Free Au Pair Agency Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
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templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of an Au Pair agency while showcasing the expected financials and operations over the next three years. Au Pair Agency, Inc. (“the Company”) is a New York based corporation that will provide au pairs to homes to clients throughout the United States. The Company was founded by John Doe.
1.1 Products and Services
The primary service offered by Au Pair Agency will be to provide in house au pairs to families throughout the United States. The agency will solicit its au pairs from other countries that want to visit the United States, earn a moderate income, and receive free room and board while they care for children among client families. The secondary income for the business will come from arranging flights and travel for au pairs into the United States. The third section of the business plan will further describe the services offered by the Au Pair Agency.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the Company’s Au Pair Agency location. • Financing for the first six months of operation. • Capital to purchase a company vehicle. Mr. Doe will contribute $10,000 to the venture.
1.3 Mission Statement
It is the goal of the Au Pair Agency to provide outstanding au pairs for families throughout the United States.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the au pair industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
As time progresses, the Au Pair Agency will continually expand its client base by aggressively reinvesting a portion of its after-tax cash flow into new marketing campaigns intended to draw families that need au pairs within the United States.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Au Pair Agency, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Au Pair Agency requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Au Pair Agency, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Au Pair Agency. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the services offered by the Au Pair Agency.
3.1 Au Pair Services
The primary revenue center for the business will come from securing au pairs with employment and contractual agreements for their services. As stated in the executive summary, the Au Pair Agency intends to work closely with families throughout the United States. For each successfully acquired employment contract obtained for a client, the Au Pair Agency will receive a fee equal to 15% of the face value of the contract.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the au pair agency industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
4.2 Industry Analysis
There are 6,500 businesses that provide these services to families. The aggregate revenue generated by these people and businesses is in excess of $4 billion dollars each year. The industry employs approximately 40,000 people, and disburses $2 billion dollars in payrolls. During the last economic census, it was found that the number of businesses operated within this industry has increased at a rate of 28% every five years. However, gross receipts have increased 65% over the same period. This is primarily attributed to the fact that the demand for in house child care services have become more in demand as both parents now typically work on a full time basis.
4.3 Customer Profile
Management has outlined the following demographics among families that will use the Au Pair Agency’s services: • Lives within the United States • Annual household income exceeding $75,000 • Within the household, both parents work on a full time basis. • Is seeking full time care for their children.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Au Pair Agency intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Au Pair Agency.
5.1 Marketing Objectives
• Establish connections with in house child care agencies throughout the United States.
• After the business has been established, continue to build a large referral network through existing client base.
• Establish a strong presence among families in the New York metropolitan area.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Au Pair Agency to easily reach people within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Bakery will also use an internet based strategy. This is very important as many people seeking local businesses, such as au pair agencies, now the Internet to conduct their preliminary searches. Mr. Doe will register the Au Pair Agency with online portals so that potential customers can easily reach the Bakery. The Company will also develop its own online website. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the au pair services that the Company is selling.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Au Pair Agency will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. This is reinforced by the fact that the Company will only receive revenues once employment is secured on behalf of a retained au pair. As such, the business will be able to remain profitable and cash flow positive in any economic climate.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis