Basic child care business practices don’t have to be hard or frustrating. At this session, learn some simple tips about using contracts and policies; how to get the most out of your marketing strategies; and how to be prepared when tax time comes (and save money)!

1. ChildNet Module 6:
It’s Your Business
A training series by Iowa’s Child Care Resource & Referral
with funding from Iowa Department of Human Services

2. Business Practices - Why?
•Essential to success of your program
•Increases income potential
•Presents a professional image to
parents
•The IRS considers you a business

3. Budgeting
• Income
• Fees from parents
• CACFP reimbursement
• Quality Rating System bonus
• Others?
• Expenses
• Child supplies
• Household supplies
• Others?
• Insurance

4. Budgeting – Liability Insurance
“Actual Claims:
• * A day care child pulled down a bottle warmer on top on
another child - $525,000
• * An older child dropped an infant on the floor - $300,000
• * A bookshelf fell on a child - $273,000
• * A two-year old [contracted] E. Coli - $130,000
• The only way to protect yourself in these situations is to
purchase business liability insurance.
• Your homeowner's insurance won't cover you for injuries or
damages suffered during the course of your business.”
(Copeland, Do You Have Liability Insurance to Protect Your Business?, 2011)

5. Making a Profit
• Why?
• We need income
• We need to stay in business for the sake of the
children
• Avoid burn-out by meeting your expenses and
having enough income left over

6. Making a Profit – Raising Rates
• Rates and confidentiality – Anti-trust laws prohibit us
from sharing rates with competitors (other child care
providers)
• Find average rates by county through CCR&R at:
http://www.iowaccrr.org/data_publications/fy2012_data/
• Use your budget to support the need for your rate
• Give parents ample notice
• Set a regular rate for income security (vs. hourly)
• Require payment up front (ex: every Monday)

7. Contracts & Policies
• Contract = Time and Money
• Signed and dated by parents and provider
• Review, update and re-sign annually
• Policies = What you expect from parents; and what they can
expect from you
• Review annually and update as needed
• Usually 2 seperate documents
• Policies are sometimes called ”Parent Handbook”

8. Contracts & Policies: Resources
• Heartland Family Child Care Handbook
• http://www.tomcopelandblog.com/
• Family Child Care Contracts & Policies by Tom
Copeland
• CD-rom: Contracts & Policies Creator
• www.nafcc.org “Business Center”
• Tips and advice
• Webinar training

9. Files and Record Keeping
• Good business practices = greater income
• Regulations for Family Child Care Require specific
paperwork and files for health and safety
• The IRS views you as a business
• Files for:
• Children’s information
• Provider’s requirements
• Income tax preparation

10. Record Keeping for Taxes
1. Record income from all sources
2. Save receipts of all business expenses, and
expenses related to your home
 File by type (ex: “toys”, “utilities”)
3. Record attendance, menus, and the number of
snacks and meals served
4. Track all the hours you work in your home
 When children are present and when they are not
5. Record mileage for business trips
Copeland, T. (2004). Family Child Care Record Keeping Guide. St. Paul, MN: Redleaf Press.

11. Marketing
 Marketing is more than advertising!
 It is...
 1st impressions
 Curb appeal
 Appearance of home and you!
 During and outside of work hours
 Day to day program practices
 Home environment (module 2)
 Professionalism

12. Interviewing Potential Clients
 Phone interview
 Have basic info ready by the phone
 If children need you –call them back
 Smile :) when you talk
 Record a short, pleasant voice-mail message
 Send more info by mail, email, or direct them
to your website
 Set up a home interview

13. Interviewing Potential Clients
 1st Home interview
 Tour child care environment
 Go over program policies
 Learn about the child and what family is
looking for
 Are you a good fit for each other?
 2nd Home interview – during business hours
 Allows parents to see your program in action
 Allows you to see how the child responds

14. Working with Clients through Problems
• Be prepared with policies and best practices
• R - Reflect on feelings & listen
• E - Explain your point of view
• R - Reason for your point of view
• U - Understand situation from both sides
• N - Negotiate a solution
Gonzalez-Mena, J. (2009). Child, Family, and Community - Family-Centered Early
Care and Education.

15. Review
• Sound business practices are essential to your success
• Use a budget to make a profit
• Use a contract and policies with families
• Take time to maintain files and record keeping for taxes
• Use best practices to create positive marketing
• Be prepared for phone interviews and face-to-face
interviews
• Work through issues with a problem solving strategy

16. Now What?!
1. Assess current practices with the Module 6
Best Practices worksheet
2. Find an item to work on
3. Transfer it to the Learning Log
• Consider Learning Log activities to try too!
You can do this!

17. Next week:
Module7 – Germs:Yours, Mine, and Ours
• Ways to stop the spread of illness
• Health policies
• Preventing Sudden Infant Death Syndrome
• Best practices for:
• Hand washing
• Diaper changing
• Cleaning, sanitizing, and disinfecting