PRICING

As mentioned, we are primarily targeting customers who are willing to

pay a premium for a center which enjoy a reputation for quality care
and learning, safety, and convenience. We are referring to these as the
Kindercare parents. Although we cannot match Kindercares marketing
budget and national brand awareness, as a lean and efficient
operation, we will save on indirect expenses (overhead) and
expensive marketing campaigns and thus set our basic day care and
program rates at about 20- to 30% lower than Kindercares.
Currently, Kindercare charges $350 to $375 per week for an infant for
five days a week. This is our pricing baseline from which we will
determine our baseline. Wonderland Day Care Center will start at $259
per week, with similar discount on the daily rates. Therefore, our
services will save a family with one child over $4,100 over the course of
a 46-week year. A family of two will save approximately $8,000.
PROMOTION

We intend to promote our center and our unique value proposition on

an ongoing (internet platforms) and periodic basis.
Internet marketing- This is the centerpiece of our promotion strategy.
It consists of a well-designed, professional website that is informative,
customer-oriented and sells the center, reinforcing our value
proposition of quality, price and convenience and stating our safety
protocols. Our designers will borrow some of the look and feel of the
best national sites. This will set us apart from the countless, local
centers who rely on a simple basic listing on Care.com. Additionally, we
will advertise on Montreal-based websites, who will link to our site.
Multicultural marketing- Twice a year we will host an open house
and / or a meet and greet at select area locations where multi

language parents congregate and at our center. We will promote

upcoming seasons and new programs.
Referrals- Generally, the most valuable form of promotion comes from
your customers. Especially when it regards a critical decision like care
for a family member. We will use a proven referral engine to bring us
qualified leads starting in year two and have included this cost in our
budgets.
DISTRIBUTION

Our services will be based out of a modern, clean and safe facility in
Montreal. No additional distribution is required, although, as
mentioned, we may offer a transportation service.

Strategy and Implementations

MILESTONES

Year 1, Month 1: We expect to secure a lease by mid-to late

November, and begin on improvements immediately thereafter.
Interior improvements such as safety upgrades, lights, cameras
as well as rented furnishings should be in place by early
December. We have already identified the equipment that we will
purchase or rent.

Year 1, Month 3: The playground equipment has been identified and

will be installed by early January.
Our safety officer see Management Team section will visit the
center at least twice during and after the facility preparation.
Year 1, Month 3: We have identified a local website design and service
company and we expect the site to be fully-operational by January 15.
Year 1, Month 6: After about 6 months in business, we will apply to
one or more of the three accrediting organizations.
Year 1, Month 8: Achieve positive cash flow
Year 1, Month 9: Achieve break-even
SWOT ANALYSIS
Strengths

Our team is well-known and

respected
Experience and professional
credentials differentiates us from
most local centers
Multi-lingual staff

Weaknesses

New center with no

established customer
base
Our price is higher than
most local centers

Opportunities

Growing base of local families

Threats

Other centers may

target French-language

 Many multi-language families

Affluent area who understand
value of early childhood education

families
National brands may
lower prices

COMPETITIVE ADVANTAGES

We believe that our center will succeed for the following reasons:
High quality services- Our professional training (Level 4 and 3
credentials), experience, and curriculum exceed state standards,
and are equivalent to the national chains.
We will invest in
continuing education for our staff.
Safety- Our safety directives and protocols have been designed
to compare favorably to the best in class (generally accepted as
KinderCares or La Petites); have been developed in coordination
with our safety advisor.
Local care and knowledge that the national brands cant
match- We will continue to remind our customers that, as a local,
woman-owned business we are from this areas schools and
houses of worship, and can serve as local experts in child care
and development. We believe that most parents prefer to
patronize local merchants.
Location and Convenience- By driving to and from our
proposed location during morning and evening rush hour, we
confirmed that our center will be within 12 minutes of 60% of the
citys neighborhoods.
Spanish language- We believe that Montreals prominent multilanguage community (see Demographics) is under-served since
there are few accredited centers that offer multi-language
programs.

STRATEGIC ALLIANCES

Ms. Vieco is on the Board of Directors of the Montgomery County

Hispanic Business Council which allows her to host a monthly
roundtable meeting on local business issues relevant to Hispanic
women. On an ongoing basis she will be able to mention her new day
care venture.

Financial plan

SALES FORECAST
Sales Forecast Table
Year 1

Year 2

Year 3

Basic Service

471

754

918

School Age Program

339

504

Summer Camp

30

Basic Service

$259

$259

$259

School Age Program

$0

$129

$129

Summer Camp

$0

$0

$995

Basic Service

$121,989

$195,286

$237,762

School Age Program

$0

$43,731

$65,016

Summer Camp

$0

$0

$29,850

Unit Sales

Price Per Unit

Sales

Total Sales

$121,989

$239,017

$332,628

Basic Service

$0

$0

$0

School Age Program

$0

$0

$0

Summer Camp

$0

$0

$0

Basic Service

$0

$0

$0

School Age Program

$0

$0

$0

Summer Camp

$0

$0

$0

Total Direct Cost

$0

$0

$0

Gross Profit

$121,989

$239,017

$332,628

Gross Profit %

100%

100%

100%

Direct Cost Per Unit

Direct Cost

SALES BY MONTH

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PERSONNEL PLAN
Personnel Table
Year 1

Year 2

Year 3

Center Director

$32,400

$33,048

$33,696

Lead Child Care Teacher

$30,000

$30,600

$31,200

Preschool Specialist

$14,400

$29,088

$29,664

Total

$76,800

$92,736

$94,560

BUDGET
Budget Table
Year 1

Year 2

Year 3

Salary

$76,800

$92,736

$94,560

Employee Related Expenses

$11,520

$13,910

$14,184

Rent

$27,000

$27,000

$27,000

Legal

$1,000

$0

$0

Phone and Internet

$4,500

$4,500

$4,500

Furnishings

$4,200

$4,200

$4,200

Accounting & Tax Services

$900

$900

$900

IT Support

$2,244

$2,244

$2,244

Playground Equipment & Toys

$6,850

$0

$0

Fence & Outside Lighting

$4,500

$0

$0

Website

$3,000

$0

$0

Security and Safety Improvement

$2,650

$0

$0

Interior Improvement

$3,000

$0

$0

Advertising

$3,300

$3,300

$3,300

Total Expenses

$151,464

$148,790

$150,888

$0

$0

$0

Expenses

Long-term Assets
Total Long-term Assets

Other Current Assets

Total Other Current Assets

$0

$0

$0

$0

$0

$0

Dividends and Distributions

Total Dividends and Distributions
Expenses by Month

CASH FLOW ASSUMPTIONS

Cash Flow Assumptions Table
Cash Inflow
% of Sales on Credit

40%
30 days

Cash Outflow
% of Purchases on Credit

0%

Avg Payment Period (Days)

0 days

Inventory
Months to Keep on Hand
Minimum Inventory Purchase

LOANS AND INVESTMENTS

Loans and Investments Table

Year 1

Year 2

Year 3

Owner Investment

$40,000

$0

$0

Total Amount Received

$40,000

$0

$0

PROFIT AND LOSS STATEMENT TABLE

Year 1

Year 2

Year 3

Revenue

$121,989

$239,017 $332,628

Direct Cost

$0

$0

Gross Profit

$121,989

$239,017 $332,628

Gross Profit %

100%

100%

100%

Salary

$76,800

$92,736

$94,560

Employee Related Expenses

$11,520

$13,910

$14,184

Rent Expense

$27,000

$27,000

$27,000

Professional Fees

$4,144

$3,144

$3,144

Utilities

$4,500

$4,500

$4,500

Repairs and Maintenance

$9,850

$4,200

$4,200

Equipment/ Furniture

$11,350

$0

$0

Advertising and Promotion

$6,300

$3,300

$3,300

Expensed Portion of Other Current Assets

$0

$0

$0

Depreciation and Amortization

$0

$0

$0

Total Operating Expenses

$151,464

$148,790 $150,888

Operating Income

$(29,475)

$90,226

$0

Operating Expenses

Other Expenses (& Other Income)

$181,740

Loss (or Gain) on Sale of Asset

$0

$0

$0

Interest Expense

$0

$0

$0

Total Other Expenses (& Other Income)

$0

$0

$0

Income Before Income Tax

$(29,475)

$90,226

$181,740

Income Taxes

$0

$0

$0

Net Income

$(29,475)

$90,226

$181,740

Net Income / Sales

(-24%)

38%

55%

Net Profit (or Loss) by Year

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BALANCE SHEET TABLE
As of Periods End

Starting Balances Year 1

Year 2

Year 3

Cash

$0

$5,137

$91,279 $271,259

Accounts Receivable

$0

$5,387

$9,472

$11,232

Inventory

$0

$0

$0

$0

Other Current Assets

$0

$0

$0

$0

Total Current Assets

$0

$10,525 $100,751 $282,491

Long-Term Assets

$0

$0

$0

$0

Accumulated Depreciation

$0

$0

$0

$0

Total Long Term Assets

$0

$0

$0

$0

TOTAL ASSETS

$0

$10,525 $100,751 $282,491

Accounts Payable

$0

$0

$0

$0

Sales Taxes Payable

$0

$0

$0

$0

Short-Term Debt

$0

$0

$0

$0

Total Current Liabilities

$0

$0

$0

$0

Long-Term Debt

$0

$0

$0

$0

TOTAL LIABILITIES

$0

$0

$0

$0

Paid-in Capital

$0

$40,000 $40,000 $40,000

Retained Earnings

$0

$0

Profit and Loss Current Period

$0

$(29,475) $90,226 $181,740

TOTAL OWNERS EQUITY

$0

$10,525 $100,751 $282,491

TOTAL LIABILITIES & EQUITY

$0

$10,525 $100,751 $282,491

$(29,475) $60,751

CASH FLOW STATEMENT TABLE

Year 1

Year 2

Year 3

OPERATING ACTIVITIES
Net Income

$(29,475) $90,226 $181,740

Depreciation and Amortization

$0

$0

$0

Gain or Loss on Disposal of Asset

$0

$0

$0

Change in Accounts Receivable

$(5,387)

$(4,085) $(1,759)

Change in Inventory

$0

$0

$0

Change in Accounts Payable

$0

$0

$0

Change in Sales Taxes Payable

$0

$0

$0

Change in Other Current Assets

$0

$0

$0

Net Cash from Operating Activities

$(34,862) $86,141 $179,980

INVESTING & FINANCING ACTIVITIES

Long-Term Assets Purchased or Sold

$0

$0

$0

Investments and Contributions Received

$40,000

$0

$0

Change in Short-Term Debt

$0

$0

$0

Change in Long-Term Debt

$0

$0

$0

Dividends and Distributions

$0

$0

$0

Net Cash from Investing & Financing

$40,000

$0

$0

Cash at Beginning of Period

$0

$5,137

$91,279

Net Change in Cash

$5,137

$86,141 $179,980

Cash at End of Period

$5,137

$91,279 $271,259

Cash Flow by Month

Cash Flow by Year

FINANCIAL RATIO TABLE

Projected
As of Periods End

Year 1

Year 2

Year 3

Net working capital

$10,525

$100,752

$282,492

Current ratio

0%

0%

0%

Quick ratio

0%

0%

0%

Gross profit margin

100%

100%

100%

Operating profit margin

(-24%)

38%

55%

Net profit margin

(-24%)

38%

55%

Debt to assets

0%

0%

0%

Debt to equity

0%

0%

0%

Liquidity Analysis

Profitability Analysis

Debt Ratios

Investment Measures
ROI

(-280%)

90%

64%

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