Preschool industry operators provide daycare services for children under the ages of three and four to prepare them for kindergarten. The dispersion of the preschool programs reflects in the geographic distribution of the children, which is also influenced by the cost and supply of preschool programs, income and housing affordability patterns, labor, and child care subsidy policies.

Also, varying state and local regulations and licensing requirements affect employment in this industry. Preschools are under the Early Childhood Learning Centers Industry and the market size, measured by revenue of the Early Childhood Learning Centers industry is $10.7bn in 2022. The industry is expected to increase by 4.6% in 2022.

Steps on How to Write a Preschool Business Plan

  1. Executive Summary

Auntie Lavendar® Preschool, Inc. is a standard and well–equipped preschool that will be located in a well-populated residential estate in Ashville – North Carolina, USA. We provide daycare services for children under the ages of three and four to prepare them for kindergarten.

Aside from the fact that we will operate a preschool center, we will also propvide in-home tutoring – we will go to the homes of our students as demanded by their parents. Donald Derrick is the founder and CEO of Auntie Lavendar® Preschool, Inc.

  1. Company Profile

a. Our Products and Services

Auntie Lavendar® Preschool, Inc. will provide a wide range of services that revolves around providing daycare services for children under the ages of three and four to prepare them for kindergarten. Our services are designed to give early childhood education to kids under the age of 4 and also help provide relief to parents when they need to be away from their kids for a period of time.

b. Nature of the Business

Auntie Lavendar® Preschool, Inc. will operate the business to consumer business model (B2C).

c. The Industry

Auntie Lavendar® Preschool, Inc. will operate under the Early Childhood Learning Centers Industry.

d. Mission Statement

Our mission is to provide safe and secured daycare facility and services geared towards educating and taking care of kids of a certain age. We are all out to prepare kids for kindergarten.

e. Vision Statement

Our vision of establishing our preschool is to grow the business to be amongst the top three preschools in the whole of the United States of America.

f. Our Tagline (Slogan)

Auntie Lavendar® Preschool, Inc. – Rasing and Educating Golden Kids!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Auntie Lavendar® Preschool, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ personal assets from claims against the business, including lawsuits.

h. Our Organizational Structure
  • Head of Preschool (President)
  • Preschool Administrator
  • Account Officer
  • Early Childhood Educators
  • Front Desk Officer
  • Cleaners and Nannies
  • Security Guards
i. Ownership/Shareholder Structure and Board Members
  • Sophia Lavendar (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
  • Solomon Lavendar (Board Member) 19 Percent Shares
  • Adrain Lavendar (Board Member) 10 Percent Shares
  • Larry Brad (Board Member) 10 Percent Shares
  • Lauren Williams (Board Member and Sectary) 10 Percent Shares.
  1. SWOT Analysis

a. Strength
  • Ideal Location for preschool business
  • Highly Experienced and Qualified Employees and Management
  • Highly Secured and Clean Facility
  • Highly structured programs aimed at giving kids early childhood education and to prepare them for kindergarten.
b. Weakness
  • Financial Limitations
  • Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
  • Inability to retain our highly experienced and qualified employees longer than we want
c. Opportunities
  • Growth in per capita disposable income influences demand for early childhood learning centers. Households with higher disposable income are more likely to be able to afford higher-quality child care and, thus, will be more likely to demand higher-cost services. Per capita disposable income is expected to increase in the coming year, presenting an opportunity to the industry.
i. How Big is the Industry?

The early childhood learning industry is indeed a big industry. The market size of the is projected to be over $10.7 billion in 2022.

ii. Is the Industry Growing or Declining?

Available statistics point to the fact that the industry is presently not growing and revenue for the industry has been adjusted from an increase to a decline.

Please note that from 2022 the revenue of the industry is anticipated to start growing as the economy recovers and COVID-19 (coronavirus) cases subsequently drop in line with the nationwide vaccination rollout. As a matter of fact, available data shows that the industry is projected to grow by 4.6 percent in 2022 recovering from a decline of -3.8 between 2017 and 2022.

iii. What are the Future Trends in the Industry

The early childhood learning centers industry is changing, and players in the industry are improvising. No doubt, technology, kids-friendly legislature and customized software will change the landscape of the industry going forward.

iv. Are There Existing Niches in the Industry? If YES, List them

No, there are no niche ideas when it comes to preschool line of business.

v. Can You Sell a Franchise of your Business in the Future?

Auntie Lavendar® Preschool, Inc. has the plans to sell franchise in the nearest future and we will target major cities with a growing numbers of parents in the United States of America.

d. Threats
  • Lack of support from stakeholders and the government
  • Unfavorable government policy and regulations.
  • Community resistance (May not want such facility to be located in their community)
  • Liability problems
  • Arrival of competitors within our market space.
i. Who are the Major Competitors?
  • The Episcopal School
  • Pacific Northern Academy (PNA)
  • Westside Neighborhood School
  • Lowell School
  • East Linn Christian Academy
  • Cambridge-Ellis School
  • Saint Ann’s
  • The Children’s School.
  • Germantown Friends School
  • Beyond ABCs
  • Mary Institute and Saint Louis Country Day School
  • Avenues World School
  • National Child Research Center
  • Wetherby-Pembridge School
  • University of Chicago Laboratory Schools
  • Greenhill School
  • Presidio Knolls
  • Ecole Bilingue de Berkeley
  • Gems World Academy
  • Bank Street School.
ii. Is There a Franchise for Preschool?

Yes, there are franchise opportunities for preschool and here are some of them;

  • Genius Kids (Initial investment: from $122,000)
  • KLA Schools (Initial investment: from $1,100,000)
  • Adventure Kids Playcare (Initial investment: from $385,000)
  • Primrose Schools (Initial investment: $652,000)
  • Discovery Point (Initial investment: from $405,570)
  • Lightbridge Academy (Initial investment: from $581,000)
  • Building Kidz School (Initial investment: from $214,000)
  • KidsPark (Initial investment: from $261,000)
  • Montessori Kids Universe (Initial investment: from $424,000)
  • The Goddard School (Initial investment: from $698,000)
  • Kiddie Academy (Initial investment: from $400,000)
  • The Learning Experience Academy of Early Education (Initial investment: from $544,000).
iii. Are There Policies, Regulations or Zoning Laws Affecting Preschools?

Yes, there are county or state regulations and zoning laws for preschools, and players in this industry are expected to work with the existing regulations governing such business in the county or state where their business is domiciled.

For example, the designated area for children’s activities should contain a minimum of forty-two square feet of usable floor space per child. A usable floor space of fifty square feet per child is preferred. However, you may be subject to local permits depending on how you plan to operate your preschool.

  1. Marketing Plan

a. Who is Your Target Audience?

i. Age Range

We will admit children between the ages of 2 and 4 years old.

ii. Level of Educational

We don’t have any restrictions on the level of education of those we will admit their kids to our preschool.

iii. Income Level

We don’t have any cap on the income level of those we will admit their kids in our preschool.

iv. Ethnicity

There is no restriction when it comes to ethnicity of the people we are looking forward to admit their kids in our preschool.

v. Language

There is no restriction when it comes to the language spoken by the people we are looking forward to admitting their kids to our preschool, however, we will prefer people who speak the English language.

vi. Geographical Location

Any parent from any geographical location will be welcome to enroll their kids in our preschool.

vii. Lifestyle

Auntie Lavendar® Preschool, Inc. will not restrict any parent from accessing our facility and services based on their lifestyle, culture or race.

b. Advertising and Promotion Strategies
  • Host Themed Events That Catch The Attention of Parents.
  • Tap Into Text Marketing.
  • Use FOMO to Run Photo Promotions.
  • Share Your Events in Local Groups and Pages.
  • Turn Your Social Media Channels Into a Resource
  • Develop Your Business Directory Profiles
  • Build Relationships With Other Parent Associations in our Area
i. Traditional Marketing Strategies
  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage on direct sales, direct mail (postcards, brochures, letters, fliers), referral (also known as word-of-mouth marketing).
ii. Digital Marketing Strategies
  • Social Media Marketing Platforms.
  • Influencer Marketing.
  • Email Marketing.
  • Content Marketing.
  • Search Engine Optimization (SEO) Marketing.
  • Affiliate Marketing.
  • Mobile Marketing.
iii. Social Media Marketing Plan
  • Start using chatbots.
  • Create a personalized experience for our clients.
  • Create an efficient content marketing strategy.
  • Create a community for young parents and intending parents.
  • Gear up our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on the relevant social media channels.
  • Run cross-channel campaigns.
c. Pricing Strategy

When working out our pricing strategy, Auntie Lavendar® Preschool, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package. In all our pricing strategy will reflect;

  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing.
  1. Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, parent clubs, and clinics to help refer parents to us.

Auntie Lavendar® Preschool, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted.

b. Inventory Strategy

The fact that we will need toiletries, change of beddings, supplies and food per time means that Auntie Lavendar® Preschool, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Auntie Lavendar® Preschool, Inc. will make available to her donors and contributors;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
d. Return Policy, Incentives and Guarantees

At Auntie Lavendar® Preschool, Inc., we offer services, and the nature of the services we offer does not accommodate return policy, but we will guarantee parents that their kids will get the best of early childhood learning and education.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer’s feedback. This will help us provide excellent customer service to all our customers, it will help us to first understand their needs, experiences, and pain points. We will work with an effective CRM software to be able to achieve our aim of surpassing our customer’s need.

On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

  1. Operational Plan

We plan to expand our revenue by 45 percent in the second year and the plan will include a marketing, sales and operations component. The operations component of the plan would include attracting more customers and additional service offerings that will enable the organization to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at a Preschool?
  • The facility is open for the day
  • The facility is cleaned and prepared for the day’s activities
  • Parents are welcome and their kids are received from them
  • Early childhood learning activities, as well as playing with kids to encourage mental and physical stimulation are carried out as required
  • Administrative works are done
  • Parents come to pick their kids and the facility is closed for the day.
b. Production Process

There is no production process when it comes to a preschool.

c. Service Procedure

There is no service procedure when it comes to a preschool.

d. The Supply Chain

Auntie Lavendar® Preschool, Inc. will rely on parent associations and other stakeholders in our city to refer parents to us. So also, we have been able to establish business relationship with wholesale supplies of beddings, toiletries, and other supplies.

e. Sources of Income

Auntie Lavendar® Preschool, Inc. make money from;

  • Providing daycare services for children under the ages of three and four to prepare them for kindergarten.
  • Offering home tutor services for toddlers as requested by their parents
  • Retailing early childhood learning materials.
  1. Financial Plan

a. Amount Needed to Start Our Preschool?

Auntie Lavendar® Preschool, Inc. would need an estimate of $250,000 to successfully set up our preschool in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation and the renting of our operational facility.

b. What are the Cost Involved?
  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $1,300.
  • Marketing, Branding and Promotions – $3,000.
  • Business Consultant Fee – $2,500.
  • Insurance – $5,400.
  • Rent/Lease – $120,000.
  • Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
  • Operational Cost (salaries of employees, payments of bills et al) – $30,000
  • start-up inventory – $15,000
  • Store Equipment (cash register, security, ventilation, signage) – $4,750
  • Furnishing and Equipping – $45,000
  • Website: $800
  • Opening party: $3,000
  • Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Auntie Lavendar® Preschool, Inc. will not build a new facility for our preschool; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Preschool?
  • Cost of stocking up supplies such as toiletries, change of beddings, and other supplies
  • Utility bills (gas, internet, phone bills, signage and sewage et al)
  • Salaries of employees
e. What is the Average Salary of your Staff?
  • Head of Preschool (President) – $45,000 Per Annum
  • Preschool Administrator – $36,034 Per Annum
  • Account Officer – $35,000 Per Annum
  • Early Childhood Educators – $33,300 Per Annum
  • Front Desk Officer – $28,000 Per Annum
  • Cleaners and Nannies – $22,000 Per Annum
  • Security Guard – $22,000 Per Annum.
f. How Do You Get Funding to Start a Preschool?
  • Raising money from personal savings and sale of personal stocks and properties
  • Applying for a loan from your bank/banks
  • Pitching our business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
  • Source for soft loans from our family members and friends.
  1. Financial Projection

a. How Much Should You Charge for your Service?

At Auntie Lavendar® Preschool, Inc. it is important to note that we will charge $4,460 to $13,158 per year ($372 to $1,100 monthly) on average, depending on the services involved.

b. Sales Forecast?
  • First Fiscal Year (FY1): $250,000
  • Second Fiscal Year (FY2): $350,000
  • Third Fiscal Year (FY3): $450,000
c. Estimated Profit You Will Make a Year?
  • First Fiscal Year (FY1): (65 percent)
  • Second Fiscal Year (FY2): (45 percent)
  • Third Fiscal Year (FY3): (50 percent)
d. Profit Margin of a Preschool Product/Service

Auntie Lavendar® Preschool, Inc. will work towards achieving between 25 percent to 45 percent.

  1. Growth Plan

a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?

Auntie Lavendar® Preschool, Inc. will grow our preschool by first opening other outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchise from the sixth year.

b. Where do you intend to expand to and why?

Auntie Lavendar® Preschool, Inc. plans to expand to Dallas – Texas, New York City – New York, Sumter – Florida and then to Liliano – Texas, Lancaster – Virginia, Alcona – Michigan, Los Angeles – California and Catron New Mexico.

The reasons we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest number of people with kids below the age of 5 in the United States.

  1. Exit Plan

The founder of Auntie Lavendar® Preschool, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.