Business Plan

For assignment purpose

Made by: Micha Paramitha

Executive Summary

Small Step Child Care® is a full-service child care/development facility that cares for

toodlers from age three to five. The Small Step Child Care® will be concentrating on the

upper eng of the market: double-income professinal parents. These personally ambitious

parents are typically eager in terms of their children’s development and will be willing to pay

to have their children attend the best facilities.

Through specialized training of the staff and innovative learning systems, The Small Step

Child Care® is cutting edge in terms of child development. This curriculum, coupled with a

custom designed facility and a low teacher:student ratio ensures a top shelf service for the

children and the parents. Unlike our competitors, we offer advanced after-school tutoring,

and activities such as arts, crafts, and learning english all in one location.

The Customer

Small Step Child Care® will be concentrating on two different target customer

segments. The first full-time working couples. This group is forecasted to account for

80% of Small Step Child Care®. The second group of customers are drop in,

customers who use Small Step Child Care® sporadically, when ever the need arises.

Small Step Child Care® is an exiciting opportunity that provides safe and secure

child care to the Bekasi neighborhood. Small Step Child Care® will reach

sustainable profitability over the next four years, with Rp317.465.000 in sales by year

four. Through a combination of well-price service and a well seasoned management

team, Small Step Child Care® will quickly gain market share and reputation as a

premier child care provider.

1.1 Objectives To develop a sustainable, profitable, start-up business

To create a service based operation whose primary goal is to exceed

customer's expectations.

1.2 Mission

Small Step Child Care® mission is to provide top level child care and to

offer safe and secure child care at all times. Close personal attention to each

child is essential to providing a quality experience for all children; therefore,

adequate personnel will be hired to ensure each child has the proper

supervision will in our care.

1.3 Key to Succes Marketing

Service Quality / Quality Care : care giving and educational programs

provided by degreed and certified educators, child care workers,

tutors and subject matter industry professionals in a technologically

advanced first-class collegiate environment

Reputation : maintaining a highly regarded reputation for excellence

in care giving, education and community involvement and being the

employer of choice in our market for child care and educational talent.

Competitive Pricing

Flexible Hours

Company Summary

Small Step Child Care® will offer child care services for kids between the ages of

three and five. Small Step Child Care® will offer services from 9 a.m to 5 p.m. The

children will be exposed to a wide range of activities including arts, crafts, cooking,

socialization, general learning, and group activities. Small Step Child Care® will be

priced out some people budgets but will offer well trained staff and a low student to

teacher ratio.

2.1 Company Ownership

Small Step Child Care® will start out as a simple proprierotship, owned by its

founder. As the operation grows, the owners will consider re-registering as limited

liabilty company or as a corporation, whichever will better suit the future business

needs.

2.2 Start-up Summary

Start-up RecuirementStart-up ExpenseLegalization Rp 10.000.000Computer Rp 3.000.000Motorcycle Rp 4.000.000CCTV Rp 3.000.000AC Rp 22.000.000Kitchen equipment Rp 9.590.000Toys Rp 30.000.000Table and Chair Rp 5.000.000Books Rp 5.000.000Book Shelves Rp 1.275.000Musical Instrument Rp 67.600.000

Laptop + projector Rp 7.000.000House Decoration Rp 20.000.000Wardrobe for small toys Rp 5.000.000Carpet for kids Rp 2.100.000Cleaning Supplies Rp 1.500.000Nap Time Bedding Rp 2.500.000

Total Start-up Expense Rp 198.565.000

Services

Small Step Child Care® offers upscale child care services for kids ages 3 years

to 5 years. Normal operating hours will be 9 a.m to 5 p.m, Monday through Friday -

with observance of all major legal holidays.  Early drop-off service will be offered as

needed. 

Small Step Child Care® exists to provide Premier child care services that are

aimed at enhancing traditional day care methodologies and integrating

extracurricular interests (such as art, crafts, music, theate and sports) into one

comprehensive program. Our general and “continuing” education program help tutor

the kindergarten kids through “main school” homework assignment and provide a

base of understandin and interaction to ensure in future educational endeavors.

3.1 Service Description

Small Step Child Care® will offer three basic services in the Grand Galaxy City

community:

Full-time Child Care

After School Care

Drop-in care

Prior to opening, the Small Step Child Care® have three months of enrollment.

Based on themarket reaction, these services may be altered to meet the needs of

the community.

3.2 Learning Center

Small Step Child Care® is not only taking care of the kids but also giving them

knowledge. Such as drawing, music, english lesson, and also singing. Small Step

Child Care® not only prepares children to become sociable child but prepare to be a

child who is ready to face the day ahead.

To develop our children social attitude, Small Step Child Care® also implement

group activities conducted both inside and outside. Group activities such as drama,

the race between 'students' child care.

Small Step Child Care® also give an opportunity for the kids to do their homework

from their ‘main school’ and to obtain help.

3.3 Security System

For the safety of the children, 'Small Step Child Care' provides a very tight security

system. Small Step Child Care provides two security guards. We do not use any

security, we use a security guard who already has a certificate or who already have

a guarantee from the distributors. In addition we also provide four security CCTV

installed at important places such as front door,clasroom hallway, classroom, main

hall and courtyard.

3.4 NutritionistFor food in a 'Small Step Child Care', we do not use food from outside as catering,

we provide a helper who will serve in the cooking and nutrition expert is in charge for

calculating adequate nutrient food for children 3 years to 5 years.

Marketing

Market Analysis Summary

Small Step Child Care® offers services which are vitally important in today's fast

paced, dual-income world. As an increasing number of families have become

dependent on two incomes, the need for quality child care has skyrocketed. 

4.1 Market Segmentation

Small Step Child Care® has a focus on meeting the local community need for child

care services within the 10-mile radius of Bekasi City.  Students will be taken in

flexibly on either a full-time or part-time basis.

Full-Time Working CouplesThe Child Care will establish a significantly large, full-time, regular client base in

order to establish the healthy, consistent revenue base which will ensure stability of

the business.  Customer and community relations are extremely important, as it is

imperative to keep the parents pleased in order to keep their children in the child

care.

After School CareAnother large segment of the child care's business will be in the after school care

market.  This client base will provide a higher profit for the child care since instructor-

to-student ratios are higher, and the students require more educational services,

which are the primary focus of the child care.  By offering tutoring, and advanced

studies in technology, theatre, arts and sciences, the college will attract these

profitable business clients, producing significant supplemental revenues.

4.2 Target Market Segment Strategy

The target market for Small Step Child Care® is full-time working couples. Referral

marketing, direct-mail campaigns and community activity days will be the primary

types of marketing strategies utilized. Maintaining and enhancing its reputation with

families and in the community will be crucial in obtaining the planned market share

growth of this target market.

4.3 Location & Market Growth

According to Census 2010 data, the population growth rate for Bekasi is

approximately 3,48% per year, which is reflected in the market analysis

summary. However, the Grand Galaxy City area of Bekasi is experiencing a

residential construction boom. This is area of “New Golden Triangle” growth center

of industrial, offices, and commercial houses. This suggests that more

families continue to move into the Grand Galaxy City area, thus becoming potential

customers.

In our market analysis, we suggest a modest 6% yearly growth in the number of

potential customers.

4.4 Market Needs

With inflation continuing to rise each year, the typical Indonesian family now

requires dual or supplemental incomes. This trend has created a need for quality

child care services. We do not see this model changing in the foreseeable future. In

fact, based on the growth in the Bekasi area, specifically West Bekasi, we expect the

need to increase.

4.5 Market Trends

Currently there are more family caregivers than licensed child care facilities

nationwide. However, this business model can't keep up with the needs of the

growing child care industry. In the family care giver paradigm, space is limited and

quality of care is questionable - in many cases viewed as only slightly higher quality

than babysitter services.

4.6 Service Business Analysis

Small Step Child Care® is in the child care services industry, which includes several

models:

1. Licensed Child Care Facilities: Business facilities that offer child daycare

services.

2. Family Child Care Homes: Individuals that offer child daycare services in their

homes.

3. Specific Interest Based Programs: Businesses that offer specialized instruction

such as gymnastics, martial arts and athletics.

4. Church/Mosque Child Care Facilities: Religious organizations that offer child

daycare services in their communities.

4.7 Competition and Buying Patterns

Price, service, certification and reputation are critical success factors in the child care

services industry. Small Step Child Care® will compete well in our market by offering

competitive prices, high-quality child care services, and leading-edge educational

programs with certified, college-educated instructors, and by maintaining an

excellent reputation with parents and the community in which we serve.

4.8 Main Competitor

1. Family Child Care Homes:

Strengths: Established in market. "Personal" service. 

Weaknesses: Capacity - only allowed a certain number of

children. Non-professional stigma. 

2. Mosque/Church Day Care:

Strengths:. Already established in market. 

Weaknesses: May not appeal to customers of different religious

beliefs. Unlicensed facility.  Non-accredited. 

4.8 Strategy and Implementation Summary

Small Step Child Care® will focus on two subdivisions: 'Grand Galaxy City' and 'The

Villages of West Bekasi' which are new upscale community developments within a 2

square mile radius and boast over 900 new homes. 

The target customers are dual income, middle-class families who value the quality of

education and child care provided for their children ages 3-5 years.

4.9 Marketing Strategy

Marketing in the child care industry depends largely on reputation and referral. At

Small Step Child Care® that reputation will start within our community bolstered by

our involved commitment to those we serve. 

4.9.1 Promotion Strategy

We will depend on client referrals, community exposure and direct mail

campaigns as our main way to reach new clients.  As we change strategies,

however, we need to change the way we promote ourselves:

1. AdvertisingWe'll be developing our core positioning message: "Play, Learn, and Grow

together" to differentiate our service from the competition.  We will be using

brochure, poster, and direct mailto launch the initial campaign. 

2. Sales Brochure

Our theme and curriculum will help sell the child care to prospective clients. 

3. Direct MailWe will send quarterly direct mail campaigns to the housing developments in

a 10-mile radius of the child care.  

4.9.2 Marketing Programs

We will develop and maintain partnerships with local businesses that cater to the

needs of children. 

4.9.3 Positioning Statement

For families who value the importance of higher education and quality child care

services, Small Step Child Care® offers a great alternative to traditional child care

services and specific interest based programs. 

4.9.4 Pricing Strategy

Small Step Child Care® must charge appropriately for the high-end, high-quality

educational and care giving services we offer. Our revenue structure has to

support our cost structure, so the salaries we pay to assure quality services must be

balanced by the revenue we charge. 

We will be price competitive in the market we serve; however, we will not subscribe

to the "low price leader" concept. The quality of our service will support the prices we

charge.

4.9.5 Sales Strategy

Small Step Child Care® will sell its services and offerings.

We will be a one-stop shop for child care services, advanced learning and

specialized program offerings.  We will also be active in the community,

building a solid reputation with parents and the community.

4.9.5 Strategic Alliances

As mentioned previously, Small Step Child Care® will form professional alliances

with Impact Fitness to offer Drop-In child care services while parents work out.  We

will also partner with Kindergarden to provide referrals of their existing customers.  A

discounted rate will be offered in both cases.

Financial Plan

The Small Step Child Care® economy conditions will tend to rise. Small Step

Child Care® is a propriertorship that will start to gain profit in the third year and will

have average profit from the end of the fourth year.

Small Step Child Care® has a low enough price that Rp2.20.000 for children full-

time child care, after school Rp1.500.000 for child care, and Rp60.000/jam for child

drop-in.

In the first year we get 240 customers or equal to 20 children per month. Which

consists of 8 full-time child care children, 3 children after school child care and 9

child drop-in 4 child care. In the first year we get about Rp412.800.000 revenue.

In the second year we assume we get 300 customers or equal to 25 children per

month. Which consisted of 10 children full time child care, 11 children after school

child care and child drop-in 4 child care. In the second year we get around

Rp481.200.000.

In the third year we assume we get 420 customers or equal to 35 children per

month. Which consists of 20 full-time child care children, 8 children after school child

care and 7 drop-in child care child. In the third year we get around Rp853.200.000.

For the fourth year, 'Small Step Child Care' assume get 800 customers or equal to

40 children per month. Consisting of 28 children full time child care, after school care

8 children and 4 children drop-in. In the fourth year we get revenue

Rp1.017.600.000.

The following sections will outline the important financial details.

1.1 Income Statement

Year1 2 3 4

RevenueFull Time 250.800.000 319.200.000 680.400.000 844.800.000Drop-in 162.000.000 162.000.000 172.800.000 172.800.000

ExpenseStaff :

Security (2) 18.000.000 24.000.000 26.000.000 27.000.000Maid (2) 12.000.000 16.800.000 20.000.000 22.000.000

Care Staff (5) 27.000.000 27.000.000 27.000.000 27.000.000Marketing (2) 48.000.000 48.000.000 60.000.000 84.000.000Nutritionist 21.600.000 21.600.000 21.600.000 21.600.000

Teachers :Drawing (5) 60.000.000 60.000.000 60.000.000 60.000.000English (5) 60.000.000 60.000.000 60.000.000 60.000.000Singing (3) 43.200.000 43.200.000 43.200.000 43.200.000Music (2) 36.000.000 36.000.000 36.000.000 36.000.000

Rent House 90.000.000 90.000.000 90.000.000 90.000.000

Expensess :Electricity 9.000.000 9.000.000 10.800.000 14.400.000

Water 6.000.000 6.000.000 8.400.000 12.000.000

Food Expense 5.500.000 5.500.000 8.600.000 9.400.000Activity Expense 21.000.000 21.000.000 28.800.000 36.000.000

Motorcycle Expense - 500.000 500.000 500.000Medicine 1.000.000 1.000.000 1.000.000 1.000.000

Advertising :Broschures 900.000 900.000 900.000 900.000

School to school 1.000.000 1.000.000 1.000.000 1.000.000Poster 600.000 600.000 600.000 600.000

Total Expense 348.400.000 472.100.000 504.400.000 546.600.000Startup Expense 198.565.000 - - -

Loss/Profit (134.165.000) 9.100.000 348.800.000 471.000.000(134.165.000) (125.065.000) 223.735.000 247.265.000

Loss Loss Profit, BEP Profit

Service PriceFull Time Child Care Rp 1.900.000

After School Child Care Rp 1.000.000

Drop-in Rp 50.000/hour

1.2 Profit Yearly

Our projected profit and loss is shown on the following table, with sales

increasing from the first year to the fourth year. 

In years three and four, we are projecting full enrollment regarding cost of

sales. The investment return in these years supports the goal of opening

another campus at the end of the second year and begin the franchise

offering by the end of the fourth year.  Profit from the additional campuses and

income from franchising are not included in this business plan.  

1 2 3 4 Year

(200,000,000)

(100,000,000)

-

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

Profit/loss

profit/loss

1.3 Break Even Analysis

Human Resources Development

1 2 3 4 Year

(200,000,000)

(100,000,000)

-

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

(134,165,000) (125,065,000)

223,735,000

694,735,000

Human Resource Development is the integrated use of training, organization,

and career development efforts to improve individual, group and organizational

effectiveness. HRD develops the key competencies that enable individuals in

organizations to perform current and future jobs through planned learning activities.

Groups within organizations use HRD to initiate and manage change. Also, HRD

ensures a match between individual and organizational needs.

5.1Duty of the Human Resource1. Hiring Employee

Hiring is a process where the Human Resources development finding

new employess that suit with the need of Human Resources and Small

Step Child Care®.

These are some characteristic of the employee

For the teacher, Small Step Child Care® Human Resource would to

find for a teacher who

has the ability to communicate with children,

have patience,

have a high knowledge,

and has the ability to solve problems in the child.

For the employee, Small Step Child Care® Human Resource would to

find

Human Resources :

have a good interpersonal skill

know how to motivate others employee

know how to distribute the employee’s job

Marketing:

have a good interpersonal skill

know how to introduce to customer about our child

care

know how to develop the market

Finance:

know how to control the expense

know how to operate microsoft excel

have to be a careful, honest, and clever person

For the guard and maid we use security guards and helpers who have

insurance or who already has a certificate.

2. Motivating the EmployeeTo maintain the quality Small Step Child Care ®, Human Resource

Small Step Child Care ® tasked to motivate employees to work as much

as possible and do all the tasks wholeheartedly in order to keep the good

name Small Step Child Care ®.

3. Supervise the activity of the Employee

5.2 Organizational Structure

1. The President Small Step Child Care is the founder that is Mr./Mrs.

X

2. Director of Marketing Small Step Child Care® is Raden Surya

Kencana that is in charge to introduce Small Step Child Care® to

the people.

3. Director of Finance Small Step Child Care® is Micha Paramitha that

is in charge to maintain the finance of Small Step Child Care®.

4. Operational Manager Small Step Child Care® is Muh.Fariz Pratama

that is in charge to monitor the activities in Small Step Child Care ®

and as a means to place either accommodate suggestions from

employees and from the child's parents.

5. Director of Human Resource Small Step Child Care® is Siyan Chen

that is in charge to hire new employee, to motivate the employee.

President Small Step Child Care

Mr./Mrs. X

Director of

MarketingRaden Surya

Kencana

Directorof

FinanceMicha

Paramitha

Operational Manager

M.Fariz Pratama

Directorof

Human ResourceSiyan Chen