The Full Moon Nightcare Center
The Full Moon Nightcare Center
Executive Summary
The demand for childcare services is increasing and is expected to grow through 2020.
Today, it is more common for both parents to work to provide for their family compared to the typical old age structure where the father would bring home the income, and the mother would care for the family. We are aware that childcare services is a multi-billion dollar industry. However, we have also recognized that there are limitations as far as the hours of operations, and cost to the current childcare industry. The average child care center closes at 6:00 pm while many jobs extend pass those hours. The average work week has increased to 47 hours, according to Lydia Saad of Gallup. That is an hour and a half longer than a decadnie ago. With that being said, our group’s proposal is to open a nightcare center for those hard working parents whose work day doesn’t end at regular hours.
The Full Moon Nightcare Center will segment the market based on income, lower, middle, and upper class. Our company will meet the needs and wants of parents that work late hours and are in the middle class. Our night care center will operate Monday through Friday from 2:30pm to 10:30pm and weekends from 1:00pm to 10:30pm. We feel that offering different hours than our competitors and by having a well-rounded, highly qualified staff will create both opportunities and strengths to our company. We will offer a variety of stimulating activities that are appropriate for children ages two to twelve. These activities will include a balance of outdoor activities, social games, arts and crafts, and much more. Not only are we providing fun, engaging games, we also have skilled tutors to aid with homework and educational improvement. Parents will feel confident that their children are in capable hands, while also having a fun time.
Parents also have the wonderful opportunity to earn a discount by opting for the membership. Our regular rate is $16 per hour. However, if someone signs up the Full Moon Nightcare Center membership, the price decreases to $14 per hour. This membership discount is mutually beneficial for the customer and our company. It will create loyal customers, a steady flow of income, while also making the customers happy.
Our research led us to rent a four bedroom house in Fullerton. The house is in a top safety rated neighborhood and provides a lot of open space for safe and fun activities. There are three elementary schools within a three mile radius of the house. They are all walking distance which allows us to offer a chaperoning service to children going to our nightcare center after school. The house is also walking distance from two parks, which both host youth sports leagues. First of all, this is a great place to take the kids for sports and nature walks. Secondly, we can easily promote our service to the youth league parents.
With our extensive advertising budget, we are able to invest in flyers, social media, a mobile-friendly website, online advertising, and radio advertising. By touching upon a wide variety of mediums, we will reach our target market more effectively. Our proximity to three elementary schools gives us the opportunity to form a strong relationship with them and reach our target market directly. As was mentioned previously, we will also approach the youth sports leagues at each park to promote our service to their parents. In addition, there are many popular eateries in the surrounding area. By also targeting them, we can reach those who work late restaurant hours.
The Full Moon Nightcare Center’s financial goal is to break even within the first two years of operation. For our nightcare service, we will be charging $14 per hour for membership individuals and $16 per hour for non-membership individuals. Based on research, we determined that it is most probable that our daycare center will have two non-membership children and four membership children per hour on average. If these numbers hold true, we will have a profit of about $50,000 during our first year of operations. In our pessimistic model, we determined that we will break-even after the second year of operations. For the next two future years, we determined that we will have a steady growth rate of 10% of the first year and 20% of the first year respectively. This is because we are a newer company and will gain market share as our service becomes more well-known. Thus, as a business, we are a very viable option and will start generating profits by the end of our second year of operations.
Introduction
Child care is the action or ability of looking after children, which can be someone else’s children or your own. There are many different types of child care services such as, mother’s helpers, babysitters, nannies, daycare centers, family day cares, and relative cares. A mother helper is a kind of childcare provider that help parents while the parents are still at home, they are usually between the ages of 13 and 18. A babysitter is someone that watches children in exchange for an hourly wage. A nanny watches children most days for multiple hours and usually has a weekly schedule. Nannies are usually more involved with the family and are more dedicated to making their job a profession. A daycare center is a drop-off child care service that is usually in nonresidential areas. They usually provide half or full-day care for children only during the day. A family day care is a child care service at someone else’s home. Finally, there is relative care, which is when relatives provide child care to the children. This is more comforting to parents because they trust them very highly and is a cheap form of child care (Kate Bayless, 2013).
Dr. Sonya Michel, a Professor at the University of Maryland states, “In the United States today, most mothers of preschool and school age children are employed outside the home” (2011). Michel also believes that mothers across America have invented many different ways to have their children cared for when they are working.
The child care centers came to the United States because of the Industrial Revolution and out of response to the large amount of immigration from 1815 to 1860. Kaspar Burger states in her paper, “The first actual descendant of the French crèche was the Nursery for the Children of Poor Women in New York City, which was founded in 1854” (2012). They started out as day nurseries, while both of their parents were working. This prevented children from wandering the streets to fend for themselves and from being put into orphanages. After the war, most women went back to their home and a lot of these day nurseries closed down.
It was not until the last thirty years, since women’s rights began, that childcare has become popular again. The reason behind this is that parents have become more dependent and comfortable with both incomes during the past thirty years. Today, the childcare service is a multi-billion dollar industry, that has been constantly growing for the last thirty years. Because women are deciding to work instead of staying at home to care of their children, the rate of the daycare industry market has increased significantly. The majority of the market has only been consisting of day care services for children under the age of 6 years old who haven’t started school. However, our company believes that the industry has missed a large part of the market, the single men or women that have children and men and women that work the night shift. In order to fulfill the needs and wants of the customers, a night child care center needs to be created.
Brief Description of the Product
The concept of The Full Moon Nightcare Center is to focus on the parents that work at night, providing their kids a safe place to have fun and meet friends. The need of a service after five has been a big issue for parents that work later than the typical nine to five job. By creating a night child care center and focusing on that specific target group, it will allow the company to better serve the customers’ needs and wants.
Industry Analysis
