Daycare Business Plan Template [Updated 2024]

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V.Competitive Analysis

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

Direct & Indirect Competitors

Childcare is one of the fastest growing business sectors in the US. In the age of stiff competition, a sustainable competitive advantage is crucial for the success of players in the daycare industry. While the need for day care services continues to grow as does the number of people interested in providing this service, daycare centers are becoming an extension of personal parental care. These centers differ in relation to the types and the quality of services offered. With the demand expected to increase in the future, this industry is poised to grow.

Competition in general can be divided into two categories and these key local competitors within a 5-mile radius:

Day care centers

Daycare centers begin care for babies six to eight weeks old and serve children until they begin kindergarten. Some of our specific competitors include:

  • YMCA: The YMCA runs after-school as well as all-day day care services to the general public and has toys as well as jungle-gym facilities for its attendees. Though their services are well-known and their public image recognized, the YMCA requires each of its members to be toilet trained, have a comprehensive immunization record, and some services are limited to customers that income quality. Furthermore, their services are more or less limited to daycare services which teach their students very little (mostly just looking after kids as they play).
  • Jane Street Day Care: Jane Street has been open for 10 years and operates at its capacity of 100 children at a time. Internet reviews and reports from speaking with prior customers of Jane Street show that this daycare has high turnover of children and parents who find the staff and service they receive at Jane Street very uneven. Jane Street has the advantage of a central location but suffers from its poor brand image.


Preschool refers to early childhood programs for children from age two and half to five or six.

  •  Plainview Montessori: Plainview offers a structured learning approach and experienced staff, but operates only part-day classes. Plainview also operates at its capacity and has little means to expand in its current location. If Plainview chooses to change locations to expand it will take years to complete this transition. In the meantime, [Company Name] will begin to serve the additional children in the area.

Competitive Pricing

YMCAJane StreetPlainview
Full Day fee$100$110$120
Half Day fee$55$60$65

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Location: [Company Name]’s location is near the center of town. Our location is geographically close to a high density of professional business establishments which puts us in close proximity to our target customers.
  • Management: Our management team has years of business and marketing experience that allows us to market and serve customers in a much more sophisticated manner than our competitors.
  • Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders, newspapers and other influencers. As such, it will be relatively easy for us to build awareness with the community as well as a loyal customer base.
  • High-Quality Staff: The thing that truly separates [Company Name] from its competitors is the quality of our staff and their attention to each individual learner. Through our high-quality staff, we will provide classes that integrate fun and learning into a comprehensive package guided by the principles of efficient childhood development.
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