First Considerations in Starting a Family Child Care Busine…

CURRENT FUNDING and LOAN REQUEST: Blue Sky Child Care, LLC, was initially capitalized at formation in January, 2016 with a $50,000 investment by the owner John M. Smith. Blue Sky Child Care, LLC is seeking a term loan of $50,000 for a two year period. These funds will be used for additional working capital to sustain operations. Note how much information is contained in these four short paragraphs: • The name of the business and its legal structure; • Its location; • The date of its formation; • That it will be providing licensed family day care; • The date of its licensure;

• The proposed date it anticipates opening to the public; • The level of pre-opening commitment by parents; • The level of initial capitalization and its source; • The amount of this request as a term loan; • The proposed uses of the requested funds.

MARKET and COMPETITION: According to the Minnesota State Demographer, the area within a ten mile radius of the town of Big Acre has experienced a population growth of 600 individuals within the last five years. This growth, in an area which earlier saw continuing out- migration of individuals and families, is primarily the result of two major manufacturing firms locating in Big Acre. The county social services agency of Long Lake County has used birth records and a review of currently licensed child care providers to indicate that there is currently a demand for fifty places in Big Acre for infant, toddler, and pre-school aged children.

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