Business Plan
Now you are ready to put all your research and plans together in a formal Business Plan. Use the following checklist to compose a Business Plan from your planning, research and subsequent decisions. From the planning work you have already done, you can transpose your research into a comprehensive business plan.
The following general questions about Business Plans have been retrieved from the Government of Canada website on Business
Even though most business plans are written for profit-making enterprises, the objectives are equally applicable to non-profit organizations.
How to Do a Business Plan?
A business plan is a recognized management tool used by successful and/or prospective businesses of all sizes to document business objectives and to propose how these objectives will be attained within a specific period of time. It is a written document which describes who you are, what you plan to achieve, where your business will be located, when you expect to get under way, and how you will overcome the risks involved and provide the returns anticipated.
Why Do You Need a Business Plan?
A business plan will provide information of your proposed venture to lenders, investors, and suppliers to demonstrate how you plan to use their money, and to establish a basis for credibility of your project.
When Should a Business Plan Be Prepared?
The sooner you develop your business plan, the better. You will find that the final copy of your business plan may differ from the original draft, as you will be updating, revising and refining it as you go. It is important that you examine all the relevant factors now. Therefore, you will be able to anticipate any surprises after your business has opened its doors.
Who Should Prepare a Business Plan?
The business plan should be prepared by those persons who will be implementing it.
Outside assistance from consultants, accountants, bookkeepers, and experienced business people can definitely help, but you must draft the initial plan. After all, you are the one that is going to run the business once it is open.
Think through each element of your business plan thoroughly so you have a good understanding of the overall picture and all of the details.
Present your plan to others for constructive criticism and advice, and try to profit from their experience. Modify your plan if necessary.
What's in this for me?
If you have never drawn up a business plan before, you may be curious as to what the benefits are for you.
- First and most important, your plan gives you a path to follow.
- Second, if you need to apply for a loan (or may need to apply from time to time) the Business Plan will give the lending agency insight into your activities. This will positively affects your loan application.
- Finally, your plan will help you develop as a manager by giving you practice in thinking about competitive conditions, promotional opportunities, sources of finance, etc.
Your goal is to put the plan into action.
A comprehensive business plan for your early learning and child care program would include the following elements:
Executive Summary
Summarize and describe: (This should be no more than a one page summary)
- Your mission, vision statement and organizational objectives
- Whether your early learning and child care program is a new venture, expansion of an existing program or an amalgamation with another community agency;
- The type of activity in which you are engaged (type of early learning and child care programs);
- The uniqueness of your program
- The market/community to be served;
- Your program's advantage over other programs in the community;
- Your program's management background;
- The project time frames involved.
In addition, briefly describe the organizational structure of the non-profit program:
- non-profit incorporation, or
- partnership (enclose agreement); or
- cooperative (enclose membership agreement).
Include:
- date the organization was registered/incorporated;
- the organization's name and address;
- the organization's phone number;
- the president's name and telephone number(s) or executive director if you have one in place;
- the Web site address and relevant E-mail addresses.
Project Costs and Project Funding
Identify the costs of the proposed program and the sources of the project funding.
Programs/Services
- Describe the services to be provided.
- What makes your service unique, or, how is your program different from others in the community?
- What are the features/advantages that will entice customers to enrol their child in your program (i.e., convenience, service, performance)?
- Will you offer any special services?
- Provide information on any services, approaches or activities that provide your organization with advantages over other programs/agencies.
- Describe any plans for future expansion
Recruitment
- Identify the total market for your service: potential customers: e.g. demographics of community (How many children? What ages? Are parents both working? Number of single parents?) This is where you insert your findings from the needs assessment or market analysis.
- To whom are you targeting your service? - Geographic? Demographic?
- Identify your competition detailing their strengths and weaknesses and your opportunities and threats relative to them.
- How will your competition react to your organization entering the market?
- What are your past revenues (if applicable) and future projections? Use your three-year Income and Expense projections for this section.
- What price(s) do you intend to charge for your service and how does it compare to other programs in the community?
- What are your enrolment terms (cash or credit)?
- Identify promotional campaigns that will be used.
Operating Requirements
- Identify your facility requirements as to the size, location, and type of premises. Include drawings of the proposed building layout. Attach the most recent real estate appraisal, offers to purchase or lease agreement, supplier quotations, etc. Indicate why you have selected this location.
- Provide details relating to special requirements as to regulated requirements, provincial licence, water, power, compressed air, ventilation, heat, air conditioning, drainage, disposal, Department of Health requirements, zoning and building code by-laws, etc. Attach most recent approvals from Public Health, Child Care Branch, City zoning, etc.
- Provide a detailed listing (including legal descriptions) of the land and building(s), leasehold improvements, equipment and furniture, vehicles, inventory and other assets. The listing should include the proposed purchase/lease price of each asset.
- Provide a general description of the day-to-day operations of the program (include hours of programming, days open, seasonality of business (if only operating for ten months), suppliers and their credit terms, etc.).
- Provide cost estimates to provide your service(s). Use your annual operating budget for this.
- Provide a critical path chart, identifying key milestones
Management
- What is the proposed organization chart of the organization (i.e. who does what)? Include a brief job description for each position.
- Provide brief management biographies of the key personnel (include their ages and backgrounds in this type of program). State the compensation package (salary, benefits, professional development, etc.) for each member of the management team.
Personnel
List employees (not manager) using the following headings:
- position: full-time, part-time, seasonal, temporary; and
- method of payment: hourly, monthly, etc.
Provide a job description for each position, identifying the responsibilities and duties involved. Include the qualifications and skill level needed.
If job training is required, identify the duration and the cost of the training.
References
Identify: Reference, Name, Phone Number, E-Mail, Accountant for each of:- Banker
- Licensing Officer
- Insurance Company
- Lawyer
- Other
Financial Projections
Add samples...
Provide a projected (pro-forma) Three Year Cash Flow, Balance Sheet and Income and Expense Statement.
Additional Information
It is common for a financial institution to request that the principal(s) submit, with a loan application, a statement of personal net worth. The Board must decide whether they wish to make personal undertakings on behalf of the organization. If so, this form is usually provided by the financial institution. If applicable, historical financial statements on the organization may also be requested. Other supplementary and supporting documents for your business plan should be included in appendices.
Management Team
To operate a successful high quality early learning and child care program, you will need a very high level of early childhood education experience in program delivery as well as an executive director with strong leadership and management skills.
The initial human resource plan may still be tentative. It should involve lead teachers for every room/program proposed. Later you can develop your plan to include front-line staff.
Include the detailed monthly human resource expenses for the first year in this section.