Are you interested to start an adoption agency business? If yes, you have landed at the right place. Here in this article, we provide you with a complete plan guide to starting an adoption agency business with costs, legalities, and much more.
The rise in child adoption has seen a huge growth in the last few years. For example, as per the latest data, 2% of the children in the USA are adopted. In every 25 families in the country that have children, one has an adopted child.
Under such conditions, you can think of starting an adoption agency business. This business is profitable as well as welfare-based. You will be able to provide a home and a better future to so many children. Hence, do your planning and research and then consider starting this business.
What is an Adoption Agency?
In simple words, an adoption agency works as a bridge between the adoptive parents and the child. These agencies also work with the birth parents and help in a smooth adoption process by completing all legal and medical formalities.
The adoption agency is not just a service-providing agency; it is an industry with billions of dollars involved. Therefore being a part of this industry will bring you high returns. But how? You have to study many factors before starting the business.
Keep in mind one thing. Running an adoption agency needs a lot of responsibilities and discretion on your part. In fact, your passion and love for kids will be key to your success in this business.
16 Steps to Start an Adoption Agency Business
1. Learn How An Adoption Agency Business Operates?
It is extremely important to know the rules and regulations to follow to operate an adoption agency in your desired location of business. You can get in touch with renowned agencies and try to find out. Otherwise, you can gain experience in working in such an agency. This will make you smarter and more aware.
2. Understand the Market
Before you choose an area for your adoption agency business, do thorough research. You have to focus on several points. First of all, you need to do demographic research. This will include the average age group, economic conditions, number of families with and without children, etc.
Secondly, get to know the data about abused children, the destitute, etc. Another important aspect of your research should be your competitors. Try to find out how many competitors you have in the area. This will help you in planning your strategies.
3. Legal Requirements
Study the law of the land regarding adoption and adoption agencies. Furthermore, go through all the details as well as read between the lines. If you are from the United States, go through the website of the Child Welfare League of America (CWLA) to know the details about the ideal conditions.
Along with that, study the legal factors of the Federal as well as State Governments regarding adoption and adoption agencies.
4. Find a Location
Now that you are equipped with information as well as knowledge, find a location for your adoption agency. Choose a strategic location, spacious house, or building. Keep in mind that you will need office space, a discussion room, and a place for the children. Therefore, choose the place carefully and judiciously.
5. Write a Business Plan
Writing the business plan for your adoption agency company is the next step. Write down every detail in the business plan. It will include:
- Aims and Objectives
- Your Experience, if any
- Types of Services
- Your Team & Operation Planning
- Start-up & Recurring Cost
- Source of Fund
- Legal Conditions
- Marketing Plan & Expenses
- Estimate of Profit
Discuss all these points with as much accuracy as you can. Remember, a written business plan will help you in setting up your business properly.
6. Decide on the Nature of Adoption Service
It is essential to decide on the nature of the service you are going to provide as an adoption agency. In this regard, you have to state clearly your packages and the cost involved. Furthermore, you must mention whether you will offer adoption of newborns, kids, or teenagers children and national or international adoption. Give details of medical records and legal assistance for adoption.
7. Select a Business Name and Domain
Choose a suitable and appealing name for your adoption agency business. You have to get the domain in the name of your business. If the domain is not available, you have to opt for another name.
8. Create a Legal Entity
Now, give legal status to your adoption agency business. Every country and state offers a wide range of business structures. Select the one that fits your requirement the best.
For people planning to start an adoption agency in the US, find out the suitable status from Sole Proprietorship, Partnership, LLP, or S. Corp. Talk to your legal consultant about this. Furthermore, apply for the EIN.
9. Licenses and Permits
Your adoption agency business requires several licenses and permits from the Federal and State Governments. It also requires a green signal from the Child Welfare Department, Fire Department, First Aid, and CPR Certification, Food Handler Certification, etc. It is without saying, these types of licenses and permits are almost mandatory to run an adoption agency.
10. Open a Business Bank Account and Credit Card
A bank account in the name of your business is necessary. Along with that get a business credit card for your adoption agency business.
11. Apply for Taxes
It is advised to talk to the local competent authority or a lawyer and learn more about the tax requirements to start and run an adoption agency in your locality. As instructed register for taxes that apply to your adoption agency business.
12. Buy Insurance
Get the necessary insurance policies for the safety and security of your adoption agency. Some of the most important insurance coverages include General Liability Insurance, Property Insurance, Worker’s Compensation Insurance, etc.
13. Hiring Staff
You will need different kinds of manpower for your adoption agency company. On one hand, you will need legal consultants, medical professionals, accountants, office assistants, and marketing personnel. On the other hand, you have to hire maintenance staff, caregivers for the children, front office executives, etc.
14. How can you Get Funding?
There are several sources of getting funds to start your adoption agency business. Some of the places you can explore are the following:
- Your Own Savings
- Funding from Relatives and Friends
- Grants from Government Agencies
- Corporate and Private Donations and Grants
15. Heads of Expenses
The expenses for your adoption agency business will be under several heads like
- Salaries and Wages
- Consultancy Fees
- Medical Expenses
- Marketing and Publicity
- License and Permit Fees
Apart from all these, you will need to spend money on various other heads depending on the nature of the adoption business.
16. Marketing & Publicity
Plan your marketing strategies well, so that you can get maximum benefits. Follow different policies and make the name of your adoption agency business well-publicized.
a) Ads, Posters, Banners
Ads are a very useful method of marketing. Give ads in newspapers, radio, and television about your adoption agency business. Put up posters, banners, and hoardings at prominent places to get your business name noticed. Also, distribute pamphlets, flyers, and brochures to people. Also, don’t forget to create a catchy logo for your adoption agency.
b) Direct Contact
Get in touch with people directly. This includes social welfare organizations, prospective parents, medical centers, etc. Try to build awareness about adoption as well as your organization.
c) Create a Website
Take the help of an expert web developer to design your website. It should be a good information center for your adoption agency business. Keep the website updated with the latest news and happenings. Along with it, keep some interviews with your clients.
d) Digital Ad & Social Media
Use digital media for advertising and publicity of your adoption agency business. Social media is also a powerful medium. Create pages in the name of your adoption agency business on the social media handles. Share your website link on the pages. Keep the pages updated regularly.
e) Referrals & Word of the Mouth Publicity
Try to get referrals from your satisfied clients. Word of the mouth publicity can also be good for your adoption agency business.
f) Promotional Programs
Take part in various promotional programs in the name of your adoption agency business. Examples of such programs are health camps, community sports, children’s welfare camps, etc. This will help in building your presence and publicity.
Frequently Asked Questions
Is Adoption Agency Business Profitable?
The adoption agency business has many legal formalities and other rules. However, if you decide to start the business, it will give you high profits. According to the data available from different adoption agencies and news media, a family has to pay between $50,000 and $ 70,000 for adoption. This includes various medical, legal, and other expenses. The figure shows that you can earn a good profit after all the expenses.
According to IBISWorld, the market size of the adoption and child welfare industry in the United States amounts to $20.7billion. Not only that, it is growing for the last 5 years.
According to Statista, about407,493 children in the United States were living in foster care in 2020 and 117,470 children were waiting to be adopted.
What is the Cost of Starting an Adoption Agency Business?
The cost and investment of launching an adoption agency enterprise will depend largely on the scale of your operation. However, to start a full-fledged adoption agency you will need at least $2,00,000 to $250,000. This includes fixed and variable costs.
These figures show that your adoption agency business has good prospects too. Hence, you can find that the adoption agency business can give you a steady income.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.