Expert answer:Baby Care
Expert answer:My business plan is child day care center. Please read the report first then write the introduction and the conclusion
rasejoshishenbusinessmodelreport.docx
Unformatted Attachment Preview
1
Child Care Central
Rase, Joshi, Shen
Child Care Central
By Madison Rase, Urmiben Joshi, and Xiaoyang Shen
Introduction
Service description
The primary service of the child day care center will the utmost child care in the absence
of the parents. Our child care center will be run privately by its owners Urmi Joshi, Madison
Rase and Xiaoyang Shen. The main feature of the child day care center will be providing first
class, safe and kids friendly environment with healthy meal options for kids between the age
range of 4 months to 10 years. The day care center will employ experienced and trustworthy
caregivers who will be committed to provide homely love and care to kids. To do this, all the
staff will be hired after the successful completion of background checks on them. The day care
center will be staffed all the times and there will be enough care givers to take over each other’s’
shifts if the need arises. There will also be a child education specialist who will be committed
to engage the kids in educational activities and help them when needed in completing their
homework and other school assignments. There will also be a separate quite room for the school
going children for the reading and studying purpose.
The main concern for the parents is the safe and secure environment for the kids. By
keeping this in mind, there will be secure entry and safe building of the day care. Also, the
furniture, toys and the building area of the day care will be child proof so that the toddlers and
small children do not hurt themselves. There will be on-site kitchen to prepare fresh meals for
the kids and the monthly meal plan including breakfast, snacks and lunch will be provided to
the parents in advance to make them aware what their kids are eating in a day. Special dietary
2
Child Care Central
Rase, Joshi, Shen
meal options will also be served to the children who are allergic to any food. Also, there will
be different learning activities will be conducted every day for the development of the kids.
Overall, our child day care center is a kids friendly, secure day care center with healthy meal
options for all age group of children who is also committed to the children’s charity.
Market
The market need is classified into two categories. Gain and Pain. Either the target market
wants to gain something out of a product or a service or to relieve pain from a product or a
service. The market segmentation for the day care center is focused on meeting the need of
parents in Michigan who are looking for some place where the child will be taken care of in
absence of their parents. The target market for the day care center will be full-time working
couples where both the parents are working in the household and need someone to take care of
their kids, the part-time workers and drop-ins who are looking for someone to take care of kids
for on few days a week. The third type of target market are the parents of school going kids
who want the kids to stay at day care after school until they return from work. The need of the
parents behind the day care is the trustworthy and honest care givers for the infants and toddlers
and learning environment that focus on educational improvement for the school going children.
Also, the parents are looking for a day care center that provides healthy food options so that
the children adopt a healthy lifestyle and get enough nutrition every day. Also, the child care
center is associated with the charity where a particular portion of child’s fees are donated to
the children’s program, the parents gain the special feelings of doing something good along
with the relaxation that their kids are at safe place in their absence.
The need of relieving pain by using the child day care center is to live tension free life as
3
Child Care Central
Rase, Joshi, Shen
the kids will be taken care of in their absence. The parents will not have to worry about the
availability of the care givers at our child day care center as ours is staffed every day. The care
givers will also have the open shifts available so that they can take over each other’s shifts if
one of them is unavailable to work due to sickness or personal reasons. The main painful need
for the parents of the school going kids is to complete homework on time after the school. It is
hard for the full-time working couples to get the homework completed on time by kids as
parents themselves are tired and kids do not want to study after the tiring day. Our day care
center is committed to help school going kids to complete their homework on time before their
parents come to take them home. The child education specialist will help the kids complete
their homework and other assignments on time.
Competitive Products
There are many other competitive products/services filling this need. One of the alternative
is the baby-sitting exchange or a shared baby-sitting. In baby-sitting exchange parents take help
from other parents in their area and exchange baby-sitting help from each other. Both the
mothers plan their work according to each other’s schedule and take care of their kids when
one of them is absent. This is a cheap alternative to the day care center but is only useful for
the short-term needs and not appropriate for the full-time or part-time working couples.
Another alternative is the in-home day care where the day care specialist’s workplace is
their own home where they live. This is also a cheaper option to the traditional day care center
but there are limitations to it as well. Many in-home day care specialists are not licensed. The
non-profit day cares are also available in market. They also provide service at a cheaper rate
and conduct many activities for the kids to participate in.
4
Child Care Central
Rase, Joshi, Shen
One more alternative is the close friends and relatives who can take care of the kids in the
absence of parents. This is one of the safest option available for the parents as we trust our
relatives and close friends the most. However, it is not easily available for all the parents. The
people are moving to other states and countries for the career advancements where it is not
possible that the relatives are living nearby to take care of the kids in their absence. It can be
observed that above mentioned alternatives may be suitable for some parents and for limited
time frame but are not available to everyone and not convenient for the part-time or full-time
working couples.
Competitive Companies
There are many small and big day care centers in Saginaw and other Michigan cities. To
name a few, below are some of the highly rated and popular day care centers in Michigan.
•The adventure land day care center
The adventure land day care center is local private day care located at Barnard Road,
Saginaw, Michigan. They do not have their own websites but according to their description on
care.com, “We are a state licensed center that has been open for over 20 years. We accept DHS
aid to help subsidize tuition costs. All our staff are trained and CPR and First Aid certified!”.
They were established in 1981 and their approximate cost is $155 a week.
•Lollipop’s child care center
Lollipop’s child care center is also located in Saginaw Michigan. According to their
website, “Lollipop’s Child Care Center, Inc. is a year-round five (5) day program, which
operates Monday through Friday from 6:30am-6:00pm. The state of Michigan, Department of
Consumer and Industry Services Under Bureau of Regulatory Services licenses our center”.
5
Child Care Central
Rase, Joshi, Shen
They have a caregiver to child ration of 1:4 and have a tyke room, pre-school children area, 3
study rooms and they also provide breakfast, lunch and 2 snacks a day.
•Rainbow child care center
Rainbow child care center is spread over Michigan and other northern states. It is a private
company with multiple locations in Michigan. They have a separate program for all age group
of children. Being a corporate company, it is costly to other local day care centers but, having
brand name, there is a possibility that parents chose rainbow child care center over other local
day care centers.
•Michigan child care center
The Michigan child care center have three locations in Saginaw, Michigan. They have
other locations in Bay City, Essexville, Freeland, Frankenmuth and Midland. It is open for
extended hours from 6.30 am to 6.30 pm. They have a member of preschool partnerships
offering free preschool to those that qualify and special summer programs for school age
children. They also provide meals and transportation at selected locations in Saginaw.
•YMCA
According to Wikipedia, “YMCA known as The Young Men’s Christian Association,
commonly known as the YMCA or simply the Y, is a worldwide organization based in Geneva,
Switzerland, with more than 2 billion beneficiaries from 125 national associations”. They
provide many other services at low cost including child day care services throughout the world.
Many YMCA locations offer free drop-in child care while mom or dad make use of the YMCA.
They offer playful, engaging options that are plentiful for young children while the parents
exercise or connect with others over shared interests at YMCA. They also have ‘early learning
6
Child Care Central
Rase, Joshi, Shen
readiness program’ where they prepare kids for the school and teach English to the children
who come from the families that do not have English as a first language.
Industry Analysis
The business of child day care in the United States has constantly increased sales in the
past years according to new data provided by Sageworks. Running a day care business for
children can be an ongoing struggle to balance expenses with the capability of the parent to
pay. The Bureau of Labor Statistics of the United States mentions that the day care business
will have some of the fastest employment developments among all industries all through the
year 2020. What is more, Sageworks produces data regarding the child day care business
mentioning that it has steadily developed sales in the past years. They support this data by
mentioning that the business has grown even when other industries have been struggling in the
economic slumps and the ensuing recovery. In Midland County, there were sixty-six child care
centers that were licensed while the child care homes that were licensed were ten in the year
2013. Furthermore, the county had ten child care homes that were registered in the same year
(MISD, Pg. 19, Para. 2). Child Care is a sustenance service for parents who are employed, go
to school, or take part in occupation training. Those entitled to child care help consist of
children of age 13 and below. The characteristics include; those children whose parents or
guardians are getting or changing from official aid, those who are getting or require defensive
services, or those children whose households receive low-income (MISD, Pg. 34, Para. 6).
Child centers for development in Midland vary in scope and in size. Some provide
advanced agendas and latest progress for preschool children while others are friendlier child
day care centers that go all-out for a relaxed technique to care for children. Whatever a parent
7
Child Care Central
Rase, Joshi, Shen
or guardian’s main concerns may be, getting the precise day care for a child is paramount. The
Workforce Boards in Midland Michigan may set up an income entitlement boundary that suits
local necessities, provided that it does not go beyond eighty five percent of the State Median
Income for a household of equal size, offers care for handicapped children until they are 19
years of age, establishes how much time a parent or guardian may be indulging in training or
education acts and gets child care services, ascertains the cost of shares of the parents, finds
out the greatest compensation rate of the payment, and finds out attendance guidelines. Parents
or guardians are at liberty to select the kind of child care that best fits their requirements and
to be told of every child care alternatives obtainable, including; the child care centers that are
registered and licensed household homes, and relative care. Another characteristic of the
midland county that lead to extensive child care centers is lack of affordable housing.
Affordable housing is one of the many concerns in Midland.
Midland has had very little affordable housing due to the economic conditions has pulled
various new residents and increased housing shortage. It is normal for house rent to augment
every time an agreement terminates. For instance, some rental houses are merely obtainable
on a lease of three months.
After every three months, the household is compelled to disburse a rent increase or move
out. Annually, Midland city is rewarded CDBG finances from the U.S. Department of Housing
and Urban Development (HUD).
The goal of supportive CDBG agenda is to establish
feasible urban communities by offering affordable housing with an appropriate living
surrounding and increasing economic prospects, principally for individuals of low and fair
revenue.
8
Child Care Central
Rase, Joshi, Shen
The City’s Consolidated Plan directs utilization of CDBG finances for Community
Development and Housing money. This is considered as one of the traits of Midland County
that results in an extensive child care markets because there are no affordable housing projects
for families. Therefore, families result in taking their children to the day care centers while they
go to work or school to have their children taken care of in their absence.
Market Growth
The growth rate of the market has increased. Running a day care business for children can
be an ongoing struggle to balance expense with the capability of a parent to pay. Additionally,
owners or providers of child day care services ought to also focus on the industry guidelines,
because scrutiny from the clients or parents and agencies of the government come with a
boundary. For instance, Arkansas is thinking about the proposed modifications for child care
owners that cover a variety of concerns, from psychological like getting rid of behavior chart,
to safety measures like ratio of children to employees. This means that guidelines can add to
costs, at times before producers can recover the increase via higher fees. The child day care
business has standard net revenue per Sageworks paused the standard for each industry between
2010 and 2011. This, however, rebounded to approximately eight percent in the last twelve
months which was equal to each company that was privately held. Averagely, the day care
industry has a strong net revenue margin and constant sales increase. An explanation for this is
that the day care businesses providers can increase and scale their operations. The number of
child care entities has augmented largely over the past decades.
The United States Census Bureau shows that the entities have increased from 262,511 in
1987 to 766,401 in 2007. Midland alone has 4540 children who are age 5 and below (Nowak
9
Child Care Central
Rase, Joshi, Shen
and Gibbs, pg. 18, Para. 3). The increase of women who are working has increased the number
of day care entities in the United States. Furthermore, the Census Bureau mentions that sixty
one percent of mothers have increased the demand for child care entities because they have
children below the age of three years or are searching for work. Besides, alterations in
household structures and the wish to offer young children with educational prospects have also
added to the demand as per the U.S government.
The providers of day care centers have the right to enter and exit the market as required
since many of these businesses function in homes and need less monetary investment (BSL,
Para. 1). Another reason the providers can enter and exit the business as need is because most
of the day cares do not have members of staff.
A study carried out by the Education Week in 2002, states that the around 6 of 10 children
or about twelve million children from five years and below are mutually being taken care of by
early childhood trainers, child-care owners, relatives or parents according to Quality Counts
survey. The Unites States does not have paid parental leave agenda for members of staff after
a child is born. This is unlike so many other nations. Every state in the United States has
principles for household day homes and guidelines regarding licensing of day cares. The
Carnegie Corporation evaluation in 1994 stated that the issues of the country’s youngest
children and their households were the main problem. The report mentioned that an average of
half of the young children in America begin life at a disadvantage because of risk facets that
involve poor child care. However, in the 21st century the growth rate of the market has
improved due to the intervention of child-care agencies that have set standards required to
operate a child day care center. The standards set by these agencies have resulted in adequate
10
Child Care Central
Rase, Joshi, Shen
child care.
Target Customers
The target market for the child day care service is dual income families with children under
the age of 12 that are middle class. Parents with children aged 5 and under would be the primary
customers for full-time care, while parents with school-aged children, 6-12, would be the
primary customers for part time or after school care.
Middle class income in Michigan is defined as $39,226 to $117,678 for a household of 3,
and $50,641 to $151,922 for a household of 5.
According to a report by Gale Cengage Learning, 17.7% of the population in Midland
County, Michigan is between the ages of 0 and 14, with a total population of 84,290. 13.1% of
households have an annual income of $35,000-$49,999, 18.6% of $50,000-$74,999, 12.9% of
$75,000-$99,999, 7.2% of $100,000-$124,999, 4.5% of $125,000-$149,999, and 10.1% of
$150,000+. There are 33.688 households in Midland County, with an average household size
of 2.50. 20.7% of households are husband-wife families with children.
Bay County has a population of 106,234. There are 43,749 households, which yields an
average household size of 2.43. 15.9% of households are husband-wife families with children.
17.0% of the population is between the ages of 0 and 14. 14.1% of households have an annual
income of $35,000-$49,999, 23.6% of $50,000-$74,999, 12.8% of $75,000-$99,999, 7.3% of
$100,000-$124,999, 3.3% of $125,000-$149,999, and 4.4% of $150,000+.
Saginaw County has a population of 196,211. There are 76,619 households, which yields
an average household size of 2.56. 15.6% of households are husband-wife families with
children. 17.8% of the population is between the ages of 0 and 14. 13.5% of households have
11
Child Care Central
Rase, Joshi, Shen
an annual income of $35,000-$49,999, 20.8% of $50,000-$74,999, 13.0% of $75,000-$99,999,
7.0% of $100,000-$124,999, 3.8% of $125,000-$149,999, and 5.3% of $150,000+.
This child day care service offers higher quality care than other options. There is a kitchen
on site for the preparation of healthy foods for meals, as well as meals conforming to dietary
restrictions. A child development specialist is on site to assist with providing educational
activities for children and ensuring they get the care and attention they need to thrive. During
the school year tutoring and homework assistance are offered for school age students. This
facility aims to enrich the lives of children in addition to providing care while their parents are
away.
Business Model Validation
Validation for this business model was performed using a consumer survey targeted at
parents in the Bay, Saginaw, and Midland County area. The following questions were asked:
1. What county do you live in?
a. 42% Midland, 34% Bay, 20% Saginaw, 4% other
2. How many working adults are in your household?
a. 95% two
3. What is your annual ho …
Purchase answer to see full
attachment
How it works
- Paste your instructions in the instructions box. You can also attach an instructions file
- Select the writer category, deadline, education level and review the instructions
- Make a payment for the order to be assignment to a writer
- Download the paper after the writer uploads it
Will the writer plagiarize my essay?
You will get a plagiarism-free paper and you can get an originality report upon request.
Is this service safe?
All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades