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BUSINESS PLAN
BUSINESS PLAN PREPARED BY
Lois Banks
Owner
456 Pick Up Sticks Lane
Anderville, StateA
555-555-5555
DATE PREPARED
December 200B
JUST LIKE HOME CHILD CARE BUSINESS PLAN
TABLE OF CONTENTS
EXECUTIVE SUMMARY 5
Venture History 5
Venture Description 5
Venture Organization 5
Venture Market 5
Venture Operations 5
Venture Financing 6
MANAGEMENT AND ORGANIZATION 7
Management Team 7
Compensation and Ownership 7
Board of Directors/Advisory Council 7
Infrastructure 8
Contracts and Franchise Agreements 8
Insurance 8
Employee Stock Option Plan and Other Incentives 8
Organization Charts 8
PRODUCT / SERVICE 9
Purpose of the Product / Service 9
Unique Features 9
Stage of Development 10
Future Research and Development 10
Trademarks, Patents, Copyrights, Licenses, Royalties 10
Government Approvals 10
Product / Service Limitations 10
Product / Service Liability 11
Related Products / Services and Spin-Offs 11
Production 11
Facilities 12
Suppliers 12
Environmental Factors 12
MARKETING PLAN 13
Industry Profile 13
Current Size 13
Growth Potential 13
Geographic Locations 13
Industry Trends 14
Seasonality Factors 14
Profit Characteristics 14
Distribution Channels 14
Basis of Competition 15
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
TABLE OF CONTENTS
Competition Profile 15
Competitive Analysis Grid 16
Customer Profile 17
Target Market Profile 17
Pricing Profile 18
Gross Margin on Product / Services 18
Break-Even Analysis 18
Market Penetration 18
Distribution Channels 18
Sales Representatives / Direct Sales Force 18
Direct Mail / Telemarketing 18
Advertising and Promotion 19
Packaging and Labeling 19
Service and Warranties 19
Trade Shows 19
Future Markets 19
OPERATING AND CONTROL SYSTEMS 20
Administrative Policies, Procedures, and Controls 20
Receiving Orders 20
Billing the Customers 20
Paying the Suppliers 20
Collecting the Accounts Receivable 20
Reporting to Management 20
Staff Development 20
Inventory Control 20
Handling Warranties and Returns 20
Monitoring the Company Budgets 20
Security Systems 21
Documents and Paper Flow 21
Planning Chart 21
Product / Service Development 21
Manufacturing 21
Financial Requirements 22
Marketing Flow Chart 22
Market Penetration 22
Management and Infrastructure 22
Risk Analysis 22
Salvaging Assets 22
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
TABLE OF CONTENTS
GROWTH PLAN 23
New Offerings to Market 23
Capital Requirements 23
Personnel Requirements 23
Exit Strategy 24
FINANCIAL PLAN 25
Sales Projections 25
Income Projections 25
Cash Requirements 25
Sources of Financing 25
Projected Cash Flow Statements
Projected Year-End Income Statement
Projected Year-End Balance Sheet
Ratio Analysis
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
EXECUTIVE SUMMARY
Venture History
Just Like Home Child Care is completing its second full year of operation. The
center has been at full capacity (six children) based on current staffing since
month four of business. We are now poised for growth as we look to better
serve our existing clientele and fully utilize our child care facility.
Venture Description
Just Like Home Child Care is a licensed family child care center. Children from
infancy through preschool are the current population served. Just Like Home
provides a safe, fun and stimulating learning environment for children of
working parents.
Venture Organization
At present, Just Like Home is a sole proprietorship owned and operated by
Lois Banks. It is licensed by Window County and StateA as a family child care
center. Within the next four months, all requirements will have been met to
upgrade the license to a group child care license. Once this license is obtained,
Just Like Home can begin implementing its expansion plans. At this point the
center may incorporate.
Venture Market
We serve children from two weeks to five years old. The families we market to
are either single-parent or two-income families. The parents of our children
tend to be well-educated professionals making over $40,000 per household
per year.
A market also exists for children between ages five to thirteen in the after-
school and summer care niche. We intend to start serving this market in year
three of operation.
Venture Operations
Just Like Home is open Monday through Friday from 7:30 a.m. to 6:30 p.m.
The care provider is the owner Lois Banks.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
EXECUTIVE SUMMARY
Venture Financing
Initial financing was provided by Lois and Jack Banks in the amount of
$10,000. This investment was used to buy furniture, equipment, toys and to
make some minor alterations to the facility. Growth funding is projected to
come out of earnings.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
MANAGEMENT AND ORGANIZATION
Management Team
Lois Banks is the owner and primary provider of Just Like Home Child Care—a family child
care center. Just Like Home represents a second career for Lois after taking early retirement
from the insurance industry. Lois holds an associates degree in general studies from
Berkshire County College. Throughout her career and while raising her own children, Ms.
Banks spent countless volunteer hours teaching toddler Sunday school and acting as a
sponsor for the church youth group. Prior to opening Just Like Home, Lois attended StateA
child care training and continues to attend seminars and conferences related to child care.
Lois keeps her first-aid training current and is certified in CPR (cardio-pulmonary
resuscitation).
Three well-qualified people serve as back-up personnel if the owner is ill or needs to be
away for personal reasons. Joan Hurst, Peggy Hill and the owner’s husband, Jack Banks, are
all CPR certified and meet state regulations for child care workers.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
MANAGEMENT AND ORGANIZATION
Infrastructure
The following professionals complete the Just Like Home team:
Attorney Jake Bernstein
Bernstein & Associates
555-555-5555
Insurance
Just Like Home carries disability insurance on the owner. The center also carries general
liability plus supplemental coverage.
Organization Charts
Lois Banks, the owner, is the sole full-time worker and manages the business. Growth may
include 2-4 employees who will all report directly to Lois.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
PRODUCT / SERVICE
Unique Features
All family child care providers bring their unique personality and approach to working with
children and Lois Banks is no exception. Ms. Banks is in this business because of her love of
children and the rewards associated with caring for them and helping them learn. Raising
her own children was a joy. Participating in the lives of the center’s children is a bonus.
The facility itself is unique and has proven a strong selling point with the center’s existing
clientele. The Banks’ home has a finished walkout basement of almost 700 square feet. This
entire area is devoted to the child care operation. Three separate rooms (plus a bathroom)
allow for quiet nap areas and calm time. One of the smaller rooms is used for two infant
cribs and can also accommodate a playpen for a tired toddler who is off the center’s
schedule. The other small room is used for watching a special video, reading or other quiet
activities. The large open area of around 400 square feet houses learning/play stations and
a kitchenette and snack area.
The basement center opens up to a fenced yard/play area. Safe, age-appropriate play
equipment is in place. The children can enjoy good weather without having to walk to a
park near busy streets.
The day is structured to provide stimulus and fun while exercising small bodies and
developing inquisitive minds. Music, rest time, snacks, free playtime, reading and interactive
games are woven into each day.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
PRODUCT / SERVICE
Additionally, the children own pets at the center—fish and two guinea pigs. Children take
turns feeding their pets and continually make up stories and draw pictures surrounding their
imagined exploits. The pets help the children connect to the child care experience and look
forward to returning each day—especially when they are new to the center.
Stage of Development
Just like Home is finishing its second year of operations. The business successfully
completed the start-up phase and is now looking at changes for the future and planned
growth.
Government Approvals
Just Like Home is a licensed facility of Window County, StateA. Family child care centers
are highly regulated. Just Like Home is in compliance with all facilities regulations and
staffing requirements of the county and StateA. Safety inspections are done on a regular
basis. Smoke detectors are on each floor of the house. Emergency plans are posted for
tornado, fire, accident and illness. Fire drills are conducted every three months and a
tornado drill every spring. Every staff member is CPR certified. There are never more than
six children in the center. No more than two of the children are under the age of 18 months,
and at least two of the children are over the age of 30 months.
Just Like Home is in the process of upgrading to a group child care license. This license will
permit it to grow and serve more children.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
PRODUCT / SERVICE
Production
The owner provides care.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
PRODUCT / SERVICE
Facilities
The basic facility is described in the “Unique Features” section of the plan. Several other
details are worth mentioning.
Since the entire 700-square-foot basement area is for child care, all furniture used by the
children is sized for them. Chairs and tables are small. Well-anchored footstools give
toddlers access to the bathroom and kitchenette sinks. The entire area is childproof,
containing nothing that poses a threat to inquisitive fingers or toes.
Learning/play stations are good quality and well constructed. The “Good Eats Grill” play
kitchen allows for endless make-believe menus and methods of cooking including a toddler-
sized charcoal grill. Our “Tool Time” area includes a large, low surface for building with
blocks and working with age-appropriate toy tools. The “Artist’s Corner” has a plastic floor
covering so spilled paint is not an issue. Non-toxic finger paints, clay and crayons provide
plenty of inspiration for supervised artistic expression by the preschoolers.
Outdoor playground equipment is safe, sturdy and regularly inspected. Just Like Home is
very careful to buy well-tested, age-appropriate equipment. The preschoolers have the
opportunity to climb and slide close enough to the ground to be safe on well-anchored play
equipment with no sharp edges. The equipment is confined to an area of the yard that has
sand several inches deep for shock absorption. Balls and various push/pull toys make up
the balance of the outdoor experience.
Suppliers
Suppliers are the same as most families are using for their child care needs. The local
grocery and toy store provide for most of the needs. Lois also frequents the educational
materials store to find appropriate fine-motor-skill activities and art supplies. Reading
materials are updated constantly.
Environmental Factors
Obviously, our main environmental concerns are safety and cleanliness. Just Like Home has
complied with regulations and passed state inspections for fire and health. We have met the
standards for group child care licensing for future expansion.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
MARKETING PLAN
Industry Profile
Current Size
Annual sales in the child care industry are estimated at $28,855 million (zapdata.com).
Three years ago about 605,000 workers held wage and salary jobs in child care
establishments. An additional 536,000 self-employed persons worked in the industry; most
of the self-employed were family child care providers, and some were self-employed
managers of child care centers (The Urban Institute).
Nationwide over three-fourths of preschool children with employed mothers are regularly
cared for by someone other than their parents. Nationally 48 percent of working families
with children under 13 pay for child care arrangements (nonrelative care). StateA closely
mirrors national statistics at 47 percent (The Urban Institute).
In StateA, fully two-thirds of mothers with children under five are employed. Four out of
five children under five with employed mothers are in a form of nonparental child care such
as center-based care, family child care centers, or relative care. Two-fifths of children under
five with employed mothers are in full-time (35 hours or more per week) nonparental care.
Approximately one-seventh of StateA’s infants, toddlers and preschoolers are in family child
care centers. Higher income families use family child care centers more often than lower
income families (The Urban Institute).
Growth Potential
Many of the factors affecting society as a whole have established long-lasting trends within
the child care field. These trends have created a strong need within America for child care,
with no end in sight.
Over the last 30 years, the proportion of children living with one parent has grown from
12 percent to 28 percent (Census Bureau’s report on Marital Status and Living
Arrangements). Half of all children will witness the breakup of a parent’s marriage. Of
these, close to half will also see the breakup of a parent’s second marriage (The Abolition of
Marriage by Maggie Gallagher).
Even among children living with both parents, the rate of two income families continues to
grow. As of March 200A, six out of every 10 mothers of children under age three were in
the labor force). Seven of every 10 mothers of children ages three to five, were in the labor
force (U.S. Department of Labor, Women’s Bureau). These statistics represent a 7 percent
increase over 10 years ago.
The need for child care services is clear, and the outlook for the need remains strong. Just
Like Home maintains a waiting list of nine children. Inquiries when the waiting list is at
capacity are filed for future mailings when the waiting list again has room. Our facility is
large enough to accommodate 12 more children (35 square feet per child is required). We
intend to expand to service 12 additional children over the next two years.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
MARKETING PLAN
Geographic Locations
Child care centers operate across the nation in every community.
Anderville, the county seat of Window County, is thriving. The city has a population of
110,000; the county’s population is over 322,000. The county’s population has grown 14
percent in the last decade. Over 6 percent of the population is under five years old. Over 20
percent of the population are college graduates and the home ownership rate is 60 percent.
The median household income is $51,286. Unemployment in the city is less than 3 percent
(Anderville Chamber and U.S. Census Bureau). Population in the state is expected to grow
by 12 percent over the next three decades and employment will grow by 16 percent. The
rate of children under five is expected to remain fairly steady (metcast.org).
Anderville has a vibrant economy, high median wage and steady growth. As home to four
colleges, including the state university, it experiences a steady influx of young people who
marry, have children and stay awhile. While growth in surrounding areas may be primarily
in the older populations, the city will always have plenty of children needing care.
Industry Trends
As the target market’s needs change, the industry adapts. Centers around the country are
offering round-the-clock care for children of non-traditional and traveling workers. A trend
well established on the West Coast is “occasional care” for the parent whose regular
arrangements have fallen through or for the parent who only needs outside caretakers on
occasion. This is proving to be a large market; however, these arrangements bring
scheduling and staffing challenges with them and must be well thought out before
implementation.
Seasonality Factors
Child care is needed year-round for the infant and preschooler. Older children need care in
the summertime when school is out (when we see a lot of self-care) and after school
programs during the school year.
Profit Characteristics
According to RMA (Robert Morris Associates) data, child care centers with under $1 million
in annual sales, average a profit before taxes of 6.7 percent.
Distribution Channels
This industry consists of establishments that provide paid care for infants, prekindergarten
or preschool children, or older children in after-school programs. Formal child care centers
include nursery schools, preschool centers, Head Start centers, and group child care centers.
Self-employed workers in this industry provide care from their homes (family child care).
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
MARKETING PLAN
Basis of Competition
While price is a consideration for parents when choosing child care, the quality of care and
a location accessible to the parents’ work or home are primary factors. The number-one
reason parents give for switching their child’s provider is that they don’t think the provider
is responding to their needs as parents. (Family Child Care Council) The hours and days of
operation play a large part in the child care decision.
Competition Profile
Direct Competition: There are 16 accredited child care facilities and 101 licensed child care
facilities in the city limits. These centers have anywhere from six to 70 children, ranging
from newborn to after-school age. Of these centers, three are in the same general area as
Just Like Home. Also, two family child care homes operate within a five-mile radius of Just
Like Home. Most of these facilities have waiting lists for enrollments. The direct
competition has similar hours of operation except that two offer nighttime and sick-child
care.
Indirect competition: It is more difficult to get a good understanding of the indirect
competition in the Anderville area. It includes unlicensed child care providers, family
members and friends. We can easily communicate our advantages over unlicensed child care
providers; however, we do not try to convince families that we are an advantage over
family, friend or parental care.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
MARKETING PLAN
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
MARKETING PLAN
Customer Profile
Although we concentrate on the needs of the child, the real customer is the person who
pays for the services—usually the parent. A “typical” Just Like Home customer has the
following characteristics:
✿ Average age from 25 – 40 years old
✿ Starting a family or have one to three children
✿ Work in a professional environment
✿ Need child care services Monday through Friday
✿ Earn $45,000 to $100,000 yearly household income
✿ Interested in the development of their children and wish to be involved
in this process.
All children seem to thrive in an environment where they receive one-on-one attention,
learning tools and safety. However, the facility’s size and number of personnel limit the
number of children who can be served by Just Like Home. We seek children who
✿ Come to Just Like Home as infants or under 18 months of age
✿ Enjoy interaction and are naturally curious
✿ Respond well to the environment of family child care.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
MARKETING PLAN
Pricing Profile
Just Like Home pricing strategy is to price slightly higher than the average family child care
facility due to the uniqueness of the service. The prices will be lower than many traditional
child care centers or a nanny.
Age Weekly Rate Extended Hours
Infant (newborn to 11 months $175.00 $5.00
Toddlers (12-35 Months) $150.00 $5.00
Preschool (3-5 Years) $125.00 $5.00
Break-Even Analysis
Full time enrollments of six children are required to compensate the owner at her desired
income level and cover all expenses.
Market Penetration
Distribution Channels
When Just Like Home began, enrollment was steady through contacts at Lois Banks’ church.
Word of mouth is our strongest ally. Just Like Home now has an adequate number of
customers and a waiting list in place. Although our strategy may be slightly different from
traditional business, we feel promotion is key to our success. Our primary promotional
efforts go toward retaining our existing customers—not seeking new ones.
Sales Representatives/Direct-Sales Force
Lois Banks is the representative of Just Like Home. Her church and community contacts
keep the center fully enrolled.
Direct Mail / Telemarketing
We stay in contact with our existing clientele and those on our waiting list, through a
monthly newsletter. It is mailed to the waiting list and hand-delivered to existing
customers. We highlight the children’s activities and accomplishments for the month and
pass along worthwhile information from parenting magazines and other sources.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
MARKETING PLAN
Trade Shows
Just like Home does not exhibit in trade shows. Franchise operations can benefit from this
type of promotion, but our goals do not include that kind of growth.
Future markets
We intend to offer after-school and summer care to our existing customers as their children
grow and their needs change. This service is projected to start in the fall of 200C.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
OPERATING AND CONTROL SYSTEMS
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
OPERATING AND CONTROL SYSTEMS
Security systems
Written emergency plans are posted. Safety locks are in place on doors and outside
gates. Childproof cabinet locks and electrical protectors are in place.
Planning chart
Product / Service Development
Our day is scheduled so the children become accustomed to a comfortable routine and
know what to expect. A detailed daily schedule is part of the Parent Handbook included
in the Appendix.
Details concerning center policies covering nutrition, discipline and field trips are also
in the Parent Handbook.
✿ After school care to begin in the fall of 200C.
✿ Six more children and a second full time worker to be added in
200D. Summer care for the after school population will also be
offered.
Manufacturing
Not applicable.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
OPERATING AND CONTROL SYSTEMS
Financial Requirements
The older children served by after school care will need different reading materials, toys, a
few larger chairs and at least one piece of outdoor equipment geared to older children. We
have budgeted $800 for these items.
Additional beds, mats, toys, seating will be need for the six additional preschoolers to be
added in 200D. Another $600 is budgeted for this addition
Marketing Flow Chart
The monthly newsletter will continue. Each child’s birthday is on the center’s calendar and
an appropriate celebration is planned. Holiday events (which include parents toward the end
of the week) are also planned.
Market Penetration
Efforts to promote to new customers will include:
✿ Being visible through publications, college classes, and local
organizations as the family child care expert. Contacts have been
established and some guest speaking has begun.
✿ Providing a packet of information to help new parents evaluate their
child care needs and find an appropriate provider.
✿ Offering quarterly open houses to potential new parents and free
consultations.
Management and Infrastructure
Lois Banks will remain the owner and manager.
Risk Analysis
The liability issues have already been addressed in the “Product/Service Liability” section.
Future business risk exists only if sweeping social change made child care obsolete. The real
business risk lies in the possibility that Lois Banks could become unable to care for the
children. Personal disability insurance has been purchased for this eventuality.
If the facility itself were to become unusable for a time due to fire or other disaster, steps
could be taken to temporarily take care of the children in an employee’s home or possibly in
church facilities. Licensing issues would need to be addressed in these circumstances.
Salvaging Assets
Used tot furniture, toys, outside equipment and games, etc., make up the assets of Just Like
Home. They could be sold for very little on the dollar—a better plan might be to donate
them to a charity and take the tax deduction.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
GROWTH PLAN
Capital Requirements
Over the next two years, we see expenditures of $1,400 to expand our offerings. These
expenditures will be expensed at the time of purchase. These additional pieces of
equipment will not be carried as capital assets.
After school and summer program:
✿ Used swing set $400
✿ Books $150
✿ Toys/games $100
✿ 4 Chairs $150
Six more preschool children:
✿ 6 Mats $240
✿ Chairs & Table $200
✿ Toys/games $160
Personnel Requirements
Two to three teenagers will be hired at $6.00 per hour to assist with the after-school and
summer program. These teens will essentially job share so that they can continue to
participate in their own school and summer activities and still be employed. Several
neighborhood teens have already expressed interest in working at Just Like Home.
Full-time help will be required in 200D to accommodate six new enrollees. The existing on-
call employees have expressed strong interest in sharing this position. This arrangement will
provide the ideal flexibility for the employees and for Just Like Home. Through the Banks’
church, other potential back-up workers have been identified.
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
GROWTH PLAN
Exit Strategy
Several possibilities exist:
✿ Close the center and sell the used assets or donate them to a charity.
✿ Hire caregivers to run the center while Ms. Banks focuses on her books
and curricular endeavors.
✿ Sell the business to one of the employees (problematic since the center
is in the Banks’ home).
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JUST LIKE HOME CHILD CARE BUSINESS PLAN
FINANCIAL PLAN
Sales Projections
Sales projections are based on the existing six enrollees for 50 weeks each year. Starting in
September of 200C we project three after-school enrollees bringing sales for 200C to
$47,736. In 200D these three school age children will be in our summer care program. In
September of 200D we project having six children in our after-school program. Projections
for 200D also include adding another full-time staff member and enrolling six more infant
through preschooler age children for the entire year for sales of $103,431.
Income Projections
Projected pre-tax income for 200C is $32,833. The owner plans to take a minimum draw of
$2,000 per month. This draw will increase each year. Taxes are not paid by a sole
proprietorship. The estimated tax obligation for the owner is projected in the cash flow of
the plan but not all of the tax deductions are accounted for here. Lois and Jack Banks take
tax deductions for rent and utilities for the day care center so their accountant will
determine the actual tax liability.
In 200D and 200E pre-tax income increases to $54,890 and $62,849 with the center
operating at capacity.
Cash Requirements
Just Like Home will require new equipment in the amount of $1,400 over the next year.
Staffing costs will rise with rising enrollment. Some costs such as food will rise in
proportion to enrollment, other costs will remain steady.
Sources of Financing
Earnings will provide the necessary funding for Just Like Home’s growth. In the event that
enrollment lags behind hiring (which is not expected), the owner will forego her draw until
the cash is again available.
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Just Like Home Child Care
Cash Flow Statement (Projected)
200C Pre Start-up JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Cash In
Cash Sales 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736
Collections from Accounts Receivables - - - - - - - - - - - - -
Equity Received - - - - - - - - - - - - - -
Loans Received - - - - - - - - - - - - - -
Other Cash In (receipts from other assets) - - - - - - - - - - - - -
Other Cash In (interest, royalties etc.) - - - - - - - - - - - - -
Total Cash In - 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736
Total Cash Available 3,600 7,470 7,711 8,937 10,088 8,039 8,705 6,492 5,463 6,633 6,252 7,247 8,726 51,336
Cash Out
Inventory Expenditures
Inventory/Raw Material (Cash) - - - - - - - - - - - - - -
Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - - -
Production Expenses - - - - - - - - - - - - - -
Operating Expenses
Advertising - 15 15 90 15 15 15 15 15 90 15 15 15 330
Bank Charges - - - - - - - - - - - - - -
Dues & Subscriptions - 35 - - - - - - - - - - - 35
Insurance - 35 35 35 35 35 35 35 35 35 35 35 35 420
Licenses & Fees - - - - - - - - - - - 50 - 50
Marketing & Promotion - - - - 40 60 - 30 30 - 60 - 40 260
Meals & Entertainment - 50 - - - - 50 - - - - - - 100
Miscellaneous - - - - - - - - - - - - - -
Office Expense - 10 10 10 10 10 10 10 10 10 10 10 10 120
Office Supplies - 300 - - 300 - - 300 - - 300 - - 1,200
Outside Services - - - - - - - - - - - - - -
Payroll Expenses
Salaries & Wages - 160 160 160 160 160 160 1,160 160 547 547 547 547 4,468
Payroll Taxes - 24 24 24 24 24 24 174 24 82 82 82 82 670
Benefits - - - - - - - - - - - - - -
Professional Fees - 350 - - 350 - - 175 - - 175 - - 1,050
Property Taxes - - - - - - - - - - - - - -
Rent - - - - - - - - - - - - - -
Repairs & Maintenance - 50 50 50 50 50 50 50 50 50 50 50 50 600
Shipping & Delivery - - - - - - - - - - - - - -
Telephone - 35 35 35 35 35 35 35 35 35 35 35 35 420
Training & Development - - - - - - - - - - - - - -
Travel - 250 - - - - 250 - - - - - - 500
Utilities - - - - - - - - - - - - - -
Vehicle - - - - - - - - - - - - - -
Field Trips/Arts & Crafts - 40 40 40 40 40 40 40 40 40 40 40 40 480
Equipment/Toys/Books - - - - - - - - 800 - - - - 800
Food & Child Supplies - 275 275 275 275 275 275 275 275 300 300 300 300 3,400
Paid on Account - - - - - - - - - - - - - -
Non-operating Costs
Capital Purchases - - - - - - - - - - - - - -
Estimated Income Tax Payments - - - - 2,585 - 2,438 - - 1,837 - - 2,989 9,850
Interest Payments - - - - - - - - - - - - - -
Loan Principal Payments - - - - - - - - - - - - - -
Owner's Draw - 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Other Cash Out - - - - - - - - - - - - - -
Total Cash Out - 3,629 2,644 2,719 5,919 2,704 5,382 4,299 3,474 5,026 3,649 3,164 6,144 48,753
Monthly Cash Flow (cash in - cash out) - 241 1,226 1,151 (2,049) 1,166 (2,012) (1,129) (204) (382) 995 1,480 (1,500) (1,017)
Beginning Cash Balance 3,600 3,600 3,841 5,067 6,218 4,169 5,335 3,322 2,193 1,989 1,608 2,603 4,082 3,600
Ending Cash Balance 3,600 3,841 5,067 6,218 4,169 5,335 3,322 2,193 1,989 1,608 2,603 4,082 2,583 2,583
Just Like Home Child Care
Cash Flow Statement (Projected)
200D JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Cash In
Cash Sales 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431
Collections from Accounts Receivables - - - - - - - - - - - - -
Equity Received - - - - - - - - - - - - -
Loans Received - - - - - - - - - - - - -
Other Cash In (receipts from other assets) - - - - - - - - - - - - -
Other Cash In (interest, royalties etc.) - - - - - - - - - - - - -
Total Cash In 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431
Total Cash Available 11,097 12,412 15,402 18,352 16,355 19,114 15,355 15,592 18,651 17,403 20,063 23,208 106,014
Cash Out
Inventory Expenditures
Inventory/Raw Material (Cash) - - - - - - - - - - - - -
Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - -
Production Expenses - - - - - - - - - - - - -
Operating Expenses
Advertising 25 25 125 25 25 25 25 25 125 25 25 25 500
Bank Charges - - - - - - - - - - - - -
Dues & Subscriptions 35 - - - - - - - - - - - 35
Insurance 35 35 35 35 35 35 35 35 35 35 35 35 420
Licenses & Fees - - - - - - - - - - 50 - 50
Marketing & Promotion - 60 - 60 130 60 60 60 60 60 - 70 620
Meals & Entertainment 100 - - - - 100 - - - - - - 200
Miscellaneous - - - - - - - - - - - - -
Office Expense 15 15 15 15 15 15 15 15 15 15 15 15 180
Office Supplies 300 - - 300 - - 300 - - 300 - - 1,200
Outside Services - - - - - - - - - - - - -
Payroll Expenses
Salaries & Wages 2,047 2,047 2,047 2,047 2,047 2,714 3,714 2,660 3,648 2,594 2,594 2,594 30,753
Payroll Taxes 307 307 307 307 307 407 557 399 547 389 389 389 4,613
Benefits - - - - - - - - - - - - -
Professional Fees 350 - - 350 - - 175 - - 175 - - 1,050
Property Taxes - - - - - - - - - - - - -
Rent - - - - - - - - - - - - -
Repairs & Maintenance 50 50 50 50 50 50 50 50 50 50 50 50 600
Shipping & Delivery - - - - - - - - - - - - -
Telephone 35 35 35 35 35 35 35 35 35 35 35 35 420
Training & Development - - - - - - - - - - - - -
Travel 350 - - - - 350 - - - - - - 700
Utilities - - - - - - - - - - - - -
Vehicle - - - - - - - - - - - - -
Field Trips/Arts & Crafts 65 65 65 65 65 65 65 65 65 65 65 65 780
Equipment/Toys/Books 600 - - - - - - - - - - - 600
Food & Child Supplies 485 485 485 485 485 485 485 485 485 485 485 485 5,820
Paid on Account - - - - - - - - - - - - -
Non-operating Costs
Capital Purchases - - - - - - - - - - - - -
Estimated Income Tax Payments - - - 4,336 - 4,222 - - 3,070 - - 4,839 16,467
Interest Payments - - - - - - - - - - - - -
Loan Principal Payments - - - - - - - - - - - - -
Owner's Draw 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800
Other Cash Out - - - - - - - - - - - - -
Total Cash Out 7,199 5,524 5,564 10,511 5,594 10,963 7,916 6,229 10,535 6,628 6,143 11,002 93,808
Monthly Cash Flow (cash in - cash out) 1,315 2,990 2,950 (1,997) 2,920 (2,610) (713) 1,924 (1,247) 2,660 3,145 (1,714) 9,623
Beginning Cash Balance 2,583 3,898 6,888 9,838 7,841 10,761 8,152 7,439 9,363 8,115 10,775 13,920 2,583
Ending Cash Balance 3,898 6,888 9,838 7,841 10,761 8,152 7,439 9,363 8,115 10,775 13,920 12,206 12,206
Just Like Home Child Care
Cash Flow Statement (Projected)
200E JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Cash In
Cash Sales 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390
Collections from Accounts Receivables - - - - - - - - - - - - -
Equity Received - - - - - - - - - - - - -
Loans Received - - - - - - - - - - - - -
Other Cash In (receipts from other assets) - - - - - - - - - - - - -
Other Cash In (interest, royalties etc.) - - - - - - - - - - - - -
Total Cash In 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390
Total Cash Available 21,494 23,183 26,547 29,871 27,552 31,524 27,279 28,729 31,388 28,998 31,257 34,002 123,596
Cash Out
Inventory Expenditures
Inventory/Raw Material (Cash) - - - - - - - - - - - - -
Inventory/Raw Material (Paid on Account) - - - - - - - - - - - - -
Production Expenses - - - - - - - - - - - - -
Operating Expenses
Advertising 25 25 125 25 25 25 25 25 125 25 25 25 500
Bank Charges - - - - - - - - - - - - -
Dues & Subscriptions 35 - - - - - - - - - - - 35
Insurance 35 35 35 35 35 35 35 35 35 35 35 35 420
Licenses & Fees - - - - - - - - - - 50 - 50
Marketing & Promotion - 60 - 60 130 60 60 60 60 60 - 70 620
Meals & Entertainment 100 - - - - 100 - - - - - - 200
Miscellaneous - - - - - - - - - - - - -
Office Expense 15 15 15 15 15 15 15 15 15 15 15 15 180
Office Supplies 300 - - 300 - - 300 - - 300 - - 1,200
Outside Services - - - - - - - - - - - - -
Payroll Expenses
Salaries & Wages 2,047 2,047 2,047 2,047 2,047 2,714 3,714 2,660 3,648 2,594 2,594 2,594 30,753
Payroll Taxes 307 307 307 307 307 407 557 399 547 389 389 389 4,613
Benefits - - - - - - - - - - - - -
Professional Fees 350 - - 350 - - 175 - - 175 - - 1,050
Property Taxes - - - - - - - - - - - - -
Rent - - - - - - - - - - - - -
Repairs & Maintenance 50 50 50 50 50 50 50 50 50 50 50 50 600
Shipping & Delivery - - - - - - - - - - - - -
Telephone 35 35 35 35 35 35 35 35 35 35 35 35 420
Training & Development - - - - - - - - - - - - -
Travel 350 - - - - 350 - - - - - - 700
Utilities - - - - - - - - - - - - -
Vehicle - - - - - - - - - - - - -
Field Trips/Arts & Crafts 65 65 65 65 65 65 65 65 65 65 65 65 780
Equipment/Toys/Books 600 - - - - - - - - - - - 600
Food & Child Supplies 485 485 485 485 485 485 485 485 485 485 485 485 5,820
Paid on Account - - - - - - - - - - - - -
Non-operating Costs
Capital Purchases - - - - - - - - - - - - -
Estimated Income Tax Payments - - - 5,033 - 5,170 - - 3,813 - - 4,839 18,855
Interest Payments - - - - - - - - - - - - -
Loan Principal Payments - - - - - - - - - - - - -
Owner's Draw 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 33,600
Other Cash Out - - - - - - - - - - - - -
Total Cash Out 7,599 5,924 5,964 11,607 5,994 12,311 8,316 6,629 11,678 7,028 6,543 11,402 100,996
Monthly Cash Flow (cash in - cash out) 1,689 3,364 3,324 (2,319) 3,294 (2,345) (250) 3,137 (2,390) 2,260 2,745 (2,114) 10,394
Beginning Cash Balance 12,206 13,895 17,259 20,583 18,264 21,558 19,213 18,963 22,100 19,710 21,969 24,714 12,206
Ending Cash Balance 13,895 17,259 20,583 18,264 21,558 19,213 18,963 22,100 19,710 21,969 24,714 22,600 22,600
Just Like Home Child Care
Year-End
Income Statement (Projected)
200C 200D 200E
Net Sales (less returns & allowances) 47,736 103,431 111,390
Cost of Goods Sold - - -
Gross Income $ 47,736 $ 103,431 $ 111,390
Operating Expenses
Advertising 330 500 500
Bad Debt Expense - - -
Bank Charges - - -
Depreciation & Amortization - - -
Dues & Subscriptions 35 35 35
Insurance 420 420 420
Licenses & Fees 50 50 50
Marketing & Promotion 260 620 620
Meals & Entertainment 100 200 200
Miscellaneous - - -
Office Expense 120 180 180
Office Supplies 1,200 1,200 1,200
Outside Services - - -
Payroll Expenses
Salaries & Wages 4,468 30,753 30,753
Payroll Taxes 670 4,613 4,613
Benefits - - -
Professional Fees 1,050 1,050 1,050
Property Taxes - - -
Rent - - -
Repairs & Maintenance 600 600 600
Shipping & Delivery - - -
Telephone 420 420 420
Training & Development - - -
Travel 500 700 700
Utilities - - -
Vehicle - - -
Field Trips/Arts & Crafts 480 780 780
Equipment/Toys/Books 800 600 600
Food & Child Supplies 3,400 5,820 5,820
Total Operating Expenses $ 14,903 $ 48,541 $ 48,541
Interest Expense - - -
Other Income (interest, royalties, etc.) - - -
Assets
Current Assets
Cash & Equivalents 2,583 12,206 22,600
Accounts Receivable - - -
Inventory - - -
Security Deposits - - -
Other Current Assets - - -
Total Current Assets $ 2,583 $ 12,206 $ 22,600
Fixed Assets
Property, Plant & Equipment - - -
Less: Accumulated Depreciation - - -
Other Non-Current Assets - - -
Total Non-Current Assets $ - $ - $ -
Liabilities
Current Liabilities
Accounts Payable - - -
Line of Credit - - -
Other Current Liabilities - - -
Total Current Liabilities $ - $ - $ -
Long-term Liabilities
Loans - - -
Mortgages - - -
Other Non-Current Liabilities - - -
Total Non-Current Liabilities $ - $ - $ -
Total Liabilities $ - $ - $ -
Equity
Equity Investments 10,000 10,000 10,000
Retained Earnings 26,433 81,323 144,172
Less: Owner's & Investor's Draws (33,850) (79,117) (131,572)
Total Equity $ 2,583 $ 12,206 $ 22,600
Profitability Ratios
Liquidity Ratios
Risk Ratios
Efficiency Ratios
SUPPORTING DOCUMENTS
26
HISTORICAL BALANCE SHEET
Just Like Home Child Care
12/31/200B
Assets
Current Assets
Cash & Equivalents 3,600
Accounts Receivable -
Inventory -
Security Deposits -
Other Current Assets -
Total Current Assets $ 3,600
Fixed Assets
Property, Plant & Equipment
Computer Equipment -
Equipment/Machinery -
Furniture & Fixtures -
Vehicles -
Leasehold Improvements -
Building -
Land -
Less: Accumulated Depreciation (Do not enter a negative number) -
Other Non-current Assets -
Total Non-current Assets $ -
Liabilities
Current Liabilities
Accounts Payable -
Line of Credit -
Other Current Liabilities -
Total Current Liabilities $ -
Long-term Liabilities
Loans -
Real Estate Loans -
Other Non-current Liabilities -
Total Long-term Liabilities $ -
Total Liabilities $ -
Equity
Owners Equity 10,000
Retained Earnings (Enter a negative number for a loss) (6,400)
Less: Owner's & Investor's Draws (Not for use by C Corporations) -
Appendix
SALES PROJECTIONS
Just Like Home Child Care
Year 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Sales Budget
Infants 1,505 1,505 1,505 1,505 1,505 1,505 805 1,505 1,505 1,505 1,505 1,505 17,360
Toddlers 1,290 1,290 1,290 1,290 1,290 1,290 1,290 690 1,290 1,290 1,290 1,290 14,880
Preschoolers 1,075 1,075 1,075 1,075 1,075 575 1,075 1,075 1,075 1,075 1,075 1,075 12,400
After-school care - - - - - - - - 774 774 774 774 3,096
Product/Service Category E - - - - - - - - - - - - -
Product/Service Category F - - - - - - - - - - - - -
Product/Service Category G - - - - - - - - - - - - -
Gross Sales 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736
Less: Returns & Allowances - - - - - - - - - - - - -
Net Sales 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736
Other Income - - - - - - - - - - - - -
Total Income 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736
Credit Management
Sales (cash) 3,870 3,870 3,870 3,870 3,870 3,370 3,170 3,270 4,644 4,644 4,644 4,644 47,736
Sales (credit) - - - - - - - - - - - - -
Received on Account - - - - - - - - - - - - -
Bad Debt Expense - - - - - - - - - - - - -
Year 1 Assumptions
Infants Two infants at $175 per week less two weeks for family vacations.
Toddlers Two toddlers at $150 per week less two weeks for family vacations.
Preschoolers Two preschoolers at $125 per week less two weeks for family vacations.
After-school care Starting in September, After-school care--3 children at $4.00 per hour for 3 hours daily. This number will grow to six by mid next year.
Product/Service Category E
Product/Service Category F
Product/Service Category G
Less: Returns & Allowances
Other Income
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
Appendix
SALES PROJECTIONS
Just Like Home Child Care
Year 2 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Sales Budget
Infants 3,010 3,010 3,010 3,010 3,010 3,010 1,610 3,010 3,010 3,010 3,010 3,010 34,720
Toddlers 2,580 2,580 2,580 2,580 2,580 2,580 2,580 1,380 2,580 2,580 2,580 2,580 29,760
Preschoolers 2,150 2,150 2,150 2,150 2,150 1,150 2,150 2,150 2,150 2,150 2,150 2,150 24,800
After-school care 774 774 774 774 774 1,613 863 1,613 1,548 1,548 1,548 1,548 14,151
Product/Service Category E - - - - - - - - - - - - -
Product/Service Category F - - - - - - - - - - - - -
Product/Service Category G - - - - - - - - - - - - -
Gross Sales 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431
Less: Returns & Allowances - - - - - - - - - - - - -
Net Sales 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431
Other Income - - - - - - - - - - - - -
Total Income 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431
Credit Management
Sales (cash) 8,514 8,514 8,514 8,514 8,514 8,353 7,203 8,153 9,288 9,288 9,288 9,288 103,431
Sales (credit) - - - - - - - - - - - - -
Received on Account - - - - - - - - - - - - -
Bad Debt Expense - - - - - - - - - - - - -
Year 2 Assumptions
Infants Four infants at $175 per week less two weeks for family vacations.
Toddlers Four toddlers at $150 per week less two weeks for family vacations.
Preschoolers Four preschoolers at $125 per week less two weeks for family vacations.
After-school care Three children at $4.00 per hour for 3 hours daily. Summer care for three school-aged children. In September, six children at $4.00 per hour for 3 hours daily.
Product/Service Category E
Product/Service Category F
Product/Service Category G
Less: Returns & Allowances
Other Income
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
Appendix
SALES PROJECTIONS
Just Like Home Child Care
Year 3 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Sales Budget
Infants 3,010 3,010 3,010 3,010 3,010 3,010 1,610 3,010 3,010 3,010 3,010 3,010 34,720
Toddlers 2,580 2,580 2,580 2,580 2,580 2,580 2,580 1,380 2,580 2,580 2,580 2,580 29,760
Preschoolers 2,150 2,150 2,150 2,150 2,150 1,150 2,150 2,150 2,150 2,150 2,150 2,150 24,800
After-school care 1,548 1,548 1,548 1,548 1,548 3,226 1,726 3,226 1,548 1,548 1,548 1,548 22,110
Product/Service Category E - - - - - - - - - - - - -
Product/Service Category F - - - - - - - - - - - - -
Product/Service Category G - - - - - - - - - - - - -
Gross Sales 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390
Less: Returns & Allowances - - - - - - - - - - - - -
Net Sales 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390
Other Income - - - - - - - - - - - - -
Total Income 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390
Credit Management
Sales (cash) 9,288 9,288 9,288 9,288 9,288 9,966 8,066 9,766 9,288 9,288 9,288 9,288 111,390
Sales (credit) - - - - - - - - - - - - -
Received on Account - - - - - - - - - - - - -
Bad Debt Expense - - - - - - - - - - - - -
Year 3 Assumptions
Infants Four infants at $175 per week less two weeks for family vacations.
Toddlers Four toddlers at $150 per week less two weeks for family vacations.
Preschoolers Four preschoolers at $125 per week less two weeks for family vacations.
After-school care Six children at $4.00 per hour for 3 hours daily. Summer care for six school-aged children.
Product/Service Category E
Product/Service Category F
Product/Service Category G
Less: Returns & Allowances
Other Income
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
Appendix
OPERATING EXPENSE PROJECTIONS
Just Like Home Child Care
Year 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Operating Expenses
Advertising 15 15 90 15 15 15 15 15 90 15 15 15 330
Bank Charges - - - - - - - - - - - - -
Dues & Subscriptions 35 - - - - - - - - - - - 35
Insurance 35 35 35 35 35 35 35 35 35 35 35 35 420
Licenses & Fees - - - - - - - - - - 50 - 50
Marketing & Promotion - - - 40 60 - 30 30 - 60 - 40 260
Meals & Entertainment 50 - - - - 50 - - - - - - 100
Miscellaneous - - - - - - - - - - - - -
Office Expense (postage) 10 10 10 10 10 10 10 10 10 10 10 10 120
Office Supplies 300 - - 300 - - 300 - - 300 - - 1,200
Outside Services - - - - - - - - - - - - -
Payroll Expenses
Salaries & Wages 160 160 160 160 160 160 1,160 160 547 547 547 547 4,468
Payroll Taxes 24 24 24 24 24 24 174 24 82 82 82 82 670
Benefits - - - - - - - - - - - - -
Professional Fees 350 - - 350 - - 175 - 175 - - 1,050
Property Taxes - - - - - - - - - - - - -
Rent - - - - - - - - - - - - -
Repairs & Maintenance 50 50 50 50 50 50 50 50 50 50 50 50 600
Shipping & Delivery - - - - - - - - - - - - -
Telephone 35 35 35 35 35 35 35 35 35 35 35 35 420
Training & Development - - - - - - - - - - - - -
Travel 250 - - - - 250 - - - - - - 500
Utilities - - - - - - - - - - - - -
Vehicle - - - - - - - - - - - - -
Field Trips/Arts & Crafts 40 40 40 40 40 40 40 40 40 40 40 40 480
Equipment/Toys/Books - - - - - - - 800 - - - - 800
Food & Child Supplies 275 275 275 275 275 275 275 275 300 300 300 300 3,400
Total Operating Expenses 1,629 644 719 1,334 704 944 2,299 1,474 1,189 1,649 1,164 1,154 14,903
Assumptions - Year 1
Advertising Newsletter cost per month plus $75 in March and September to update information packet.
Bank Charges
Dues & Subscriptions Subscription to Parenting Magazine.
Insurance Premiums to cover liability and owner disability.
Licenses & Fees Yearly licensing fee paid in November.
Marketing & Promotion Easter and Christmas parties at $40 each. Six birthday parties at $30 each.
Meals & Entertainment Meals during state-wide conferences.
Miscellaneous
Office Expense (postage) Newsletter and communications with clientele and prospects.
Office Supplies Average quarterly order from Office Supplier.
Outside Services
Payroll Expenses
Salaries & Wages avg cost of employees for owner sick days & time off, coverage for owner vacation, in September--teenage assistant at $6.00 per hour for 3 hrs/day.
Payroll Taxes estimated at 15%
Benefits no benefits
Professional Fees Accounting fees at $175 per quarter--$350 in April for taxes. Contingency of $175 built in if needed for attorney.
Property Taxes
Rent Do not pay--take a tax decuction personally based on square footage.
Repairs & Maintenance
Shipping & Delivery
Telephone Cost of separate phone line.
Training & Development
Travel Cost for gas and accomodations for statewide conference.
Utilities Do not pay--take a tax decuction personally based on square footage.
Vehicle
Field Trips/Arts & Crafts Average cost for field trips and crafts supplies.
Equipment/Toys/Books Swingset, books and games for after-school program.
Food & Child Supplies Average food cost for snacks and meals plus cost of diapers, first aid and other disposable items
Appendix
OPERATING EXPENSE PROJECTIONS
Just Like Home Child Care
Year 2 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Operating Expenses
Advertising 25 25 125 25 25 25 25 25 125 25 25 25 500
Bank Charges - - - - - - - - - - - - -
Dues & Subscriptions 35 - - - - - - - - - - - 35
Insurance 35 35 35 35 35 35 35 35 35 35 35 35 420
Licenses & Fees - - - - - - - - - - 50 - 50
Marketing & Promotion - 60 - 60 130 60 60 60 60 60 - 70 620
Meals & Entertainment 100 - - - - 100 - - - - - - 200
Miscellaneous - - - - - - - - - - - - -
Office Expense (postage) 15 15 15 15 15 15 15 15 15 15 15 15 180
Office Supplies 300 - - 300 - - 300 - - 300 - - 1,200
Outside Services - - - - - - - - - - - - -
Payroll Expenses
Salaries & Wages 2,047 2,047 2,047 2,047 2,047 2,714 3,714 2,660 3,648 2,594 2,594 2,594 30,753
Payroll Taxes 307 307 307 307 307 407 557 399 547 389 389 389 4,613
Benefits - - - - - - - - - - - - -
Professional Fees 350 - - 350 - - 175 - 175 - - 1,050
Property Taxes - - - - - - - - - - - - -
Rent - - - - - - - - - - - - -
Repairs & Maintenance 50 50 50 50 50 50 50 50 50 50 50 50 600
Shipping & Delivery - - - - - - - - - - - - -
Telephone 35 35 35 35 35 35 35 35 35 35 35 35 420
Training & Development - - - - - - - - - - - - -
Travel 350 - - - - 350 - - - - - - 700
Utilities - - - - - - - - - - - - -
Vehicle - - - - - - - - - - - - -
Field Trips/Arts & Crafts 65 65 65 65 65 65 65 65 65 65 65 65 780
Equipment/Toys/Books 600 - - - - - - - - - - - 600
Food & Child Supplies 485 485 485 485 485 485 485 485 485 485 485 485 5,820
Total Operating Expenses 4,799 3,124 3,164 3,774 3,194 4,341 5,516 3,829 5,065 4,228 3,743 3,763 48,541
Assumptions - Year 2
Advertising Newsletter cost per month plus $100 in March and September to update information packet.
Bank Charges
Dues & Subscriptions Subscription to Parenting Magazine.
Insurance Premiums to cover liability and owner disability.
Licenses & Fees Yearly licensing fee paid in November.
Marketing & Promotion Easter and Christmas parties at $40 each. Eighteen birthday parties at $30 each.
Meals & Entertainment Meals during state-wide conferences.
Miscellaneous
Office Expense (postage) Newsletter and communications with clientele and prospects.
Office Supplies Average quarterly order from Office Supplier.
Outside Services
Payroll Expenses
Salaries & Wages add full-time employee in January, hourly help to cover owner vacation and days off, increased teenage summer and after-school help.
Payroll Taxes estimated at 15%
Benefits no benefits
Professional Fees Accounting fees at $175 per quarter--$350 in April for taxes. Contingency of $175 built in if needed for attorney.
Property Taxes
Rent Do not pay--take a tax decuction personally based on square footage.
Repairs & Maintenance
Shipping & Delivery
Telephone Cost of separate phone line.
Training & Development
Travel Cost for gas and accomodations for statewide conference.
Utilities Do not pay--take a tax decuction personally based on square footage.
Vehicle
Field Trips/Arts & Crafts Average cost for field trips and crafts supplies.
Equipment/Toys/Books Mats, chairs and table, toys and games for six additional children.
Food & Child Supplies Average food cost for snacks and meals plus cost of diapers, first aid and other disposable items
Appendix
OPERATING EXPENSE PROJECTIONS
Just Like Home Child Care
Year 3 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Operating Expenses
Advertising 25 25 125 25 25 25 25 25 125 25 25 25 500
Bank Charges - - - - - - - - - - - - -
Dues & Subscriptions 35 - - - - - - - - - - - 35
Insurance 35 35 35 35 35 35 35 35 35 35 35 35 420
Licenses & Fees - - - - - - - - - - 50 - 50
Marketing & Promotion - 60 - 60 130 60 60 60 60 60 - 70 620
Meals & Entertainment 100 - - - - 100 - - - - - - 200
Miscellaneous - - - - - - - - - - - - -
Office Expense (postage) 15 15 15 15 15 15 15 15 15 15 15 15 180
Office Supplies 300 - - 300 - - 300 - - 300 - - 1,200
Outside Services - - - - - - - - - - - - -
Payroll Expenses
Salaries & Wages 2,047 2,047 2,047 2,047 2,047 2,714 3,714 2,660 3,648 2,594 2,594 2,594 30,753
Payroll Taxes 307 307 307 307 307 407 557 399 547 389 389 389 4,613
Benefits - - - - - - - - - - - - -
Professional Fees 350 - - 350 - - 175 - 175 - - 1,050
Property Taxes - - - - - - - - - - - - -
Rent - - - - - - - - - - - - -
Repairs & Maintenance 50 50 50 50 50 50 50 50 50 50 50 50 600
Shipping & Delivery - - - - - - - - - - - - -
Telephone 35 35 35 35 35 35 35 35 35 35 35 35 420
Training & Development - - - - - - - - - - - - -
Travel 350 - - - - 350 - - - - - - 700
Utilities - - - - - - - - - - - - -
Vehicle - - - - - - - - - - - - -
Field Trips/Arts & Crafts 65 65 65 65 65 65 65 65 65 65 65 65 780
Equipment/Toys/Books 600 - - - - - - - - - - - 600
Food & Child Supplies 485 485 485 485 485 485 485 485 485 485 485 485 5,820
Total Operating Expenses 4,799 3,124 3,164 3,774 3,194 4,341 5,516 3,829 5,065 4,228 3,743 3,763 48,541
Assumptions - Year 3
Advertising Newsletter cost per month plus $100 in March and September to update information packet.
Bank Charges
Dues & Subscriptions Subscription to Parenting Magazine.
Insurance Premiums to cover liability and owner disability.
Licenses & Fees Yearly licensing fee paid in November.
Marketing & Promotion Easter and Christmas parties at $40 each. Eighteen birthday parties at $30 each.
Meals & Entertainment Meals during state-wide conferences.
Miscellaneous
Office Expense (postage) Newsletter and communications with clientele and prospects.
Office Supplies Average quarterly order from Office Supplier.
Outside Services
Payroll Expenses
Salaries & Wages add full-time employee in January, hourly help to cover owner vacation and days off, increased teenage summer and after-school help.
Payroll Taxes estimated at 15%
Benefits no benefits
Professional Fees Accounting fees at $175 per quarter--$350 in April for taxes. Contingency of $175 built in if needed for attorney.
Property Taxes
Rent Do not pay--take a tax decuction personally based on square footage.
Repairs & Maintenance
Shipping & Delivery
Telephone Cost of separate phone line.
Training & Development
Travel Cost for gas and accomodations for statewide conference.
Utilities Do not pay--take a tax decuction personally based on square footage.
Vehicle
Field Trips/Arts & Crafts Average cost for field trips and crafts supplies.
Equipment/Toys/Books Mats, chairs and table, toys and games for six additional children.
Food & Child Supplies Average food cost for snacks and meals plus cost of diapers, first aid and other disposable items
Appendix
CAPITAL BUDGET PROJECTIONS
Just Like Home Child Care
Year 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Capital Budget
Owner's Draw 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 24,000
Investor's Draw - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Security Deposits - - - - - - - - - - - - -
Amortization - - - - - - - - - - - - -
Depreciation (existing assets) - - - - - - - - - - - - -
Capital Asset Purchases - - - - - - - - - - - - -
Depreciation (new purchases) - - - - - - - - - - - - -
Land - - - - - - - - - - - - -
Year 1 Total Depreciation -
Assumptions - Year 1
Owner's Draw
Investor's Draw
Dividends Paid
Security Deposits
Amortization
Equipment
Equipment Depreciation
Furniture
Furniture Depreciation
Leasehold Improvements
Leasehold Depreciation
Vehicles
Vehicle Depreciation
Building
Building Depreciation
Land
Appendix
CAPITAL BUDGET PROJECTIONS
Year 2 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Capital Budget
Owner's Draw 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 28,800
Investor's Draw - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Security Deposits - - - - - - - - - - - - -
Amortization - - - - - - - - - - - - -
Depreciation (existing assets) - - - - - - - - - - - - -
Capital Asset Purchases - - - - - - - - - - - - -
Depreciation (new purchases) - - - - - - - - - - - - -
Land - - - - - - - - - - - - -
Year 2 Total Depreciation -
Assumptions - Year 2
Owner's Draw
Investor's Draw
Dividends Paid
Security Deposits
Amortization
Equipment
Equipment Depreciation
Furniture
Furniture Depreciation
Leasehold Improvements
Leasehold Depreciation
Vehicles
Vehicle Depreciation
Building
Building Depreciation
Land
Appendix
CAPITAL BUDGET PROJECTIONS
Year 3 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Capital Budget
Owner's Draw 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 33,600
Investor's Draw - - - - - - - - - - - - -
Dividends Paid - - - - - - - - - - - - -
Security Deposits - - - - - - - - - - - - -
Amortization - - - - - - - - - - - - -
Depreciation (existing assets) - - - - - - - - - - - - -
Capital Asset Purchases - - - - - - - - - - - - -
Depreciation (new purchases) - - - - - - - - - - - - -
Land - - - - - - - - - - - - -
Year 3 Total Depreciation -
Assumptions - Year 3
Owner's Draw
Investor's Draw
Dividends Paid
Security Deposits
Amortization
Equipment
Equipment Depreciation
Furniture
Furniture Depreciation
Leasehold Improvements
Leasehold Depreciation
Vehicles
Vehicle Depreciation
Building
Building Depreciation
Land
Appendix