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Child Care Organization as a Business Project Essay

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Updated: Sep 7th, 2021

Objective and Mission Statement

The objectives are chosen due to the fact that the given daycare aims to be profitable and provide high-quality service. Child care organizations have accumulated considerable experience in cooperation with various social institutions in order to increase the effectiveness of the moral, labor, mental, physical, artistic, and aesthetic development of children. Teachers of kindergartens, constantly improving the content and forms of work with children, seeking to achieve an organic combination of educational effects on the child in a pre-school organization, to ensure the full development of the individual. The urgency of the problem is that the child daycare is the first social institution, the first educational institution with which the parents come in contact, where their pedagogical education begins.

The mission statement is based on the philosophy and goals of the daycare, which is to support, nurture, and empower both families and their children. Human development is influenced by many different factors, both biological and social (Ibar-Alonso, Cosculluela-Martínez, & Hewings, 2019). The main social factor influencing the formation of the individual in the family, and it is the main institution of education traditionally. However, nowadays, parents are forced to work to preserve their jobs, therefore, the children’s development is dependent on the educational methods of the daycare centers and other units.

Description of Business

Company Ownership/ Legal entity

The choice of license is made on the basis of maximizing the amount of the state’s supplemental funds. The child daycare units are highly demanding in terms of jurisdictional qualifications because parents put a great deal of trust in these centers. It is important to provide a complete outline of the subject and regulatory measures due to the fact that the service is delicate. It is critical to acquire the Day Care License for the given business because it indicates and holds child daycare organizations responsible. The minimum standards ensure the safety of a child and provide legal protection to all parties involved, including child daycare (Dijkstra, Asscher, Deković, Stams, & Creemers, 2019). The legislative acts on possible sex offenders and child abusers demand the process of fingerprinting. Each child daycare worker’s criminal record and past inspections will further ensure that parents are leaving their children in the hands of professionals, and there is no risk of mistreatment. In addition, the regulatory measures include fire and health requirements for a firm to possess, which is highly widespread among all organizations accountable for the life safety of the people involved.


The choice of license for group daycare home is made because it provides the maximum capacity of children. The licensing procedure in child daycare centers is intricate and delicate in nature due to the fact that the state government has to thoroughly ensure the child’s safety. The license of the given state is free, and it provides two possible options, such as daycare home and group daycare. Each choice possesses a maximum capacity outline for the number of children allowed. The license covers food preparation and nutrition, programs of education, and safety (Leone, Jaykus, Cates, & Fraser, 2016). By having a license, the daycare center can host up to sixteen children, which is essential in order to increase profitability and revenue.


There are two main requirements for providers who are applying for the license. They include a High School Diploma and fifteen hours of pre-service training. Both of them are necessary for new applicants due to the certification standards.


The nutrition program is an essential part of the daycare regulations and monitoring. Unlike all environmental factors that constantly affect a child, food is transformed into internal factors that create energy and building materials for a person to form cells and tissues. It necessary not only to provide the required amount of energy and essential nutrients but also a strict relationship between many critical nutritional factors, macro – and microelements (Rajbhandari-Thapa et al., 2017). The balance of individual nutrients in diets is determined by the general biological regularity of food assimilation: the need for strict compliance of chemicals with the body systems responsible for its absorption.

It is important to ensure that children at the daycare get all the necessary food varieties in order to eliminate deficiencies entirely. In modern nutritional science, there is also the concept of healthy food, implying the primary preventive effect of food on the body. The term “health” should be understood not only as a state when all the vital signs of the body are within normal limits, but also the availability of reserve capabilities that provide adaptive responses to external factors. It is now established that most people have symptoms of insufficient adaptation in the form of reduced resistance to the adverse effects of the environment, an increase in the number of immunodeficiency states (Rajbhandari-Thapa et al., 2017). Children with malnutrition have a low level of micronutrients and essential minor substances in the body. The concept of optimal nutrition, which implies the need to provide not only energy but also a balanced amount of nutrients and essential nutrients, should be at the core of the modern concept of healthy nutrition.


The choice of location is highly optimal and welcoming because the house is located in a safe and quiet neighborhood. It is especially important for the child daycare units operating in a home-based style to be appealing and attractive for potential customers. The level of cleanliness and structural organization of the placement builds an outstanding first impression alongside the trust of a parent in the daycare.

Hours of Operation

Hours of operation are chosen in order to be suitable and adjustable for parents. Although the general working hours will be implemented, the timetable will always adjust according to the demand of customers. If a parent requests a non-traditional schedule, the daycare center will ensure that the service is provided. The main reasoning is to maximize the number of clients in order to operate at full capacity constantly. This will eliminate the stagnations of the daycare in terms of profitability and assistant schedule rotations.


The daycare will have a wide range of services possible to identify the community’s current demands in the first three months of operation. After the given trial period, the business will select the most efficient and profitable approach for the daycare unit. The main intent of the entire process is to retain the largest portion of clients.

Financial Statement

Indicators of the statement of financial results allow to identify and analyze the influence of factors on the economic consequences of a profit or loss. The sequence and choice of stages of the analysis of the report on financial results depend on whether the review is carried out by external users only according to financial reporting data or internal users with the involvement of management accounting data. In this regard, business managers can distinguish methods of external and internal analysis of financial results. A higher quality of income of any commercial organization determines a larger proportion of income from ordinary types of activities (Luypaert, Van Caneghem, & Van Uytbergen, 2016). In other words, it proceeds from the sale of goods, products, works, and services. For a detailed study of the composition and structure of expenses for ordinary activities, along with the data of the statement of financial results, information is used to explain the balance sheet.

The indications are made for the statement of financial results and the expenditures of ordinary activities. The markers of the dynamics and structure of revenue and spending are complemented by relative indicators characterizing the ratio of total income to total expenses. The rate of profit from ordinary activities to costs from regular activities and the proportion of other income to other fees are also included (Luypaert et al., 2016). At the next stage of the overview of the report on financial results, horizontal analysis of profit indicators is carried out, which involves assessing their level and dynamics. It allows identifying the participation of individual incomes and expenses in their formation, evaluating the stability of income and expenses, and their changes in the future.

The main objective of the report’s vertical analysis on financial results, including floater salary, is to assess the participation degree of income individual items and expenses in the formation of total and net profit. In this case, various methodological approaches to the structural analysis of the financial result creation can be used. The dynamics of these indicators are called the intermediate levels of profitability study (Luypaert et al., 2016). The Floater Salary enables effective management of the expense column of operational costs, which are essential for the unit’s adjustability. The calculations are made by tracking the current value of revenue and income. The disadvantage of this approach is that many elements within income and expenses are not directly related to sales revenue. More reasonable is the structural analysis of profit before tax. The evaluation considers the change in the proportion dynamics in its composition of profits from sales, other income, expenses, and net profit. The increase in the dynamics within the share of profit from sales and net profit is positively estimated, while the profit from sales should occupy the main share in the day care’s total benefit.


The marketing process will include word of mouth, print, community events, advertising, and canvassing the neighborhood. The most effective among these approaches is the word of mouth because the day care’s capacity does not need mass and population-scale marketing. The most crucial and important targeted customers are the ones who live in the nearby neighborhood. Satisfied parents can recommend and suggest the daycare unit to their neighbors, friends, coworkers, and relatives. Therefore, it is essential to ensure that the first clients will get the highest quality of service in order to initiate the word-of-mouth marketing process (Packard & Berger, 2017). If the given approach is not sufficient, the traditional methods of print and advertising will be implemented. In addition, community events and canvassing the neighborhood will be held in order to show the potential clients that daycare is proactive and eager to support them. All of these marketing approaches are not expensive and require minimal investment, which is important to make the unit profitable. More costly marketing strategies will not increase the overall efficiency, because there is a significant limit to the capacity for children.


The main goal of a pricing strategy is to find the most optimal prices for daycare services. It is one of the key components of the success of any company. At the same time, pricing in the service industry is different from the pricing of industrial and trade organizations. This is due to the fact that the immaterial nature of the services of different companies, it is rather difficult to compare with other organizations. The more challenging it is for the buyer to compare the quality of services of different firms, the more freedom the organization has in setting prices. Often, customers are not able to assess the quality of the service even after its consumption, and an example of such cases can serve as educational and medical services (Mills & Treen, 2016). The price is an indicator of the quality of the services provided, and the sensitivity of customers to price changes is rather low. Unlike goods, services are consumed at the time of their production and are not amenable to accumulation. Therefore, with significant fluctuations in demand over time, the company may not be able to regulate supply at the expense of stocks (Mills & Treen, 2016). The only way out of this situation is to control the prices of services in time, that is, to use a flexible system of discounts in various periods of reduced demand.

Many daycare organizations make a serious mistake by skipping the first stages of the pricing process and trying to immediately choose one or another pricing method. The basic criterion for determining the price is the correct choice not of the technique, but its parameters (Mills & Treen, 2016). The given study summates and synthesizes the importance of the account-oriented approach. At different pricing policies, demand, and supply of services, the same pricing method can be used, but its parameters will differ significantly. Determining need is a rather difficult stage of the pricing process, and not all organizations can do it. This requires a lot of analytical work so that small firms can replace the exact quantitative definition of demand with expert estimates. As a rule, the head of any company roughly represents the financial capabilities and needs of consumers of the firm’s services. All the methodological approaches achieve the project’s intended purpose by evaluating and categorizing the main objectives for the daycare operation. Each step of the marketing pricing and marketing process alongside the financial management ensures the success of the given business. Future implications of the project can be manifested in delivering the guideline for others, who are interested in the daycare.


In conclusion, each organization needs an accurate assessment of the cost of services. There are a number of legislative, nutritional, operational, and financial factors involved. Such an evaluation is the minimum break-even price that a firm can set. Based on the analysis of the cost and magnitude of demand, the company can decide: to provide these services, abandon them, or find ways to reduce costs. At the same time, the more precisely the price is determined, the more accurate decisions will be able to take the leadership of the company. Daycare must accurately represent what type of market it operates. The possibility and expediency of pricing, more or less than the price of a competitor, as well as to some extent, the pricing method will depend on this. After all, if an organization works in the market of perfect competition, the only way that suits it is the market pricing method.


Dijkstra, S., Asscher, J. J., Deković, M., Stams, G. J. J. M., & Creemers, H. E. (2019). A randomized controlled trial on the effectiveness of family group conferencing in child welfare: Effectiveness, moderators, and Level of FGC completion. Child Maltreatment, 24(2), 137-151.

Ibar-Alonso, R., Cosculluela-Martínez, C., & Hewings, G. (2019). Time indicator of the human development index. Time & Society, 28(1), 273-296.

Leone, C. M., Jaykus, L. A., Cates, S. M., & Fraser, A. M. (2016). A review of state licensing regulations to determine alignment with best practices to prevent human norovirus infections in child-care centers. Public Health Reports, 131(3), 449-460.

Luypaert, M., Van Caneghem, T., & Van Uytbergen, S. (2016). Financial statement filing lags: An empirical analysis among small firms. International Small Business Journal, 34(4), 506-531.

Mills, A. J., & Treen, E. (2016). Operation valuation: Teaching pricing concepts in an experiential environment. Journal of Marketing Education, 38(2), 73-82.

Packard, G., & Berger, J. (2017). How language shapes word of mouth’s impact. Journal of Marketing Research, 54(4), 572-588.

Rajbhandari-Thapa, J., Bennett, A., Keong, F., Palmer, W., Hardy, T., & Welsh, J. (2017). Effect of the Strong4Life school nutrition program on cafeterias and on manager and staff member knowledge and practice, Georgia, 2015. Public Health Reports, 132(2), 48-56.

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