When developing a comprehensive financial model for initiating a daycare service business, it's crucial to incorporate certain key assumptions. In my approach, I've factored in constraints related to the capacity of different types of care, along with two additional sources of revenue.
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I dedicated a significant amount of time to strategizing the revenue model for this business. Initially, I contemplated implementing an hourly fee structure and a package-based model that would allow parents to purchase care for a total number of days. However, after thorough research, I discovered that the most prevalent approach in the industry is to charge monthly recurring fees that vary by age group and offer a fixed number of care days per week. Additionally, incorporating charges for drop-in services and registration fees proved to be pertinent.
Template Features:
- All timing assumptions based on 'month number' rather than actual dates (a new timing convention).
- Configure up to 11 care types for recurring monthly tuition fees.
- Define start month, initial fee, fee change over time.
- Define seasonality by a percentage of maximum capacity achieved per service type per month.
- Define how capacity changes over time (ramping up) by type.
- Includes revenue streams for drop-ins (two types) and registration fees.
- Includes direct costs based on the cost per child count per month per service type and cost per drop-in.
- Includes staffing assumptions based on their start month, count, and starting monthly wages as well as an option for payroll taxes / benefits for each type.
- Model for up to 120 months with an option for exit value based on trailing 12-month EBITDA.
- Includes capex schedule for depreciation expenses and proper cash flow forecasting.
- Includes a joint venture schedule if you are including outside investors.
- Offers the option to use debt to fund operations.
- 3 Statement Model (Income Statement, Balance Sheet, Statement of Cash Flows) Monthly and Annual
- Monthly and Annual Pro forma Detail
- DCF Analysis with NPV, IRR, ROI, and Equity Multiple
- Project View, Owner/Operator View, Investor View
- Executive Summary
- Visualizations
