The first step to starting a daycare business is to get the license you need to legally operate the business. While some very small operations are not required to be licensed, regulations are put forth to ensure the care and safety of the children. As such, there are a number of conditions that must be sufficiently met to acquire a child care or day care license.
Barriers to Getting a Daycare License
If you are planning to get a day care license, you need to be mindful of the common barriers to getting a license. Here are some reasons why your application for a daycare or child care license will be denied:
You fail your background check
Part of the process when applying for a daycare or child care license is a background check. They will look into police reports, child abuse and neglect reports, court documents, evictions, money transactions and other relevant information. Note that background checks will be run for all the people in your business, and not just you.
The licensing authority will check if there are records of any arrests, convictions or other offenses such as child abuse and neglect. They will look whether you have a conviction, pending charge, or probation before judgment for acts such as murder, the sexual offense of any kind (including prostitution), assault, child pornography, abduction or kidnapping of a child, manufacturing or dealing with controlled dangerous substances, among others. By looking in your background, they can make the care for children and operate a child care business. Your child care license application can be denied if they see any unsavory past records.
You submitted an incomplete application package
Carefully read and list down all the requirements for child care or daycare licensing in your state. Some states will require employment and education resume for the director as well as program supervisor, child care handbook, floor plan of the facility, health care plan, professional references, Social Security Card for sole proprietors or employer identification number for corporations, among others. Make sure that you complete and submit all the requirements. Refusing to submit or make available any records or information required by the licensing agency is grounds for denial of the application.
Your place of business fails to meet the requirements
Licensing agencies have very specific rules with regards to the layout and configuration of child care facilities. The goal is to ensure that the premises for the business are safe, sanitary and allows for easy supervision, without posing any danger to the children.
Depending on the requirements in your state, the indoor space must sufficiently accommodate the number of kids that will be cared for, with adequate space for service areas such as kitchen, facilities for washing and bathing, a storage facility for mattresses and toys, as well as fully enclosed sick bays for sick children.
You reported false information in your application
Your child care license application can be denied if you make false statements or leave out important information.
You failed to correct previous infractions
If you had your daycare or child care license previously revoked or application denied, you need to show proof that the condition for the basis of the denial or revocation has been corrected.
You have tax delinquencies
Most states review and search the tax records of daycare license applicants. If the Department of Revenue notifies the child care licensing agency that you have been certified liable for delinquent taxes, your application will not be approved.
You cannot prove that you are able to provide for the health, safety or welfare of the children
Your application can be denied if the regulatory agency finds credible evidence of alcohol or substance abuse. It can also be denied if you have mental instability and other conditions.
The licensing agency will notify you in writing the reasons your child care license application is denied, stating the reason for the denial and the specific regulation that you did not pass.
If your application is denied, check with your local child care licensing authority when you may be able to reapply. In Wisconsin, for example, you can apply again two years after the original application for a license is denied.
Recommended Books on Opening a Daycare Business:
- How to Open & Operate a Financially Successful Child Care Service: With Companion CD-ROM
- How to Start a Home-Based Day-Care Business, 6th (Home-Based Business Series)
- The Ultimate Daycare Starter Workbook (Volume 1)
- Daycare Building Blocks for a Highly Profitable Childcare Business: How to Boost your Enrollment and Your Profits
- Family Child Care Contracts and Policies, Third Edition: How to Be Businesslike in a Caring Profession (Redleaf Press Business Series)
- Starting a Daycare Business in Arizona
- What Do You Need to Open a Daycare Business?
- Starting a Family Child Care Business
- Operating a Daycare Business and Caring for the Children
- How to Start Your Own Daycare Business