Parenting Center Business Plan

A Mother's Place

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Financial Plan

The following sections will outline the important information on the financial aspects of A Mother's Place.

8.1 Break-even Analysis

The following table and chart show our Break-even Analysis.

8.2 Important Assumptions

Retail sales based on the following assumptions:

1. Start-up growth
• Slow steady growth from September - December.
• The marketing strategies in this plan will be implemented prior to grand opening to build customer base for this period.
• Growth will slow down slightly post holiday season during the month of January.
• Steady growth will begins to pick up from February - August with the implementation of new class. sessions, and more marketing tools.


2. Each time a new class begins each month, it's assumed that the class participants will bring in additional sales revenue (see additional details below).
• StrollerFit® will begin in September.
• Children's classes and birthday parties will begin in October.
• Holiday children's parties will begin during the holiday season (Nov - Dec).


3. These starting projections are based on the actual sales of opening month of a woman-owned shoe store in Capitola, and recent sales of a church/religious store in Santa Cruz. The starting projections are estimated lower than these two stores.

Classes sales based on the following assumptions:

1. StrollerFit®
• StrollerFit® will begin in September at two locations (Westlake Elementary, and at Lighthouse, WestCliff Drive) and continue through December.
• During the holidays, there is no projection of increased enrollment.
• It's a common trend that enrollment for exercise programs increases in January, and one more class will be added at A Mother's Place.
• As the weather warms up again in March, we project increased enrollment will begin and stay steady throughout the summer months.
• One class revenue is based on £7.50 fee per person, 8 participants per class, and 3 sessions per week which equals £780/month.  StrollerFitâ requires a 15% royalty fee of all sales which brings A Mother's Place a total sales of £662/month.
• There is no direct cost of sales involved for StrollerFitâ


2. Children's Classes:
• Each children's class is a 10-week session (Sept - mid Nov).
• One session will begin in September, restart every 10 weeks continuously.
• Another session will begin in October, restart every 10 weeks continuously.
• A total of 3 sessions will be offered starting in January.
• A total of 4 sessions will be offered starting in March.
• Each children's class revenue is based on £9.00 per class, 11 participants, one class per week which is a total of £467/month. 
• In addition, a Winter Playgroup will be offered each month from November - March (during the cold weather months). We project that each month will bring in an additional £200/month. This is based on £10 per month per child, 10 children each Playgroup session which equals £100/month. Each month will have 2 groups.
• Cost of all children's classes combined is projected at £50/per class per month to maintain play and activity equipment.


3. Pregnancy Classes:
• One childbirthing/pregnancy class will begin a 6-week session in October and restart continuously every 6 weeks. A second session will begin in November, and restart continuously every 6 weeks.

Birthday Parties sales based on the following assumptions:

1. Several packages will be offered for Birthday parties, ranging from £500 - £800 per party.
2. No birthday parties will be offered during the month of September.
3. Two birthday parties will be offered during the month of October, and three parties in November.
4. Holiday parties will be offered during the month of December, and a total of 5 parties is projected.
5. We project that a total of 6 parties per month will be held from January - May. During summer months, a maximum of 7 per month will be offered.

Payroll is based on the following assumptions:

1. In addition to the principal owner, a full-time manager (40hr/wk) and part-time manager (16hr/wk) will begin employment in September to cover a 7 day work week schedule.   Due to the owner's deafness, it's vital for a manager to be on-staff at all times to provide customer service on the telephone.
2. A part-time retail employee will be hired in March, when total gross sales reach £45,000, to work during busiest hours.
3. A full-time employee will not be hired until total gross sales exceed £50,000, projected to occur in May.
4. All instructors for StrollerFitâ are part-time, and work one hour per class at £20/hr.
5. All instructors and party coordinators are part-time, and work per class/party at £12.75/hr. The party coordinator will be employed additional hour per party for set-up/clean-up, and planning. The additional hours in October are for training. 

Expenses are based on the following assumptions:

1. Loan repayment is estimated at £163,000 total borrowing, at 8.5% with 6 year term, equaling payments of £2897 per month (principal repayment listed in the Cash Flow, and interest expenses in the Profit and Loss, below).
2. POS System, insurance, payroll processing fees, website, StrollerFit manual, shelving, tumbling equipment and all other equipment are based on actual bids from vendors.
3. We do not expect to hire janitorial services during the first year of operation.  The retail employee will assume the janitorial responsibilities to minimize cost.
4. Rent is estimated at £5,000 per month for a 3,550 square foot space at £1.40 NNN.
5. Space is estimated to provide 1600 sq ft for retail, 1150 sq ft for class/gym room, 400 sq ft for inventory storage and 400 sq ft for office, nursing room and bathroom. 

8.3 Projected Profit and Loss

The following table and chart show the profit and loss projections for the first three years of operation.

8.4 Projected Cash Flow

The following table and chart show the projected cash flow for the first three years of operation. Please note that A Mother's Place will receive cash for all purchases and services. All classes and birthday parties will be paid in advance upon registration.

8.5 Projected Balance Sheet

The following table indicates the Projected Balance for the first three years of operation.

8.6 Business Ratios

A Mother's Place does not fit neatly into any one existing industry. We are a fitness and educational center; we offer children's entertainment (birthday parties, playgroups), and social space for mothers; and we have a retail component, in our gift store. It is, therefore, difficult to compare our projected overall business ratios to any one industry standard, because our revenue stream and costs are mixed.

The following table lists our business ratios, and includes a comparison with standard ratios from the "Children's Goods," Industry (SIC Code 5137.05). These industry ratios obviously reflect only the retail side of our operations.