About to Start a Daycare Business? Ask These 7 Questions First
Daycare businesses provide a lucrative business opportunity for owners, offer full-time jobs for workers, and provide parents with a high-demand service. According to statistics, a large-scale daycare facility could earn up to $600,000 each year after it expands. Individual workers might earn up to $10 an hour depending on how many children attend the daycare program daily and how often. Prospective daycare owners who want to start a new business review the 7 questions to ask when starting a daycare business.
1. Does Business Need Child Care Insurance?
Child care facilities that need child care insurance include large businesses, home-based child care, after-school programs, services that offer childcare for customers or employees, early childhood education programs, and any facility that is public, private, or operated by a non-profit organization. The insurance is necessary for protecting the business from serious liabilities. The first reason for obtaining the coverage is to protect against conditions that lead to child-related injuries. It covers property liabilities that cause injuries such as spilled liquids that lead to a slip and fall injury. The policies pay for medical treatment in the event that a child becomes injured. The daycare owner is covered against lawsuits filed by parents if a child is injured. In the policies, the daycare owner is protected if their equipment becomes damaged and causes an injury. Professional liability coverage is included in the policies for instances where the owner is accused of negligence or abuse. It includes coverage for any vehicles that workers use to transport the children through an additional commercial auto liability policy. Facilities are covered against corporal punishment liabilities if a worker is accused of disciplining the children and causing injuries. Abuse and molestation liability is included in the coverage if a worker is accused of harming a child and a lawsuit is filed against the daycare facility. Essentially, the child care insurance policy is an umbrella policy that provides wide-spectrum coverage for the business, the owner, and all workers. The insurance policy premiums are based on the size of the facility, the total number of children in the facility, and any extra services provided by the facility. Daycare owners who need a complete quote for coverage find more information at garrity-insurance.com now.
2. What are the Licensing Requirements?
Each state has its own licensing requirements, and the child care facility must fulfill all requirements before opening and offering services to families. First, the daycare must have a business license before it can open. The owner must file an application for the business license through the proper authorities. When filing for the application, the local authorities schedule an inspection of the property and ensures that it meets all health and safety requirements. If the property isn’t up to standards, the caseworker provides a list of all conditions that require changes, and the prospective business owner has about one month to make them. All childcare workers must have first aid training and have a childcare license according to the state’s current requirements. Typically, if the daycare workers are providing any type of educational programs, the workes must have a CHC30113 which certifies the individual in Early Childhood Education and Care. However, if the facility is home-based, the workers don’t need a license if the facility doesn’t keep more than two children each day.
3. What Type of Funding is Available for the Startup?
Reviewing funding options for a startup helps prospective owners find better choices. There are several grants to daycare owners through the government. Prospective owners file for grants to cover the cost of opening the daycare facility when the individuals have limited resources. Using government programs helps the business owners create a company that offers incredible services for parents who need help while they are working. The Child and Adult Food Care Program have always been helpful to daycare facilities.
4. Will the Daycare Provide Educational Programs?
Educational programs are offered through child care facilities each day. The programs are available for children of all ages and offer early education curriculums. All workers who provide the programs have formal training and provide lessons in phonics, reading, and simple math. Children who attend the programs are prepared for kindergarten work and have an advanced understanding of reading and spelling. Daycares that want to offer the programs are required to ensure that the workers teaching the programs have proper credentials.
5. How Many Owners are There, and What is the Role of Each Owner?
Identifying the role of each owner is necessary when starting a daycare facility. When there is more than one owner, each owner takes on specific responsibilities that are defined in the contract for the business. The role of each owner dictates where liabilities lie if the daycare becomes the defendant in a lawsuit.
6. Would a Daycare Franchise be More Beneficial?
Daycare franchises offer additional help for the business owner. A franchise gives the owner instant credibility and access to training programs for the workers. Marketing and advertising efforts are managed by the parent company and attract new customers to the business and maximize profits for the owner. Logos and franchise-based floor plans are also available for the new franchise owners. Reviewing the opportunities help the prospective owner determine if the franchise is the best choice for them. Funding for a franchise makes the startup easier and helps the business owner get the business open faster.
7. Is a Budget Model in Place?
Setting up a budget model helps the business owner avoid overspending and keep all overhead costs under control. The budget defines how much the facility owner pays workers, and if the business can afford additional equipment required for the children. A small budget places even more limitations on the business and might restrict how many children the facility accommodates. Prospective daycare owners review questions that help them define how they will start the new business. The answers also define what requirements must be met before opening the business. Daycare facilities offer a lucrative business opportunity that could offer up to $600,000 each year depending on the size of the facility.
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