Describe the type of business you have created that includes: product or service, staffing plan, the benefits of the business, and a chart of accounts specific to your business including a rationale as to the selection of each account. Naim’s Playhouse is a start-up organization that provides child care services to Summerville, North Charleston, Ridgeville, Jedburg, and all the local suburb areas of South Carolina. This mid-sized child care facility serves children from birth to their teen years. My services are safe and secure and provides parents with an excellent place where their children can be taken care of.
The Market
The child care market is quite competitive in the South Carolina area. There are over 300 different facilities. There are two general types of facilities. The larger style is commercially run, typically a corporate franchise center. These facilities are both regional and national. Currently, the four largest child care facilities in the USA account for 29% of the market. There are also many different smaller locally run and owned faculties. While the largest facilities can host between 20-100 children, the locally run centers typically have a maximum capacity of 20 children.
As mentioned earlier, the market is quite competitive. Naim’s Playhouse will employ two strategies to differentiate themselves. The first is a pricing structure where Naim’s Playhouse services will be priced at 5%-10% less than the larger commercial run facilities. The second differentiating effort will be benchmarked customer service. A customer-centric philosophy will be infused within the entire organization. Naim’s Playhouse will spend extra money to attract Business 2 and train the best employees. This is especially important because it is the employees that interact with both the children and parents and will have the best chance to impress them enough to turn them into a loyal customer as well as to be vocal in telling their friends about their positive child care experiences.
The Customers
Naim’s Playhouse will be concentrating on two different target customer segments. The first is full-time working couples. This group is forecasted to account for 80% of Naim’s Playhouse business. This group is growing at a rate of 25% and there are over 100 potential customers in a 10 mile radius. The second group of customers are drop in, customers who use Naim’s Playhouse sporadically, whenever the need arises. This group is growing at 20% and there are 50 potential families.
The Management Team
Naim’s Playhouse will be led by two child care industry veterans, Matlida Cummings and Latoshia Washington (myself. I, Latoshia has a sales, marketing, and management background within the industry, having spent seven years at Naim’s Playhouse in-home daycare. During my tenure at my in-home day, I, Latoshia also worked for Comcast cablevision and helped grow the business from $1.5 million in yearly revenue to over $5.6 million. My partner is Matilda Washington who has a finance and administration background. Previous to Naim’s Playhouse, Matilda worked for The Children’s Learning Zone, which is one of the largest child care facility in the area. While Matilda was at The Children’s Learning Zone as the Director, she was able to increase operating profits by 14%, an increase that is generally unheard of in this industry. Naim’s Playhouse is an exciting opportunity that provides safe and secure child care to the Summerville, SC neighborhood. Naim’s Playhouse will reach sustainable profitability over the next three years, with at least 90% in sales by year three. Through a combination of well-priced services, Business 3 outstanding customer service, and a well-seasoned management team, Naim’s Playhouse will quickly gain market share and a reputation as a premier child care provider. Ratio Analysis Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 96.86% 31.01% 9.50%
Percent of Total Assets