MAKERERE UNIVERSITY

P.O. Box 7062 Kampala, Uganda Tel: +256 414 531046

Cables “MAKUNIKA” Fax: +256 414 531046
Website: www.mak.ac.ug e-mail: eedept@tech.mak.ac.ug

_______________________ ______________________

COLLEGE OF ENGINEERING, DESIGN, ART AND

TECHNOLOGY
DEPARTMENT OF ELECTRICAL AND COMPUTER ENGINEERING

ENTREPRENEURSHIP GROUP COURSE WORK

O NAME REG NO COURSE SIGNATURE
1. SSEJJUUKO PAUL 13/U/1190 BSTE

2. KAMURALI MAATHE KENNETH 13/U/329 BSTE

3. SEKABIRA DUNCAN 13/U/13573/PS BELE

4. BATURINE BOAZ 13/U/4567/PS BELE

5. SEKYONDA ZUENA ZOE 13/U/22739/PS BBI

6. NJUKI ABDUL JALIR 13/U/12306/PSA BELE

7. NYANGA BRIDGET BIJOUX 13/U/1021 BELE

8. MALOU MATHIANG JOHN 14/U/22832/PS BELE

9. ANGUNDA COLLINS 13/U/21629/PS BBI

10. ANYANGO EUGINE 13/U/3648/PS BBI

11. NSUBUGA UMAR 13/U/1692 BELE

Joy & Jolly
Day Care
Centre
Play, learn and grow together

i
Table of Contents
1 Executive summary .............................................................................................................. 1
1.1 The Market .................................................................................................................... 2
1.2 The Customers............................................................................................................... 2
1.3 The Management Team ................................................................................................. 2
2 Information on the Business ................................................................................................. 3
2.1 Mission Statement ......................................................................................................... 3
2.2 Keys to Success ............................................................................................................. 3
3 Company summary ............................................................................................................... 4
3.1 Revenues and Accounting ............................................................................................. 4
3.2 Inventory and Supplies .................................................................................................. 4
3.3 Legal .............................................................................................................................. 4
3.4 Ownership of the Business ............................................................................................ 4
3.5 History of the Business ................................................................................................. 4
4 Start-up Summary ................................................................................................................. 5
4.1 Current Proposal ............................................................................................................ 5
4.2 Products or Service........................................................................................................ 6
4.3 Location and Hours of Operation .................................................................................. 6
5 Market Analysis .................................................................................................................... 7
5.1 Marketing Strategy ........................................................................................................ 7
5.2 Pricing strategy .............................................................................................................. 7
5.3 Unique selling position.................................................................................................. 7
5.4 Promotion strategy ........................................................................................................ 8
5.5 Conversion strategy ....................................................................................................... 8
5.6 Joint ventures................................................................................................................. 8
5.7 Retention strategy .......................................................................................................... 8
5.8 Financial projections ..................................................................................................... 8
6 Competitive Edge ................................................................................................................. 8
6.1 Sales Strategy ................................................................................................................ 8
6.2 Sales Forecast ................................................................................................................ 9
7 Management Plan ............................................................................................................... 10
7.1 Personnel Plan ............................................................................................................. 10
8 Financial Plan ..................................................................................................................... 12
8.1 Break-even Analysis ................................................................................................... 12

ii
8.2 Projected Profit and Loss ............................................................................................ 13
8.3 Projected Cash Flow.................................................................................................... 14
8.4 Projected Balance Sheet .............................................................................................. 15
References .............................................................................................................................. 16

iii
1 Executive summary
Joy and Jolly Day Care services is a startup organization that provides day care services to the
suburb of Kololo. This mid-sized child care facility serves children from three months to six
years of age for both drop in and full time children.
Unlike our competitors, we offer basic computer skills for the growing child to boost their
technological curiosity and other activities like dance, theatre, gymnastics and arts and crafts all
in one location to bring up an all-around child. This makes Joy and Jolly an excellent place for
parents to take their children.
The business will be formed as a corporation with two stockholders: Mrs. Joy Mukiibi and Mrs.
Jolly Matovu. Each stockholder will own 50% of the issued stocks and equal to their individual
paid-in capital.
Mrs. Joy Mukiibi has more than 25 years of teaching experience in public and private schools.
Mrs. Jolly Matovu has several years of experience in the child supervision and events
organization gained from Girl Scout activities, teaching Sunday school classes, as well as raising
four children.
Additionally, Mrs. Jolly, who will manage the administrative duties of the center, has over 10
years of administrative experience.
With inflation continuing to rise each year, the two retired professionals now require
supplemental incomes. This trend has created a need for quality child care services.
The population growth rate in Kampala is growing rapidly due to the rural urban migration
leading us to anticipate expanding market potential for this industry in our local area. Price,
service, certification and reputation are critical success factors in the child care services industry.
Joy and Jolly will compete well in our market by offering competitive prices, high-quality child
care services, and by maintaining an excellent reputation with parents and the community we
serve.
Joy and Jolly will focus on areas around Kololo including Nakasero, Naguru and uptown which
are upscale community within a 2 square mile radius, boasting over 400 new homes. Our target
customers are dual income, middle-class families who value the quality of education and child
care we provide for their children, ages 3 months to 6years.
We will open for business on 1st January 2016, starting with an initial enrollment of 65 students.
We project healthy revenues by the end of the second year, and expect to nearly triple that by
the end of the third year. Our biggest operating expenses will be compensation at industry
standard rates for our highly-qualified personnel, and insurance in addition to the utilities. We
would like to grow into three campuses, eventually, but growth is planned conservatively, to be
financed from existing cash flow as we go. We anticipate a net profit beginning in our second
year.
To these ends, we are putting significant investment in the business, and are seeking a matching
amount in the form of a business loan.

1
1.1 The Market

The child care market is quite competitive in the Kampala. There are over 50 different facilities.
There are two general types of facilities. The larger style is commercially run, typically a
corporate franchise center. These facilities are both regional and national. There are also many
different smaller locally run and owned faculties. While the largest facilities can host between
20-200 children, the locally run centers typically have a maximum capacity of 20 children.
As mentioned earlier, the market is quite competitive. Joy and Jolly will employ two strategies
to differentiate themselves. The first is a pricing structure where Joy and Jolly’s services will be
priced at 5%-10% less than the larger commercial run facilities. The second differentiating effort
will be benchmarked customer service. A customer-centric philosophy will be infused within the
entire organization. Joy and Jolly will spend extra money to attract and train the best employees.
This is especially important because it is the employees that interact with both the children and
parents and will have the best chance to impress them enough to turn them into a loyal customer
as well as to be vocal in telling their friends about their positive child care experience.

1.2 The Customers

Joy and Jolly will be concentrating on two different target customer segments. The first is full-
time working couples. This group is forecasted to account for 80% of Joy and Jolly's business.
This group is growing at a rate of 25% and there are over 60 potential customers in a 2 mile
radius. The second group of customers are drop in, customers who use the child care services
sporadically, whenever the need arises. This group is growing at 20% and there are 20 potential
families.

1.3 The Management Team

Joy and Jolly will be led by two child care industry veterans, Mrs. Joy Mukiibi and Mrs. Jolly
Matovu.
Mrs. Joy Mukiibi has more than 25 years of teaching experience in public and private schools.
Mrs. Jolly Matovu has several years of experience in the child supervision and events
organization gained from Girl Scout activities, teaching Sunday school classes, as well as raising
four children.
Additionally, Mrs. Jolly, who will manage the administrative duties of the center, has over 10
years of administrative experience.
Joy and Jolly is an exciting opportunity that provides safe and secure child care to the people of
Kololo and its neighborhood. We will reach sustainable profitability over the next three years,
with Ugshs 166,200,000 in sales by year three. Through a combination of well-priced services,
outstanding customer service, and a well-seasoned management team, Joy and Jolly will quickly
gain market share and a reputation as a premier child care provider.

2
Highlights

180,000,000 166,200,000
153,180,000
160,000,000
140,000,000 119,700,000
110,148,000
120,000,000
100,000,000 78,000,000
71,400,000
80,000,000
49,580,000
60,000,000
40,000,000 20,048,000
20,000,000
0
Year-11,900,000
1 Year 2 Year 3
-20,000,000

Sales Gross margin Net profit

2 Information on the Business

2.1 Mission Statement

To provide quality child care services to the ever expanding residential area surrounding Kololo
primary school such as Nakasero, Naguru and others. Joy and Jolly Child Centre focuses on
providing full services with an emphasis on convenient hours, as well as, educational and social
skills development.

2.2 Keys to Success

The keys to success for Joy and Jolly are:

Marketing: Differentiating Joy and Jolly's care giving and educational services from traditional
daycare offerings and interest activity programs.
Service quality: Care giving and educational programs provided by degreed and certified
educators, child care workers, tutors and subject matter industry professionals in a
technologically advanced first-class collegiate environment.
Reputation: Maintaining a highly regarded reputation for excellence in care giving, education
and community involvement and being the employer of choice in our market for child care and
educational talent.
Profitability: Controlling costs and managing budgets in accordance with company goals,
adhering to strategic business plans for growth and expansion and reinvesting in the business
and its employees.

3
3 Company summary
Joy and Jolly Child Care is a start-up managed by two partners. Both have extensive
experience in the child care industry, and have maintained excellent reputations in this same
industry. In addition, these two partners are capable of handling the sales/management and
finance/administration areas, respectively.

3.1 Revenues and Accounting

Revenues will be generated by providing reliable and quality child care services to Kololo area.
Full accounting records will be maintained by Joy and Jolly Child Care. An accountant Mr.
Njuki Abdul will be used for the preparation of business financial statements and taxes.

3.2 Inventory and Supplies

Inventory will be limited to consumable office, cleaning and kitchen supplies. Office and
cleaning supplies will be replenished on as-needed basis. Kitchen supplies, consisting of food
items for meals and snacks, will be purchased weekly.

3.3 Legal

The business will be in compliance regarding the rules and regulations of the KCCA of Protective
and Regulatory Services, ministry of education and the Ministry of Health. The owners will
obtain the required operating licenses issued by the ministry of education (Day Care/Child Care
Licensing and the Child Care Administrators License). Contractual agreements and other legal
services will be provided by the law offices of Kintu and co-advocates.

3.4 Ownership of the Business

The business will be formed as a corporation with two stockholders: Joy and Jolly. Each
stockholder will own 50% of the issued stocks and equal to their individual paid-in capital. The
formal charter and agreement will be in accordance with the laws of the Kampala Capital City
authority and will be drawn up by an attorney Mr Kintu Ronald a re-known city lawyer.

3.5 History of the Business

As a start-up business, there is no history as such. Both owners have experience dealing with
children of all ages. Mrs. Joy Mukiibi has more than 25 years of teaching experience in public
and private schools. Mrs. Jolly Matovu has several years of experience in the child supervision
and events organization gained from Girl Scout activities, teaching Sunday school classes, as
well as raising four children.
Additionally, Mrs. Jolly, who will manage the administrative duties of the center, has over 10
years of administrative experience.

4
4 Start-up Summary
The company founders, Ms. Joy and Ms. Jolly, will oversee fiscal responsibility and handle day-
to-day operations of the business, employing an independent CPA for financial oversight and
will work collaboratively the silent partners and other campus personnel to ensure that this
business venture is a success.

4.1 Current Proposal

As the need for child care services in the Kololo area grows, so will the operation of Joy and
Jolly Child Care Centre. Mrs. Joy and Mrs. Jolly have a total of 20million Ugshs to invest in
this project in the where the building facility already exists.
It is estimated that the start-up expenses will be 8,050,000 Ugshs (including legal costs,
advertising, and related expenses). An additional amount of 50 million Ugshs will be required as
start-up assets. The start-up costs are to be financed solely in equal portions by the owners'
personal funds and optional credit lines and by a 30 million Ugshs 5-year loan. Future expansion,
growth and franchising strategy will be self-financed.

Projected Business Start-up Costs

Start-up expenses
Item Description Amount (Ugshs)
Legal Registration and licensing 1,000,000
Brochures Fliers, and banners 100,000
Stationery Charts, story books, etc. 400,000
Activity supplies Swings, balls, etc. 1,200,000
Food preparation supplies Plates, cups, dishes, sauce 2,500,000
pans, rice , etc.
First Aid supplies Cotton, spirit, bandages, 200,000
etc.
Cleaning supplies Buckets, brooms, brushes, 100,000
rugs, etc.
Nap time bedding Mattresses and bed sheets 1,000,000
Others Dolls, toys, etc. 2,000,000
Total start-up expenses 8,500,000
Start-up Assets
Description Amount
Cash required Van ,computers, 50 million Ugshs
Furniture and equipment.
Other current assets 0
Long term assets 0
Total assets 50 million Ugshs
Total requirements 50 million Ugshs

5
 Start-up funding
Start-up expenses to fund 8500000 Ugshs
Start-up assets to fund 50
Total requirements 58.5 million
Assets
Non cash assets from start-up 0
Cash requirements from start-up 50 million
Additional cash raised 0
Cash balance on starting date 50 million
Total Assets 50 million
Liabilities And Capital
Liabilities
Current borrowing 0
Long term liabilities 30 millions
Accounts payable (outstanding bills) 0
Other current liabilities(interest free) 0
Total liabilities 30 millions
Capital
Planned investment
Owner – Joy 10 millions
Owner – Jolly 10 millions
Other 0
Additional investment requirement 0
Total planned investment 20 millions
Loss at start-up (start-up expenses) 8.5 millions
Total capital 11.5 millions
Total capital and liabilities 50 millions
Total funding

4.2 Products or Service

The purpose of the business is a child care center that will provide services to the Kololo
residential, commercial, and industrial community located within a three-mile radius of the
proposed center location.

4.3 Location and Hours of Operation

The proposed business location will be at Kololo near Kololo primary school. The facility
already exists in a quiet residential neighborhood and is currently owned by Mrs. Joy Mukiibi
who shifted her residence to her hometown in Mityana after retirement from her job.
The business hours will be from 6:30 am to 7:30 p.m. Monday through Friday. The center will
be closed on New Year's Day, Easter holiday and Christmas.

6
5 Market Analysis
The Kololo area is rapidly expanding through residential and commercial development. Joy and
Jolly Child Care Centre specifically targets the working population with children aged three
months to six years who live or work within a three-mile radius of the proposed center location.
Potential exists for services to parents working evening shifts or weekends at commercial and
industrial firms in the city area.
At the present time, there is one child care center that offers direct competition. Some nursery
schools in the surrounding area offer before and after school care, but in the area, primary schools
do not offer such care, nor is it anticipated.

Comparative Competitor Analysis

Product/ Quality Price Service Location Marketing Other
Service Program
Joy and Jolly Child 5 5 4 5 5 5
Care
Dave and Danny 3 4 5 4 4 4
Day Care
ABC Day Care 4 4 4 4 3 3

Note: Range 1-5 (5 being highest/best possible score.)

5.1 Marketing Strategy

Joy and Jolly Child Care will be promoted in various local media. Clients have already begun
promotion by word of mouth. Response has been favorable. Formal advertising is planned to
begin three months before the center is scheduled to open.

5.2 Pricing strategy

Joy and Jolly Child Care Center plans to charge shs.450,000 per month for full time children and
Ugshs.10000 per month for drop in children.

5.3 Unique selling position

At the present time, there is Dave and Danny Day Care that offers direct competition. Whereas
Dave and Danny Day Care is open up to 5pm, Joy and Jolly Child Care Centre will be open up
to 8pm to allow for parents that work late and those affected by the heavy traffic from town to
be able to pick up their children.

7
5.4 Promotion strategy

Joy and Jolly Child Care Centre will be promoted in various local media like the local
newspapers, radio adverts, calendars, business cards, brochures, word of mouth and a sign post.

5.5 Conversion strategy

This will be performed through inviting prospective customers (parents with children but are
reluctant to enroll them in the day care) to come and be part of the social events at the school.
This can make them see the children’s capabilities and be convinced to enroll their children as
well.

5.6 Joint ventures

Joy and Jolly Child Care Centre plan on partnering with the pediatric section of Kololo Hospital
for the referral of new customers. In addition, the day care Centre also plans to partner with
Victorious Education Services to refer parents with children below three years old.

5.7 Retention strategy

This will be done through releasing a monthly magazine showing the school activities so that the
parents are in the know of what is going on. In addition, the first ten parents to pay school fees
will be offered a 10% fees discount for the next month.

5.8 Financial projections

The day care center intends to spend Ugshs 500,000 per month on advertising and service
promotion.

6 Competitive Edge
We start with a critical competitive edge: there is no competitor in our market that is offering
our concept, quality of educational program and child care services. Our educational approach
is unique and we have a resource with over 25 years of child care expertise and over 17 years of
technology savvy. Our positioning on these points is very hard to match, but only if we maintain
the focus in our strategy, marketing, business development, and fulfillment. We should be aware
that the tendency to dilute this expertise with bargain shopping could weaken the importance of
our competitive edge, but we must continue to bolster our value proposition.

6.1 Sales Strategy

Joy and Jolly child Centre will make a significant profit through the excellent care of children.
Even though ABC child Centre charges less, the company will see profit within the second year
due to beneficial word-of-mouth advertising. The company expects to double its' clientele every
six months, for the first 18 months.

8
6.2 Sales Forecast

As the following table shows, the company plans to deliver sales of approximately 78 million
Ugshs in the first year, 119 million Ugshs in the second year, and 166 million Ugshs in the third
year plan implementation.

Sales by Year
SALES (Ugshs)

200000000

150000000

100000000

50000000

0
Year 1 Year 2 Year 3
YEAR
SALES Full time child (per month) SALES Drop in child (per hour)

Sales Forecast
Year 1 Year 2 Year 3
Unit sales
Full time child-month 180 240 300
Drop in child- hour 600 780 800
Total unit sales 780 1020 1200
Unit prices(Ugshs)
Full time child-month 400000 450000 500000
Drop in child - hour 10000 15000 18000
Sales(Ugshs)
Full time child-month 72000000 108000000 150000000
Drop in child-hour 6000000 11700000 16200000
Total sales 78000000 119700000 166200000
Direct unit costs
Full time child-month 30000 32000 35000
Drop in child-hour 2000 2400 2800
Direct cost of sales(Ugshs)
Full time child-month 5,400,000 7680000 10500000
Drop in child-hour 1,200,000 1872000 2520000
Sub total 6600000 9552000 13020000

9
7 Management Plan

Mrs. Joy Mukiibi will be responsible for the overall operation of Joy and Jolly Child Care, while
Mrs. Jolly Matovu will be responsible for the accounting/recordkeeping and administration of
the center. The selection and retention of employees, as well as the expenditure of funds will be
jointly shared.

Employees will be selected depending on the Formal experience, their specialization and their
achievements through their career.
Employees will be hired on a contract basis each employee will apply for a given position
formally and later be invited for an interview. Award of the job opportunity will depend on the
satisfactory of the qualities and skills he/she has that are in line with goals and objectives of the
firm.
The kindergarten will primarily employ about 18 staff members. Each of these will have a
different role to fulfill as described below;

Figure 1 Organization chart

7.1 Personnel Plan

Teaching staff: This will consist of three (3) trained and experienced personnel in child care
ministry. They will be responsible for designing a well-planned scheme that will be applicable
to all the children at the tender age. This will include a small teaching programme and with the
suitable co-curricular activities.

10
Nurse: The firm will employ one (1) nurse who will be trained and experienced in child care
activities. She will responsible for carrying out a daily routine on the kids to monitor and find
out any health uncertainties since at the young age most of the children are vulnerable and may
not be able to explain their health issues. She will be required to be at the premises full time.
Bursar: This position will be occupied by one individual. He or she will be responsible for all
accounting and finance concerned with the kindergarten. He/she will be responsible to receive
any funds and partial rights will be given to him to make a few payments on behalf of the
kindergarten.
Kitchen staff: This department will comprise of three trained personnel who are experts in
preparing children meals. They will be responsible for preparation of three meals a day i.e.
breakfast, lunch and supper. This team will also be responsible for designing an appropriate
meals timetable.
Cleaning staff: This will comprise of two (2) people and will be responsible for the general
cleaning of the entire kindergarten i.e. they will be responsible for sweeping of the compound,
cleaning of the classrooms, toilets, offices etc.
Security personnel: These will be responsible for ensuring that the entire kindergarten most
especially the children are safe. This intended to reduce the number of child theft cases in the
country and also give the parents assurance that their children are in safe hands. This department
will also ensure that the kindergarten is well protected from any violence and harmful attacks
from the public. This position will employ two (2) people.
Care takers: These will be responsible for taking care of the children especially those below the
age of one year. They will be responsible for feeding of these children, bathing them, taking
close care of them as they play and also ensuring that that the kids have proper rest time. This
position will be occupied by five (5) people.
Driver: He will be responsible for picking and dropping the children from their homes using the
van. This will be intended to help parents with busy schedules.

Personnel Plan

Staff Year 1 Year 2 Year 3

Managers (2) 19,200,000 21,600000 24,000,000
Bursar 6,000,000 6,000,000 7,800,000
Care staff 25,200,000 25,200,000 33,600,000
Teaching staff 12,600,000 16,800,000 16,800,000
Support staff 14,400,000 14,400,000 14,400,000
Total people 18 19 21
Total 77,400,000 84,200,000 96,600,000

11
8 Financial Plan

Joy and Jolly Child Care expects to raise 20 million Ugshs as its own capital, and to borrow
30million Ugshs guaranteed from the centenary bank as a 4-year loan. This provides the bulk of
the current financing required.

8.1 Break-even Analysis

The Break-even Analysis is based on the average of the first-year figures for total sales by
units, and by operating expenses. These are presented as per-unit revenue, per-unit cost, and
fixed costs. These conservative assumptions make for a more accurate estimate of real risk.

Break even analysis

450

400

350

300

250

200

150

100

50

0
-15,000,000 -10,000,000 -5,000,000 0 5,000,000 10,000,000 15,000,000

Break-even Analysis
Monthly Units Break-even 200
Monthly Revenue Break-even Ugshs 19,520,000

Assumptions:
Average Per-Unit Revenue Ugshs 97,600
Average Per-Unit Variable Cost Ugshs 7,200
Estimated Monthly Fixed Cost Ugshs 18,320,000

12
8.2 Projected Profit and Loss

As the Profit and Loss table shows, the company expects to continue its steady growth in
profitability over the next three years of operations.

PROFIT YEARLY
49,580,000
50,000,000
40,000,000
Yearly Profit (Shs.)

30,000,000 20,048,000
20,000,000
10,000,000
0
1 2 3
-10,000,000
-11,900,000
-20,000,000
Years

Projected Profit And Loss

YEAR 1 YEAR 2 YEAR 3
Sales 78,000,000 119,700,000 166,200,000
Direct cost of sales 6,600,000 9,552,000 13,020,000
Other production expenses 0 0 0
Total cost of sales 6,600,000 9,552,000 13,020,000
Gross margin 71,400,000 110,148,000 153,180,000
Gross margin (%) 91.4% 92.02% 92.17%

Expenses
Payroll 77,400,000 84,200,000 96,600,000
Sales and marketing 0 0 0
Depreciation 0 0 0
Leased equipment 0 0 0
Certification and inspection 800,000 800,000 800,000
Utilities 1,200,000 1,300,000 1,400,000
Insurance 1,200,000 1,500,000 1,800,000
Rent 0 0 0
Total operating expenses 80,600,000 87,200,000 100,600,000
Profit before interest & taxes 9,200,000 22,948,000 52,580,000
Interest expenses 2,400,000 2,400,000 2,400,000
Taxes incurred 300,000 500,000 600,000
Net profit -11,900,000 20,048,000 49,580,000
Net profit/sales -15.3% 16.75% 29.8%

13
8.3 Projected Cash Flow

The cash flow projection shows that provisions for ongoing expenses are adequate to meet the
needs of the company as the business generates sufficient cash flow to support operations.

Pro forma cash flow

Cash from operations YEAR 1 YEAR 2 YEAR 3

Cash sales 78,000,000 119,700,000 166,200,000
Sub-total cash from 78,000,000 119,700,000 166,200,000
operations
Additional cash received (Ugshs)
Sales tax, VAT, etc. 0 0 0,
New current borrowing 0 0 0
New other liabilities(interest 0 0 0
free)
New long term liabilities 0 0 0
Sales of other current assets 0 0 0
New investment received 0 0 0
Subtotal cash received 78,000,000 119,700,000 166,200,000

Expenditures
Expenditures from operations YEAR 1 YEAR 2 YEAR 3
Cash spending 77,400,000 84,200,000 96,600,000
Bills payment 15,000,000 16,000,000 18,200,000
Subtotal spent on operations 92,400,000 100,200,000 114,800,000
Additional cash spent
Principal repayment on 0 0 0
current borrowing
Sales tax, VAT paid out 0 0 0
Other liabilities principal 0 0 0
repayment
Long term liabilities principal 6,000,000 10,000,000 10,000,000
repayment
Purchase of other current 0 0 0
assets
Purchase of other long term 0 0 0
assets
Dividends 0 0 0
Subtotal cash spent 98,400,000 110,200,000 124,800,000
Net cash flow -20,400,000 9,500,000 41,400,000
Cash balance -55,324,800 18,268,500 90,210,600

14
8.4 Projected Balance Sheet

The following table presents the Balance Sheet for Joy and Jolly.

Pro Forma Balance Sheet

YEAR 1 YEAR 2 YEAR 3
Assets
Current assets
Cash -55,324,800 18,268,500 90,210,600
Other current assets 0 0 0
Total current assets -55,324,800 18,268,500 90,210,600
Long term assets
Long term assets 0 0 0
Accumulated depreciation 0 0 0
Total long term assets 0 0 0
Total assets -55,324,800 18,268,500 90,210,600

Liabilities and capital

Current liabilities
Accounts Payable 2,300,000 3,200,000 4,600,000
Current Borrowing 0 0 0
Other current liabilities 0 0 0
Subtotal Current Liabilities 2,300,000 3,200,000 4,600,000
Long-term Liabilities 22,800,000 12,800,000 2,800,000
Total Liabilities 25,100,000 16,000,000 7,400,000
Paid-in Capital 20,000,000 20,000,000 20,000,000
Retained Earnings -8,500,000 -17,800,000 35,300,000
Earnings -15,320,000 44,500,000 79,743,000
Total Capital -14,400,000 9,520,000 63,330,000
Total Liabilities and Capital -55,324,800 18,268,500 90,210,600
Net Worth -14,400,000 9,520,000 63,330,000

15
References

1. Child Care Provider Business Plan Reference Guide & Workbook (Los Angeles County
Specific)
2. www.firstchildrensfinance.org
3. http://www.bplans.com/child_day_care_services_business_plan/executive_summary_fc.cfm
4. ww.score.org/downloads/Balance%20Sheet,%20Projected.xls

16