Preschool Business Plan

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Why Do You Need a

Preschool Business Plan?

As capital and human resource intensive businesses, preschools require careful planning.

From developing a holistic child-focused curriculum, marketing of the business to targeted parents, to hiring and training of the right preschool educators, every step needs to be carefully considered to improve your chances of success.

Here are some reasons for you to consider developing a comprehensive preschool business plan


It helps you to pre-empt any unforseen circumstances that may derail the smooth day-to-day running of your preschool centre.


It increases the likelihood of securing funding from potential investors like Venture Capitalists (VCs) or Business Angels.


It provides you with a road -map of the best practices needed to run and manage your preschool, helping you to avoid the common mistakes made by first-time entrepreneurs.


It acts as a checklist of what you need to do in different stages of your business, and ensures that you bring in the right team of talents to support you in the business.

What Is a Preschool Business Plan?

Starting a preschool is a major undertaking. As experienced preschool entrepreneurs ourselves, we can  help you through the entire process of preschool business planning. To guide you along, here are some of the most important elements that you can find in a preschool business plan.


Preschool Market Analysis

The first and perhaps most important step is to determine if there is a suitable market for your preschool centre.

Are there nearby competitors that may target parents living in your area? Does your target market have sufficient potential customers to make it worth your time, money and effort to start a childcare centre? What about the location that you are in—are your surroundings suitable for young children?


Preschool Curriculum

The importance of having a quality preschool curriculum cannot be over-emphasised. This covers various aspects of pedagogy, child psychology, active learning, experiential learning, and other dimensions of a holistic early childhood education.

Beyond covering the basics like mathematical, reading, writing, and science skills, your programmes should also equip the young kids with life skills, social skills as well as both fine and gross motor skills.

As the preschool years play a big role in a child’s cognitive, social, and emotional development, a high-quality preschool curriculum needs to be a cornerstone for your centre.

    Human Resource Management

    People are the most important assets in any preschool centre. To ensure that you are able to recruit, develop, motivate and groom the right preschool teachers, administrators and support staff, you need to have proper personnel management systems, policies, and structures in your centre.

    A key part of your HR system and processes should involve developing the right training programmes to equip both educators and non-educators with the right skillsets and mindsets to excel at their work. As experienced leaders and managers, our consultants are able to advise and guide you on the best way to optimize your valuable human resources.


    PRESCHOOL Building and Facilities

    As kid-friendly facilities, preschools need to follow certain best practices in their architecture, design and interior layout. From safety and security, optimal dimensions for classroom sizes, playgrounds and play areas, the right bathroom and toilet fixtures, to dedicated areas for food preparation—the best preschools follow strict guidelines to create the ideal learning environment for young children. 

    Beyond meeting these quality building standards for preschools, you need to also ensure that the overall environment is conducive for active play-based learning. This may include the aesthetics of the preschool, as well as the use of colours, designs and patterns.


    Operations Management

    Entrusted with the precious kids of your customers, you need to ensure that every aspect of the daily operations in your childcare facility is well managed. This covers everything from the security and privacy of your kids, their safety at all times, to the management of cash and other valuables.

    Beyond this, your preschool should also consider other factors like the regular management maintenance of your estate, cleaning and disinfecting, as well as the management of unwell or injured children.

    Financial Management

    Starting a brand new preschool can be a significant financial investment. While the potential revenue and profits of your new educational venture can be significant, you need to ensure that you can keep your business afloat in good times and bad.

    Here are some of the most important financial aspects that any preschool should consider:

    • Start-up Funds: How much initial capital do you need? Which sources of funding can you tap on? 
    • Break-even Analysis: At what point of your business would you consider to have broken-even?
    • Return On Investment (ROI) Analysis: How long will it take for you to gain a positive ROI from your preschool? 
    • Financial Planning: Are you able to project your profit and loss, and cashflow for the business in the years ahead? How long is your planning horizon?

    Let’s Grow Your
    Preschool Together