ESTABLISHING A DAY CARE
Introduction
Day Care is taking care of children between the ages of two months to about three to four years. It is an early childhood daycare service to the parents who may be working and may not be able to keep their children with them and, possibly with no person capable of looking after the child at home. Toddlers are taken to the day care center by their parents in the morning who pick them as and when they are returning home. The project requires an estimated fixed capital of US$ 3,974, operating costs of US$ 21,894, generating revenue of US$ 500 in the first year of operation.
Market Analysis
There is plenty of demand for this service particularly if it is offered with professional utmost precision. There are many parents who need this service as they are in the working class and cannot afford a professional at home. It is illegal to take children to work places so there is a lot of potential. The establishment of Day Care Centres has become a profitable Venture
Capacity and Process of Delivering
Service
This business idea is premised on keeping a minimum of 30 children for a start. The toddlers are received by the attendant at the Center as prescribed. She/he would confirm the condition of the child at that stage from the parent. The kids may be asleep, may need a bath, a drink or even eat breakfast. At the Center the kids are grouped according to age. Activities which basically comprise of playing are arranged per age group. Some of the older children can play on their own while others need aid. Others may be sleeping. Subsequent feeding depends on age as toddlers are fed at different intervals and according to the information given by the parents. Constant monitoring of the kids health and behavior is done. Sometimes a child may be carefully isolated if found to have a very contagious disease. The feeds are given special attention since children are sensitive. Children may be generally fed twice in the morning session. Children are exposed to social and moral behavior and a lot of playing. There are absolutely no academics at this stage. They learn to open picture books and to recognize different things, especially animals. They listen to soft music and watch appropriate cartoons. After lunch they go to sleep up to after three o’clock. They bathe on waking up and drink again and continue to play as they wait to be picked.
Capital Investment Requirements in US$
|
|
Units |
Qty |
Unit cost |
total |
|
TV
and Music |
No |
2 |
300 |
600 |
|
Merry go round |
No |
1 |
200 |
200 |
|
Slide |
No |
1 |
200 |
200 |
|
Beds & Bedding |
No |
2 |
138 |
276 |
|
Carpet |
No |
5 |
50 |
250 |
|
Kitchen |
No |
1 |
1,000 |
1,000 |
|
Furniture Fittings |
No |
- |
- |
438 |
|
Fridge |
No |
1 |
750 |
750 |
|
Laundry |
No |
1 |
200 |
200 |
|
Potties |
No |
10 |
6 |
60 |
|
Total |
3,974 |
Production
and Operating Costs in US$
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Toys |
pcs |
- |
- |
1.4 |
38 |
450 |
|
Crayons |
pcs |
- |
- |
0.2 |
4 |
50 |
|
Picture Books |
pcs |
- |
- |
0.3 |
8 |
100 |
|
Cartoon Children music tapes |
pcs |
- |
- |
0.3 |
8 |
100 |
|
Cutlery |
pcs |
- |
- |
0.8 |
21 |
250 |
|
Sub-total |
- |
3 |
79 |
950 |
||
|
General Costs(Overheads) |
||||||
|
Cleaning and Toiletries |
260 |
3,120 |
||||
|
Advertising |
33 |
400 |
||||
|
Labour |
755 |
9,060 |
||||
|
Utilities |
60 |
720 |
||||
|
Rent |
400 |
4,800 |
||||
|
Miscellaneous |
104 |
1,250 |
||||
|
Medical Facilities medicine |
50 |
600 |
||||
|
Depreciation |
83 |
994 |
||||
|
Sub-total |
1,745 |
20,944 |
||||
|
Total Operating Costs |
1,824 |
21,894 |
1) Production costs assumed 312 days per year with daily capacity of caring for 30 kids.
2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
3) Direct costs include: materials, supplies and other costs that directly go into production of the product.
4) Total monthly days assumed are 26-days.
5) The valuation currency used is United States Dollars.
Project Product Costs and Price Structure
|
Service |
Kids/day |
Kids/yr |
Service-cost |
costs/yr |
Charge/kid |
Total Rev |
|
Day Care |
30 |
30 |
730 |
21,894 |
1,800 |
54,0 |
Profitability Analysis Table in US$
|
Item |
Per day |
Per Month |
Per year |
|
Revenue |
148 |
4,500 |
54,000 |
|
Less: Production and Operating Costs |
60 |
1,824 |
21,894 |
|
Profit |
88 |
2,676 |
32,107 |