Opportunity – ● Each month, 201 million adults–about 94 percent of the adult US population–shop at shopping centers. ● The average American visits a shopping center 2 ½ times per month. Children’ s Paradise takes the idea of drop in child care to a new level. Only 42% of preschool age children, and even less of elementary school age children, are placed in child care facilities. This means well over 50% of children are with their parent or guardian during the day while they are trying to get their shopping or other errands done. Instead of finding a babysitter or driving to the nearest drop in day care when you need to go shopping, Children’ s Paradise enables you to save time and money by bringing the child care to you. By locating drop in child care facilities right in the mall or shopping center, Children’ s Paradise finds itself in an undeveloped market; however, there is a great opportunity to get in on the ground level of this very opportunistic market. The largest drop in day care chain in the country only has twenty-one locations, in malls and casinos across the country. Children’ s Paradise can have twenty-five locations, generating a cumulative profit of over 95 million by year ten. By year fifteen that number would be doubled to over 178 million in cumulative profit. Distinct Competencies or Solutions – Every day parents have to drag reluctant if not angry children with them while they shop because it is too hard to find a babysitter that can watch their kids when they need to shop, or the drop in day care is just too far away. Children’ s Paradise provides a solution to this frustrating problem by allowing parents with children ages 3 to 12 to drop their kids off in a safe, fun, and exciting environment. Solutions that differentiate Children’ s Paradise from other drop in day care facilities include: ● saving you time and money by bringing the child care to you ● allowing parents to visually check on their children at any time via their cell phones or check up booths located throughout the mall with live video feeds from the surveillance cameras ● giving parents pagers that allow Children’ s Paradise to contact them if there is a problem. Pagers will also include a barcode that corresponds to the barcode tag given to your child ensuring that only the parent will be able to pick up their children. ● application forms on the internet that the parent can fill out and then bring to Children’ s Paradise for their first visit to make check in faster and easier. Vision –Starting right here in the heart of Indiana, Children’ s Paradise will begin to transform the parent/child shopping experience forever. The first Children’ s Paradise is targeted for Castleton Square Mall in Northern Indianapolis, but will soon expand to venues such as the up and coming open air mall, Hamilton Town Center, along with Clay Terrace, and Circle Center Mall all in the Indianapolis area. With the intention of franchising, after we reach our full potential in the city of Indianapolis we will look to other malls in the state of Indiana or across the nation to reach twenty-five locations by year fifteen. M arket Potential – According to the June 27, 2004 edition of The Dallas Morning News the U.S. is home to 46,990 shopping malls and centers. However, since many of those malls would not be large enough to support a Children’ s Paradise a list of, what Wikipedia.com calls “ notable” malls, was used to come up with an estimate of how many malls in the United States would be able to support a Children’ s Paradise. There are approximately 485 “ notable” malls in the United States. Therefore, the market potential for the mall day care industry is approximately $500 million dollars per year, assuming each of the 485 locations brings in revenue equal to that of Castleton Square Mall. Ultimately the growth of mall day care facilities relies on the growth of the shopping mall industry. In 2005, seven new shopping centers with over one million square feet were built, an increase of 1.7% in malls of that size. Sales, in malls with over one million square feet, also increased by more than 6.3% in 2005. Overall, the shopping mall industry is growing which means Children’ s Paradise will also be part of a growing market. Return on I nvestment – Even with high start up costs and assuming year one only produces half of our believed year two potential revenue, Children’ s Paradise will have a payback period of less than 13 months. Assuming growth rates of 2% after year two, which is equal to the annual population growth within Children’ s Paradise market, Children’ s Paradise will reach a net income per year of over $500,000 by year two assuming only one location. If Children’ s Paradise grows as planned by year three there will be enough capital to accommodate a Children’ s Paradise at the up and coming Hamilton Town Center. With another location up and running, year four could produce a net income of over $1,150,000. With the success of these two primary Children’ s Paradise locations the financial future of the company is endless. Customer Value – Children’ s Paradise provides the shopping parent with a high tech and safe child care facility. With surveillance cameras connected to the internet, parents can visually check in on their child at any point while they are shopping via their cell phone. There will also be locations in the mall, for those without internet capabilities on their cell phones, where they can check in on the little ones as they walk from store to store. Not only will you be able to see your child, but if for any reason your child needs you we will merely activate the paging device that every parent receives upon check in and you may immediately come to pick them up. Parents can also reserve care in advance to ensure that there is room for their children when they need it. Children will finally be able to enjoy going to the mall while they play games, crawl through tunnels, watch good clean children’ s movies or even grab a quick snack. Benefit to Local Community and/or I ndiana – Children’ s Paradise will greatly enhance the parent/child shopping experience. By providing a safe, fun, and stimulating environment for children, Children’ s Paradise will allow the busy parent to get their shopping done quickly in this fast paced world. Without the worry of keeping an eye on their child or dealing with the dreaded question “ Are we done yet?” they will be able to finish their shopping quickly and easily while their child is entertained in a safe friendly environment.
Pages to are hidden for
"Executive Summary Sample"Please download to view full document