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Table of Contents

Acknowledgment………………………………………………………………………………………………………….03

Executive Summary……………………………………………………………………………………………………….04

Introduction………………………………………………………………………………………………………………….05

Market Analysis…………………………………………………………………………………………………………….07

Marketing……………………………………………………………………………………………………………………..09

Strategy implementation summary………………………………………………………………………………11

Management and Human Resource……………………………………………………………………………..12

Financial……………………………………………………………………………………………………………………….14

Appendices…………………………………………………………………………………………………………………..17

References……………………………………………………………………………………………………………………22

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Acknowledgment

I am heartily thankful to my supervisor, …………………………….., whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject.

Lastly, I offer my regards and blessings to all of those who supported me in any respect during the completion of the project.

Fahad

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Executive Summary

First Step Day Care Nursery is a start-up organization that provides day care services to central London. This mid-sized child care facility serves children from three months to 12 years of age. Their services are safe and secure, providing the parents with an excellent place where their children can be taken care of.

With inflation continuing to increase every year, it has become necessary for more families to rely on two incomes to survive. In turn, this increases the demand for child care facilities.

The center is located at 17 Kennington Road, Central London. It is a 2000 Sq. ft. two Story house.

With lawn, 4 Play Rooms with toys and a computer lab. The venture is run by its owner Mr. Fahad under the supervision of his father Who has 10 years’ experience of running a day care center. The center is licensed to provide day care facility to 60 students between the ages of 6 months to 12 years. An additional facility of hostel is available for 10 students between the ages of 7 to 12.

It is estimated that the start-up costs will be ₤3,000 (including legal costs, advertising, and related expenses). An additional amount of ₤67,000 will be required as start-up assets. The start-up costs are to be financed in equal portions by the owners' personal funds and by a ₤30,000 5-year loan.

First Step Child care competitive edge is the facility's efforts in obtaining all appropriate licensing and certifications. Additionally, Being one of the few child care centers First Step gains a competitive edge for gaining Muslim buyers.

Introduction

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A.  History of Child Day Care Industry

Day care appeared in France about 1840, and the Société des Crèches was recognized by the French government in 1869. Originating in Europe in the late 18th and early 19th century, day cares were established in the United States by private charities in the 1850s and then due to job opportunities for women this industry has spread all over the world.

The daily life of preschool children in the United Kingdom has changed dramatically in the last 20 years. Because mothers of young children are far more likely to work than at any other time in the past, mother and child now spend much less time at home. Furthermore, far more relatives particularly women, also are employed, and have less time to spend with nephews, nieces, young cousins, and grandchildren.

The UK has a wide range of childcare offered, including child minders, day nurseries, playgroups and can also include pre-school education at school. It is regulated by OFSTED (CSSIW in Wales), which operates the application and inspection process for the sector. The sector is primarily funded by the parents, however the Nursery Education Grant (pre-school funding) can be used at some day nurseries, playgroups and schools.

B. About First Step Child Day Care

I. Current Status of Company

Our Children’s Centers provide high quality child care/early education programs for children from infants to 12 years of age. Our Children's Centres are licensed by the Ministry of Children and Youth Services. First Step Child care is a Private Limited Company

II. Company Vision

To achieve excellence in the care of children and promoting Islamic way of living to its highest level.

III. Mission

First Step Day Care will provide the unique environment in which to develop your child's Islamic awareness, emotional understanding, intellectual, physical and social skills.  First Step Day Care will provide a secure, caring and stimulating environment where every child feels confident, secure and valued as an individual.

Children will learn through their play with a balance of free choice and adult led experiences. Each child will be encouraged to progress, learn and develop a sense of self

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with the aid of play activities and equipment made available to them in a vibrant and motivating environment.

The happiness, well-being and education of each child will be utmost importance to the staff, therefore Green Nursery will work in partnership with parents and the local community hence identifying your child's needs.

Quran, Sunnah and Islamic values will be main source of our Curriculum. The curriculum will be responsive to the needs and abilities of each and every child, incorporating positive opportunities for all Muslim children coming from anywhere in the world.

IV. The Service Concept

First Step Day Care offers child care services for ages from 3-month infants to 12 years old.

Hours of operation are from 6:30 A.M. to 7:30 P.M., Monday through Friday. A 24/7 hostel is also available for children of 7 to 12.

V. Business Objectives

By giving Muslim woman an excellent opertunity of child care in Islamic environment we can make possible for her to gain peace of mind and become more productive citizen of the country.

Market Analysis

a. Overall Industry or Market

England being industrial state houses many child day care centers. There are more than 100 companies operating in London alone. Among these, London Bridge Child Care Services Inc. London Children’s connection Inc. and YMCA are more prominent. These corporations have many branches in various parts of London city and its outskirts. Thousands of students register to these organizations each year in different programs.

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b. Specific Market Segment

First Step Child Care will cater the Muslim community of the country. 2.5% population of Britain is Muslim and this percentage is even greater in London. The Muslim population in Britain has grown by more than 500,000 to 2.4 million in just four years, according to official research collated for The Times. Immigration, a higher birthrate and conversions to Islam during the period of 2004-2008 are the main reasons of this increase.

Muslim woman who come with their husbands and families usually don’t work. They spend time with their children as they are reluctant to put their children in traditional day learning centers. If there is an Islamic day care center providing quality services keeping Islamic values alive, they would definitely let their children in day care and does work their selves.

c. Competition

Among hundreds of day care centers there are only a few which provide dedicated services to Muslims. Oakwood Early Years, Yasmin Beg Hall and Green Nursery School are prominent day care Centers dedicated to Muslim children. These institutes are not enough to cater the growing need of the Muslim population which is growing day by day.

d. Keys to Success.

Keys to success for the company will include:

1. Maintaining a reputable and untarnished reputation in the community.

2. Quality care.

3. Competitive pricing.

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4. Flexible hours

5. Promoting Islamic values

6. Less competition in the Islamic segment.

Marketing

a. Market demographic

London has a relatively young population, the highest proportion of non-white British ethnic origin, with a constant inflow of new migrants from abroad.

The region received 160,000 international migrants in 2007, equivalent to 2 per

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cent of its population. Migration to London from the rest of the UK accounted for a further 160,000 new residents. About 340,000 people left London in 2007 − 250,000 went to other parts of the UK and 90,000 to other countries. This large annual turnover resulted in a small net reduction in the region’s population of 12,000.

London is the second largest region in terms of total population, accounting for 12 per cent of the UK total. There were 7.6 million residents in 2007, an increase from 7.3 million in 2001, with the average annual increase working out at nearly 40,000. Based on 2006 population projections, the population will increase by 15 per cent to 8.6 million by 2026.

The overall population density of London was 4,800 people per square kilometre, but there were considerable differences between the boroughs. The most densely populated boroughs were Kensington and Chelsea with nearly 15,000 people per sq km, and Islington with nearly 13,000.

London’s age structure also differs from the UK’s , the population tending to be younger than in the country as a whole. In 2007, 7.0 per cent of the population were children aged under 5, compared with 5.9 per cent in the UK, and 44 per cent were in the age band 20 to 44 compared with only 35 per cent of the UK population.

The Muslim population in Britain has grown by more than 500,000 to 2.4 million in just four years, according to official research collated for The Times.

The population multiplied 10 times faster than the rest of society, the research by the Office for National Statistics reveals. In the same period the number of Christians in the country fell by more than 2 million.

b. Market Needs

With inflation continuing to increase every year, it has become necessary for more families to rely on two incomes to survive. In turn, this increases the demand for child care facilities. We do not foresee this trend turning in the near future, and intend to capture a share of this market. As our target is Muslim community which is increasing day by day there lies a huge demand for a Muslim specific day care center.

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c. Competition

There are over 200 child care providers in the local area. The larger commercial chain child care centers, such as London Bridge Child Care Services Inc. London Children’s connection Inc. and YMCA, have a majority of the market share. These larger chains

compete well because of a good reputation among the consumer market. We have indirect competition with these day care centers.Oakwood Early Years, Yasmin Beg Hall and Green Nursery being Muslim specialized day care center are in direct competition with us. Additionally some companies and universities also have inhouse child care centers which also take some market share.

Strategy and Implementation Summary

First Step Child Care will succeed by offering its clients' children a safe and secure care environment, and close personal attention. The goals of the center are dual-sided: to help Parents feel good about the care of their children, and to make it a safe, educational, and fun experience for the child. Being specialized center for Muslims it will incorporate teaching of Quran and hadith into young Muslim minds.

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5.1 Competitive Edge

First Step Child care competitive edge is the facility's efforts in obtaining all appropriate licensing and certifications. Additionally, Being one of the few child care centers First Step gains a competitive edge for gaining Muslim buyers.

5.2 Sales Strategy

First Step Child Care will make a significant profit through the excellent care of children. Even though First Step Day charges less, the company will see profit within the first year due to beneficial word-of-mouth advertising. The company expects todouble its' clientele every six months, for the first 18 months.

Management And Human Resource

The opening management team of First Step Day Care will consist of the founder, a silent partner, a campus director and administrative assistant.

As the college grows, gradual investments in the instructional staff will be made over the next 3 years - beginning in June 2012or as otherwise dictated by enrollment.

Organizational Structure

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First Step Day Care depends on the founder, Campus Director and VP of Education Operations for management in the following roles:

Management Team

Owner/President – Mr Shah Fahad.  The Owner/President will have overall fiscal responsibility, ensuring that the business is financially sound and attains its planned goals. 

MBA in Marketing For university of Hull Advanced degree in Computer Science Highly energetic and motivated

Industry Consultant – Shah Faisal The Industry Consultant will be relied upon for her industry expertise, providing valuable insight to rules, regulations and governmental programs that may benefit the college.

10 Year owner of Fat Albert Day Care Center He is father of the owner Shah Fahad. Licensed child care facility owner Vast knowledge of Hillsborough County Child Care Licensing requirements and

government supplemental programs

Campus Director - Muhammad Harris.  The Campus Director will be responsible for daily operations, curriculum oversight and management of all instructors, caregivers and tutors.

B.S.  Degree in Education 2 years facilities administration/support experience with the University of Hull 2+ years Regional Operations Manager 5+ years managerial/supervisory experience 3+ years grant writing, technical writing, workflow and process documentation

experience

VP of Education Operations –Mrs. Shaista Rani

Collegiate-level Public Relations education 5+ years customer service experience 8+ years child care industry experience (her mother owns Fat Albert Daycare) Extensive theatre and dance background

Personnel Plan

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As the Personnel Plan shows, the company expects to make gradual investments in care Personnel over the next three years, always keeping in mind the number of children in need of care at the center.

Table: Personnel

Personnel Plan 2010 2011 2012

Managers (2) ₤ 72,000 ₤ 80,000 ₤ 84,000Care Staff ₤ 138,000 ₤ 252,000 ₤291,000Other ₤ 0 ₤ 0 ₤ 0Total People 10 12 13Total Payroll ₤ 210,000 ₤ 332,000 ₤375,000

Financial Data

Financial Data

a. Startup Summary

Start-up

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Requirements

Start-up Expenses Legal ₤1,000Brochures ₤350Stationery etc. ₤100Activity Supplies ₤250Food Preparation Supplies ₤300First Aid Supplies ₤200Cleaning Supplies ₤150Nap Time Bedding ₤250Other ₤400Total Start-up Expenses ₤3,000

Start-up Assets NeededCash Balance on Starting Date ₤67,000Other Current Assets ₤0Total Current Assets ₤67,000

Long-term Assets ₤0Total Assets ₤67,000Total Requirements ₤70,000

Funding

InvestmentOwner - Child ₤20,000Onwer - Freelancer ₤20,000Other ₤0Total Investment ₤40,000

Current LiabilitiesAccounts Payable ₤0Current Borrowing ₤0Other Current Liabilities ₤0Current Liabilities ₤0

Long-term Liabilities ₤30,000Total Liabilities ₤30,000

Loss at Start-up (₤3,000)Total Capital ₤37,000Total Capital and Liabilities ₤67,000

b. Sales Forecast As the following table shows, the company plans to deliver sales of

approximately ₤262,000 in the first year, ₤515,000 in the second year, and ₤674,000 in the third year plan implementation.

Table: Sales Forecast

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Sales Forecast

Unit Sales 2010 2011 2012

Full-Time Child - Month 640 1,200 1,500

Drop-In Child – Hour 1,875 3,500 4,000

Other 0 0 0

Total Unit Sales 2,515 4,700 5,500

Unit Prices 2010 2011 2012

Full-Time Child - Month ₤400.00 ₤420.00 ₤441.00

Drop-In Child - Hour ₤3.00 ₤3.15 ₤3.31

Other ₤0.00 ₤0.00 ₤0.00

Sales 2010 2011 2012

Full-Time Child - Month ₤256,000 ₤504,000 ₤661,500

Drop-In Child – Hour ₤5,625 ₤11,025 ₤13,240

Other ₤0 ₤0 ₤0

Total Sales ₤261,625 ₤515,025 ₤674,740

Direct Unit Costs 2010 2011 2012

Full-Time Child - Month ₤10.00 ₤11.00 ₤12.00

Drop-In Child – Hour ₤0.75 ₤0.80 ₤0.90

Other ₤0.00 ₤0.00 ₤0.00

Direct Cost of Sales 2010 2011 2012

Full-Time Child - Month ₤6,400 ₤13,200 ₤18,000

Drop-In Child - Hour ₤1,406 ₤2,800 ₤3,600

Other ₤0 ₤0 ₤0

Subtotal Direct Cost of Sales ₤7,806 ₤16,000 ₤21,600

c. Break-even Analysis

The Break-even Analysis is based on the average of the first-year figures for total sales by Units, and by operating expenses. These are presented as per-unit revenue, per-unit cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk.

Table: Break-even Analysis

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Break-even Analysis:Monthly Units Break-even 222Monthly Revenue Break-even $23,063Assumptions:Average Per-Unit Revenue $104.03Average Per-Unit Variable Cost $3.10Estimated Monthly Fixed Cost $22,375

Break-even Analysis

$30,000$20,000 $10,000 $0($10,000) ($20,000)($30,000)

0 80 16 240 320 400

Monthly break-even point

d. Projected Profit and Loss

As the Profit and Loss table shows, the company expects to continue its steady growth in profitability over the next three years of operations.

Pro Forma Profit and Loss 2010 2012 2013

Sales $261,625 $515,025 $674,740Direct Cost of Sales $7,806 $16,000 $21,600Other Production Expenses $0 $0 $0Total Cost of Sales $7,806 $16,000 $21,600

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Gross Margin $253,819 $499,025 $653,140Gross Margin % 97.02% 96.89% 96.80%

Expenses:Payroll $210,000 $332,000 $375,000Sales and Marketing and Other Expenses $0 $0 $0Depreciation $0 $0 $0Leased Equipment $1,800 $2,000 $2,200Certifications & Inspections $2,400 $2,500 $2,600Utilities $1,800 $2,000 $22,000Insurance $3,000 $3,600 $42,000Rent $18,000 $20,000 $25,000Payroll Taxes $31,500 $49,800 $56,250Other $0 $0 $0Total Operating Expenses $268,500 $411,900 $525,050Profit Before Interest and Taxes ($14,681) $87,125 $128,090Interest Expense $2,610 $1,780 $780Taxes Incurred $0 $25,604 $38,193Net Profit ($17,291) $59,742 $89,117Net Profit/Sales -6.61% 11.60% 13.21%Include Negative Taxes FALSE TRUE TRUE

$4,000

$2,000

$0

($2,000)

($4,000)

($6,000)

($8,000) ($10,000)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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Appendix I

Sales Forecast

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Appendix ii

Personnel Plan

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Appendix III

General Assumptions

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References

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