Getting Started in the Business of Family Child Care - Part I

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

  1. How to Promote Your Business

  2. How to Create Contracts and Policies

  3. How to Keep Records

  4. How to Reduce the Risks of Running a Business

  5. How to Manage Your Money and Plan for Retirement

How to Begin

  1. Find out what the child care regulations are for your area and follow them.

Each state has its own child care rules that govern health and safety issues. They also cover how many children you can care for, what type of training you must have, and much more. If you do not follow these rules, you could have increased liability for any injuries to the children in your care.

There are many benefits to being regulated (some states call this licensing), such as extra tax deductions and sometimes higher subsidy payments for low-income parents. In addition, you can get access to the Food Program, the resources of Child Care Resource and Referral (CCR&R) agencies, and local grant and loan programs.

  1. Join your local family child care association.

Family child care associations are groups of providers who help each other and improve the child care profession. They can offer monthly support meetings, professional growth, discounts on products and services, newsletters, public policy advocacy, and much more.

  1. Sign up with your local Child Care Resource and Referral agency (CCR&R).

These agencies help parents find child care in their local communities by keeping up-to-date information on providers. They also train providers and offer access to other community resources, such as grants.

  • Join the Child and Adult Care Food Program (CACFP).

This federal program offers education on nutrition and pays providers monthly for some of the cost of the food they serve to children. All providers are eligible for this program. Depending on where you live and your household income status, you will be paid about $600 or $1,250 a year per child.

I. How to Promote Your Business

If you offer a safe caring, and high-quality program, the word will get out to parents and your business is likely to succeed. As providers increasingly face competition from other child care programs, however, those who know how to market their program will have an advantage.

Marketing is much more than advertising, business flyers, and business cards. A good marketing strategy continually promotes your program to parents who might use your services.

Start by making a list of the benefits of your program. Benefits are the things about your program that make a difference to the parent or the child, such as child-centered curriculum with planned learning activities; an enclosed yard for safe, fun outdoor activities; individual care and attention to help children learn quickly; an energetic provider who supports families; accreditation by the National Association for Family Child Care; or a Child Development Associate (CDA) credential.

If you have already begun providing child care services, ask the parents and children in your care what they like best about your program. Pick three or four to memorize, and then find ways to get the word out. A parent’s impression of the outside of your home, how you conduct yourself during a phone call and parent interviews will be some of your best advertising.

  • Create a positive, professional impression when you record a message on your telephone answering machine. Identify yourself and your business. Indicate that you can’t answer the phone because you are with the children.

  • When a parent calls, try to identify her specific needs to help in your screening process. Describe the benefits of your program. Set up a time for the parent to come for an interview.

  • Keep the outside of your home clean and uncluttered. Mow the lawn, clean the front windows often, and plant flowers.

  • Create a welcome feeling in the foyer or entry by putting children’s items at a child’s level. Eliminate bad odors. Post photos of children (with parent’s permission), credentials, and an activity schedule on a bulletin board.

  • When interviewing a prospective client, offer written materials describing the benefits of your program. Give the parent a tour of your home. Point out things that make it a safe, fun, and creative place for children to learn. Introduce your own family members.

  • Use photo albums (with permission) and scrapbooks to illustrate the benefits of your program.

  • Tell parents on a regular basis what their children are learning.

  • On the first day of care, give parents and children a welcome note, perhaps with a photo. Have the child bring a favorite toy or nap blanket.

  • Offer a finder’s fee (free day of care, free night out, or money) if a parent refers a prospective client who you end up enrolling.

  • Keep track of the children after they leave your care by sending them birthday and holiday cards. Post any letters or photos you receive (with permission) on your bulletin board or in your scrapbook.

  • Create a business name (like Country Munchkins, The Small School) and register it with your Secretary of State’s office. This prevents other programs from using the same name.

  • Make a coupon that offers a beginning discount on your services. Hand them out like business cards. Everyone loves a sale.

  • Distribute flyers about your business in the community grocery stores, laundromats, elementary schools, hospitals, real estate agencies, and so on.

  • Use other organizations to help you promote your business. Talk with your regulator and your Child Care Resource and Referral agency about how to attract new parents. Attend local family child care association meetings. Get advice and encouragement from other providers.

Don’t try to run the cheapest program around. Someone will always charge less than you. Instead, stress the benefits and the value of your program. These may include individual attention that helps children learn faster, a home environment, availability to all ages of children, or flexible hours. When competing against child care centers, focus on your advantages. When competing against unregulated caregivers, emphasize the health and safety aspects of your program.

For more ideas and strategies to promote your business, see my Family Child Care Marketing Guide from Redleaf Press.

Tom Copeland - www.tomcopelandblog.com

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