Child Transportation Service: Kid Cart (Executive Summary)
Executive Summary
Brief History of Children's Transportation Services
During the past several months, we have researched the rapidly growing industry of children's transportation. With the busy schedules of dual working parents, there is a conflict in getting their children to day care, preschool, sports activities, appointments, etc. More and more parents are looking for alternative ways to transport their children without affecting their work schedule.
Approximately 300 children transport companies exist across the country. In February 1995, the National Child Transport Association was formed in Naples, Florida. There are currently 220 members. This association is working to set standards for the children's transportation industry. They produce an informative newsletter 4 times per year. NCTA also has their 2nd annual conference set for May 1996 which we plan to attend.
Objectives
- To provide a safe, licensed transportation service for children at a reasonable price to parents.
- Enhance the business by becoming a trusted viable transportation source to parents and children in Royal Oak.
- Contract with area service agencies, day care, preschool and recreational services that do not provide transportation.
- Create jobs for Royal Oak by hiring trained drivers and office staff as our business grows.
Brief Description of Kid Cart
Kid Cart is a transportation service exclusively created to transport children to and from school, day care, after school activities, recreational programs, etc.
Unlike a taxi service, Kid Cart will provide transportation exclusively to children. All of our drivers will have a background check through the Michigan State Police for any infractions of the law.
These drivers will possess a chauffeur's driver's license and a Red Cross First Aid and CPR certificate. They also must genuinely care about the welfare of children.
How It Works
Below are five simple steps for parents to follow when registering their children with Kid Cart.
| Step 1: | You decide Kid Cart is for you. |
| Step 2: | Call us to schedule a meeting with a Kid Cart representative at your convenience. We want to meet you and we're sure you would like to meet us. |
| Step 3: | Fill out the Kid Cart registration and emergency forms. |
| Step 4: | Go over your child's schedule with us. |
| Step 5: | Prepay the fee. |
That's All There Is To It!
Kid Cart will possess insurance above that required by law.
| Bodily Injury | 100,000/300,000 |
| Property Damage | 100,000 |
| PIP/PPI | |
| Comprehensive | $100 Ded. |
| Brd Collision | $500 Ded. |
| Uninsured Motorist | 20,000/40,000 |
| MCCA |
The 1996 Sportster Minivan we have selected will meet federal safety standards for passenger cars. These features include dual airbags and adjustable height shoulder harness for front and second row seats. All seatbelt latch plates incorporate the capability to help secure child car seats. For added safety, anti-lock brakes are standard and steel side guard door beams are built into all the doors. All drivers and passengers will be required to wear a safety belt regardless of age or weight.
Short Description of Projected Market
The projected market will be focused on middle class, single and dual working parents. This group is very active and so are their children with sports, day care and summer activities etc. Also these parents comprise the majority of respondents from our surveys and introduction letter.
Expected Growth and Rationale for Projections
Starting with two vans, the sales receipts will be based on a five dollar cost of an average trip totaling fifty trips per van per month. The anticipated growth each month would be twenty additional trips per van. Using this formula, our break even point would be $41,124 in sales receipts, or approximately 8,825 total trips. This is projected to occur in January of 1997. At this rate of growth we project one additional van in September of 1996, and 2 additional vans in 1997. We have based this information on our survey and introduction letter results. Following is a breakdown of the results.
Kid Cart Letter of Introduction
