Daycare Business Plan Template [Updated 2024]

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I. Executive Summary

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

Business Overview

[Company Name], located at [insert location here] is a new, upscale daycare focusing on offering a safe, play-based, nurturing environment to promote the physical, social, emotional, cognitive and creative development of children and infants through five years of age. The goal is not simply to look after our client’s children while they attempt to prioritize their various other time commitments, but to truly facilitate the advancement of young minds and bodies during critical years of development.


[Company name] will be staffed with qualified supervisors and attendants who will act as facilitators and teachers. The education curriculum will be based upon the principle that preschoolers learn and develop best through carefully supervised play with educational materials. The Childcare Center environment will provide stimulating, challenging materials, experiences and equipment for children. Each child will have the opportunity to grow emotionally, socially, intellectually, creatively, and physically.

Customer Focus

[Company Name] will primarily serve the residents within a 5 mile radius of our location. The demographics of these customers are as follows:

  • 28,672 residents
  • Average income of $98,119
  • 57.8% married
  • 62% in Mgt./Professional occupations
  • Median age: 42.9 years

Management Team

[Company Name] is led by [Founder’s Name] who has been in the daycare business for 20 years. While [Founder] has never run a daycare facility himself, he has taught kindergarten classes in a local elementary school for 20 years and before that worked in the daycare industry for almost 10 years. As such, [Founder] has in-depth knowledge of the daycare business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Success Factors

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

  • There are currently no upscale daycare centers in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback indicating that customers would be highly receptive to our services once operations are launched.
  • Our location is in an area with many high-income families that include a significant number of business professionals (62% of the population). This means that the customer demographics indicate that individuals have the financial means and the prerequisite demand for our company to thrive in [company location].
  • The management team has a track record of success in the daycare business.
  • Parents are becoming increasingly concerned regarding the development of their preschool age children. Studies indicate that from conception to age three or four is when the brain matures and personality develops, and when psychological and social patterns of bonding with primary caregivers and the community at large are established. For this reason, many high-income parents are willing to pay a premium for truly quality services that will foster a comfortable and nurturing environment for their children to develop.

Financial Highlights

[Company Name] is currently seeking $325,000 to launch. Specifically, these funds will be used as follows:

  • Center design/build: $175,000
  • Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

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

Year 1Year 2Year 3Year 4Year 5
Revenue$738,000 $1,716,272 $2,007,297 $2,331,125 $2,694,524
Total Expenses$639,595 $1,021,515 $1,110,127 $1,190,308 $1,273,715
EBITDA$98,405 $694,757 $897,169 $1,140,817 $1,420,809
Depreciation$16,560 $16,560 $16,560 $16,560 $16,560
EBIT$81,845 $678,197 $880,609 $1,124,257 $1,404,249
Interest$18,554 $16,235 $13,916 $11,596 $9,277
Pre Tax Income$63,291 $661,962 $866,694 $1,112,661 $1,394,972
Income Tax Expense$22,152 $231,687 $303,343 $389,431 $488,240
Net Income$41,139 $430,276 $563,351 $723,230 $906,732
Number of locations11111
Avg customers/day2030405060
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