Getting Your Childcare License Increases Your Cash Flow
Many people feel that getting a daycare or childcare license is not necessary for childcare providers. Legally you only need a license if you are going to care for children from more than one family. It's true that going through the process of obtaining your daycare license can be time consuming and sometimes stressful. However, the truth is that obtaining your childcare license can actually help you make more money! There are three ways that a daycare license increases your cash flow. They are: 1. Charging higher rates and bringing in new clients; 2. Income from food programs; and 3. Grant money.
Let's take a closer look at item # 1. Charging higher rates and bringing in new clients. Parents searching for childcare look at both quality of care and cost of care when making a decision. Believe it or not, childcare rates can vary very much even in the same geographical location. So it pays for parents to shop around. However, most parents are willing to pay a little more for childcare if they know the quality of care will be outstanding. Obtaining your childcare license shows your dedication to top quality care. Also, many parents are not willing to place their child in an unlicensed childcare because there are no inspections done and no one is monitoring the childcare provider. So having your license can actually help your bring in more business!
The second way a daycare license helps increase cash flow is from income through the food programs. Food programs are systems set up to help educate childcare providers on serving healthy snacks and lunches to the children they care for. As a provider you must submit a monthly menu of what you serve for monitoring. It takes a little more work, but you are actually reimbursed a portion of the cost for each meal and snack you serve! These reimbursements are not huge but they certainly help defray the cost of feeding multiple children several times a day. These food programs are only available to licensed providers and they can definitely increase your cash flow!
Finally, getting your daycare license allows you to apply for the many grants that are available for home daycare providers. There are a lot of grants out there from local, state and federal government as well as from private sources. Some grants stipulate how the money is to be used; for example for play equipment, books, or facility improvements. Other grants are more open-ended and allow you to use the funds though they are needed for your childcare business. These grant monies are like pennies from Heaven and can really help financially! But these grants are only available to licensed childcare providers!
As you can see, getting your childcare license can really help boost your business financially. Even though the licensing process may be cumbersome, it can really "pay off" in the end!