Child Day Care Business Risk & Challenges

by Shelley Frost; Updated September 26, 2017

A child care center offers a rewarding option for an entrepreneur who loves children. Owning a daycare consists of more than simply playing with kids all day. The business inherently brings risks and challenges to the owner. Identify the potential risks for your personal daycare business to remedy them before they develop into full-fledged problems.

Legal Issues

Daycare centers follow guidelines and regulations from the government to ensure the safety of the children. Infractions of these laws result in hefty fines and possible closure of the childcare center. Ensure that all of the laws and guidelines are followed in the daycare center based on your specific type of license. Fulfill the requirements of the licensing procedure, maintain your insurance policy and comply with all inspections to avoid legal issues.

Staff

Finding high-quality employees to staff a child daycare proves challenging in many areas. The pay scale for daycare employees falls below the level that many people need to pay their bills. Yet hiring qualified staff members ensures the children receive appropriate care at the center. Striking a balance between pay and quality causes problems for some daycare owners. One remedy is to provide specific training for the hired staff members to give them the tools to succeed.

Enrollment

Maintaining the enrollment numbers at the childcare center provides the financial support necessary to continue operation. A low enrollment reduces the center's income. This often means difficulty paying rent, salaries of staff members, insurance and other expenses. The daycare center may take time to reach full capacity. Research the local market and establish a solid advertising plan to fill the slots in the daycare quickly. Provide high-quality care and customer service to the parents to keep the enrollment high. Satisfied parents will keep their children in the program and refer it to others. When you do reach maximum capacity, start a waiting list. This provides a back up list when a child leaves the center, reducing the chances of lost income from reduced enrollment.

Discipline

Discipline issues exist in any child care facility. Biting, hitting and the inability to follow directions top the list of daycare behavior problems. A solid plan for addressing these behavior issues creates a uniform behavior management system. A stimulating environment keeps children engaged in active play, further reducing the behavior incidents. Communicate openly with parents when repetitive behavior problems occur to build a partnership with them. Demonstrating that the center knows how to handle discipline problems creates a good reputation.

Child Safety

The safety of the children under your care requires a great deal of attention. Risks to the children reduce your reputation as a quality care provider. Serious injuries to the children may result in lawsuits, irate parents and other negative effects. Create a set of policies and procedures that address potential risks for children. Topics include chemical storage, visitor policy, facility maintenance, student-to-teacher ratio and playground rules. Providing the staff members with appropriate training allows them to identify and prevent potential risks.

References

About the Author

Based in the Midwest, Shelley Frost has been writing parenting and education articles since 2007. Her experience comes from teaching, tutoring and managing educational after school programs. Frost worked in insurance and software testing before becoming a writer. She holds a Bachelor of Arts in elementary education with a reading endorsement.