Research question

[Inspired by Reggio]

Pros and cons between the two are going to totally depend on your goals and support you feel you need in your business ... I have worked in both settings and these are things I have heard peers say between the two as to why they choose to go one way over the other. I am sure others will have other reasons as well

Benefits of being with an agency for the provider can be ...

• Agency provides advertizing and referrals to help fill you up ~ access to subsidy for clients can be appealing depending on your neighborhood
• Agency deals with all contracts and financial aspects with clients and than pays you a 'fee' for your service based on your contract with them of X/child/day for any client that is 'theirs' ... aka if the client 'stiffs' the agency you still get paid
• Agency provides support on challenging children referred through them via home visits and professional development as well homes can access the same 'resources' as centres can for things like professional support coming into the program to deal with behaviour, special needs and so forth.
• Agency also acts as support for any conflict with their referred clients and acts as 'mediator' for problem solving around differences of opinion on child rearing or following policies and procedures of the client.
• Agency provides professional development, toy lending and equipment lending programs
• Agency sometimes get access to government grants which can benefit provider ~ wage enhancement grants, toy and equipment grants for their toy lending programs, etc.

Cons to being with an agency

• Ratio of no more than 5 children includes your own children who are under 6 ~ so if you have wee children your income will be limited.
• You have to follow the age restrictions of no more than 3 under the age of three and of those 3 no more than 2 can be under the age of two ... so again if your children are 'wee' you are already limited financially and even if you do not have wee ones of your own the Full Day Early Learning in Ontario is making it harder to find children over 3 to fill those other two spaces thereby limiting the income of providers!
• Your home has to pass 'health and safety inspection' before you can be licensed ... this often limits 'where' in the house you can offer your program as any area that the children are in must have two exits that meet fire code bi-laws which limits a lot of 'basement playroom' options as the small windows / window wells they often have to not meet code as a viable 'exit'.
• Your program must meet all the criteria in the day nursery act ~ minimum of 2 hours of daily outside time all year long ~ with access to a 'fenced' yard, program plan that shows how the 5 domains of development are being stimulated daily, posted menu that meet or exceed Canada Food Guide, fire evacuation plan and monthly drills recorded, etc. = more paperwork than some unregulated providers would engage in
• While some agencies allow you to have 'private clients' some do not ~ so you are totally reliant on them to 'fill you up' so to speak.
• Depending on your location agencies tend to pay providers a little 'less' than the private market plus it costs the clients a good $10-15 more a day.... so for example in my region the average private market fee is $$25 - 35/day where as an agency they charge clients $45/day but than only pays the provider $30 plus whatever wage enhancement grant they may be getting so back in 2007 it was $2/child/day on referral .... so if you are in an area where you can privately get $35 a day for child you are earning 'less' being with the agency but if you are a $25/day for private than you are earning 'more' being with an agency.

Pros to being Private

• You have total control over your business and can create your policies and contracts as you see fit .... being as simple and laid back as you want with your contracts, record keeping, program and so forth and following whatever health and safety criteria you feel is your due diligence
• You can care for 5 children plus your own of any ages that you see fit which gives you more financial flexibility.
• You can charge whatever the market will bare to clients and you get to keep it all ~ there is no middle man keeping a 'cut' of the fee clients are paying.

Cons to being Private

• You are totally responsible for all advertizing, interviewing and contracting of clients including dealing with clients bouncing payments or paying late and so forth ~ no in house support or mediator for dealing with conflict with clients or children with challenges within your program
• You are on your own to seek out networking, support and professional development (which is out there in most communities via Ontario Early Years Centres and for free or next to free)
• Unregulated care often gets confused with 'illegal' childcare and some communities it deters clients from choosing you even if you are awesome and following all the same 'rules' a regulated agency model does but just without the 'middle man' driving up the cost

Hope that helps