Babys Day

Out
Date 17/03/2016

Contents
Executive Summary .................................................................................................................... 3
Business Idea/Concept ................................................................................................................. 4
Business Concept ..................................................................................................................... 4
Target Market, Industry/Business classification ........................................................................ 4
Value Proposition (USP) ........................................................................................................... 5
Implementation Strategy and Implementation Plan .................................................................. 5
Business Model ........................................................................................................................ 7
Proposed Location.................................................................................................................. 10
Internal SWOT Analysis .......................................................................................................... 10
External Swot Analysis ........................................................................................................... 11
Key Success Factors ................................................................................................................ 11
Proposed Legal Form of Business ............................................................................................ 12
Requisite Licences & Permits, Tax Regime, Labour Regime and Regulatory Requirements ........ 13
Promoters Profile...................................................................................................................... 14
The Industry and Market ............................................................................................................ 16
Industry dynamics and analysis............................................................................................... 16
Market dynamics and analysis ................................................................................................ 16
Target Customers - Primary, Secondary and Tertiary ............................................................... 18
Market Segmentation and Reachable Size of Each Segment .................................................... 19
Methodology of Market Research........................................................................................... 21
We will be doing surveys for both market research areas. Surveys will be done by: .......... 21
Market Research Instruments ................................................................................................. 22
Competition Analysis.............................................................................................................. 24
Porters Five Forces Analysis ................................................................................................... 24
Anticipated Market Share ....................................................................................................... 26
Distribution channels ............................................................................................................. 26
Product Life Cycle ................................................................................................................... 28
SWOT Analysis ....................................................................................................................... 29
Strengths ........................................................................................................................... 29
Weaknesses ....................................................................................................................... 29
Opportunities .................................................................................................................... 29
Threats .............................................................................................................................. 29
Marketing Plan .......................................................................................................................... 30

Market entry strategy ............................................................................................................ 30

Pricing Strategy ...................................................................................................................... 31
Positioning ............................................................................................................................. 31
Advertising and Promotion Strategy ....................................................................................... 32
Distribution Strategy .............................................................................................................. 33
Sales Operation Planning ........................................................................................................ 33
Post Entry Market Growth and Sustenance Strategy................................................................ 34
Positioning Progression Strategy............................................................................................. 34
Customer Base expansion, Customer Management & Relationship Strategy ............................ 35
Sales and Marketing Plan ....................................................................................................... 35
Target Market Segment Strategy ...................................................................................... 35
Market Needs .................................................................................................................... 35
Service Business Analysis .................................................................................................. 35
Sales and Marketing Manpower Plan ...................................................................................... 36
Operations Plan ......................................................................................................................... 36
Service Technology and Process .............................................................................................. 36
PROCESS Layout ..................................................................................................................... 37
Supply Chain Identification ..................................................................................................... 37
Establishment ........................................................................................................................ 38
Development ......................................................................................................................... 39
Operational Activities Plan ..................................................................................................... 40
Operational Manpower Plan................................................................................................... 41
Proposed/Envisaged Organization Structure ............................................................................... 44
At Start Up Stage .................................................................................................................... 45
At Growth Stage ..................................................................................................................... 46
At Maturity Stage ................................................................................................................... 47
Recruitment and Talent Development .................................................................................... 47
Estimated Cost of Project and Envisage Source of Funding .......................................................... 48
Cost of Project........................................................................................................................ 48
Sources of Funding ................................................................................................................. 49
Estimated Financials .................................................................................................................. 49
Factors that may affect Financials/Sensitivity .......................................................................... 52
Proposed Key Performance Indicators .................................................................................... 52

Executive Summary
In todays fast paced world, the number of nuclear double income families are on the rise.
Most of the families with infants or young children have a difficult time to provide proper
child care alongside their busy work schedules. As a result, many mothers quit their jobs for
the sake of proper upbringing of the child. Lack of quality day care centers is a major issue.
Also due to hectic work schedules, it becomes tough for parents to drop and pick up their
children according to their convenience. Most of the day care centers do not provide constant
updates of the child and his/her activities.
Our idea addresses all the above issues. It intends to provide quality day care service along
with customized pick up and drop facilities for the children and flexible timings for parents.
Our day-care facility, which we have names as Babys Day Out will initiate at a locality with
a large double income residential households like Hinjewadi, Pune. This will provide us the
ground reality and help us evaluate the idea. Depending on the success we will expand to
other localities. Our crche will cater to kids ranging from 1-4 years. It will provide a holistic
environment for the development of the child. We intend to provide quality services and
capture the market.
Our concept offers a special value proposition of

Flexible timings to suit the parents requirements.

Doorstep pick-up and drop facilities for the convenience of the parents.
Maintaining the vaccine calendar of the child.
Providing constant updates to the parents about the child via an app.

The target market segment will be working parents in the area. The area of operation has to
be selected so that the number of such clients is high. Initial publicity can be done via
pamphlets in offices, via social media platforms and also promotion at society events. We
would need state-of-the-art infrastructure including office, staffroom, sick-bay, indoor and
outdoor play areas, bathrooms, kitchen, small vehicles for transportation modified according
to the needs of the kids. Well trained staff and medical professionals like nurses and on call
paediatricians will be required. Public liability, accident and equipment liability insurances
have to be kept into account. The local authority has to assess the premises and playgrounds.
The Medial Officer of Health has to issue an Environmental Health Permit for the premises.
The staff would be verified by police authorities.
There is and will be future competition in this field. Our pick-up and drop facility model
might be adopted by other crches in the future. With the need of the hour for day-care
centers, more numbers might come up. However, we intend to capture the market with our
quality services. We want to establish a brand that provides excellent day care facilities along
with pick-up and drop facilities for the child. Once established, we intend to sustain the brand
by constantly improving ourselves. We intend to build our brand on goodwill and customer
trust.

Business Idea/Concept
Business Concept
Child care in the child's own home is traditionally provided by a nanny, or by extended
family members including grandparents, aunts and uncles. A crche is a care facility of a
child by a person other than the child's legal guardians, typically performed by someone
outside the child's immediate family. Child care is provided in nurseries or crches or by
a nanny or family child care provider caring for children in their own homes. It can also take
on a more formal structure, with education, child development, discipline and even preschool
education falling into the fold of services.
Our day care facility will initiate at a locality with a large double income residential
households like Hinjewadi, Pune. This will provide us the ground reality and help us evaluate
the idea. Depending on the success we will expand to other localities. Our crche will cater to
kids ranging from 1-4 years. It will provide a holistic environment for the development of the
child. We intend to provide quality services and capture the market.
Our facility will have the following features and value added propositions:

Pick up and drop facility: We will provide doorstep pick-up and drop facility of the
child as per the guardians convenience. This service will be available only on special
subscription.
Flexible timing: We intend to have 24/7 operational hours, there by assisting working
parents across various work schedules.
Child monitoring via app: In the future, we intend to provide the parents the details of
their children at any point of time via app (video updates, eating habit details,
vaccination details etc.)
Customized care programs: Care programs will be designed pertaining to each
individual childs need and their parents requirement.
Quality staff: Our staff will be well experienced, trained and with thoroughly verified
backgrounds.
Age appropriate programs: The activities will be designed as per the age of the child.
The individual traits of the child will also be considered in the programs.

Target Market, Industry/Business classification

Our target market can be dived in three groups. They are as follows:
Primary Target Group: Dual income households with infants, especially those working in the
IT sector as the crche will be situated at residential areas near IT parks. (Wakad, Magarpatta,
Viman Nagar).

Secondary Target Group: Parents with erratic working hours. Working in shifts are normal
for IT sector employees. After long night shifts, it becomes physically taxing for the parents
to take care of the child. Also if both parents work on night shifts, our crche is ideal for tem
as it operates 24/7.
Tertiary Target Group: Households (may or may not be dual income) with kids old enough to
attend Pre-School.

The estimated market size is

Approximate number of working professionals in Hinjewadi, Pune =~200000
Approximate women workforce = ~40% = 80,000
Approximate married women in the women workforce = ~40% of 80,000 = 32,000
Approximate women with infants or toddlers = ~10% of 32,000 = 3200
Approximate number of these families residing around Hinjewadi = ~50% of 3200 =
1600 families.
Our target population is the above 1600 families.
Even if at least 50% of them require crche services we have 800 families as customer
base.

Value Proposition (USP)

The concept offers a special value proposition of

Flexible timings to suit the parents requirements.

Doorstep pick-up and drop facilities for the convenience of the parents.
Maintaining the vaccine calendar of the child.
Providing constant updates to the parents about the child via an app.

Implementation Strategy and Implementation Plan

We intend to implement the plan in phases. The pilot phase will be launched in Hinjewadi.
Thereafter we will adapt to necessary changes (if needed) to streamline the process. For the
pilot process we have the below strategy in mind:

Service Our service aims to provide state-of-the-art day care facilities to parents
with infants and toddlers. We also aim to provide customized services according to
the work schedules of the parents. Quality day care along with constant updates about

the child will be provided. Pick up and drop facilities for the child will be provided in
the timings asked by the parents. This is our value added proposition.
Distribution We intend to have a robust distribution network for the transport
facilities. Customized transportation vehicles have to be acquired for the children.
Food and other materials like toys, diapers, etc. have to be procured from quality
suppliers.
Technology We intend to build a mobile app to provide the parents constant
information and updates about their children. This will we done via web links for
video updates, vaccination alerts of the child, nutrition values, health updates,
progress in the crche, specific activities of the child, etc.
Location The location will be near residential areas with a huge working class
population. This will be strategically located so that the pick-up and drop facilities are
easily executed. Example, Hinjewadi, Pune.
Brand We intend to build our brand by goodwill and quality of work initially. Once
the business is successful we plan to increase our brand value by tie-ups with
childcare brands like Horlicks (GSK-CH), Huggies (Kimberly-Clark), etc.

Business Model

Customer
Our customers are primarily dual income households of IT professionals with infants. These
parents are busy with a erratic schedule. However we are not only confined to these families.
Any family with kids old enough to join pre-school are our target customer.
Customer Relationship
Once a child has been enrolled, we will make sure to nurture our bonds with not only the
children but also with their parents through various engagement programs:

Kids' Events

Expert
Advice

Workshops
Customer
Relationship
Cross-sell
Products

Regular
Update
Parental
Connect

Offered services
1. Crche: Dual income households and households with kids old enough to go to playschool
2. Pick up and Drop service: Doorstep Pick up and Drop service available only to those
who subscribe for it. Kids will be picked up from their homes within 30-45mins of the
parents call and similar time will be taken to drop them off to home
3. Flexi-timings: For parents who work in shifts. The crche will be operational 24/7.
The parents can avail the service as per their convenience.
4. Updates via apps and web-links: Todays tech-savvy generation are well versed with
apps and web-links. From these they can keep a constant check on their kids too. The
app will keep them updated on their kids progress, food/nutrition details, vaccine
calendar etc. The web-link will be useful to see live video updates of the childs
activities.
Key Activities
1.
2.
3.
4.

Quality service provision to our clients.

Maintaining safety standards to ensure that the kids are safe.
Recruiting quality staff who can take care of the kids efficiently.
As a major value proposition of our daycare is to allow parents to connect to their kids
over app, we must ensure that we evolve with technology.
5. Providing in house medical facility so that any emergency situation can be handled
properly and also so that the nutrition of the kids can be well taken care of.
6. Promotional activities are very important for growth.

7. Business tie-ups with possible partners like manufacturer and retailers of baby care
product.
Key Resources
1.
2.
3.
4.
5.
6.

Location
Approval from authorities
Infrastructure
IT infrastructure
Staff
Security

Key Partners
1.
2.
3.
4.
5.
6.

Toy stores
Book stores
Baby care product manufacturers
Baby care product retailers
Schools
Pediatric hospitals

Cost
Startup expenses
Legal
Stationary
Brochures
Insurance
Rent
Play equipment
Playground preparation
Furnishing
Cars with specially altered baby seats
(pick up and drop

Revenues
1.
2.
3.
4.
5.
6.
7.

Baby monitoring
Pick up and drop services
24/7 monitoring facility
Events and workshops
Album making and videography
Cross-selling baby products
Pediatric services

Other expenses
Payroll
Advertising
Food
Travel
Facility repair
Utilities
Phone
App and website
development

creation

and

Proposed Location
Pune is one of the fastest growing cities in India, with a population of over 3 million. It is
home to a diverse population. The working population in Pune is increasing by the day. The
emergence of the IT industry in Pune has increased the working population exponentially.
With the number of double income households on the rise, the demand for day care centers is
increasing so that women are able to continue working.
The geographical territory for our day care center is an urban location like Hinjewadi in Pune.
There are about 2 lakhs working professionals in Hinjewadi itself and most of them reside in
the nearby areas. There are a large number of double income households. Hence, the demand
for day care centers would be on the rise in such an area. Also, flexibility in timings is a
requirement in this area as the IT industry works in different shifts. So, our value proposition
of flexible timings would be beneficial for our customers. According to a recent report in The
Economic Times, the day care center industry is growing at a rate of 20-30 percent per
annum and parents are willing to pay considerably high amounts of money to put their child
in the right day care centers. Therefore, a large customer base can be targeted for our day care
center in a geographical location like Hinjewadi.

Internal SWOT Analysis

Strength

Weakness

Unique USP
Location
Quality of Staff
Networking

Language
Location
Lack of Experience
Cashflow

Opportunity

Threat

Networking
Technology
Expansion
Marketing

Competition
Economy
Market demand
New entrants

External Swot Analysis

Strength

Weakness

Everlasting Demand
Change in demography
Increase in nuclear families

Customer perception
Staff quality
Flexibility

Opportunity

Threat

Unorganized market
Few big players
Technology

Economy
Market demand
New entrants

Key Success Factors

In todays fast paced world, the number of nuclear double income families are on the rise.
Most of the families with infants or young children have a difficult time to provide proper
child care alongside their busy work schedules. As a result, many mothers quit their jobs for
the sake of proper upbringing of the child. Lack of quality day care centers is a major issue.
Also due to hectic work schedules, it becomes tough for parents to drop and pick up their
children according to their convenience. Most of the day care centers do not provide constant
updates of the child and his/her activities.
Our idea addresses all the above issues. It intends to provide quality day care service along
with customized pick up and drop facilities for the children.
We want to be unique with our quality services and infrastructure. Also our USP of pick-up
and drop facility has not been implemented by any other crche in Pune. We also intend to
provide flexible timings according to the parents working hours. A customized program to
suit each child is also one of our USPs. Providing vaccination updates about the child is one
of our key services. Providing constant updates to the parents about the child via an app is
one of our unique features.

Proposed Legal Form of Business

Choosing the Business Entity
While we could operate our day-care business as a sole proprietorship or partnership, we
should consider using a legal form that protects us from personal liability, such as a limited
liability company or corporation. A day-care center may not be the most dangerous business,
but we will be taking care of the most precious thing in the lives of our clients: their children.
We will be responsible for the health and safety of those children, many of whom may be
toddlers, for hours every day. There is always a possibility that a child could be injured while
on the premises of our day-care businessin which case we would want the business to be
responsible for any liability.
Licenses and Permits
Day-care businesses are subject to specific licensing requirements and operating without a
license can lead to significant penalties. In most cases, the licensing is handled through a state
agency such as a Department of Human Services or Department of Social Services. The
information we may be required to provide in applying for a license varies by state, but may
include such items as the number and ages of children to be cared for, confirmation that our
location meets fire safety requirements (which may involve an inspection), and information
regarding whether we or any or our employees has a criminal record. We will also likely be
required to pay a license application fee.
Apart from state licensing, we should keep in mind that there may be local zoning laws that
would prohibit running a child care business in a particular location. Even if the child care
center is permissible under the local zoning ordinance, we may be required to obtain a
compliance certificate from the local zoning authority.
Health and Safety
While law has general requirements regarding the health and safety of children in child care
settings relating to such matters as building safety, employee training, and disease prevention,
it is largely left to the individual states to set their own specific regulations. State agencies
often publish long lists of such regulations for child care centers. Some regulations may vary
depending on whether the day-care operation is located in a home or a separate center.
Among the items that may be regulated are:

the maximum number of children a single staff member can supervise, which may
vary depending on the age of the children

bedding and sleeping equipment

where and how infants sleep

milk or other nourishment provided to infants and to older children

diapering and toilet use

Insurance
There are particular risks associated with operating a child care center, primarily those related
to the health and safety of infants and small children. These are on top of more generic
business risks such as fire, theft, or other sources of property damage or personal injury.
We should try to work with an insurance agent who has previous experience writing policies
for child care providers. We should consider coverage for sexual abuse or molestation, for
corporal punishment, and for employees who are child care providers. In general, we should
make sure we have an excellent general liability policy.
Employees
Most day-care centers have employees and, in many cases, there can be relatively frequent
turnover. We should be informed about basic employment law issues such as illegal
discrimination, workers compensation, and how to handle the hiring process. With regard to
hiring in particular, we would:

Create a useful job application that does not include illegal questions

Check references or make other pre-employment inquiries -- again without violating

privacy laws or otherwise seeking illegal information, and

Ask interview questions that are both useful and legally permissible.

We should keep in mind that there are some employment laws that are specifically relevant to
day-care workers, such as state training requirements and rules relating to criminal records.

Requisite Licences & Permits, Tax Regime, Labour Regime and

Regulatory Requirements

Register business name under Shop Act

Insurance of Public liability
Accident insurance
Equipment liability insurances
The local authority has to assess the premises and playgrounds.
The Medial Officer of Health has to issue an Environmental Health Permit for the
premises.
The staff has to be verified by police authorities.

Promoters Profile
The four main functions of our business revolves around the following

Marketing

Human
Resources

Baby's
Day Out

Finance

Operations

We, four partners, will be taking care of one aspect each. Below are the detailed bio-data and
explanation of the roles and duties assigned to each promoter:

Sahana Banerjee (HR)

Sahana is a software emgineer with 2+ years of
experience in IT industry.
she is currently persuing HR from SCMHRD, and also
has HR realted work experience from her IT industry
days. She was an active memebr of her project account's
onboarding and off-boarding team.
She has won several client accolaedes for her client
relationship skills.
This makes her the most suitable candidate to handle
HR of our organization.

Sneha Mohanty (Marketing)

Sneha is a software engineer with over an year of
experience in the IT industry. She has been in Pune for
the last 3 years and thus has extensive knowledge of the
city and its people.
Also she has a vast network in the IT industry of Pune.
Several of her collegues have toddlers and thus can
easily gather vauable inputs regarding the exact
problems faced by parents .
Her knowledge of the city and its people makes her the
perfect candidate for marketing our daycare centre.

Jannu Pegu (Operations)

Jannu is a software engineer with 2 years of experiene
with an Indian IT giant. He has won awards from the
company for being an excellent communicator.
Jannu comes from a family of entreprenurs (exportimport) and has helped his father in maintaing a
warehouses.
He thus has the required skill-set and knowledge for
handling the oprations part of the business.

Dhirendra Kanojia (Finance)

Dhirendra is a Bachelor of Commerce with accounting
major from Delhi unversity.
He has worked in the accounts section with a retail
giant for two years. His knowledge of finaince and the
monetary policies is impeccable. He deals in the stock
market regularly and is very passionate about
investing.
This knowledge makes him the best candidate for
handling the organization's finances.

The Industry and Market

Industry dynamics and analysis
Obtaining affordable, quality child day care, especially for children under age 5, is a major
concern for many parents. Child day care needs are met in different ways : care in a child
home, care in an organized child care center, and care in a provider home known as family
child care are all common arrangements for preschool-aged children. Older children also may
receive child day care services when they are not in school, generally through before- and
after-school programs or private summer school programs. With the increasing number of
households in which both parents work full time, this industry has been one of the fastest
growing in the Indian economy.
The industry consists of establishments that provide paid care for infants, toddlers, preschool
children, or older children in before- and after-school programs.
Two main types of child care make up the child day care services industry: center-based care
and family child care. Formal child day care centers include preschools, child care centers,
and Head Start centers. Family child care providers care for children in their home for a fee
and are the majority of self-employed workers in this industry, which does not include
occasional babysitters or persons who provide unpaid care in their homes for the children of
relatives or friends.
The for-profit sector of this industry includes centers that operate independently or as part of
a local or national chain. Non-profit child day care organizations may provide services in
religious institutions, YMCAs and other social and recreation centers, colleges, public
schools, social service agencies, and worksites ranging from factories to office complexes.
The number of for-profit establishments has grown rapidly in response to demand for child
care services. Within the non-profit sector, there has been strong growth in Head Start, the
federally funded child care program designed to provide disadvantaged children with social,
educational, and health services.
Recognizing that the unavailability of child care is a barrier to the employment of many
parents, especially qualified women, and that the cost of the benefits is offset by increased
employee morale and reduced absenteeism, some employers offer child care benefits to their
employees. Some employers sponsor child care centers in or near the workplace, while others
provide direct financial assistance, vouchers, or discounts for child care or after-school or
sick-child care services. Still others offer a dependent-care option in a flexible benefits plan.

Market dynamics and analysis

The Indian child care market has witnessed and escalating growth since FY2007, owing to
the number of pre-schoolers and the number of escalating private establishment in the
country. The child care industry has grown by a CAGR of 16.5%.

The child care industry in India is dominated by the unorganized market wherein many small
local players exist along with several neighbourhood institutions which provide child care
and pre-school services. The organized market is influenced by Government institutions. The
organized market recorded a contribution of 13.5% in FY2011. The private sector market
has been expanding through a number of franchisees.

A crche in a city like Pune would be a viable business idea considering the fact that the
working population is increasing by the day and the number of double income households are
also on the rise. There is no doubt that there is room in the market for a high-quality child
care facility. Our crche has a focus on meeting the local need for child care services in and
around Hinjewadi and Wakad. Our market ranges with customers comprising of full time as
well as part time working couples. Since our crche provides complete flexibility in timings,
the market size would be large. However, maintaining and further enhancing our reputation
in the community is crucial to gaining additional market share of this target market.
The child care business is lucrative, as mentioned before. As a result, there are other centres
that provide quality care for children in and around our targeted area. The child care industry
is split between large, commercially-run centres and smaller, locally-owned centres. Our
crche will compete with both. Flexible timings, quality staff and care and the availability of
pick-up and drop facility for the kids would give us the competitive edge.

Target Customers - Primary, Secondary and Tertiary

The target customers are as follows:

Primary Target Group: Dual income households with infants, especially those working in
the IT sector as the crche will be situated at residential areas near IT parks.
Secondary Target Group: Parents with erratic working hours. Working in shifts is normal for
IT sector employees. After long night shifts, it becomes physically taxing for the parents to
take care of the child. Also if both parents work on night shifts, our crche is ideal for tem as
it operates 24/7.

Tertiary Target Group: Households (may or may not be dual income) with kids old enough
to attend pre-school.

Market Segmentation and Reachable Size of Each Segment

Market segmentation can be done initially on the basis of offered services. They can be
classified as follows:

Crche: Dual income households and households with kids old enough to go to playschool. We estimate 70% of our target customers to fall in this segment.
Pick up and Drop service: Doorstep pick up and drop service available only to those
who subscribe for it. Kids will be picked up from their homes within 30-45mins of the
parents call and similar time will be taken to drop them off to their homes. Since this
is a new facility and not much awareness is there about it, as estimated 10% of our
target customers might opt for this service.
Flexi-timings: For parents who work in shifts. The crche will be operational 24/7.
The parents can avail the service as per their convenience. An estimated 20% would
fall in this category, considering the current scenario in the IT sector.
Updates via apps and web-links: Todays tech-savvy generation is well versed with
apps and web-links. From these they can keep a constant check on their kids too. The
app will keep them updated on their kids progress, food/nutrition details, vaccine
calendar etc. The web-link will be useful to see live video updates of the childs
activities. As all parents are expected to be tech-savvy, an expected 80% of our target
customers would opt for this service.

As the day care industry is very large, market segmentation is also done based on some
industry standards. We can make use of these industry benchmarks for our business plan.
Some of the industry standards according to the current data available are:

Methodology of Market Research

Market research target audience
1. Working married couple having infants.
2. Households (may or may not be dual income) with kids old enough to attend preschool.

Methods to be followed for market research

Surveys- Since we expect our customers to be very busy as majority of them are from
working class we will be conducting short interviews and giving them questionnaires to know
their opinion on crches.
We will be doing surveys for both market research areas. Surveys will be done by:

Interviewing- We will do interview with both working married couples as well as

households with kids old enough to attend preschool. By doing this we will try to
understand our target customers view on Crche, their expectation from us and at the
same time we will try to understand their needs.

Questionnaires- We will distribute set of questions to our target customers for

knowing answer of topics needed for our business. Questions such as need for crche,
interest of audiences, customer requirement etc. would be covered. Questionnaires

would be typically closed ended i.e. multiple choice questions based on Likert scale
or options based.

Market Research Instruments

1. Questionnaires: This may be designed as open ended i.e. unstructured or closed
ended i.e. structured.
Structured- This are basically short question type having multiple choice
questions. This allows some control or guidance given to answers as the
respondents need to give answers based on the options provides. This type is
really useful in our scenario as our target customers are working class and they
dont have the luxury to answer an open-ended questionnaire.
Some sample questionnaires are as below:

2. Interviews: This is done typically in two different ways structured and

unstructured.
Our interview process will be based on unstructured interview.
Unstructured interview will give us the scope of modifying our questions and
rearranging the order based on the interviewee response.
3. Focus group: As the name suggest it basically focuses on the respondents
subjective responses and experiences on the subject matter to elicit more
information. This instrument will be very useful in understanding existing
competitors customer and knowing their positives and negatives. This will also
give us an idea about present market size in approximation.
4. Rating scale: This is a recording form used for measuring individual's attitudes,
aspirations and other psychological and behavioral aspects, and group behavior.
This will help us to know the degrees of a particular characteristic.
5. Opinion poll: Opinion polls are usually designed to represent the opinions of a
population by conducting a series of questions and then extrapolating generalities
in ratio or within confidence intervals.
This will give us a fair idea about present and potential market size.

Competition Analysis
Current and possible future competition:

Current Competitions
Crches like Pumpkin Patch Day Care at Wakad, Joy Day Care Centre at Pimpri are
our local competitions. Neither of them, however, provides the value propositions that
we are suggesting. They operate on fixed timings and also it is the parents duty to
drop or pick up the child.
Baby sitters are also prevalent in these regions. They are either permanent domestic
helps or baby sitters who work on ad-hoc basis.
Future competitions
As the working population is increasing and IT parks like Hinjewadi are expanding
every day, the customer base will also gradually keep on increasing and so will the
number of crches and baby sitters. With the need of the hour for crches, competitors
could provide various value added services and try to capture the market.

Value propositions offered by current competition

Already captured market The existing crches have already captured the market due
to their long operational time.
Existing customer base They have a loyal customer base that is already aware of
their exact value propositions.
Experience They have more experience in the field in all aspects including staffing,
channels, marketing, child care, etc.
Operationally established They have well settled and established infrastructure and
channels. They are aware of the intricacies and short comings of the business.

Porters Five Forces Analysis

A detailed Porter's Five Forces Analysis Assessment for our service has been provided. It
encompasses the supply-side and the demand-side dynamics, internal rivalry, threat of
substitutes and threat of new entrants.

Competitive Rivalry within the Child Care Industry

Rivalry is high due to there being so many different competitors. Larger companies within
the child care industry operate on a much higher level than local organizations. They also
have economies of scale in advertising and administration. However, smaller local
organizations can use more convenient locations and local networks to their advantage to
gain a larger market share of the local communities' business. Converting customers who
use substitute products is another large part of the competitive rivalry within the industry.

Threat of Substitute Products

Substitute products include non-profit organizations and employer-sponsored childcare
facilities. These types of facilities are generally found in larger corporations or near highly
industrialized areas. Other direct competition also includes established child care facilities,
personal babysitters, and the stay at home parents.

Threat of New Entrants

The possibility of new entrants in the industry is high due to the ease of obtaining the
necessary licenses. Also, the number of state-supported pre-kindergarten programs that are
housed in public schools continues to grow. This hurts enrolment at private facilities and
makes it hard to stay alive financially.

Bargaining Power of Customers

Customers have some bargaining power. There are many options within the child care
industry, but finding high-quality care that is also reliable, affordable, and accessible can be
very difficult for working parents. They tend to flock to businesses who can offer products
or services that meet their need for a low price.

Bargaining Power of Suppliers

Suppliers have the most bargaining power because they're able to offer greater value
without reducing price. Although there are substitutes, it is hard to put a price to value. The
greater the perceived value of child care services, the less likely customers are going to
haggle on the price and the greater the chance competitors' customers will want to register
their child.

Anticipated Market Share

Since our day care center offers the best facilities at a considerable price, we hope to capture
a sizeable market share.

Crche since we are offering quality day-care services, we estimate to capture 20%
market in this segment.
Pick-up and drop facility we are the sole day care center offering this facility and
hence we have the whole segment in this facility. We expect to capitalise on this USP
of ours and gain maximum market share with it.

Flexible timings since we are offering 24/7 working hours, we hope to maximize
market share in this segment also. We estimate to capture 40% market in this
segment.

Updates via app since we are providing vaccine records and nutrition needs of the
child on the app along with the video streaming facility, we expect to capture the
market with this USP. We estimate to capture 40% of the market in this segment as
we grow our business.

Overall we expect to capture 25-30% of the market as we grow our business.

Distribution Channels
Getting the word out about the day-care takes more than simply printing postcards and
launching a website. We have to get the right message in front of the right audience, at the
right time.
We would be adopting the following distribution channels
Direct mail
Direct mail is the best way to reach a particular clientele. A calculated direct-mail campaign
represents an investment in profit and should be approached with dedication. The mailing list

building tools available can be used to develop a database of your own customers and define
a mailing list comprised of likely prospects.
Repetition is the key: Instead of one postcard campaign, a strategy that incorporates multiple
direct mailers during a six-month period can be developed. This contributes to our day-care
branding efforts and will allow us to develop long-term relationships. By the time we launch
our incredible offer, we will have established trust and credibility and will yield a higher
response rate.
The direct mail marketing campaign for our day-care would be as follows
Week one: a brochure introducing our potential clientele to our day-care will be sent. A
personal tour at their convenience will be offered. We can add value by including a panel
with tips for choosing a day-care provider or developmental needs of children of a specific
age.
Week six: a flyer that highlights recent news about our day-care can be sent. Photos (with
permission) of children engaging in activities or showcases your children's artwork,
experiments or other creations can be sent. A "Meet the Staff" section, complete with photos
and qualifications, can lend trust and confidence.
Week 12: a booklet about day-care safety and childhood learning principles can be sent. A
statement about our day-care's philosophy and approach will be included. The booklet would
be educational in nature, but would also be a branding exercise.
Week 18: a calendar with stickers children can use to mark special dates or complete a scene
would be sent. Important dates, tips, advice, reminders and other day-care-branding titbits
that parents will take note of can be added.
Week 24: a direct-mail postcard inviting parents to our open house or other special event
would be sent.
Week 30: a follow-up greeting card to everyone who attended your day-care would be sent.
A gift voucher or gift coupon to express our appreciation will be included. We would also
consider sending greeting cards to families who received the postcard but did not attend:
"We're sorry we missed you ... Can we answer any questions for you or schedule a private
meeting?"
Advertisements
We can deploy advertisements online or in the yellow pages, newspapers and magazines; as
well as on the radio, television, billboards and any number of published mediums. We can
also take our ads street side by placing flyers and posters on community bulletin boards, and
university, office and industrial social hot spots. Word of mouth is the most powerful
advertiser, so we have to make sure friends, family, and colleagues know what we do and are
prepared to spread the word for us. We should consider handing out stickers and business
cards to everyone we know for distribution.
Following up
Test, track and tweak: These three Ts will help us develop winning day-care marketing
campaigns. We should always test different variations of our marketing materials on small

portions of our mailing list before launching the full campaign. Sometimes a single word
change can make a big difference in return on investment.
We should track our response rates and record who responds so we can further define our
target demographics. We should tweak our subsequent marketing materials to cater to this
audience. We should keep a database of customers and respondents, and evaluate
recognizable trends so we can customize our offers. This is just another form of knowing our
customers, but from an analytical perspective it allows us to make intelligent business
decisions based on honest, proven statistics.

Product Life Cycle

A product life cycle shows the four stages that all products go through in their lifetime. However, the
amount of time they take to get to each stage and how long they stay there depends on the level
of success they achieve.

Introduction
The introduction stage is when a product is newly introduced to the market and wants
potential customers to hear about it. It tries to raise awareness by focusing mainly on the four
Ps (Product, Price, Place, and Promotion). Our business plan is already in the growth stage
as there are many day care centers in Pune which people are aware of. Hence, our day care
center will be a new entrant in the market.
Growth
The growth stage is when the product has made an impact on the market and is building
customers regularly. Our business plan is in the growth stage because it has made an impact
in the market but it still has to build up customers. There is scope for more growth.

Maturity
The maturity stage is when the product has reached its peak. However now it looks to remain
there with high and regular sales with existing customers. Our business plan would reach a
maturity when the number of day care centers is more than enough to meet the rising
demand. It would reach a maturity when the value propositions that a day care center can
offer would exhaust and there would not be scope for innovation left.
Decline
The decline stage is when the products demand falls and is not wanted by many. At times the
product might be taken off the market due to a poor rate of success. The shrinkage in market
for day care centers could be due to the saturation in the number of day care centers, i.e.,
many day care centers in the same vicinity.

SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the day-care
center, and describes the opportunities and threats facing Babys Day Out.

Strengths
A sophisticated and effective learning system.
Excellent USPs like flexible timings, pick-up and drop facility and app based updates that
will help us to capture the market.
An educated customer base that recognizes the benefits that Babys Day Out offers.
Weaknesses
A lack of visibility due to the newness of the operations.
The ability to attract and keep well trained employees.
The inability to perfectly forecast 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 Babys Day
Out.
Increased revenue as more and more double income households are increasing, thereby
unable to care for 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 Babys Day Out.
Unfounded "public scares" regarding child care.

Legal liability issues, either one large suit against Babys Day Out, or significant increases in
premiums due to changes within the operating environment of the industry.

Marketing Plan
Market Entry Strategy
Babys Day Out will enter the market by capitalizing on the customer needs. The needs and
the strategy are as follows:

Selection: A complete service offering of child care and learning development for toddlers.
Accessibility: The facility will be centrally located around Hinjewadi and will be open at all
times to meet the needs of the parents.
Customer service: Treating the customer like they are the most important customer that
Babys Day Out will have would be reinforced in all employee training programs. The
service regarding the pick-up and drop facility, customized learning programs and app based
updates would be of top quality.
Competitive pricing: The pricing would reasonable relative to the services offered.
Certain specific strategies to reach the market are:

Project a professional image

o We would evaluate our facility as if we were a customer seeing it for the first
time. Is it clean, neat, cheerful and child-appropriate?
o We would consider printing business cards. They are cheap and easy, and
reflect professionalism.
o We would prepare a one-page business description that describes our day-care
philosophy and general operation to interested parents. We would have our
policies and contracts neatly printed and ready for parents to examine.
Cheap and free advertising
o We would submit news about training and certification that we receive to the
local newspaper's professional advancement column if possible.
o We would get to know the owners of local businesses whose employees may
need day-care. We would leave our card and one-page business description at
the business.
o We would visit nearby schools and leave information with the office staff
about our business. We would also advertise in primary school PTA
newsletters to reach parents.
o We would give talks on childcare topics to PTA, and other local groups.
o We would carry our business cards and hand them out liberally.
We would network with other providers, who can refer extra business to us.
Use current customers as the best source of new business.

Parents looking for childcare rely on the recommendations of their friends. So,
we would be sure to tell our current parents that we appreciate their referrals
of other children to the day-care.
Use minimal paid advertising
o TV, radio and newspaper advertising has not been effective for most day-care
providers.
o Printed brochures may be effective along with a well-stated one-page
description of our day-care. Billboards are also an effective method.

Pricing Strategy
Since there are a number of other day-care centers in the vicinity, we would have to keep our
pricing competitive. However, according to a recent survey by Economic Times, parents are
willing to pay as much as 20000-25000 per month to put their children into quality day-care
centers. Keeping market trends, competitors and other factors in mind, we have come up with
price of 20000 per month for our service. It would vary depending upon the specific services
that the customers avail such as pick-up and drop facilities, customized training programs,
etc.

Positioning
Babys Day Out will position itself as an advanced day care service that offers unique
learning and developmental programs for toddlers. The positioning will be achieved in part
by leveraging Babys Day Outs competitive edge:

Specialized training and quality staff: The facility can only be as good as the
teacher/assistants. With this in mind, we would have a specialized training program
that all teachers and assistants are put through so they are proficient at teaching the
specific programs that Babys Day Out would develop.
Innovative learning programs: Typical learning programs for toddlers focus on
specific traits and only work on one trait/skill at once. While this is successful in
reinforcing the skill, it is often very difficult for the child to appreciate the
interrelationships of the different skills. Consequently, the child can learn the skill,
but has difficulty applying the skill when faced with multiple stimuli. We would focus
on Intertwined Learning Systems that teaches skills not in isolation of each other, but
taught together. It would strongly support the assertion that when the skills are taught
together, just as you would expect to encounter them in real life, children are able to
assimilate the new task into their skill set much quicker.
Special Facilities: Our pick-up and drop facility will help us position in the market.it
is a unique facility which is not offered by other day-care centers. Also, our additional
facilities offered in the app such as nutritional needs of the child and vaccine updates
would set us apart from our competitors.

Advertising and Promotion Strategy

As we are starting new, we would focus on advertising strategies that are reasonably priced
and reach a large customer base.
Flyers - One inexpensive way to advertise our center is to post flyers in public buildings,
such as shopping centers, markets, laundromats, restaurants and community centers. We
would get permission from the owner(s) or governing body (e.g., managers, board of
directors) to use these facilities before posting our flyers because some public buildings may
prohibit solicitation.
Brochures - Distributing brochures is another good way to advertise our center. We would
take brochures or flyers to the employment offices, libraries, schools, personnel offices of
businesses and industries and to government agencies, hospitals, shops, women's groups,
colleges and universities.
Business Cards These are an excellent, inexpensive way to advertise our center. We would
have business cards printed in lots of 1,000 that include our name, address and telephone
number, the hours, and the ages of the children we would care for. We would ask parents,
friends and relatives to pass them out to interested people at work. We would take them along
to pass out when we take the children for walk in the neighbourhood. We would go to
elementary schools nearby, introduce ourselves to the office staff, and give them some of our
cards and flyers. Anyone who works with families may be able to make referrals to us paediatricians, parental groups, business or civic organizations are good sources. We would
provide them with business cards, flyers or brochures on our center. If they make a referral
they will have an idea of the kind of service we will be or are providing and can talk
knowledgeably to the prospective client.
Networking - Perhaps one of the best ways to market our center is through networking. Since
most parents choose their child's caregiver from word-of-mouth, we would talk to people
personally. We would get the word out about us and our program to people who might have
the opportunity to recommend us. Networking would add a personal credibility to our service
that advertising can't. People more readily believe what their friends and families say about a
product or service than what an advertisement suggests. This is primarily because
advertisements are designed with the intent to get you to purchase a certain product/service at
any cost while word-of-mouth referrals are based on an individual's use of a product/service.
Since most people value their families' and friends' judgment about a service more than an
advertisement, parents will more likely choose our center.
Classified ads We would place an ad in the classified section of our local newspaper. We
would announce our opening in the business section as well as other feature sections. Many

people read the business and classified sections of the newspaper during their commute to
and from work. Placing an ad in these sections would increase our clientele base.

Distribution Strategy
Our distribution strategies would be mainly through direct mailing lists and advertisements of
various forms.
Direct mail is the best way to reach a particular clientele. A calculated direct-mail campaign
represents an investment in profit and should be approached with dedication. The mailing list
building tools available can be used to develop a database of your own customers and define
a mailing list comprised of likely prospects.
Instead of one postcard campaign, a strategy that incorporates multiple direct mailers during a
six-month period can be developed. This contributes to our day-care branding efforts and will
allow us to develop long-term relationships. By the time we launch our incredible offer, we
will have established trust and credibility and will yield a higher response rate.
We can deploy advertisements online or in the yellow pages, newspapers and magazines; as
well as on the radio, television, billboards and any number of published mediums. We can
also take our ads street side by placing flyers and posters on community bulletin boards, and
university, office and industrial social hot spots. Word of mouth is the most powerful
advertiser, so we have to make sure friends, family, and colleagues know what we do and are
prepared to spread the word for us. We should consider handing out stickers and business
cards to everyone we know for distribution.

Sales Operation Planning

Since our idea is service based, our sales or revenues will depend on our market entry
strategies, advertisements, distribution channels and product life cycle. It will depend on the
number of customers we are able to target and convert as our clientele. It will also depend on
the quality of our services.
The operation planning will mainly revolve around the facilities we offer.
Pick-up and drop facility - In order to execute this facility, we will have to tie up with
transport companies that provide vehicles for this purpose. We will also have to spend on
converting the normal seats to seats suitable for babies.
Quality staff In order to get the best quality staff, we will have to consult recruitment
agencies. A thorough background check of all the employees will be done to ensure
transparency. We would also tie up with training centers to provide the best quality training
to our staff so that they can treat the children with utmost care.
Child-care products A day-care center would need a variety of products for the kids.
Various products such as milk, nutritional foods like Cerelac, Huggies, toys, etc., would be
needed for the kids. Each of these products would have to be procured from vendors in these

sectors. An efficient supply chain would have to be established to get all the products on
time. Also, as the business grows, tie-ups can be made with these brands to increase our
brand value and hence increase our customer base.

Post Entry Market Growth and Sustenance Strategy

The post entry market growth and sustenance can be on the following lines:
Market Penetration This strategy involves increasing the sales of our present services in
the market. This is a useful approach when the current market is growing. Fulfilment of this
strategy might attract new customers. our day-care center will attempt to increase its
customer base from existing customers by providing quality service and winning the
customers trust.
Sustenance of the business Our sustenance strategy will be focused on mastering on our
USPs and providing the best quality service. We will bank on our value propositions of
flexible timings, pic-up and drop service and advanced app based services. As we are the
ones offering these unique services, our focus would be on capitalizing on these services. We
would offer the best quality service in these areas which will differentiate us from our
competitors. An efficient execution of these services would be done through a robust
operational network. Also, we would provide the best customer service which would ensure
parents that our day-care center is the best place for their children to be.

Positioning Progression Strategy

Our positioning progression strategy would be on the following lines:
Quality Staff This is one of our USPs. We would position our day-car center such that it
would be known for the hospitality and warmth of its entire staff. The staff would be
provided with quality training to do their jobs. Our positioning would progress in this area
with constant improvement in the quality of our staff and the way they deal with the kids.
Innovative Learning Programs We would position our day-care center with one that has
innovative learning programs for the kids. The programs would be customized as per the
requirement of the parents and their children. Programs would be designed such that the kids
develop holistically. Also, we would strengthen our positioning in this domain by constant
improvement in the programs both in terms of quality and quantity.
Special Facilities Since we have unique facilities like pick-up and drop service and flexible
timings, we would increase our positioning in this domain by constantly improving our
service in this domain and increasing our customer base by capitalizing on our unique
services.

Customer Base expansion, Customer Management &

Relationship Strategy
When it comes to a service like a day-care center, customer service and trust is of utmost
importance. It is very important to keep our existing customers happy and also target new
customers through our existing customers.
Our customer base expansion would mostly be through continuous advertising, creating
awareness about our services and providing the best service possible to our current
customers. Advertising would help us reach a large number of customers. It would create
awareness about our service and the facilities that we offer. Providing the best quality child
care services is very essential for increasing our current base. Networking with our current
customers will help spread awareness about our service through word of mouth. Providing
the best quality service will also help in reaching more customers through the
recommendations of our present customer base.
Customer management and relationship building will be of utmost importance to us. Our
business can grow only if we provide customer satisfaction. For this, we will have the best
quality staff who will deal warmly with the parents and the children. The staff would be
trained in hospitality and child care services. We would keep regular touch with the parents
through direct mail. The founders would also interact with the parents and assure them of the
best quality service. In this way, we would build a strong relationship with our customers
which would help us grow our business.

Sales and Marketing Plan

Target Market Segment Strategy
The target market for us is full-time working couples. Referral marketing is the key type of
marketing strategy utilized. Maintaining and further enhancing its reputation in the
community is crucial to gaining additional market share of this target market.
Market Needs
With inflation continuing to increase every year, it has become necessary for more families to
rely on two incomes to survive. In turn, this increases the demand for child care facilities. We
do not foresee this trend turning in the near future, and intend to capture a share of this
market.
Service Business Analysis
The child care business is lucrative. As a result, there are many centers that provide quality
care for children in the same area as Babys Day Out. The child care industry is split between
large, commercially-run centers and smaller, locally-owned centers. Babys Day Out will

compete with all such care centers. The company is confident that this will be a successful
venture because of the quality of its managers and the capability of its care staff.

Sales and Marketing Manpower Plan

The sales and marketing would include spreading awareness about our services which would
be through advertisements, direct mail, word of mouth etc. The business manager would be in
charge of such activities. We would have specific staff assigned for carrying out promotional
activities like sending flyers, advertising on newspapers, billboards, etc. Other staff would
include finance professionals, administrators, teachers and staff, etc.

Operations Plan
Service Technology and Process
Aim
Our operational plan is a general overview of the ethos, goals and policies. It outlines the
day-to-day aspects of our childcare and identifies the core aims.
At Babys Day Out, the quality of care and the happiness of a child is our main concern.
We aim to achieve the following outcomes:

Being healthy

Staying safe

Enjoying and achieving

Making positive contributions towards the development of child

Providing a fun learning experience

Opening a child care center can be a difficult task. We may not know where to start or what
type of resources we may need.

Process Layout
Getting
Liscense

Liscence fees,
liscence
regulation.

Finding a
location

Meeting legal
requirements,
Conditional
use permit

Insurance
requirement

Child care
insurance,
employee
insurance

Marketing
requirement

Supply Chain Identification

Day-Care Facility Requirements
INDOOR CONSIDERATIONS
Facility must be approved by local services,
societies, community care and licensing
division.
Facility must comply with state and local
fire and building codes; all facilities must
pass inspection by the local Fire
Department; Staff is familiar with
evacuation routes; practice evacuation
procedures monthly with children.
Minimum of 35 square feet of usable space
per child; bathrooms, halls, offices, food
preparation areas, and storage not included
in square footage.
5 toilets and 5 sinks of appropriate height
for every 15 children; separate bathroom
facilities for adult staff; for the infants we
need to provide an area with a changing
table within arms reach of a sink; for

Must comply with all local licensing

requirements.
Smoke
detectors,
carbon
monoxide
detectors, alarms, and fire extinguishers are
in each classroom and checked monthly
with written logs; Staff is familiar with
evacuation routes; practice evacuation
procedures monthly with children.
Minimum of 35 square feet of usable space
per child.

Toilets and hand washing are easily

accessible.

school age children we will need separate

bathrooms for girls and boys.
Drinking water available both indoors and
outdoors.
Food preparation area with a minimum of
sink, hot and cold water, refrigerator, and
food storage.

Drinking water is easily accessible to

children.
Stairways are well-lit and equipped with
handrails.

OUTDOOR CONSIDERATIONS
Minimum 75 square feet of space per child.
Separate outdoor space for preschools and
infant/toddlers. Enclosed by fencing a
minimum of 4 feet high.

Minimum 75 square feet of space per child,

including: surface variety (sand, grass, hard
surfaces, etc.) shade, open space, digging
space, and equipment for climbing, riding,
balancing, and individual play; requires
fences or natural barriers.
All new and renovated playgrounds must All pieces of playground equipment
pass inspection by a Certified Playground surrounded by a resilient surface of
Safety Inspector.
acceptable depth or by rubber mats
manufactured for such use extending at least
4 feet beyond the fall zone of the piece of
equipment.
Environmental check by specialist.
Surrounding area check.
Drainage system check.
No water logging.

Establishment
Getting Financed For Building or Renovating the Center
After we have determined the feasibility of opening a center in a given location, and have
obtained approval for licensing and zoning, as a small business owner we will need to think
about how to finance the construction or renovation of our child care center. Many providers
have the assumption that they can apply for grants from the government or foundations. This
assumption is partially correct, but the amount of grant money available will largely depend
on the current state of the economy. Many grants are offered on a smaller level, for example
to build or update playground equipment or to develop curriculum materials. These minigrants are useful, but will not be the answer to all our small business financial needs. It is
important to note that when we are developing our operating budget for your program we
should not include grant money as a consistent funding stream. Grants are typically a onetime
funding source. They are not intended to be a regular part of your financial planning and
should not be treated as such. Other than grants, providers can access loans through financial
institutions. The type of loan we would need will depend on how much money we are
requesting, the duration of the loan, our business previous income, as well as our personal
credit history. We should talk to lenders with child care friendly loan policies and decide

which option is the right one for us. We should ask a lot of questions to make sure that we are
clear on what we need.

Development
Finding a location
When searching for a location we must first decide whether to have our center built or if we
would prefer to convert an existing building into a center. If we choose to convert an existing
building, we must determine whether we want to lease or purchase the building. Some things
to consider prior to leasing include the cost and level of renovation needed to the site and the
term of the lease; a seven year lease with 2 options to extend the lease would be ideal if we
are planning to put a lot of time and money into renovation of the site. Once we find a
potential location, we will need to contact a licensed architect who has experience or
knowledge in building and renovating child care centers.
Meeting legal regulations and land use requirements
After we have selected a potential location, we will need to research the requirements for
zoning and licensing. Depending on our building location, we may have to apply for a use
permit, which is issued from a city or county planning municipality. In order to find out what
zone the proposed child care center is in, we will need to call or stop in at the planning
department. The planning department will inform us if there are any specific requirements to
place a child care center in that location and/or if we will need to apply for a permit. They
will also let us know how much it will cost for the application fee, how to complete the
application process, and how long it will take. The fees are non-refundable even if we are not
approved. Once we have a zoning permit, we will need to contact the building department for
a building permit. The cost of a building permit is contingent on the cost of the construction
or renovation of the site
Conditional use permit
A Conditional Use Permit is an entitlement granted by the local government at a public
hearing allowing you to conduct a particular use on a specific parcel. We request a
Conditional Use Permit by filing an application with the planning department in the
jurisdiction in which your center will be located. The application will contain information
about the proposed business (e.g., hours of operation, number of children and staff members)
and site plans reflecting the location of the structure on the parcel, driveways, parking areas
and play areas. The application will also contain the names and addresses of the property
owners of parcels surrounding the proposed facility within a certain radius. These property
owners will be notified of your application and of the public hearing date.

Construction of our site

Once a site is leased or purchased and a site plan approved, we are ready to research
contractors to construct or renovate our site. Its best if we solicit at least three bids from
licensed contractors before selecting someone to hire. Once we select a bid, we should check
the contractors license, references, qualifications, and insurance. Finally, we would negotiate
a contract that includes a scope of work, a work schedule, a payment schedule, a cancellation
policy, and agreement about what happens if there are cost overruns or delays.

Operational Activities Plan

Our structure is divided into two main areas:
0 to 2 years:
The baby unit is a bright and welcoming room which can be divided into different areas for
different activities. We will accommodate 12 babies in the unit. The ratio of staff to babies is
1:3. The staffs in the baby unit would be qualified and/or experienced and would be able to
encourage the babies through their early stages of development. Each baby will be allocated a
key person who is responsible for settling the baby in and documenting their development.
The routine in the baby unit will be adaptable to suit the individual needs of the young baby.
Craft or messy play is offered each day including sand, water, and playdoh. The toddlers
will have the opportunity to play outside each day (weather permitting).
We will supply snacks and drinks for those children over one year old, as well as breakfast.
Optional- Parents will be asked to supply nappies and wipes and any creams required. These
are kept in a named plastic box supplied by the nursery. Parents will also be asked to supply
their daily food and milk in named containers. These will be stored in named bags in the
fridge.
Prior to the baby starting in the baby unit, parents will be offered two or three short sessions.
This will be normally in the week leading up to their start date. The first is for the parents and
the baby, for them to get to know the staff that will be looking after their baby and to go
through their daily routing and likes/dislikes. The second will be for approximately two hours
and normally over a feed/mealtime. If the senior member of staff feels a third visit would be
beneficial, a convenient time will be arranged.
2 to 5 years:
Children will be mixed between the rooms to have access to all activities on offer, although
there are times in the day when they are separated into those under 3 years and those over 3
years. This is to allow the older children to have access to smaller toys and to be able to play
without the younger children spoiling their games. A wide range of toys, puzzles and games
will be available and changed regularly. Activities downstairs will be based on a weekly

theme taken from observations on the children during play. The aim is to develop the
childrens knowledge by working on things which interest them.
Each age group will start the morning session with calendar time. This is a group session
aimed at developing the childrens concentration. With the younger age group it is for a
shorter period of time. The children would talk about the weather and days of the week. They
will also discuss the topic and basic counting, shapes and colours. The older children will
also have topic-related activities which cover the 6 areas of learning.
Each day a craft or messy activity will be offered. During dry weather the main door will be
open and the children can choose to play on the patio area or inside. To promote continuous
learning, toys or brought outside; water or sand is also available there will be a container
for digging. There will be a large selection of ride-on toys and scooters, and a blackboard will
be permanently set up. There will be guttering fixed to the fence for various activities with
balls and cars.

Meal Times
*This is just an overview. Our timings will flexible.
*Menu will be decided by Nutritionist and will be different for different age group.
MEALS
Breakfast
Light snack
Lunch
Evening snacks
Dinner

TIMINGS
8:30- 10:00 am
11:30- 11:45 am
12:45- 1:45 pm
4:00-4:30 pm
8:00- 8:30 pm

Operational Manpower Plan

Helping children grow, learn, and gain new skills can be very rewarding. Preschool teachers
and child care workers often improve their own communication, learning, and other personal
skills by working with children. The work is sometimes routine; however, new activities and
challenges mark each day. Child care can be physically and emotionally taxing, as workers
constantly stand, walk, bend, stoop, and lift to attend to each childs interests and problems.
Child care workers must be constantly alert, anticipate and prevent trouble, deal effectively
with disruptive children, and provide fair, but firm, discipline. The hours of child day care
workers will vary. Our care center will open 24 hours and so cannot close until all of the
children are picked up by their parents or guardians.

Basically like most of the service sector employees will work in shifts. In total 3 shifts will be
there.

SHIFT 1

SHIFT 2

SHIFT 3

TIMINGS
6:00 AM- 2:00 PM

HOLIDAYS- Once a week

PAID LEAVES- 25 per year
SICK LEAVES- 5 per year

2:00 PM- 10:00PM

10:00PM-6:00AM

Employment
Child day care services provided about 767,000 wage and salary jobs in 2004. Also, there
were about 449,000 self-employed and unpaid family workers in the industry, most of whom
were family child care providers, although some were self-employed managers of child care
centers. However, employment estimates understate the number of people working in this
industry, because they exclude family child care provided by relatives. Also, child care
workers who work in the childs home, such as nannies, are classified primarily into the
private household industry.
Jobs in child day care are found across the country, mirroring the distribution of the
population. However, day care centers are less common in rural areas, where there are fewer
children to support a separate facility. Child day care operations vary in size, from the selfemployed person caring for a few children in a private home to the large corporate-sponsored
center employing a sizable staff. Almost half of all wage and salary jobs in 2004 were located
in establishments with fewer than 20 employees. Nearly all establishments have fewer than
50 workers (chart 1).
Opportunities for self-employment in this industry are among the best in the economy. About
37 percent of all workers in the industry are self-employed and unpaid family workers,
compared with only 7 percent in all industries. This disparity reflects the ease of entering the
child day care business.
The median age of child day care providers is 38, compared with 44 for all workers. About
18 percent of all care providers are 24 years or younger (table 1). About 5 percent of these

workers are below the age of 20, reflecting the minimal training requirements for many child
day care positions.
Table 1. Percent distribution of employment, by age group, 2004
Age group

Child daycare services

All industries

Total

100.0%

100.0%

18-20

4.9

4.2

21-24

12.8

9.9

25-34

24.7

21.8

35-44

23.3

24.8

45-54

20.6

23.3

55-64

10.3

12.4

65 and older

3.5

3.

Proposed/Envisaged Organization Structure

Overview
There is far less occupational diversity in the child care services industry than in most other
industries. Three occupations preschool teachers, teacher assistants, and child care workers
account for 75 percent of all wage and salary jobs.
Preschool teachers make up the largest occupation in the child day care industry, accounting
for about 34 percent of wage and salary jobs. They teach pupils basic physical, intellectual,
and social skills needed to enter primary school. Teacher assistants account for 12 percent of
employment and give teachers more time for teaching by assuming a variety of tasks. For
example, they may set up and dismantle equipment or prepare instructional materials.
Child care workers account for about 29 percent of wage and salary jobs, as well as a large
proportion of the self-employed who care for children in their homes, known as family child
care providers. Some parents hire private household workers, such as nannies, to care for
their children in their own home. Regardless of the setting, these workers feed, diaper,
comfort, and play with infants. When dealing with older children, they attend to the
childrens basic needs and organize activities that stimulate physical, emotional, intellectual,
and social development.
Education administrators, preschool and child care center/program account for about 4
percent of wage and salary workers. They establish overall objectives and standards for their
centers, provide day-to-day supervision of their staffs, and bear overall responsibility for

program development, as well as for marketing, budgeting, staffing, and all other
administrative tasks.
In addition to hiring workers in the preceding occupations, child care centers also employ a
variety of office and administrative support workers, Building cleaning workers, cooks,
and bus drivers

At Start Up Stage
There would be no organizational hierarchy in this stage. The employees would be hired as
per the target segment and customer base. The numbers are an estimate according to our
current plan.
OCCUPATION
MANAGEMENT
Manager of Business Operations
Manager of Finance
Marketing Manager
HR Manager
PROFESSIONAL
AND
RELATED
OCCUPATIONS
Child, family, and school social workers
Preschool teachers
Kindergarten teachers
Special education teachers
Other teachers and instructors
SERVICE OCCUPATIONS
Cooks, institution and cafeteria
Building cleaning workers
Supervisors, personal care and service
workers
Child care workers
OFFICE
AND
ADMINISTRATIVE
SUPPORT
TRANSPORTATION AND MATERIAL
MOVING STAFF
Bus drivers, school
TOTAL

NUMBERS
1
1
1
1

4
3
4
2
2
2+1+1
4
2
5
1

4
34

At Growth Stage
The structure in this stage is as follows

DIRECTOR

MANAGER
ADMINISTRATOR

MANAGER FINANCE

OFFICE
ADMINISTRATOR

PROFESSIONALS

OFFICE
ADMINISTRATOR

SUPERVISOR

MAINTAINENCE
WORKERS

COOK

ACCOUNTANT

TRANSPORT OFFICER

CHILD CARE
WORKERS

DRIVERS/SECURITIES

At Maturity Stage
Maturity stage will be followed by simple organisational hierarchy to keep the structure
simple and less complex and at the same time cost saving criteria will be kept in the structure.

DIRECTOR

MANAGER BUSINESS

MANAGER FINANCE

OFFICERS/PROFESSIONALS

ACCOUNTANT

SUPERVISORS

WORKERS

Recruitment and Talent Development

Most states do not regulate family child care providers who care for just a few children,
usually up to between two and five. Providers who care for more children are required to be
licensed and, in a few states, have some minimal training. Once a provider joins the industry,
most states require the worker to complete a number of hours of training per year. Many local
governments regulate family child care providers who are not covered by state regulations.
Home safety inspections and criminal background checks are usually required of an
applicant.

Most states have established minimum educational or training requirements. Training

requirements are most stringent for directors, less so for teachers, and minimal for child care
workers and teacher assistants. In many centers, directors must have a college degree, often
with experience in child day care and specific training in early childhood development.
Teachers must have a high school diploma and, in many cases, a combination of college
education and experience. Assistants and child care workers usually need a high school
diploma, but that is not always a requirement. Some employers prefer to hire workers who
have received credentials from a nationally recognized child day care organization.
Many states also mandate other types of training for staff members, such as health and first
aid, fire safety, and child abuse detection and prevention. In nearly all states, licensing
regulations require criminal record checks for all child day care staff. This screening
requirement protects children from abuse and reduces liability risks, making insurance more
available and affordable.
State governments also have established requirements for other child care personnel those
involved in food preparation, the transportation of children, the provision of medical services,
and other services. Most states have defined minimum staff-to-children ratios, which vary
with the state and the age of the children involved.

Estimated Cost of Project and Envisage Source of Funding

Cost of Project
Babys Day Out is planning to launch initially in Hinjewadi, Pune. We would open a daycare center and manage the operations from a small office. We have initially planned an
employee base of around 30 people including the teaching staff and all other administrative
staff. Our initial cost would revolve around employee salaries, child care utilities,
advertisements, transportation, etc.
We have tabulated the estimated costs for our resources below:

Initial Investment (Setup Cost)

Sr. Particulars
1
Day Care Space Lease
2
Cars and transportation
3
Child care products
4
Employee Salaries
5
Furnishing
6
Legal and Insurance
7
Advertisement
8
Miscellaneous
Grand Total

Cost
3,60,000.00
1,00,000.00
1,00,000.00
25,57,000.00
1,00,000.00

50,000.00
1,00,000.00
1,00,000.00
34,67,000.00

Sources of Funding
Funding is the act of providing financial resources, usually in the form of money, or other
values such as effort or time, to finance a need, program, and project, usually by an
organisation or government. Sources of funding include credit, venture capital, donations,
grants, savings, subsidies, and taxes. Funding such as donations, subsidies, and grants that
have no direct requirement for return of investment are described as "soft funding" or
"crowd-funding". For our funding, we plan to go for a combination of bootstrapping and
angel investing.

Investment Plan
Bootstrapping
Angel Investors
Total

21,92,000.00
12,75,000.00
34,67,000.00

Estimated Financials
Since there are other day-care centers in the area we have estimated a customer base of 200 in
the first year, 350 in the second year and 450 in the third year. We have also taken an average
of 20% growth in the expenses and increase in other sales aspects.

Demand Forecast
Customers

Year1
250

Year2
350

Year3
450

Sales Forecast
Year
Year 1
Year 2
Year 3

Total Sales
50,00,000
70,00,000
90,00,000

Rate
20000

Sales Forecast Total Sales

100,00,000
90,00,000
80,00,000
70,00,000
60,00,000
50,00,000
40,00,000
30,00,000
20,00,000
10,00,000
Year 1

Year 2

Year 3

As can be seen from the graph, the revenues increases from Rs 5000000 in the first year to Rs
9000000 in the third year. There is a steady increase in revenues projected.

Salaries Plan for next 3 Years

Designation
Year1
Manager
of
Business
5,00,000
Manager of Finance 5,00,000
HR Manager
5,00,000
Marketing Manager 5,00,000
Service occupations 1,50,000
Childcare staff
3,75,000
Transportation staff
32,000
Total
25,57,000

Year2

Year3

6,00,000
6,00,000
6,00,000
6,00,000
1,80,000
4,50,000

35,200
30,65,200

7,20,000
7,20,000
7,20,000
7,20,000
2,16,000
5,40,000

38,720
36,74,720

Expense Analysis
Year 2
Year 1

Year 3

Revenue
Direct Cost of Revenue
Payroll

50,00,000.00
12,50,000.00
25,57,000.00

70,00,000.00
17,50,000.00
30,65,200.00

90,00,000.00
22,50,000.00
36,74,720.00

Total Cost of Revenue

38,07,000.00

48,15,200.00

59,24,720.00

Gross Margin
Gross Margin %

11,93,000.00
23.86%

21,84,800.00
31.21%

30,75,280.00
34.17%

The Expense Analysis based on direct cost of revenue and payroll is given above. The gross
margin as a % of revenue can be observed to be steadily above 20%.

Gross Margin Yearly

35,00,000.00
30,00,000.00
25,00,000.00
20,00,000.00
15,00,000.00
10,00,000.00
5,00,000.00
Series1

Year 1

Year 2

Year 3

11,93,000.00

21,84,800.00

30,75,280.00

We have even identified the operating expenses for the next 3 years. These expenses are a
measure of sales, marketing, general and administrative expenses.

Operating Expenses
Year 1
Year 2
Sales and Marketing Expenses
Advertising/Promotion Brand

5,00,000.00

6,00,000.00

Year 3

7,50,000.00

Total Sale & Marketing Expenses 5,00,000.00

Sales & Marketing %
10.00%
General
&
Administrative
Expenses
General & Admin Payroll
25,57,000.00
Utilities
3,00,000.00
Insurance

60,000.00
Legal Fees

50,000.00
Cars and transportation
1,00,000.00
Licenses & Permits

10,000.00
Office Supplies

8,000.00
Other Expenses

25,000.00

6,00,000.00
8.57%

7,50,000.00
8.33%

30,65,200.00
3,60,000.00

72,000.00

6,000.00
1,20,000.00

12,000.00

9,600.00

30,000.00

36,74,720.00
4,32,000.00

86,400.00

7,200.00
1,44,000.00

14,400.00

11,520.00

36,000.00

Total General & Admin Expenses

General & Admin %
Childcare staff Expenses
Total Childcare Staff Expenses

36,74,800.00
52.50%

48,000.00

48,000.00

44,06,240.00
48.96%

57,600.00

57,600.00

31,10,000.00
62.20%

40,000.00

40,000.00

From the operating expenses and the revenue generated, we could calculate the profit as a %
of revenue.

Total Operating Expenses

Profits
Profit/Revenue %

Profit Analysis
Year 2
Year 1

Year 3

36,50,000.00
13,50,000.00
27.00%

52,13,840.00
37,86,160.00
42.07%

43,22,800.00
26,77,200.00
38.25%

Profits Yearly
40,00,000.00
35,00,000.00
30,00,000.00
25,00,000.00
20,00,000.00
15,00,000.00
10,00,000.00
5,00,000.00
Series1

Year 1

Year 2

Year 3

13,50,000.00

26,77,200.00

37,86,160.00

As seen above, the business concept is seen to be profitable. The profit is also steadily
increasing over the next three years.

Factors that may affect Financials/Sensitivity

1.
2.
3.
4.
5.

WACC
Growth Rate
Competitor performance
Market scenario
Demand fluctuations

Proposed Key Performance Indicators

1. Demand for day-care centers

2.
3.
4.
5.
6.
7.
8.
9.

Expansion in further metro cities

Increase in revenues and profits
Increase in customer base
Customer Satisfaction Index
Customer Frequency
Employee Satisfaction Index
Market share
Performance of childcare staff