2. Business Planning It’s the Business…

3. Aims of the Training The role of the Childcare Development Service Why you need a business plan The contents of your business plan Getting started on your business plan Useful contacts

4. The role of the Childcare Development Service To support you in all aspects of childcare and your business including: –Promoting your business to the public –Advice on funding and grants –Guidance and funding for staff training –Help and guidance on the ofsted minimum standards

5. –Assistance in the marketing of your business –Guidance on implementing business plans and financial forecasts –Helping you to run a viable business Working in partnership with other organisations in order to give you the best service possible, such as: –Pre-school Learning Alliance –Early Years Service –SoHBAC –Voluntary Action / CVS

6. Why do you need a Business Plan? Your business plan provides a “road-map” for implementing and achieving your business aims and objectives. It is essential for monitoring and evaluating your business.

7. It is essential for supporting any funding or grant application. It will be required by banks in order to allow overdraft requirements or loans. Most importantly, it indicates to you as a business that you are running a long-term sustainable business.

8. The contents of a Business Plan Introduction Business activity Business aims and objectives Market research Key people Training needs analysis

9. Staff Recruitment Marketing and publicity Quality Equipment Financial forecasts Pricing policy Sustainability

10. Introduction Legal status and trading name Your contact name and details if different Background

11. Business Activity An overview of your business Opening times - days, weeks, hours etc. The number of places available - full-time, part- time, flexi-places The number of children in each age group The fee structure*

12. Business Aims and Objectives Mission, for example: –what is your overall aim for the business? Aims, for example: –what are your aims for the company, such as “provide a high quality childcare service”. Objectives, for example: –what are your short-term, medium-term and long-term goals for the company, such as “achieve a quality assurance award by March 2003”.

13. Market Research Ongoing activity –What is the evidence of demand? Who are your customers? What are they expecting from your service? Do you give them the service they require? Evaluate the service that you give. Make improvements on a continuous basis.

14. SWOT Analysis - what are your strengths, weaknesses, opportunities and threats? What is your unique selling point? Competitors? –Who are they? –Where are they? –What do they charge? –What is their service like? –How well are they doing?

15. Key People List all staff including their qualifications, training, and experience. List all committee members (if applicable) including any specialist skills that they have and the committee role that they have. Knowledge and additional skills Other key people Organisational chart (optional)

16. Training Needs Analysis Identify any training and qualifications for you or your staff which would improve your business potential such as: –Book keeping –Marketing –Cashflow forecasting –Health and Safety –Policy Writing –Child protection

17. Staff Recruitment Due to National Childcare Strategy, the industry will require a major expansion of the childcare workforce. Staff are your greatest asset (and the most expensive)! Staff planning is essential to get the right person for the job.

18. They will need the right: –knowledge –skills and qualifications –experience –personality and attitude –commitment Retention will also be crucial. Ensure staff feel valued.

19. Marketing and Publicity Marketing Plan –How do you plan to market your business? –When do you plan to do your marketing? –What resources are you going to need including people? –How much is it going to cost you and how do you plan to pay for it?

20. Quality Continuous improvement. Key to attracting customers. First impressions are everything! Quality: –Environment –Well trained staff –Quality of play –Facilities and equipment

21. Equipment List all supplies and equipment needed to run your business divided into: –What do you already own and what is it’s value? –What do you still need and how much will it cost? –Don’t forget business stationery such as letterhead.

22. Financial Forecasts List all expenditure that is spent running the business such as: Wages Rent Heat/Light Telephone Postage Equipment Insurances Advertising

23. List all sources of income such as: –Fees –Grants (such as 3 year old funding) –Fundraising –Funding Work out your pricing policy –How is your price determined? –Are you covering all your costs? –Do you know what your break-even point is?

24. Pricing Policy Work out your break even point: –Annual running costs=Weekly running Number of weeks operating costs –Work out the average income per child –Weekly running costs= Break even point Average income per child

25. Forecast for at least three years taking into account any new developments planned. Review on an ongoing basis to monitor. Produce a cashflow forecast taking into account: –Seasonal variations in sales and overheads, such as heating and lighting in winter –Delays in income –Spread costs if possible –Being realistic

26. Sustainability Your business plan and cashflow forecasts will be one of the key things to sustainability. View your business with a long-term strategic approach. Keep planning, monitoring and evaluating your business. Demonstrate quality.

27. Always explore new ways of working and diversify if necessary. Implement a sound funding strategy. Implement a continuous marketing strategy. Recruit and train the right staff. Regularly review your fees policy. Last but not least, use the help available!

28. Useful Contacts