creating a proposal for a day care center requires discussing all of the general aspects of running a business, while specifically addressing the unique aspects of operating a day care venture. This can show potential investors you have both the business and day care expertise to make your venture work.

Prove Profit Potential

The first thing an investor will want to know is what makes you think your day care center will make a profit. Include a section in your proposal that provides details on the day care market in your area. Use census data to show the demographics of your locale. List your competitors and and tell investors what makes you different enough that parents will want to send their kids to you. For example, offering extended pickup and drop-off hours might be your key to profits. If you can locate near a main commuter route, this might allow parents to drop off their kids on the way to work. If your competitors only take long-term contracts, you might offer drop-in or day rates.

Detail Marketing Communications

Once you’ve shown how your day care center will meet the demands of parents in your area, tell investors how you will get the word out about your business. Because of the sensitivity of day care customers when it comes to people caring for their children, word-of-mouth referrals and testimonials will be key. Generate Likes, Shares, Tweets and Pins by using social media sites such as Facebook, Twitter and YouTube and encouraging people to refer you and give testimonials on Yelp and Pinterest. If you will use direct mail, include how you will buy your lists. List the audience profiles of any print, website or broadcast choices you’ll use and let investors know you will emphasize real customer testimonials in these types of ads.

Address Legal and Financial Issues

Show your investors you have your legal and financial bases covered. Many investors might want to be limited partners, which allows them to invest and take part of the profits but reduces their legal liability. Discuss the specific permits and licenses you’ll obtain, what type of liability insurance you’ll get and anything else that demonstrates you have all of your legal issues addressed. Provide a budget that includes your pre-launch startup costs and post-launch operating expenses. Be detailed and let investors know you’ve thought about classrooms by age group, furniture, restrooms, a kitchen, toys, educational materials and other items for a day care center. Show when you will begin to make a profit from operations, when you will pay back the initial investments and how much profit you’ll make from that point on.

Include Your Credentials

If potential investors like your business idea, they will want to know if you have any experience starting and running a business and what your experience in day care is. List your credentials and those of any partners or staff you will work with. If you do not have strong credentials, consider hiring an expert to work as your consultant. This might be a retired successful day care center owner or one in another town. You also might hire a child psychologist, pediatrician, pediatric nurse or dietitian as an advisor.

Pitch Your Proposal

Once you have given your potential backers or partners the basic information about your day care center business, make your proposal. Tell the readers of your document what their investment will be, what return you will offer them and when you expect them to start earning profits. Designate their roles, such as silent partner, co-owner or investor and lay out the details and limitations of their roles and liabilities.

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