Getting Started in the Business of Family Child Care - Part 4
I’ve created a new publication for new family child care providers. It describes the most important aspects of becoming a successful family child care business. You are free to distribute this to anyone.
I will be posting sections of the publication over the next five weeks.
Getting Started in the Business of Family Child Care
Congratulations on becoming a family child care provider! You are among a special group of individuals who have chosen the profession of caring for young children. You have chosen this work because you love children. You also have an opportunity to earn money to support your family. Each year thousands of providers have successfully set up their businesses, and we welcome you to this caring profession.
This publication introduces the most important topics that every family child care provider needs to know about to run a successful business.
Introduction: How to Begin
How to Promote Your Business
How to Create Contracts and Policies
How to Keep Records
How to Reduce the Risks of Running a Business
How to Manage Your Money and Plan for Retirement
How to Reduce the Risks of Running a Business
Running a family child care business creates a greater risk of accidents and injuries in your home. You can never eliminate these risks. But you can do a lot to reduce them and to protect your business and your family in the event of a major incident.
When you start caring for children, you automatically become a self-employed (sole proprietor) business owner. Consult with a lawyer and tax professional before considering adopting other options such as a partnership or corporation. The vast majority of providers run their business as self-employed owners.
Comply with all local child care and zoning regulations. You are less likely to have an accident if you are following all regulatory standards. You are also more liable if an accident occurs while you are violating a rule. Check for any local zoning or deed restrictions in your town.
Screen families before enrollment. Look for signs of conflict and inflexibility.
Communicate regularly with parents. Listen and respond to parent concerns.
Screen potential helpers. You are responsible for the acts of anyone working for you.
Establish a transportation policy. Address what you would do if the parent comes to pick up the child and is drunk, on drugs, or without the appropriate car seat. Create a list of names of people who can take children home in these situations. Call 911 if the parent insists on taking the child.
Parents cannot waive their right to sue you. If parents sign a liability waiver that says they will never sue you if something happens to their child, courts will generally not enforce such a waiver.
You are required to report child abuse or neglect. Make sure you understand your responsibilities. Talk to your licensor or your county child protection services agency for advice.
Update your insurance to provide protection against major incidents. Read the “exclusions” section of your homeowner’s or renter’s policy to see if you can run a business in your home. Find out if there are limits on how many children you can have in your care. Find out whether you need busines property insurance to cover your furniture, appliances and other household items that are used for your business. Purchase business liability insurance to protect yourself against parent lawsuits. Contact your vehicle insurance agent to see if you need commercial vehicle insurance.
Family child care providers may not discriminate against parents or children based on race, color, sex, religion, disability or national origin. Some state may also include sexual orientation or other protected classes.
You must take reasonable steps to make your program accessible to children with disabilities. Spending $100 to modify your bathroom would be considered reasonable. Spending $5,000 to build a wheelchair ramp probably would not. If making your program accessible would create a “significant” difficulty or expense, you do not have to provide care. However, it is not reasonable to refuse care for a child with a special need simply because the child would require more attention. You may not charge more to care for children with special needs.
For more information, see my Family Child Care Legal and Insurance Guide from Redleaf Press.
Tom Copeland - www.tomcopelandblog.com
