Introduction
The Babies Blanket Child Care and Parent Resource Center is a full-service childcare company. The company is a 24-hour complete service business that helps parents further their career skills and assists with government services (7). It is located at the 5600 block of North Broad Street in Philadelphia, PA, roughly 0.2 miles from the Einstein Hospital. The location was chosen because it is close to the Olney transportation center, a dentist, and an eye doctor’s office.
The pricing would be defined to fit the neighborhood. Thus, the company will charge $600-$700 a month for infant daycare (3-18 months) and $500-$600 a month for toddler daycare (18-36 months). Moreover, the preschool daycare (3-5 years of age) will be $400-$500 monthly. For children requiring care before and after school (5-12 years of age), the charge will be $200 a month. Financial assistance from the Department of Human Services is accepted. From a marketing perspective, the business promotion of Babies Blanket Child Care and Parent Resource Center is linked to the organization’s location in a high-traffic area that is easy for new clients to notice. The marketing plan is based on the idea that the space will promote itself along with continued social media blasts, billboards, community events, and referrals from happy parents.
Mission Statement
The Babies Blanket Child Care and Parent Resource Center Company has a mission to deliver a top-notch childcare service. The company strives to provide maximum satisfaction to its customers. The business is driven to fulfill and surpass customers’ expectations. The business is targeting to offer top-notch services because it is estimated to be the leading childcare service provider in the area in five years’ time. The company’s values are focused on safety for children and convenience for parents,
Goals
Like any other business, the Child care service center is also driven by predefined goals and objectives. Taking care of small children is, at times, a challenging and rewarding profession. The long-term goal is to provide proper childcare services enriched with a better foundation on childhood education experience for all children, including those with diverse needs, and to generate over five million dollars in the next five years (3). The main short-term goal is to reach a break-even stage within the first eight months of operation.
Long Term Goals
The long-term goals that are to be achieved in the next five years include raising the overall income revenues by thirty percent, setting up more than four departments on top of the existing department, and building a lower primary school, which is an extension of the daycare business. They require time and proper planning; otherwise, the company may not achieve its objectives.
The long-term goals will be measured through the use of time as a metric and through the use of various technologies. The number of visitors visiting the business website shall be measured through Google Analytics, and the number of downloads of the website content shall be determined. An increase in market share is another long-term goal that will be weighted in terms of the generated revenues in the business over five years. Lastly, the long-term goals shall be measured by determining the product adoption rates and the growth rate compared to the competitors.
Short Term Goals
The Babies Blanket Child Care and Parent Resource Center’s short-term goals are to reach the break-even period within eight months of operation, collaborate with parents, and assist them in providing for their children’s needs. Additionally, it is aimed to provide the kids with a richer experience regarding every one of our programs. The short-term goals will be measured by quantifying the number of downloads people make on the business internet site and the number of website visitors daily. Moreover, the number of visitors indicates the flourishing nature of the business.
Environmental Analysis
The environmental analysis assesses factors such as the social environment, which is the children’s relationship with others in the community. It also highlights the relationship between the kids and their fellows in school. Considering the environmental elements that influence a child’s growth and development is vital. High-quality child care supports children’s physical, enthusiastic, psychosocial, and academic development by providing a safe and secure setting. Various childcare options are available, such as unofficial child care provided by family, friends, neighbors, babysitting services, or other in-home care (3). In addition, there are family childcare homes, group childcare homes, and approved childcare establishments.
Competitive Analysis
Babies Blanket Child Care and Parent Resource Center will be experiencing stiff competition from ABC Child Care Center, their direct competitor, and UVH homes and Educational Center, an indirect competitor. ABC Child Care Center offers similar services and has been in the industry for more than ten years, which illustrates that the company is resilient and approaches child care services on a high level. Hence, the organization is strong in changing based on market shifts. Nonetheless, competitors have non-qualified personnel, and this might be their weakness which Babies Blanket Child Care Center could take advantage of and overtake them in the market.
Economic Analysis
Early childhood investments may take many forms, such as increasing the quantity and quality of parental and caregiver time, focus, education, and training. Moreover, such investments may manifest in offering and enhancing instructional resources, providing a childcare curriculum, and changing parental routines and behaviors (7). The increase in inflation will affect the business’s profitability since the demand for the services will also decrease. Moreover, despite the US being in late cycle expansion, as interest rates grow, economic growth is predicted to stagnate (6). The government imposed a high tax rate on this type of business, reducing the rate of profits and increasing unemployment, which is currently at approximately 3,7% due to such policies.
Political and Legal Analysis
The Pennsylvania Health and Human Services regulates childcare service providers by monitoring the compliance procedure of the business intending to offer childcare services. They investigate the complaints and the allegations reported by the parents or children in these institutions, which is the primary safety regulation for the proposed business. Moreover, the taxable net income for employers has been reduced to 6,20% (1). The state and federal political environment is a stable democracy, facilitating business progress. Employees are protected by state and federal legislative entities overseeing fair compensation, work-related accidents, and wages (2). Similarly, unfair trade and consumer protection are also overseen on a state level.
Technological Analysis
Technological advancements are essential in both the proposed business and country-wise. Namely, the current stage is one in which new entrants emerge with new technologies. The government itself engages in spending on recent advancements, for example, investing more than $190 million in artificial intelligence (4). Needless to say, tech spending is rising among citizens due to the fast-growing pace of the industry. The role of the internet has become significant in every business, which is why the proposed start-up will also focus on emerging technology to provide the best childcare services.
Sociocultural Analysis
The childcare business is impacted by people’s values and beliefs. The company is likely to thrive well in areas where the birth rate is high. Due to the increased number of children in the area, childcare facilities are in demand. Moreover, individuals in the selected city are career-driven women and men who would invest in quality daycare facilities and return to work soon after birth.
SWOT Analysis
SWOT Analysis will help the Babies Blanket Child Care and Parent Resource Center examine business strengths and weaknesses and identify areas of improvement. The SWOT analysis requires proper examinations from the perspective of potential customers (5). The SWOT elements will assist in the identification of the areas in which the business is performing well and areas that require improvement (Table 1).
Table 1: Strengths, weaknesses, opportunities, and threats for Babies Blanket Child Care and Parent Resource Center
Strengths
The owners of the business will be able to benefit from the created aspects. The company shall generate more income and exceed the rate of set return on investment. Babies Blanket Child Care and Parent Resource Center will give back to the community in a less expensive manner. The people living around shall benefit from the subsidized fee on childcare. The importance of the strengths is highlighted in the adherence to the current economic climate, allowing parents to access resources with fewer investments.
Weaknesses
The business will require extensive capital to become established and operate before it reaches the breakeven stage. Babies Blanket Child Care and Parent Resource Center is required to register with the relevant body, obtain an operating license, and adhere to state and federal laws to operate this business. This involves vast investments, which might lead to bankruptcy. Another weakness is a high adherence to risk and lack of efficiency, which brings loss to the company.
Opportunities
The business partners shall subsidize the cost of hiring employees. When the business becomes an already-established partner on the market, the company will minimize the charge on its employees as the partners will subsidize such expenses (5). The low-income families will be able to be serviced similarly to high-income parents in other childcare facilities. It is projected to become the best service provider in the area in the next five years. Thus, the importance of the opportunities aligns with the idea of conducting ethical yet profitable business operations.
Threats
The competition is the daycare center’s main threat, especially from businesses that provide in-house child care. Additionally, even in well-run and staffed institutions, allegations of neglect or abuse may result in litigation. Additionally, there is a chance of experiencing excessive employee turnover that will have an effect on the business by lowering productivity and destroying the reputation of the company. A poor working environment facilitated by a lack of qualified personnel can also hinder success.
Conclusion
Babies Blanket Child Care and Parent Resource Center will be a community-based project that will give back through high-quality child-care services. The institution offers care for young babies and toddlers. There are options for before and aftercare, full-time, overnight, and part-time daycare for parents or legal guardians. The startup is projected to be a leading business in the area in a period of five years, highlighting its potential success.
Sources
- The city of Philadelphia. 2022. Business Income & Receipts Tax (BIRT): Services. Web.
- Department of Labor and Industry. 2022. Laws. Web.
- Eun Yu. 2018. Understanding Experiential User Value Through a Case Study of the Public Childcare Service in South Korea. Web.
- Gregory S. Dawson. 2022. Understanding Artificial Intelligence Spending by the U.S. Federal government. Web.
- Nik Syuhailah Nik Hussin. 2019. Parental Perceptions of Childcare Service Quality: A Descriptive Analysis. Web.
- The Conference Board. 2022. Economic Forecast for the US Economy. Web.
- Zarin Khan Moon. 2022. Childcare Centre for Work Efficiency of Employed Parents: Perception Analysis for Business Prospects. Web.