Kids SOAR After School Program
Business Plan 2007
Kids SOAR After-School Program
Business Plan for FISCAL YEAR 2007-08
Contributors: Athena Thomas: Owner/Director 4233 Old Town Way Upper Marlboro, MD 20774 Phone: (301) 894-1200 Fax: (301) 894-1201 Email: wecare@kidsoar.com Web: www.kidsoar.com
Confidential
Page 1
7/2/2012
Kids SOAR After School Program
I.
Business Plan 2007
Table of Contents
I.
Table of Contents ............................................................................................................................... 2
II.
Executive Summary ........................................................................................................................... 3
III.
Company Description ................................................................................................................... 4
IV.
Services .................................................................................................................................................. 5
V.
Marketing Plan ..................................................................................................................................... 6
VI.
Operational Plan ............................................................................................................................ 10
VII.
Financial Plan ................................................................................................................................... 12
Confidential
Page 2
7/2/2012
Kids SOAR After School Program
II.
Business Plan 2007
Executive Summary
Kids SOAR After School Program is a program of excellence that offers the extended family feel and support for the families that require it. We focus on the child and ensuring that the family unit is fully supported so that parents can work without worrying about the type of care their child is receiving. Our services are specifically for the families who work non-traditional hours. Our after hours care includes a full-course dinner, evening relaxation activities and areas for the children to sleep and rest. Kids SOAR’s programs include homework assistance, tutoring, computer training, specialty clubs, field trips and full day care. Our services are affordably priced because we are a non-profit organization. We rely on grant money to build additional services into the program. We will begin our first year out financially stable but will require additional funding sources toward the summer months; we plan to cover this deficit through an aggressive Summer Camp. We have solicited the collaboration of the Old Town Community Hospital to promote our services to their employees. They will work with us to better serve the community. Our competitors have an edge because they have been in existence for many years and have a reputation in the community, however their programs rarely have openings and do not offer care during non-traditional hours, which is now in greater demand in the service area. Coupled with the solid management and savvy marketing techniques employed by the team Kids SOAR plans to be the next big thing in quality, affordable child care.
Confidential
Page 3
7/2/2012
Kids SOAR After School Program
Business Plan 2007
III. Company Description Mission Statement: Our mission to become partners with parents, schools and the community in order to position children for success both in school and in their communities. Company Goals and Objectives: Our overall goal is to reduce the high school dropout rates by first addressing academic problems and social issues in the school-age child. Business Philosophy: Our philosophy is that children come first and when given the right tools, support, guidance and opportunity they will SOAR Step Out And beyond to Reach success. Our main focus will be toward low-income families and at-risk youth who are in danger of not completing their education successfully. The school age childcare industry is a booming industry that has not yet reached its capacity. The need for quality and affordable school age childcare is still high. Organizations like After School Alliance working to bring awareness to quality after school programs and to ensure that all children have access to affordable and quality care through the After School for All Project 2010. We have partnered with this movement and the Alliance. The most important company strengths are the genuine desire to help children succeed and the pool of resources that are available to our program. We have strategic partnerships with the local school system, tutoring services, teachers, and churches and mentoring programs. As the owner I bring several years of experience working with school age children and volunteer experience working in my children’s schools and on the PTA. Legal form of ownership: This effort will begin as a Limited Liability Corporation. We have chosen this form because the owner Athena Thomas will mainly run the business but this form will provide the necessary personal legal protection.
Confidential
Page 4
7/2/2012
Kids SOAR After School Program
Business Plan 2007
IV. Services The main service we offer is the after school program which operates Monday thru Friday, 2:00 p.m. – 9:00 p.m. Our program is non-traditional as we service parents with non-traditional work schedules. The after school program offers the following services: •
Tutoring
•
Homework Assistance
•
Mentoring
•
Character Development
•
Computer Training
•
Clubs
We will have a competitive advantage because we have non-traditional hours. The need for more non-traditional care is growing tremendously. Our disadvantage is funding, as we try to keep our services affordable sometimes our fees will be priced below industry standard which for some may think will result in lower quality. Our fee schedule is as follows: Traditional After School Program:
$50 per week, per child
Extended hours (after 6:30 p.m.):
$40 per week, per child
Tutoring Services:
$15 per session, per child (45 minutes)
Confidential
Page 5
7/2/2012
Kids SOAR After School Program
V.
Business Plan 2007
Marketing Plan
Market research The childcare market in Prince George’s County is growing, as developers build new housing communities and new schools are being built the need for childcare grows. In the Old Town community our research has shown that the greater need is for care during non-traditional hours. The majority of the families in our service area work in the local hospital and work non-traditional schedules. The schedule grid shows the specific area of need based on work schedules. WORK SCHEDULE
SINGLE PARENT
TWO PARENT FAMILY
TWO PARENT FAMILY
FAMILY WORKS @
(ONE PARENT
W/BOTH PARENTS
HOSPITAL
WORKING @
WORKING AT
HOSPITAL)
HOSPITAL
7:00 a.m. to 3:00 p.m.
20%
18%
8%
7:00 a.m. to 7:00 p.m.
40%
18%
38%
7:00 p.m. to 7:00 a.m.
25%
30%
6%
3:00 p.m. to 11:00 p.m.
35%
45%
20%
11:00 p.m. to 7:00 a.m.
11%
15%
4%
The market prediction based on Maryland Child Care Network statistics indicates a 4% growth in the number of school-age programs in the state of Maryland between 2007 – 2011. Locate Child care reported a 50% increase in the number of requests for evening care for school-age children.
Market research - How? Our primary research was conducted via a neighborhood survey that was mailed to the households of the Old Town community. We had a 70% completion rate for the Confidential
Page 6
7/2/2012
Kids SOAR After School Program
Business Plan 2007
surveys. Our secondary research came from the Maryland Child Care Network published statistics and the US Census data.
Services Since this is a fairly new community, the parents who live there need our services. Our service has been stated as being convenient, quality and affordable. Features and Benefits The major benefit of our service is the location, within five miles of hospital. The price is affordable even for single parents and the dinner and after hour’s service for parents who work past 6:00 p.m. are our biggest attraction. The center closes daily at 12:00 midnight.
Customers Our customers are middle class families with children ages 5- 12 years old that live in the Old Town community and families of children who attend the Old Town Christian Academy and the Newton Hall Elementary School.
Competition Our two major competitors are the Newton Hall Elementary School Before and After Care Program, located at 54789 Newton Way Upper Marlboro, MD 20774 and the Little Bee Learning Center located at 7189 Crayton Circle Forest Heights, MD 20773, which is a ten minute drive from the Old Town community. Table 1: Competitive Analysis Newton BASP
Little Bee BASP
Importance to Customer
X
Offers traditional hours & services
Offers traditional hours & services
1
Price
We are priced below market rate
X
Priced slightly below market rate
Priced at market rate
2
Quality
Highly trained staff
X
Staff training requirements
Minimum staff training
1
FACTOR
Me
Services
Nontraditional hours & dinner
Confidential
Strength
Weakness
Page 7
7/2/2012
Kids SOAR After School Program
FACTOR
Reliability
Stability
Me
Center is open when specified, even when school is closed
Strength
Business Plan 2007
Weakness
X
Prone to staff turnover
X
Newton BASP
Little Bee BASP
Importance to Customer
based on school system
required above state requirements
Center is open per school calendar
Center hours change periodically and have frequent closings
2
Moderate staff turnover
High staff turnover
1
Located in Forest Heights, 10 minutes away.
1
Located in Old Town
X
Located in outskirts of Old Town, in school
Appearance
Center is bright, clean and inviting
X
Center is in shared space
Center is often in disarray.
2
Image
Center’s image is not established
Center’s image is educational
Center’s image is not good
2
Location
X
Our advantage is that we are coming into a fairly new community that has seen a sudden growth in families. The only two centers that serve the area are either at capacity or not equipped to service the emerging community. While one of our major disadvantages is that we are new and don’t have a service record we are looking to overcome this by becoming more visible in the community and launching several open houses. Our major advantage over our competitors is that we offer non-traditional hour care and dinner services.
Niche Our niche market, are the medical professionals who work 12-16 hour shifts after 6:00 p.m.
Confidential
Page 8
7/2/2012
Kids SOAR After School Program
Business Plan 2007
Strategy We have partnered with the hospital to host an information session for the employees to learn more about our services. Promotion Our marking campaign will consist of full-color flyers and signs. We will have several informational sessions at the hospital where will be pass out brochures and flyers about our services. We also plan to run an ad in the local newspaper announcing the opening of the center. Additional marketing will consist of open houses and word of mouth. Promotional Budget Our initial marketing budget is $5000. This is to pay for the marketing materials, banners, advertising and open houses. After startup we will allot $250 per quarter for additional marketing materials and to run an add right before peak periods.
Confidential
Page 9
7/2/2012
Kids SOAR After School Program
Business Plan 2007
VI. Operational Plan Location Our center will be located in the Old Town development of Upper Marlboro, Maryland. Old town is located within five miles of the local hospital and 85% of the residents work there and work non-traditional schedules. We have leased space, approximately 3000 square feet, inside the Old Town Church that consists of a community room, five classrooms, a kitchenette, storage space and two offices. Our space is located in the addendum of the building and will not be accessible to the church, which includes a separate entrance. The church is located on a beautiful wooded lot, in the center of the Old Town housing and has ample parking and lighting. We will lease the space at a reasonable rate with all utilities included.
Personnel & Management Our team is lead by the Owner/Director, who has over 10 years of experience working with school-age children. She operated a before and after care family day care in her home since 1995. She is a level four in the Maryland Credentialing program and holds a B.A. degree in English from the University of Maryland. The Director and Assistant Director will manage the daily operation of the center. The center will employ five Group Leaders, three Substitutes and five Aides.
Director/Owner Assistant Director
K-1 Group Leader Substitute
1-2 Group Leader Aide
2-3 Group Leader Substitute
Aide
3-4 Group Leader Aide
5-6 Group Leader Substitute
Aide
Aide
Figure 1 Organization Chart
Confidential
Page 10
7/2/2012
Kids SOAR After School Program
Business Plan 2007
All staff members must meet the training and experience requirements set forth by the Office of Child Care and will also be required to participate in the Maryland Credentialing program to maintain professional development. Aides and Substitutes are exempt from participating in the program unless they decide to seek promotion to a Group Leader or above.
Suppliers We have established relationships with the following vendors to provide equipment, supplies and food to our program: •
Cloverland Dairy – Milk products
•
Giant Food – Produce
•
New Hampshire School Supply – Furniture, classroom supplies
•
Costco – Bulk food supply for meals
Accounting Procedures Payments will be due bi-weekly on a set schedule. We will allow a five-day grace period for late accounts, with a late fee. Accounts that are five days or more past due will result in the suspension of their child from the program until payment is made in full. Accounts that result in suspensions two or more times will be terminated. Late payment, suspension and termination notices will be given in writing. Managing Your Accounts Payable The lease payment is due on the first day of each month and all other accounts are set up on a Net 30 day term with due dates on the 15th of each month. That way we don’t have to worry about depleting all of our resources at one time per month.
Confidential
Page 11
7/2/2012