How to Start and Run Nanny Agency Successfully

How to Start and Run Nanny Agency Successfully

Many families searching for the best nanny to care for their kids seek assistance from referral agencies. These firms have sufficient resources and time to do rigorous background checks.
While numerous nanny agencies are available, some families still struggle to find the right options that meet their standards and needs. As a result, some people may want to start their own nanny agency and customize it to fill the existing gap in the market. Running a referral agency for nurses can be hard work, but this article will take you through the basics.

What is a Nanny Agency?

What is a Nanny Agency
A nanny referral agency is a firm that helps families find the ideal childcare services provider or nanny that meets their specific needs. A nanny business executes the task of finding an individual, conducting interviews, calling and evaluating the job and personal preferences, and doing due diligence. Nanny agencies interview and enlist nannies depending on their work experience and qualifications. The interview process can be done through video call via WhatsApp or Skype or one-on-one.
When nanny agencies register potential nannies on their websites, families can choose one that meets their specific needs. The agency will then focus on making the process as smooth as possible for the family and nanny. They will offer continuous support and answer questions as they arise. The agency will also offer the necessary advice regarding working policies and nanny contracts.

Features of the Ideal Nanny Agency

Various factors can set your nanny agency apart from your competitors. The ideal agency:

  • Finds prospective clients through different methods, including LinkedIn
  • Interview prospective candidates in person or through WhatsApp or Skype
  • Is available during the entire recruiting and transitioning process
  • Provides ongoing support all through the nanny placement process
  • Is available to offer advice and support if problems arise
  • Is approachable, professional, and offers excellent customer service
  • Can be contacted through various methods like email and telephone
  • Has critical information on childcare and other matters like tips for hiring the best nanny
  • It has a clear website that potential nannies and families can easily navigate to find crucial information

Why Should Families Work with Nanny Agencies?

  • Families can ensure that the required assessments have been executed, making the process safer.
  • The agency can help nannies and their employers develop long-lasting and cordial relationships.
  • Families get the support and advice whenever they need it from an agency that understands their needs
  • Employers have peace of mind knowing that the agency has completed most of the process of hiring a nanny
  • Through agencies, families and nannies can the ideal balance to reduce problems and misunderstandings
  • Agencies facilitate the development and maintenance of trust between nannies and employers to ensure that all the parties involved are protected

A good agency has properly laid out communication strategies and defines its services clearly. They also strive to find the ideal nanny for your specific needs. They are readily available to offer support during and after the hiring process and are committed to ensuring the placement is successful.

How do I Start a Successful Nanny Agency?

How do I Start a Successful Nanny Agency
Are you considering starting a nanny staffing agency? Here are tips to steer your success.

Explore the Local Market

This type of business attracts a local audience. Ensure you are fully conversant with your local market, competitors, and target customers. Determine the number of nanny agencies within your locality, how they function, and their services. For example, some nanny agencies recruit full-time nannies with excellent housekeeping skills, clean thoroughly, and cook well. Others prefer candidates with experience working in a daycare facility.

Rates and Services

Before starting your nanny business, determine the minimum hourly rate for skilled caregivers in your state or city, based on the number of children they will be caring for. Nannies that double up as housekeeping assistants charge higher rates. Worth mentioning is that families pay all fees set based on the services they need. For instance, families looking to hire a live-in nanny will pay higher fees than their counterparts looking for a part-time nanny. Often, the fee is a flat-rate amount of a fixed percentage of the nanny’s earnings. Create a list of in-demand nanny referral services in your area to ensure you provide relevant training and provide fair compensation.

Evaluating and Interviewing Nannies

Nannies spend hours on end with the kids they care for. As a result, things they do or say could impact your child’s behavior. You must evaluate and interview potential nannies thoroughly to ensure they are a good fit. Here are things you should incorporate in the candidate evaluation and interview process:

  • A comprehensive job application
  • Reference and background checks
  • In-person interviews with candidates
  • Evidence of suitability to work in the US

Ensure you describe their roles, schedule, working conditions, and benefits during the interview process.

Develop a Business Plan

Develop a Business Plan
A well-thought-out business plan keeps you accountable, enabling you to reach your goals easily. It should include all facets of running a nanny agency, such as financial projections, research, and marketing. It’s here that you should think about your business name. While selecting the right name can be challenging, it is an important part of your planning process. If you run a sole proprietorship, you may operate the business under your name. Always research your business name by checking:

  • Social media platforms
  • Business records in your state
  • Web domain availability
  • State and federal trademark records

Determine your startup costs, lay down strategies you will use to make money, and figure out whether or not you will require financing. Usually, nanny agency owners collect a particular amount of money every time a nanny is placed in a family.
Your business plan should define your mission statement, services, business structure, and objectives. Determine potential opportunities and threats, incorporate them into your babysitting business plan, and develop a robust strategy.

Think About the Legal Element

When your nanny business starts operating, you need to register it with the state. Apply for an EIN (employer identification number) via the IRS website to enable you to open a business bank account, hire employees, and pay taxes.
Determine whether the business will be a limited liability company, sole proprietorship, or partnership. Licensing demands vary from one state to another. In some states, you will only need a Run Nanny Agency. Do you have a physical office? You may need to apply for signage and zoning permits. Here are the documents you might need during this process:

  • Employee handbook
  • Workers’ compensation insurance
  • Employee agreement
  • Nondisclosure agreement
  • Physical address
  • Privacy policy
  • General business insurance
  • Payment protection insurance

Professional certifications may not be mandatory, but they help your business stand out from competitors and also justifies your competency. Some organizations like the Nanny Academy and the International Nanny Association offer certifications and training for child care providers.

Set up Your Physical Office

While you can operate your business from home or purely online, having a physical office boosts your authenticity. Ensure your office is spacious enough to accommodate your employees and visitors. Place visible signage outside your office to attract potential customers.

Offer Training

The success of your nanny referral agency depends on the quality of your workforce. Before placing the nannies, consider providing proper training. An orientation program goes a long way in helping newbies become professional company employees.

Hire Workforce

Hire Workforce
Hiring employees is critical to operating a business. Check their expertise, background, skill, and experience. Google their name and check their social media accounts, and consider collaborating with companies that offer background evaluation services for comprehensive details about them. If you are working with candidates from a foreign country, check their visa and work permit. Choose nannies with safety, CPR, and early childhood education training.

Have the Necessary Business Tools

Prepare the business tools you need. Start by creating a contract paper with the terms and conditions of the agency. Adopt accounting software to facilitate day-to-day tax calculations and basic operations. Create a fee structure for various services and develop a system to determine the best nanny for a specific client. Ensure your system is easy to navigate from the inquiry to the bill submission and payment stage.

Advertise Your Nanny Placement Agency

Word of mouth is one of the best strategies to market your nanny services. Build a relationship with your community and partner with kindergartens and schools. Approach local publications and sponsor or plan kid-friendly events like sports competitions.
Use your blog or website as a marketing tool to explain your services and what makes you stand out. Set up a referral program and encourage your existing customers to recommend your firm to their friends.
Consider using loyalty schemes, TV advertising, and direct marketing to attract and retain customers. Take advantage of social media platforms to broaden your reach and get your business out there. Print business cards and place them on announcement boards in toy and grocery stores.

How to Run Nanny Agency Successfully?

· Know Your Business Extensively

Being conversant with your business and your industry, in general, are critical for success. Here are things you should know.

  • The services you are offering
  • How your clients will benefit from using your services versus available alternatives
  • Why potential customers should choose your services instead of your competitor’s

Your target audience and their personas and things about them make you prefer your services. Does your target market have common characteristics that increase their chances of buying from you? Remember, marketing is the secret to attracting clients and broadening your customer base. Focus on your target market and avoid wasting money on random approaches.
What strategies will you use to sell and promote your services to your target market? Is it through visiting your website, calling you directly, or responding to a free handbook? Your marketing attempts should focus on reaching prospective clients where they are. Position your referral agency in front of your target clients to boost your visibility in the market.

· Hire a professional Accountant to Assist with the Accounts

Hire a professional Accountant to Assist with the Accounts
Proper bookkeeping and being conversant with financial metrics can make or break your business. A qualified accountant who is experienced in working with small businesses can be ideal.
Every small business owner should understand how to read balance sheets and financial statements, ask questions, and compare their financial metrics and position with their peers. Failing to know, track, and regulate financial metrics is one of the core reasons many new nanny agencies collapse. You can find the ideal financial coach or accountant through networking.

· Work with Skilled Lawyers to Create Great Contracts

Agencies that attend annual INA conferences regularly say that comprehensive client contracts are critical to the smooth running of your nanny agency and customer satisfaction. Your nanny agency might have other legal requirements such as lease agreements, corporate documents, and partnership arrangements.
Connect with people in the local small business society and nanny industry to find the legal talent to help you solve contract-based disputes to focus on growing your sales and revenue.

· Network and be Informed

Attend annual nanny agency conferences, host nanny seminars, download nanny agency advertising guides, and network with local business owners, especially those that market to your target audience.
Stay updated with everything happening in the nanny industry and understand national and local childcare matters and small business concerns. The competitive background is evolving fast, and you should be conversant with these changes to maximize your earnings and double your profits.

· Develop an Exit Plan and Plan for Your Retirement

Remember, the business world evolves fast. Your agency could be thriving now, but things could change in the future, and you may want to sell your business or transfer its daily decision-making to someone else and retire. Research and understand transitions in business and create a retirement plan. While many small business owners hardly plan for their financial future and exit, it is critical to consider.

· Create a Babysitting Blog or Website

You don’t have to be an IT guru to create your babysitting website today. Various platforms can help you develop a website by dragging, dropping, and filling basic data to develop an attractive website.
Furnish your website with all the information you put in different advertisement methods. Include specific details like your city and services. While your website will benefit people from different parts of the world, it will be highly beneficial to families within your local area. Make sure it’s visible to them.
Increase your local visibility online by including targeted keywords relating to local babysitters in your content. Working with targeted keywords allows families within the local area to find you when they search for similar services on Bing or Google. Popularizing your babysitting blog allows you to earn money from various online services such as adverts running on the site.


Starting and running a successful agency requires lots of commitment and hard work. However, the tips in this article should ease the process. You can make your agency user-friendly by adopting a suitable booking system. Do you need an all-inclusive calendar-based booking system?

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