Starting Your Family Child Care Business: A Guide for New Providers, Part II
Congratulations on embarking on your journey as a family child care provider! You’re joining a dedicated group of individuals passionate about nurturing young children while earning an income. Each year, thousands successfully set up their own child care businesses, and now it’s your turn. Welcome to this caring and impactful profession!
This guide introduces key topics every family child care provider needs to know to run a successful business.
How to Create Contracts and Policies
As a family child care provider, you have the autonomy to be your own boss and set the rules for your business. To ensure that parents respect you as a business owner, it is essential to establish clear rules and communicate them effectively.
Setting Rules and Policies
You are not obligated to provide care for every family that approaches you. It’s important to work with families who will respect and follow your rules. During interviews, ask parents about their needs and expectations. Trust your instincts about whether a family is a good fit for your program. Avoid enrolling families if you anticipate potential conflicts, as terminating care after a short period can be disruptive for children.
Consider implementing a two-week trial period at the start of care, allowing either party to terminate the arrangement without penalty if it doesn’t seem like a good fit. Be mindful not to exceed the number of children you feel comfortable caring for.
Creating a Written Contract
A written contract is crucial to outline your rules regarding payment and hours. Every contract should include:
Names of the child and parent(s)
Payment amount (hourly, weekly, or monthly)
Operating days and hours
Policies on holidays, vacations, and sick days
Payment due dates and rules on late fees, registration fees, activity fees, holding fees, etc.
Termination plan
Dated signatures of both the provider and parents
Some organizations, such as regulatory agencies or the military, may require additional topics in your contract.
Developing Written Policies
In addition to your contract, use written policies to detail other important rules. Your policies can cover various topics, such as:
Discipline and guidance
Meal and nap schedules
Activity schedules
Emergency procedures
Child-rearing philosophy
Substitute care arrangements
Illness policy
Field trips
Infant supplies and toilet training
Only adopt policies you are willing to enforce.
Consider two key rules:
Advance Payment: Require parents to pay for care in advance. For example, if parents normally pay on Friday, ask them to pay a little extra each week until they have paid one full week in advance.
Notice Period: Require parents to give two weeks’ notice before leaving your program and pay for the final two weeks of service upfront. If parents cannot afford this all at once, allow them to pay in installments. Note that subsidy programs may have restrictions on such policies, so consult the program administrator.
Communicating the Rules
It is vital to communicate your rules clearly to parents. Review the terms of your contract and policies with parents at least annually. Use various methods to keep parents informed, such as:
Bulletin boards
Parent newsletters
Daily notes to parents
Emails
Regular parent meetings
If a conflict arises with a parent or there are issues concerning the care of their child, document the situation. Seek outside help from local regulators, other providers, and community resources if needed. Try to negotiate a solution with the parent. Remember, you can adopt different policies with different parents.
Enforcing the Rules
Enforcement of your rules is crucial. Any changes to your written contract must be documented in writing; otherwise, they are not enforceable. You can have parents sign a note that you attach to the current contract or rewrite the contract and have them sign it again.
Establish consequences for not following the rules, such as additional fees or termination of care. For example:
Charge a late fee if a parent doesn’t pick up their child on time.
Bill parents for extra clothes if they fail to bring a set.
Terminate the contract if parents do not adhere to the rules.
Enforcing your rules may feel uncomfortable, but it is necessary for maintaining professionalism. Clearly established and communicated rules, when consistently enforced, help create a stable and respectful environment for everyone involved. Even if enforcing rules occasionally results in losing a parent, providers who follow these steps rarely regret it.
Conclusion
Congratulate yourself for being professional about contracts and policies. By establishing, communicating, and enforcing clear rules, you create a more structured and manageable environment. This professionalism allows you to focus more on the love and care of the children, ensuring a successful and rewarding family child care business.
