Learning Center Business Plan [Sample Template]
By: Author Tony Martins Ajaero
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Are you about starting a learning center company? If YES, here is a detailed sample learning center business plan template & FREE feasibility report.
A learning center is a self-contained section of the classroom in which students engage in independent and self-directed learning activities. Learning centers provide students with exciting and interesting experiences to practice, enrich, reteach, and enhance their learning.
These types of centers are filled with art materials, books, and other instructional tools. It is important to state that there are different types of learning centers; learning centers can vary a great deal when it comes to their design and the results they want to achieve.
But for the purpose of this business plan, we will concentrate on early childhood learning center. Lastly, there are no barriers as regards those who can start a learning center in the united states; educationist, philanthropists, parents, community leaders, social entrepreneurs, religious organizations, businesses, teachers, school districts, and towns can start their own learning centers.
Having said that, if you interested in starting your learning center, then here is a comprehensive learning center business plan template that will give you the needed guide.
A Sample Learning Center Business Plan Template
1. industry overview.
The Early Childhood Learning Centers industry comprises establishments that provide basic skill and education courses for children between the ages of two and five.
Basically, establishments in this industry, both public and private, provide basic preparatory education courses for children aged two years to those reaching the compulsory school-entry age. This industry excludes establishments that primarily service adults and provide child-teaching services.
Operators offer different programs, which vary by age. For younger children, typically those between the ages of two and three, programs focus on developing early math, reading and interpersonal skills. Children between three and five years old participate in a variety of activities and subjects to prepare them for grade school.
Recent reports released by IBISWORLD shows that over the five years to 2018, revenue fell early in the period as a result of low per capita disposable income levels and the decline in the labor force participation rate of women. However, the unemployment rate has declined each year since 2013.
Statistics has it that The Early Childhood Learning Centers industry in the United States of America, is worth $11 billion, with an estimated growth rate of 2.1 percent annually between 2013 and 2018. There are about 19,482 registered and licensed (accredited) early childhood learning centers scattered all around the United States of America and they are responsible for employing about 247,365 people.
Aside from Bright Horizons Family Solutions Inc. which has the largest enrollments, no other early childhood learning center can boast of dominating the market; every player can comfortably compete in the industry.
It is important to state that the barriers to entry into the Early Childhood Learning Centers industry are high. As a matter of fact, new entrants find it difficult to establish themselves. So also, the reputation of the early childhood learning center is of utmost importance, as the center that has a good history of getting students into prestigious colleges often have the best reputations hence good enrollments.
Reputation indeed is imperative to parents’ decisions when shopping for early childhood learning centers. This is because the quality of education cannot be assessed until after it is complete.
Even though this might seem like a highly competitive industry, the industry is still pretty much open for people to come in and compete. As a matter of fact, if you conduct your research and feasibility studies very well before starting your own center, you are likely going to struggle less to make headway in the industry.
2. Executive Summary
Little Rock® Community Learning Center, Inc. is an early childhood learning center that will be located in a well – populated residential estate in Little Rock – Arkansas, United States of America. We are a standard early childhood learning center that will offer different programs, which will vary by age.
For younger children, typically those between the ages of two and three, the programs will focus on developing early math, reading and interpersonal skills. Children between three and five years old will participate in a variety of activities and subjects to prepare them for grade school.
Little Rock® Community Learning Center, Inc. is a result driven early childhood learning center that provides broad-based learning approaches and experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.
We will offer professional teaching services in a highly secured and conducive learning environment. We will ensure that we work hard to meet and surpass all our students’ educational goals whenever they enroll in our center.
At Little Rock® Community Learning Center, Inc., our students’ overall best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hire professional teachers in various subjects who are passionate at imparting knowledge to students.
We have plans in the future to also offer learning platforms to people with both learning disability and physical disability (especially the blind, the dumb and the deaf).
Our overall business goal is to position our early childhood learning center to become the leading brand in the industry in the whole of Little Rock – Arkansas, and also to be amongst the top 10 learning centers in United States of America within the first 20 years of operation.
Little Rock® Community Learning Center, Inc. is founded by Dr. (Mrs.) Becky Steve – Carson and her immediate family members. She is an educationist par excellence and she has won many awards in the educational sector in the United States.
Dr. (Mrs.) Becky Steve – Carson has both the academic qualifications and experience to run an early childhood learning center that can favorably compete with other leading early childhood learning centers not only in Little Rock – Arkansas, but also throughout the United States America.
3. Our Products and Services
Little Rock® Community Learning Center, Inc. is going to offer varieties of early childhood learning services in the United States of America. Our intention of starting our early childhood learning center is to soundly educate kids in various subjects and of course to make profits from the industry. Our service offerings are listed below;
- Planning and implementing a diverse curriculum for children
- Developing activities to introduce math and literacy concepts
- Providing child and infant daycare to an extent
- Operating Head Start programs
4. Our Mission and Vision Statement
Our vision is to build a highly competitive early childhood learning center that will become the number one choice for both parents and students in the whole of Little Rock – Arkansas.
Our mission is to provide professional and conducive learning environment to students at different levels of learning. Our overall business goal is to position Little Rock® Community Learning Center to become the leading early childhood learning center in the industry in the whole of Little Rock – Arkansas, and also to be amongst the top 10 early childhood learning centers in the United States of America within the first 20 years of operation.
Our Business Structure
It is a known fact that the success of any business is to a large extent is dependent on the business structure of the organization and the people who occupy roles in the organization. Little Rock® Community Learning Center, Inc. will build a solid business structure that can support the growth of our early childhood learning center.
We will ensure that we hire competent hands (teaching and non – teaching staff members) to help us build the early childhood learning center of our dream.
The fact that we want to become one of the leading early childhood learning centers in the industry in the whole of the United States of America makes it necessary for our organization to deliberately build a well – structured business from the onset.
We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time. Below is the business structure that we will build Little Rock® Community Learning Center, Inc.;
- Head of The Early Childhood Learning Center (School Proprietress)
Early Childhood Learning Specialist
- Client Service Executive/Front Desk Officer
5. Job Roles and Responsibilities
Head of the Early Childhood Learning Center/School Coordinator:
- Responsible for providing direction for the center
- Responsible for handling high profile clients and deals
- Responsible for fixing fees and signing business deals (partnership)
- Responsible for signing checks and documents on behalf of the early childhood learning center
- Coordinates all arms of the center
- Evaluates the success of the center
- Reports to the board
- Responsible for overseeing the smooth running of HR and administrative tasks for the early childhood learning center
- Designs job descriptions with KPI to drive performance management for tutors (teachers)
- Regularly hold meetings with key stakeholders (parents and member of the school board) to review the effectiveness of the schools’ Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily activities of the early childhood learning center.
- Effectively teach subjects as assigned by the school administrator
- Accesses the progress of students under their care
- Ensures that students abide by the rules and regulations of the center
- Contributes his/her quota towards growing the early childhood learning center
- Receives complaints from parents and channel it to the appropriate quarters
- Handles any other duty as assigned by the school administrator.
- Identifies, prioritizes, and reaches out to new students, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the school
School Bursar (Accountant)
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides management with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Little Rock® Community Learning Center, Inc.
- Serves as internal auditor for Little Rock® Community Learning Center, Inc.
Client Service Executive
- Welcomes/receive parents and students by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with parents and students (e-mail, walk-In center, SMS or phone) provides a personalized customer service experience of the highest level
- Through interaction with parents and students on the phone, uses every opportunity to build parent’s interest in the schools’ services
- Consistently stays abreast of any new information on the organizations’ promotional campaigns etc. to ensure accurate and helpful information is supplied to parents and students when they make enquiries
- Receives parcels / documents for Little Rock® Community Learning Center, Inc.
- Distributes mails in the organization
- Handles any other duties as assigned by the School Administrator.
- Responsible for cleaning the school facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Cleanses both the interior and exterior of the school facility
- Handles any other duty as assigned by the school administrator
- Ensures that the school facility is secured at all time
- Controls traffic and organize parking
- Gives security tips to staff members from time to time
- Patrols around the building on a 24 hours’ basis
- Submits security reports weekly
- Any other duty as assigned by the school administrator.
6. SWOT Analysis
Little Rock® Community Learning Center, Inc. engaged the services of a core professional in the area of business consulting and structuring with bias in the educational sector to assist us in building a well – structured early childhood learning center that can favorably compete in the United States.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Little Rock® Community Learning Center, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Little Rock® Community Learning Center, Inc.;
As an early childhood learning center, our core strength lies in the power of our team; our workforce. We have a team with excellent qualifications and experience in the educational sector especially when it comes to working with toddlers.
We are well positioned in a community with the right demography and we know we will attract loads of students from the first day we open our doors and welcome students for enrollment.
As a new early childhood learning center in Little Rock – Arkansas, it might take some time for our organization to break into the market and gain acceptance via reputation in the already saturated education cum Early Childhood Learning Centers industry; that is perhaps our major weakness.
Demand for day-care services is positively correlated with the number of children aged nine and younger. Increase in the number of children younger than nine, particularly those younger than five, boost demand and profitability for private centers.
The number of children under the age of nine is expected to increase slightly in 2018, representing a potential opportunity for the industry.
The labor force participation rate of women, especially mothers, has a major effect on demand for child-care services. The participation rate is influenced by many factors, including social values, expectations relating to child care, the growth rate of employment, after-tax wages and child-care costs.
When the female workforce participation rate rises, it tends to increase demand for child-care services. The labor force participation rate of women is expected to increase slightly in 2018, posing a threat to the industry.
7. MARKET ANALYSIS
- Market Trends
The trend in the early childhood learning center business is that the keys to attracting students is the educational performance of their students. Any early childhood learning center that has good records will always thrive.
The demand for early childhood learning centers is driven by the fact that most public cum government owned schools cannot accommodate every student in a given geographical location. In some cases, students with special needs cannot cope in public schools hence the need for early childhood learning centers.
Early childhood learning centers are overwhelmingly located in urban areas. Over one-half of all early childhood learning center students reside in urban environments, compared with less than one-third of students at traditional public schools.
Growth in the percentage of the overall population living in urban areas increases demand for early childhood learning centers. The US urban population is expected to increase in 2018, representing a potential opportunity for the industry.
The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of education. The areas you would need to spend heavily on is in ensuring that your school is up to standard, your advertisements, and on insurance policy cover.
Lastly, it is trendier to find early childhood learning centers engaging in extra – curricular activities and as a matter of fact, an early childhood learning center that thrives in sports can leverage on that to attract students who are sports inclined.
8. Our Target Market
As a standard early childhood learning center, Little Rock® Community Learning Center, Inc. is going to offer varieties of educational services. Our intention of starting our early childhood learning center is to prepare toddlers to enroll in schools and of course to make profits from the education industry.
Our target market as an early childhood learning center cuts across people (students) of different classes and cultural background whether African, White, Caucasian, Latinos, Indians, and Asians. We are coming into the industry with a business concept that will enable us work with the students at different learning stages in Little Rock – Arkansas.
Our Competitive Advantage
Indeed, the Early Childhood Learning Centers industry is highly competitive and the entry barriers are high. As a matter of fact, the industry is pretty difficult for new entrants to establish themselves. So also, the reputation of the early childhood learning center is of utmost importance, as early childhood learning centers that have a good history of getting students into prestigious schools often have the best reputations.
As a major marketing tool, schools need to show parents a track record of admission to elite schools. Little Rock® Community Learning Center, Inc. might be a new entrant into the education cum Early Childhood Learning Centers industry in the United States of America, but the management staff of the center are considered gurus.
They are highly qualified educationists/teachers at various levels of learning in the United States. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Little Rock® Community Learning Center, Inc. is established with the aim of maximizing profits in the education cum Early Childhood Learning Centers industry and we are going to ensure that we do all it takes to attract students on a regular basis. Little Rock® Community Learning Center, Inc. will generate income by offering the following tutorial services;
- Providing child and infant day care to an extent
10. Sales Forecast
We are well positioned to take on the available market in Little Rock – Arkansas and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the early childhood learning center and our student base.
We have been able to examine the early childhood learning centers cum education market in the United States of America, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below is the sales projection for Little Rock® Community Learning Center, Inc., it is based on the location of our tutorial center and of course the wide range of educational cum learning services that we will be offering;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $750,000
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. So, there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are stiff competitions amongst early childhood learning centers in the United States of America, hence we have been able to hire some of the best marketing experts to handle our sales and marketing concerns.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the early childhood learning center.
Our goal is to grow our early childhood learning center to become one of the top 10 early childhood learning centers in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Little Rock – Arkansas but also in other cities in the United States of America.
Little Rock® Community Learning Center, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our early childhood learning center by sending introductory letters alongside our brochure to schools, parents/household and key stakeholders in Little Rock – Arkansas.
- Print out fliers and business cards and strategically drop them in schools, libraries and even student organizations.
- Creating a website, allows parents to be able to look you up, and also allows you to post general study tips, giving you an added advantage.
- Use friends and family to spread word about our early childhood learning center
- Introduce Little Rock® Community Learning Center, Inc. to learning specialists, school coaches, school administrators, teachers, guidance counselors especially as they are with students everyday
- Post information about Little Rock® Community Learning Center, Inc. on bulletin boards in places like schools, libraries, and local coffee shops.
- Placing a small or classified advertisement in the newspaper, or local publication about Little Rock® Community Learning Center, Inc.
- Using tutorial referral networks such as agencies that will help match students with Little Rock® Community Learning Center, Inc.
- Joining relevant association or body that will enable us network and meet others in same industry.
- Advertising online by using an advertising platform such as Google AdWords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
- Advertise our early childhood learning center in relevant educational magazines, newspapers, TV and radio station.
- Attend relevant educational expos, seminars, and business fairs et al
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
11. Publicity and Advertising Strategy
We are aware of the potency of a good publicity strategy hence we have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both parents and students in the whole of Little Rock – Arkansas which is why we have made provisions for effective publicity and advertisement of our early childhood learning center. Below are the platforms we intend to leverage on to promote and advertise Little Rock® Community Learning Center, Inc.;
- Place adverts on both print (community based newspapers and educational magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our billboards in strategic locations all around Little Rock – Arkansas.
- Engage in roadshow from time to time in targeted neighborhoods in and around Little Rock – Arkansas
- Distribute our fliers and handbills in target areas in and around Little Rock – Arkansas
- Passing general information via our school’s social media handles like twitter, Facebook, Google hangouts etc.
- Ensure that all our teaching and non – teaching staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.
12. Our Pricing Strategy
Early childhood learning centers in the United States of America and of course in all the parts of the world charge students per term/per session and students have the options of either paying their tuitions before resumption or during the school session.
Early childhood learning centers charge students based on loads of factors including location, service offerings and extra – curricular activities.
At Little Rock® Community Learning Center, Inc. we will keep our fees below the average market rate by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals.
- Payment Options
The payment policy adopted by Little Rock® Community Learning Center, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Little Rock® Community Learning Center, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for tuition fees without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for services rendered.
13. Startup Expenditure (Budget)
In setting up an early childhood learning center business, the amount or cost will depend on the approach and scale you want to undertake.
If you intend to go big by acquiring a large facility, then you would need a higher amount of capital as you would need to ensure that your employees are taken care of, and that your early childhood learning center’s environment is conducive enough for the students to learn.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a early childhood learning center business; it might differ in other countries due to the value of their money. However, this is what it would cost us to start Little Rock® Community Learning Center, Inc. in the United of America;
- Business incorporation fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring a large facility that will accommodate the number of block of classes, playing field, staff offices and parking lots et al (Re – Construction of the facility inclusive) will cost – $350,000.
- Equipping the classes and office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $50,000
- Launching an official website will cost – $500
- The budget for the payment of salaries for the first three months of operations: $120,000
- Additional Expenditure such as Running cost, Business cards, Signage, Adverts and Promotions will cost – $45,000
Going by the market survey and feasibility studies conducted, we came to the conclusion that we will need an average of six hundred and fifty thousand dollar ($650,000) to start a small but standard early childhood learning center in the United States of America.
Generating Funds/Startup Capital for Little Rock® Community Learning Center, Inc.
Little Rock® Community Learning Center, Inc. is a family business that will be owned and managed by Dr. (Mrs.) Beck Steve – Carson and her immediate family members. They are the major financiers of the early childhood learning center which is why they decided to restrict the sourcing of the startup capital for the early childhood learning center to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from government, friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of securing $100,000 education grant from the Government an also obtaining a loan facility of $300,000 from our bank.
All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
It is a known fact that the future of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and of course the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Little Rock® Community Learning Center, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers (students and parents alike) over is to ensure that we offer nothing less than the best, to offer quality education to all our students so much so that they can favorably compete with students all over the United States.
Little Rock® Community Learning Center, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Securing a standard facility large enough to accommodate our design: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Schools’ Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the school : In Progress
- Creating Awareness for the early childhood learning center in Little Rock – Arkansas: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the education industry : In Progress
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How to write a business plan for a training center?
Writing a business plan for a training center can be an intimidating task, especially for those just starting.
This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.
We'll cover: why writing a training center business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.
Let's get started!
In this guide:
Why write a business plan for a training center?
What information is needed to create a business plan for a training center.
- What goes in the financial forecast for a training center?
- What goes in the written part of a training center business plan?
- What tool can I use to write my training center business plan?
Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a training center business plan in the first place.
To have a clear roadmap to grow the business
It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...
In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a training center is essential to create successful and sustainable businesses.
To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.
Once you know where you want your training center to be, you'll have to identify:
- what resources (human, equipment, and capital) are needed to get there,
- at what pace the business needs to progress to get there in time,
- and what risks you'll face along the way.
Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.
To anticipate future cash flows
Regularly comparing your actual financial performance to the projections in the financial forecast of your training center's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.
This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.
Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.
Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.
To secure financing
Crafting a comprehensive business plan for your training center, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.
Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.
For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).
Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your training center has the potential for healthy growth, profitability, and consistent cash flow generation over time.
Now that you understand the importance of creating a business plan for your training center, let's delve into the necessary information needed to craft an effective plan.
Writing a training center business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.
In this section, we cover three key pieces of information you should gather before drafting your business plan!
Carrying out market research for a training center
Carrying out market research before writing a business plan for a training center is essential to ensure that the financial projections are accurate and realistic.
Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.
In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.
You may discover that your training center could benefit from offering more remote courses, as people may be more likely to take classes from the comfort of their own homes. Additionally, market research might indicate that people might be more likely to take classes that are shorter in duration, as they may prefer a quick and effective way of learning.
This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your training center.
Developing the sales and marketing plan for a training center
As you embark on creating your training center business plan, it is crucial to budget sales and marketing expenses beforehand.
A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.
This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.
The staffing and equipment needs of a training center
As you embark on starting or expanding your training center, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.
Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.
The staffing costs for a training center might include wages for instructors, administrative staff, and support personnel such as janitors and IT staff. The equipment costs might include computers, projectors, and other audiovisual equipment, as well as furniture, office supplies, and other items needed to run the training center.
To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.
With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.
What goes into your training center's financial forecast?
The objective of the financial forecast of your training center's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.
The four key outputs of a financial forecast for a training center are:
- The profit and loss (P&L) statement ,
- The projected balance sheet ,
- The cash flow forecast ,
- And the sources and uses table .
Let's look at each of these in a bit more detail.
The projected P&L statement
The projected P&L statement for a training center shows how much revenue and profits your business is expected to generate in the future.
Ideally, your training center's P&L statement should show:
- Healthy growth - above inflation level
- Improving or stable profit margins
- Positive net profit
Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established training center. And similarly, an established company should showcase a higher level of profitability than a new venture.
The projected balance sheet of your training center
The balance sheet for a training center is a financial document that provides a snapshot of your business’s financial health at a given point in time.
It shows three main components: assets, liabilities and equity:
- Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
- Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
- Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.
Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your training center's liquidity and solvency:
- Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
- Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.
Looking at the balance sheet can also provide insights into your training center's investment and financing policies.
In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).
The projected cash flow statement
A cash flow forecast for a training center shows how much cash the business is projected to generate or consume.
The cash flow statement is divided into 3 main areas:
- The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
- The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
- The financing cash flow shows how much cash is raised or distributed to investors and lenders
Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.
It is also a best practice to include a monthly cash flow statement in the appendices of your training center business plan so that the readers can view the impact of seasonality on your business cash position and generation.
The initial financing plan
The initial financing plan - also called a sources and uses table - is an important tool when starting a training center.
It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).
Having this table helps understand what costs are involved in setting up the training center, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).
Now that the financial forecast of a training center business plan is understood, let's focus on what goes into the written part of the plan.
The written part of a training center business plan
The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.
Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.
The written part of a training center business plan is composed of 7 main sections:
- The executive summary
- The presentation of the company
- The products and services
- The market analysis
- The strategy
- The operations
- The financial plan
Let's go through the content of each section in more detail!
1. The executive summary
In your training center's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.
When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.
Following that, provide an overview of the addressable market for your training center, current trends, and potential growth opportunities.
Next, include a summary of key financial figures like projected revenues, profits, and cash flows.
Finally, in the "ask" section, detail any funding requirements you may have.
2. The presentation of the company
The second section in your training center's business plan should focus on the structure and ownership, location, and management team of the company.
The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.
The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).
When describing the location of your training center, you could emphasize the potential for growth. It may be situated in a region with access to a large pool of potential customers, as well as resources that could support the expansion of your business. You could also emphasize the diversity of the local economy, which could indicate a stable market for your services. Additionally, you could point out the potential for strategic partnerships with other businesses in the area, which could help to increase your reach and build a network of customers.
Finally, you should introduce the management team. Explain each member's role, background, and experience.
It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.
3. The products and services section
The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market.
For example, your training center could offer one-on-one tutoring, small group courses and online classes. The one-on-one tutoring would provide customized instruction tailored to a student's specific needs and goals. The small group courses would allow for students to work together to understand concepts more quickly, as well as build relationships with one another. Finally, the online classes would give students the chance to receive instruction from anywhere in the world, making it more convenient for those who cannot attend a physical location.
4. The market analysis
When you present your market analysis in your training center business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.
The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.
Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your training center, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.
Next, focus on your target market, zooming in on the specific customer segments your training center aims to serve and explaining how your products and services fulfil their distinct needs.
For example, your target market might include adult professionals who are looking to gain new skills or certifications to advance their career. They may be looking to transition into a new field, or gain an edge in their current one. They are likely to be willing to invest in their education and may be looking for an intensive program that can provide quick results.
Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.
Finally, conclude your market analysis with an overview of the key regulations applicable to your training center.
5. The strategy section
When you write the strategy section of your training center business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.
In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.
The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.
Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.
For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.
Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.
Your training center may face a variety of risks. For example, your center could face a financial risk if there is a decrease in enrollment or if the cost of materials and supplies increases. Additionally, your center might face a risk of litigation if an instructor or student is injured or if a student is unsatisfied with the quality of training.
6. The operations section
In your business plan, it's also essential to provide a detailed overview of the operations of your training center.
Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.
Next, clearly state your training center's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.
Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.
You may have a variety of key assets and IP at your training center, such as proprietary learning materials and teaching methods. These could include professionally developed course materials, e-learning modules, multimedia content, and textbooks that are all unique to your center. Additionally, you might have specialized equipment such as computers, projectors, and audio visual gear that allow you to conduct training sessions in an effective and efficient manner.
Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.
7. The presentation of the financial plan
The financial plan section is where we will include the financial forecast we talked about earlier in this guide.
Now that you have a clear idea of the content of a training center business plan, let's look at some of the tools you can use to create yours.
What tool should I use to write my training center's business plan?
In this section, we will be reviewing the two main options for writing a training center business plan efficiently:
- Using specialized software,
- Outsourcing the drafting to the business plan writer.
Using an online business plan software for your training center's business plan
Using online business planning software is the most efficient and modern way to create a training center business plan.
There are several advantages to using specialized software:
- You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
- You are guided through the writing process by detailed instructions and examples for each part of the plan
- You can access a library of dozens of complete business plan samples and templates for inspiration
- You get a professional business plan, formatted and ready to be sent to your bank or investors
- You can easily track your actual financial performance against your financial forecast
- You can create scenarios to stress test your forecast's main assumptions
- You can easily update your forecast as time goes by to maintain visibility on future cash flows
- You have a friendly support team on standby to assist you when you are stuck
If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .
Hiring a business plan writer to write your training center's business plan
Outsourcing your training center business plan to a business plan writer can also be a viable option.
Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.
However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.
From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).
You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.
The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.
For these reasons, outsourcing the training center business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.
Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.
Why not create your training center's business plan using Word or Excel?
I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your training center business plan. Let me explain why.
Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.
Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.
And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.
Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.
Now, let's talk about the written part of your training center business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.
Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.
- Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
- A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
- Using business plan software is the modern way of writing and maintaining business plans.
We hope that this guide helped you to better understand how to write the business plan for a training center. If you still have questions, do not hesitate to contact us.
Also on The Business Plan Shop
- How to write a 5 years business plan
- Business plan myths
Know someone who owns or wants to start a training center? Share this article with them!
Founder & CEO at The Business Plan Shop Ltd
Guillaume Le Brouster is a seasoned entrepreneur and financier.
Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.
Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.
Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.
Published on 11 Sep 2023 , last update on 24 Nov 2023 , as per our editorial standards .
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Daycare Business Plan Template [Updated 2023]
Daycare Business Plan Template
If you want to start your own daycare business or expand your current daycare center, you need a business plan.
The following daycare business plan template gives you the key elements to include in a winning childcare business plan. In addition to this template, conducting research will not only support your business concept, but help you better understand the daycare industry, pricing strategies and your target market. It will also help you craft a smart marketing plan and strong financial projections.
You can download our Daycare business plan template (including a full, customizable financial model) to your computer here.
Below are links to each of the key sections of a sample daycare business plan:
I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
Click below to see each section of our free child care business plan template. You can also click here to get our sample daycare business plan pdf .
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