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Starting a Day Care Business

by Zhaleh
03/24/2014    2:33am

Oh wow this was broken down very nicely. I think i will show my wife this and see what she says. She has been contemplating the idea for a while


2

by BizPlan+ 06/11/2013 2:15am

Hello - Below numbers should give you some ballpark ideas - the numbers may vary based on your location and situation. I used California as an example.

Good luck.

------------------ Daycare Business Startup / Recurring Cost / Goal ---------------------

Business - Startup Inventory:
Furniture: $3,000 - $4,000
Kitchen (new appliances, refrigerator, stove, oven): $4,000 - $8,000
Toys and Books: $1,000 - $2,000
Computer Lab for children - good impression for parents: $400 - $500 per
computer - Est. $6,000
Playground Equipment: $4,000 - $6,000
Video Surveillance Cameras: $1,000

Total Startup Inventory: $19,000 - $27,000

Other Initial Cost:
$2,000 - $4,000 Commercial Lease Deposit

Governmental (one time):
Initial license fees, state filing fees: $1,000
CA Inc. filing: $500 - $1,000

Governmental (recurring):
CA Minimum Inc. Tax: $800 per year
State license fees: $200 per year
County Assessor's fees: $200 per year

Construction / Upgrades (one time)
Remodeling: $3,000 - $5,000

Lease & Utilities (recurring)
Commercial Lease: $2000 - $4000 per month
Utilities: $500 per month
Insurance: $300 - $400 per month
Security Alarm: $50 per month

Employee (recurring)
Office / Assistant: $3,500 per month
Teacher: $4,000 - $5,000 per month

Marketing, Branding (one time):
Logo Design: $500 - $1,000
Business Sign: $500 - $1,000
Business Cards: $500 - $1,000
Website Cost: $2000 - $3,000
SEO: $350 - $750

Marketing, Branding, Advertising (recurring):
Flyers: $300 - $500 (the most cost effective way to advertise - it can produce a good result)
Local publishing - advertising: $300 - $500 per month
Mailing (Postcards / Standard Letter): $400 - $800 per month
SEM / Online Directory Marketing: $60 - $150 per month

Startup Cost range: $29,350 - $44,750
Reserve to cover monthly recurring up to 6 month: $24,000 - $42,000
Funding Requirement: $50,500 - $86,750

Monthly Recurring Cost:
Monthly Recurring without Employee: $4,010 - $7,000
Monthly Recurring with Employee: $11,510 - $15,500

Business Goal - Monthly Gross Sale:
Going rate for care per child: $600 - $800 per month
6 Month - 15 children - $9,000 - $12,000 Gross sale per month
12 Month - 30 children - $18,000 - $24,000 Gross sale per month

Business Goal - Monthly Net - without employee:
6 Month - 15 children - approx. low: $2,000 - $5,000 - high: $5,000 - $8,000 per month
12 Month - 30 children - approx. low: $11,000 - $14,000 - high: $17,000 - $20,000 per month

Business Goal - Monthly Net - with employee:
6 Month - 15 children - approx. low: -$6,500 - -$2,500 - high: $500 - $3,500 per month
12 Month - 30 children - approx. low: $2,500 - $6,500 - high: $8,500 - $12,500 per month

by Bob-Fusion 03/24/2014 2:33am

Oh wow this was broken down very nicely. I think i will show my wife this and see what she says. She has been contemplating the idea for a while

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