Do you want to start a nanny agency business with small capital investment? Find here a detailed nanny service agency business plan checklist for your ready reference.
If you enjoy spending time with kids, then a nanny placement agency is a perfect venture for you. The most important thing is this you can start the business with small startup capital. Also, the business is suitable for women and men both. However, a nanny agency is a different business than a babysitting business.
First of all, we must understand what a nanny is. Simply, a nanny provides child care within the kid’s family establishment. And the primary responsibility of a nanny agency is to provide a proper nanny to the client with the specific need.
Though the business is comparatively easy to start, there are certain aspects that you must consider very carefully. Here in this article, we simply intend to mention 10 crucial steps you must follow in starting a nanny agency business.
Nanny Agency Business Market Potential
Both in the developed and developing countries the demand for this type of service is increasing. Day by day the parents are outsourcing more child-related duties. and definitely, it is creating ample opportunity for small businesses and entrepreneurs. Hence, the potential market for businesses in the parental outsourcing industry is huge.
Nanny and babysitting services account for roughly 29.1% of the market. Recently, the demand for nannies has increased as an alternative to using child care centers. You can find thousands of small operators in the industry. However, it is a golden opportunity for the entrepreneurs to build operations and gain market share in this multibillion-dollar sector.
How do Nanny Agencies Make Money?
Simply, it’s a service-based business. So, you will earn the fees from the parents in exchange for the service you are providing. Actually, you will need to source the manpower (nannies) and after trained them, you can engage them in kid’s houses. So, you must have the skilled manpower at the reasonable rate to earn the profit.
10 Steps to Start Nanny Agency Business
#1 Step – Market Survey
It is the most important step in starting this business. First of all, you must conduct a market survey in the locality where you want to open this business. You must identify your target demographics. Also, it is better to identify a niche segment for offering your services. So, try to gather as much information as you can. Simply, you must find out an opportunity that you can address properly.
#2 Step – Nanny Agency Business Plan
After deciding the target niche, you will need to craft the business plan. Actually, a business plan helps in arranging finance and in initiating the business with fewer mistakes. Include the financial calculation and a proper marketing plan. Also, include your business objective, vision and mission statement. Calculate the startup investment and how much you can charge for your service. Basically, a business plan is a roadmap for starting as such any business.
#3 Step – Registration & Nanny Business License
Business registration is the must. You can’t start and run a nanny agency business with proper business registration. However, the registration process varies depending on the location where you are starting this business. After getting the business registration, you will need to know about the necessary licenses. Also, get information about what insurance you need.
#4 Step – Name your Business
Select a catchy memorable name for your business. And check the domain availability also. Nowadays, you can’t operate a business without a web presence. To get some idea, you check Google. Moreover, select a name that defines your business properly. And never select a local name like Florida Nanny Service. You will face trouble in expanding your business even within the country.
#5 Step – Cost Calculation & Arrange Finance
This is another a very crucial step in starting this business. Generally, some of the startup investment includes establishing an office, procuring computers, phones, printers, business tools, marketing expenses etc. Starting a nanny agency business demands upfront capital investment. So, if you don’t have your own fund you will need to arrange the fund from other sources. And definitely, you can consider borrowing from the banks or financial institutions.
#6 Step – Setup the Office
Finally, you will need to establish the office. However, if you have sufficient space, you can consider operating the business from home also. In the office, you must have sufficient space for talking with the parents, and an area for human resources. Also, fix a signage on the outer wall of the office. If you are not starting the business from home, it is better to start from a commercial location with car parking facility.
#7 Step – Hire Manpower
This is the most crucial part of operating the business. In hiring the manpower will need to check their skill, expertise, experience, and background. Google the name of the employee and find the social media accounts of them. There you can get some basic knowledge about their past. Also, there are several companies who provide background checking service. If you engage employees of foreign countries then definitely check the visa. Try to select the candidates who have some early childhood education and have CPR and other safety training.
#8 Step – Provide Training
Broadly, the success of a nanny agency depends on the quality of the employees in long run. So, before placing your employees you must provide proper training. Also, a proper orientation program help the freshers to become a pro company employee.
#9 Step – Prepare Business Tools
You must prepare some necessary business tools. First of all, create the contract paper with all terms and conditions. Consider having an accounting software for daily basis operation and tax calculations. Create the fees structure for specific services. Also, devise a system to find out the best nanny for a particular client. Also, you must have a proper system from getting an inquiry to finally submit the bill for getting the payments.
#10 Step Promote your Business
In this type niche business, promotion is the must. Put all the necessary information including contact details, services in your website. Also, you can consider using social media for promoting your nanny agency business. Register the company with GoogleMyBusiness. You can also arrange some events for kids for promoting the nanny agency business.