Friday, March 28, 2014

Starting a Child Care Business - Chapter 5 Business Plan

Starting a Child Care Business - Chapter 5 Business Plan

A business plan is a personal and professional guide for your business. It shows where you are and where you hope to be in 3 - 5 years and how you plan to get there.

Here are the Elements of a Business Plan
1. Cover sheet
2. Statement of purpose
3. Table of contents

I. The Business
A. Description of business
B. Marketing
C. Competition
D. Operating procedures
E. Personnel
F. Business insurance

II. Financial Data

A. Loan applications
B. Capital equipment and supply list
C. Balance sheet
D. Breakeven analysis
E. Pro-forma income projections (profit & loss statements)
Three-year summary
Detail by month, first year
Detail by quarters, second and third years
Assumptions upon which projections were based
F. Pro-forma cash flow

III. Supporting Documents
Tax returns of principals for last three years Personal financial statement (all banks have these forms)
For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchiser
  • Copy of proposed lease or purchase agreement for building space
  • Copy of licenses and other legal documents
  • Copy of resumes of all principals
  • Copies of letters of intent from suppliers, etc.
There are many computer programs on the market that will guide you through the process of putting together your business plan. Check the internet or your office supply store. More...

To purchase the book: A Practical Guild to Starting and Operating a Child Care Business, visit Networx LLC.

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