How to Start a Nanny Business

Co-authored by Madison Boehm

Last Updated: January 1, 2023 Approved

If you have experience or interest in childcare, think about learning how to start a nanny business. Nannies offer childcare services in the family's home, which is a popular alternative to daycare centers. For working mothers, finding a nanny is hard work, so your nanny agency will provide the valuable service of screening, interviewing, and finding the perfect nanny.

Steps

1
Get a list of prospective nannies. Advertise in newspapers, online ads, put signs up, and give flyers. If you have experience in child care, solicit coworkers and contacts to see if they are interested in providing nanny service or if they know others who would. Also keep in mind if someone does not want a flyer they are not interested so don't bug them they might spread the word, ruining your business.
2
Do a thorough background check on each candidate. There are several online companies that can provide a professional background check that includes criminal history and residence information. You can do some investigative work yourself online too. Once you gather enough evidence to tell they are not a good service, you won't have to think about one more team. Many counties offer online sources to check property and criminal records for free.^{[1]
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Research source} Ask for personal records and check them. Google each candidate and look for social networking sites and general online information to see if anything raises a red flag. It's important to do thorough checks and reject a candidate who seems dishonest or criminal. The safety of the children under the nannies' care is ultimately your responsibility. Besides that, one bad experience can ruin your nanny agency's reputation. Make sure the applicants sign a form authorizing you to run background checks.

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3
Interview and get to know your nanny. Come up with a list of general interview questions that will give you some information about the applicant's work history and general personality. Make sure they have experience in childcare services and a general personality that is fun but firm for dealing with children. Find candidates who have some early childhood education and have CPR and other safety training. ^{[2]
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4
Call your county or municipality to find out what licenses you need. ^{[3]
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Research source} Apply for local and state licenses. Register your nanny agency with the Internal Revenue Service.
5
Get advice about how to start a nanny business from an attorney, small business advisors or accountants.^{[4]
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Research source} Find out whether you need to set up your company as a corporation. Get information about what insurance you need.
6
Decide how much to charge for your childcare services. Start by determining what wages your nannies demand, and work in a commission fee for yourself. Remember to account for your expenses like background checks and advertising. Offer discounts for full time service and other incentives.
7
Advertise your nanny service once you have a list of potential nannies. Use Craigslist, your local newspaper, and online forums that attract mothers of young children. Have business cards printed and hang them up on bulletin boards in grocery stores, toy stores and other facilities.
8
Create a website with information about your nanny agency. Talk about the childcare services you provide, give a general idea of the cost and stress that your nannies are screened and qualified. As your business grows, add statements from happy clients and nanny profiles.
- Many people may have taken up the same business.
- You may face competition on social media, or other online agencies might have a bigger budget.
- So you need to know how to differentiate yourself. Think how you can make your business different from your competitors.
9
Devise a system to find the best matches between nannies and clients. It's helpful to have all information about the nannies entered into a spreadsheet or database. When you get a call from a client, it will be easy to find a nanny with the best experience and schedule for the situation.

Community Q&A

Question

I want to open a nanny business? How do I begin?

Kalea Epitime

Community Answer

Start by determining what wages your nannies demand, and work in a commission fee for yourself. Remember to account for your expenses like background checks and advertising. Offer discounts for full time service and other incentives. Advertise your nanny service once you have a list of potential nannies.
Question

What's a typical commission fee? For instance, if the nanny is making $20/hr, how much return should I work into that?

Tom De Backer

Top Answerer

Approach this from the other side. How much do you want and need to earn each month, both you personally and your business? Determine how many hours can be worked each month, be realistic. Then divide the amount of money by the number of hours. This will give you a sense of what each hour worked should be bringing in.
Question

How much should I pay the nannies?

Community Answer

$15-25 an hour is ideal, especially if the nanny is experienced - and you may want to pay on the higher end for a larger number of children or jobs that are a little more intensive (e.g., special needs). If the person is just starting out, you could offer $10 an hour to begin with and gradually increase the wage if she does well.