A children’s home is a large house where children and young people live together as a group, with professional staff to look after them. Children’s homes aim to meet the needs of children who can’t live with their own families. When a child cannot live with their family or stay with foster caregivers, they may go to a children’s home.

A children’s home is a place for children that provides food, shelter, and space for play and leisure in a caring environment. Children’s homes look after children with different needs.

Available statistics show that in the United Kingdom, there were 2,462 children’s homes as of 31 March 2021, an 11% increase (251 homes) from the previous year (2,211). These 2,462 homes were registered for 9,699 places, an 8% increase from 8,996 on 31 March 2020.

Steps on How to Write a Sample Children’s Home Business Plan

  1. Executive Summary

Themes Valley® Children’s Home will be based in Wigan, Lancashire and the organization will be committed to serving a small number of children who will reside in a family-like setting with trained staff and effective programs.

We will house between 10 to 20 children per time in a family setting that offers the potential for them to enjoy full use of community resources, including health care, education, and recreational opportunities. Wayne Philips is the founder and CEO of Themes Valley® Children’s Home.

  1. Company Profile

a. Our Products and Services

Themes Valley® Children’s Home will provide a wide range of services that revolve around 24-hour supervision, and support to troubled teens in a home-like setting and we will also provide psychiatric services to emotionally disturbed children.

Our products and services are designed to help provide residential treatment for youth for some time, and then facilitate the return of the youth to a family environment (until foster families are found for them), or properly reintegrate them into the community if they are old enough to live on their own.

b. Nature of the Business

Our children’s home will operate as a charity organization, we will source for finance from donor organizations and relevant government agencies.

c. The Industry

Themes Valley® Children’s Home will operate under the orphanages and children’s homes industry.

d. Mission Statement

Our mission is to provide a safe children’s home that will also provide specialized treatment to children subjected to abuse, and also to cater to children with emotional, intellectual, physical, medical, and/or behavioral difficulties.

e. Vision Statement

Our vision of to become the number one children’s home in Wigan, Lancashire.

f. Our Tagline (Slogan)

Themes Valley® Children’s Home – The Family That Is There for You!

g. Legal Structure of the Business 

Themes Valley® Children’s Home will be formed as a charity organization and we will operate as a charitable incorporated organization (CIO).

h. Our Organizational Structure
  • Head of Children’s home (President)
  • House Manager (Administrator)
  • Nurse’s Aides
  • Teachers, Caregivers / Rehab Counselors
  • Fundraiser
  • Account Officer
  • Front Desk Officer
  • Cleaners
  • Security Guards
i. Ownership / Shareholder Structure and Board Members
  • Wayne Philips (Owner and Chairman/Chief Executive Officer) 56 Percent Shares
  • Andrew Young (Board Member) 14 Percent Shares
  • Rowe Anthony (Board Member) 10 Percent Shares
  • John McNamara (Board Member) 10 Percent Shares
  • Helen Gordon (Board Member and Sectary) 10 Percent Shares.
  1. SWOT Analysis

a. Strength
  • Ideal Location for a children’s home facility
  • Highly Experienced and Qualified Employees and Management
  • Access to Pool of Donor Organizations
  • Highly Secured and Clean Facility
  • Highly structured programs that help teens live comfortably as though they are with their families.
b. Weakness
  • Budget Limitations
  • Lack of full-fledged educational structure
  • Inability to initially manage the organization without the support of donations and grants
  • Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
  • Inability to retain our highly experienced and qualified employees longer than we want
c. Opportunities
  • The demand from individuals aged 15 and under is expected to remain high because the majority of orphanages and children’s homes cater to children in this age bracket regardless of external circumstances
  • Government funding and private donations are anticipated to increase for support for children’s homes.
  • The orphanages and children’s homes industry is projected to reverse its decline trend and increase in the coming years.
  • A pool of finance from donor organizations, individuals, and relevant government agencies.
i. How Big is the Industry?

The orphanages and children’s home industry is not a big industry in the United Kingdom.

ii. Is the Industry Growing or Declining?

Available statistics point to the fact that the industry is presently growing because there were 2,462 children’s homes as of 31 March 2021, an 11% increase (251 homes) from the previous year (2,211). These 2,462 homes were registered for 9,699 places, an 8% increase from 8,996 on 31 March 2020.

iii. What are the Future Trends in the Industry

The orphanages and children’s home industry is changing, and players in the industry are improvising. No doubt, specialized treatment, technology, and social media will change the landscape of the orphanages and children’s home industry going forward.

iv. Are There Existing Niches in the Industry?

No, there are no niche ideas in the orphanages and children’s home industry.

v. Can You Sell a Franchise of your Business in the Future?

Themes Valley® Children’s Home has plans to sell franchises in the nearest future and we will target major cities with high children abandonment rates in the United Kingdom.

d. Threats
  • Lack of support from stakeholders and the government
  • Unfavorable government policy and regulations.
  • Community resistance
  • Liability problems
  • Reduction in abusive homes and teenage pregnancies
i. Who are the Major Competitors?
  • Fraserburgh Children’s Home.
  • Brucefield Children’s Home.
  • Neil Street Children’s Home.
  • Kincorth Children’s Home.
  • Roseberry Specialist Care Centres.
  • Swann Lane Children’s Home
  • Cameron House Children’s Home
  • Crosslands Children’s Home
ii. Is There a Franchise for Children’s home? 

No, there is no known children’s home franchise currently.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Children’s home?

Yes, there are policies, regulations, or zoning laws for Children’s homes. The Care Standards Act 2000 says that ‘an establishment is a children’s home if it provides care and accommodation wholly or mainly for children. Children are defined as people who are under 18.

Young people aged 18 and over may also stay in a children’s home, but they must be in a minority. If you want to register a children’s home/school, you must first contact the DfE for secure children’s homes or the Ministry of Justice (MoJ) for secure schools.

This is to get the Secretary of State’s approval under The Children (Secure Accommodation) Regulations 1991. If you are planning a new building or to carry out any refurbishment or building works, you must share your plans with the DfE/MoJ. They will get the views of specialist architectural advisers before you carry out any works.

  1. Marketing Plan

a. Who is Your Target Audience?

i. Age Range

Our target markets are children and adolescents between the ages of 10 and 17 years.

ii. Level of Educational

We don’t have any restriction on the level of education of those we will accommodate in our children’s homes.

iii. Income Level

We don’t have any cap on the income level of those who we will accommodate in our children’s homes. Besides, most people who are admitted to children’s homes have no source of income.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we will welcome into our children’s homes.

v. Language

There is no restriction when it comes to the language spoken by the people we will welcome in our children’s home but we will prefer people that speak English.

vi. Geographical Location

Anybody from any geographical location will be welcomed in our children’s home.

vii. Lifestyle

Themes Valley® Children’s Home will not restrict any child from accessing our facility and services based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies
  • Host Themed Events That Catch Attention.
  • Tap Into Text Marketing.
  • Use FOMO to Run Photo Promotions.
  • Share Your Events in Local Groups and Pages.
  • Turn our Social Media Channels Into a Resource
  • Develop Your Business Directory Profiles
  • Build Relationships With Other Nonprofits and related organizations in our Area
i. Traditional Marketing Strategies
  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
  • Social Media Marketing Platforms.
  • Influencer Marketing.
  • Email Marketing.
  • Content Marketing.
  • Search Engine Optimization (SEO) Marketing.
  • Affiliate Marketing
  • Mobile Marketing.
iii. Social Media Marketing Plan
  • Start using chatbots.
  • Create a personalized experience for our teens (housemates).
  • Create an efficient content marketing strategy.
  • Create a community for our donors and volunteers.
  • Gear up our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on the relevant social media channels.
  • Run cross-channel campaigns.
c. Pricing Strategy

When working out our pricing strategy, Themes Valley® Children’s Home will make sure it covers upkeep, medications, premium, economy or value, and full rehab package for each child. In all our pricing strategy will reflect;

  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing.
  1. Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, religious organizations, nonprofit organizations, and charity to help refer abused and abandoned children to us.

b. Inventory Strategy

The fact that we will need educational materials, toiletries, medications, and foodstuffs per time means that Themes Valley® Children’s Home will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Themes Valley® Children’s Home will make available to her donors and contributors;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees

At Themes Valley® Children’s Home, we offer services, and the nature of services we offer does not accommodate return policy, incentives, but we will guarantee our housemates on the transformation that will occur in their lives if they follow our program.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent service to all our housemates, it will help us to first understand their needs, experiences, and pain points. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

  1. Operational Plan

Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting grants and fundraising strategies that will enable the firm to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at a Children’s home?
  • The facility is open for the day
  • The facility is cleaned and prepared for the day’s activities
  • Housemates are welcomed
  • Housemates are provided with educational programs that will help them to properly integrate back into society. They are engaged in an active rehabilitation treatment program run throughout the day, where the residents receive intensive individual and group counseling.
  • House chores are carried out at different intervals during the day
  • The facility is closed for the day and housemates go back to their rooms to get it arranged and then go to bed.
b. Production Process

There is no production process when it comes to children’s homes.

c. Service Procedure

There is no service procedure when it comes to a children’s home.

d. The Supply Chain

Themes Valley® Children’s Home will rely on social workers, counselors, religious organizations, and government agencies in our city to refer children to us. So also, we have been able to establish business relationships with wholesale supplies of educational materials, toiletries, medications, foodstuffs et al.

e. Sources of Income

Themes Valley® Children’s Home make money from;

  • Contributions for partners and donors
  • Grants from government agencies and charity organizations
  • Community support.

7. Financial Plan

a. Amount Needed to Start your Children’s home?

Themes Valley® Children’s Home would need an estimate of £150,000 to successfully set up our children’s home in the United Kingdom. Please note that this amount includes the salaries of our staff for the first month of operation.

b. What are the Cost Involved?
  • Business Registration Fees – £400
  • Legal expenses for obtaining licenses and permits – £700.
  • Marketing, Branding, and Promotions – £1,000.
  • Business Consultant Fee – £1,500.
  • Insurance – £1,400.
  • Rent/Lease – £50,000.
  • Other start-up expenses include commercial satellite TV subscriptions, stationery (£500), and phone and utility deposits (£2,800).
  • Operational Cost (salaries of employees, payments of bills et al) -£40,000
  • start-up inventory – £7,000
  • Store Equipment (cash register, security, ventilation, signage) – £2,750
  • Furnishing and Equipping -£30,000
  • Website: £600
  • Opening party: £3,000
  • Miscellaneous: £2,000
c. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Themes Valley® Children’s Home will not build a new facility for our children’s home; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses of Running a Children’s home?
  • Cost of stocking up supplies such as educational materials, medications, toiletries, beddings et al
  • Cost of food supplies and ingredients
  • Utility bills (gas, internet, phone bills, signage and sewage et al)
  • Salaries of employees
e. What is the Average Salary of your Staff?
  • Head of Children’s home (President) – £40,000 Per Annum
  • House Manager (Administrator) – £32,034 Per Annum
  • Nurse’s Aides – £29,660 Per Annum
  • Teachers, Caregivers / Rehab Counselors – ££28,878 Per Annum
  • Fundraiser – ££26,500 Per Annum and based on target
  • Account Officer – £25,000 Per Annum
  • Front Desk Officer – £24,800 Per Annum
  • Cleaners – £20,000 Per Annum
  • Security Guard – £18,000 Per Annum
f. How Do You Get Funding to Start a Children’s home
  • Raising money from personal savings and sale of personal stocks and properties
  • Applying for a loan from your bank/banks
  • Applying for business grants and seed funding from the government, donor organizations, and angel investors
  • Source for soft loans from our family members and friends.
  1. Financial Projection

a. How Much Should You Charge for your Service?

It is important to note that we will make our facility free of charge since we hope to attract enough grants and funds from donors.

b. Sales Forecast?
  • First Fiscal Year (FY1): £150,000
  • Second Fiscal Year (FY2): £250,000
  • Third Fiscal Year (FY3): £350,000
c. Estimated Profit You Will Make a Year?

Themes Valley® Children’s Home will operate as a nonprofit organization.

d. Profit Margin of a Children’s home 

Themes Valley® Children’s Home is designed not to make profits hence we don’t have a profit margin for our services.

  1. Growth Plan

a. How do you intend to grow and expand? 

Themes Valley® Children’s Home will grow our children’s home by first opening outlets in key cities in the United Kingdom within the first five years of establishing the organization and then we will start selling franchises from the sixth year.

b. Where Do You Intend to Expand to and Why?

Themes Valley® Children’s Home plans to expand first to Cleveland, in North East England, and then to Shrewsbury, Shropshire, Tyldesley, Manchester, Bradford, West Yorkshire, and Crewe, Cheshire.

We intend to expand to these locations because available statistics show that the cities listed above have the highest juvenile delinquencies in the United Kingdom. As a matter of fact, with a crime rate of 109.7 per 1,000 people, Cleveland had the highest crime rate of all the police force areas in England and Wales in 2020/21.

  1. Exit Plan

The founder of Themes Valley® Children’s Home plans to exit the business via merger and acquisition. We intend to merge with an international charity organization that has a world spread so that the organization can be placed under a trusted hand when the founder retires.

The goal of combining two or more charitable organizations that are into children’s home on a global scale is to try and achieve synergy – where the whole (the new organization) is greater than the sum of its parts (the former two separate entities) and with the well-structured management team and board of trustees.