Know the Risks in the Child Care Business

August 02, 2022
  • So, you finally made up your mind to get into the childcare business? Welcome onboard! Let me be the first to tell you that you made the right choice. Besides being super fulfilling and eternally rewarding, the childcare industry is also as lucrative as can be. Don’t take it from me, take it from the US Bureau of Labor Statistics which confirmed an estimated growth in the industry due to more families joining the workforce.

    That said, I will be doing you a disservice if I don’t clearly state that there are as many risks as there are fun. Yes, ups and downs abound even in the childcare industry. In fact, I believe there are more risks here than the average business. Why? Because you are dealing with the lives of children who represent families and the future of our dear country.

    This shouldn’t scare you, though. It is easy to mitigate these risks once you can identify them. Let’s get to business.

    1. Safety Risks

    It is no coincidence that safety is number one on our list. In case no one has told you yet, safety is the biggest concern in the childcare business. Worse, this isn’t a one-off thing. Safety concerns will be there from before you open your doors to every single day that you open for business. Yes, you read right. Regulatory bodies as well as individual parents hold you to a high standard when it comes to safety. You are responsible for every child under your care, from the second the step into your facility.

    How to mitigate this risk?

    • Create a safe environment free from any form of hazard
    • Leave no child unattended to
    • Buy only safe and age-appropriate toys
    • Discard damaged equipment/supplies
    • Strictly adhere to the safety rules in the Child Care Act


    1. Legal Risks

    Yes, there are legal regulations in every industry. However, the legal red tapes in the child care industry are nothing like what you see in other commercial businesses. From the moment you made up your mind to dive into this pool, I strongly encourage you to seek out legal rules in your local county/state. Although there are some general rules across the country, you will soon learn of the unique rules in individual states. Furthermore, you need to abide by every rule established by your local regulatory body.

    These legal issues can arise from failure to;

    • Get the right license
    • Complete recommended training and seminars
    • Follow building codes and special requirements
    • Hire the right number of staff
    • Admit the stipulated number of children
    • Operate within the time allowed
    • Ace (the never-ending) inspections, etc.


    1. Health Risks

    Every risk on this list is super important and unfortunately very common, but if I were to put a scale on them, health and safety will rank number one. As you fight to stay on the good side of the law, you have to fight even harder to ensure the kids under your care are not only safe but as healthy as they were when they came in this morning. This is where it gets tricky because sometimes, through no fault of yours, a child could fall ill while at the child care center. Even more concerning, there are tons and tons of things that can make children fall sick. From the paint on the walls to the food you fed them and even simply playing with other children. It is a constant fight to keep them well and alive.

    How do you mitigate this?

    • First, please follow every health guideline stated in the Child Care Act and by your local regulatory bodies. These are well curated to ensure the safety of every child.
    • Consistently make an effort to keep your center clean and healthy.
    • Maintain good hygiene and teach the staff and children to do the same
    • Follow the recommended meal plan
    • Have a sick policy
    • Watch the children like a hawk
    • Work with parents to understand allergies and special conditions
    • Don’t self-medicate. The children’s parents and doctors are in the best position to provide the medication
    • When in confusion, quickly contact parents and their doctors


    1. Hiring Concerns

    Another common risk and concern in the child care business is staffing. So far, you can guess that this is a strictly supervised industry. To excel in this business, you need the right team behind you. No, you CAN NOT do it alone. And no you cannot hire just anyone. You must follow a strict hiring process to ensure your staff is truly qualified and passionate about this job. They need to possess certain characteristics and skills such as patience, interpersonal skills, communication skills, trustworthiness, etc.



    These are just the top 4 risks and concerns associated with the childcare business. Please do due diligence and familiarize yourself with the industry before setting up your child care center. Don’t worry, it gets easier once you get a hang of it. Don’t let this scare you!

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