Preschool Business Plan and SWOT Analysis

Preschool Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Preschool Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Preschool business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Preschools are very important for young children who are seeking to socialize and develop their early education. These businesses are generally able to remain profitable at all times given that many people use preschool as an alternative form of daycare once a child hits two years to three years old. Many psychologists and child developmental experts often state that preschools are a very important part of a young person’s life given that assist them with learning how to interact with other people and provides them with the necessary skills as they enter grade school. As such, these businesses are always in demand among parents and have young children. The gross margins that are generated for preschool are generally considered to be very high with gross margins ranging anywhere from 80% to 95% depending on whether or not credit cards are accepted as well as whether or not food is going to provided as part of the overall tuition. The startup costs for new preschool can range pretty significantly depending on whether or not the entrepreneur is going to secure a standalone facility in order to commence operations. Generally, these businesses have a startup cost ranging anywhere from $50,000 on up to about $1 million depending on whether or not real estate is going to be acquired in conjunction with operations. One of the things to note about owning and operating a preschool is that the operating expenses can be rather high especially as it relates to hiring appropriate teachers for the young children as well as the insurance costs relating to the potential liabilities that occur when owning a preschool. We will further discuss this matter below.

Most financial institutions and many private investors are willing to put up the necessary capital in order to launch a preschool given their highly economically secure nature, high gross margins from services rendered, and their economic stability. If an entrepreneur is looking to raise capital than a preschool business plan is almost always going to be required. As standard with any business planning document, a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page should be included in the overall documentation. As it relates to the industry research, preschools are one of the country’s largest industries as it relates to personal services. There are more than 750,000 individually owned preschools in the country and they generate in excess of $48 billion each year. The industry employs about 1.5 million people. Average annual payrolls in each of the last five years has exceeded $14 billion. It should be noted that the payroll expense is typically the highest expense associated with owning and operating a preschool.

Beyond the anticipated financial results and the industry research, a full analysis regarding the target market should be included. A special focus should be placed on the number of families within the target market, their median household income, and the number of children they have under the age of three years old. This is one of the more difficult aspects of developing a business plan given that this information is not always readily available. However, up-to-date information is almost always available through the U.S. Census as well as a number of private research firms that can provide you with this information. If an entrepreneur is struggling to find this type of information for their business plan and they may want to hire a local advertising and marketing firm which frequently maintains extensive demographics and profiles about the target market area.

A preschool SWOT analysis should be produced as well. As it relates to strengths, preschools – again – they are almost always able to remain profitable and cash flow positive. The barriers to entry are considered to be moderately high, demand is at an all-time high, and these businesses can be highly lucrative. The startup costs can be moderate depending on how the entrepreneur initially launches operations.

For weaknesses, these businesses do have very high operating cost than there always are substantial liabilities when working with young children. Proper protocols and procedures must be developed during the onset of operations to ensure that the people hired are qualified to work with young children. Additionally, expansive insurance policies need to put in place to protect against any potential liabilities.

As it relates to opportunities, these businesses can rapidly expand by establishing additional locations once their initial location reaches 100% capacity. This is really the only way that these businesses are able to expand outside of developing new programs such as summer camps and afterschool programs.

There are no known threats of impact the way that a preschool conduct operations at this time. The only true threat to these businesses are the ongoing competitive issues that they face on a day-to-day basis.

A preschool marketing plan should also be developed in order to ensure that enrollment remains near 100%. Foremost, many entrepreneurs have started preschools will develop ongoing referral relationships with elementary schools and other educational institutions in the area in order to have families to have older children be able to refer younger children to the preschool before they start grade school. This is one of the quickest ways to develop a substantial amount of his ability for the business at the onset of operations. Additionally, many entrepreneurs will also distribute flyers via mailing lists of families that have children there between the ages of two years old and six years old.

A proprietary website showcasing the preschools operations, tuition costs, hours of operation, afterschool programs, summer camp programs, and staff teachers should also be developed. This website should also have functionality that allows individuals to pay their monthly bills for preschool services while concurrently being able to monitor the children via close circuit television. This is becoming one of the very popular features of a preschool given that parents are always concerned about the well-being of their children on a daily basis.

A presence on social media is somewhat important for preschool given that many people often ask their ask their community of friends and their neighbors regarding which preschool is best for their child. As such, a plate page on social media platforms like FaceBook and Twitter will allow these businesses have expanded amount of visibility. Additionally, these businesses also were able to see reviews on their social media pages. As such, once a business has been around for a significant period of time – the reviews left by current and former parents of children that are enrolled in the preschool can be an invaluable source of business in the future.

The highly economic secure nature of preschools allows these businesses to remain profitable at all times while producing a substantial amount of cash flow. These businesses typically have earnings before tax is of 20% of revenues. As such, these businesses can be very lucrative provided at the entrepreneur maintains fiscally sound protocols and procedures that allows these businesses to thrive in any economic climate.