Nursery School Business Plan

This business plan is about opening a nursery school in Madinat Bin Mohammad Zayed in Abu Dhabi. A business plan shows the compatibility of the business with various positive and negative points. There is a need for opening a kid’s nursery school. As far as the need for this business to set up is concerned, the population of the city is increasing at a very high rate. The reason behind this is the high per capita income of this city. A huge development is taking place in the city in all the terms. People from all over the world are trying to shift their job or their business to this city. Hence there has to more and more nursery schools for providing them the best early education to build their future. The biggest concern for any one living in Abu Dhabi is the education because usually the Muslim countries do not give that much an importance to educational system. This concern of the people living in the city should be knocked out of their mind by providing them the best nursing education. Little Angel Kid’s Nursery School will provide all that is required.

1.1 OBJECTIVES

The main goals and objectives of Little Angel Kid’s Nursery School are as follows:

• To maintain friendly, secure and motivating surroundings that excites and gives confidence to the charm of knowledge.
• To care for every child in the School society as a personality, appealing their assistance and activities.
• To build up a nice atmosphere of interaction among all the kids and jointly advance the excellence of knowledge.

1.2 MISSION

• Our mission is to make every child live with a confidence and with a kind self respect in him or her and make them very well prepared for the long term race of life which will provide a proper self satisfaction to the parents as well to us.

1.3 KEY to Sucess

Critical success factors for any company are the factors which make the company succeed in a long term race. Critical success factors for Little Angel Kid’s Nursery School are as follows:

Success factor 1: A concerned and associated educational society.

Success factor 2: A capable and attractive curriculum-based study

Success factor 3: A supple and sustainable educational surroundings.

2.0 COMPANY Summary

ABC group is a company which will soon be in the market of Abu Dhabi with its first launch as Little Angel Kid’s Nursery School. At Little Angel Kid’s Nursery School, we will ensure a sense of laughter and creativity among the kids along with the best studies possible which will build these small kids for the future in a best possible way. Little Angel Kid’s Nursery School will provide them the best possible services to the kids to make them perform very well in the their educational prospects as well as in their co- curricular.

2.1 COMPANY ownership

The Company is being solely owned by the owner Mr. X. But for starting up the business or opening a nursery school in Abu Dhabi, one or more venture capitalists are needed who will invest money in the project. Hence the school will be owned by Mr. X, Mr. Y and Mr. Z. where all will own an equal amount of share of 33% each. This means that this is a joint proprietor ownership.

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The reason for enrapturing this form of ownership is that Abu Dhabi is a city which involves huge investment if any business is to be started. For such a huge amount of money there should have somebody who can have the capability to invest in the business. As the city is highly expensive it requires lots of money to purchase or take a land on rent. As we have decided to purchase the land, hence any bank will not obviously give money for entire requirements to be fulfilled. Hence we need venture capitalists in our business.

2.3 Location and Facilities

We have planned to open up our school in Madinat Bin Zayed. This is a very popular place of Abu Dhabi. We will have to take up a building in this place which can fulfill our desired requirements. There will be some physical requirements of the location for the opening the school:

Amount of space: amount of space needed for the fulfillment of our requirements would be such that we need the followings:

For school

Six class rooms

One staff room

One principal room

One meeting room

One Dean room

One small swimming pool for kids

Two big halls for playing

One auditorium

4 toilets

For hostel/ day boarding

Two big halls

4 toilets

1 mess

Type of building: type of building should be such that if in the future we want to extend our nursery section then we should have some space for our future plans as well. Building or land to be taken should not be at all residential because we are going to use it for the commercial purpose. A good parking lot should also be there. A good facility of power should be there.

3.0 Services

Little Angel Kid’s Nursery School is a mixed curriculum school for children between the age group of 1 year to 4 years. Here by mixed curriculum, we can depict that there is no particular curriculum that is followed in the school. It will be a nursery school with features of the entire curriculum in one, be it a British Curriculum, Arab curriculum or Indian curriculum. We are a quality service provider. Hence the main aim of the school is to satisfy the parents of the small kids by a stream lined flow of education provided to the kids.

3.2 Competitive Comparison

Core competencies explain the types of competition that we will be facing in the market. Basically there is only one type of competition that we will be facing in the market. There will not be much of indirect competition but there will be only direct competition among several nursery schools in Abu Dhabi. There are some very good schools those will give us a solid fight. They are Stepping Stones Preschool, Humpty Dumpty and first step Nursery.

3.3. Fullfillment

There are very less number of kid’s nurseries in Abu Dhabi.

The government is not supporting the opening of public schools in the city. [1] 

There are more and more expats that are coming from all over the world. The credit goes to high development of the city that leads to the huge outsourcing of the high level employees.

4.0. Market Summary Analysis

Demographic profile of Abu Dhabi

According to the demographic profile of the city, there are more than 120,000 children which are below the age group of 10 years. This is around 14 per cent of the whole population. With the arrival of more and more people coming to work in the city or setting up a business in the city, there is an increment in the requirement for more and more nursery schools in the city.

4.1. MARKET Segmentation

Report 1

We have just depicted that there are only around sixteen good nursery schools in the city. And more over there is an arrival of more and more foreign families to this city. This has led to an increase of the overflow of the nursery students in a school. Obviously, if there is more student than the seats available then it would be a problem for both management and for the parents as well. The situation is that the students overflow has seen a record length. This has made the parents make their children sit at home. This is really a matter of frustration for the parents as there are really less number of nursery schools in the city. This makes the parents as well as the government of Abu Dhabi worried. [2] If the owners of these nursery schools are asked, then they have a view that it is really difficult to open new nurseries by them or to extend the existing nurseries as it would not help the situation improve. According to the owners of several schools, this is the worst year in the history of their lives as far as the admission for the nursery students are concerned. This report suggests that there is a huge requirement of the nursery schools in the city and as far as the facilities are concerned in the school, it is obvious far better to have extra ordinary facilities in the school so as to attract the parents towards the school.

4.2. SERVICE Business Analysis

Report 2

The rush of the students admitting for nursery schools are that much high that there are large numbers of waiting lists for intake of the students and still schools are ignoring their admissions because they do not have the seats available with them. Following is the list of some highly reputed schools with their waiting list for admitting the students.

Because of the above effects, several parents have decided to make their children stay at home and learn at their place only till they are not eligible for the primary schools. There is a huge fight for getting the admissions in the nursery schools in Abu Dhabi. This report easily suggests that there is a big requirement for nursery schools in the city and we can also take the fact that parents are dying to admit their children in the nursery schools and they are not getting the chance. So this can be kept in mind and several advantages can be drilled out of that.

Report 3

Abu Dhabi is the most expensive city of UAE as far as owning the land or taking it at rent is concerned.

3

Various schools are unable to expand their institution or build up a new branch of the existing school because the rents of the building are really high that according to them opening a new branch or expanding the school would be non profitable. We can see from the above graph that there is a remarkable increase in the rates of both rents and owning a property in Abu Dhabi.

Ms Shaban, head mistress of Bright Beginnings thinks that it would be better to buy the plot and built it to run the school. That would be a deal that can make them give profit. But after some time she realized that it is a difficult task as there are several government complications that would come in between.

But there is a different perspective of owner of Humpty Dumpty Nursery school. According to him renting is no longer a long term process and hence he is keen interested in opening a new branch of Humpty Dumpty in the city.

The above report shows us a negative factor for opening up a nursery school in the city. The only problem that will come is the money because there will be a huge initial investment in this business as the rents of buildings are really high and owning a building is not at all an easy task.

4.2.1. BUSINESS Participants

As far as the present scenario is concerned, size of the market is very much restricted. There are very low numbers of nursery schools in the city as compared with the population of children of age group 2 to 4 years. With the reference to the size of the market, we mean two things, the population of the kids in the city and the number of nursery schools to admit them. The population of the kids are around or more than 100,000 and there are very less number of nursery schools in the city.

Demand for more nursery schools in the city is directly proportional to the more and more increase in the expats coming to the city. Abu Dhabi is a city which is developing at a very high rate. More and more people from all around the world are coming to get settled in this city. This has been increasing the demands for more number of nursery schools. The fact that there are large numbers of expatriates is making several countries believe that there is a need for more international schools in the city so as to fulfill the needs of these expats (Business Times, 2007).

4.2.2. DISTRIBUTING a Service

All the services described in the service description will be distributed to the little kids.

4.2.3. MAIN Competitors

ABC Nursery

Asian International Nursery and Kindergarten

Bright Beginnings Nursery and Pre-school

Eduscan Nursery and Day care

First step Nursery

Future Nursery

5.0. STRATEGY and Implementation Summary

As we have formulated our niche as well, now we will have to outline a marketing strategy that will be suited for our marketing plan and will be according to our niche. On the basis of the trends we have seen from the above marketing, we can derive several marketing strategies. They are as follows:

5.1. MARKETING Strategy

There are different types of marketing strategies needed, like

Pricing strategies

Promotional strategies

5.1.1. Pricing Strategy

Method of setting up the prices or in our case fees of the students is obviously a determining factor for the customers. Though we have depicted in the marketing analysis that the competition in the market for the nursery schools in Abu Dhabi is really low, still we can say that pricing is an important factor for the customer. In our case the main reason for it to be significant is the financial crisis of 2008. This is biggest reason that we now have to very carefully take care of the pricing strategy.

Our school will have a maximum capacity of 150 students in all. This is not at all a big number. Hence we can say that our pricing that we have depicted in the marketing analysis is absolutely correct because ours is not a big business. We are just starting with a low scale business hence a very small price will obviously affect the business and incur huge amount of losses. Hence we have kept a pricing strategy of the average price or a bit low than the competitors. Pricing includes very less fees amount of the kids that will be studying in the afternoon shift. Basically, kids from lower middle class will come to this place.

5.1.2. Promotional Strategy

Promotion means that how can we make the kids know that we are coming to the market with some product for them. Here, in case of Little Angel Kid’s Nursery School, we will need to promote our school before we open up our school in order to realize the parents know that some excellent nursery is coming in the market so that they can wait for us before putting their kids to some other nursery.

There can be several techniques by which we can promote Little Angel Kid’s Nursery School. These are as follows:

Advertisements: Advertisements are very much necessary to start up a new project. The main reason for the advertisement is that when ever a new business is to be started like in our case opening up of Little Angel Kid’s Nursery School, it is very much necessary to gather attention of the local population. This could only be possible when they will know about us and the only way to make them know about us is the advertisements. We can have advertisement in the following ways:

Television

Newspapers

Electronic advertisements

Public Relations

Several promoting Events

Alliances

NEWSLETTERS

CATALOGS

5.2. SALES Strategy

Sales forecast is determined under sales strategy

6.0. Management Summary

6.2. MANAGEMENT Team

Management and organization will describe about whom all will be there in the business. This means that what will be the human resource structure of the school which means that who will be the employees in the school.

As far as the main position of the school is concerned, there will be a dean of the school who will the chair person of the school and under whom all the day to day management of the school would be held. Obviously, the dean of the school is going to be one or all among the three main partners of the business, Mr. X, Mr. Y and Mr. Z. In case of the incapacitation of the dean, there would be a signing authority but most of the major decisions would be taken in presence of the dean.

6.3. MANAGEMENT Team Gaps

There are several gaps between the team members:

Language barrier

Income

7.1. GENERAL Assumptions

Sales of the Nursery school is kept constant for the entire year

Effect of recession is not taken into account

7.2. Key Financial Indicators

There are mainly four key financial indicators:

Break even analysis

Profit and loss statement

Cash flow statement

Balance sheet