Preschool Business Plan [Sample Template]
By: Author Tony Martins Ajaero
Home » Business Plans » Education Sector » Schooling
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 2023. The industry is expected to increase by 4.6% in 2023.
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Steps on How to Write a Preschool Business Plan
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.
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 Secretary) 10 Percent Shares.
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 2023.
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 2023 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.
- 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.
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.
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.
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.
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.
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.
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.
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.
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Preschool Business Plan
If you are planning to start a new Preschool business, the first thing you will need is a business plan. Use our sample business plan created using upmetrics business plan software to start writing your business plan in no time.
Before you start writing your business plan for your new preschool business, spend as much time as you can reading through some examples of education-related business plans .
Reading sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.
We have created this sample preschool business plan for you to get a good idea about how perfect a business plan should look and what details you will need to include in your stunning business plan.
Preschool Business Plan Outline
This is the standard business plan outline which will cover all important sections that you should include in your business plan.
- Mission statement
- Vision statement
- Keys to Success
- 3 Year profit forecast
- Startup cost
- Management Team
- Personnel Table
- Funding Required
- Products and Services
- Market Overview
- Market Trends
- Target Market
- Product/Service
- Word of Mouth
- Community Involvement
- Public Transport Advertising
- Web Plan Summary
- Sales Strategy
- Personnel Plan
- Important Assumptions
- Brake-even Analysis
- Profit Yearly
- Gross Margin Yearly
- Projected Cash Flow
- Projected Balance Sheet
- Business Ratios
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Download a sample preschool business plan
Need help writing your business plan from scratch? Here you go; download our free preschool business plan pdf to start.
It’s a modern business plan template specifically designed for your preschool business. Use the example business plan as a guide for writing your own.
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Preschool Business Plan
Starting a preschool business is not for the faint of heart. Even if you love the idea of working with children, reality often differs dramatically. The stress of the actual operations is even wildly different from the stress you get just preparing everything from the ground up. To help you stay on top of everything, you need a proper preschool business plan on hand. Documents like a kindergarten business plan , and a play school business plan, among others, will help you survive the initial onslaught of the endeavor while guiding you for months or even years to come. Scroll on to learn more and to find some of the best preschool business plan examples anywhere.
Preschool Business Plan Examples & Templates
1. preschool business plan template.
- Google Docs
Size: A4 & US
2. Simple Preschool Business Plan
Size: 574 KB
3. Preschool Business Plan Sample in PDF
Size: 207 KB
4. Free Preschool Business Plan
Size: 318 KB
5. Preschool Business Plan Template in PDF
Size: 164 KB
6. Basic Preschool Business Plan
Size: 121 KB
The Importance of a Preschool Business Plan
Like any business, a preschool comes with numerous requirements for you to meet. You will need funding, marketing strategies, materials, and equipment . With all of those variables mixing into one big goal, you need a guide. You will need something to help attract investors if necessary. This is where a preschool business plan comes into play. Sure, you can still plan things out if you don’t have one. However, there is a detail of organization that you won’t get using anything else.
Tips for Writing a Preschool Business Plan
Those with experience in writing business plans will know all about the nuanced nature of the document. Whether you are looking to create a non profit daycare business plan or one that’s for profit, the little details and the approach are all bound to change. Rather than get a free sample school business plan, here are some tips to help you in the event that you need to write your own business plan from scratch.
Tip 1: Keep it Short
It benefits you more to keep things as short as possible. Yes, there are many aspects of the preschool business to plan for. However, your expression of those plans do not have to be overly long or complicated. Be concise with your plan and you can be guaranteed that your readers will find it much more effective.
Tip 2: Keep Your Audience in Mind
With preschools, your audience should be parents with children of a specific age range. It is important to take note of that because what you offer will center around them. Your strategies, your branding , your methods, and the rest of your plans depend on your audience. Keep them in mind when planning for greater odds of success.
Tip 3: Don’t Let Fear Hold You Back
Starting any kind of business is going to be daunting. There’s no shame in admitting that some aspects of your endeavor may feel intimidating at times. However, you can’t allow that to hold back your plans. You need to recognize your goals and objectives so that you can plan around them. Never plan around the fears that grip you.
Tip 4: Be Timely and Realistic
As much as we like to say that you should shoot for the stars, it would be bad advice to leave all pragmatism behind. Your goals and objectives need to be firmly rooted in reality. Don’t let fear hold you back, but at the same time, you must acknowledge where your capabilities remain. Once you learn that, be sure to set a timeline for yourself. That way, you can ensure greater productivity.
What are the six components of a business plan?
First, there is the executive summary , followed by sections that dictate the opportunity and the execution. From there, you have the company and management, the financial plan, and lastly, the appendix.
Is it acceptable to have a professional write your business plan for you?
If writing a preschool business plan is too much for you, or if you lack the time, then you can always recruit a business consultant to help you with it.
How long should my business plan be?
The proper answer for that is as long as you need it to be. It does not have a required number of pages, as long as everything necessary for the execution of your startup is included and explored adequately.
Learning about how to write a proposal for a daycare center or finding the best preschool business plan ppt templates are among the things anybody should do before anything else. By researching the best methods of moving forward, you can avoid the pitfalls and accomplish your desired goals sooner than anticipated. Having learned as much as you can from this article, you may take your new knowledge and apply it when you decide that starting a preschool is your calling. Just remember to choose wisely and act boldly when that time comes!
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