BUSINESS IDEA FOR ESTABLISHING A DAY CARE

 Introduction

Children in day care are cared for from the age of two months to roughly three or four years. It is an early childhood childcare service for working parents who might not be able to have their kids with them and who might not have anyone at home who can take care of them. Toddlers are dropped off at the daycare facility by their parents in the morning, and they are picked up as soon as they get home. The project will cost an estimated $3,974 in fixed capital, $21,894 in running expenditures, and $54,000 in income in its first year of operation.

Capacity and Process of Delivering Service

This business plan is predicated on starting off with at least 30 kids. The attendant at the Center welcomes the toddlers as directed. She or he would have the parent's confirmation of the child's condition at that time. The kids might be dozing off, needing a bath, a beverage, or perhaps breakfast. The children at the Center are divided into age groups Activities that mostly involve playing are organized by age group. While some of the older kids can play independently, others require assistance. Some people might be asleep. Age plays a role in subsequent feeding because toddlers are fed at varying intervals and based on parental instructions. The health and behavior of the children are continuously observed. If a child is discovered to have a highly contagious illness, they may occasionally be carefully segregated. Since youngsters are delicate, the feeds receive special consideration. In general, children may receive two meals 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 soothing 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$

Capital investment	unit	qty	Unit cost	total
TV and music system	No	2	300	600
Merry go round	No	1	200	200
slide	No	1	200	200
Bed & beddings	No	2	138	278
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$

(a)  Direct Materials, Supplies and Costs

Cost item	Unit	Unit cost	Qty/day	Pdn Cost/ day	Pdn Cost/ mth	Pdn Cost/yr
Direct costs
Toys	pcs	-	-	1.4	38	450
Crayon	pcs	-	-	0.2	4	50
Picture books	pcs	-	-	0.3	8	100
Cartoon children	pcs	-	-	0.3	8	100
Cut lay & utensils	pcs	-	-	0.8	21	250
Sub total				3	79	950

 

General cost (overhead)	Pdn Cost/ mth	Pdn Cost/yr
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.

 

Market Analysis

This service is in high demand, especially if it is delivered with professionalism and precision. Many working-class parents require this service since they cannot afford to have a professional in their home. Since it is prohibited to bring children to work, there is a lot of opportunity. The creation of daycare facilities is now a successful venture.

 

Project Product Costs and Price Structure

Service	Kids/day	Kids/yr	Services cost	Rng costs/yr	Charge/kid	Total R
Day care	30	30	730	21,894	1,800	54,000

 

Profitability Analysis Table in US$

Profitability item	Per day	Per month	Per year
Revenue	148	4,500	54,000
Less: production and operating costs	60		21,894
Profits	88	2,6761,824	32,107

 

Source of Supply of Raw Materials:

The necessary reading materials and other children play materials are readily found in Uganda’s major Super markets and Book Shops.

 

Government Incentives

The role of all East African governments is to raise awareness of proper management of these institutions and to assist in the provision of fundamental educational resources, such as designing Syllabuses.