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Executive Summary
Smurfs is a child care center for children that need to be taken care of when parents are busy.
This business makes sure that your child is happy and taken care of well. Smurfs offers a music
program, early child learning classes, and physical activity classes. These activities are designed
to improve the balance of the attitude and physically and/or mentally of your child. We will
enjoy the singing and dancing while getting their first taste of different musical beats and
rhythms. We will also help them get educated for school. Smurfs will help your child by seeing
the different personalities of other people and learn the responsibilities. Our company is for
young children young adults. We try and do our best to help everyone that we can.


Smurfs Mission
Smurfs Child care center exists to provide a safe, developmentally appropriate environment for
preschool and age school age children. Our focus is to provide a stimulating early care and
education experience which promotes early childs social /emotional, physical and
development. Our goal is to support childrens desire to be long-life learners.

Smurfs Objectives
The objectives of Smurfs are as follows:
Make a successful transition from home to school
Feel comfortable and secure in school
Develop social competency with peers and adults
Develop a positive self-concept, respect for others and their ideas
Encourage each child to pay and work well independently and in a group
Provide opportunities for self-expression for each child through language, dramatics,
art, music, and play
Introduce variety of ways to learn


Company Summary
Smurfs is located at 42453 Pumpkin Center 70403 Hammond, Louisiana.
The program space is a size of a football field and includes a music room, 3 class
rooms, 1 area of play room, 1 nursery, a nap time room and a gym. It also includes
a small area for breakfast lunch and snack. It sits on ground that has been
recently cleaned out just for this wonderful company to be on.
Start-up Summary
The start-up expenses for the Smurfs are focused primarily on equipment, play
surfaces, and materials needed for the classes.

Requirements $1,000
Start-up expenses $200
Stationery etc. $1,000
Brochures $3,000
Consultants $1,000
Insurance ` $2,000
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Expenses Assets Investment Loan
Start- up
Start- up
Rent $60,000
Expensed equipment (total startup expenses) $68,000
Startup assets $51,800
Cash required $30,000
Other current assets $0
Total assets $81,800
Total requirements $150,000

Company Ownership
Smurfs is owned by Sam Parnell and a silent partner.

Services
Smurfs offers seven different weekly classes for children new born through 10 years. Activities
are designed to help children develop balance, coordination and other sensory stimuli while
having fun in a group play environment.
Smurfs also offers four music classes. Children 16 months through 6 years get to sing and move
while getting their first taste of different musical beats and rhythms. Teachers introduce
children to new musical styles each week, such as jazz, contemporary and classical tunes.
Activities such as instrument exploration, songs and movement to music are designed to
provide a positive musical experience for parents and young children.
All play and music classes are 30 minutes long and are taught to child-parent pairs in small
groups. The fee is $90 per class. The parents can pick which two weekday day sessions she
wants to attend to her with her child. Each class is 4 weeks long.
Blueberries (newborn) classes address the special needs of new born and their parents.
Activities are designed to gently stimulate the babys learning skills with special toys, singing
and gentle play.
Bluebells (6-12 months) will indulge your childs natural curiosity and other creative ways to
practice emerging skills through fun filled exploration of tunnels, slides, climbers, songs
movement activities, parachute play and more.
Buttons (toddlers) will use equipment and activities to learn cause and effect coordination,
balance and motor skill development. Playful movement activities and equipment exploration
build pre-and early walking skills, while songs enrich emerging language.
Blueice(24-30 months) changenges a childs growig body with slides, climbers, balls and tunne;s.
Activities also focus on language skills and social interaction.
Popsicles (25-36months) will use activates such as lap rides, dancing and instrument
exploration of fun. Pitch and tone are exploration to help children develop a sense of steady
beat and creative an atmosphere of fun. Pitch and tone are explored through songs and
listening activities. Every 2 weeks a new musical style in introduced, exposing your child to a
variety of musical genres such as Latin, rock n roll, and classical for the musical learning
adventure.
Blue stars (37-38months) are designed to support and challenge emerging skills together youll
share a world of music. Children are encouraged to discover their singing voice and make music
of their own as they explore different instruments. Self-esteem and social skills get a real boost
as your child engages in group songs, chants and finger plays and imagination and listening skills
build as children express themselves to music.
Glories (48months-10yr) remain reviewing what they have learned in the past and also able to
review what they are doing in school to keep them educated over the summer and also when
theyre home after school (home-work).
Hydrangeas (10yr.-) help with the other children, homework after school, physical activity area,
etc.

Market Analysis Summary
Over the past 4 years, there has been a tremendous housing growth in the affluent northeast
area of the city. To date, 3,400 new housing units have been built in the area to accommodate
the growth of the citys population. Most these units are being bought or rented by young
families with young children.
Currently there is a park program servicing the area. But, they are deciding to tear it down and
build a bigger more organized park to serve for the 15,000 families in the area.
The area also has 15 private child centers that serve over 1,500 children, ages one to four. It is
estimated that there are 4,000 children in the northeast Hammond under the age of four.
Currently there are no other activities or music programs in that serve that serves the
preschoolers.
Smurfs will purse both the children at home and children at the private child care centers.

4.1 market Segmentation
At home preschoolers
Childcare preschoolers


Market Analysis
Potential customers growth year1 year2 year3 year 4 year5 CAGR
At home preschoolers 10% 3,400 3,740 4,114 4,525 4,978 10.00%
Childcare preschoolers 20% 1,600 1,920 2,304 2,760 3,318 20.00%
Total 13.49% 5,000 5,660 6,418 7,290 8,296 13.49%

Strategy & Implementation Summary
Smurfs will start by sending direct mailing to parents of young children in northeast
Hammond. The mailer will announce an open house invitation to visit the facility; in addition
Smurfs will offer a 30% discount on its activity and music classes.

5.1 Sales Strategy
The sales strategy of Smurfs will be built from a base if satisfied customers. The program will
offer 30% discount on class fees for each successful referral to Smurfs. We will also offer one
session for visits for any parent and child interested in exploring our program.

5.1.1 Sales Forecast
Smurfs anticipates that may be weak month for classes. Enrollment will increase steadily from
July on. The following is the sales forecast for Smurfs.









Sales Forecast
Year 1 Year 2 Year 3
Sales
Classes $233,000 $258,000 $299,000
Parties $11,200 $14,000 $16,000
Total Sales $244,200 $272,000 $315,000

Direct Cost of Sales Year 1 Year 2 Year 3
Classes $11,500 $9,800 $11,300
Parties $0 $0 $0
Subtotal Direct Cost of Sales $11,500 $9,800 $11,300

Management Summary
Krislyn Kirkpatrick will be the director of the program. She has been an educator for over 20
years and has been instrumental in the development of Hammonds pre-school programs, Most
recently; Krislyn was the youth activity planner and coordinator for the city of Hammonds park
and recreation department. She managed a team of ten that organized and schedule all youth
activity offered by the city.

6.1 Personal Summary
The personnels of Smurfs will be as follows:
Director
Teacher (5)
Class aides (7)

Personnel Plan
Year 1 Year 2 Year 3
Director $36,000 $38,000 $40,000
Teachers $90,000 $96,000 $102,000
Aides $54,000 $57,000 $60,000
Total People 12 12 12

Total Payroll $180,000 $191,000 $202,000

Financial Plan
7.1 Break-even Analysis
The monthly break-even point is presented in the following table and chart.


Break-even Analysis
Monthly Revenue Break-even $20,918
Assumptions:
Average Percent Variable Cost 5%
Estimated Monthly Fixed Cost $19,933

7.2 Projected Profit and Loss
The following table and chart highlighted the projected profit and loss for three years.





Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $244,200 $272,000 $315,000
Direct Cost of Sales $11,500 $9,800 $11,300
Other Production Expenses $0 $0 $0
Total Cost of Sales $11,500 $9,800 $11,300
Gross Margin $232,700 $262,200 $303,700
Gross Margin % 95.29% 96.40% 96.41%
Expenses
Payroll $180,000 $191,000 $202,000
Sales and Marketing and Other Expenses $2,400 $3,000 $3,000
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $3,000 $3,000 $3,000
Insurance $4,800 $4,800 $4,800
Rent $22,000 $22,000 $22,000
Payroll Taxes $27,000 $28,650 $30,300
Other $0 $0 $0
Total Operating Expenses $239,200 $252,450 $265,100
Profit Before Interest and Taxes ($6,500) $9,750 $38,600
EBITDA $6,0000 $9,750 $38,600
Interest Expense $7,549 $6,751 $5,918
Taxes Incurred $0 $900 $9,805

Net Profit ($14,049) $2,099 $22,877
Net Profit/Sales -5.75% 0.77% 7.26%

7.3 Project cash flow