Tomorrows Leaders

Child Development Center

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1.0 Executive Summary.....................................................................................................................1

1.1 Mission...........................................................................................................................................1
1.2 Keys to Success.........................................................................................................................2
2.0 Company Summary......................................................................................................................2
2.1 Company Ownership................................................................................................................2
2.2 Start-up Summary....................................................................................................................2
3.0 Services.............................................................................................................................................3
3.1 Company Locations and Facilities.......................................................................................4
4.0 Market Analysis Summary.........................................................................................................4
4.1 Market Segmentation..............................................................................................................4
4.2 Target Market Segment Strategy........................................................................................4
5.0 Strategy and Implementation Summary.............................................................................4
5.1 Competitive Edge......................................................................................................................5
5.2 Sales Strategy............................................................................................................................5
5.3 Sales Forecast............................................................................................................................5
6.0 Management Summary...............................................................................................................5
7.0 Personal Economical Statement
6
8.0 Financial Plan..................................................................................................................................6
8.1 Break-even Analysis.................................................................................................................7
8.2 Projected Profit and Loss.......................................................................................................8
8.3 Projected Cash Flow.................................................................................................................9
8.4 Projected Balance Sheet......................................................................................................10

1.0 Executive Summary

Tomorrows Leaders (TL) is a child development center in Valdosta, GA. Tomorrows Leaders is
designed to provide services for children as young as six months old through 8th grade (after school
services). Tomorrows Leaders specializes in provides child development options 24 hours a day and
7 days a week.
The Market
Valdosta is small town with a population of roughly 56,000. Within a 10 miles radius of Valdosta
there are currently over 20 child care facilities. Of those 20 child care facilities, only four of them are
truly child development centers and direct competition. While options are not sparse, the market
isnt saturated with child care options either.
Tomorrows Leaders plan to penetrate the market is based on two key principles: Affordable Pricing
and small group settings. We have priced our packages to be at or lower than 75% of the average
pricing for other child development facilities within the local area. Additionally, our child care
providers have been limited to no more than five children to supervise at any given time, ensuring
quality time and education and passed on to each individual child.
The Customers
Tomorrows Leaders is primarily targeting 2nd and 3rd shift workers who need a quality child
development center for the hours that they work. While Tomorrows Leaders is competing with other
facilities for customers during the standard work day and for after school services, it is the only
facility in Valdosta to offer 24/7 coverage. It is estimated at 40% of the work force in Valdosta that
has children currently work 2nd and 3rd shifts. This is where Tomorrows Leaders will focus on new
customer acquisitions.
The Management Team
Tomorrows Leaders is owned and operated by Christopher and Tonya Sears. Tonya has a degree and
background in early childhood education and development. She has worked in several child
development centers in the past 10 years and recently held the position of Lead Curriculum
Developer for a competing child care facility. Christopher currently holds degrees in Business
Management & Applied Mathematics. He has been in several management positions for the past 15
years and was most recently employed as the Superintendent of Operations at JDL Home
Construction and Siding. While employed in this position JDL Homes gross revenue doubled to $200K
in less than two years.
With the combined education and experiences of the management team, Tomorrows Leaders is
prepared to grow and nurture both the child and business development aspects of this market.
Tomorrows Leaders is projected to break even after the second year of operations and net $100K in
profits by the end of the third year.
1.1 Mission
Tomorrows Leaders mission is to provide quality child development to the children of Valdosta at an
affordable price.
1.2 Keys to Success
Keys to success for the company will include:
1. Establishing a reputation as the best in quality child development center in Valdosta.
2. Maintaining operating hours and services that work for 2nd and 3rd shift workers.

3. Creatively pricing our products and servicing to allow affordability to customers.

2.0 Company Summary
Tomorrows Leaders is a child development center in Valdosta, GA designed to provide services for
children as young as six months old through 8th grade (after school services). Tomorrows Leaders
specialize in provides child development options 24 hours a day and 7 days a week and after school
options from 1500 2000, Monday Friday.
2.1 Company Ownership
This business will start out as a simple proprietorship, owned by its founders. As the operation grows,
the owners will consider re-registering as a limited liability company or as a corporation, whichever
will better suit the future business needs.
2.2 Start-up Summary
The Sears Family, founders and owners, will handle all business and management decisions within the
company. Mr. Sears will handle the business side specifically while Mrs. Sears handles the oversight
of the children and their development opportunities.
It is estimated that the initial start-up cost for Tomorrows Leaders will be $60,000. This will include
$10,000 in initial costs and $50,000 in liquid assets to cover the business until projected profitability.
The owners will fund 100% of the startup costs with their own personal funds.

Table: Start-up

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund

$10,000

Start-up Assets to Fund

$50,000

Total Funding Required

$60,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised

$0
$10,000
$0

Cash Balance on Starting Date

$50,000

Total Assets

$60,000

Liabilities and Capital

Liabilities
Current Borrowing

$0

Long-term Liabilities

$0

Accounts Payable (Outstanding Bills)

$0

Other Current Liabilities (interest-free)

$0

Total Liabilities

$0

Capital
Planned Investment

3.0 Services
Tomorrows Leaders provides two basic services from our
facilities. The Tomorrows Leaders child development
center is open to children between the ages of 6 months
through 14 years old, year round. The Tomorrows
Leaders after school care is available to school aged
children from Head Start programs 8th grade during the
school year. While Tomorrows Leaders is open 24 hours
daily and 7 days a week, the front office has the
following hours: 8:00 AM 5:00 PM, Monday through
Friday.

Owner - Christopher Sears

$35,000

Onwer - Tonya Sears

$25,000

Other
Additional Investment Requirement
Total Planned Investment

Loss at Start-up (Start-up Expenses)

$0
$0
$60,000

($10,000)

Total Capital

$60,000

Total Capital and Liabilities

$50,000

Total Funding

$60,000

3.1 Company Locations and Facilities

Tomorrows Leaders currently located in a new state of the art facility that was built specifically for
this business. The facility consists of: 10 classrooms, 1 nurse station, reception area, 3 front offices,
kitchen, large community room, indoor gymnasium, and 2 acres of fenced in land w/ two
playgrounds.
4.0 Market Analysis Summary
Tomorrows Leaders is aimed to filling an unfulfilled gap in the child care market. Tomorrows Leaders
will provide individuals an option other than a local baby sitter and provides the only option for
development and growth.

4.1 Market Segmentation

Tomorrows Leaders is primarily targeting 2nd and 3rd shift workers within 10 miles of the greater
Valdosta area.
Shift Workers
Tomorrows Leaders will focus on building a steady client base of 2nd and 3rd shift workers. The core
competency of the company is servicing this client base and keeping a quality relationship with a
significant client base in this demographic is key to future growth within the market.
Standard Workers and Daily Availability
Standard day shift workers and individuals who need to drop on children on a daily bases will be
accepted but marketing plans and budgets will not target this demographic.
Table: Market Analysis

4.2 Service Business Analysis

Tomorrows Leaders will be competing against 20 other child care facilities within the local area.
Indirectly it will go up against 4 other child development centers, but there arent any direct child
care center competitors targeting the 2nd and 3rd shift workers in the market. The direct competition
will come from friends, family and professional baby sitters. While there will be competition for the
market with them, Tomorrows Leaders will be the only child development center in this particular
sub-market.
5.0 Strategy and Implementation Summary
The strategy of Tomorrows Leaders growth plan is hinged upon the care the child receives and the
customer service provided by the staff. Children need to feel welcomed, loved and wanted at all
times while at Tomorrows Leaders. When this happens they will be more inclined to enjoy their
experiences and open to learning the lessons and fundamental life principles being taught.
Parents want to know their children are being taken care of and be able to see educational and social
development with their children. Additionally, when parents know their children are enjoying
themselves, learning valuable building blocks for the future and also then they themselves receive
professional and curtesy support, there will be no reason to look for a different service provider.
Tomorrows Leaders will start with a small workforce of approximately 7 child care providers and work
on maximizing the amount of children that can be supported by those workers. Once that is maxed
out then more workers will be added as needed to ensure continued growth in the market.
5.1 Competitive Edge
Tomorrows Leaders will have the competitive edge over the market with the ability to provide child
care services around the clock. This will open up 40% of the work force that other competitors do

not have access to and will enable the company to gain a strong foothold in the market without
having to compete directly with entrenched veteran companies within the market initially.
5.2 Sales Strategy
Tomorrows Leaders sales strategy is primarily established based on services provided that cannot be
provided elsewhere. There is a demand in the market that will be met by Tomorrows Leaders.
Additionally, the lower price point for Tomorrows Leaders make it a competitive option for customers
currently with other companies once word of mouth starts to spread.
5.3 Sales Forecast
Tomorrows Leaders is excepting to see $396,000 in gross revenue during the first year and to start
turning a profit on the business by the beginning of the third year.

6.0 Management and Organization

As the Personnel Plan shows, the company expects to make gradual investments in care personnel
over the next three years, always keeping in mind the number of children in need of care at the
center. Tomorrows leader will add additional personal as required to ensure standard provider/child
count is not exceeded and in anticipation of growth based on market research.

7.0 Personal Economical Statement

Tomorrows Leaders owners are financially secure and will not be dependent upon the business to
sustain them. The owners will be financing the initial startup costs and provide cash on hand to start
the business.

8.0 Financial Plan

Tomorrows Leader is initially fully funded through the owners personal financing. If growth exceeds
expected rates and capital is required to ensure continued growth then the company will take on the
minimum loan amount needed to promote growth with a SBA loan.

8.1 Break-even Analysis

The Break-even Analysis is based on the average of the first-year figures for total sales by units, and
by operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs.
These conservative assumptions make for a more accurate estimate of real risk.

8.2 Projected Profit and Loss

As the Profit and Loss table shows, the company expects to continue its steady growth in profitability
over the next three years of operations.
Table: Profit and Loss

8.3 Projected Cash Flow

The cash flow projection shows that provisions for ongoing expenses are adequate to meet the needs
of the company as the business generates sufficient cash flow to support operations.
Table: Cash Flow

8.4 Projected Balance Sheet

The following table presents the Balance Sheet for Safe Kids Child Care.
Table: Balance Sheet