Introduction

All About Child Care

Owning and operating a child care business can be a very challenging and rewarding career. 

Success in this field requires dedication, love and patience.

family care 

The work day is longer than a normal eight-hour day, but the satisfaction of watching children grow and develop will be worth the extra effort. If you are interested in starting a child care business, this publication will help you plan, prepare and operate your business. It explains the step-by-step process of starting the business, from assessing the need for child care services to selecting the service, setting up your business and preparing for opening day. A sample business plan outline for child care businesses is included, in addition to a sample parent survey, a typical undergraduate curriculum in early childhood instruction, general resources and a list of related national organizations. 

FINANCING YOUR BUSINESS

Almost All What It Takes

  • Private Sources

    Private sources include your own savings or funds from friends or relatives, and are among the most common methods of financing. The advantages of using your own money are (1) there are no finance charges and (2) your search for additional funds is minimized. The disadvantages are (1) you lose the interest you could be earning on your money and (2) you lose the use of your savings as a cushion for any future emergencies.

  • Commercial Banks

    All banks have a commercial division. Since the banking industry was deregulated, many savings and loan associations also engage in commercial banking. All commercial banks offer business loans -- both short-term and long-term -- at prevailing interest rates.

  • Government Agencies

    Federal, state and local government agencies offer special financial assistance to small businesses. Many loan programs, administered under government guidelines and funded by the government, are available. Each program is designed to assist a special type of business

  • Public Funding

    While public funding is seldom available for start-up, there are several different sources of loans and grants for which you can apply. These sources of financing can be divided into six categories: private sources, venture capitalists, commercial banks, government agencies, grant programs and other sources.

  • Grant Programs

    Grants are sums of money provided to businesses without a repayment obligation. They can be funded by federal or state government agencies or by private foundations. Grants are generally reserved for research and development and nonprofit organizations; few for-profit businesses qualify for grant programs.

  • Other Sources

    Credit unions and life insurance companies also can be a source of funds. Credit unions offer personal loans to members, usually at interest rates lower than those of commercial banks. Insurance companies will often loan money against a life insurance policy for up to 95 percent of the policy value. Their interest rates also are generally lower than those charged by commercial banks. Interest payments may be deferred as long as your premium payments are made. But until the loan is repaid, your coverage will be reduced by the amount of the loan.

DEVELOPING A MANAGEMENT PLAN

Like the marketing program, your management system will help set the foundation and ultimate plan for your business. Planning and developing a program that adequately manages your center is very important. There are many factors that you must consider, such as finding and hiring qualified staff, determining staff size, setting working hours, deciding on staff responsibilities, establishing salaries and fringe benefits and developing personnel policies. Since it is unlikely that you will have all the skills needed to effectively manage your center, you will have to hire personnel who have the skills you lack.

BALANCING INCOME & EXPENSES

Add your first-year operating costs and start-up costs to determine how much money you will need from the time you decide to open the center through the center's first year of operation. When including parent fees as income, remember that most centers do not have total enrollment until at least three months after they have opened for operation, and some take several years. After completing your projected expenses and revenues, determine whether the expenses match the income. If not, you will need to lower the costs or reevaluate your market. If you cannot raise additional monies, decide where you can cut costs.

Can you reduce your program's supply costs by relying more on recycled materials? 

Would such cuts help?

You may be tempted to cut salaries or fringe benefits since they consume a large part of your costs.

However, these are important in attracting and maintaining a well-qualified staff. Also, reducing staff may place you out of compliance with state licensing requirements and your own standards of quality. You may want to consider increasing fees or tuition in addition to looking for other sources of revenue. 

Check your needs assessment and determine what parents can afford to pay and what seems to be the going rate at centers similar to yours. Be aware of tax credits available to parents for day care, and contact your local IRS office for the latest information on child care tax credits.

Some centers have a sliding fee scale, which means that parents are charged different scales depending on their income level and number of children.

 Remember, if you lower a fee you have to make it up in other fees.

WHO'S YOUR INSTRUCTOR?

Marilyn Randolph

Marilyn Randolph

Instructor Title

Hello, I am Coach Marilyn, and I want to say thank you for allowing me to be on this journey with you.  I am so excited for you!!! Congratulations, on making an investment to become a Licensed Child Care Provider. Welcome to the three day Family Child Care (FCC) training course.  Becoming a Family Child Care provider, you will learn to help your clients more effectively.  You will be equipped with resources, tools, and strategy to help you achieve your dreams.

Questions to Ask a Home-Based Daycare Provider

Leaving your child in the care of another is never an easy thing. 
You will find a good childcare solution!

In the end, it comes down to trusting your intuition, but you’ll also want a complete list of questions to ask potential child-care providers.

We hope this helps


Family Child Care


  • Are you certified/ licensed/registered?

    Providers caring for more than three children not from the same family are required to be licensed. A certified provider has had a background check and met certain standards for safety and adult-to-child ratios. Also, they must be recertified or renew their license every two years.

  • What education do you and your staff have?

    The main provider should have some early childhood education. They should also have Infant/Child CPR and First Aid training. o What is the adult-to-child ratio? There should be a maximum 1:10 ratio with no more than children under age 24 months and no more than 6 total under kindergarten age.

  • Do you have an assistant?

    If yes, ask to meet the assistant

  • What is your policy regarding sick kids? Do you send kids home at the first hint of a sniffle, or do you wait until a child has a fever?

  • Why did you decide to become a child-care provider?

  • What do you like most about caring for children? What do you like least?

  • How do you discipline children when you see tantrums, pushing, fighting, and arguments?

    It’s important to find out which discipline methods are used as well as which ones are prohibited

  • What would you do if my baby or child cried inconsolably?

    The provider should try a series of calming techniques and also ask you what would calm your child best.