Goal/challenge: We have too much demand for our daycare services, how might we meet this demand? ...

1. Maintain an internal day care service

1.1. Expand day care operations

1.1.1. Build out a secondary space in the building.  Upside: Ability to provide consistent, quality childcare in the long run. Downside: Large upfront investment cost. We will have to acquire and retain more customers to reach break-even/earn a profit

1.1.2. Renovate the current space to make it more efficient and accommodate more kids.  Upside: Lower fixed cost compared to a brand new space.  Higher profitability and more capacity in the long run. Downside: Interrupted service. Maybe just a short term fix and demand might outpace this upgrade.

1.1.3. Buy local day care provider and operate as an extension of our brand. Upside: Increase knowledge-base of organization, easily acquire ready to operate space, building out brand  Downside: capital required to purchase, challenging to manage two properties.

1.1.4. Hire residents to become the providers. Serve as nannies for the kids without expanding the space. Upside: Additional capacity w/o fixed costs. Fostering a sense of community and creating job opportunities for the residents. Downside: Inconsistent service, safety, reliability.

1.2. Keep the day care as is and have a waiting list for new clients

1.2.1. Use seniority to determine how people are prioritized on the waiting list. Upside: Promote loyalty. Lower risk than attempting to change the existing daycare. Downside: Dissatisfied customers who have to wait.

1.2.2. In the interim, residents will have an option to pay for a nanny share Upside: They prefer nannies and in the long term we have a balance between options for a daycare or a nanny-share. Downside: They prefer nannies over daycares and lower demand for our daycare.

1.2.2.1. In the long-term split childcare services between a daycare or a nanny share. Downside: More decentralized, more risk and need for oversight when you have so many providers.

1.2.3. Refer to qualified day care partners in interim Upside: Potential new revenue stream and no loss of future clients Downside: May lose market share, brand of partner may be inconsistent may become inconsistent with our mission

1.3. Keep the day care as is, but partner to outsource the rest of the demand. If we choose this, then we are outsourcing a portion of the business. Upside: Still have a daycare service and ability to meet demand. Downside: Inconsistent service, people could question our brand's promise.

2. Outsource the service to external providers completely.

2.1. Partner with day care provider within the neighborhood Upside: No additional capital required Downside: Time consuming/research costs to find right partners, different brand of service, logistical/travel challenges for residents

2.2. Create virtual day care service within the building utilizing common areas/units and nannies Upside: More personalized attention for kids, operational efficiency (no additional personnel costs) Downside: Drift from mission/brand

2.3. Sell our day care business to 3rd party day care provider Upside: Maintain brand promise, hand pick right partner to take care of our operations, additional capital to use elsewhere Downside: RIsk of losing brand, risk having poorly run day care facility for residents.