kells kids 2 (spell check)

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Serving 6 months to 6

years of age

A Business Plan and Guide

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Business Introduction

Kells Kids is a start up business that provides High Quality daycare service in Cleveland, Ohio, the Mount Pleasant area to be exact. It will be a mid size

facility opening with 20 kids, serving 6 months to 6 years of age. The business was started out of seeing the need for quality child care in the

community, the love for children, knowing the importance of their growth, and easily seeing that dividends can be made from it.

The majority of our community today is forced to depend on child care to take in their littles ones when they are in able to. This of course may be due

to work responsibilites and other duties to fulfil their household. Why not use this love to ensure that these families have a dependable place to call on?

Kells Kids wants to be there to serve these families needs and also use government/state assistance to help those who really are unfortunate.

Knowing that we helped to mold, strengthen, & educate a child gives us a great sense of accomplishment. We happily accept and take on this

responsibility with great arms.

Kells Kids operates using ethical practices at all times and the highest standards of professional conduct. High Quality child care consists of correct

student to teacher ratios, appropriate group sizes, experienced/trained teachers, and play based curriculum that is child centered. Furthermore is

possesses accreditation and a quality rating system. The purpose of our

program is to promote all areas of child development and provide an enriching environment for kids to learn in. The task at hand of running a

successful child care center can be done and here the essentials for getting such a lucrative investment started.

Mission Statement

Kells Kids aims to create the most nurturing, developmental appropriate and

fundamental learning experiences known to man. We implement a high quality program and understand the importance of safe, stable, stimulating

environments. We provide a home like, comfortable atmosphere where children are consistently encouraged and can develop at their own pace. We

are committed to the families we serve, offering support through our referrals and community resources. Enrichment is the key to success.

Program Goals

To create a more age - and developmentally appropriate environment in which to serve young children;

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To stabilize facility’s expenses or avoid yearly rent increases;

To enable the business to remain in a particular community or retain child care services for low-income families.

To expand the business’ capacity to serve a growing market or meet a growing need.

Objectives

The objectives for the first three years of operation include:

To create a High Quality based operation whose primary goal is to exceed

customer's expectations.

The utilization of Kells Kids by at least 40 different families in the first eight

months.

To increase the number of client's served by 20% each year.

To develop a sustainable, profitable, start-up business

Research Market Feasiblity

If you’re wondering if there is a need for child care in the Cleveland area

where my business will be located, don’t wonder. The answer to that

question is YES. It has the highest percentage rate for persons less than 5

yrs. of age amongst surrounding towns.

Beachwood 3.5% Independence 4.3%

Bedford 5.4% Cleveland Hts 6.1%

E. Cleveland 6.4% Cleveland 7 .1%

As we can see Cleveland Heights and East Cleveland are also approaching

high marks which happen to be very close in proximity. In turn, this displays an excellent opportunity for growth and easy expansion.

Social and ecomonic change here in Cleveland always create a need for child

care. Not a day goes by a friend or someone known is pregnant. Not to mention, and please believe they are either working full time and/or

attending school full time. They are even collecting government assistance because they simply just need the help. These families are in desperate

need of finding somewhere along the main areas of the city to take their

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child. The traditional structure, where the mother is the homemaker and the

father is the wage earner has diminished. This is especially true in this community of Cleveland, Ohio. The majority of these working women are

single or do not have the option of a spouse caring for the child. 70% of them work full time and 30% part time. Based on the market in the area,

starting up a daycare is most definitely feasible.

Competition

The child care market is quite competitve and there are roughly 19 total in

the zip code of 44120. Don’t let that number scare you because if we ask how many quality centers there are we will come up very short. There are 2

other facilities on the same road that are in close proximity to the proposed location.

Brightside Academy Before & After Learning Center

Kells Kids is set apart from these two based on 1 factor alone. That is High

Quality. The parents in the area should always have access to quality options and once they see the atmospshere in which their child will be placed, they’ll

be anxious to have them start attending Kells Kids immediately. Due to the growth of infants in the community, research has found that a lot of times

the competition are intaking more kids than they should and not complying with ratio requirements.

A lot of clientele in this projected area are low income and not accustomed to seeing a high end, appealing environment to place their child. Kells Kids

wants to bring a different level of child care to the scene. Putting funds and tasteful energy to good use; not having run down toys, smelly cots, and

unusable equipment around for the kids to use. There are so many occasions

where kids are seen using materials that aren’t suitable for their age development. It’s sad and unfortunate to say, but these neighboring daycare

centers just don’t have those up to par standards and are constantly being in violation. Yet these parents are forced to take their children there due to

feeling as if that is the best and only option they have; placing them in crowded class rooms where its extremely difficult to have that undivided

attention. Kells Kids wants to show the families they don’t have to. High Quality Child

Care can exist within an urban low income community. The competitions are not and could never be a threat because as displayed earlier, persons under

the age of 5 are on the rise! There is enough business to spread amongst us in the community. Furthermore the curriculum, environment, and

professionalism set us far apart.

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Industry Trends

The child care industry itself looks very much stable at this time and shows to be for a long while. Today there are 22 million working women. Of that 22

million 7 and a ½ million are working mothers. More and more families are looking outside of the home for child care options and statistics show that

this number is on the rise also. Studies prove that pre-school and some form of early childhood education is a sound economic investment. Every $1

invested in early education saves taxpayers future costs and is also an investment that pays great returns to children. Due to rapid growth, there

have never been more career opportunities in early childhood. The funny thing is that according to www.census.gov, Child care costs had raised from

$84 to $143 per week over the past 20 years but the wage for a child care worker has not. This in turn proves the expense of a paying an employee will

likely never raise while the generation of revenue in the center will continue

to increase.

http://www.census.gov/

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.

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Every week in the U.S 11 million children younger than 5 are in a child

care arrangement. On average they spend 36 hours per week in a child care.

Quality Child Care has a positive benefit on all kids, but the impact is much stronger for children in low income families.

40 states are now investing over $5.1 billion in pre-k programs for children 3-4 years old.

2.6 million Children received subsidies.

Business Organization

Legal

Kells Kids is set up as a Limited Liability corporation. This is the best

structure as it protects from personal liablity and only the amount invested in the business would be at risk. As business grows and if another center

needs to be established which is anticipated, a separate LLC would be set up for each location. LLC’s are simpler and more flexible as they don’t require a

board of directors. This also benefits potential investors as Kells Kids would

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be able to offer a larger amount of the profits than warranted by their initial

investment. The management team determined the policies and the budget. The policies

are clear and consise. The parents receive a handbook outling all of the rules and policies. It details late fees, days open during the year, important

information needed about their child and much more. They are required to sign and date the handbook advising us they are fully aware of Kells Kids

service. Tenure in the daycare field equates to over 10 years of experience and training. With this knowledge we’ve gained we are able to budget and

plan this operation as effectively and cost friendly as possible without cheating the kids nor the business.

A liability policy as well as a property policy is carried and they will be thru State Farm.

Licensing/Regulation

There are most certainly licensing and regulation requirements that must be met in order to be able to open and successfully run Kells Kids. The most

important thing the state requires is completing the Plan of Operation. This document basically outlines everything done within the center and how its

successfully carried it out (available upon consideration). There are 2 classes that must be completed before you can even apply and they are ‘How to

Start’ and ‘Plan of Operation Orientation’ (See certificate of completion). A copy of Section 5101 in the Ohio revised Code (http://codes.ohio.gov)

remains as a reference at all times. This contains laws that must be followed in order to run a successful center.

Inspections include Building, Fire, and Food/Health. We’d obtain the ‘Certificate of Occupancy’, fire approval, and food

certification from the local Health department. Zoning is also required which will be completed once we have the building in

our possession. The state requires 35 sq ft of usable space per child the

space we desire at this time has 6700 sq ft. The city has already informed us the location will be in fact fit for a center, which is something we always

check before committing to any property. The state has step by step procedures for child care licensing and they are

as follows:

http://codes.ohio.gov/

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150 DAYS PRIOR TO OPERATING

•Download a copy of child care licensing rules, review, write down questions. (http://emanuals.odjfs.state.oh.us/emanuals)

•Register and attend "How to Start" training

•After we secure building, call local zoning, building, fire, and health department to determine if suitable for child care


•Hire a qualified administrator

•Register and attend "Intial Plan of Operation Orientation"

•Submit an application online for a child care license, $500


• Secure BCII and FBI criminal background check for administrator. Have results sent to local ODJFS office

85 DAYS PRIOR TO LICENSING

•Complete Plan of Operation will all attachments

•Secure building certificate of occupancy, fire inspection report, and food service license.

•Once completed Plan of Operation has been submitted it will be scored.


•Hire staff and begin to collect documents needed for employee file.

•Secure needed equipment (furniture, cots, cribs, toys, etc)


•Stay in touch with our Licensing Specialist and have open communcation in regards to status. Send additional materials if necessary.

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There it is. With these clear procedures and utilizing our licensing specialist

(Steve Romano, who has no problem letting the management team know exactly what we need to do to become successful), there is absolutely no

room for failure.

Management/Operations The management team consists of Keltress Hutcherson along with 1 other

employee who also assists with the day to day operation and her name is Jillian Fowler. She has been in daycare for 8 years, attended the CDA

program with Keltress and has worked as an administrator in the past. Keltress and Jillian are responsible for record-keeping and program

management. Kells Kids has another employee by the name of Belinda Sims who has exerience steming back from 1992. She works with the infant and

toddler rooms. Since we are be opening up with 20 kids this is sufficient as we start up and of course as enrollment grows the staff will grow in turn

also.

Employee Requirements

Any employee must undergo a BCII & FBI background check. They are also

be required to provide education verification, medical exam, 3 references,

50-40 DAYS PRIOR TO LICENSING

• Complete Employee files (Secure BCII/FBI, results returned to center address)

• Schedule an on site inspection with our licensing specialist


• On site inspection completed. (all classrooms must be set up)

• Follow up inspection if needed; send any follow up materials to the licensing specialist.


• Paperwork is submitted to the licensing supervisor for procession. (Initial licensing letter must be posted at the facility until the actual license face is received.

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and an employee policy review statement before they can be around the

children. The state is extremely strict about this and it’s seen to it that every process is enforced. Kells Kids is assigned a specific licensing specialist who

has been guides us throughout this entire process. Taking the time in selecting the absolute best candidates for the job of nuturing and educating

our kids is important. Kids also can get attached to their teachers so its also important to eliminate as much turn around as possible.

Daily Operation

The business is run day to day with a set schedule of daily program activities

for our kids and it follows the Early Learning and Development Standards (ELDS). This allows them to understand the importance of routine and know

what to expect when they come in the center. Each week there is a theme that has a connection to their lives and the focus on doing fun and educating

things around that theme. Connecting activities through the use of a theme

allows children to build on previous learning. The competitive edge that Kells Kids has goes back to High Quality. Once the provisional license is in place,

Ohio’s Step Up to Quality star rating system is utilized. It recognizes learning and development programs that exceed licensing health and safety

standards.

Preparing the Environment

Safety is a detremental concern to Kells Kids when planning space. When children feel safe, they feel free to learn. Open spaces must be provided so

the entire room can be supervised. The equipment and materials are age appropriate, neat, and organized to where the kids are easily be able to

locate what they’re looking for. The goal is to run a program that allows our kids to be independent and explore different aspects on their own. By also

providing an abundance of materials and creating a space with high

activity/low stress, kids are able to make choices as well as play comfortably. This is another factor that separates Kells Kids from the

competition. Cool colors are used such as light blue, light green, white, and purple. They

create a feeling of openess and a positive response from the kids. It makes them feel calm, refreshed, peaceful, and restful. Warm colors also make a

contribution like red, yellow, and orange. They tend to make a room seem smaller but studies show children prefer this up to the age of 6.

Technology Needs

There is most certainly a need for 2 computers, printer, as well as a fax

machine in the office. They are not accessible to the kids what so ever and

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remain locked in the main office at all times. This is also where we keep our

up to date filing system that contains essentials such as attendance records, consent forms, immunization records, meal plans, etc. Quickbooks as well as

Microsoft Office is used to manage our day to day business.

Marketing

Our service of High Quality child care targets the surrounding neighborhood

of the Cleveland Mount Pleasant area. The neighborhood consists of single working mothers and mothers that cannot afford to pay for child care on

their own (government subsidy). Kells Kids also target parents that happen to work in the area and need somewhere local to drop off their child. To

ensure our name gets out there and for the neighborhood to know Kells Kids is coming to town, various avenues are used.

Promotional Strategy

It is extremely important that we registered with three very important entities to ensure our presence is known.

The Ohio Job and Family services are excellent in providing families

with information on quality daycares to send their kids to. By

registering with them these families will be able to seek service from

us. The Ohio Child Care Resource and Referral Association also provides

assistance to families in the area and assists us with taking necessary trainings to strengthen our program.

The Ohio Job and Family Services

The Ohio Child Care Resource and Referral

Association

The NAEYC, National Association for the

Education of Young Children

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The NAEYC, National Association for the Education of Young Children.

They are the professional organization that promotes excellence in early childhood education. The field of early childhood constantly changes. They

will assist us in keeping up with current developments.

Financial Here is where things get interesting and now the time to see what this

service will actually cost us to get up and running. There will be start-up costs and these are some of the things we would need to purchase to begin:

Stackable chairs

Tables

Office furniture

TV and VCR

Sleeping mats/cots

Storage bins (depreciated)

Computer system with printer, CD-RW, and Internet connection

Copier and fax machine

Art supplies

Community Involvement •We are going to have a Grand Opening of the center and prior to doing so we are going to create flyers advertising the big event! They will be distributed door to door, to nearby businesses, on street poles, and even word of mouth. We’ll provide free food such as hot dogs, hamburgers, and chips to bring the community out for the great cause.

Open House •During the opening we provide the opportunity to people to walk thru and see what we've done to the center. Allows prosepctive customers to meet the staff and tour the facility. The kids in the neighborhood will finally have a safe place to learn and an enticing environment to do so in. Everyone will be able to walk in and see the high quality first hand.

Networking • Go out and meet with people and groups in the community who may work with families. Provide them with our flyers/business cards. Also contact the nearby centers to let them know of our Grand Opening. As I mentioned earlier, a lot of these centers experience overflow so its important to network and help them with that problem. When they do have this issue they can simply give us a call and we can happliy accept the overflow.

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Toys

Medicine kits

Kitchen supplies

Brochures

Cleaning supplies

Legal fees

Advertising costs

Start-Up Expenses Cost Fees/Administrative

Child Care License Business License

Permits Background Checks/Fingerprints

Fire/Building/Food Inspection Insurance (hazard, liability)

Business Phone/Utilities Lease/Rent (2 months)

$500 $175

$200 $120

$145 $2450

$275 $7400

Equipment

Fire Extinguishers Smoke Detectors/Installation

Fencing Outdoor Play Equipment

Furniture (tables, chairs, cots) Infant Equipment

Kitchenette/Cleaning kit

$310 $130

$1290 $3295

$7289 $2990

$590

Supplies

Toys

Books/CD’s Activity Supplies

Other

$4715 (All items total)

Office Expenses

Software Filing Cabinet, phone

Computer Supplies (paper, file folders, etc)

$70 $130

$500 $25

Marketing Costs

Business Cards/Flyers Website

$245 $125

TOTAL START UP COSTS

$32,969

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Ongoing Expenses Cost per Month USDA Food Program $400

Insurance $595

Lease/Utilities/Building $5500

Curriculum Supplies $275

Maintenance $110

Staff/Salaries $1500

Administrative $100

TOTAL MONTHLY EXPENSES

$8,480

INCOME per Month Child Care Fees Infant (2 Kids)

Toddler (6 Kids) Pre-School (12 Kids)

Registration Fees $25 per child

$175 per child/per wk x 2 = $1400

$155 per child/per wk x 7 = $3720 $149 per child/per wk x 16 = $7152

$500

TOTAL INCOME $12,772

Profitability Worksheet

Gross Income Per Month $12,770

Expenses per Month - $ 8,500

Net Income (Profit) = $4,270

(Set aside for taxes - $670)

Total Net Profit = $3,600 per mo

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Projections

As you can see not only is Kells Kids going to break even, it will be creating

a significant profit and a budget surplus. Thus, creating the ability to pay back any funds borrowed within a reasonable amount of time.

Kells Kids has a capital investment of $5,000 in savings. So in total we are

asking for $28,000 to get this process started. We have a wonderful banking relationship with our financial institution, Navy Federal. Before we indebted

ourselves to them and seek 30,000 from the SBA as a 5yr loan, we want to be able to attract local investors first. Give people who do have this money

the chance to invest in something positive for a change; invest in something that will give back to the community as well as give back to themselves.

Appendix & Attachments The following documents are available upon consideration:

1. Certifications of Training completed 2. Market Study Material

3. Resume 4. Plan of Operation

kells kids 2 (spell check)

Documents