Page | 1

EXECUTIVE SUMMARY

The proposed project is establishing TheyCare Child Care Center in #38

Apitong Street, Marikina Heights, Marikina City. It is a daycare center,

managed and owned by six college graduates of BS Accountancy, to provide

child care and additional education for children whose parents must work or

for some other reason cannot care for their child on a daily basis.

It will target Rancho I and IV Estate Marikina Heights inhabitants for it

will be a unique child care center in the barangay. The initial investment is

PHP 1,200,000 which will cover all necessary expenses for five years.

The owners will rent the residential property with a projected area of

100 square meters with a rate of PHP 6,000 per month.

The main assumptions consider conservative number of children

enrolling at the center. The projections are taken over a period of five years.

TheyCare is expected to earn an average annual net income of PHP

1,261,116, an average annual rate of return of 105%, and a payback period

of 1 year and 1 month.

The child care center is expected to positively reshape the economic

and social environment of Marikina Heights, Marikina City. It will offer five job

opportunities and will provide a facility for children allowing the parents from

Marikina Heights as well as neighboring barangays an opportunity to work

and earn a living.

The TheyCare Childcare Center is a service activity that provides

temporary child custody care to children from 1-6 years old who need

supervision when their parents or guardian are not around at the moment.

Also, the day care supplies additional knowledge, personality development,

 Page | 2

and to prepare them for preschool. The centers location is at 38 th Apitong St.

Marikina Heights, Marikina City.

PRODUCT OR SERVICE
The group decided to pursue a service providing business for toddlers

aged from one to six. The company is named THEYCARE, We Care. In this

business, the day care will serve as a second home to children who need

supervision that their parents cannot provide at the moment. Also, the day

care will supply basic knowledge to prepare them for preschool and the likes.

And lastly, the day care also provides fun for the children while learning.
The Day cares vision is to provide superb care to children who need

supervision and guidance when their parents are busy and build the day care

as their second home. And their mission statement is to create the only day

care center in (area) for children whose parents are at work or away from

home. The day care is also committed to provide the children their daily

fundamental needs and furnish them basic knowledge to prepare them for

preschool, but at the same time offer activities that will give them fun and

enjoyment.
TheyCare offers a variety of service that the customers may avail.

TheyCare provides affordable, high-quality, developmentally appropriate care

for children ages 1 to 6 years old with focus on each childs age and ability.

Children will receive loving care with creative and innovative programs

designed to stimulate their social, cognitive, physical, and emotional growth.

We provide full-day and part-time child care for children whose parents must

work or for some other reason cannot care for their child on a daily basis.
TheyCare offers full-day and part-time child care for children whose

parents must work or for some other reason cannot care for their child on a

daily basis. We have different study materials, learning objects, playing toys,
 Page | 3

kiddie cots and child-friendly tables and chairs. It also has a wide range of

tables where the toddlers could use to enjoy themselves and learn at the

same time. It will be a mixture of quiet and active activities for each age

level. We have a writing center, reading center, arts and crafts center,

children work desk and toddler activity tables. We provide the children

creative and innovative programs designed to stimulate their social,

cognitive, physical, and emotional growth. Its not all about playing or

sleeping, children are also discovering and learning. We provide these

services to help get these children to recognized schools. The day care will

also provide superb care of the children in their custody. We will provide

service from their home to the day care and also vice versa. We also offer

healthy snacks for the kids to enjoy.

The group conducted field work to obtain different information to verify

the efficiency and effectiveness of the groups plan for the day care center.

The group visited a day care center near the vicinity to observe the

environment and their activities. The group also based their verification

through the examination of the people: the customers, end users and

employees. The group also interviewed the owner of the day care to inquire

about management of the business and its condition in the industry. The

group also asked for suggestions and opinions about plans and ideas for the

study to attain more knowledge about the business.

The company will depend on area exposures and client referrals. In

order to invite more customers, TheyCare Child Care Center will have

advertisements that will surely catch their attention such as brochures and

tarpaulins. The brochures will be given out to schools, activity centers and

homes, while the tarpaulins will be posted into places that can be easily seen
 Page | 4

by the interested customers. With regards to client referrals, we plan to

maintain our reputation among our clients by providing them high-quality

service that will cater their every need. The company also plans to team up

with the schools nearby for promotions. We plan to promote the day care

center during activities that include parents participation such as Parent

Teacher Conferences, Family Day and School Fairs.

TheyCare is a private day care center that caters from middle-middle

to upper-middle class. Our rates are charged approximately for high end,

high quality educational and care giving services we offer. It will balance

with our expenditures. We will be price competitive in the market we serve;

however, we will not subscribe to the low price leader concept.

INTENDED MARKET ENVIRONMENT

Rancho Estates I and IV are located in Barangay Concepcion II in

Marikina City. Rancho Estate I contains 155 households and Rancho Estate IV
 Page | 5

contains 295 households. Most household in the area are comprised of

families whose children are either in their early up to their teenage years.

Aside from the immediate family, some families have grandparents, aunts

and uncles living with the family. The average number of people in each

family ranges from three to six.

Families in Rancho Estates I and IV located in Marikina City mostly

belong to the middle class, specifically families belonging to the middle-

middle class and upper-middle class. Most families in Rancho Estates I and IV

have their own family house and family cars and have reasonably sustaining

amount of flexible income. Families are able to afford quality education for

their children. Most of them are able to study in private schools and older

children in families seem to have finished or are currently taking college level

education. Parents of families also have stable jobs which reasonably provide

for their basic needs. Families in these estates are able to provide for their

fundamental needs with their familys income and then use the remaining

part for discretionary spending or splurging afterwards. Almost all of them are

able to invest in healthcare, buy consumer goods, spend on extra-curricular

or recreational activities and send their children to private schools.

The groups target market are the families in Rancho Estates I and IV.

The day care center has both end-users and customers. Customers are the

ones who will approve and pay for the products/services that the center will

be providing. The end-users on the other hand are the ones who will make

use of the products/services of the center. They will be the ones who will

make the most out of the value of the customers financial

remuneration. Since the parents are the ones who financially provide for the
 Page | 6

services that the day care offers, they are considered as the customers of the

day care center. The children that the center caters to are the end-users of

the company because they are the ones who primarily benefit and utilize of

the services.

TheyCare has a home-like setting and safe environment that is a

perfect place for children to learn, play, laugh, and enjoy. We have different

study materials, learning objects, playing toys, kiddie cots and child-friendly

tables and chairs. It also has a wide range of tables where the toddlers could

use to enjoy themselves and learn at the same time. It will be a mixture of

quiet and active activities for each age level. We have a writing center,

reading center, arts and crafts center, children work desk and toddler activity

tables. TheyCare also provides nutritious breakfast, lunch and afternoon

snack for the children.

The center follows the basic rules of safety. Our toys and equipment

are always in good repair, all medicines and other hazardous substances are

out of reach, and beddings are clean. A fire extinguisher is in place and

working, a first aid kit is close at hand. The center is also secure from

strangers who pass by. We have clearly established regulations for everything

from operating hours to how to handle emergencies.

Day care centers are much more than baby-sitting services. The

instructions received in day cares definitely affect the childrens ability to

learn and properly adjust as they progress on through their years of formal

education. Children are cared for and educated by trained, qualified,

dedicated educators and staff. Our employees are educated, at least reached
 Page | 7

tertiary educational level either finished or currently studying, and have

emergency training. They also acquire good interpersonal and

communication skills. We pay our employees well and give them benefits like

paid vacation time, health insurance, and an education allowance.

Based on the groups observation, the kind of families composing our

primary target market are mostly the typical modernized families with both

parents working while leaving their children with either their hired guardians

or other family members. These parents are also family-oriented thats why

they carefully choose who to trust in taking care of their children.

The TheyCare Center is the only registered private day care center in

the vicinity. Other day care centers around Rancho Estate are considered as

direct competitors but TheyCare have advantages against them since one is

a semi-private day care. Preschools around the area are also TheyCares

competitors but they are considered indirect because they dont offer all the

facilities a day care does. Being a registered private day care is an advantage

because the target market of the business belongs to middle-middle class to

middle-upper class.

Another opportunity is that the target market is near the day care.

TheyCare Center is the nearest day care around the Rancho Estate and the

families can learn about the center easier and faster. It will also be more

convenient for the parents and guardians to bring their children or visit them

during day care hours. Thus TheyCare Center will have competitive

advantages regarding its facilities, security and location which are main

issues of the parents for their children.

 Page | 8

Based on the groups observation, the kind of families composing our

primary target market are mostly the typical modernized families with both

parents working while leaving their children with either their hired guardians

or other family members. These parents are also family-oriented thats why

they carefully choose who to trust in taking care of their children.

COMPETITION

As for competition, there is a daycare center located within the

barangay of Marikina Heights where TheyCare Child Care Center is located. It

is headed by Ms. Lilia C. Ola and is semi-private under the Department of

Social Welfare and Development (DSWD). It has an address of 90 SE Narra

Street, Marikina Heights that is four streets away from our daycare center

and can easily be seen. It is a small houseapproximately five square meters

converted into a classroom. The daycare under the DSWD caters to 50-100

upper-lower class and lower-middle class families that have children with

ages 3 - 4 years old within the area. They use a certain curriculum

designed by the DSWD. They have a different target market so they do not

think TheyCare Child Care Center as a threat.

The two preschools to be found near our area, considered as indirect

competition, are: ATM House of Kids and Smallville Montessori. Preschools

provide different services from TheyCare. TheyCare Child Care Center is more

focused on taking care of and watching over the children while preschools
 Page | 9

give more importance on the academic field. We provide a more home-like

atmosphere where the children are free to explore, play, laugh, and learn.

Parents are busy nowadays with the fast-paced changing world and they

usually leave their children to babysitters. We do not just provide qualified

babysitters but also additional education and facilities that will help children

develop as a better well-being and discover their talents. Moreover, we give

importance to appropriate values that will help a child face reality. TheyCare

also provides service anytime between 8 oclock in the morning to 5 oclock

in the afternoon. Unlike preschools, we are more flexible with regards to time

and this will give the clients more options in enrolling their children to our

daycare. We also have a special program where a child can have a one-on-

one session with the child care provider for more intensive nurturing.

ATM House of Kids is located in 157 Dao St., Marikina Heights. It is a

residential house of Dr. Danilo Tuazon. The preschool is in an open-area of the

front yard of the house. It can hold two classes at the same with 10-20

students per class. The preschool headed by Ms. Eugenia S. Grefal is a

mission school sponsored by a married couple from Japan. It caters to upper-

lower class and lower-middle class families with children ages 1 -6 years old

within the area. All the teachers are college graduates of BS Education but

not necessarily preschool educators. Ms. Grefal hires based more in the heart

of the person. They use the curriculum for preschool education that develops

the whole personality of the children. ATM House of Kids has a parent

enhancement program where they talk to parents about the situation of their

children by having conferences. They also hold a medical-dental mission

every year. ATM House of Kids is also a Christian organization that offers a
 P a g e | 10

Bible Education for children and youths during summer vacation. The

preschool doesnt think of TheyCare child care center as a threat since they

have a different target market and is already established. ATM House of Kids

depends on referrals and word of mouth. They now cater from 20 students to

55 students. Most of their students achieve academic excellence in

private/public schools for higher education.

Smallville Montessori is located in 31 Pinto St., Rancho Estate I

Concepcion Dos, Marikina City. It offers children not only a fine preparation for

big universities but also an even better preparation for life as an adult. It

caters to children ages 4-6 years old. The teaching method used is the

Montessori Method with a tuition fee range of PHP 65,000-PHP69,000. The

Teacher-Student ratio is 1:8. SmallVille uses educational materials as part of

Montessori curriculum. Its flagship program is reading. It has internationally

certified administrators and highly trained teachers to meet the Montessori

standards. The facilities include state of the art Montessori materials, fully air-

conditioned room schoolhouse, totally equipped and innovative kitchen for

kids and modern child-sized furnitures. The group considers them as an

indirect competition because of the difference in the services offered and its

target market as well but overall the pricing strategy is the main difference

between Smallville Montessori and TheyCare Center.

A home-based day care center is offering low barriers to entry in the

industry. TheyCare can only identify three barriers to entry the industry;

these are sunk costs, capital and advertising. Sunk costs are costs that

cannot be recovered when the TheyCare incurs a loss or decides to shutdown

in an earlier period than planned. The sunk cost that the day care may occur
 P a g e | 11

are licensing process and complying with the day care regulations. These are

business permit, health permit, SEC registration and BIR registration that

TheyCare will pay and apply for to affirm customers of its competency and

safety. Second on the list is the capital requirements needed for putting up

the day care. Opening a day care center can be moderately capital intensive;

however, our day care center is home-based the cost to open will be much

less than a commercial location. The cost to open a day care will also depend

on furniture such as chairs, tables and book cases. Purchasing cots for

sleeping, toys, playground equipments and books can represent a significant

expense. Outfitting the day care with appliances and food can also be costly.

Since the capital of the owners are borrowed directly from their parents given

that it will yield the same interest that a bank may offer in a loan so that the

value for money and the opportunity cost of their parents may incur will be

even out. The owners can only borrow small amounts of money and not up to

millions to put up this business, they should learn to budget the limited

capital they got and make the business a success as much as possible to pay

back the loan and start on their own capital. And lastly, the third barrier to

entry is advertising. The advertising for our day care center is not costly but it

should be intense. Since the day care is around the Rancho Estate Area, the

families should be really informed about the existence of the day care in

order for to avail our services since most of them are working families they

do not have time to search for a day care. An intense advertising and

marketing strategy is needed to make our presence known to our intended

target market.
 P a g e | 12

We offer services that other competitors do not. TheyCare will have

bus service and nutritious meals served. The bus service is optional if the

clients will avail it or not. It is for additional convenience we offer to our

clients. We saw the concern of the parents regarding the means of

accessibility of TheyCare. The bus service is only for clients that live within 2-

kilometer radius of TheyCare. The nutritious meals are included in regular

fees to be paid. We will serve in-between snacks and lunch to the children.

We will follow a strict nutrition program to help the children have balanced

nutrition that can influence their moods, participation and concentration.

TheyCare Child Care Center bus is a manual power-steering Hyundai

Starex Club 1999 model. It can carry 8-9 students plus one driver and one

child care provider personnel. We have a three child seats available for

students with ages two years old and below.

TheyCare Child Care Center will ask food recommendation from a

nutritionist that will be appropriate for the meals of children in the center. Our

nutritious meals will be bought and prepared by our hired cook. The daily

menu will be prepared by the assigned food handler. Each facilitator will have

an assigned day of food handling. To prove that we serve nutritious meals, we

base our food on the basic food pyramid for kids recommended by the

nutritionist. We cannot strictly follow the basic food pyramid since the

children do not eat all their meals in TheyCare but we help them in having a

balanced nutrition. Neither chips nor chocolates will be served in TheyCare.

Any allergies of the children will be noted.

 P a g e | 13

The parents can be sure of the safety and security measures we give

to the children. We have a security guard that knows necessary technical and

communication skills. We have established policies with regards to

cleanliness and emergencies. We will apply the early childhood care and

education (ECCE) curriculum with innovative teaching styles to the children.

We have qualified staff in a warm and stimulating environment that will surely

cater the needs of the children. Our facilities are well-maintained and diverse

for children with different ages we accommodate.

Since TheyCare is not threatened by our present competitors due to

different target market, our main concern is on possible entry of new players.

There is a possibility that new competitors will copy the services offered in

TheyCare Child Care Center. But by the time the competitors will copy our

service, TheyCare will already have an established name through continuous

advertisements, referrals, and word of mouth. We have the advantage of

being the first one to offer this kind of service in the area. It will also be a

high risk for the new competitors to imitate our services because it will

require large investment.

 P a g e | 14

INDUSTRY

In the Philippines, day care businesses are in included in the slow

industry growth rate but with a high relative market share. There are lots of

people who venture into the day care business but it is relatively slow

compared to other business that boosts right away. It has a slow growth

because the day care should have a good strategic location to earn profit. It

also should have an established name or it has an intensive marketing

strategy to attract customer and it only serves a particular market segment

that can afford the services of a day care. The market segments that the day

care businesses usually cater are to middle-middle class to upper middle

class types of families.

It has a growth industry and therefore offers great profit potential for

those who start out in the right location and position themselves correctly in

the market. The industry has grown rapidly over the past few years because

of culture changes and shows no signs of slowing. There are shortages of

quality day care facilities in many areas especially in the location that the day

care will be situated. The area only has very few day care centers that can

meet the high expectations of parents in the area with a day care center, it

opens a great opportunity among the one who are planning to establish a day

care business.
 P a g e | 15

The community needs day care providers that meet quality standards

are providing a valuable service that will benefit their communities. The

income potential is also growing as parents demand a higher standard of care

and are willing to spend more to ensure that their child's early years are

spent in a good environment.

In regards with the demand and supply factors and trends, the factors

that affect the supply of day care services are cost of services and

expectations. The cost of services greatly affects the day care services

business because the cost of establishing a day care is in the category of

midrange capital investment. It is costly to put up this kind of business

because the center should have the money to keep the business afloat for

the next few months to cover up expenses until it earns profit. Moreover,

equipments for the center will eat up also most of the capital that the

partners invested because of its quite expensive prices. Even though,

operating expense is not that high, the cost of venturing to this kind of

business is risky that is why the value of the cost of production is much

higher because there is greater possibility of the investment to be watered.

And lastly for the supply factor that affects our business it expectations.

Expectations in the day care business are not that high especially in the

Philippines. Since the Philippines is a very family-centered countries, parents

chose to take care of their own kids, teach them their early educations and

not to entrust their kids to anybody. But times have change, many families

have both husband and wife to be the providers for the families and less time

are spent with their kids so expectations have grown throughout the years.

Expectations for a day care center seem to have risen because a high quality
 P a g e | 16

child care is expected among the day care centers in the country. It has

expectations of providing start-up educations for kids, activities that they will

enjoy and help them be more active and productive kids.

For the demand factors and trends, these are the factors that affect

our business: income, quality, advertising and size of population. Demand

factors are things that affect the sales of our day care. First is income of the

target market. Income is the money earned by families through their

employment and businesses. It is also one of the determining factors on

which bracket of family classes a family is included. The income of the target

market is based on the frequency of the customers and if they can afford our

given services. It will determine the number of possible customers that our

day care will be accommodating.

Second is the quality of service that the day care provides. The quality

of child care service can make a significant difference in the childrens

development; it is given a much higher importance by our customers in

choosing our service. If it provides a high-quality care a higher demand will

be more probable. The quality determines the longevity of our customers and

how it will attract prospective customers.

Third on our list is the advertising factor of the demand factor and

trend list. Advertising is a tool for promoting a business and catapult it

towards success. It is an action to help persuade your target market in

choosing our day care instead of the other alternatives they have. It is a way

of communicating to the public that we offer services that might address

their needs. An intensive marketing strategy will help our mid-range business
 P a g e | 17

in exposing our business to our intended market. The marketing strategy

provided by the group will help generate customers and determine the

demand for the kind of service we offer.

And lastly is the size of population. The size of population will greatly

affect the demand for our business because it will determine the number of

customers that our business may cater. If the size of population is big but it

doesnt have our intended market the population is useless but even though

the population is small but it will surely address their needs the population

will be useful for the business to help them earn profit.

The larger forces that affect our business are culture change, society,

economy, and consumer demand. Larger forces in the market represent

the total influence of buyers and sellers in the bigger picture of the industry

in which the quantity of the goods and services offered in a market. First is in

the larger forces of the market is the culture change in the society. The

culture trend has been spurred on by the fact that more women are choosing

to work instead of remaining at home with their children. Working women

would traditionally leave children with relatives but now it is common for

aunts and even grandparents to also be employed. Moreover, separations

among families have been pervasive and it meant that women are

sometimes unable to take care of their children at home and have no choice

but to work to support their children and themselves as well.

Next among the larger forces that affect the day care business is the

society. Nowadays, society has been change drastically. Women are now more

empowered to work and not to be stay at home mom to take care of their
 P a g e | 18

kids. It has been more acceptable in the society that women are now working

and be providers as well.

Third factor is the economy. Economy nowadays is on a downhill slope.

But even though tough times and investing in the condition of our economy,

the day care industry shows no signs of slowing down and this growth trend

looks set to continue over the next decade. Day care has proven itself to be

surprisingly resilient to recessions in the past. It is not easily affected by the

downturn of economy and proves to be a good business to invest to.

Lastly, on the consumer demand of the larger forces that affect the

market, parents are becoming more selective about the kind of environment

that they want to leave their children in. Most parents now understand that

the first four or five years of a child's life are so important as they highly

influence the way that a child will learn and interact with others and their

environment as they get older. Daycare has become much more than

babysitting as parents have realized that it is important that their children are

in an environment that stimulates mental and physical development.

BUSINESS MODEL

The business generates its revenue from services. TheyCare Child Care

Center provides second home to toddlers age from one to six by taking care

of them and help them learn at the same time. The centers target market is
 P a g e | 19

Rancho Estate, specifically phases I and IV. They Care also accept customers

whose households are outside Rancho Estate.

TheyCare center operates eight hours a day, opens from 8 in the

morning up to 5 in the afternoon, with 12 to 1:30 at noon for lunch break. It

offers different packages (see Table 1) for those who want to avail one month

of daycare service, consumable for 24 days per month, five days a week and

eight hours per day. These packages differ from the services included and

their respective rates. The first package offers regular service, the second is

same only inclusive of transportation fee, the third avails a special one on

one study session and the last package also offers study session but inclusive

of transportation as well.

Table 1: Packages offered in They Care Childcare Center

PACKAGES Rates per month

(Whole day) (24 days Monday Friday)
PACKAGE 1 P5,500.00
(w/o transportation)
PACKAGE 2 P6,700.00
(inclusive of transportation)
PACKAGE 3 P6,500.00
(one on one study session)
PACKAGE 4 P7,700.00
(one on one study session w/
transportation)

TheyCare childcare center also accommodates walk-in customers or

those who will not avail the packages offered at any time of the day. This kind

of session has different rate (see Table 2). The rate is exclusive of fees for

transportation and food to let the customers choose what they want and

need to avail. Transportation fee has two choices, one-way which will be a
 P a g e | 20

service from either their home to the center or vice versa, and the other

choice is two- way which will be from house to the center and back. For

toddlers aging 1-3 especially those without guardians, the center provides

child-seat in the vehicle for their safety. Availing TheyCare transportation

service can be through phone by calling the centers hotline number.

They Care gives three meals a day: recess, lunch and snacks in the

afternoon. All the packages offered in the center are inclusive of the food.

Those who will not avail the packages will pay a fixed rate that is also

inclusive of all the three meals. Customers are not allowed to pay for only one

meal per session because every session availed is equals to three meals

notwithstanding the length of their stay.

Table 2: Rates for Walk-in Enrollees

WALK-IN
Regular rate per P100.00
hour
Transportation Fee One-way: P30.00
Two-way: P60.00
Food Fee P150.00

One on one sessions are offered and can be availed through packages

2 and 4. These sessions are for parents who want their children to learn some

of the basic education a child can get. TheyCare center are open and ready to

teach any topics that the parents want their children to learn and become

skilled at. Aside from the parents freedom to choose any subject for their

children, they can also get assurance that their child are well supervised

because they are taught individually and by one of the partners who have
 P a g e | 21

been trained in the government for three months to provide services for the

customers satisfaction.

TheyCare is created to provide a quality of good service and to ensure

that their customer will get their satisfaction. It is also distinguished from

other similar businesses by offering more and better programs for their

childs advance learning and development. Listed below are the programs

offered for the childrens everyday activities. Children can try any of the

following programs, according to their interests and likes, in any time they

want. These programs are all included in every sessions availed and paid.

Programs Offered:

1. Free Play

- A free time for children to have fun and play any game of their choice, this is

usually an indoor activity. The day care basically provides for the toys and

other fun learning materials that the children would use.

2. Music and Movement

- This program would allow the children to express their selves through music

and dancing. They would be thought how to sing children songs, basic dance

kinetics and other activity related thereof. This program would help the

childs confidence development and discover their passion for music and

dancing.

3. Arts & Crafts

- Arts and crafts activities would teach the child the basics like cutting, pasting,

drawing, colouring, painting and do some art projects that they could bring
 P a g e | 22

home. This will help the child express himself/herself and to assess their

talent and interest in this area.

4. Visual Activity

- This program would be helpful for toddlers to early preschoolers because they

will be introduced and be familiarized with pictures of things, colours, letters,

words, numbers and others.

5. Games

- Fun learning games would also be incorporated in the day care. The child

would learn how to follow rules and create cooperation and teamwork with

his/her fellow playmates.

Writing
- The child would be thought how to write hold a pencil, write his or her name

or even construct words or sentences for children on early preschool stage.

6. Counting

- The basics of arithmetic and counting would also be thought on the child.

7. Story - Telling

- There would be story-telling time. They will have a chance to listen to stories

being narrated by the facilitator or teacher. Their comprehension, patience

and level of focus would also be assessed in this area.

8. Outdoor Play
 P a g e | 23

- The children would also be allowed to play outdoor but within the premises of

the day care. They would also be thought some outdoor parlour games or just

let them play in the day care mini playground.

9. Special Program

- This is a one-on-one session of a child care provider with a child to help

him/her in certain areas he/she needs to develop. All the other services

provided can be specially taught to the child if he/she needs special attention.

For the programs and activities to be more effective for the children,

TheyCare center also makes available of learning materials. These materials

are consist of those that are used for programs offered such as art materials,

toys, entertainment, etc. and those that are used for one on one sessions

such us books and activity sheets. Below is the complete list of materials

available in the center.

Materials for the Child Center:

- Story books
- DVD sing-along and educational sets
- Audio CDs for children (Sing and dance, Nursery Rhymes, Lullaby)
- Wooden toy puzzles for kids
- Educational toys
- Learning flash cards (ABCs, Numbers, Colors, etc)
- Art materials for audio visuals (Cartolinas, Art papers, Scotch Tapes,

crayons, colored pens)

- Jumbo crayons, glue, safe scissors, colored washable markers, washable

paints, chubby brushes, jr. pencils, art papers, bond papers

Materials Available for Students:

- Activity sheets
- Coloring books
- Arts and Crafts Materials
 P a g e | 24

TheyCare Center is strict about their payment rules and policies.

Generally and preferably, payment is accepted on a cash basis, but for

availing packages checks are allowed. For packages, reservation fees are

accepted amounting one thousand pesos (P1,000) which will already be

considered as down payment for the month. If there is no reservation paid,

down payment will be fifty percent (50%) of the package rate for the month.

The rest of the payment will be collected and shall be paid on the last week of

the package before the child leaves the center. Any payment received by the

center will be non-refundable.

MARKETING AND SALES STRATEGY

The company will depend on area exposures and client referrals. The

company will depend on area exposures and client referrals. We would like to

provide a good quality of service that will satisfy fully our clients

expectations. With this, we would be able to gain good review for client

referrals. In order to invite more customers, TheyCare Child Care Center

wishes to come up with creative print outs as advertisements that will catch

their attentions such as brochures, flyers and tarpaulins. The tarpaulins we

will be ordering for the advertisements are all colored using large format

printing, with 3x5sq. Ft. size. Flyers and brochures are also colored, printed in

an offset printing technique. Flyers will be a 4.25x5.5 size, while brochures

are 21.59x27.94 tri fold style. The tarpaulin shall include the name of the

daycare center, one attractive sentence (such as Need a break from the

kids?), some snap shots of the rooms and facilities of center, list of the

services available, contact information and most importantly the complete

address or location of the daycare center must me clearly indicated. For

 P a g e | 25

flyers, the name and complete address of the daycare center, one attractive

sentence (such as Need a break from the kids?), services available, vicinity

map and contact information must be clearly indicate. Brochures are almost

has the same contents with the flyers, but with certain important details like

competitive advantages, a brief and attracting paragraph about the daycare

center and offered packages, additional services with rates. Flyers and

brochures will be given out to schools, activity centers and homes, while the

tarpaulins will be posted into places that can be easily seen by the interested

customers.

In Rancho Estates I and IV, we plan distribute flyers and brochures at

most everyday but we prefer during weekends at the village parks and

covered courts where parents with kids usually go. Also, we plan to hand

them out flyers to random households that are our target markets. In Circle

Mall, a mini shopping center near the daycare center, a lot of parents

together with their kids normally shop or eat there, especially during

weekends. We will be giving out flyers to random parents with kids who are 6

below. Supermarkets and fast food chains within Brgy. Marikina Heights like

Parco Selections, Puregold Supermarket, Seven Eleven, Jollibee, Chowking,

Red Ribbon, Goldilocks and KFC will also be our target places for giving out

the print ads. Schools nearby are another option where we can give out the

flyers and brochures. Nearby schools are Marist School, St. Scholasticas

Academy Markina, Infant Jesus Academy, Marikina Christian Integrated School

and Our Lady of Perpetual Succor College. During weekdays after classes, we

will be staying at the schools parking lot, with the schools permission, to

hand out flyers to parents who are waiting for their children.
 P a g e | 26

For the tarpaulins, one best place where out print out will be easily

seen is the Community Board near the Barangay Hall. This big Community

Board is located across Circle Mall and beside the Barangay Basketball Court

and Barangay Hall. We plan to put one or two on the board because

passersby, both on the sidewalks and inside the cars, can easily see the

advertisements there as long as it will be somewhere on top or on the middle.

Another place where we can put tarpaulins are the basketball courts inside

Ranch Estates I and IV and some other parts in the village where we will be

allowed to hang them up like somewhere near the village gates where a lot of

families pass by. For interested customers outside the primary target market,

we plan to put tarpaulins near parks, activity and shopping centers,

considering that these places are to be allowed by the officials.

The company plans to team up with the schools nearby for promotions.

We plan to promote the day care center during activities that include parents

participation such as Parent Teacher Conferences, Family Day and School

Fairs. The schools will help us in promoting the daycare center because they

will serve as our bridge to communicate and encourage our target market,

which are the parents. The company will ask the schools to invite us to

several parenting seminars and also to the said events so we can promote

the daycare center. During Family Days and School Fairs, we plan to put up

booths on the school grounds. In this way we can communicate with parents

who will attend the said events to avail our services. A tarpaulin will be hang

on the booth, so as flyers will be given out to random parents, while

brochures are to be given to interested customers.

 P a g e | 27

TheyCare Child Care Center must charge approximately for high end,

high quality educational and care giving services we offer. The rates we will

be charging to our customers and the revenues we will be having should be

balanced with our expenditures. 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. The gross margin

the company will be implementing will be 24.67%. This is based on the

supported computation found on the latter part of this study.

Parents are to be provided with several packages to choose from. For

drop in and less than a month packages, payments are to be settled upon

enrollment. Installment payments are allowed only to the packages that will

last for a month. For installment payments, only two payments are allowed;

one as down payment upon enrollment, and the remaining will be paid on a

certain date before a child exits the program. For the clients who will avail a

one month package, a non refundable reservation fee of one thousand

pesos (P1, 000) will be asked from the clients. The reservation fee will serve

as the clients down payment and will be part of their entire payment. For

those who will not be reserving a slot for their child, fifty percent (50%) down

payment is required. The down payment should be settled before a child

enters the program. All payments can be made on cash or check basis only.

Employees are required to undergo seminars offered by the

Department of Education and Early Education Training Program by University

of the Philippines, Diliman and Department of Social Welfare and

Development for proper rendering of services to the end users. Other issues

such as safety measures and first aid are to be taken care of by the company.
 P a g e | 28

We are liable for such accidents and unexpected events while the child is in

the daycare center premises. Also, we plan to invest for an on-call doctor to

address accidents that may occur. Nevertheless, we tend to keep the childs

safety inside the childcare premises.

The company is planning to set aside a budget for marketing strategy.

A total of twenty thousand pesos (P25, 000.00) is the approximate budget for

the first year. The company believes that this will still be the marketing

budget for the next two years because we try to cut costs. The marketing

budget is comprised of the following:

Tarpaulins 3x5sq. ft. colored (P225 x 10 pcs) P1,

800
Flyers 4.25x5.5 colored (750 pcs) 3, 750
Brochures 21.56x27.94 tri fold colored (500 pcs) 7,

500
Community Board Rental Fee (120php/month) 1,

440
Others for booths, transportation, food, etc. 10, 510

PRODUCTION/OPERATION REQUIREMENT

TheyCare Child Care Center will be leasing a 100 square-feet house

owned by Mr. Oscar P. Villamiel. This house is located at 38 Apitong St.,

 P a g e | 29

Marikina Heights, Marikina City. Based on the agreement, the term of the

renewable contract lease is two (2) years and will not be permitted to

withdraw from the contract within the first year. The lease contract will begin

from the date of operation, which is three (3) months before the opening of

the center and will be renewable every two years. The monthly rental for

leased premises shall be six (P6, 000) thousand, Philippine currency per

month, or seventy-two thousand (P72, 000), Philippine currency per year. All

rental payments made at the end of the month shall be payable only to the

lessor.

The company shall deposit to the lessor upon signing of the contract

and prior move-in an amount equivalent to the rent for three (3) months or

the sum of eighteen thousand (P18, 000), Philippine currency, wherein the

two (2) months deposit shall be applied as rent for the 11 th and 12th months

and the remaining one (1) month deposit shall answer partially for damages

and any other obligations, for utilities such as Water, Electricity, Telephone or

resulting from violation(s) of any of the provision of the contract.

In case of default payment of the rent for at least two (2) months, the

lessor at its option may terminate the contract and eject the company. The

lessor has the right to preclude the company in entering the premises for one

(1) month and may forfeit whatever rental deposit or advances given by the

company.

The company shall pay for its telephone, electric, cable TV, water,

Internet and other public services and utilities during the duration of the

lease. If whole or any part of the leased premises shall be destroyed or

 P a g e | 30

damaged by fire, flood, lightning, typhoon, earthquake, storm, riot or any

other unforeseen disabling cause of acts of God, as to render the leased

premises during the term substantially unfit for use and occupation of the

company, then the contract may be terminated without compensation by the

lessor or by the company by notice in writing to the other.

The lessor or its authorized agent shall after giving due notice to the

company shall have the right to enter the premises in the presence of the

company at any reasonable hour to examine the same or make repairs or for

operation and maintenance of the property.

At the expiration of the term of this lease or cancellation, the company

will on time deliver the lessor the leased premises with all corresponding keys

and in good condition. Non-compliance of these terms by the company will

give the lessor the right to refuse to accept the premises and compel

company to pay rent at the same rate plus twenty five (25) % as penalty until

the company has complied with the terms. The same penalty shall be

imposed in case the company fails to leave the premises after the expiration

of the contract.
 P a g e | 31

A. Vicinity map

B. Floor Plan
 P a g e | 32

C.

TheyCare

Facilities
1. Bedroom/ AVRoom
This is a fully air-conditioned double purpose room that will be

utilized as a sleeping area as well as an entertainment room. Kids

are allowed to nap as well as watch educational shows in this room.

a. Television set
A 24in Full HD LCD Television set with DVD player and

component along with children movies, songs and

educational DVDs and VCDs.

b. Sleeping items
Sleeping Mats
Pillows
Blankets
Stuff Toys
Crib
2. Activity Area
The activity area is a combination of a mini library and a

workspace for children. This is an air-conditioned area where most

of the activities will be held. Different learning materials will be

displayed on the shelves.

Small mono block tables and chairs
Book shelves
Puzzle mats
 P a g e | 33

Kiddie bean bag

Children books
Activity materials
Learning materials
3. Comfort Room
One comfort room mounted in the Nap/ AV Room and the other

is located beside the staircase and the kitchen area. Both are tiled

and fully furnished with installed toilet bowl, shower and a hand

washbasin.
4. Kitchen
The kitchen is furnished and tiled with stove, gas range,

personal refrigerator, faucet, sink, plate dispenser, cup, spoon, fork,

and plates. This is where the nutritious food will be cooked and

prepared by the assigned food handlers.

5. Mini Play ground
The Mini Playground is made available for children to have a

little fun while having a muscular activity.

D. Utilities
They Cares nature of utilities include: Electricity, Water, Telephone,

and Rent. Along with the utilities aforesaid, rent and telephone are the only

fixed cost among the four, while the others vary depending on the daily

consumption of They Care.

Rental payment amounts to PHP 6000 and is exclusive of Electricity,

Water and Telephone bills. In addition, the lessor requires initial payment of

3 months advance and 1 month deposit amounting to PHP 24,000 rent. The

1st and 2nd advance payment will be applicable for the 11 th and 12th month of

rental while the 3rd deposit will be allotted for any future violation or repair

expenses that the lessee will incur. There will be PHP 500 for Telephone bill,

Electricity ranges from PHP 3000- 3500 per month and Water consumption is

from PHP 170- 250 per month.

1. Electricity
 P a g e | 34

The usage of all electronic devices varies depending on

the daily consumption of appliances used. The total

approximated daily consumption ranges form 19- 25 kilowatts

which will yield to Php 225- 300 per day.(see Appendix C-1).

2. Water

Water consumption will be based on the existing lavatory

and kitchen sink utilization. The approximate daily consumption

for water will be 0.40- 0.625 cubic meters an estimated amount

of Php 6- 10 per day. (see Appendix C-2).

3. Telephone Bill
The Telephone, which will be used in They Care, is a

phone line package that charges PHP 499 per month from

Bayantel.

MANAGEMENT AND PERSONNEL

1. Management
a. Partners
The Partners are responsible for the foundation of the company.

They are individuals who agree to form a business and contribute to it by

means of money, property and service. Partners are also in-charge of the

activities that will be happening in the organization.

 P a g e | 35

The requirement to qualify as a partner in the company is to be at

least a tertiary level education graduate whose course is preferably

concentrated on business and/or education (graduates with masters and

doctorate degrees will acutely qualify for the job as well). They must

possess good communication and interpersonal skills and must also be

proficient in using basic Microsoft programs.

Each partner will receive 10,000 PHP per month as their salary.

Benefits that each partner will receive include rice subsidy, laundry

allowance, medical cash allowance and clothing allowance. Each partner is

also entitled to a thirteenth month pay every year. Salaries of each

partner will increase in relation to the partnership profits and losses. The

contract of the partners with the center will last as long as they choose to

stay with the company.

b. General Manager
The General Manager is responsible for managing all the areas that

concern the revenue and cost elements of a company. The manager

oversees the activities that will happen in the organization and leads,

coordinates and communicates the strategies and procedures to the rest

of the company for it to function effectively.

The companys General Manager must at least be a college

graduate preferably majoring in business, finance, management or

accountancy. Managers must possess good communication and

interpersonal skills and must also be proficient in using basic Microsoft

programs. They must also be able to lead the other staff proficiently.
The general manager (who is also one of the partners) will receive

the same benefits like the other partners (rice subsidy, laundry allowance,

medical cash allowance, clothing allowance and thirteenth month pay).

 P a g e | 36

They will get the basic salary of P10,000. The contract of the general

manager with the center will last as long as they choose to stay with the

company.
The salary and benefits of the partner who is also the General

Manager will be common and will not add-up.

2. Personnel
a. Child Care Provider/s
Child Care Provider/s is/are responsible for providing care and basic

education for infants, toddlers and preschool children. They aid in the

development of the childrens fundamental social, academic and personal

development. They also help the children in developing their cognitive and

emotional skills and in learning fundamental mathematical and reading

skills in advance to make it easier for them to understand when in the real

academic setting already. They address the issues that the children may

require special attention with and ensure the safety of the children while

they are in the daycare center.

The company requires that the hired Child care provider/s of the

company should have at least reached tertiary level of education. They

are accepted by the company as long as they are found viable and

suitable care-takes and nurturers. Their educational background and

knowledge must be preeminent or acceptable to the standards of the

center. They must be able to understand and relate to children well and

must know how to properly supervise them. The Child Care Provider/s

must also possess good communication and interpersonal skills and must

also be proficient in using basic Microsoft programs.

The Child Care Provider will receive 12,000 PHP per month as their

salary. Benefits that the Child Care Provider will receive include rice

subsidy, laundry allowance, medical cash allowance and clothing

 P a g e | 37

allowance. They are also entitled to a thirteenth month pay every year.

Their salary will increase every six months. The contract of the Child Care

Provider with the center will be legally binding for one year and can be

renewed afterwards depending on the managements decision.

b. Receptionist
The receptionist answers the visitors questions about the services

offered by the company, answering calls, receiving, sorting and

distributing mail, setting appointments, keeping records and filing them

and performing other office errands. They will also be in-charge of keeping

track of the books in the library of the center. They must be able to

understand well how the company works so that they will be able to

communicate this to possible customers effectively. They must also be

able to handle complaints and make recommendations to the client in a

professional and good-natured manner.

The company requires that the receptionist of the company to have

at least reached secondary level of education but it would be preferable to

have someone who has reached tertiary lever of education. They must

possess good communication and interpersonal skills, the capacity to

multitask and to organize. Being presentable and being proficient in using

basic Microsoft programs is also imperative.

The Receptionist (who is also one of the partners) will receive

10,000 PHP per month as their salary. Benefits that Receptionist will

receive include rice subsidy, laundry allowance, medical cash allowance

and clothing allowance. They are also entitled to a thirteenth month pay

every year. Their salary will increase every six months. The contract of the

Receptionist with the center will be legally binding for one year and can be

renewed afterwards depending on the managements decision.

 P a g e | 38

The salary and benefits of the partner who is also the

receptionist will be common and will not add-up.

c. Driver/s
The drivers of the center will be responsible for fetching the

children from their respective houses and bringing them to the daycare

center. They should be able to drive the children safely from their homes

to the center.
The drivers should be at least twenty one years old and must be a

registered driver with a valid drivers license. They should be able to

understand and follow directions easily and should have had previous

experience with references which are verifiable. They must also possess

good interpersonal skills.

The driver will receive 8,000 PHP per month as their salary. Benefits

that the driver will receive include rice subsidy, laundry allowance,

medical cash allowance and clothing allowance. They are also entitled to a

thirteenth month pay every year. Their salary will increase yearly. The

contract of the Child Care Provider with the center will be legally binding

for one year and can be renewed afterwards depending on the

managements decision.

d. Security Guard
The security guard of the center ensures the safety of the children

in the daycare center. They make sure that the proper security measures

are implemented and maintained by the center.

The security guard should be at least twenty one years old and

must have a clean criminal background. They should be able to

understand and follow directions easily and should have had previous

experience with references which are verifiable. They must also possess

good interpersonal skills.

 P a g e | 39

The security guard will receive 8,000 PHP per month as their salary.

Benefits that the security guard will receive include rice subsidy, laundry

allowance, medical cash allowance and clothing allowance. They are also

entitled to a thirteenth month pay every year. Their salary will increase

every six months. The contract of the Child Care Provider with the center

will be legally binding for one year and can be renewed afterwards

depending on the managements decision.

e. On-call Doctor
The On-call Doctor provides medical aid and assistance to the

daycare center. For minor medical concerns, the daycare can contact the

On-Call Doctor anytime during regular working days. For major medical

concerns, the On-Call Doctor should be able to make it to the daycare

center to help address the problem. They will also check and confirm if the

center has proper medical measures for the children.

The companys On-call Doctor must at least be a college graduate

preferably majoring in a pre-medical course. They must possess good

communication and interpersonal skills. They should have previous

experience with dealing with children and have references which are

verifiable.
The On-Call Doctor will receive P500 per consultation. The contract

of the on-call doctor with the center will be legally binding for one year

and can be renewed afterwards depending on the managements

decision.

f. Food Handler
The Food Handler is responsible for preparing the meals and snacks

of the children according to the Nutritionists advice as to what kind of

food should be prepared. They should be willing to undergo a seminar with

 P a g e | 40

regards to the proper sanitary preparation of food for the children. Going

to the market to buy the needed ingredients for the meals and snacks is

also part of the responsibilities of the Food Handler.

The Food Handler should at least be eighteen years old and must

able to understand and follow directions easily. They must have previous

experience as to preparing and serving basic meals with references which

are verifiable. They must also possess good interpersonal skills.

The Food Handler (who is also one of the partners) will receive

4,500 PHP per month as their salary. Benefits that the Child Care Provider

will receive include rice subsidy, laundry allowance, medical cash

allowance and clothing allowance. They are also entitled to a thirteenth

month pay every year. Their salary will increase every year. The contract

of the Food Handler with the center will be legally binding for one year

and can be renewed afterwards depending on the managements

decision.
The salary and benefits of the partner who is also the Food

Handler will be common (higher salary applies) and will not add-

up.

REGULATIONS/ENVIRONMENT ISSUE

The company is willing to comply with all requirements needed before

operation of the daycare center. The owners and employees are to attend

several seminars in order to render the best quality service clients deserve

such as National Training Workshops for Daycare Workers and Teachers on

Early Childhood Education by Department of Education (DepEd), Training

Programs offered by Marikina City Municipality, Early Chlidhood Program

offered by University of the Philippines, Diliman, Food Handling Seminar by

 P a g e | 41

Marikina Health Office, and annual seminar on Waste Management by

Marikina Waste Management Office. The company will set aside finances for

expenses needed to submit the regulations the law obliges.

Before operation, THEYCare Childcare Center is required by Marikina

City Hall to obtain the following requirements for Business Permit:

1. Zoning Clearance

2. DTI / SEC Registration

3. Barangay Clearance

4. Community Tax Certificate

5. Photos of establishment (showing

signboard & sidewalk)

6. Sanitary Permit

7. Fire inspection Certificate

8. Occupancy Permit/Change of Use

Certificate

9. CEMO Certificate

10. SSS Clearance

11. Occupational Permit

12. Lessors Permit (Contract of Lease)

13. Others (National Requirements)

These are the following requirements needed for Department of Trade and

Industry Business Name registration:

Accomplished Business Name Registration Form

2 pcs. 2x2 colored ID picture
Tax Identification Number (TIN) Optional
 P a g e | 42

List of five business names ranked according to preference

Registration fee of P300.00

These are the following requirements needed for Securities and Exchange

Commission registration:

Verification Slip Form

Accomplished Registration Data Sheet
Articles of Partnership (for limited partnership, this should be executed

under oath)
Written Undertaking to Change Corporate Name
Clearance from other government agencies (if needed)
Registration fee of P510.00 or more depending on capital contribution
If the contributed capital is in the form of a real property, additional

requirements needed: Deed of Assignment executed by the

stockholder who is the owner

These are the following requirements needed for Tax Identification Number

(TIN) registration:

Accomplished Form 1901

DTI Certificate of Registration of Business Name
Mayors Permit
Registration Fee of P500.00, P15.00 for the Certification Fee and

P15.00 for the Documentary Stamp Tax

These are the following requirements needed for Mayors Permit:

Accomplished Business Permit Application Form

DTI Business Name Certificate
Sketch of the business location
2 pcs. 2x2 colored ID picture
Registration fee
 P a g e | 43

These are the following requirements needed for Social Security System (SSS)

Clearance:

Accomplished R1 Form (Employer Registration)

Accomplished R1A Form (Employment Report)
DTI Business Permit
Photocopy of Articles of Partnership
Mayors Permit

These are the following requirements needed for Department of Labor and

Employment registration:

Accomplished Rule 1020 Form

Lay out of business location
Vicinity map

These are the following requirements needed for Department of Education

registration:

Accomplished GPR 4 Form

Articles of Partnership
Statement on the location of the school in relation to recreational

places and other factors that are not conductive to the learning

process
Campus development and landscaping plans
Pictures of the site, classrooms, libraries, medical and health facilities,

etc.
Proposed budget/annual expenditures for the succeeding year

approved by the Director

List of administration, i.e. president, vice president, managers, etc.
List of non teaching personnel
List of athletic facilities, equipment and supplies and materials
 P a g e | 44

For Fire Inspection Certificate, a fee shall be paid to avail, which

amounts to 10% of the total payment for the business permit. For City

Environmental Management Office (CEMO) Certificate, a half-day annual

seminar is required for it to be availed. For Sanitary Permit, a fee of P300.00

is to be paid and additional requirements such as Health Certificate (P100.00)

and X ray (P150.00) is to be accomplished before it will be released. For food

handlers, a free two hour seminar at Marikina City Health Office is required.

Contract of Lease is to be accomplished by the lessor and the company. To

avail a Barangay Clearance, a permit from Department of Trade and Industry

is needed with a registration fee. Other permits needed by the City Hall, such

as Zonal Permit, Occupancy Permit and Occupational Certificate are not

applicable upon registration of the daycare center. Community Tax Certificate

will depend on the registering personnel.

Republic Act No. 6972

(Funds for the Center, the Program and Day Care Workers)

Section 3. Program Framework. The total development and protection of

children program for day care centers shall be provided for children up to six (6)

years of age with the consent of parents. Provided, however, that, in case of

abused, neglected or exploited children, such consent shall not be required. The

program shall include the following:

a. Care for children of working mothers during the day and, where

feasible, care for children up to six (6) years of age when mothers are

working at night. Provided, that the day care center need not take care

of the children in a particular place but shall develop network of homes

where women may take care of the children up to six (6) years of age
 P a g e | 45

of working mothers during work hours, with adequate supervision from

the supervising social welfare officer of the Department of Social

Welfare and Development. Provided, further, that, where young

children are left to the care of a paid domestic, an elderly relative or

older children without adequate and competent adult supervision, the

supervising Social Welfare Officer shall provide such training and adult

supervision until the childrens care meets adequate standards

whereby the children under their care will develop normally as healthy,

happy and loved children, even in the absence of their mothers during

working hours;

b. Materials and network of surrogate mothers-teachers who will provide

intellectual and mental stimulation to the children, as well as

supervised wholesome recreation, with a balanced program of

supervised play, mental stimulation activities, and group activities with

peers

Although this law generally applies only to public daycare centers,

THEYCare Child Care Center will still depend on some regulations the law

requires. The goal of the company is to offer childcare program that will help

parents, especially working mothers, in supervising their children who are six

years old below. This law ensures that institutions such as daycare centers

will be able to meet whatever needs and attention children deserve, as well

as to assure parents with the best care necessary.

The company inquired to a Department of Social Welfare and

Development officer, Ms. Lilia C. Ola, about the requirements needed for their
 P a g e | 46

accreditation. According to her, it is not required for private daycare centers

to have a supervising Social Welfare Officer, but she encourages the company

to at least avail the training programs offered by the government and the

department. She suggests that the workers who will interact with the children

enrolled to attend seminars with regards to early childhood care programs.

PRESIDENTIAL DECREE No. 856 December 23, 1975 (Code On Sanitation)

The purpose of this decree is directed towards the protection and

promotion of health of the people, being of paramount importance, to all

efforts for public services. With the advance in the field of sanitation in

recent years, there arises the need for updating and codifying our scattered

sanitary laws to ensure that they are in keeping with modern standards of

sanitation and provide a handy reference and guide for their enforcement.

To comply with the said Code on Sanitation, the company, as said

above, is willing to register for a Sanitary Permit before operation and will be

renewed every year. The company will be opening its doors for whatever

Sanitary Inspection needed for compliance and quality service.

With regards to waste management, Marikina Solid Waste Management

is requiring every household to separate biodegradable from non-

biodegradable. These wastes should be kept in a plastic, tied with green band

for biodegradables, and pink band for non-biodegradables. The waste

management team will not collect the wastes that are not tied the way it

should be. Wastes are to be gathered thrice a week, depending on the given

schedule by the city officials. In the place where the childcare center will be
 P a g e | 47

located, wastes will be collected every Mondays, Wednesdays and Fridays.

There will be a fine for wastes left on the sidewalks before or after collection.

Permits and Licensing

Business Permit:

Mayors Permit Daycare Center P718.00

Sanitary Inspection 600.00
Garbage Fee 272.00
Fire Inspection 183.75
Business Tax (1% of 25% of the Contributed Capital) 3,

000.00
TOTAL P 4, 773.75

Other Requirements:

Business Name Registration P300.00

Tax Identification Number (Inclusive of Certification Fee and Documentary

Stamp Tax) P515.00

Securities and Exchange Commission Certificate P4, 110.00

Department of Labor and Employment Registration P100.00

Sanitary Permit (Inclusive of Health and Medical Certificate) P600.00

Fire Certificate (10% of Business Permit) P477.37

Barangay Clearance P300.00

Community Tax Certificate P5.00

TOTAL LICENSING AND PERMITS: P 11, 181.12

 P a g e | 48

CRITICAL RISK FACTORS

SWOT

STRENGTHS WEAKNESSES
 P a g e | 49

- Rented center is monitored well - Partners have limited knowledge

- Partners will be attending seminar
and experience in the field of the
for early childhood care programs
business
- Hired employees are carefully
- Costly marketing and advertising
screened
since the business is new
- Partners are also employees of
- Facilities are not yet expanded
their own business
since its the first five years of the
- Financial records are well
business
managed

OPPORTUNITIES THREATS

- Located near the target market/ - Many indirect competitors around

consumers
- The only registered private
daycare center in the vicinity
- The only daycare center in the
area that has bus service and
meals
the area (Preschool, Public
Daycare Centers)
- Lower revenue during non-
working holidays
- New to the industry/ not yet
known

The SWOT table shows the strengths, weaknesses, opportunities and

threats that are involved in the business. Strengths are those which give the

business a competitive advantage against others in the industry. The

strengths of the day care center includes good supervision, properly screened

and experienced employees, well-maintained financial records, the hands-on

participation of the partners in the daily operations of the business with three

months of seminar for early childhood care programs and the improved

facilities of the center. By having good supervision, the parents are more

secured that their children are in good hands in the center. The center also

makes sure that the personnel that will be involved in the services rendered

are competitive and possess professional behavior. Before the partners take

active participation in the companys daily activities, they will attend

 P a g e | 50

seminars as National Training Workshops for Daycare Workers and Teachers

on Early Childhood Education by Department of Education. This enables

clients to trust the center further as they know that the partners of the

company are dedicated to giving them the best service the center has to

offer.

Weaknesses are those which give the business at disadvantages in the

industry. The day care centers weaknesses include the limited knowledge

and experience of the partners in the field of the business industry, high

marketing and advertising expense and limited business expansion since its

only the first years of the business. The partners can remedy their lack of

knowledge and experience by making the effort to understand and know

more about the industry through research and two months of training. The

center also hired other experts to help the partners conduct different services

offered. Although the marketing and advertising expenses are high, the

business expects higher revenue in the succeeding years. Also, even though

the business has not yet expanded, there are new services offered that other

centers dont have.

Opportunities are those factors which are prospects for the business to

further advance in the industry. The day care centers main opportunity is its

location. The center is located near its target schools/consumers which makes

it easily accessible. It is also the only private-registered day care center in the

area and the only day care that has bus service that will fetch and bring

home the children, and meal service that serves recess, lunch and snacks per

day. This makes the center attractive to the target market because being

private and registered gives more assurance of its security and quality of
 P a g e | 51

service, and having bus service gives more convenience to the parents and

guardians of the children.

Threats are those factors which has the potential to be detrimental to

the business. The threats that the day care center faces include indirect

competitors near the target area, lower revenue during non-working holidays

and being new to the industry. Although there are indirect competitors such

us preschools and public day care centers in the area, the center is able to

alleviate this risk because of its distinctiveness in terms of comfort,

convenience, and kinds and quality of service. During holidays, since parents

dont have works to attend, there are limited customers for the center. This

will also be an opportunity for the day care to provide a better service

because fewer customers mean more supervision to both the children and

other employees. Because of being new to the industry, the center offer

promos to encourage parents to enroll their children. The center also offers a

means of transportation for children from their house to the center and has a

well-rounded center which addressed the basic needs of the children.

 P a g e | 52

PORTERS FIVE FORCES MODEL

Potential Entry of New

Competitors
- Even though TheyCare center is
the only private registered
daycare in the area, there maybe
future potential competitors that
will establish similar centers. The
center will stay focus with their
originality to overcome this kind
of barriers.

Potential
Development of
Substitute
Products
- Some parents
choose to take care of - There are many indirect
their children at
home rather than like public or unregistered
entrust it to others
outside. The business
is aware of this kind
of this kind of
substitute service and
is prepared by
assuring them that
the center will give
the same security
and convenience they
have at home.
Rivalry among
Competing Firms
competitors in the area
daycare centers and
established preschools,
but the business offers
improved and more
facilities that will assure
the customers that the
center will provide their
needs and satisfaction.
Bargaining Power of
Supplies
- The service of the
business will be
conducted by the
owners after attending
DepEd seminars and
hire few experts to
ensure that the
customers will
experience good
quality of service. Also
the business will be
careful on employing
other personnel to to
strengthen the center's
security and to obtain
the objective of the
business which is to
provide a second home
to the customers.

Bargaining Power of Consumers

- The business is distinctive by being
the only private registered daycare
center in the area with more facilities
offered. But because it is still new to
the industry, the consumer power is
not too high. Since it affects the
intensity of the competition, the
business is taking its risk to establish
a diverse yet better and improved
daycare center for the target
consumers.
 P a g e | 53

START-UP SCHEDULE

July 2011
o Partners Angela Retona, Ivana Salao, Leona Joy Se, Melissa May Cruz,

Lea Villamiel and Cristina Villaruz have agreed to enter into the

partnership (TheyCare Child Care Center) and will decide on how much

their contributed capitals will be. All partners will be capitalist-

industrial partners. Five business days will be allotted for the

formulation of the contract.

o Capital contributions should already be delivered except for Ivana

Salaos capital contribution (a Starex car) will be delivered one week

before the business commences. The money will be set aside at a bank

until all requirements for business start-up are accomplished and

completed.
o Search and take referrals for a Child Care Provider, On-call Doctor,

Security Guard and Driver.

July to September 2011
o Obtain and accomplish the following requirements for Business Permit

at the City Hall): Zoning Clearance, DTI / SEC Registration, Barangay

Clearance, Community Tax Certificate, Photos of establishment

(showing signboard & sidewalk), Sanitary Permit, Fire inspection

Certificate, Occupancy Permit/Change of Use Certificate, CEMO

Certificate, SSS Clearance, Occupational Permit, Lessors Permit

(Contract of Lease) and other national requirements

o Obtain and accomplish the following requirements for Department of

Trade and Industry Business Name registration: Accomplished Business

Name Registration Form, 2 pcs. 2x2 colored ID picture, Tax

Identification Number (TIN) Optional, List of five business names

ranked according to preference and pay registration fee of P300

 P a g e | 54

o Obtain and accomplish the following requirements needed for

Securities and Exchange Commission registration: Verification Slip

Form, Accomplished Registration Data Sheet, Articles of Partnership

(for limited partnership, this should be executed under oath), Written

Undertaking to Change Corporate Name, Clearance from other

government agencies (if needed), Registration fee of P510.00 or more

depending on capital contribution and if the contributed capital is in

the form of a real property, an additional requirement to be submitted

is the Deed of Assignment executed by the stockholder who is the

owner.
o Obtain and accomplish the following requirements needed for Tax

Identification Number (TIN) registration: Accomplished Form 1901, DTI

Certificate of Registration of Business Name, Mayors Permit,

Registration Fee of P500.00, P15.00 for the Certification Fee and

P15.00 for the Documentary Stamp Tax.

o Obtain and accomplish the following requirements needed for Mayors

Permit: Accomplished Business Permit Application Form, DTI Business

Name Certificate, Sketch of the business location, 2 pcs. 2x2 colored ID

picture and pay registration fee

o Obtain the following requirements needed for Social Security System

(SSS) Clearance: Accomplished R1 Form (Employer Registration),

Accomplished R1A Form (Employment Report), DTI Business Permit,

Photocopy of Articles of Partnership and Mayors Permit

o Obtain and accomplish the following requirements needed for

Department of Labor and Employment registration: Accomplished Rule

1020 Form, Lay-out of business location and Vicinity map

o Obtain and accomplish the following requirements needed for

Department of Education registration: Accomplished GPR4 Form,

 P a g e | 55

Articles of Partnership, Statement on the location of the school in

relation to recreational places and other factors that are not conductive

to the learning process, Campus development and landscaping plans,

Pictures of the site, classrooms, libraries, medical and health facilities,

etc., Proposed budget/annual expenditures for the succeeding year

approved by the Director, List of administration, i.e. president, vice

president, managers, etc., List of nonteaching personnel, List of

athletic facilities, equipment and supplies and materials

August 2011
o The partners will attend seminars on early childhood care programs.
o Visit agencies to aid in acquiring a suitable Child Care Provider by

giving them the requirements that the center needs for that position.
o Visit agencies to aid in acquiring a suitable Security Guard and Driver

by giving them the requirements that the center needs for that

position.
o Discuss with the referred and contracted On-call Doctor their terms of

the contract with the daycare center.

o Be able to hire and finalize contracts with the following personnel:

Child Care Provider, Security Guard, Driver and On-call Doctor.

September 2011
o The partners will attend seminars on early childhood care programs.
o The assigned Food Handler will attend a two-hour seminar regarding

proper food preparation and sanitation at the Marikina Health Office.

o Prepare flyers and other advertising materials, which will be use in

promoting the daycare center in the upcoming months before its start-

up.
October 2011
o The partners will attend seminars on early childhood care programs.
o Start promoting the daycare center in schools. The event that the

center will primarily take advantage of to advertise will be the Sports

 P a g e | 56

Festivals held in academic institutions near within the area during the

month.
o Promote in the near-by establishments, restaurants and activity

centers.
o Start purchasing fixtures and supplies needed for the daycare center.
November 2011
o The partners will continue promoting the daycare center in schools.

The event that the center will primarily take advantage of to advertise

will be the Parent-Teacher Conferences during the month.

o Continue promoting in the near-by establishments, restaurants and

activity centers.
o Arrange the fixtures in the daycare center and begin preparations for

the opening of the center for the coming year.

o Partners will meet-up with a nutritionist who will be consulted as to

what kind of snack and meals should be prepared for the children to

ensure that the children will be getting the right nourishment.

December 2011
o Partner Ivana Salaos capital contribution (a Starex car) will be

delivered one week before 2012.

o The partners will continue promoting the daycare center. The event

that the center will primarily take advantage of to advertise will be

Christmas Bazaars within the area.

o Finalize arranging the fixtures and supplies in the daycare center.
o Make finalizations with the preparation and formal opening of the

center.
January 2012
o Commencement of Business

FINANCIAL PROJECTION

TheyCare Childcare Center

Statement of Financial Position
As of December 31, 2012-2016

Assets 2012 2013 2014 2015 2016

 P a g e | 57

Current Assets

1,785,193. 3,053,452. 4,459,115. 6,361,995. 8,360,828.4

Cash 00 95 14 87 4

1,785,193. 3,053,452. 4,459,115. 6,361,995. 8,360,828.4

Total current assets 00 95 14 87 4

Fixed (Long-Term)
Assets

Furniture and Fixtures 151,450.00 121,160.00 90,870.00 60,580.00 30,290.00

Less: Accumulated
Depreciation 30,290.00 30,290.00 30,290.00 30,290.00 30,290.00

Car 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00

Less: Accumulated
Depreciation 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
321,16 240,87 160,58 80,29
Total fixed assets 0.00 0.00 0.00 0.00 -

2,106,353. 3,294,322. 4,619,695. 6,442,285. 8,360,828.

Total Assets 00 95 00 87 44

Liabilities and Owner's

Equity
Current Liabilities

Income taxes payable 271,905.85 437,962.80 529,000.50 705,477.23 787,205.81

Total current liabilities 271,905.85 437,962.80 529,000.50 705,477.23 787,205.81

Owner's Equity

1,262,270.3
Cruz, Capital 305,741.17 476,060.00 681,782.33 956,134.67 3

1,262,270.3
Retona, Capital 305,741.17 476,060.00 681,782.33 956,134.67 3

1,006,134. 1,312,270.3
Salao, Capital 355,741.17 526,060.00 731,782.33 67 3

1,212,270.3
Se, Capital 255,741.17 426,060.00 631,782.33 906,134.67 3

1,262,270.3
Villamiel, Capital 305,741.17 476,060.00 681,782.33 956,134.67 3

1,262,270.3
Villaruz, Capital 305,741.17 476,060.00 681,782.33 956,134.67 3
 P a g e | 58

1,834,447. 2,856,360. 4,090,693. 5,736,808. 7,573,621.9

Total owner's equity 02 00 98 02 8

Total Liabilities and 2,106,352. 3,294,322. 4,619,695. 6,442,285. 8,360,827.

Owner's Equity 87 80 00 25 79

TheyCare Childcare Center

Income Statement
For the Years Ended December 31, 2012-2016

Revenue 2012 2013 2014 2015 2016 2017

3,636,840. 4,395,840. 4,922,640. 5,753,760. 6,290,400. 6,835,320.

Sales revenue 00 00 00 00 00 00

3,636,840 4,395,840 4,922,640 5,753,760 6,290,400 6,835,320

Total Revenues .00 .00 .00 .00 .00 .00
[42] [42] [42] [42] [42]
Expenses

Advertising 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00

Depreciation-Car 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 -

Depreciation-
Furniture and
Fixtures 30,290.00 30,290.00 30,290.00 30,290.00 30,290.00 -
Maintenance and
repairs 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00 12,000.00

1,299,896. 1,429,886. 1,572,874. 1,730,162. 1,903,178. 2,093,496.

Wages Expense 40 04 64 11 32 15

Rent 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00

Supplies 21,492.00 22,781.52 24,148.41 25,597.32 27,133.15 28,761.14

Utilities 72,604.80 76,961.09 81,578.75 86,473.48 91,661.89 97,161.60

Gas 8,022.86 8,504.23 9,014.49 9,555.35 10,128.68 10,736.40

1,116,000. 1,182,960. 1,253,937. 1,329,173. 1,408,924. 1,493,459.

Food 00 00 60 86 29 74
Licensing and
Permits 11,181.12 11,181.12 11,181.12 11,181.12 11,181.12 11,181.12

On-Call Doctor 12,000.00 14,400.00 17,280.00 20,736.00 24,883.20 29,859.84

2,730,487 2,935,964 3,159,305 3,402,169 3,666,380 3,873,656

Total Expenses .18 .00 .01 .23 .64 .00
 P a g e | 59

Net Income 906,352.8 1,459,876. 1,763,334. 2,351,590. 2,624,019. 2,961,664.

Before Taxes 2 00 99 77 36 00

Income tax 271,905.8 437,962.8 529,000.5 705,477.2 787,205.8 888,499.2

expense 5 0 0 3 1 0

634,446.9 1,021,913 1,234,334 1,646,113 1,836,813 2,073,164

Net Income 7 .20 .49 .54 .55 .80

TheyCare Child Care Center

Cash Flow Satement

For the Years Ending December 31, 2012-2016

2012 2013 2014 2015 2016

950,000.0 1,785,193. 3,053,450. 4,459,111. 6,361,992.

Cash at Beginning of Year 0 00 00 00 00

Operations

Add: Net Income from 634,447.0 1,021,913. 1,234,334. 1,646,114. 1,836,814.

Operations 0 00 00 00 00
Add back: Non-Cash Expense

Depreciation 80,290.00 80,290.00 80,290.00 80,290.00 80,290.00

714,737.0 1,102,203. 1,314,624. 1,726,404. 1,917,104.

Total 0 00 00 00 00

Increase/(Decrease) in Income 271,906.0 166,054.0 176,477.0

Tax Payable 0 0 91,037.00 0 81,729.00

Net Cash Flow from 986,643.0 1,268,257. 1,405,661. 1,902,881. 1,998,833.

Operations 0 00 00 00 00

Investing Activities
Cash paid for
Purchase of furniture and
fixtures 151,450.0
 P a g e | 60

Net Cash Flow from 151,450.0

Investing Activities 0 - - - -
[42]

835,193.0 1,268,257. 1,405,661. 1,902,881. 1,998,833.

Net Increase in Cash 0 00 00 00 00

1,785,193 3,053,450 4,459,111 6,361,992 8,360,825

Cash at End of Year .00 .00 .00 .00 .00

TheyCare Child Care Center

Break-Even Analysis

Sch
edul
Fixed Costs e 2012 2013 2014 2015 2016 2017
Depreciation-
Car 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 -
Depreciation-
Furnitures and
Fixtures 30,290.00 30,290.00 30,290.00 30,290.00 30,290.00 -

1,299,896. 1,429,886. 1,572,874. 1,730,162. 1,903,178. 2,093,496.

Payroll 40 04 64 11 32 15

Rent 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00

Supplies 21,492.00 22,781.52 24,148.41 25,597.32 27,133.15 28,761.14

Utilities 72,604.80 76,961.09 81,578.75 86,473.48 91,661.89 97,161.60

Total Fixed 1,546,28 1,681,91 1,830,89 1,994,52 2,174,26 2,291,41

Costs (TFC) 3.20 8.65 1.81 2.90 3.36 8.90
 P a g e | 61

Variable
Costs

Gas 8,022.86 8,504.23 9,014.49 9,555.35 10,128.68 10,736.40

1,116,000. 1,182,960. 1,253,937. 1,329,173. 1,408,924. 1,493,459.

Food 00 00 60 86 29 74
On-Call
Doctor 12,000.00 14,400.00 17,280.00 20,736.00 24,883.20 29,859.84
Total
Variable 1,136,02 1,205,86 1,280,23 1,359,46 1,443,93 1,534,05
Costs (TVC) 2.86 4.23 2.09 5.21 6.16 5.98

2,682,30 2,887,78 3,111,12 3,353,98 3,618,19 3,825,47

Total Costs 6.06 2.88 3.89 8.11 9.52 4.88

Budgeted 3,636,84 4,395,84 4,922,64 5,753,76 6,290,40 6,835,42

Sales 0.00 0.00 0.00 0.00 0.00 0.00

2,500,817. 3,189,975. 3,642,407. 4,394,294. 4,846,463. 5,301,364.

CM 14 77 91 79 84 02

Break-Even
Point

Break-Even 2,248,69 2,445,94 2,662,59 2,900,55 3,161,94 3,332,32

Sales (S) 8.84 8.13 3.94 6.21 5.69 0.37