QUESTION: I would like to know how to find sponsors and donations for a daycare, which will only be open Saturday and Sunday from 2pm to 12am. This daycare will be for the second shift parents that work and will accept only children under 10 years old. What are the chances that a business like these can attract investors? - Charlene Bryant
A. It sounds to me like you will have difficulty attracting traditional investors. Before making an investment most investors carefully examine their bottom line profits. It sounds to me like a business that will only be open two days a week will not net enough to cover it's expenses. That said, (if you are serious you will need to prove it) I would begin by creating a business plan. Nothing formal- just gathering a list of employees who would use the service and the price they would be willing to pay (this is your revenue section). Then you need to find out what it will cost to pay rent, staff, liability insurance and other expenses or start-up costs such as toys, etc.). If you see that you will not be profitable (and still want to pursue the dream) you may want to consider applying for a small business loan or contacting local churches, synagogues or YMCA's for help.
Hope this helps. Good luck!
Lisa Segal, C.P.A.
Principal
Convergence Consulting Group (www.ccgpartner.com)