Preschool Business Plan Template

Preschool Business Plan Template

If you want to start a Preschool business or expand your current Preschool, you need a business plan.

The following Preschool business plan template gives you the key elements to include in a winning Preschool business plan.

You can download our preschool business plan template (including a full, customizable financial model) to your computer here.

 

Sample Preschool Business Plan Template

Below is a preschool business plan example with each of the key sections to help you write a preschool business plan for your own company.

I. Executive Summary

Business Overview

[Company Name], located at [insert location here] has been providing quality education to the community’s preschoolers since [year established], [Company Name] has had over 1,200 wonderful and amazing preschool graduates.

We understand that the early years of learning are the most crucial part, therefore in our school, we offer a low teacher to child ratio, where teachers can concentrate on their students well. We offer a fun and safe environment for learning and in our school, we not only value academic excellence but also the social, emotional, and psychological well-being of our students.

Products Served

[Company Name] offers premium early education at an affordable tuition fee. We provide a fun learning experience for children to explore their true potential and a safe space where they can freely discover and express themselves.

Customer Focus

[Organization Name] primarily serves children within a 5-mile radius of [location]. The demographics of these customers are as follows:

• 24,226 residents
• Average income of $44,200
• 61.9% married
• Young couples: 53%
• Median age: 35 years

Management Team

[Company Name’s] principal is [Founder Name] who has been working as a teacher for more than 12 years. [Founder Name] has successfully led [School Name] for the past 5 years as its principal.

[Founder Name] is supported by a team which includes [Founder 2] and [Founder 3] that have experience teaching students, managing finances, and running businesses. Specifically, our team has solid experience in being effective teachers, connecting to different types of students and achieving key goals.

Success Factors

[Organization Name] is uniquely qualified to succeed due to the following reasons:

• [Location] does not have a lot of preschools that offer affordable, quality education for young children.
• Our teachers are passionate and skillful. They can easily adapt to any learning style a child may have.
• Low teacher to student ratio for better focus
• The management team has a track record of success achieving the goals of our organization and other organizations for which we have worked.
• Members of our community fully support and believe in our mission.

Financial Highlights

[Company Name] is currently seeking additional donations of $380,000 in order to fulfill our mission. Specifically, these funds will be used as follows:

• Salaries: $80,000
• School Materials (books, toys, desks, chairs, etc.): $180,000
• Administrative Expenses: $120,000 to pay for lease costs, ongoing operational expenses, marketing.

Top line projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company Name] aims to give the children of [Location] a safe and secure place to learn and explore their potential. Our preschool offers a close and personal learning experience, catering and adjusting to each of the children’s needs accordingly.

The school environment provides parents the feeling that their children are secure and well-taught without compromising the ‘fun’ in education. We understand that the early years of learning are the most crucial part, therefore in our school, we will offer a low teacher to child ratio, where teachers can concentrate on their students. [Company Name] does not only value the child’s academic excellence, but also their psychological, social, and emotional well-being.

[Company Name]’s History

[Company Name] started as an idea from a group of preschool teachers, namely, [Founder 1], [Founder 2], and [Founder 3]. They are university pals who are passionate about teaching and children. They have seen the lapses of the educational environment in [Location] and wanted to create a preschool that addresses the lack of hands-on teaching to young children.

Their plans to build a school started in [year], but it was only until [month, year] that they finally worked on all the paperworks and the legalities. [Founder 1] will act as the principal as he/she has had previous experiences with overseeing a school. [First Name 1] worked as the principal for [insert school] for over 5 years.

[Founder 2] also has a solid teaching background and has worked as a head faculty teacher at [insert school] for 7 years. [Founder 3], although having earned a major in education, he/she managed a family business and also worked part-time as a substitute teacher in [insert school].

[Company Name]’s Products/Services

[Company Name] is dedicated to teaching the children of the community and making a positive impact on their lives.

In order to achieve this, we offer many services including the following:

• Have passionate teachers that genuinely care for the children and have the skills to teach different types of students
• Low teacher to student ratio for better learning
• Affordable, quality education
• After-school tutoring services
• School gatherings and events to develop children’s social skills
• Clubs (sports, arts, math, etc)

 

III. Industry Analysis

The preschool industry has experienced significant growth in the past five years. The key industry drivers are economic growth, the rise in awareness of the benefits of early learning, and an increase in the number of families with both parents working. Further, government initiatives to support child care, rising corporate profits which enable companies to spend more on social benefits to employees, and awareness of the benefits of early child education, will drive growth.

The recognition that early education has an influence on child development has led the US government to turn its attention toward early learning. Government assistance programs range from childcare subsidies to programs. It is predicted that over the next five years, public funding will increase and thus, this is an important industry driver.

A rise in the population aged four years old will also be one of the major factors driving revenue over the next five years. This age group’s population is expected to rise at an annual rate of 3% over the next five years, thus driving demand for industry services.
 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the families and the children in [company location]. The area is mostly populated by young couples and new families that have disposable income and can pay a premium for their children’s education.

The precise demographics of the town in which our location resides is as follows:

Customer Segmentation

We primarily target the following three customer segments:

• Couples that have preschoolers: We will offer a safe environment where the children can learn and where these parents will feel comfortable to entrust us with their children.
• Preschoolers: Children ages 3–5 years old are our target students. We will build a child-friendly and fun atmosphere where the kids can freely express their thoughts and feelings.
• New Couples: The Majority of the young couples plan to have kids, and they are most likely to plan for their children’s future as well. [School Name] will build a reputation that will make people want to enroll their children to us.

 

V. Competitive Analysis

Direct & Indirect Competitors

Kidz Academy
Established in 1999, Kidz Academy is an early childhood academic preschool program that combines phonics and whole language concepts to achieve early reading and early learning. Kidz Academy’s curriculum is widely used both nationally and internationally.

Classes offered include preschool, kindergarten, dance and enrichment activities.

Preschool Village
Founded in 2003, Preschool Village is an early education school designed to develop a basis for learning, growth, interaction, knowledge, and confidence. Preschool Village teachers use the Saxon learning curriculum paired with its proprietary 5-senses curriculum that reinforces skills while focusing on lifelong learning.

Preschool Village’s offerings include private tutoring, music, art, dance, 2-year-old preschool, 3-year-old preschool and 4-year-old preschool.

Little Sprouts
Little Sprouts strives to provide a high quality, safe, play-based learning environment for children from 6 weeks to school age. This private preschool – operating from three locations – uses a whole-child approach to meet the intellectual, social, behavioral, and emotional needs of its students.

Programs are offered on a weekly or monthly basis and include breakfast, lunch, and afternoon snack. Class offerings include: infant, toddler, preschool, kindergarten enhancement and after school programs.

Competitive Pricing

Competitive Advantage

There are a lot of schools in [Location] but none of them provides the same quality of education that we at [Company Name] provide, specifically the following:

• Location: [Company Name]’s location is near the center of town, giving members of our community easy access for the parents and the children.
• Passionate and Skillful Teachers: [Company Name] will ensure to hire those with a strong teaching background and are gentle and skillful in handling all types of children.
• Low teacher to student ratio for better learning
• Affordable, quality education: Most of the schools in the area offer their services at a very expensive price. Our fees will be moderately low so that a lot of people can experience good education without a premium cost.

 

VI. Marketing Plan

You can download our preschool business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the school’s unique value proposition:

• Providing premium education and care to preschoolers at an affordable price
• Providing a safe and fun place for children to learn
• Giving parents the assurance that their children will reach their full potential

Promotions Strategy

[Company Name] promotes itself to the community in order to reach families and couples with preschoolers. The organization’s promotions strategy to reach these individuals includes:

Direct Mail
[School Name] blanket neighborhoods with direct mail pieces. These pieces will provide general information on [School Name], and will discuss program offerings, school curriculum, faculty and facilities, and school environment.

Public Relations
We frequently contact local and area newspapers and television stations to tell them about the value proposition of [Company Name].

Advertising
[Company Name] does low-cost advertising in local newspapers and sponsors community events in order to gain awareness. The company will also distribute flyers in the city for personal advertising.

Ongoing Customer Communications
[Company Name] maintains a website and publishes a monthly email newsletter to tell constituents about new events, accomplishments and more.

 

VII. Operations Plan

Functional Roles

In order to execute on [Company Name]’s business model, the organization needs to perform many functions including the following:

Service Functions

• Teachers
• Administrators
• security

Administrative Functions

• General & Administrative functions such as bookkeeping, legal and marketing, etc.
• Enrollment process and customer care

Milestones

[Company name]’s long term goal is to offer the best quality of education to all the preschoolers of the [city] area. We seek to the standard by which other providers are judged.

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

 

VIII. Management Team

Management Team Members

[Founder 1] serves as the principal/head of the [Company Name] he/she manages and oversees the school. [Founder Name 1’s] prior work was to be the principal for [insert school name]. He/She also has a lot of experience teaching students as he/she taught for more than 12 years now.

[Founder 2] manages the school’s finances. She/he has a degree in accounting and a second degree in education. [Founder Name 2] also has a good teaching background and has worked as a head faculty teacher at [insert school] for 7 years. With her double degree she can both be the school’s treasurer/auditor and a teacher as well.

[Founder 3], although having earned a major in education, he/she managed a family business and also worked part-time as a substitute teacher in [insert school]. She/he is in charge with the marketing and business side of the preschool. She/he also is the main contact person for potential organizations/sponsors/donors.

Hiring Plan

In addition to our current team, we plan to hire the following personnel:

• 2 Maintenance Staff (Janitors and Repairman)
• 1 Security Guard
• 3 Full-time teachers
• 2 Substitute teachers
• 2 Cafeteria Staff

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues come from student tuition fees and donations from both individuals and corporations.

The major costs for the company will be staffing, location maintenance, equipment and materials. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $380,000 in order to hire new staff, expand its program offerings, school materials, and build the school.

Specifically, these funds will be used as follows:

• Salaries: $80,000
• School Materials (books, toys, desks, chairs, etc.): $180,000
• Administrative Expenses: $120,000 to pay for lease costs, ongoing operational expenses, marketing.

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

5 Year Annual Income Statement

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement