Starting Your Family Child Care Business: A Guide for New Providers, Part IV
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 Reduce the Risks of Running a Business
Running a family child care business comes with its own set of risks, especially when operating out of your home. While you can't eliminate all risks, there are effective strategies to help reduce the chances of accidents and ensure your business and personal assets are protected in case of any major incidents.
Understanding Your Role as a Business Owner
Once you start caring for children, you’re officially a self-employed business owner. This designation often comes with increased responsibility. Most providers operate as sole proprietors, but it’s advisable to consult legal and tax professionals before exploring other business structures like partnerships or corporations.
Complying with Regulations
Adhering to local child care and zoning regulations not only keeps you compliant but also reduces the chances of accidents. Any violations can make you more liable if an incident occurs. Be sure to check for specific zoning laws or deed restrictions in your area that could impact your business operations.
Screening Families and Helpers
The people you allow into your child care business, whether they are clients or employees, play a crucial role in minimizing risks. It's important to screen families before enrollment to identify potential conflicts early. For anyone working for you, like assistants or substitute care providers, thorough screening is equally essential since you are responsible for their actions.
Establish Clear Communication and Policies
Maintaining open communication with parents helps build trust and allows for quick resolution of concerns. Additionally, establishing clear policies regarding transportation and emergency situations (e.g., what to do if a parent arrives intoxicated) can help manage tricky situations effectively. Ensure you document alternatives for child pick-up to safeguard both the children and yourself.
Insurance and Liability
One of the most critical steps in reducing risks is updating your insurance to cover any potential incidents related to your business. Review your homeowner’s or renter’s policy for exclusions related to running a business in your home and consider business liability insurance to protect against lawsuits. Check your vehicle insurance policy to determine if you need commercial coverage, especially if you transport children.
Legal Compliance and Accessibility
Discrimination based on race, color, sex, religion, disability, or national origin is illegal, and it's crucial for family child care providers to understand these protections. Furthermore, making reasonable modifications to accommodate children with disabilities is a legal requirement. While small adjustments, like modifying a bathroom, are typically reasonable, more extensive changes may not be necessary if they create a significant financial burden. However, refusing care simply because a child requires more attention is not considered reasonable.
Additional Recommendations
Reporting Obligations: Be aware of your duty to report any suspected child abuse or neglect.
Legal Waivers: Understand that parents signing liability waivers generally does not protect you from being sued.
By proactively managing these aspects of your business, you can create a safer environment for the children in your care while also safeguarding your business and personal assets.
