Childcare / Daycare Center

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Executive Summary

Little Steps Learning Center will be a licensed childcare center in the west side of our city for children ages 1 to 5 years old. We provide safe, loving, full-day and part-day care with a daily routine of learning, play, meals, rest and outdoor time, so parents can work or go to school knowing their children are in good hands. Many working parents near us struggle to find childcare that is safe, licensed, close by and affordable. Waiting lists are common, and hours often do not match work schedules. Our center will offer Monday through Friday, 6:30 a.m. to 6:30 p.m. and focus on the things parents tell us matter most: trusted caregivers, clear communication and a clean, safe space. Here is what our numbers show. We expect tuition income of about $263,000 in Year 1, growing to about $1,138,000 by Year 5 as we fill our classrooms. Childcare centers take time to reach full enrollment, so we expect to lose about $88,300 in Year 1. From Year 2 we expect a profit: about $4,800 in Year 2, growing to about $181,900 by Year 5. We need $195,500 in total. That covers $97,000 in startup costs (furniture, play equipment, safety equipment, child-safe renovations and licensing), the money we expect to lose while enrollment grows, and a cash cushion of about three months of bills. I am putting in $25,000 of my own money, and I am asking for $170,500. I am Tanya Torres, the owner and director. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Little Steps Learning Center will be a limited liability company (LLC) in Maine, owned by Tanya Torres. We will operate at a former church preschool building on Oak Street, with a fenced playground and a drive-through drop-off lane. What we believe. Every child deserves to feel safe, loved and excited to learn, and every parent deserves to feel at peace while they work. What we offer:
- Full-time care (five days a week) and part-time care (two or three days a week). - Age-based classrooms with a daily schedule of circle time, reading, art, music, outdoor play, meals, snacks and nap time. - Learning through play that gets children ready for kindergarten: letters, numbers, shapes, getting along with others and following routines. - Healthy meals and snacks. - A daily report to parents through an app or a note home, with photos, meals, naps and milestones. Licensing. Childcare centers must be licensed by the state. Licensing covers the building, safety, the number of children per teacher (called "ratios"), staff training and background checks. In our state, centers are licensed by the Department of Early Care and Learning. I attended the required pre-licensing orientation in May and will submit my application once the lease is signed. Our startup budget includes license fees, inspections and background checks. Where things stand today. I completed my director's training, toured three possible buildings, and have 14 families on an interest list.

Problem & Opportunity

Parents near us need childcare they can trust, but it is hard to find. 1. Not enough spots. Many centers near us have waiting lists, especially for toddlers. 2. Hours do not match work. Parents who work early mornings, late shifts or weekends often cannot find care that fits. 3. Cost. Childcare is one of the biggest bills for young families. 4. Trust. Parents want to know their child is safe, cared for by trained people who know their child by name. How we know parents want this. 14 families have joined our interest list, and 9 of them need care to start by next fall.

Products & Services

How the center works. Who we serve. Children ages 1 to 5 years old, in classrooms grouped by age. We start with 20 children in two classrooms, growing to our licensed capacity of 60 and grow toward our licensed capacity. Full-time and part-time care. Our plan assumes full-time tuition of about $1,100 a month per child in Year 1, rising slowly to about $1,220 by Year 5, and part-time tuition of about $650 a month, rising to about $710. Direct costs of caring for each child (food, supplies, and assistant teacher time) are about $550 a month for full-time and $320 for part-time. In Year 1 we expect an average of about 15 full-time and 8 part-time children. By Year 5 we expect about 58 full-time and 33 part-time children as we open more classrooms. Full-time toddler care is $1,100 a month; preschool is $1,000. We will accept our state's childcare assistance program and offer a 10% discount for siblings. A day at our center:
- Arrival and breakfast. - Circle time: songs, stories and the day's theme. - Learning centers: art, building, reading, pretend play and early math. - Outdoor play. - Lunch, then rest time. - Afternoon snack, small-group activities and outdoor time. - Pickup, with a short report for each parent. Gross margin, explained. "Gross margin" is the share of tuition left after paying the direct costs of caring for each child. Our plan shows about 50% in Year 1. That is the money left to pay rent, teachers' salaries and other bills.

Market Analysis

Who will choose our center:

- Working parents and parents in school or job training who need dependable full-day care. - Families who need part-time care a few days a week. - Families who qualify for childcare assistance. Where our families are. The center is within a 5-minute drive of two large apartment communities and a hospital with 1,200 employees who work early shifts. Our plan is careful on purpose. In Year 1 we plan for about 23 children on average, well below what the space can hold, so the business can pay its bills while it fills up. Most centers fill gradually as parents hear about them from other parents.

Competitive Landscape

Other childcare options near us:

1. Other childcare centers. Bright Beginnings (a made-up name) charges $1,200 a month for toddlers, closes at 6 p.m., and has a 6-month waiting list. 2. Family childcare homes. A caregiver who looks after a small group of children in their own home. Often lower cost and more personal, but fewer spots and fewer learning resources. 3. Family, friends and neighbors. Free or low cost, but not always available and not licensed. 4. Pre-K programs. Some states offer free pre-kindergarten for 4-year-olds, which may compete for older children but can also be a partner. How we will earn parents' trust:
- Safety first: a secure entrance, trained staff, and background checks for everyone. - Communication: a daily report, photos and an open door for parents. - Hours that fit real work schedules. - Fair prices, and acceptance of childcare assistance.

Marketing & Sales Strategy

How parents will find us. Before we open (two to four months ahead):
- An interest list on social media and a simple website, with photos of the space as it gets ready. - Open house days so parents can tour, meet the teachers and ask questions. - Flyers at pediatricians' offices, churches, libraries, apartment leasing offices and large employers near us. - A listing with our local childcare resource and referral agency, which many parents call first. After we open:
- Referral thank-you: a tuition credit for families who refer a new family. - Parent reviews on Google and social media. - Relationships with nearby employers who may want reserved spots for their workers. Marketing budget. Startup includes a sign, logo and enrollment flyers ($3,000). Most of our ongoing marketing is free: tours, word of mouth and community partnerships.

Operations Plan

How the center runs day to day. Staff and ratios. The state sets how many children each teacher can care for, which depends on age. We plan two lead teachers in Year 1, growing to six by Year 5, with assistant teachers and floaters covering breaks, plus the director. Assistant teacher time is included in our direct cost per child. Space. About 3,500 square feet with three classrooms, a kitchen, child-size bathrooms, an office and a fenced playground. Startup includes about $15,000 for child-safe changes, like child-size bathrooms, fencing and outlet covers. Equipment. About $65,000 to start: classroom furniture, cribs and cots, toys and learning materials, outdoor play equipment with safe ground cover, kitchen appliances, a secure entry system and cameras, a computer with childcare software, safety equipment, and a washer and dryer. We set aside about $4,000 to $5,000 a year after that to replace worn items. Health and safety:
- Background checks for every staff member. - First aid and CPR training for all teachers. - Daily cleaning and sanitizing, hand-washing routines and safe food handling. - Fire and emergency drills, and a written emergency plan. - A sign-in and sign-out system so children are only released to approved adults. Meals. We will cook breakfast, lunch and an afternoon snack on site and apply to the Child and Adult Care Food Program. Running costs. Rent and utilities about $42,000 in Year 1, classroom materials about $9,000, and licensing and insurance about $11,000. Records. Childcare software tracks attendance, billing, parent messages and required records for state inspections.

Management & Organization

Who runs the center. Tanya Torres, owner and director. As director I will handle enrollment and parent relationships, hiring and training, licensing and inspections, the daily schedule and curriculum, and the money side of the business. I plan to pay myself $52,000 a year. Teachers. Lead teachers are planned at about $34,000 a year each: two in Year 1, three in Year 2, four in Year 3, five in Year 4 and six in Year 5. Every teacher meets our state's training requirements and is background-checked. People who will help us:
- A bookkeeper or accountant for payroll, billing and taxes. - An insurance agent for liability, property and workers' compensation insurance. - Our local childcare resource and referral agency, which often offers free training and support to new providers. - A free business mentor from SCORE or the Small Business Development Center (SBDC). Lauren Coleman serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. Before opening:
- Sign the lease and finish child-safe renovations. - Pass licensing, fire and health inspections, and receive our license. - Hire and train our first teachers. - Hold open houses and enroll our first families. Target opening: August 2027. First 6 months: enroll our first 20 children and set up daily parent reports. Months 7 to 12: reach an average of about 23 children and about $263,000 in first-year tuition. Year 2: about $510,550 in tuition and our first profitable year (about $4,800). Grow to three lead teachers. Years 3 to 5: grow to about $1,138,000 by Year 5 with six lead teachers, as we open more classrooms up to our licensed capacity. What we check every week: children enrolled, attendance, open spots, families on the waiting list, staff hours compared with ratios, tuition collected and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $195,500. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $97,000, listed item by item in the Startup Costs section (about $65,000 for furniture, play and safety equipment, $15,000 for child-safe renovations, $2,000 for opening supplies, $2,500 for licensing and background checks, $2,500 for legal setup, $3,000 for the sign and flyers, and a $7,000 security deposit). - About $52,600 to cover the money we expect to lose in the early months while we build our customer base. - A cash cushion of about $98,500, about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital." Where the money comes from: - My own money: $25,000. - Amount requested: $170,500. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender. How we will pay it back. We expect a loss of about $84,700 in Year 1 while we build our customer base, then a profit from Year 2 (about $4,800), growing to about $181,900 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $2,521 a month are already included in our cash flow. What we are offering the lender: our equipment as collateral and a personal guarantee from the owner. A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: open a licensed family childcare home, caring for a small group of children in your own home. Many parents start this way. Costs are much lower, and your state licensing agency can tell you the rules and how many children you can care for. - Phase 2: after building a waiting list, a track record and savings, open the center described in this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Your childcare credentials (for example, a CDA) and training certificates. - Your license application or approval letter from the state. - The lease, or a letter from the landlord, and a floor plan. - Quotes for renovations and equipment. - Your parent handbook and daily schedule. - Your interest list or letters from parents. - Proof of insurance, or quotes. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Full-time tuition: about $1,100 a month per child in Year 1, rising to $1,220; direct cost about $550 a month. - Part-time tuition: about $650 a month in Year 1, rising to $710; direct cost about $320 a month. - Enrollment: about 15 full-time and 8 part-time children on average in Year 1, growing to about 58 and 33 by Year 5. - Director pay: $52,000 a year. Lead teachers: $34,000 a year each, growing from two to six. - Other yearly costs in Year 1: rent and utilities about $42,000, classroom materials about $9,000, licensing and insurance about $11,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs