The Church of the Living God (CWFF) Riverview dba The Church of the Living God (CWFF) Temple 364, formerly operated in a temporary location in the Eastern Market Neighborhood in Detroit, MI. Since Wayne County was the hardest hit in Michigan based on the number of COVID-19 deaths and infection rates, the church was among the city’s hardest hit. The church has been operating virtually since mid-September 2020. It is the churches ultimate desire to relocate from the Eastern Market area for a variety of reasons. First the former Dubois Street location is a part of a larger community redevelopment. The former address is slated to become a truck route to service the Eastern Market which makes the location undesirable to service children, elderly and underserved populations. Additionally, the former building was very old, in need of much repair and the building floor plan would require major renovation to make the building suitable for community programing and expansion.
This plan will provide an overview of the current state, desired future state and how investor funding would help us reach our goals.
Vision / Mission
In 2017, The Church of the Living God was established.
Overall, our organization can be characterized as a religious organization and community resource. We provide for members and non-member an atmosphere for spiritual, social and physical support that is not available in other social organizations. Other benefits include life-long friendships, opportunities to make a difference, accountability, a sense of community and personal development.
Our organization further makes a difference by addressing poverty and helping the poor to positively influence the broader community. This includes helping the needy, poor and disabled, distributing food and clothing, and assisting the homeless. We also contribute the emotional and spiritual well-being of individuals and families through positive engagement. The post COVID church will be a hybrid model providing needed community services – this option is most likely the way of the future. Congregants have become comfortable worshipping from the comfort of their homes. Generally, people like options which allow them to meet the needs of a broader audience. Lastly, the church has gained new followers online that routinely follow online and give to the church. Based of the reasons listed and others this is mostly likely the new normal for churches.
We maximize church resources through strategic partnerships to distribute food, support children and families, and provide tutoring to students. Poor and underserved communities have experienced an increased need due to the digital divide and requirements for virtual learning.
Background
For the last year people have attended church virtually online. The outreach services that we previously provided at that location were discontinued due to COVID.
The legal form of The Church of the Living God CWFF, Temple 364 is Ecclesiastical Corporation, non-profit organization, located formerly at 3556 Dubois Street, Detroit Michigan 48207.
By 2019 our operation was producing $41,852 and has operated at a break-even financial position after expenses since. Revenue projected for fiscal year 2022 without internal funding is expected to return to 2019 levels as we rebuild coming out of COVID returning to a new hybrid model with virtual and a service at a physical location. Annual growth is projected to be 7-10% per year through 2027.
Now, Church of the Living God needs a new operating base in a residential community. Younger generations respond best to in person services. Since youth and families are the target population an adequate facility is essential to our vision and operating model.
Capital Requirements
To accomplish this goal, we have developed a comprehensive new childcare center plan to intensify and accelerate our marketing and community outreach activities, service expansion, and distribution. To implement our plans, we require an investment totaling $300,000 for the following purposes:
o Purchase a new building with enough space and an adequate design to childcare center, support worship, children’s programs and community outreach services.
o Add space for an early childcare center, to support low to middle income working parents. The center would serve up to 20 children ages 0-5 years old at a reasonable rate. Latchkey services could be added in future years.
o Optimize a hybrid model of online church services to benefit seniors, busy professionals yet provide face to face services for millennials and support their worship style.
o Reinforce Community Outreach programs to handle the increased demands created by the influx of families in need.
Management Team
Our leadership team consists of 5 men and women whose backgrounds consist of over 40 years combined of management experience with Consumers Energy, Trinity Health and DTE Energy, 20 years of law enforcement with Detroit Police and 25 years of social work Detroit Public Schools and Detroit Medical Center.
Our management team also includes the Pastor with 12 years of ecclesiastical leadership and 29 years of Maintenance Leadership experience. Assistant Pastor with experience as a Human Resources Director in healthcare industry a psychiatric social worker with experience in education K-12 setting as well as emergency room experience. Social worker with experience through Department of Health and Human Services. General Motors leadership.
In-House Management
· Pastor
· Assistant Pastor/Program Director
· Trustee Chairman
· Trustee
· Trustee
· Financial Secretary
· Treasurer
Outside Management Support [hourly / project basis]
· Childcare Director consultant
· Bloomerang
· Corporate Attorney
· Start Church
Additionally, our outside management advisors provide tremendous support for management decisions and creativity. – Capital Development consultant, Chief Bishop of the National Church
Market Analysis
Market Definition
The childcare market is growing rapidly. The market for these products amounted to $47.2 billion in 2016. The Michigan Department of Education reported in 2019 that the number of Care Providers in Declining in Michigan 2.5% from 2010 while the number of children birth through age 9 increased 5.5%.
According to the industry report the overall Michigan market for the childcare industry is 6,896 licensed childcare providers known to be open across the state.
The area of biggest growth in the childcare market is in the area of children 5 and under.
Currently, the market distribution is shared by 17 childcare providers in Redford Township. Since COVID not all the centers are operational which has future added to a shortage in available resources for working families. As unemployment in Michigan benefits are approaching an end in the Fall more parents will need to return to the workforce with a need for quality childcare. Not all the current childcare providers have availability or tuition costs which are affordable for low income working families. The top competitor is tuition-based childcare sponsored by the Detroit United Auto Workers which has a manufacturing plant in the vicinity. Again, this option could be cost prohibitive for low to middle income households.
Customer Profile
The childcare's target market includes households with children up to 5 years old. The typical clients of our services are working parents low to middle income that are eligible for childcare assistance through the state. These parents currently leave their children at home piecing together coverage for childcare among friends and family. However, with a local resource to a residential area, parents can save time and money transporting children before and after work or during sleeping hours for night shift parents.
· There are 7518 households with children living in Redford Township.
· There are 3673 businesses in Redford, which additional opportunities existing with parents working in the area.
· Access is limited for quality childcare, more so for Black and Hispanic/Latino families, as well as offering non-traditional hours care. (Before and after school/latchkey hours)
· “Every family in Michigan deserves to have access to safe, affordable quality childcare that meets their needs,” Whitmer said. “Our state’s economic recovery depends on us getting this right.”
· Parents eligible to receive low-cost or free childcare by increasing the income eligibility requirement for a family of four from 150 percent of the federal poverty level ($39,300) to 200 percent ($53,000). That income eligibility increase would make about 150,000 additional Michigan children eligible for free or low-cost childcare.
· The average household income in Redford Township is $57,216, which means an increased percentage of families would now qualify for childcare assistance if slots were available.
· Private pay and families eligible for Michigan’s Child Development and Care (CDC) program which provides subsidies to eligible low-income families that help them to afford quality childcare.
· We will advertise for clients through an elementary school on the same street, businesses in the area and through health and human services agency, church goers, students that utilize tutoring services.
Competition
Childcare providers that compete in this market are home-based, group homes and centers. All companies charge competitive prices: Prices varies based on hourly rate, daily rate, weekly rates, part-time or full-time status
Our model will be a Child Care Center model, weekly rates of $150 for fulltime students, pro-rates for part-time attendance with drop-ins accepted.
Key factors considered in establishing price is maintaining competitiveness, balancing operating costs plus flexible options for parents have resulted in the present price point in the industry.
Compared to other area childcare centers in the area, our center will increase the number of available slots in an industry shortage area. The location of the new center is 43% minority (Black families) population which statistically have limited access to care.
Our strategy for meeting/dominating the competition is [lower price, bigger / better, -- your unique selling proposition].
Risk
The top business risks that our organization faces as it begins to enter in the childcare market are:
1. Start up costs to ramp up to capacity
2. A shortage of qualified staff
An environmental risk that may cause some concern is COVID levels within the community since young child are not eligible for vaccinations at this time.
Marketing Plan
The church’s marketing strategy is to aggressively promote the fact that our childcare center provides quality care to include school readiness activities.
Sales Strategy
Because children are out of school for the summer, a summer day camp is a potential expansion on the normal childcare center model to increase revenue in the summer.
Advertising and Promotion
We will utilize the following media and methods to drive our message home to our customers:
For the first year, advertising and promotion will require $7,500.
On an ongoing basis we will budget our advertising investment as 18% of total sales.
Public Relations
During 2022, Church of the Living God will focus on the following publicity strategies:
1. Print - direct mail touch points which engage and build trust with new movers in the area.
2. Digital - reach the new movers through multiple digital channels including email, online web directory presence and mobile app.
3. Social media - Geo target families with targeted advertising on Facebook and Instagram.
4. Referrals – through strategic partner agencies which serve children and families.
We will track, wherever possible, the incremental revenue generated from our advertising, promotion and publicity efforts. We anticipate at least 80% of revenue will be generated directly from our promotions, and possibly an additional 20% of indirect increase in revenue through referrals.
Financial Plan
The business plan for the childcare center which will cover the cost for this loan would be;
A minimum of 15 full-time students per week image.png16.15 KB
The increase in revenue generated by in-kind donations, grants and student tuition will allow us to repay the loan in 5 years.
Conclusion
Our organization enjoys an established track-record of relevant and needed support for child and families. Their expressions of satisfaction and encouragement are numerous, and we intend to continue our advances and growth in the area of family supports, community outreach and positively impacting the broader community.
