In a country like South Africa, an ECD day care centre is a very lucrative business. As the average income increases steadily, accompanied by an increase in the birth-rate, more Early Childhood Development (ECD) day care centres are required. The increase in the demand for ECD centres in recent years is not only due to high birth rates. Immigration has been playing a huge role because a lot of families migrate to South Africa with their young children. There is more than 6 million children living in South Africa currently, and half of them cannot access educational facilities. This problem has created an opportunity for more ECD day care centres businesses.

Preschool Day care centres are necessary because toddlers need to  spend a reasonable amount of time in an environment that stimulates their learning abilities, which is not the case if they have no access to ECD day care centres. Most of these children, especially in low income groups stay with working single parents or with their grandparents in some cases. There is a huge gap in childcare services. Childhood development is critical for the social and economic development of a country. This article will outline how to start an ECD day care centre in South Africa, and the ECD Day Care business plan – PDF, Word and Excel.

Market Research

A day care is a lucrative business, providing income for many South African entrepreneurs, but there are some essential factors you need to consider before you venture into this kind of business. You need to decide on the size of your day care centre; location, the various services you will provide, plus your target market. These factors will be affected by the amount of capital you have. Thus, you should carry out a feasibility study, market research and have a good day care business plan before you venture into this business.

Location & Premises

The location and premises of your ECD day care centre are important before you decide on any other thing. It is important that you locate your ECD day care centre close to your target market. Consider the amount of road traffic, parent or guardian easy access, or a place where parents can easily pick and drop off their children. There are several possible locations, including close to the CBD where most workplaces are or residential areas close to the homes of your target market. Your premises should be safe and suitable for children. It should have sufficient parking space for staff and children. A playground is also required at your preschool for the children outdoor activities.  When selecting the premises of an ECD Day Care Centre, consider the effect of playground noise on the neighbourhood. Also take into consideration the effect of increased vehicle traffic especially with respect to drop off and pickup of children. Your business plan for ECD centre should cater for costs of renting or leasing the premises. 

Furniture and Equipment For An ECD Day Care Centre

In order to run your day care centre successfully you need various furniture and equipment. Some of the furniture and equipment you will require include tables, chairs, boards, computers, outdoor playing equipment, toys and kitchen equipment. You may also require a minibus especially if you are offering transport services. The furniture and equipment you need will depend on the size of your day care facilities and the kind of services you will provide. Your day care business plan should cater for such costs including the equipment and other essentials you will need to run the business successfully.

Products And Services

The kind of products and services you will provide are determined by your target niche. The most common services offered by ECD day care centres include full time childcare services for children 1 to 6 years old, that involves play and learning activities, meals, and entertainment for the children. Children will be divided into various age groups with the older ones being in Grade R. Your ECD day care centre business plan should clearly describe the various products and services you plan on providing.

Staff & Management for an ECD Day Care Center

For your ECD centre to be a successful it’s important that you hire employees that are friendly, efficient and who are qualified caregivers. Your employees should be passionate about taking care of children. If you want to hit the ground running it’s better to hire a team of people who have experience in this type of business. Your caregivers and teachers should be able to work with children, their parents and guardians.  Inexperienced staff members need to get extensive training before they can be given child minding tasks. Looking after children is a sensitive matter thus, working with qualified teachers for your preschool is important. There are plenty of risks associated with childcare that only experienced caregivers can manage. Depending on the size of your facility the actual number of your staff will vary however, you will need teachers, childminders, cooks, cleaners, security, as well as management. Your ECD business plan should cater for the salaries and day to day expenses of running the facility.

Market

There are a lot of children living in urban areas. The number of children living in urban areas has been increasing over the years, especially in Gauteng. A large number of the children living in urban areas are taken care of by working parents or guardians who will benefit greatly from ECD day care centres. Overall, there is more than 6 million children living in South Africa under the age of 6 years and the country is currently sitting on 2.37 births per woman. This is a huge market base for day care centres. The continuous increase in population which is influenced by a high fertility rate is more than likely going to translate into a continual increase in the demand for childcare services especially among younger working-class couples. Research has shown that the market for day care services is likely to increase overtime as more women enter the workforce.  There is a need for quality ECD daycare centres in the country, especially for children that come from low to middle income groups. More and more women are entering the workforce plus the increase in disposable income has also increased the demand for quality childcare centres. Your preschool business plan should include a proper marketing strategy for your business.

Is An ECD Day Care A Good Investment?

There is no denying that there is a reasonable number of ECD day care centres in a lot of South African neighbourhoods that already take up a reasonable market share. Nonetheless, you can open you own successful and profitable ECD day care centre. There is still a large number of children who cannot access educational facilities including quality preschools. Investing in a day care centre is profitable, but this will depend on many factors such as your target market, costs, and management. Apart from the obvious advantages of becoming financially independent and becoming your own boss, running an ECD centre can be a rewarding way of uplifting your community.

Given that the South African market is one of the leading emerging economies on the African continent with a relatively high fertility rate there is potential for good returns. The early childhood and development industry (ECD) can be competitive and complex. The sector has a lot of challenges given how it has developed overtime, but these challenges can be opportunities for your day-care facility. For example, there is still a large number of poor African children with no access to quality childcare services.

On the other hand, there are improvements in the sector due to increased government spending and ECD subsidies.  Whether you are a young entrepreneur, a professional seeking to start your own business or someone who needs a retirement plan, investing in a day care facility is something worth considering. One thing that can set you apart before investing in any venture is developing a business plan. A well thought out day care business plan will help you in both the short term and long term. There are various risks associated with running a day care centre so your ECD business plan should clearly outline these risks as well as the plans you have to minimise them.

PRE-WRITTEN ECD DAY CARE CENTRE BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

For an in-depth analysis of the ECD Day Care Centre business in South Africa, purchase our day care business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the preschool business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a day care business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the ECD business plan will lay out all the costs involved in setting up and running the ECD Day Care Centre business. The business plan is designed specifically for the South African market.

USES OF THE ECD BUSINESS PLAN (PDF, WORD AND EXCEL)

The daycare business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your preschool business
  • As a ECD Day Care business project proposal
  • Assessing profitability of the ECD Centre business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE DAY CARE CENTRE BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

  • Market Analysis
  • Industry Analysis
  • 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
  • Marketing Strategy
  • Risk Analysis
  • SWOT & PEST Analysis
  • Operational Requirements
  • Operational Strategy
  • Why some South Africans in the ECD Day Care Centre business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your ECD business in South Africa

The ECD Day Care Business Plan package consist of 4 files

  1. ECD Day Care Business Plan – PDF file (Comprehensive – 87 pages)
  2. ECD Day Care Centre Business Plan – Editable Word File (Comprehensive – 87 pages)
  3. ECD Day Care Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 48 pages)
  4. ECD Day Care Centre Business Plan Automated Financial Statements – (Editable Excel file)

The financial statements are automated. This implies that you can change eg the number of students, fees etc, and all the other financial statements will automatically adjust to reflect the change. 

GET THE ECD DAY CARE CENTRE BUSINESS PLAN (PDF, WORD AND EXCEL) - R400 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 400 Rand.

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The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on sales@bizbolts.co.za and we will assist you.

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If you want to purchase multiple business plans at once using Instant EFT then  click here: Business Plans Store

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on sales@bizbolts.co.za and we will assist you.

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