BUSINESS PLAN

DORCAS’ DAYCARE

COURSE CODE: 2805/307

INDEX NUMBER:5341040035

PRESENTER: DORCAS EKAI

SUPERVISOR: MR. MURGOR

EXAM CENTRE: AFRICAN INSTITUTE OF RESEARCH AND DEVELOPMENT

STUDIES

PRESENTED TO THE KENYA NATIONAL EXAMINATION COUNCIL IN PARTIAL

FULFILMENT FOR THE AWARD OF DIPLOMA IN CHILD CARE AND

PROTECTION

EXAM SERIES: MARCH 2024

DECLARATION
I declare that this is my original work and all rights reserved. No part of this work covered by the

copyright here may be reproduced or used in any form or any means without prior permission

from author

STUDENT NAME:DORCAS EKAI

SIGNATURE:………………………………..

DATE:………………………………………..

SUPERVISOR NAME: MR MURGOR

SIGNATURE:…………………………………

DATE………………………………………….

i
DEDICATION
I dedicate this work to my beloved family you are the best in the world and words cannot express

my deepest appreciation and affection have for you. I love you and thank you very much for your

continued support and care to this far God bless you

ii
ACKNOWLEDGEMENT
First I thank God for bringing me this far.. Thank you for your unconditional love and care that

you have bestowed to me and for being my redeemer in the whole world.

I also want to appreciate the support and encouragement from my fellow colleagues who gave

me humble time in my course, more so during the writing of this plan. God bless you all, and

may He provide the desires of your heart.

iii
TABLE OF CONTENTS

DECLARATION ............................................................................................................................. i

DEDICATION ................................................................................................................................ ii

ACKNOWLEDGEMENT ............................................................................................................. iii

TABLE OF CONTENTS ............................................................................................................... iv

Executive Summary ...................................................................................................................... vii

CHAPTER 1: Introduction ............................................................................................................. 1

1.0 BUSINESS DESCRIPTION ..................................................................................................... 1

1.1 MISSION STATEMENT ......................................................................................................... 1

1.2 BUSINESS NAME ................................................................................................................... 1

1.3 LOCATION OF BUSINESS .................................................................................................... 1

1.4 INDUSTRY .............................................................................................................................. 2

1.5 BUSINESS GOALS ................................................................................................................. 2

1.6 NATURE OF OPPORTUNITY ............................................................................................... 3

1.7 VIABILITY .............................................................................................................................. 3

1.8 ENTRY AND GROWTH STRATEGY ................................................................................... 3

1.9 SWOT ANALYSIS .................................................................................................................. 4

CHAPTER 2: Marketing Plan ........................................................................................................ 6

2.0 MARKETING PLAN ............................................................................................................... 6

iv
2.1 MARKETING OBJECTIVES .................................................................................................. 6

2.2 CUSTOMERS AND MARKETS ............................................................................................. 6

2.3 PRICING STRATEGY ............................................................................................................. 7

2.4 SALES TACTICS ..................................................................................................................... 7

2.5 ADVERTISING AND PROMOTION STRATEGY ............................................................... 7

2.6 DISTRIBUTION STRATEGY ................................................................................................. 8

2.7 COMPETITION ....................................................................................................................... 8

2.8 COPING WITH CHANGE....................................................................................................... 8

CHAPTER 3: Organization Plan .................................................................................................... 9

3.0 ORGANIZATION PLAN ......................................................................................................... 9

3.1 KEY MANAGEMENT PERSONNEL AND QUALIFICATIONS ........................................ 9

3.2 RECRUITMENT, TRAINING & PROMOTION .................................................................. 10

3.3 COMMUNICATION .............................................................................................................. 11

3.4 OTHER PERSONNEL ........................................................................................................... 11

3.5 REMUNERATION................................................................................................................. 12

3.6 INCENTIVES ......................................................................................................................... 12

3.7 LICENCE, PERMIT AND BY-LAWS .................................................................................. 12

3.8 SUPPORT SERVICES ........................................................................................................... 13

3.8.1 Banking Services ................................................................................................................. 13

3.8.2 Telephone Services .............................................................................................................. 13

v
3.8.3 Legal Service ...................................................................................................................... 13

3.8.4 Auditing Services ................................................................................................................. 14

3.8.9 Medical services................................................................................................................... 14

3.8.10 Insurance services .............................................................................................................. 14

CHAPTER 4: Operational Plan .................................................................................................... 15

4.1 OPERATION FACILITIES AND CAPACITY UTILIZATION........................................... 15

4.2 OPERATION STRATEGY .................................................................................................... 15

4.3 OPERATION PROCESS........................................................................................................ 16

4.4 REGULATIONS AFFECTING OPERATIONS .................................................................... 18

4.5 OPERATIONAL TIMETABLE ............................................................................................. 19

CHAPTER FIVE .......................................................................................................................... 20

5.1 PRE-OPERATIONS COST .................................................................................................... 20

5.2 WORKING CAPITAL ........................................................................................................... 21

5.3 CASH FLOW PROJECTIONS (FOR 2025) .......................................................................... 22

5.4 PRO-FORMA INCOME STATEMENTS (FOR 3 YEARS: 2025-2027) ............................. 23

5.6 PRO-FORMA BALANCE SHEETS...................................................................................... 24

5.7 BREAK-EVEN ANALYSIS .................................................................................................. 26

5.8 PROFITABILITY RATIOS ................................................................................................... 26

5.9 PROPOSED CAPITALIZATION .......................................................................................... 27

vi
Executive Summary
BUSINESS DESCRIPTION

Dorcas's Day Care is a specialized childcare facility located in Langas Estate, Eldoret, Kenya,

dedicated to providing comprehensive care for children with special needs. Founded by Dorcas,

who holds a diploma in child care from the African Institute, the daycare prioritizes personalized

attention and support for each child. With a focus on holistic development, Dorcas's Day Care

creates a nurturing environment that promotes the physical, emotional, and cognitive well-being

of special needs children.

MARKETING PLAN

Dorcas's Day Care targets families with special needs children in Langas Estate and surrounding

areas. By offering tailored services and specialized care programs, the daycare aims to attract

parents seeking inclusive and supportive childcare options. Despite existing competition,

Dorcas's Day Care sets itself apart through its emphasis on individualized care and the expertise

of its founder, Dorcas, who brings her knowledge from her diploma in child care.

MANAGEMENT TEAM

Dorcas's Day Care is led by Dorcas, who oversees all operational aspects and ensures the

effective implementation of specialized care programs. With her background in child care and a

passion for serving special needs children, Dorcas is supported by a team of trained caregivers

and support staff. Together, they are committed to providing a safe, nurturing, and stimulating

environment for every child in their care.

OPERATIONAL PLAN

vii
To meet the unique needs of special needs children, Dorcas's Day Care has invested in

specialized facilities and resources. These include sensory-friendly spaces, adaptive equipment,

and individualized learning materials. The center adheres to strict safety regulations and quality

standards to ensure the well-being and security of all children.

FINANCIAL PLAN

The establishment of Dorcas's Day Care has been made possible through personal investment

and external financing. Dorcas has contributed personal funds, supplemented by a loan and

owner's equity. The initial investment is allocated towards facility setup, equipment acquisition,

and operational expenses. The loan will be repaid over a two-year period, reflecting Dorcas's

commitment to the long-term success and sustainability of the daycare.

viii
CHAPTER 1: Introduction

1.0 BUSINESS DESCRIPTION

1.1 MISSION STATEMENT

At Dorcas's Day Care, our mission is to provide specialized and compassionate care for children

with special needs, fostering their holistic development and empowering them to reach their full

potential in a supportive and inclusive environment.

1.2 BUSINESS NAME

Dorcas's Day Care, named after its founder Dorcas Ekai, is situated in Langas Estate, Eldoret,

Kenya. The facility occupies a central location within the community, offering convenient access

to families in need of specialized childcare services.

Address:

Dorcas's Day Care

Langas Estate

PO Box 1254

Eldoret

1.3 LOCATION OF BUSINESS

Strategically located within Langas Estate, Dorcas's Day Care serves as a vital resource for

families seeking quality care for their special needs children. The facility is easily accessible via

major roads and is situated in close proximity to schools, institutions, and residential areas.

Establishing the daycare in Langas Estate was a deliberate decision, considering factors such as:

• Availability of a diverse customer base within the community.

1
 • Limited competition in the provision of specialized childcare services.

• Accessible infrastructure, including roads, utilities, and amenities, facilitating smooth

operations.

• Growing demand for inclusive childcare solutions in the region.

Dorcas's Day Care operates as a sole proprietorship under the management of Dorcas, leveraging

her expertise in childcare and commitment to excellence.

1.4 INDUSTRY
Dorcas's Day Care operates within the childcare sector, catering specifically to children with

special needs. As a service-oriented business, the daycare focuses on providing tailored care

programs and personalized support to meet the unique needs of each child. While competition

exists within the broader childcare industry, Dorcas's Day Care distinguishes itself through its

specialization in serving special needs children and its dedication to quality care.

1.5 BUSINESS GOALS

The primary goals of Dorcas's Day Care include:

• Providing self-employment opportunities for Kenyans and fostering career development

for employees.

• Expanding business operations and services, including the introduction of specialized

programs and facilities.

• Enhancing customer relations and satisfaction through personalized care and responsive

service delivery.

• Maximizing profitability through efficient operations and strategic growth initiatives.

2
Dorcas's Day Care aims to become a trusted partner for families navigating the challenges of

raising special needs children, offering a nurturing and supportive environment where every

child can thrive.

1.6 NATURE OF OPPORTUNITY

As a pioneering venture in the provision of specialized childcare services for special needs

children in Langas Estate, Dorcas's Day Care represents a significant opportunity to meet the

growing demand for inclusive and supportive childcare solutions. With Dorcas's expertise,

entrepreneurial spirit, and commitment to quality, the daycare is well-positioned to succeed in

addressing this underserved market segment.

1.7 VIABILITY
The viability of Dorcas's Day Care is underscored by several factors, including:

• Availability of skilled manpower and resources within the community.

• Adoption of modern technologies and best practices to enhance service delivery.

• Supportive government policies and initiatives promoting small-scale enterprises.

• Strong market demand for specialized childcare services for special needs children.

With these strengths and opportunities, Dorcas's Day Care is poised to make a positive impact on

the community while achieving sustainable growth and success.

1.8 ENTRY AND GROWTH STRATEGY

Dorcas's Day Care plans to differentiate itself through the provision of high-quality, specialized

childcare services tailored to the needs of special needs children. The daycare will leverage

various marketing channels, including participation in local events and community outreach

initiatives, to raise awareness and attract customers. Additionally, strategic investments in

3
facilities, equipment, and staff training will enable Dorcas's Day Care to maintain a competitive

edge and expand its service offerings over time.

1.9 SWOT ANALYSIS

Strengths:

• Unique positioning in the market, serving a specialized segment of childcare.

• Commitment to quality and excellence in service delivery.

• Strategic location within the community, facilitating accessibility and convenience for

customers.

• Strong entrepreneurial leadership and management expertise.

Weaknesses:

• Potential challenges related to initial setup and operational logistics.

• Limited resources and capacity in the early stages of business development.

• Competition from existing childcare providers offering general services.

Opportunities:

• Growing demand for specialized childcare services for special needs children.

• Potential for expansion and diversification of services to meet evolving customer needs.

• Collaboration opportunities with local organizations and institutions supporting special

needs children.

Threats:

• Potential regulatory changes impacting childcare operations.

4
• Emergence of new competitors offering similar services.

• Economic factors affecting consumer spending and demand for childcare services.

5
CHAPTER 2: Marketing Plan

2.0 MARKETING PLAN

Dorcas's Day Care will implement a comprehensive marketing plan aimed at promoting its

specialized childcare services for children with special needs. This plan encompasses various

strategies to raise awareness, attract customers, and establish a strong presence within the

community.

2.1 MARKETING OBJECTIVES

The marketing objectives of Dorcas's Day Care include:

• Developing promotional marketing plans to increase awareness of the daycare's

specialized services.

• Conducting competitor analysis to identify strengths, weaknesses, and opportunities

within the childcare market.

• Launching programs and initiatives to introduce Dorcas's Day Care to potential

customers and key stakeholders.

2.2 CUSTOMERS AND MARKETS

The primary customers of Dorcas's Day Care include families with special needs children

residing in Langas Estate and surrounding areas. Additionally, the daycare targets institutions,

schools, hospitals, and community organizations involved in special needs support services. By

offering specialized care programs and personalized attention, Dorcas's Day Care aims to

become a trusted partner for families and organizations seeking inclusive childcare solutions.

6
2.3 PRICING STRATEGY
Dorcas's Day Care adopts a flexible pricing strategy, taking into account factors such as the

target market, cost of production, competitor charges, and profit objectives. The pricing of

childcare services will be determined based on the level of care required, duration of enrollment,

and additional support services provided. Additionally, the daycare plans to offer credit facilities

to customers purchasing services in bulk, ensuring accessibility and affordability for all.

2.4 SALES TACTICS

The owner of Dorcas's Day Care will engage with customers through various channels, including

advertisements, direct interactions, and community events. By actively seeking feedback and

insights from customers, the daycare aims to continuously improve its services and meet

evolving needs. Additionally, Dorcas's Day Care will prioritize hiring personnel with strong

interpersonal skills and a commitment to customer satisfaction, ensuring a positive and

supportive experience for all families.

2.5 ADVERTISING AND PROMOTION STRATEGY

To increase visibility and attract customers, Dorcas's Day Care will implement a multifaceted

advertising and promotion strategy. This includes:

• Installing signposts and directional signage to guide customers to the daycare facility.

• Utilizing local radio stations, posters, brochures, and other print materials to reach target

audiences.

• Offering competitive pricing, discounts for bulk purchases, and promotional gifts to

incentivize customer engagement and loyalty.

• Monitoring the effectiveness of promotional campaigns through metrics such as order

volume and customer feedback.

7
2.6 DISTRIBUTION STRATEGY
Dorcas's Day Care will primarily operate as a facility-based childcare service, with customers

accessing services directly at the daycare center. However, for customers within a radius of one

to three kilometers, the daycare will offer delivery services to their premises. This will be

facilitated by a dedicated delivery van, ensuring convenience and accessibility for all customers.

While the distribution process may incur additional costs, the daycare aims to optimize

efficiency and customer satisfaction through timely and reliable service.

2.7 COMPETITION
Dorcas's Day Care faces competition from other childcare providers within the region, including

general daycare centers and specialized facilities. However, the daycare distinguishes itself

through its focus on serving children with special needs and its commitment to personalized care

and support. By leveraging its strengths and addressing potential weaknesses, Dorcas's Day Care

aims to establish itself as a leading provider of specialized childcare services within the

community.

2.8 COPING WITH CHANGE

As technology and market dynamics evolve, Dorcas's Day Care will remain adaptable and

responsive to change. The proprietor will monitor industry trends, technological advancements,

and customer preferences, ensuring that the daycare remains innovative and competitive.

Additionally, staff will be involved in decision-making processes and encouraged to embrace

change, fostering a culture of continuous improvement and growth within the organization.

8
CHAPTER 3: Organization Plan

3.0 ORGANIZATION PLAN

The organization plan for Dorcas's Day Care outlines the structure, key personnel,

communication strategies, recruitment procedures, and support services essential for the efficient

operation and management of the daycare facility.

director

manager

accountant

sales
supervisor
representative

ass sales rep clerk driver watchman cleaner

3.1 KEY MANAGEMENT PERSONNEL AND QUALIFICATIONS

The table below illustrates the key management roles, responsibilities, and proposed salaries for

Dorcas's Day Care:

Position Duties & Responsibilities Salary

9
 Director - Planning major activities of the business Ksh 30,000

- Ensuring adequate finance for operations

Manager - Staff recruitment and motivation Ksh 18,000

- Supervision of activities

- Ensuring compliance with labor laws

- Planning, market research

- Budgeting, financing

Accountant - Maintenance of accounts Ksh 16,000

- Budgeting, financial advising

- Payroll management

Sales rep - Sales of daycare services Ksh 15,000

Asst. Sales rep - Sales assistance, Ksh 14,500

Supervisor - Procurement of supplies Ksh 14,500

3.2 RECRUITMENT, TRAINING & PROMOTION

Recruitment for Dorcas's Day Care will involve advertising vacancies, conducting interviews,

and selecting candidates based on qualifications and experience. Positions such as Accountant,

Supervisor, Sales rep, will require specific qualifications as indicated in the table below:

Position Qualification

Manager Diploma in Business Administration

Accountant CPA Section Three or above

Sales rep Diploma in Sales and Marketing

Asst. Salesrep Certificate in Business Management

10
 Supervisor Diploma/certificate in Veterinary Studies

3.3 COMMUNICATION
Dorcas's Day Care prioritizes open communication between management and staff to foster a

collaborative and inclusive work environment. Staff are informed of changes through notices and

internal memorandums, and their input is considered in decision-making processes. The

proprietor ensures that all staff are involved in managing change and adapting to external factors

affecting the business.

3.4 OTHER PERSONNEL

In addition to key management roles, Dorcas's Day Care employs support staff to assist with

administrative tasks and facility maintenance:

Position Duties & Responsibilities Salary

11
 Clerk Accounting and record-keeping Ksh 13,500

Driver Deliveries, procurement assistance Ksh 13,000

Watchman Security and property maintenance Ksh1 2,500

Cleaner Cleaning Ksh 12,500

3.5 REMUNERATION
Employees at Dorcas's Day Care receive incentives to motivate and reward their hard work. In

addition to salaries, staff are eligible for salary increments and bonuses based on performance

and business profitability.

3.6 INCENTIVES
The Director and Manager enjoy profit-sharing arrangements, while other staff receive annual

salary increments and bonuses. Watchmen and cleaners receive food items and other incentives

during holidays and festive seasons.

3.7 LICENCE, PERMIT AND BY-LAWS

Dorcas's Day Care complies with legal requirements and obtains necessary permits and licenses

for operation. This includes:

• Single Business Permit from Eldoret Municipal Council (Ksh 2,000 annually)

• Operating permit from the local government (Ksh 1,200 annually)

The business also adheres to trade license regulations and other relevant by-laws.

12
3.8 SUPPORT SERVICES
Dorcas's Day Care offers various support services to ensure smooth and efficient operations.

Dorcas's Day Care is committed to providing high-quality child care services to families in the

Eldoret area. To ensure smooth and efficient operations, the daycare center offers various

support services that help it manage finances, communicate effectively, comply with legal

requirements, and address any operational challenges that may arise.

3.8.1 Banking Services

The first support service offered by Dorcas's Day Care is banking services. These services are

provided by National Bank of Kenya, which is conveniently located at Oloo/Uganda Road in

Eldoret. The bank offers a range of services, including account management, loans, and other

financial services that help the daycare center manage its finances effectively.

3.8.2 Telephone Services

Dorcas's Day Care also offers telephone services through Telecom Wireless, Airtel, and

Safaricom. These services allow the daycare center to communicate effectively with parents,

staff, and other stakeholders, ensuring that all parties are kept informed of important updates and

developments.

3.8.3 Legal Service

Another important support service offered by Dorcas's Day Care is legal advisory services. The

daycare center works with Chebii and Company Advocates, a reputable law firm located at

KVDA Plaza in Eldoret. The legal advisors help the daycare center comply with all applicable

laws and regulations, ensuring that it operates within the bounds of the law and avoids any legal

issues.

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3.8.4 Auditing Services
Auditing services are also provided by Wanda and Associates, located at KVDA Plaza. The

auditors help ensure that the daycare center's financial records are accurate and up-to-date,

providing valuable insights into the center's financial health and identifying areas for

improvement.

3.8.9 Medical services

Dorcas's Day Care also receives business support from Dr. C. Otieno, a Business Doctor located

at KVDA Plaza, Eldoret Hospital. Dr. Otieno provides valuable guidance and advice on a range

of business-related issues, including strategy, marketing, and operations.

3.8.10 Insurance services

insurance services are provided by British American Insurance, which is located at Kiptagich

House, Uganda Road, Eldoret. The insurance coverage helps protect the daycare center against

various risks, including property damage, liability claims, and other unforeseen events. In

conclusion, Dorcas's Day Care is committed to providing high-quality child care services, and

the support services it offers play a critical role in ensuring that the daycare center operates

smoothly and efficiently. By working with trusted partners and service providers, Dorcas's Day

Care is able to provide the best possible care for the children in its care.

14
CHAPTER 4: Operational Plan
Dorcas's Day Care is a specialized childcare facility located in Langas Estate, Eldoret, Kenya,

dedicated to providing comprehensive care for children with special needs. Founded by Dorcas,

who holds a diploma in child care from the African Institute, the daycare prioritizes personalized

attention and support for each child. With a focus on holistic development, Dorcas's Day Care

creates a nurturing environment that promotes the physical, emotional, and cognitive well-being

of special needs children.

4.1 OPERATION FACILITIES AND CAPACITY UTILIZATION

Dorcas's Day Care is equipped with specialized facilities and resources to cater to the unique

needs of children with special needs. The table below outlines the key facilities and their

capacities:

Facility Description Capacity

Sensory Room Equipped with sensory toys, lighting, and materials 10 children

Therapy Room Space for individual and group therapy sessions 8 children

Outdoor Playground Accessible playground equipment and safety features 12 children

Quiet Room Calm and quiet space for relaxation and rest 6 children

4.2 OPERATION STRATEGY

The operation strategy of Dorcas's Day Care focuses on providing individualized care and

fostering holistic development for children with special needs. This includes:

• Personalized Care Plans: Each child receives a personalized care plan tailored to their

specific needs and abilities.

15
 • Qualified Staff: Dorcas's Day Care employs qualified and experienced staff trained in

special education and child development.

• Inclusive Environment: The daycare promotes an inclusive environment where children

with special needs can interact and learn alongside their peers.

• Collaborative Approach: Dorcas's Day Care collaborates with parents, therapists, and

other professionals to ensure comprehensive support for each child.

4.3 OPERATION PROCESS

The operation process of Dorcas's Day Care involves the following steps:

1. Admission:

During the admission process, parents or guardians are required to provide detailed

information about their child's medical history, including any illnesses, allergies, or chronic

conditions they may have. The child's developmental milestones, such as their ability to

walk, talk, and interact with others, will also be assessed and recorded. Additionally, any

specific needs or accommodations the child may require, such as dietary restrictions or

mobility aids, will be noted on the admission form. This information is crucial for the child's

caregivers to provide the best possible care and ensure their safety and well-being while in

their care.

2. Assessment:

At our organization, we believe that every child is unique and has their own set of needs,

strengths, and challenges. That's why we provide a comprehensive assessment, conducted by

our team of qualified staff, to ensure that we understand each child's individual requirements.

Our staff evaluates various aspects of a child's development, including their cognitive,

16
 emotional, and social skills. Based on this assessment, we identify goals that are specific to

the child's needs and abilities, which we use to create a personalized plan for their growth

and development. We strive to provide a safe and nurturing environment that fosters each

child's potential, setting them on a path to success. Individualized Care Plan: Based on the

assessment, a personalized care plan is developed for each child, outlining specific

interventions and goals.

3. Daily Activities:

Children enthusiastically participate in a diverse range of activities, thoughtfully designed to

strengthen their physical, cognitive, and emotional abilities. Sensory play activities, which

stimulate the senses through exploration and experimentation, help children develop their

motor skills, creativity, and problem-solving abilities. Therapy sessions, which are tailored to

each child's unique needs, provide a safe and supportive environment for children to work

through any emotional or behavioral issues they may be experiencing. Educational games, on

the other hand, promote cognitive development and help children learn new concepts and

skills in a fun and engaging way. By engaging in these activities, children not only grow and

develop but also have fun while doing so. Monitoring and Evaluation: Progress is regularly

monitored and evaluated to track each child's development and adjust interventions as

needed.

4. Parental Involvement:

Our program emphasizes the importance of involving parents and guardians in their child's

education and development. To achieve this goal, we organize regular meetings, workshops, and

conferences where parents can connect with teachers and other parents, learn about their child's

17
progress, and provide feedback. During these meetings, parents will have the opportunity to

discuss their child's strengths, challenges, and goals with the teacher and receive personalized

advice and support. They will also be informed about the curriculum, class activities, and school

policies, so they can better understand and support their child's learning. In addition to these

formal meetings, parents are encouraged to communicate regularly with the teacher and

participate in school events and activities. By working together, we can create a supportive and

engaging learning environment that benefits the child's academic and personal growth.

4.4 REGULATIONS AFFECTING OPERATIONS

Dorcas's Day Care takes great care to abide by all applicable laws, regulations, and guidelines

concerning childcare facilities and special education services in Kenya. To ensure that we

provide a safe and nurturing environment for the children in our care, we obtain all necessary

licenses and permits from the relevant authorities.

We also adhere to strict health and safety standards, including regular cleaning and disinfecting

of our facilities, and conducting background checks on all staff members. In addition, we place a

great emphasis on proper documentation and record-keeping. We maintain detailed records of

each child's medical history, allergies, and other important information. This helps us to provide

personalized care that meets the unique needs of each child in our care.

At Dorcas's Day Care, we are committed to providing high-quality childcare services that give

parents peace of mind and help children thrive and develop.

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4.5 OPERATIONAL TIMETABLE
The operational timetable for Dorcas's Day Care is as follows:

Activity Timeframe

Facility Set-Up Jan - Feb 2025

Staff Recruitment Jan - Mar 2025

Admission Process Feb - Mar 2025

Opening Day April 1, 2025

Ongoing Operations Throughout the year

Monitoring/Evaluation Continuous throughout operations

This timetable ensures a smooth and organized start to Dorcas's Day Care operations, followed

by ongoing monitoring and evaluation to maintain high-quality care for children with special

needs.

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CHAPTER FIVE

5.1 PRE-OPERATIONS COST

The pre-operations cost for Dorcas's Day Care includes expenses incurred before the start of

operations. This includes facility setup, staff recruitment, licensing fees, and initial marketing

expenses. The table below outlines the pre-operations cost:

Expense Amount (KES)

Facility Setup 300,000

Staff Recruitment 50,000

Licensing Fees 20,000

Initial Marketing 30,000

Total Pre-Operations Cost 400,000

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5.2 WORKING CAPITAL
Working capital refers to the funds needed to cover day-to-day operational expenses such as

salaries, utilities, and supplies. The estimated working capital for Dorcas's Day Care is as

follows:

Expense Category Amount per Month (KES)

Salaries and wages 200,000

Utilities 30,000

Supplies 20,000

Miscellaneous Expenses 10,000

Total Working Capital (per month) 260,000

21
 Mo nth January February March April May June July August September October November December
inflo ws
Sales (KES) 200,000 220,000 240,000 260,000 280,000 300,000 320,000 340,000 360,000 380,000 400,000 420,000

Other Inflo ws 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 28,000 30,000 32,000
(KES)

0 0 0 0 0 0 0 0 0 0 0 0
Lo ans (KES)
To tal Inflo ws
210,000 232,000 254,000 276,000 298,000 320,000 342,000 364,000 386,000 408,000 430,000 452,000
(KES)
o utflo ws
Rent (KES) 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000

2,000 2,500 2,500 3,000 3,000 3,500 3,500 4,000 4,000 4,500 4,500 5,000
A irtime (KES)

A dv ertis ing 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
(KES)
Purchas es
50,000 55,000 60,000 65,000 70,000 75,000 80,000 85,000 90,000 95,000 100,000 105,000
(KES)
Trans po rt
5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 9,500 10,000 10,500
(KES)
Electricity
8,000 8,500 9,000 9,500 10,000 10,500 11,000 11,500 12,000 12,500 13,000 13,500

22
(KES)
5.3 CASH FLOW PROJECTIONS (FOR 2025)

3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Water (KES)

80,000 85,000 90,000 95,000 100,000 105,000 110,000 115,000 120,000 125,000 130,000 135,000
Salaries (KES)

Mis cellaneo us 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000 23,000
(KES)

To tal Outflo ws 180,000 187,500 194,500 216,000 219,000 233,500 248,500 263,000 278,000 293,000 308,000 323,000
(KES)

Net Cas h Flo w 30,000 44,500 59,500 60,000 79,000 86,500 93,500 101,000 108,000 115,000 122,000 129,000
Day Care. The table below provides a summary of the cash flow projections:

(KES)

Cumulativ e
30,000 74,500 134,000 194,000 273,000 359,500 453,000 554,000 662,000 777,000 899,000 1,028,000
Cas h Flo w
(KES)
Cash flow projections for 2025 outline the expected inflows and outflows of cash for Dorcas's
5.4 PRO-FORMA INCOME STATEMENTS (FOR 3 YEARS: 2025-2027)
Pro-forma income statements provide an estimate of Dorcas's Day Care's revenues, expenses,

and net income over the next three years. The table below summarizes the pro-forma income

statements for 2025, 2026, and 2027:

Year 2025 (KES) 2026 (KES) 2027 (KES)

Revenue

Sales 3,600,000 4,200,000 4,800,000

Other Income 200,000 220,000 240,000

Total Revenue 3,800,000 4,420,000 5,040,000

Expenses

Rent 180,000 180,000 180,000

Airtime 30,000 30,000 30,000

Advertising 60,000 60,000 60,000

Purchases 1,200,000 1,400,000 1,600,000

Transport 120,000 120,000 120,000

Electricity 150,000 150,000 150,000

Water 36,000 36,000 36,000

Salaries 1,440,000 1,680,000 1,920,000

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 Miscellaneous 216,000 240,000 264,000

Total Expenses 3,432,000 3,876,000 4,360,000

Net Income 368,000 544,000 680,000

Note: All figures are in Kenyan Shillings (KES).

5.6 PRO-FORMA BALANCE SHEETS

Pro-forma balance sheets provide a snapshot of Dorcas's Day Care's financial position at a

specific point in time. The table below outlines the pro-forma balance sheets for the end of each

year (2025, 2026, and 2027):

Assets 2025 2026 2027

Current Assets:

Cash and Cash Equivalents 500,000 600,000 700,000

Accounts Receivable 50,000 60,000 70,000

Inventory 100,000 120,000 140,000

Prepaid Expenses 20,000 25,000 30,000

Total Current Assets 670,000 805,000 940,000

Property, Plant, and Equipment:

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Land and Building 800,000 800,000 800,000

Furniture and Fixtures 150,000 170,000 190,000

Equipment 200,000 220,000 240,000

Accumulated Depreciation (50,000) (60,000) (70,000)

Total Property, Plant, and Equipment 1,100,000 1,130,000 1,160,000

Other Assets:

Intangible Assets 30,000 35,000 40,000

Investments 50,000 55,000 60,000

Total Other Assets 80,000 90,000 100,000

Total Assets 1,850,000 2,025,000 2,200,000

Liabilities and Equity

Current Liabilities:

Accounts Payable 50,000 60,000 70,000

Accrued Expenses 30,000 35,000 40,000

Short-term Loans 100,000 110,000 120,000

Total Current Liabilities 180,000 205,000 230,000

Long-term Liabilities:

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 Long-term Loans 200,000 180,000 160,000

Total Long-term Liabilities 200,000 180,000 160,000

Equity:

Owner's Equity 1,200,000 1,400,000 1,600,000

Retained Earnings 270,000 240,000 210,000

Total Equity 1,470,000 1,640,000 1,810,000

Total Liabilities and Equity 1,850,000 2,025,000 2,200,000

Note: All figures are in Kenyan Shillings (KES).

5.7 BREAK-EVEN ANALYSIS

The break-even analysis determines the level of sales required for Dorcas's Day Care to cover its

expenses and reach profitability. The formula for break-even analysis is:

Break-even Point (Units)=Fixed CostsSelling Price per Unit−Variable Cost per UnitBreak-

even Point (Units)=Selling Price per Unit−Variable Cost per UnitFixed Costs

5.8 PROFITABILITY RATIOS

Profitability ratios assess Dorcas's Day Care's ability to generate profits relative to its resources.

Key profitability ratios include:

• Gross Profit Margin

• Net Profit Margin

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 • Return on Investment (ROI)

5.9 PROPOSED CAPITALIZATION

The proposed capitalization for Dorcas's Day Care includes the initial investment required to

start and operate the business. This may include personal savings, loans, grants, or investments

from partners.

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