Free Montessori School 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
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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 a Montessori School while showcasing the expected financials and operations over the next three years. The Montessori School, Inc. (“the Company”) is a New York based corporation that will provide early childhood education to customers in its targeted market using the Montessori system. The Company was founded by John Doe.
1.1 Products and Services
The Montessori School will provide students (age 3 through 5th grade) with a specialized form of education that was developed by Dr. Montessori. Unlike traditional teaching methods, this style provides students with an interactive approach to learning that focuses on independent problem solving, self-discovery, and nature intensive learning. This teaching method has become extremely popular over the last one hundred years, and has proliferated worldwide. There are approximately 7,000 Montessori schools operating worldwide. The third section of the business plan will further describe the services offered by the Montessori School.
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 Montessori School location. • Financing for the first six months of operation. • Capital to purchase FF&E. Mr. Doe will contribute $10,000 to the venture.
1.3 Mission Statement
The Montessori School provides a quality Montessori educational background that influences and supports life long learning for children in the New York area.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the early childhood education 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
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals with children within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Montessori School, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Montessori School 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 Montessori School, 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 Montessori School. 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 Montessori School.
3.1 Montessori School Services
The Company provides students with an alternative style of education developed by Maria Montessori, MD. This unique methodology of teaching focuses specifically on the development of the child, and provides them with an atmosphere where they can learn through both traditional teaching and self-directed learning. This section of the business plan will provide an overview of the Montessori method of teaching. As stated above, this style of teaching was developed by the Italian educator and physician, Dr. Maria Montessori in the early 1900s. Over the last one hundred years, her unique methods have led to the creation of more than 7,000 schools worldwide (4,000 in the US) that use her philosophy to educate students. Almost 98% of these schools are private entities. The primary goal of a Montessori education is to provide children with a stimulating environment where students are freer to explore subjects and appreciate learning during the course of their tutelage. The philosophy of Dr. Montessori seeks to instill a love of learning that does not end when a child’s education is completed.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the Montessori School industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economy is coming out of a difficult economic period. The job picture has improved and lending has resumed to small businesses. As such, the demand for private schooling services has increased. Additionally, parents that work will always require schooling services and as such the business will be able to remain profitable and cash flow positive at all times.
4.2 Industry Analysis
In the United States, there are approximately 4,000 Montessori schools that operate within the country. A vast majority of these programs are operated as not-for-profit entities. Approximately 200 schools within North America are publicly funded on the municipal level. Worldwide, there are 7,000 institutions that provide a Montessori elementary and/or secondary school education. The tremendous popularity of this alternative teaching method has allowed these institutions to grow steadily over the last twenty years. Schools that specialize in providing Montessori education make up 4% of the aggregate private elementary and secondary school market. Typically a Montessori school charges tuition based on the age of the student. In the United States, the average yearly tuition charged for this type of schooling is $6,900 per year for full-time student enrollment. These fees can vary significantly depending on the per capita income of the school’s specific market.
4.3 Customer Profile
The Montessori School’s average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include: • Annual household income exceeding $50,000 • Lives or works no more than 15 miles from the Company’s location. • Will spend $600 per month on Montessori School services.
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 Montessori School 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 Montessori School.
5.1 Marketing Objectives
• Continually enroll in state and federal programs to provide educational grants to The Montessori School on a monthly/yearly basis.
• Develop new marketing strategies for generating additional enrollment.
• Continue to maintain a strong relationship with the New York City community.
5.2 Marketing Strategies
The Company will maintain a reasonable print advertisement campaign in New York area publications and newspapers to generate visibility for parents seeking to enroll their students in a Montessori program. Mr. Doe’s intention is to build the school as one of the premier Montessori educational facilities in the New York area, which will lead to significant word of mouth referrals during the first three years of operation. As stated earlier, the Montessori style of education and teaching is a prominent alternative to a traditional public or private school education. Parents that are specifically seeking this type of service will actively search for Montessori schools in their area. As such, the Company will primarily market itself as a Montessori school and provides prospective parents of students with an abundance of literature regarding the school’s commitment to this style of teaching.
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
• The Owner will acquire $100,000 of debt funds to develop the business.
• The Montessori School will have an annual revenue growth rate of 16% per year.
• 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. However, the demand for parents that want to enroll their children in Montessori Schools is increasing steadily. As such, the Montessori School will be able to remain profitable and cash flow positive at all times despite certain drawbacks in the economy.
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